Document:

Exhibit 10.1

 

THIRD AMENDMENT TO

CREDIT AGREEMENT

 

THIS THIRD AMENDMENT
TO CREDIT AGREEMENT (hereinafter called this “Amendment”) is dated as of May 18, 2016, by and among
RING ENERGY INC., a Nevada corporation (the “Borrower”), each of the Lenders (defined below) which is
signatory hereto, and SUNTRUST BANK, as Administrative Agent for the Lenders (in such capacity, together with its successors in
such capacity “Administrative Agent”) and as Issuing Bank under the Credit Agreement referred to below.

 

W I T N
E S S E T H:

 

WHEREAS, the Borrower,
Administrative Agent and the lenders from time to time party thereto (the “Lenders”) are parties to
that certain Credit Agreement dated as of July 1, 2014, as amended by that certain First Amendment to Credit Agreement, dated
as of June 26, 2015 and that certain Second Amendment to Credit Agreement dated as of July 24, 2015 (as amended by this Amendment
and as further amended, modified or restated from time to time, the “Credit Agreement”), whereby upon
the terms and conditions therein stated the Lenders have agreed to make certain loans to the Borrower upon the terms and conditions
set forth therein;

 

WHEREAS, the Borrower
has requested that the Required Lenders amend the Credit Agreement as set forth below; and

 

WHEREAS, subject to
the terms and conditions hereof, the Required Lenders are willing to agree to the amendments to the Credit Agreement as set forth
herein.

 

NOW, THEREFORE, for
and in consideration of the mutual covenants and agreements herein contained, the parties to this Amendment hereby agree as follows:

 

SECTION
1.Definitions. Unless otherwise defined in this Amendment, each capitalized term used herein but
not otherwise defined herein has the meaning given such term in the Credit Agreement. The interpretive provisions set forth in
Sections 1.2, 1.3 and 1.4 of the Credit Agreement shall apply to this Amendment.

 

SECTION
2.Amendments to Credit Agreement. Effective on the Amendment Effective
Date, the Credit Agreement is hereby amended as follows:

 

(a)Section
1.1 (Definitions) is amended by adding the following new definitions in proper alphabetical order:

 

“Bail-In
Action” means the exercise of any Write-Down and Conversion Powers by the applicable EEA Resolution Authority in respect
of any liability of an EEA Financial Institution.

 

“Bail-In
Legislation” means, with respect to any EEA Member Country implementing Article 55 of Directive 2014/59/EU of the European
Parliament and of the Council of the European Union, the implementing law for such EEA Member Country from time to time which
is described in the EU Bail-In Legislation Schedule.

 

“EEA
Financial Institution” means (a) any institution established in any EEA Member Country which is subject to the supervision
of an EEA Resolution Authority, (b) any entity established in an EEA Member Country which is a parent of an institution described
in clause (a) of this definition, or (c) any institution established in an EEA Member Country which is a subsidiary of an institution
described in clauses (a) or (b) of this definition and is subject to consolidated supervision with its parent.

 

     

     

    

 

“EEA
Member Country” means any of the member states of the European Union, Iceland, Liechtenstein, and Norway.

 

“EEA
Resolution Authority” means any public administrative authority or any Person entrusted with public administrative authority
of any EEA Member Country (including any delegee) having responsibility for the resolution of any EEA Financial Institution.

 

“EU
Bail-In Legislation Schedule” means the EU Bail-In Legislation Schedule published by the Loan Market Association (or
any successor Person), as in effect from time to time.

 

“Write-Down
and Conversion Powers” means, with respect to any EEA Resolution Authority, the write-down and conversion powers of
such EEA Resolution Authority from time to time under the Bail-In Legislation for the applicable EEA Member Country, which write-down
and conversion powers are described in the EU Bail-In Legislation Schedule.

 

(b)The
definition of “Defaulting Lender” in Section 1.1 (Definitions) is amended by adding the following after
“Debtor Relief Law”: “or a Bail-In Action”.

