Document:

Exhibit 102 - Credit Facility Amend No12

		
			Exhibit 10.2
		

		
			AGREEMENT AND AMENDMENT NO. 12
		

		
			 
		

		
			This AGREEMENT AND AMENDMENT NO. 12 ("Agreement") dated as of September 30, 2015 ("Effective Date"), is among Alta Mesa Holdings, LP, a Texas limited partnership (the "Borrower"), the affiliates of the Borrower party hereto (the "Guarantors"), the Lenders (as defined below), and Wells Fargo Bank, N.A., as administrative agent for such Lenders (in such capacity, the "Administrative Agent") and as issuing lender (in such capacity, the "Issuing Lender").
		

		
			 
		

		
			RECITALS
		

		
			 
		

		
			A.Reference is made to that certain Sixth Amended and Restated Credit Agreement dated as of May 13, 2010, among the Borrower, the lenders party thereto from time to time (the "Lenders"), the Administrative Agent, and the Issuing Lender, as heretofore amended (as so amended, the "Credit Agreement").
		

		
			B.The parties hereto wish to, subject to the terms and conditions of this Agreement, (i) permit the sale by the Borrower of all the Equity Interest issued by Alta Mesa Eagle, LLC, a Texas limited liability company ("AM Eagle"), a wholly owned Restricted Subsidiary, to the Purchasers (as defined below) and (ii) as a result of the AM Eagle Sale (as defined below),  (w) release AM Eagle from its Guaranty obligations, (x)  release all assets of AM Eagle from the Liens granted to the Administrative Agent under the Security Instruments, (y) release the Equity Interest of AM Eagle pledged under the Security Instruments by any other grantor thereunder, and (z)  redetermine and decrease the Borrowing Base.
		

		
			NOW THEREFORE, in consideration of the benefits to be derived by the parties hereto and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:
		

		
			Section 1.Defined Terms; Other Provisions.  As used in this Agreement, each of the terms defined in the opening paragraph and the Recitals above shall have the meanings assigned to such terms therein.  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.  Article, Section, Schedule, and Exhibit references are to Articles and Sections of and Schedules and Exhibits to this Agreement, 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 2.Agreement – Borrowing Base Redetermination and Decrease.  Subject to the terms of this Agreement, as of October 1, 2015, the Borrowing Base shall be decreased to $255,000,000.  Such new Borrowing Base shall remain in effect at that level until the effective date of the next Borrowing Base redetermination made in accordance with Section 2.02 of the Credit Agreement, as amended hereby.  The Borrower and the Lenders hereby acknowledge and agree that the redetermination and decrease of the Borrowing Base set forth in this Section 2 is the reduction in the Borrowing Base required under Section 2.02€(iii) of the Credit Agreement, as amended hereby, as a result of the AM Eagle Sale. Each Lender’s Pro Rata Share of the redetermined Borrowing Base, after giving effect to the redetermination and decrease of the Borrowing Base set forth in this Section 2, is set forth in Schedule II to the Credit Agreement, as amended hereby. 
		

		 

 

		
			Section 3.Amendments to Credit Agreement.  
		

			
	
			
				 (a)
			Section 1.01 (Certain Defined Terms) of the Credit Agreement is hereby amended by adding the following new defined terms to appear where alphabetically appropriate:

		
			"Amendment No. 12" means that certain Agreement and Amendment No. 12 by the Borrower, certain Guarantors and the Required Lenders which amends this Agreement.
		

		
			 
		

		
			"Amendment No. 12 Effective Date" means September 30, 2015.
		

		
			 
		

		
			“AM Eagle Buyer” means EnerVest Energy Institutional Fund XIV-A, L.P. and EnerVest Energy Institutional Fund XIV-WIC, L.P., and any assignees thereof permitted pursuant to the AM Eagle PSA.
		

		
			 
		

		
			“AM Eagle PSA” means that certain Purchase and Sale Agreement dated as of September 16, 2015 among the Borrower, Alta Mesa Eagle, LLC and the AM Eagle Buyer, as amended, supplemented or otherwise modified to the extent not materially adverse to the interest of any Secured Party.
		

