Document:

ex10_2.htm

 Exhibit 10.2 

 

 

 CONSULTING AGREEMENT 

 

 This Consulting Agreement (this "Agreement") is made and entered into as of February 1, 2010, by and between Respect Your Universe, Inc., a Nevada Corporation (hereinafter referred to as the "Company") and Exit 21 Global Solutions LLC, dba Exit 21 Apparel Solutions, an Oregon limited liability company (hereinafter referred to as the "Consultant") (collectively, the "Parties"). 

 

 

 RECITALS 

 

 WHEREAS, Consultant has certain experience in the design, development, merchandising, sourcing and production of clothing lines; and 

 

 WHEREAS, the Company desires to engage the services of the Consultant to assist the Company in the development of a clothing line for the Company. 

 

 NOW, THEREFORE, in consideration of the mutual promises herein contained, the Parties hereto hereby agree as follows: 

 

 1.             CONSULTING SERVICES 

 

 Attached hereto as Exhibit A and incorporated herein by this reference is a description of the: services to be provided by the Consultant hereunder (the "Consulting Services"). Consultant will provide the Consulting Services in a professional and workmanlike manner to the best of its abilities. Consultant makes no other warranty to the Company, and specifically disclaims any warranty of merchantability or fitness for a particular purpose with respect to any products designed by Consultant hereunder. 

 

 2.             TERM OF AGREEMENT 

 

 This Agreement shall be in full force and effect commencing upon the date hereof (the "Effective Date"). This Agreement has a term of six months (one season) beginning, on the Effective Date. This Agreement may be renewed for a succeeding term of six months (one season) upon mutual written agreement of the Parties. Either party hereto shall have the right to terminate this Agreement without notice in the event of the bankruptcy, insolvency, or assignment for the benefit of creditors of the other party. Consultant shall have the right to terminate this Agreement if Company fails to comply with the terms of this Agreement, including without limitation the Company's responsibilities for Compensation as set forth in this Agreement and Exhibit B., and, such failure continues unremedied for a period of 10 days after written notice to the Company by Consultant. The Company shall have the right to terminate this Agreement upon delivery to Consultant of notice setting forth with specificity facts comprising a material breach of this Agreement by Consultant. Consultant shall have I5 days to remedy such breach. 

 

 3.             TIME DEVOTED BY CONSULTANT 

 

 It is anticipated that the Consultant shall spend as much time as deemed necessary by the Consultant in order to perform the obligations of Consultant hereunder- The Company understands that this amount of time may vary and that the Consultant may perform Consulting Services for other companies. 

 

 4.             PLACE ARE SERVICES WILLIE PERFORMED 

 

 The Consultant will perform most services in accordance with this Agreement at Consultant's offices. In addition, the Consultant will perform services at such other place(s) as. necessary to, perform these services in accordance with this Agreement. 

 

 5.              COMPENSATION TO CONSULTANT 

 

 The Consultant's compensation for the Consulting Services shall be as set forth in. Exhibit B. attached hereto and incorporated herein by this reference. 

 

 6.             INDEPENDENT CONTRACTOR 

 

 Both Company and the Consultant agree that the Consultant will act as an independent contractor in the performance of its duties under this Agreement. Nothing contained in this Agreement shall be construed to imply that Consultant, or any employee, agent or other: authorized representative of Consultant, is a partner, joint venturer, agent, officer or employee of Company- Ail of the designs conceived by Consultant and accepted by the Company in connection. with the Consulting Services shall be the sole and exclusive property of the Company. 

 

    

    

    

 

 7.             CONFIDENTIAL INFORMATION 

 

 The Consultant and the Company acknowledge that each will have access to proprietary information regarding the business operations of the other and agree to keep, all, such information, secret and confidential and not to use or disclose any such. information to any individual or organization without the non-disclosing Party's prior written consent It is hereby agreed that from time to time Consultant and the Company may designate certain disclosed information as confidential for purposes of this Agreement. 

 

 8              INDEMNIFICATION 

 

 The Consultant shall indemnify and hold the Company harmless from any and al liabilities and obligations arising from Consultant's conduct and activities in connection with the Consulting Services- The Company shall indemnify and hold Consultant harmless from any and all liabilities and obligations arising from conduct and activities of the Company, including (i) any allegation of infringement or violation of any third-party intellectual property rights and (ii) any product liability claim in connection with any products designed hereunder. 

