Document:

exv10w16

Exhibit 10.16

SERVICES AGREEMENT

     This Services Agreement (this “Agreement”) is entered into on [                    ], 2010, by and
between Oasis Petroleum Inc., a Delaware corporation (“OAS”), and OAS Holding Company LLC, a
Delaware limited liability company (“Oasis Holding”).

WITNESSETH:

     WHEREAS, OAS is an independent oil and gas exploration and production company;

     WHEREAS, Oasis Holding is owned by, among others, certain members of the management of OAS;

     WHEREAS, OAS performs certain administrative, technical and ministerial services in connection
with the operation of its business which it has offered to provide, from time to time, to Oasis
Holding;

     WHEREAS, greater efficiency and reduced costs result from the economies of scale associated
with the provision of such services by OAS for itself and certain of its associated companies,
including Oasis Holding;

     WHEREAS, OAS desires to make such services, as well as certain management and professional
services (hereinafter referred to collectively as “Staff Services”) available to Oasis Holding, and
Oasis Holding desires to avail itself of such Staff Services;

     WHEREAS, OAS and Oasis Holding intend to retain absolute control over the management of their
respective business affairs, including but not limited to all matters relating to their respective
governance, asset management, operations, and the establishment of policies and practices; and

     WHEREAS, in light of the foregoing, OAS and Oasis Holding desire to memorialize their
agreements with respect to the foregoing as of the date hereof and to formulate agreements for
future operations.

     NOW, THEREFORE, the parties hereto agree as follows:

SECTION 1

SERVICES PROVIDED BY OAS

     OAS shall provide or cause to be provided to Oasis Holding, as requested by Oasis Holding, the
following Staff Services in connection with the operation of Oasis Holding, all of which shall be
under the control and for the benefit of Oasis Holding:

     Section 1.1 Information Technology Services. OAS’s Information Technology Department shall, as the
parties may from time to time agree, assist Oasis Holding in establishing, maintaining and
developing information technology and telecommunications technology, including software systems,
hardware and services, that Oasis Holding may utilize for its operations.

 

 

     Section 1.2 Accounting Services. OAS’s Accounting Department shall, as the parties may from
time to time agree, assist Oasis Holding’s Accounting Department and provide general and specific
accounting services including services in relation to financial reporting.

     Section 1.3 Investment and Treasury Services. OAS’s Investment Department shall, as the
parties may from time to time agree, assist Oasis Holding with respect to the investment of cash
and other financial assets of Oasis Holding. In addition, OAS’s Treasury Department shall, as the
parties may from time to time agree, assist Oasis Holding with respect to the establishment and
maintenance of bank accounts and banking relationships, the collection, holding and disbursement of
cash receipts of Oasis Holding as well as the clearing or other back office functions related to
any securities trading or investment activity undertaken by or for the benefit of Oasis Holding,
all of which shall ultimately be under the control and for the benefit of Oasis Holding.

     Section 1.4 Tax Preparation. OAS shall, as the parties may from time to time agree, advise
and assist Oasis Holding in preparing and filing federal, state and other tax returns, handling
discussions and proceedings with tax authorities, and planning with respect to tax liabilities.

     Section 1.5 Insurance. OAS’s Risk Management Department shall, as the parties may, from time
to time, agree, assist Oasis Holding with Risk Management and Insurance programs including, but not
limited to, obtaining and maintaining insurance and related products and services and administering
claims thereunder.

     Section 1.6 Internal Audit. OAS’s Internal Audit Department shall, as the parties may
from time to time agree, provide internal audit services to Oasis Holding.

     Section 1.7 Legal. OAS’s Law Department shall, as the parties may from time to time
agree, assist Oasis Holding’s Legal Department and provide general and specific legal services

     Section 1.8 Strategy and Corporate Development. OAS’s Corporate Development
Department and other OAS senior executives shall, as the parties may from time to time agree,
provide assistance to Oasis Holding relating to corporate strategy, acquisitions and financing
opportunities, and such other similar services as the parties may agree upon.

     Section 1.9 Miscellaneous. OAS shall provide such other miscellaneous Staff
Services to Oasis Holding as the parties may from time to time agree.

SECTION 2

RELATIONSHIP OF THE PARTIES

     Section 2.1 Each party acknowledges that the services provided hereunder by OAS are intended
to be administrative, consultative, technical or ministerial and not to set policy for Oasis
Holding. Each party shall continue to set corporate policy independently through its own Board of
Directors or other governing body.

     Section 2.2 In all activities under this Agreement, each party shall be an independent
contractor, except as may be otherwise specifically provided in writing and authorized by the

 - 2 - 

 

appropriate Board of Directors. Nothing in this Agreement shall be deemed to (i) make either
party or any employee of such party the agent, employee, joint venturer or partner of the other
party, or (ii) create in either party the right or authority to incur any obligation on behalf of
the other party or to bind such other party in any way whatsoever except as may be expressly
provided for in this Agreement.

