Document:

Document

Exhibit 4.1

DESCRIPTION OF SECURITIES REGISTERED
UNDER SECTION 12 OF THE EXCHANGE ACT OF 1934

Lincolnway Energy, LLC (“LWE” or the “Company”) has one class of securities registered under Section 12 of the Securities Exchange Act of 1934, as amended: our Common Limited Liability Company Units (“Common Units”). 

The following summary of the terms of the limited liability company units of LWE is not meant to be complete and is qualified by reference to the relevant provisions of the Revised Uniform Limited Liability Company Act of the State of Iowa (the “Iowa LLC Act”) and the complete text of LWE’s Restatement of the Certificate of Organization (the “Certificate of Organization”) and Fourth Amended and Restated Operating Agreement and Unit Assignment Policy effective as of April 1, 2020 (the “Operating Agreement”). Both our Certificate of Organization and Operating Agreement are exhibits to our Annual Report on Form 10-K, of which this Exhibit 4.1 is a part.

Authorized Limited Liability Company Units

An unlimited number of Common Units, Class A Units, and Class B Units (collectively “Units”) are authorized. The number of such Units to be issued to any additional member and any contribution for such Units shall be determined by the directors as set forth in the Operating Agreement. 

Description of Common Units

Voting Rights. Each Common Unit is entitled to one vote on matters with respect to which the members holding Common Units are entitled to vote. Holders of Common Units vote with holders Class B Units, collectively as a class, to elect three (of seven) directors. Members, including holders of Common Units, have a right to vote on a variety of other matters as specified in our Operating Agreement. Certain matters voted on by our members are subject to approval of Class A unit holders. Except as otherwise required under the Certificate of Organization, the Operating Agreement or the Iowa LLC Act, the vote of the members holding at least a majority of the outstanding applicable Units eligible to vote and represented at a meeting at which a quorum of the members is present shall be the act of the members with respect to all votes, acts, matters, decisions, questions or other determinations whatsoever to be taken or made by the members. At all meetings of the members, a member may vote in person, or by means of remote communication, if the meeting is held by such means, or by proxy executed in writing by the member or by a duly authorized attorney-in-fact of the member.

Dividend Rights. Our directors have the authority to declare and pay distributions to our members. Declaration and/or payment of distributions with respect to any Units of the Company are subject to approval by holders of Class A Units, unless expressly authorized in the Operating Agreement. All distributions of cash or other property to the members shall be made to the members pro rata, based on the respective number of Units held by the members. 

Rights Upon Liquidation. Upon the winding up of the Company or the occurrence of a Deemed Liquidation Event (as defined in the Operating Agreement), the assets of the Company will first be distributed to creditors (if any); second, holders of Class A Units will receive distributions in proportion to, and to the extent of their capital contributions (reduced as set forth in the Operating Agreement); third, holders of Class B Units will receive distributions in proportion to, and to the extent of their capital contributions (reduced as set forth in the Operating Agreement); and finally, all members (Common, Class A, and Class B) will receive distributions pro rata based upon the respective number of Units held by each member. 

Redemption Rights. Any member may at any time, but has no obligation to, tender any or all of the Units owned by that member to the Company for purchase by the Company in accordance with Section 9.6 of the Operating Agreement. Rights of redemption are subject to approval by a majority of the Class A Units (other than certain repurchases of Common Units of former employees/officers/directors/consultants/etc.). 

Other Rights. Common Units have no subscription, conversion, or preemptive rights and have no sinking fund provision. 

Trading of Units. LWE’s Units are not listed on any exchange, and there is no public trading market for LWE’s Units. However, the Company does provide access to a qualified matching service for its members, which provides a system for limited transfers of the Company’s Units.

Certain Provisions of Our Certificate of Organization and Operating Agreement

Classification of Board of Directors. Our board of seven directors is classified into three “Elected Directors,” which are elected by holders of Common Units and holders of Class B Units, voting together as a Class; and four “Class A Directors,” which are elected by holders of Class A Units. 