 

 The indemnity obligations of the Parties under this paragraph 8 shall be binding upon and inure to the benefit of any successors, assigns, heirs, and personal representatives of the Company, the. Consultant and any other such persons or entities mentioned hereinabove. 

 

 9.             COVENANTS OF CONSULTANT 

 

 Consultant covenants and agrees with the Company that, in performing Consulting Services under this Agreement, Consultant will: 

 

 (a)            Comply with all federal and state laws;. and 

 

 (b)            Not make any representations on behalf of the Company other than those authorized by the Company. 

 

 10.           SUBCONTRACTORS AND MANUFACTURERS 

 

 (A) Subcontractors. Consultant may, from time to time, engage subcontractors or independent contractors to perform portions of the Consulting Services under the authority, and control of Consultant. 

 

 (B) Manufacturers. Consultant will identify certain manufacturers, factories, suppliers and facilities for the production of the Company's products, and will. manage such relationships on behalf of the Company as part of the Consulting Services hereunder. The Company will be solely responsible for the payment of any invoices, posting of any requires letters-of-credit, and any other financial aspects of the business relationship with such manufacturers, factories, suppliers and facilities. Consultant is responsible for delivery of prototypes, as set forth on Exhibit A. The Company is responsible for the cost of salesman samples, as well as the cost of production lines for the products designed hereunder. 

 

 11.           NONSOLICITATION 

 

 Beginning on the Effective Date, and continuing for a period of two years after the termination of this Agreement or other agreement between the Company and Consultant (the "Restricted Period"), the Company will not: 

 

	
        (a)  

	
 solicit any employee, independent contractor, or subcontractor of Consultant to become an employee or independent contractor of the Company or any other person; or

 

	
        (b)  

	
 solicit any supplier, manufacturer, service provider, customer, or other business relation of Consultant to become a business relation of the Company. For the avoidance of doubt, this section precludes the Company from entering into a direct business relationship with factories or other service providers that the Consultant has engaged in the course of providing the Consulting Services to the company. 

 

 Notwithstanding Section 12(A) below or the other provisions of this Agreement, the Company acknowledges that the remedies available at law for any breach of this Section 11 will, by their nature, be inadequate. Accordingly, Consultant may obtain injunctive or other equitable relief to restrain a breach or threatened breach of this Section 11 or to specifically enforce this Section 11, without proving that any monetary damages have been sustained. 

 

    

    

    

 

 12.            MISCELLANEOUS 

 

 (A)   Any controversy arising out of or relating to this Agreement or any modification or extension thereof, including any claim for damages and/or rescission shall be settled by arbitration in Orange County, California in accordance with the Commercial Arbitration Rules of the American Arbitration Association before a single arbitrator. The arbitrator sitting in any such controversy shall have no power to alter or modify any express provisions of this Agreement or to render any award which by its terms effects any such alteration, or modification subject to 12(G). This Section 12 shall survive the termination of this Agreement. 

 

 (B)    If either party to this Agreement brings an action on this Agreement, the prevailing, party shall be entitled to reasonable expenses therefore, including, but not limited to, attorneys’ fees and expenses and court costs. 

 

 (C)    This Agreement shall inure to the benefit of the Parties hereto, their administrators and successors in interest. This Agreement shall not be assignable by either party hereto without the prior written consent of the other. 

 

 (D)   This Agreement contains the entire understanding of the Parties and supersedes all prior agreements between them. 

 

 (E)   This Agreement shall be constructed and interpreted in accordance with and the governed by the laws of the State of California. 

 

 (F)   No supplement, modification or amendment of this Agreement shall be binding unless, executed in writing by the Parties. No waiver of any of the provisions of this Agreement shall be deemed, or shall constitute, a waiver of any other provision, whether or not similar, nor shall any waiver constitute a continuing waiver. No waiver shall be binding unless executed in. writing by the party making the waiver. 