     Section 2.3 Neither party shall have any liability for any act or omission in connection with
this Agreement other than repeating a service for the purpose of correcting an act or omission
where reasonable and appropriate under the circumstances. Neither party shall be liable to the
other party in respect of any act or omission in connection with this Agreement for loss of
profits, good will or any other general, direct, special or consequential damages of any kind.
Except as expressly set forth in this Section 2, the parties make no representations or warranties
with respect to the services to be provided under this Agreement.

     Section 2.4 Oasis Holding hereby agrees to defend, indemnify and hold OAS and its affiliates
(other than Oasis Holding and its subsidiaries), and their respective officers, directors,
employees and agents harmless from and against any and all loss, claim, damage, liability, cost or
expense, including reasonable attorneys’ fees, incurred by OAS or any such affiliates based upon a
claim by or liability to a third party arising out of the Staff Services to be provided by OAS
hereunder, unless due to the gross negligence or willful misconduct of OAS or its affiliates.

SECTION 3

FEES, COSTS AND EXPENSES

     Oasis Holding shall pay to OAS (i) a monthly fee of four thousand dollars ($4,000.00) which
represents a reasonable estimate of the costs and expenses incurred by OAS hereunder (such as
general corporate expenses and overhead and costs of OAS employees providing services to Oasis
Holding hereunder) plus (ii) the actual costs of any third party consultants engaged by OAS to
provide services to Oasis Holding hereunder. Oasis Holding and OAS shall periodically review the
fees paid hereunder and adjust such fees as may be mutually agreed.

SECTION 4

TERM

     This Agreement may be terminated by either party at any time on not less than sixty (60) days’
prior written notice to the other party.

SECTION 5

NOTICES

     All notices, consents and other communications hereunder shall be in writing and shall be
deemed given hereunder when sent by certified mail, return receipt requested, or delivered by hand
to a party at the following addresses, or at any other address as any party may from time to time
specify by notice to the other:

 - 3 - 

 

	 	 	 	 	 

	 

	 	If to OAS:
	 	Oasis Petroleum Inc.
	 

	 	 	 	First City Tower
	 

	 	 	 	1001 Fannin, Suite 202
	 

	 	 	 	Houston, Texas 77002
	 

	 	 	 	Attention: Compliance Officer
	 
	 	 	 	 
	 

	 	If to Oasis Holding:
	 	OAS Holding Company LLC
	 

	 	 	 	First City Tower
	 

	 	 	 	1001 Fannin, Suite 202
	 

	 	 	 	Houston, Texas 77002
	 

	 	 	 	Attention: Thomas B. Nusz

SECTION 6

MISCELLANEOUS

     This Agreement shall be construed and enforced in accordance with and governed by the laws of
the State of Texas. The headings of this Agreement are for ease of reference and do not limit or
otherwise affect the meaning hereof. No party may assign any of its rights or obligations under
this Agreement without the express written consent of the other. This Agreement constitutes the
sole understanding and agreement of the parties hereto with respect to the subject matter hereof
and supersedes all prior agreements or understandings, written or oral, with respect thereto.

[signature page follows]

 - 4 - 

 

     IN WITNESS WHEREOF, the undersigned have executed this Agreement as of the date first above
written.

	 	 	 	 	 	 	 

	 	 	OASIS PETROLEUM INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 	 	OAS HOLDING COMPANY LLC	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 

	 	 

Signature Pageex4-1.htm

Exhibit 4.1

 

FIRST SUPPLEMENTAL INDENTURE

 

This FIRST SUPPLEMENTAL INDENTURE (this “First Supplemental Indenture”) is dated as of May 17, 2010, among FLAGSTONE REINSURANCE HOLDINGS, S.A., a Luxembourg company (the “Successor Company”) (as successor to FLAGSTONE REINSURANCE HOLDINGS LIMITED, a Bermuda company (the “Company”), the Company and THE BANK OF NEW YORK MELLON TRUST COMPANY, NATIONAL ASSOCIATION, successor in interest to JPMORGAN CHASE BANK, NATIONAL ASSOCIATION, as trustee under the Indenture referred to below (the “Trustee”).

 

W I T N E S S E T H :

 

WHEREAS, the Company and the Trustee have entered into an indenture (the “Indenture”) dated as of August 23, 2006;

 

WHEREAS, the Company and the Successor Company wish to enter into this First Supplemental Indenture in connection with the change of the name and place of incorporation of the Company to that of the Successor Company and the continuance of the Company as the Successor Company through a redomestication (collectively, the “Redomestication”);

 

WHEREAS, Section 8.1 of the Indenture provides, in part, that the Company may transfer all or substantially all of its properties and assets as an entirety to another Person provided that (a) (i) the Successor Company is an entity organized and existing under the laws of any country which is a member state of the Organization for Economic Cooperation and Development and (ii) the Successor Company expressly assumes, by an indenture supplement executed and delivered to the Trustees, the due and punctual payment of the principal of and any premium and interest on all the Securities and the performance of every covenant of the Indenture on the part of the Company to be performed or observed; (b) no Event of Default, and no event that, after notice or lapse of time, or both, would constitute an Event of Default, shall have happened and be continuing; and (c) an Officers’ Certificate and an Opinion of Counsel have been delivered to the Trustee, each stating that such transfer and the supplemental indenture comply with Article VIII of the Indenture;