		
			 
		

		
			“AM Eagle Sale” means the sale of 100% of the Equity Interests outstanding and issued by Alta Mesa Eagle, LLC pursuant to the terms of the AM Eagle PSA.  
		

		
			 
		

			
	
			
				 (b)
			Section 2.02(e) (Mandatory Reductions in the Borrowing Base) of the Credit Agreement is hereby amended by replacing clause (iii) in its entirety with the following:

		
			(iii)Effective immediately upon the occurrence of a Triggering Event, the Borrowing Base shall automatically reduce on the date such Triggering Event is effected by an amount equal to (A) in the case of a Disposition of Oil and Gas Properties (or any Restricted Subsidiary that owns Oil and Gas Properties), the value, if any, assigned such Oil and Gas Properties under the then effective Borrowing Base, as reasonably determined by the Administrative Agent, and (B) in the case of a hedge position or Hedge Contract that has been novated, assigned, unwound, terminated, or amended, the value, if any, assigned such hedge position or Hedge Contract under the then effective Borrowing Base, as reasonably determined by the Administrative Agent.  The reduction of the Borrowing Base pursuant to this clause (iii) resulting from the AM Eagle Sale is reflected in the reduction in the Borrowing Base set forth in Section 2 of Amendment No. 12.
		

		
			 
		

			
	
			
				 (c)
			Section 6.04(b) (Merger or Consolidation; Asset Sales; Hedge Terminations) of the Credit Agreement is here by amended by deleting the word "and" at the end of clause (iv), replacing the "." at the end of clause (v) with "; and", and inserting the following new clause (vi) in the appropriate numerical order therein:

		
			(vi)  if no Event of Default then exists or would result therefrom, the AM Eagle Sale for an aggregate purchase price of not less than $125,000,000 (subject to adjustment as provided in the AM Eagle PSA);  provided that (A) the Borrower shall have made, or substantially concurrently with the closing of the AM Eagle PSA make,  the payments, if any, required under Section 2.05(b)(iii) resulting from any Borrowing Base Deficiency arising as a result of the reduction in the Borrowing Base set forth in Section 2 of Amendment No. 12, and (B) if any Net Cash Proceeds from the AM Eagle Sale exists after making the payments, if any, required under the preceding clause (A), then the Borrower shall have applied, or substantially concurrently with the closing of the AM Eagle PSA 
		

		 

		

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		apply, 100% of such remaining Net Cash Proceeds as an optional prepayment of then outstanding Advances.
		

		
			 
		

			
	
			
				 (d)
			Schedule II  (Commitments;  Borrowing Base; Pro Rata Share) to the Credit Agreement is hereby replaced in its entirety with Schedule II  (Commitments;  Borrowing Base; Pro Rata Share) attached hereto.

		
			Section 4.Representations and Warranties.  Each of the Guarantors (other than AM Eagle) and the Borrower hereby represents and warrants that: (a) after giving effect to this Agreement, the representations and warranties contained in the Credit Agreement, as amended hereby, and the representations and warranties contained in the other Loan Documents are true and correct in all material respects (except that such materiality qualifier shall not be applicable to any representation or warranty that already is qualified or modified by materiality in the text thereof) on and as of the Effective Date as if made on 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 (except that such materiality qualifier shall not be applicable to any representation or warranty that already is qualified or modified by materiality in the text thereof) as of such earlier date; (b) no Default has occurred which is continuing; (c) the execution, delivery and performance of this Agreement are within the corporate, limited liability company, or partnership power and authority of such Person and have been duly authorized by appropriate corporate and governing action and proceedings; (d) this Agreement constitutes the legal, valid, and binding obligation of such Person 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) except as released pursuant to Section 8 below, the Liens under the Security Instruments are valid and subsisting and secure the Borrower's and the Guarantors' obligations under the Loan Documents.
		

		
			Section 5.Conditions to Effectiveness.  This Agreement shall become effective on the Effective Date and enforceable against the parties hereto 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 Borrower, the Guarantors (other than AM Eagle) and the Required Lenders;
		

		
			(b)the Administrative Agent shall have received  a true, correct, and complete copy, certified as such by the Borrower, of the AM Eagle PSA;
		

		
			(c)the AM Eagle Sale shall have been consummated substantially concurrently with the closing of this Agreement; 
		

		
			(d)the representations and warranties in this Agreement made by the Guarantors and the Borrower shall be true and correct in all material respects; and
		

		
			(e)the Borrower shall have paid all reasonable fees and expenses of the Administrative Agent's outside legal counsel and other consultants pursuant to all invoices presented for payment on or prior to the Effective Date.
		