 

 (G)   If any provision hereof is held to be illegal, invalid or unenforceable under present or future laws effective during the term hereof, such provision shall be fully severable. This Agreement shall be construed and enforced as if such illegal, invalid or unenforceable provision had never comprised apart hereof, and the remaining provisions hereof shall remain in full force and effect and shall not be affected by the illegal, invalid or unenforceable provision or by its severance herefrom. 

 

 IN WITNESS WHEREOF, the Parties hereto have placed their signatures hereon on the day and year first above written. 

 

 

	
 RESPECT YOUR UNIVERSE, INC.    

 

	    	
 EXIT 21 GLOBAL SOLUTIONS LLC, dba 

 EXIT 21 APPAREL SOLUTIONS 

 

	 /s/ Kristian Anderson 	
 

	    	 /s/ Erick Siffert 	 
	 By:  Kristian Anderson 	   	 By:  Erick Siffert 
	 Its:  Director 	   	 Its:  Member 

 

    

    

    

 

 EXHIBIT A 

 DESCRIPTION OF CONSULTING SERVICES 

 

 Consultant shall perform the following services pursuant to the terms of this Agreement: 

 

	
    

	
 (1)            General consulting services for the design, development, merchandising, sourcing and production of a 20-style clothing line, including but not limited to: 

	
    

	
 

	
    

	
 (a)           competitive market analysis, merchandising, and line planning; 

	
    

	
 

	
    

	
 (b)           product and component design, including color and fabric selection; 

 

	
    

	
 (c)           raw material selection and purchasing for prototypes, including the delivery of garment prototypes; 

 

	
    

	
 (d)           fit and approval of garment and accessory prototypes; and 

	
    

	
 

	
    

	
 (e)            production: responsible for delivery management and quality control of all apparel and accessories. 

 

 The above services will be further defined and delineated by the parties from time to time as, necessary. Consultant will not be responsible for any inventory (raw material or finished product) warehousing, sales, sales forecasting and planning. 

 

 

 

 

    

    

    

 

 EXHIBIT B 

 TERMS OF COMPENSATION 

 

 The Consultant's compensation hereunder shall be as follows: 

 

 1.        FEES. The fee for the Consulting Services by Consultant shall be $304,860 payable as follows: (1) $100,000 shall be payable to Consultant within five (5) days of the date of this Agreement; (2) $68,287 within forty-five (45) days of the date of this Agreement; (3) $68,287 on April 30, 2010; and (4) $68,286 on July 31, 2010. Additional fees shall be paid by the Company to Consultant in the event the Agreement is extended for an additional six month term as provided in Section 2 of this Agreement The additional fees shall be payable to Consultant on the same or similar payment schedule as set forth above for the initial term. Consultant shall also receive a signing payment of $10,000 upon execution of this Agreement. 

 

 For additional styles/silhouettes above the 20 specified in Exhibit A, the Company shall pay the Consultant an additional $5,350 for each style, except for t -shirt graphics, for which the Company shall pay Consultant an additional $1,500. Payment terms for such additional payments will be agreed upon at the time the Company and Consultant agree upon the undertaking of additional styles/silhouettes. 

 

 2.        EQUITY COMPENSATION. In addition to the Fees, the Company shall issue and deliver to Consultant a total of 500,000 shares of the Company's common stock (the "Shares"). The Company shall issue and deliver an additional 500,000 Shares to Consultant in the event this Agreement is extended for a second six month. The Shares shall be issued in the name of Consultant and delivered to Consultant at the end of each term of the Agreement, as applicable. The Shares will not be registered under the Securities Act of 1933, as amended, and will bear a restrictive legend regarding the trading or re-selling of the Shares. 

 

 3.        EXPENSES. Consultant shall be reimbursed for all out-of-pocket expenses upon submission of receipts or accounting to the Company, including, but not limited to, all travel expenses, research material and charges, computer charges, long-distance telephone charges, facsimile costs, copy charges, messenger services, mail expenses and such other Company related charges as may occur exclusively in relation to the Company's business as substantiated by documentation. Any expenditure above $100 will require oral or written pre-approval of the Company. 

 

 

	
 RESPECT YOUR UNIVERSE, INC.    