Additionally, our “Elected Directors” are classified further. One Elected Director is currently serving a two-year term (expiring at the 2022 annual meeting) and will then be eligible for election to a three-year term. The second Elected Director is currently serving a two year term (expiring at the 2022 annual meeting) and will then be eligible to be elected for another two-year term, followed by eligibility to be elected for three-year terms thereafter. Our third Elected Director is currently serving a three-year term (expiring at the 2023 annual meeting) and will be eligible to be elected for another three year term. 

Removal of Elected Directors; Filling Vacancies of Elected Directors. Our Operating Agreement provides that holders of Common Units, voting together with holders Class B Units, as a class have the right to remove any of the Elected Directors with or without cause, by a majority vote. Any vacancy occurring for any reason in an Elected Director position (including through an increase in the number of Elected Directors or the death, removal or resignation of any Elected Director) may be filled by either the remaining Elected Directors or by the holders of a majority of the Common and Class B Units, voting as a class, except that only the holders of a majority of the Common and Class B Units, voting as a class, may fill a vacancy occurring because of the removal of a director by such unit holders. If the Elected Directors remaining in office constitute fewer than a quorum of the Elected Directors, the Elected Directors may fill such vacancy by the affirmative vote of a majority of the Elected Directors remaining in office.

Ability of Members to Call Special Meetings. Our Operating Agreement provides that special meetings of the members, for any purpose or purposes, may be called by the directors or by the chairman or the president, and shall be called by or at the direction of the directors or the chairman or the president upon the written request of any member or members holding at least thirty percent (30%) of the outstanding Units.

Member Nominations for Directors. Our Operating Agreement provides that any member or members owning at least five percent of the outstanding Units may nominate any individual for election as an Elected Director at the next annual meeting of the members at which an Elected Director position is to be filled, by submitting a written nomination petition to the Company in a form provided by the Company, within the time frames specified in our Operating Agreement, and in compliance with all other requirements of our Operating Agreement. 

Action by Written Consent. Our Operating Agreement provides that any action required or permitted to be taken at a meeting of the members (whether an annual or special meeting) may be taken without a meeting and without notice if (i) the action is taken by the members holding at least seventy-five percent (75%) of the outstanding Units eligible to vote on the action, and (ii) one or more written consents or written actions describing the action taken are signed by such members.

Member Action Required for Certain Transactions. A vote of the members is required for the following transactions: a) the sale, lease, exchange or other transfer or disposition of all or substantially all of the assets of the Company, except in certain instances specified in the Operating Agreement; b) the merger, conversion or domestication of the Company; and c) dissolution of the Company. Holders of Class A Units must approve certain transactions, including, among others: a) creation of additional classes of membership units (unless ranks junior to Class A Units); b) entering any transaction(s) that involve a “Deemed Liquidation Event” (as defined in the Operating Agreement); c) any purchase, lease, license, exchange or other acquisition (including merger, consolidation, sale of stock or sale of assets) of any assets and/or equity interests of any other  entity which is outside the ordinary course of business; and d) liquidation, dissolution or winding up of the business and affairs of the Company. 

Potential Limitations on Rights of Holders of Common Units. Certain actions are subject to approval of holders of Class A Units pursuant to the Operating Agreement. Certain of these actions are actions that may affect the rights of holders of Common Units and Class B Units, including, among other matters: payment/declaration of distributions; creation or issuance of any additional class or series of membership units (unless they rank junior to Class A Units); purchase/redemption of Units (other than certain repurchases of Common Units of former employees/officers/directors/consultants/etc.), and increase/decrease of the number of directors. Additionally, holders of Class A Units have certain preemptive rights, which are described in the Operating Agreement. 