		
			Section 6.Acknowledgments and Agreements.
		

		 

		

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			(a)The Borrower and each Guarantor acknowledges that on the date hereof all outstanding Obligations are payable in accordance with their terms and the Borrower and each Guarantor hereby waives any defense, offset, counterclaim or recoupment with respect thereto.
		

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

		
			(c)Each of the parties hereto 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, except as set forth in Section 8 below with regard to AM Eagle, the Borrower and the Guarantors acknowledge and agree that their respective liabilities and obligations under the Credit Agreement, as amended hereby, the Security Agreement, and the Guaranties, are not impaired in any respect by this Agreement.
		

		
			(d)From and after the Effective Date, all references to the Credit Agreement and the Loan Documents shall mean such Credit Agreement and such Loan Documents as amended by this Agreement.
		

		
			(e)This Agreement is a Loan Document for the purposes of the provisions of the other Loan 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 7.Reaffirmation of the Guaranty.  Each Guarantor (other than AM Eagle) hereby ratifies, confirms, acknowledges and agrees that its obligations under its respective Guaranty are in full force and effect and that such Guarantor continues to unconditionally and irrevocably guarantee the full and punctual payment, when due, whether at stated maturity or earlier by acceleration or otherwise, of all of the Guaranteed Obligations (as defined in the Guaranties), as such Guaranteed Obligations may have been amended by this Agreement, and its execution and delivery of this Agreement does not indicate or establish an approval or consent requirement by such Guarantor under its respective Guaranty in connection with the execution and delivery of amendments, consents or waivers to the Credit Agreement, the Notes or any of the other Loan Documents.
		

		
			Section 8. Guaranty and Lien Releases.  Effective as of the Effective Date and concurrently with the consummation of the AM Eagle Sale: (a) the obligations of AM Eagle under its respective Guaranty and under each other Loan Document to which it is a party are hereby released, terminated and no longer of any force and effect and AM Eagle shall no longer be a "Guarantor", a "Grantor", a “Debtor” or a  “Mortgagor” thereunder and (b) all assets of AM Eagle which constitute Collateral and all Equity Interests issued by AM Eagle which constitute Collateral are hereby released from the Liens created under the Security Instruments.  The Administrative Agent shall, upon the reasonable request of the Borrower and at the sole cost and expense of the Borrower, execute and deliver such UCC-3 termination statements, releases of security interests, releases of liens and other instruments, in each case in proper form of recording, as the Borrower shall reasonably request to evidence the release expressly contemplated herein.  It is understood and agreed that the releases provided in this Section 8 (i) are expressly made conditioned upon the consummation of the AM Eagle Sale, (ii) shall not release any Guarantor other than AM Eagle as expressly provided above, and (iii) as to the Liens created under the Security Instruments, are partial releases only which are expressly limited to the assets described above in this Section 8 and shall not release any other assets of any other Loan Party from the Liens created under the Loan Documents.  Each Loan Party (other 
		

		 

		

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		than AM Eagle), hereby acknowledges and agrees that all obligations (contingent or otherwise) associated with all indemnity provisions under the Credit Agreement and the other Loan Documents as they relate to AM Eagle, any of AM Eagle’s liabilities or obligations under the Guaranty or any Security Instrument (including any Mortgage), or any of AM Eagle’s Properties that by their terms survive the release of AM Eagle as a “Guarantor”, a “Grantor”, a “Debtor” or a “Mortgagor” under any Loan Document shall be assumed as obligations by such other Loan Parties (save and except AM Eagle, its Properties, and as to the membership interests of AM Eagle, all of which are completely released pursuant to the provisions above), and such obligations are hereby ratified and assumed by the Loan Parties (other than AM Eagle) and shall continue in favor of the Administrative Agent and the other Persons expressly set forth in such Loan Documents.  
		