 

	    	
 EXIT 21 GLOBAL SOLUTIONS LLC, dba 

 EXIT 21 APPAREL SOLUTIONS 

 

	
 /s/ Kristian Anderson 

	    	    	
 /s/ Erick Siffert 

	    
	
 By:  Kristian Anderson 

	    	
 By:  Erick Siffert 

	
 Its:  Director 

	    	
 Its:  MemberEX-10.1

SEVENTH AMENDMENT TO CREDIT AGREEMENT

This Seventh Amendment and Agreement (“Agreement”) dated as of August 25, 2010
(“Effective Date”) is by and among Belden & Blake Corporation, an Ohio corporation (the
"Company”), the Lenders (as defined below), and BNP Paribas, as Administrative Agent (as
such term is defined below).

RECITALS

A. The Company, certain subsidiaries of the Company, as Guarantors, the lenders party thereto
from time to time (the “Lenders”), and BNP Paribas, as administrative agent for such
Lenders (together with its permitted successors in such capacity, the “Administrative
Agent”) are parties to the First Amended and Restated Credit and Guaranty Agreement dated as of
August 16, 2005, as amended by the First Amendment to Credit Agreement dated as of September 27,
2005, the Second Amendment and Waiver dated as of August 3, 2007, the Third Amendment and Waiver
dated as of March 24, 2008, the Fourth Amendment, Waiver and Agreement dated as of April 9, 2009,
the Fifth Amendment and Agreement dated as of September 25, 2009, and the Sixth Amendment to Credit
Agreement dated as of March 23, 2010 (as so amended and as the same may be amended or modified from
time to time, the “Credit Agreement”).

B. The Company, the Lenders and the Administrative Agent wish to, subject to the terms and
conditions of this Agreement, (1) extend the Revolving Commitment Termination Date (as defined in
the Credit Agreement), (2) extend the Hedge L/C Commitment Termination Date (as defined in the
Credit Agreement), (3) reduce the Borrowing Base (as defined in the Credit Agreement) by
$10,000,000 to $55,000,000, (4) in connection with a $10,000,000 optional prepayment of the
Revolving Loans to be made on the date hereof, make a corresponding $10,000,000 reduction in the
Revolving Commitments (as defined in the Credit Agreement) and (5) make certain other amendments to
the Credit Agreement.

THEREFORE, the Company, the Administrative Agent, and the Lenders hereby agree as follows:

Section 1. Defined Terms. As used in this Agreement, each of the terms
defined in the opening paragraph and the Recitals above shall have the meanings herein assigned.
Each term defined in the Credit Agreement and used herein without definition shall have the meaning
assigned to such term in the Credit Agreement, unless expressly provided to the contrary.

Section 2. Other Definitional Provisions. Article, Section, Schedule, and
Exhibit references are to Articles and Sections of and Schedules and Exhibits to this Agreement,
unless otherwise specified. All references to instruments, documents, contracts, and agreements
are references to such instruments, documents, contracts, and agreements as the same may be
amended, supplemented, and otherwise modified from time to time, unless otherwise specified. The
words “hereof”, “herein”, and “hereunder” and words of similar import when used in this Agreement
shall refer to this Agreement as a whole and not to any particular provision of this Agreement.
The term “including” means “including, without limitation,”. Paragraph headings have been inserted
in this Agreement as a matter of convenience for reference only and it is agreed that such
paragraph headings are not a part of this Agreement and shall not be used in the interpretation of
any provision of this Agreement.

Section 3. Amendments to the Credit Agreement.

(a) Section 1.01 of the Credit Agreement is hereby amended by adding the following
new defined term in alphabetical order:

"Capital C Subordinated Note” means that certain Subordinated Promissory Note dated
August 16, 2005 in the original principal amount of $94,000,000 made by the Company payable
to the order of Capital C Energy Operations, L.P.

"Seventh Amendment Effective Date” means the “Effective Date”, as such term is defined
in the Seventh Amendment to Credit Agreement dated as of August 25, 2010 by and among the
Borrower, the Lenders and the Administrative Agent, which amends this Agreement.