 

WHEREAS, Section 9.1(a) of the Indenture provides that the Company and the Trustee may amend the Indenture without notice or consent of any Holder to evidence the succession of another Person to the Company;

 

WHEREAS, the Company, pursuant to Section 8.1 and Section 9.3 of the Indenture and in accordance with Section 1.2 of the Indenture, has delivered to the Trustee, or caused to be delivered to the Trustee on its behalf, an Opinion of Counsel and an Officers’ Certificate, dated as of the date hereof, stating (a) that the Redomestication and this First Supplemental Indenture each comply with Article VIII of the Indenture, (b) that all conditions precedent provided for in the Indenture relating to the Redomestication have been complied with and (c) that the execution of this Supplemental Indenture is authorized or permitted by the Indenture and all conditions precedent provided for in the Indenture relating thereto have been complied with.

 

 

 

  

  

  

 

 

WHEREAS, all things necessary to authorize the assumption by the Successor Company of the Company’s obligations under the Indenture and to make this First Supplemental Indenture when executed by the parties hereto a valid and binding amendment of and supplement to the Indenture have been done and performed.

 

NOW THEREFORE, in consideration of the foregoing and for other good and valuable consideration, the receipt of which is hereby acknowledged, the parties hereto mutually covenant and agree as follows:

 

1.           Definitions.  Capitalized terms used herein and not defined herein have the meanings ascribed to such terms in the Indenture.

 

2.           Assumption of Obligations.  The Successor Company hereby expressly assumes, from and after the date hereof, all of the obligations of the Company under the Indenture and the Securities.

 

3.           Succession and Substitution.  The Successor Company, from and after the date hereof, by virtue of the aforesaid assumption and the delivery of this First Supplemental Indenture, shall succeed to, and be substituted for, the Company under the Indenture and the Securities.

 

4.           Effectiveness and Operativeness.  This First Supplemental Indenture shall be deemed to have become effective, and the provisions provided for in this First Supplemental Indenture shall be deemed to have become operative as of the date hereof.

 

5.           Ratification of Indenture.  Except as expressly amended hereby, the Indenture is in all respects ratified and confirmed and all the terms, conditions and provisions thereof shall remain in full force and effect.  This First Supplemental Indenture shall form a part of the Indenture for all purposes, and every Holder of Securities heretofore or hereafter authenticated and delivered shall be bound hereby.

 

6.           Governing Law.  THIS FIRST SUPPLEMENTAL INDENTURE SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

 

7.           Trustee Makes No Representation.  The Trustee makes no representation as to the validity or sufficiency of this First Supplemental Indenture.  The recitals contained herein shall be taken as the statements of the Company and the Successor Company and the Trustee assumes no responsibility for their correctness.

 

 

 

  

2

  

 

 

8.           Counterparts.  The parties hereto may sign any number of copies of this First Supplemental Indenture.  Each signed copy shall be an original, but all of them together represent the same agreement.

 

9.           Effect of Headings.  The Section headings herein are for convenience only and shall not effect the construction thereof.

 

 

 

 

 

 

 

 

 

 

 

 

 

  

3

  

 

 

IN WITNESS WHEREOF, the parties hereto have caused this First Supplemental Indenture to be duly executed as of the date first above written.

 

 

	 	FLAGSTONE REINSURANCE HOLDINGS LIMITED 	 
	 	 	 	 
	
 

	
By: 

	 /s/ William F. Fawcett	 
	 	 	Name:  	William F. Fawcett	 
	 	 	Title:  	General Counsel and Corporate Secretary	 
	 	 	 	 

 

 

	 	FLAGSTONE REINSURANCE HOLDINGS, S.A.	 
	 	 	 	 
	
 

	
By: 

	 /s/ William F. Fawcett	 
	 	 	Name:  	William F. Fawcett	 
	 	 	Title:  	General Counsel and Corporate Secretary	 
	 

 

 

 

 

 

 

 

 

 

 

  

Flagstone First Supplemental Indenture

  

 

IN WITNESS WHEREOF, the parties hereto have caused this First Supplemental Indenture to be duly executed as of the date first above written.

 

 

	 	THE BANK OF NEW YORK MELLON TRUST COMPANY, NATIONAL ASSOCIATION, not in its individual capacity but solely as Trustee	 
	 	 	 	 
	
 

	
By: 

	 /s/ Bill Marshall	 
	 	 	Name:  	Bill Marshall	 
	 	 	Title:  	Vice President	 
	 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Flagstone First Supplemental Indenture

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00173-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00173-of-00352.parquet"}]]