 

(c)Article
X of the Credit Agreement is amended by adding the following as a new Section 10.16:

 

“Section
10.16 Acknowledgement and Consent to Bail-In of EEA Financial Institutions. Notwithstanding anything to the contrary
in any Loan Document or in any other agreement, arrangement or understanding among any such parties, each party hereto acknowledges
that any liability of any EEA Financial Institution arising under any Loan Document may be subject to the write-down and conversion
powers of an EEA Resolution Authority and agrees and consents to, and acknowledges and agrees to be bound by:

 

(i)the
application of any Write-Down and Conversion Powers by an EEA Resolution Authority to any such liabilities arising hereunder which
may be payable to it by any party hereto that is an EEA Financial Institution; and

 

(ii)the
effects of any Bail-In Action on any such liability, including, if applicable:

 

(A)a
reduction in full or in part or cancellation of any such liability;

 

(B)a
conversion of all, or a portion of, such liability into shares or other instruments of ownership in such EEA Financial Institution,
its parent entity, or a bridge institution that may be issued to it or otherwise conferred on it, and that such shares or other
instruments of ownership will be accepted by it in lieu of any rights with respect to any such liability under this Agreement
or any other Loan Document; or

 

(C)the
variation of the terms of such liability in connection with the exercise of the write-down and conversion powers of any EEA Resolution
Authority.”

 

SECTION
3.Borrowing Base.
Effective on the Amendment Effective Date, the Borrowing Base is decreased to $60,000,000. The Borrowing Base redetermination
provided for by this Amendment is the Scheduled Redetermination for May 1, 2016.

 

    	 	2	 

     

    

 

SECTION
4.Conditions of Effectiveness. 

 

(a)This
Amendment shall become effective as of the date (the “Amendment Effective Date”) that each of the following
conditions precedent shall have been satisfied:

 

(1)The
Administrative Agent shall have received (which may be by electronic transmission), in form and substance satisfactory to the
Administrative Agent, a counterpart of this Amendment which shall have been executed by the Administrative Agent, the Issuing
Bank, the Required Lenders and the Borrower (which may be by PDF transmission);

 

(2)Each
of the representations and warranties set forth in Section 5 of this Amendment shall be true and correct;

 

(3)Since
December 31, 2015, there has been no event or condition that has had or could reasonably be expected to have a Material Adverse
Effect; and

 

(4)Borrower
shall have paid all fees and expenses due to the Lenders and the Administrative Agent (including, but not limited to, reasonable
attorneys’ fees of counsel to the Administrative Agent).

 

(b)Without
limiting the generality of the provisions of Sections 3.1 and 3.2 of the Credit Agreement, for purposes of determining
compliance with the conditions specified in Section 3(a), each Lender that has signed this Amendment (and its permitted
successors and assigns) shall be deemed to have consented to, approved or accepted, or to be satisfied with, each document or
other matter required hereunder to be consented to or approved by or acceptable or satisfactory to a Lender unless the Administrative
Agent shall have received written notice from such Lender prior to the proposed Amendment Effective Date specifying its objection
thereto.

 

(c)The
Administrative Agent shall notify the Borrower and the Lenders of the Amendment Effective Date.

 

SECTION
5.Representations and Warranties. The Borrower represents and warrants
to Administrative Agent and the Lenders, with full knowledge that such Persons are relying on the following representations and
warranties in executing this Amendment, as follows:

 

(a)It
has the organizational power and authority to execute, deliver and perform this Amendment, and all organizational action on the
part of it requisite for the due execution, delivery and performance of this Amendment has been duly and effectively taken.

 

(b)The
Credit Agreement, as amended by this Amendment, the Loan Documents and each and every other document executed and delivered to
the Administrative Agent and the Lenders in connection with this Amendment to which it is a party constitute the legal, valid
and binding obligations of the Borrower, enforceable against the Borrower in accordance with their respective terms except as
enforceability may be limited by applicable bankruptcy, insolvency, or similar laws affecting the enforcement of creditors’
rights generally or by equitable principles relating to enforceability.

 

(c)This
Amendment does not and will not violate any provisions of any of the articles or certificate of incorporation, bylaws, and other
organizational and governing documents of the Borrower.

 

    	 	3	 

     

    

 

(d)No
approval, consent, exemption, authorization, or other action by, or notice to, or filing with, any Governmental Authority is necessary
or required in connection with the execution, delivery or performance by, or enforcement against, the Borrower of this Amendment.

 

(e)Before
and after giving effect to this Amendment, the representations and warranties of the Borrower contained in Article IV of
the Credit Agreement or in any other Loan Document are true and correct in all material respects (other than those representations
and warranties that are expressly qualified by a Material Adverse Effect or other materiality, in which case such representations
and warranties shall be true and correct in all respects).

 

(f)Before
and after giving effect to this Amendment, no Default, Event of Default or Borrowing Base Deficiency exists.

 

(g)Since
December 31, 2015, there has been no event or circumstance which has had or could reasonably be expected to have a Material Adverse
Effect.