(b) Section 1.01 of the Credit Agreement is hereby further amended by replacing the
defined terms “Consolidated Cash Interest Expense”, “Hedge L/C Commitment Termination Date”,
“Interest Coverage Ratio” and “Revolving Commitment Termination Date” in their entirety with the
following corresponding terms:

"Consolidated Cash Interest Expense” means, for any period, Consolidated Interest
Expense for such period, excluding any amounts paid in kind under the Qualified Junior Debt,
and excluding any Restricted Junior Payments paid in kind and other payments, in each case,
permitted under the terms of Section 6.5(i) or Section 6.5(ii) hereof.

"Hedge L/C Commitment Termination Date” means the earliest to occur of (i) April 14,
2012, (ii) the date the Hedge L/C Commitments are permanently reduced to zero pursuant to
Section 2.13(b), and (iii) the date of the termination of the Hedge L/C Commitments pursuant
to Section 8.1.

"Interest Coverage Ratio” means the ratio as of the last day of any Fiscal Quarter of
(i) Consolidated EBITDAX for (a) the one-Fiscal Quarter ending on September 30, 2005, (b)
the two-Fiscal Quarter period ending December 31, 2005, (c) the three-Fiscal Quarter period
ending March 31, 2006, and (d) each four-Fiscal Quarter period ending thereafter to (ii)
Consolidated Cash Interest Expense for such period; provided that, for purposes of
the Interest Coverage Ratio for each of the four Fiscal Quarters ending on and after
September 30, 2010 to and including December 31, 2011, Consolidated Cash Interest Expense
for each such four-Fiscal Quarter period shall be calculated after giving pro forma effect
to the permitted redemption of the Senior Secured Notes that are made during such
four-Fiscal Quarter period assuming that such redemption had been made as of the first day
of such four-Fiscal Quarter period.

"Revolving Commitment Termination Date” means the earliest to occur of (i) April 14,
2012, (ii) the date the Revolving Commitments are permanently reduced to zero pursuant to
Section 2.13(b), and (iii) the date of the termination of the Revolving Commitments pursuant
to Section 8.1.

(c) Section 2.3 of the Credit Agreement is hereby amended by deleting clause (f)
therein in its entirety and replacing it with the following:

(f) Mandatory Reduction. (i) If the aggregate amount of cash paid by the
Company or any Guarantor with respect to repurchases, redemptions, prepayments or other
retirements of the Senior Secured Notes from and after the Seventh Amendment Effective Date
exceeds $20,000,000, then effective as of each date such excess amount is paid by the
Company or any Guarantor, the Borrowing Base shall automatically reduce in an amount equal
to such excess amount. (ii) In addition to the mandatory reductions provided in the
foregoing clause (i), if the Company makes cash distributions on account of any shares of
any class of stock of the Company from and after the Seventh Amendment Effective Date, then
effective as of each date such cash distribution is made, the Borrowing Base shall
automatically reduce in an amount equal to such cash distribution amount.

(d) Section 6.5 of the Credit Agreement is hereby deleted in its entirety and
replaced with the following:

6.5 Restricted Junior Payments. No Credit Party shall, nor shall it permit any
of its Restricted Subsidiaries or Affiliates through any manner or means or through
any other Person to (a) directly or indirectly, declare, order, pay, make or set
apart, or agree to declare, order, pay, make or set apart, any sum for any
Restricted Junior Payment, including but not limited to, principal payments on the
Senior Secured Indebtedness but excluding interest payments on any Senior Secured
Indebtedness or (b) otherwise make any optional or voluntary repurchase, redemption,
prepayment, repayment, defeasance or any other acquisition or retirement for value
(or the segregation of funds with respect to any of the foregoing in this clause
(b)) of the Senior Secured Indebtedness; provided that:

(i) the Company may make principal payments to Capital C Energy Operations,
L.P. in an amount not to exceed $5,000,000 to satisfy interest payments which
accrued under the Capital C Subordinated Note that were paid in kind (i.e. added to
the principal amount thereof);

(ii) from July 1, 2010 until December 31, 2010, Company may make cash interest
payments to Capital C Energy Operations, L.P. accruing under the Capital C
Subordinated Note so long as the aggregate Unused Revolving Commitment Amount is
greater than or equal to $10,000,000 both before and after giving effect to such
cash interest payments;