Restrictions on Alienability. A member may not Assign (as that term is defined in the Operating Agreement) any or all of the member's Units, except in compliance with this Agreement and also only with the prior written approval of the directors and in compliance and accordance with all such other policies and procedures as may be adopted from time to time by the directors (with certain exceptions for holders of Class A Units). The Company may, in its sole discretion, require the assignee and/or the assignor in each proposed Assignment to pay directly, or to reimburse the Company for, all fees, costs and expenses paid or incurred by the Company in connection with the Assignment, including legal and accounting fees.Document

Exhibit 10.1
Execution Version

FIRST AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT 
This FIRST AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT (this “First Amendment”), dated as of December 21, 2021 (the “First Amendment Effective Date”), is among CIVITAS RESOURCES, INC., a Delaware corporation (the “Borrower”); each of the undersigned guarantors (the “Guarantors”, and together with the Borrower, the “Credit Parties”); each of the Lenders that is a signatory hereto; and JPMORGAN CHASE BANK, N.A., as administrative agent for the Lenders (in such capacity, together with its successors in such capacity, the “Administrative Agent”).
Recitals
A.    The Borrower, the Administrative Agent, the Lenders and the Issuing Banks are parties to that certain Amended and Restated Credit Agreement dated as of November 1, 2021 (as amended, restated, supplemented or otherwise modified prior to the date hereof, the “Credit Agreement”), pursuant to which the Lenders have, subject to the terms and conditions set forth therein, made certain credit available to and on behalf of the Borrower.  
B.    The parties hereto desire to enter into this First Amendment to, among other things, amend the Credit Agreement as set forth in Section 2 hereof and to be effective as of the First Amendment Effective Date. 
NOW, THEREFORE, in consideration of the premises and the mutual covenants herein contained, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:
Section 1.Defined Terms.  Each capitalized term which is defined in the Credit Agreement, but which is not defined in this First Amendment, shall have the meaning ascribed such term in the Credit Agreement, as amended hereby.  Unless otherwise indicated, all section references in this First Amendment refer to the Credit Agreement.
Section 2.Amendments to Credit Agreement.  In reliance on the representations, warranties, covenants and agreements contained in this First Amendment, and subject to the satisfaction of the conditions precedent set forth in Section 3 hereof, the Credit Agreement shall be amended effective as of the First Amendment Effective Date, in the manner provided in this Section 2.
2.1Additional Definition.  Section 1.02 of the Credit Agreement is hereby amended to add thereto in alphabetical order the following definition which shall read in full as follows:
“First Amendment” means that certain First Amendment to Amended and Restated Credit Agreement dated as of December 21, 2021, among the Borrower, the Guarantors party thereto, the Administrative Agent and the Lenders party thereto.
2.2Amended Definition.  The following definition contained in Section 1.02 of the Credit Agreement is hereby amended and restated in its entirety to read in full as follows:
“Loan Documents” means this Agreement, the First Amendment, the Notes, the Letter of Credit Agreements, the Letters of Credit, the Security Instruments, the Guarantee Agreement and the Fee Letter.
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2.3Amendment to Section 8.01(o) of the Credit Agreement.  Section 8.01(o) of the Credit Agreement is hereby amended by amending and restating clause (ii) therein to read in full as follows:
(ii)    to the extent the Leverage Ratio is greater than or equal to 1.0 to 1.0 as of the Applicable Leverage Ratio Test Date with respect to such Specified Swap Test Date, that the Credit Parties are in compliance with Section 8.19 as of such Specified Swap Test Date and providing supporting information reasonably satisfactory to the Administrative Agent demonstrating compliance with Section 8.19.
2.4Amendment to Section 8.19 of the Credit Agreement.  Section 8.19 of the Credit Agreement is hereby amended and restated in its entirety to read in full as follows:
Section 8.19    Swap Agreements.  Commencing with the fiscal quarter ending December 31, 2021, as of the last day of each fiscal quarter (each such date, a “Specified Swap Test Date”), the Credit Parties shall be party to Swap Agreements, in the form of fixed-price swaps and purchased put options or collars, in each case, with prices and terms reasonably acceptable to the Administrative Agent, covering not less than fifty percent (50%) of the reasonably anticipated projected production from Oil and Gas Properties constituting Proved Developed Producing Reserves (as reflected in the most recently delivered Reserve Report prior to such Specified Swap Test Date) for each of crude oil and natural gas, calculated separately, for each calendar month of the twelve (12) calendar month period commencing with the calendar month immediately following such Specified Swap Test Date; provided that if the Leverage Ratio is less than 1.0 to 1.0 as of the Applicable Leverage Ratio Test Date with respect to any such Specified Swap Test Date, the Credit Parties shall not be required to comply with the foregoing requirements for such Specified Swap Test Date.  The Borrower shall not unwind, terminate or enter into any off-setting positions to the hedges required under this Section 8.19 except (i) to the extent necessary to comply with Section 9.14, (ii) in connection with a transaction permitted by Section 9.10(e) or (iii) at the time of such unwinding, termination or off-setting trade, it was not required to comply with this Section 8.19.  Notwithstanding anything to the contrary contained herein, for purposes of this Section 8.19, the Leverage Ratio as of September 30, 2021 shall be deemed to be less than 1.0 to 1.0 and the Credit Parties shall not be required to comply with this Section 8.19 for the Specified Swap Test Date occurring on December 31, 2021.