		
			Section 9.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 or other similar electronic means and all such signatures shall be effective as originals.
		

		
			Section 10.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 11.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 12.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 Texas.
		

		
			Section 13.Entire Agreement.  This Agreement, the Credit Agreement, as amended by this Agreement, the Notes, and the other Loan 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.
		

		
			 
		

		
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		EXECUTED effective as of the date first above written.
		

		
			 
		

			
					
						 

					
					
						 

				
	
					
						BORROWER:

					
					
						ALTA MESA HOLDINGS, LP

				
	
					
						 

					
					
						By: Alta Mesa Holdings GP, LLC, its general partner

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						By:  /s/ Michael McCabe 

				
	
					
						 

					
					
						Michael McCabe

				
	
					
						 

					
					
						Chief Financial Officer

				

		
			 
		

		
			 
		

			
					
						 

					
					
						 

				
	
					
						GUARANTORS: 

					
					
						ALABAMA ENERGY RESOURCES LLC

				
	
					
						 

					
					
						AMH ENERGY NEW MEXICO, LLC

				
	
					
						 

					
					
						AM IDAHO LLC

				
	
					
						 

					
					
						AM MICHIGAN LLC 

				
	
					
						 

					
					
						TEA ENERGY SERVICES LLC

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						Each By:  /s/ Michael A. McCabe 

				
	
					
						 

					
					
						Michael A. McCabe

				
	
					
						 

					
					
						Chief Financial Officer and Secretary

				

		
			 
		

			
					
						 

					
					
						 

				
	
					
						 

					
					
						ALTA MESA ENERGY LLC

				
	
					
						 

					
					
						ALTA MESA FINANCE SERVICES CORP.

				
	
					
						 

					
					
						ALTA MESA HOLDINGS GP, LLC 

				
	
					
						 

					
					
						ALTA MESA GP, LLC

				
	
					
						 

					
					
						ARI DEVELOPMENT, LLC

				
	
					
						 

					
					
						ALTA MESA ACQUISITIONS SUB, LLC

				
	
					
						 

					
					
						CAIRN ENERGY USA, LLC

				
	
					
						 

					
					
						LOUISIANA ONSHORE PROPERTIES LLC

				
	
					
						 

					
					
						PETRO OPERATING COMPANY HOLDINGS, INC

				
	
					
						 

					
					
						THE MERIDIAN PRODUCTION, LLC

				
	
					
						 

					
					
						THE MERIDIAN RESOURCE, LLC

				
	
					
						 

					
					
						THE MERIDIAN RESOURCE & EXPLORATION LLC

				
	
					
						 

					
					
						TMR DRILLING, LLC

				
	
					
						 

					
					
						VIRGINIA OIL AND GAS, LLC

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						Each By:  /s/ Michael A. McCabe 

				
	
					
						 

					
					
						Michael A. McCabe

				
	
					
						 

					
					
						Chief Financial Officer

				

		
			 
		

		
			
		

		
			 
		

		
			
		
		
 

		

			 

		

 

		

		
			
					
						 

					
					
						ALTA MESA RESOURCES, LP 

				
	
					
						 

					
					
						By:      Alta Mesa Resources GP, LLC

				
	
					
						 

					
					
						its sole General Partner

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						By:  /s/ Michael A. McCabe 

				
	
					
						 

					
					
						Michael A. McCabe

				
	
					
						 

					
					
						            Chief Financial Officer

				

		
			 
		

		
			 
		

			
					
						 

					
					
						 

				
	
					
						 

					
					
						ALTA MESA SERVICES, LP

				
	
					
						 

					
					
						ARANSAS RESOURCES, LP

				
	
					
						 

					
					
						BUCKEYE PRODUCTION COMPANY, LP

				
	
					
						 

					
					
						GALVESTON BAY RESOURCES, LP

				
	
					
						 

					
					
						LOUISIANA EXPLORATION & ACQUISITIONS, LP

				
	
					
						 

					
					
						NAVASOTA RESOURCES, LTD., LLP

				
	
					
						 

					
					
						NUECES RESOURCES, LP

				
	
					
						 

					
					
						OKLAHOMA ENERGY ACQUISITIONS, LP

				
	