(iii) from the Seventh Amendment Effective Date until February 28, 2011,
Company may repurchase, redeem, prepay or otherwise retire all or any portion of the
outstanding Senior Secured Notes from time to time; provided, however, that (A) the
aggregate amount of cash paid by the Company or any Guarantor with respect to such
repurchases, redemptions, prepayments or other retirements of such Senior Secured
Notes shall not exceed $30,000,000, and (B) if such aggregate amount, at any time,
exceeds $20,000,000, the Borrowing Base is reduced as required under Section
2.3(f)(i); and

(iv) from the Seventh Amendment Effective Date until the Revolving Commitment
Termination Date, Company may make cash distributions on account of any shares of
any class of stock of the Company so long as (A) the aggregate Unused Revolving
Commitment Amount is greater than or equal to $10,000,000 before giving effect to
such cash distribution, (B) the aggregate amount of such cash distributions does not
exceed $4,000,000, and (C) the Borrowing Base is reduced as required under Section
2.3(f)(ii).

Section 4. Borrowing Base Decrease; Revolving Commitment Decrease. Subject
to the terms of this Agreement, the parties hereto agree that, as of the Effective Date, the
Borrowing Base is hereby reduced by $10,000,000 to $55,000,000 and such Borrowing Base shall remain
in effect at such amount until the Borrowing Base is redetermined or reduced in accordance with the
Credit Agreement, as amended hereby. The parties hereto acknowledge and agree that the Borrowing
Base redetermination set forth in this Section 4 shall be and be deemed to be the semi-annual
redetermination scheduled to occur in fall, 2010 as provided for in Section 2.3(b)(ii) of the
Credit Agreement. Effective upon the optional prepayment of the Revolving Loans in an amount equal
to $10,000,000 made by the Borrower on the date hereof, the Revolving Commitments are
correspondingly reduced pro rata by $10,000,000 and shall remain in effect as so reduced until such
Revolving Commitments are further reduced or terminated in accordance with the terms of the Credit
Agreement, as amended hereby.

Section 5. Company Representations and Warranties. The Company represents
and warrants that, after giving effect to this Agreement: (a) the representations and warranties
contained in the Credit Agreement and the representations and warranties contained in the other
Credit Documents, are true and correct in all material respects on and as of the Effective Date as
if made on as and as of such date except to the extent that any such representation or warranty
expressly relates solely to an earlier date, in which case such representation or warranty is true
and correct in all material respects as of such earlier date; (b) after giving effect to this
Agreement, no Default has occurred and is continuing; (c) the execution, delivery and performance
of this Agreement are within the corporate power and authority of the Company and have been duly
authorized by appropriate corporate and governing action and proceedings; (d) this Agreement
constitutes the legal, valid, and binding obligation of the Company enforceable in accordance with
its terms, except as limited by applicable bankruptcy, insolvency, reorganization, moratorium, or
similar laws affecting the rights of creditors generally and general principles of equity; (e)
there are no governmental or other third party consents, licenses and approvals required in
connection with the execution, delivery, performance, validity and enforceability of this
Agreement; and (f) the Liens under the Security Instruments are valid and subsisting and secure
Company’s obligations under the Credit Documents.

Section 6. Conditions to Effectiveness. This Agreement shall become
effective on the Effective Date and enforceable against the Company, the Administrative Agent, and
the Lenders upon the occurrence of the following conditions precedent:

(a) The Administrative Agent shall have received multiple original counterparts, as requested
by the Administrative Agent, of this Agreement duly and validly executed and delivered by duly
authorized officers of the Company, the Administrative Agent and all the Lenders.

(b) The Administrative Agent shall have received a certificate, dated as of the Effective
Date, duly executed and delivered by the Company’s officer as to (A) updated officers’ incumbency
since those delivered at the Closing Date, (B) the effectiveness of, and no change in, the
resolutions passed on or prior to, and in effect on, the Closing Date, (C) no change in
organizational documents since the Closing Date, and (D) governmental approvals, if any, with
respect to this Agreement.

(c) The Administrative Agent shall have received certificates of existence and good standing
for the Company in each state in which the Company is organized, which certificate shall be dated a
date not sooner than 30 days prior to the Effective Date.