Section 3.Conditions Precedent.  The effectiveness of this First Amendment is subject to the following:
3.1Counterparts.  The Administrative Agent shall have received counterparts of this First Amendment from (a) each of the Credit Parties and (b) each of the Lenders constituting the Majority Lenders.
3.2Fees.  The Administrative Agent shall have received all fees and other amounts due and payable on or prior to the First Amendment Effective Date.
3.3Other Documents.  The Administrative Agent shall have received such other documents as the Administrative Agent or counsel to the Administrative Agent may reasonably request.
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Section 4.Miscellaneous.
4.1Confirmation and Effect.  The provisions of the Credit Agreement (as amended by this First Amendment) shall remain in full force and effect in accordance with its terms following the effectiveness of this First Amendment, and this First Amendment shall not constitute a waiver of any provision of the Credit Agreement or any other Loan Document.  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, and each reference to the Credit Agreement in any other document, instrument or agreement executed and/or delivered in connection with the Credit Agreement shall mean and be a reference to the Credit Agreement as amended hereby.
4.2Ratification and Affirmation of Credit Parties.  Each of the Credit Parties hereby expressly (i) acknowledges the terms of this First Amendment, (ii) ratifies and affirms its obligations under the Loan Documents to which it is a party, (iii) acknowledges, renews and extends its continued liability under the Loan Documents to which it is a party, (iv) agrees, with respect to each Credit Party that is a Guarantor, that its Guarantee under the Guarantee Agreement remains in full force and effect with respect to the Obligations as amended hereby, (v) represents and warrants to the Lenders and the Administrative Agent that each representation and warranty of such Credit Party contained in the Credit Agreement and the other Loan Documents to which it is a party is true and correct in all material respects as of the date hereof and after giving effect to the amendments set forth in Section 2 hereof except (A) to the extent any such representations and warranties are expressly limited to an earlier date, in which case, on and as of the date hereof, such representations and warranties shall continue to be true and correct in all material respects as of such specified earlier date, and (B) to the extent that any such representation and warranty is expressly qualified by materiality or by reference to Material Adverse Effect, such representation and warranty (as so qualified) shall continue to be true and correct in all respects, (vi) represents and warrants to the Lenders and the Administrative Agent that the execution, delivery and performance by such Credit Party of this First Amendment are within such Credit Party’s corporate, limited partnership or limited liability company powers (as applicable), have been duly authorized by all necessary action and that this First Amendment constitutes the valid and binding obligation of such Credit Party enforceable in accordance with its terms, except as the enforceability thereof may be limited by bankruptcy, insolvency or similar laws affecting creditor’s rights generally, and (vii) represents and warrants to the Lenders and the Administrative Agent that no Event of Default exists.  
4.3Counterparts.  This First Amendment may be executed by one or more of the parties hereto in any number of separate counterparts, and all of such counterparts taken together shall be deemed to constitute one and the same instrument.  Delivery of this First Amendment by fax or electronic transmission (e.g. “.pdf”) shall be effective as delivery of a manually executed original counterpart hereof.
4.4No Oral Agreement.  This written First Amendment, the Credit Agreement and the other Loan Documents executed in connection herewith and therewith represent the final agreement between the parties and may not be contradicted by evidence of prior, contemporaneous, or unwritten oral agreements of the parties.  There are no subsequent oral agreements between the parties that modify the agreements of the parties in the Credit Agreement and the other Loan Documents.
4.5Governing Law.  This First Amendment (including, but not limited to, the validity and enforceability hereof) shall be governed by, and construed in accordance with, the laws of the State of New York.
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4.6Payment of Expenses.  The Borrower agrees to pay or reimburse the Administrative Agent for all of its reasonable out-of-pocket costs and expenses incurred in connection with this First Amendment, any other documents prepared in connection herewith and the transactions contemplated hereby, including, without limitation, the reasonable fees and disbursements of counsel to the Administrative Agent.
4.7Severability.  Any provision of this First Amendment which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.
4.8Successors and Assigns.  This First Amendment shall be binding upon and inure to the benefit of the parties hereto and their respective successors and permitted assigns.
[Signature Pages Follow.]
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The parties hereto have caused this First Amendment to be duly executed as of the day and year first above written.
									