 

(h)As
of the Amendment Effective Date, notwithstanding any provision in any Collateral Document to the contrary, no Building (as defined
in the applicable Flood Insurance Regulation) or Manufactured (Mobile) Home (as defined in the applicable Flood Insurance Regulation)
included in the definition of “Mortgaged Property” or “collateral” or similar definition in any Collateral
Document and no Building or Manufactured (Mobile) Home is encumbered by any Collateral Document. As used in this paragraph, “Building”
means any Building or Manufactured (Mobile) Home, in each case as defined in the applicable Flood Insurance Regulations); and
“Flood Insurance Regulations” means (I) the National Flood Insurance Act of 1968 as now or hereafter in effect or
any successor statute thereto, (II) the Flood Disaster Protection Act of 1973 as now or hereafter in effect or any successor statute
thereto, (III) the National Flood Insurance Reform Act of 1994 (amending 42 USC § 4001, et seq.), as the same may be amended
or recodified from time to time, and (IV) the Flood Insurance Reform Act of 2004 and any regulations promulgated thereunder.

 

SECTION
6.Miscellaneous.

 

(a)Reference
to the Credit Agreement. Upon the effectiveness hereof, on and after the date hereof, each reference in the Credit Agreement
to “this Agreement,” “hereunder,” “hereof,” “herein,” or words of like import,
shall mean and be a reference to the Credit Agreement as amended hereby.

 

(b)Effect
on the Credit Agreement; Ratification. Except as specifically amended by this Amendment, the Credit Agreement shall remain
in full force and effect and is hereby ratified and confirmed. By its acceptance hereof, the Borrower hereby ratifies and confirms
each Loan Document to which it is a party in all respects, after giving effect to the amendments set forth herein.

 

(c)Extent
of Amendments. Except as otherwise expressly provided herein, the Credit Agreement and the other Loan Documents are not
amended, modified or affected by this Amendment. The Borrower hereby ratifies and confirms that (i) except as expressly amended
hereby, all of the terms, conditions, covenants, representations, warranties and all other provisions of the Credit Agreement
remain in full force and effect, (ii) each of the other Loan Documents are and remain in full force and effect in accordance with
their respective terms, and (iii) the Collateral and the Liens on the Collateral securing the Obligations are unimpaired by this
Amendment and remain in full force and effect.

 

(d)Loan
Documents. The Loan Documents, as such may be amended in accordance herewith, are and remain legal, valid and binding
obligations of the parties thereto, enforceable in accordance with their respective terms. This Amendment is a Loan Document.

 

    	 	4	 

     

    

 

 

(e)Claims.
As additional consideration to the execution, delivery, and performance of this Amendment by the parties hereto and to induce
Administrative Agent and Lenders to enter into this Amendment, the Borrower represents and warrants that, as of the date hereof,
it does not know of any defenses, counterclaims or rights of setoff to the payment of any Obligations of the Borrower to Administrative
Agent, Issuing Bank or any Lender.

 

(f)Execution
and Counterparts. This Amendment may be executed in any number of counterparts and by different parties hereto in separate
counterparts, each of which when so executed and delivered shall be deemed to be an original and all of which taken together shall
constitute but one and the same instrument. Delivery of an executed counterpart of this Amendment by facsimile or pdf shall be
equally as effective as delivery of a manually executed counterpart.

 

(g)Governing
Law. This Amendment and any claims, controversy, dispute or cause of action (whether in contract or tort or otherwise)
based upon, arising out of or relating to this Amendment and the transactions contemplated hereby and thereby shall be construed
in accordance with and be governed by the law (without giving effect to the conflict of law principles thereof) of the State of
Texas.

 

(h)Headings.
Section headings in this Amendment are included herein for convenience and reference only and shall not constitute a part of this
Amendment for any other purpose.

 

SECTION
7.NO ORAL AGREEMENTS. THE RIGHTS AND OBLIGATIONS OF EACH OF THE PARTIES
TO THE LOAN DOCUMENTS SHALL BE DETERMINED SOLELY FROM WRITTEN AGREEMENTS, DOCUMENTS, AND INSTRUMENTS, AND ANY PRIOR ORAL AGREEMENTS
BETWEEN SUCH PARTIES ARE SUPERSEDED BY AND MERGED INTO SUCH WRITINGS. THIS AMENDMENT AND THE OTHER WRITTEN LOAN DOCUMENTS EXECUTED
BY THE BORROWER, ADMINISTRATIVE AGENT, ISSUING BANK AND/OR LENDERS REPRESENT THE FINAL AGREEMENT BETWEEN SUCH PARTIES, AND MAY
NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS BY SUCH PARTIES. THERE ARE NO UNWRITTEN
ORAL AGREEMENTS BETWEEN SUCH PARTIES.