(d) No Default shall have occurred and be continuing as of the Effective Date.

(e) The representations and warranties in this Agreement shall be true and correct in all
material respects.

(f) The Company shall have paid all costs and expenses which have been invoiced and are
payable pursuant to Section 10.2 of the Credit Agreement.

Section 7. Acknowledgments and Agreements.

(a) The Company acknowledges that on the date hereof all Obligations are payable without
defense, offset, counterclaim or recoupment.

(b) The Administrative Agent and the Lenders hereby expressly reserve all of their rights,
remedies, and claims under the Credit Documents. Nothing in this Agreement shall constitute a
waiver or relinquishment of (i) any Default or Event of Default under any of the Credit Documents,
(ii) any of the agreements, terms or conditions contained in any of the Credit Documents, (iii) any
rights or remedies of the Administrative Agent or any Lender with respect to the Credit Documents,
or (iv) the rights of the Administrative Agent or any Lender to collect the full amounts owing to
them under the Credit Documents.

(c) Each of the Company, the Administrative Agent and the Lenders does hereby adopt, ratify,
and confirm the Credit Agreement, as amended hereby, and acknowledges and agrees that the Credit
Agreement, as amended hereby, is and remains in full force and effect, and the Company acknowledges
and agrees that its liabilities and obligations under the Credit Agreement, as amended hereby, are
not impaired in any respect by this Agreement. From and after the Effective Date, all references to
the Credit Agreement and the Credit Documents shall mean such Credit Agreement and such Credit
Documents as amended by this Agreement.

(d) This Agreement is a Credit Document for the purposes of the provisions of the other Credit
Documents. Without limiting the foregoing, any breach of representations, warranties, and
covenants under this Agreement shall be a Default or Event of Default, as applicable, under the
Credit Agreement.

Section 8. Counterparts. This Agreement may be signed in any number of
counterparts, each of which shall be an original and all of which, taken together, constitute a
single instrument. This Agreement may be executed by facsimile signature and all such signatures
shall be effective as originals.

Section 9. Successors and Assigns. This Agreement shall be binding upon and
inure to the benefit of the parties hereto and their respective successors and assigns permitted
pursuant to the Credit Agreement.

Section 10. Invalidity. In the event that any one or more of the provisions
contained in this Agreement shall for any reason be held invalid, illegal or unenforceable in any
respect, such invalidity, illegality or unenforceability shall not affect any other provision of
this Agreement.

Section 11. Governing Law. This Agreement shall be deemed to be a contract
made under and shall be governed by and construed in accordance with the laws of the State of New
York.

Section 12. Entire Agreement. THIS AGREEMENT, THE CREDIT AGREEMENT AS
AMENDED BY THIS AGREEMENT, THE NOTES, AND THE OTHER CREDIT DOCUMENTS CONSTITUTE THE ENTIRE
UNDERSTANDING AMONG THE PARTIES HERETO WITH RESPECT TO THE SUBJECT MATTER HEREOF AND SUPERSEDE ANY
PRIOR AGREEMENTS, WRITTEN OR ORAL, WITH RESPECT THERETO.

THERE ARE NO UNWRITTEN ORAL AGREEMENTS AMONG THE PARTIES.

[Signature pages follow.]

1

EXECUTED effective as of the date first above written.

COMPANY:

BELDEN & BLAKE CORPORATION

By: /s/ James M. Vanderhider

Name: James M. Vanderhider

Title: President and Chief Financial Officer

ADMINISTRATIVE AGENT/

LENDER:

BNP PARIBAS,

as Administrative Agent and as Lender

By: /s/ Polly Schott

Name: Polly Schott

Title: Director

By: /s/ Courtney Kubesch

Name: Courtney Kubesch

Title: Vice President

2

LENDER:

JPMORGAN CHASE BANK, N.A.

as Lender

By: /s/ Michael A. Kamauf

Name: Michael A. Kamauf

Title: Vice President

3

LENDER:

AMEGY BANK NATIONAL ASSOCIATION,

as Lender

By: /s/ Charles W. Patterson

Name: Charles W. Patterson

Title: Senior Vice President

4

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