	BORROWER:	CIVITAS RESOURCES, INC.
			
		By:	/s/ Marianella Foschi
		Name:	Marianella Foschi
		Title:	Chief Financial Officer

Signature Page to First Amendment to Amended and Restated Credit Agreement
Civitas Resources, Inc.

									
		GUARANTORS:
		
		BONANZA CREEK ENERGY OPERATING COMPANY, LLC
HOLMES EASTERN COMPANY, LLC
ROCKY MOUNTAIN INFRASTRUCTURE, LLC
HIGHPOINT RESOURCES CORPORATION
HIGHPOINT OPERATING CORPORATION
FIFTH POCKET PRODUCTION, LLC
EXTRACTION OIL & GAS, INC.
EXTRACTION FINANCE CORP.
MOUNTAINTOP MINERALS, LLC
TABLE MOUNTAIN RESOURCES, LLC
NORTHWEST CORRIDOR HOLDINGS, LLC
XTR MIDSTREAM, LLC
7N, LLC
8 NORTH, LLC
AXIS EXPLORATION, LLC
XOG SERVICES, LLC
RAPTOR CONDOR MERGER SUB 2, LLC
CRESTONE PEAK RESOURCES GP INC.
CRESTONE PEAK RESOURCES LLC
CRESTONE PEAK RESOURCES ACQUISITION COMPANY I LLC
CRESTONE PEAK RESOURCES OPERATING LLC
CRESTONE PEAK RESOURCES MIDSTREAM LLC
CRESTONE PEAK RESOURCES HOLDINGS LLC
COLLEGIATE HOLDINGS LLC
CRESTONE PEAK RESOURCES WATKINS MIDSTREAM LLC
CRESTONE PEAK RESOURCES WATKINS HOLDINGS LLC
CRESTONE PEAK RESOURCES LP

			
		By:	/s/ Marianella Foschi
		Name:	Marianella Foschi
		Title:	Chief Financial Officer

Signature Page to First Amendment to Amended and Restated Credit Agreement
Civitas Resources, Inc.

									
		JPMORGAN CHASE BANK, N.A.,

		as Administrative Agent and a Lender
			
		By:	/s/ Umar Hassan
		Name:	Umar Hassan
		Title:	Authorized Officer

Signature Page to First Amendment to Amended and Restated Credit Agreement
Civitas Resources, Inc.

									
		WELLS FARGO BANK, NATIONAL ASSOCIATION,

		as a Lender
			
		By:	/s/ Jonathan Herrick
		Name:	Jonathan Herrick
		Title:	Director

Signature Page to First Amendment to Amended and Restated Credit Agreement
Civitas Resources, Inc.