 

SECTION
8.No Waiver. The Borrower hereby agrees that no Event of Default and
no Default has been waived or remedied by the execution of this Amendment by the Administrative Agent or any Lender. Nothing contained
in this Amendment nor any past indulgence by the Administrative Agent, Issuing Bank or any Lender, nor any other action or inaction
on behalf of the Administrative Agent, Issuing Bank or any Lender, (i) shall constitute or be deemed to constitute a waiver of
any Defaults or Events of Default which may exist under the Credit Agreement or the other Loan Documents, or (ii) shall constitute
or be deemed to constitute an election of remedies by the Administrative Agent, Issuing Bank or any Lender, or a waiver of any
of the rights or remedies of the Administrative Agent, Issuing Bank or any Lender provided in the Credit Agreement, the other
Loan Documents, or otherwise afforded at law or in equity.

 

Signatures Pages Follow

 

 

    	 	5	 

     

    

 

IN WITNESS WHEREOF,
the parties hereto have caused this Amendment to be duly executed and delivered by their proper and duly authorized officers as
of the day and year first above written.

 

 

	 	RING ENERGY INC.,
	 	as Borrower
	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:
	 	 	 

 

 

 

 

 

 

 

 

 

Signature Page to Third Amendment to Credit
Agreement

Ring Energy, Inc.

 

    	 

     

    

 

	 	SUNTRUST BANK,
	 	as Administrative Agent, as Issuing Bank and as a Lender
	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:
	 	 	 

 

 

 

 

 

 

 

 

 

Signature Page to Third Amendment to Credit
Agreement

Ring Energy, Inc.

 

    	 

     

    

 

	 	[LENDER],
	 	as a Lender
	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:
	 	 	 

 

 

 

 

 

 

 

 

 

Signature Page to Third Amendment to Credit
Agreement

Ring Energy, Inc.Exhibit 10.1

 

 

 

May 18, 2016

 

STRICTLY CONFIDENTIAL

 

Biostage, Inc.

84 October Hill Road

Suite 11

Holliston, MA 01746

Attn: James McGorry, President and Chief
Executive Officer

 

Dear Mr. McGorry:

 

 

Reference is made to
the Investment Banking Agreement, dated May 15, 2016 (the “Investment Banking Agreement”), by and between Biostage,
Inc. (the “Company”) and Rodman & Renshaw, a unit of H.C. Wainwright & Co., LLC (“Rodman”)
pursuant to which Rodman shall serve as the exclusive agent for the Company in connection with the offering of Securities in an
Offering. Terms used herein but not defined herein shall have the meanings ascribed to such terms in the Investment Banking Agreement.

 

The Company and Rodman
hereby agree to amend Section A, Paragraph 1 of the Investment Banking Agreement to clarify the provision. As such, Section A,
Paragraph of the Investment Banking Agreement is amended and restated as follows:

 

“Cash Fee. The Company shall pay to Rodman
a cash fee, or as to an underwritten Offering an underwriter discount, equal to 7% of the aggregate gross proceeds raised in each
Offering.”

 

Except as expressly
set forth above, all of the terms and conditions of the Investment Banking Agreement shall continue in full force and effect after
the execution of this agreement and shall not be in any way changed, modified or superseded by the terms set forth herein.

 

This agreement may
be executed in two or more counterparts and by facsimile or “.pdf” signature or otherwise, and each of such counterparts
shall be deemed an original and all of such counterparts together shall constitute one and the same agreement.

 

 

 

 

430 Park Avenue | New York, New York 10022
| 212.356.0500

Security services provided by H.C. Wainwright
& Co., LLC | Member: FINRA/SIPC

 

     

     

    

  

	 	Very truly yours,
	 	 	 
	 	RODMAN & RENSHAW, A UNIT OF H.C. WAINWRIGHT & CO., LLC
	 	 	 
	 	 	 
	 	By	/s/ Mark W. Viklund
	 	Name: 	Mark W. Viklund
	 	Title: 	Chief Executive Officer

 

 

Accepted and Agreed:

 

biostage,
inc. 

 

	By 	/s/ Thomas McNaughtan	 
	 	Name:	Thomas McNaughtan	 
	 	Title: 	Chief Financial Officer

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