Document:

Exhibit 10.1

 

SECOND AMENDMENT TO

CREDIT AGREEMENT

 

THIS SECOND AMENDMENT
TO CREDIT AGREEMENT (hereinafter called this “Amendment”) is dated as of July 24, 2015, 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.

 

WITNESSETH:

 

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 (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 definition of “Continuing Director” in Section
1.1 of the Credit Agreement is amended and restated in its entirety as follows:

 

“Continuing
Director” shall mean, with respect to any period, any individuals (A) who were members of the board of directors or other
equivalent governing body of the Borrower on the first day of such period, (B) whose election or nomination to that board or equivalent
governing body was approved by individuals referred to in clause (A) above constituting at the time of such election or nomination
at least a majority of that board or equivalent governing body, or (C) whose election or nomination to that board or other equivalent
governing body was approved by individuals referred to in clauses (A) and (B) above constituting at the time of such election or
nomination at least a majority of that board or equivalent governing body.

 

SECTION
3.      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 4 of this Amendment shall be true and
correct;

 

(3)              
Since December 31, 2014, 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
4.      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.

 

(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).

 

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

 

(g)               
Since December 31, 2014, 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
5.      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.

 

(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.

 

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(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
6.      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
7.      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

 

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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:	/s/ William R. Broaddrick
	 	 	Name: William R. Broaddrick
	 	 	Title: CFO
	 	 	 
	 	 	 
	 	SUNTRUST BANK,
	 	as Administrative Agent, as Issuing Bank and as a Lender
	 	 	 
	 	By:	/s/ Scott Mackey
	 	 	Name:Scott Mackey
	 	 	Title:Director
	 	 	 
	 	 	 
	 	CADENCE BANK,
	 	as a Lender
	 	 	 
	 	By:	/s/ Steven Taylor
	 	 	Name:Steven Taylor
	 	 	Title:Vice President
	 	 	 
	 	 	 
	 	COMPASS BANK,
	 	as a Lender
	 	 	 
	 	By:	/s/ Gabriela Albino
	 	 	Name:Gabriela Albino
	 	 	Title:Vice President
	 	 	 
	 	 	 
	 	IBERIABANK,
	 	as a Lender
	 	 	 
	 	By:	/s/ W. Bryan Chapman
	 	 	Name:W. Bryan Chapman
	 	 	Title:Executive Vice President

 

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	 	Bank Midwest, a division of NBH Bank, N.A.
	 	as a Lender
	 	 	 
	 	By:	/s/ Jordan L. Buschman
	 	 	Name:Jordan L. Buschman
	 	 	Title:Vice President
	 	 	 
	 	 	 
	 	CrossFirst Bank,
	 	as a Lender
	 	 	 
	 	By:	/s/ Chris Cardoni
	 	 	Name:Chris Cardoni
	 	 	Title:President, Energy Bank
of CrossFirst Bank

 

    	6Exhibit 10.2

 

FIRST AMENDMENT TO
 2009 CHANGE IN CONTROL SEVERANCE PLAN 
 (RENAMED 2009 SEVERANCE PLAN)

 

THIS FIRST AMENDMENT to the Theravance, Inc. (the “Corporation”) 2009 Severance Plan (the “Plan”) is made effective as of July 24, 2015.

 

WHEREAS, the Corporation maintains the Plan;

 

WHEREAS, pursuant to Article III, Section 6 of the Plan, the Corporation’s Board of Directors or Compensation Committee may amend the Plan at any time;

 

WHEREAS, the Corporation desires to provide certain severance benefits under the Plan to senior vice presidents whose employment is terminated by the Corporation for reasons other than Misconduct other than in connection with a Change in Control; and

 

WHEREAS, capitalized terms not otherwise defined herein shall have the meanings set forth in the Plan.

 

NOW, THEREFORE, the Plan is hereby amended as follows:

 

1.                                      SVP Non-CIC Severance Benefits:  In the event that a senior vice president’s active employment is terminated by the Corporation for reasons other than Misconduct and such termination does not otherwise entitle the officer to severance benefits under the Plan (i.e., such termination does not occur within 3 months before or 24 months after a Change in Control), then such senior vice president will receive the following severance benefits (the “Non-CIC Severance Benefits”):

 

·                  A severance payment equal to 100% of the officer’s Annual Base Pay.  This severance payment shall be paid in one lump sum from the general assets of the Corporation within 60 days after the officer’s employment terminates (if such period spans calendar years, then the payment will be made in the second calendar year);

 

·                  The officer will remain eligible to receive a pro-rata bonus (based on the number of full months of employment completed in the year of termination) for the year of termination, subject to the terms and conditions of the Company’s bonus program in effect at the time of termination (other than continued employment) including the achievement of any performance conditions, payable at the same time as bonuses are paid to active employees; and

 

·                  If the officer timely elects to continue his or her health insurance coverage under COBRA, the Company will pay the monthly premium under COBRA for the officer and, if applicable, his or her dependents until the earliest of (i) the end of the period of 12 months following the month in which the officer’s employment terminates, (ii) expiration of the officer’s continuation coverage under COBRA or (iii) the date when the officer obtains new employment offering comparable health insurance coverage.

 

 

2.                                      Eligibility Requirements:  In order to be eligible for Non-CIC Severance Benefits, an individual must be a senior vice president of the Corporation at the time of his or her termination of employment and satisfy all of the other eligibility requirements set forth in Article I of the Plan, other than the requirement that the officer’s employment be involuntarily terminated other than for Misconduct within a designated period following a Change in Control, including the requirement to execute and allow to become effective a general release of claims in a form provided by the Corporation.  If the release of claims has not been signed and become effective within 60 days after the officer’s termination of employment, then the officer will cease to be eligible for Non-CIC Severance Benefits.  For avoidance of doubt, neither the Chief Executive Officer nor other officers of the Corporation are eligible for Non-CIC Severance Benefits under the Plan.

 

3.                                      The provisions of Sections II.6. and Article III of the Plan shall apply to the Non-CIC Severance Benefits.

 

4.                                      The name of the Plan is hereby changed to “2009 Severance Plan”.

 

5.                                      Except as amended herein, all of the terms of the Plan shall remain and continue in full force and effect.

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