									
		CITIBANK, N.A.,

		as a Lender
			
		By:	/s/ Cliff Vaz
		Name:	Cliff Vaz
		Title:	Vice President

Signature Page to First Amendment to Amended and Restated Credit Agreement
Civitas Resources, Inc.

									
		KEYBANK NATIONAL ASSOCIATION,

		as a Lender
			
		By:	/s/ George McKean
		Name:	George McKean
		Title:	Senior Vice President

Signature Page to First Amendment to Amended and Restated Credit Agreement
Civitas Resources, Inc.

									
		BANK OF AMERICA, N.A., 

		as a Lender
			
		By:	/s/ Ronald E. McKaig
		Name:	Ronald E. McKaig
		Title:	Managing Director

Signature Page to First Amendment to Amended and Restated Credit Agreement
Civitas Resources, Inc.

									
		FIFTH THIRD BANK,
NATIONAL ASSOCIATION, 

		as a Lender
			
		By:	/s/ Jonathan H. Lee
		Name:	Jonathan H. Lee
		Title:	Managing Director

Signature Page to First Amendment to Amended and Restated Credit Agreement
Civitas Resources, Inc.

									
		U.S. BANK NATIONAL ASSOCIATION,

		as a Lender
			
		By:	/s/ Bruce Hernandez
		Name:	Bruce Hernandez
		Title:	Senior Vice President

Signature Page to First Amendment to Amended and Restated Credit Agreement
Civitas Resources, Inc.

									
		TRUIST BANK, 

		as a Lender
			
		By:	/s/ James Giordano
		Name:	James Giordano
		Title:	Managing Director

Signature Page to First Amendment to Amended and Restated Credit Agreement
Civitas Resources, Inc.

									
		ROYAL BANK OF CANADA, 

		as a Lender
			
		By:	/s/ Emilee Scott
		Name:	Emilee Scott
		Title:	Authorized Signatory

Signature Page to First Amendment to Amended and Restated Credit Agreement
Civitas Resources, Inc.

									
		PNC BANK,
NATIONAL ASSOCIATION, 

		as a Lender
			
		By:	/s/ John Engel
		Name:	John Engel
		Title:	Senior Vice President

Signature Page to First Amendment to Amended and Restated Credit Agreement
Civitas Resources, Inc.

									
		CAPITAL ONE,
NATIONAL ASSOCIATION, 

		as a Lender
			
		By:	/s/ Christopher Kuna
		Name:	Christopher Kuna
		Title:	Senior Director

Signature Page to First Amendment to Amended and Restated Credit Agreement
 Civitas Resources, Inc.

									
		BOKF, NA,

		as a Lender
			
		By:	/s/ Benjamin H. Adler
		Name:	Benjamin H. Adler
		Title:	Senior Vice President

Signature Page to First Amendment to Amended and Restated Credit Agreement
 Civitas Resources, Inc.

									
		COMERICA BANK,

		as a Lender
			
		By:	/s/ Caroline M. McClurg
		Name:	Caroline M. McClurg
		Title:	Senior Vice President

Signature Page to First Amendment to Amended and Restated Credit Agreement
 Civitas Resources, Inc.

									
		CREDIT SUISSE AG,
NEW YORK BRANCH,
		as a Lender
			
		By:	/s/ Judith Smith
		Name:	Judith Smith
		Title:	Authorized Signatory
			
		By:	/s/ Michael Dieffenbacher
		Name:	Michael Dieffenbacher
		Title:	Authorized Signatory

Signature Page to First Amendment to Amended and Restated Credit Agreement
 Civitas Resources, Inc.

									
		GOLDMAN SACHS BANK USA, 

		as a Lender
			
		By:	/s/ Dan Martis
		Name:	Dan Martis
		Title:	Authorized Signatory

Signature Page to First Amendment to Amended and Restated Credit Agreement
 Civitas Resources, Inc.

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