					
						 

					
					
						PETRO ACQUISITIONS, LP

				
	
					
						 

					
					
						PETRO OPERATING COMPANY, LP

				
	
					
						 

					
					
						TEXAS ENERGY ACQUISITIONS, LP

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						Each by: Alta Mesa GP, LLC, its sole general partner

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						By:  /s/ Michael A. McCabe 

				
	
					
						 

					
					
						Michael A. McCabe

				
	
					
						 

					
					
						Chief Financial Officer

				

		
			 
		

			
					
						 

					
					
						 

				
	
					
						 

					
					
						GALVESTON BAY RESOURCES HOLDINGS, LP

				
	
					
						 

					
					
						By: Galveston Bay Resources Holdings, GP, LLC

				
	
					
						 

					
					
						  its sole general partner

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						By:  /s/ Michael A. McCabe 

				
	
					
						 

					
					
						Michael A. McCabe

				
	
					
						 

					
					
						Chief Financial Officer

				

		
			 
		

			
					
						 

					
					
						 

				
	
					
						 

					
					
						PETRO ACQUISITIONS HOLDINGS LP,

				
	
					
						 

					
					
						By: Petro Acquisitions Holdings GP, LLC, 

				
	
					
						 

					
					
						its sole general partner

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						By:  /s/ Michael A. McCabe

				
	
					
						 

					
					
						Michael A. McCabe

				
	
					
						 

					
					
						Chief Financial Officer

				

		
			 
		

		

		

		 

		

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						ADMINISTRATIVE AGENT/

					
					
						WELLS FARGO BANK, N.A. 

				
	
					
						ISSUING LENDER:

					
					
						 

				
	
					
						 

					
					
						By:  /s/ Michael Real

				
	
					
						 

					
					
						Name: Michael Real

				
	
					
						 

					
					
						Title: Director

				

		
			 
		

		

		

		 

		

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						LENDER: 

					
					
						MUFG UNION BANK, N.A. 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						By:  /s/ David Helffrich

				
	
					
						 

					
					
						Name: David Helffrich

				
	
					
						 

					
					
						Title: Vice President

				

		
			 
		

		

		

		 

		

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						LENDER: 

					
					
						TORONTO DOMINION (NEW YORK) LLC 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						By:  /s/ Rayan Karim

				
	
					
						 

					
					
						Name: Rayan Karim

				
	
					
						 

					
					
						Title: Authorized Signatory

				

		
			 
		

		

		

		 

		

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						LENDER: 

					
					
						ING CAPITAL LLC 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						By:  /s/ Josh Strong

				
	
					
						 

					
					
						Name: Josh Strong

				
	
					
						 

					
					
						Title: Director

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						By:  /s/ Scott Lamoreaux

				
	
					
						 

					
					
						Name: Scott Lamoreaux

				
	
					
						 

					
					
						Title: Director

				

		
			 
		

		

		

		 

		

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						LENDER: 

					
					
						CITIBANK, N.A. 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						By:  /s/ Thomas Benavides

				
	
					
						 

					
					
						Name: Thomas Benavides

				
	
					
						 

					
					
						Title: Director

				

		
			 
		

		

		

		 

		

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						 Mi

					
					
						 

				
	
					
						LENDER: 

					
					
						CAPITAL ONE, NATIONAL ASSOCIATION 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						By:  /s/ Michael Higgins

				
	
					
						 

					
					
						Name: Michael Higgins

				
	
					
						 

					
					
						Title: Director

				

		
			 
		

		

		

		 

		

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						LENDER: 

					
					
						BOKF, NA dba Bank of Texas 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						By:  /s/ Martin W. Wilson

				
	
					
						 

					
					
						Name: Martin W. Wilson

				
	
					
						 

					
					
						Title: Senior Vice President

				

		
			 
		

		

		

		 

		

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						LENDER: 

					
					
						AMEGY BANK NATIONAL ASSOCIATION

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						By:  /s/ Mark A. Serice

				
	
					
						 

					
					
						Name: Mark A. Serice

				
	
					
						 

					
					
						Title: Senior Vice President

				

		
			 
		

		

		

		 

		

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						LENDER: 

					
					
						NATIXIS, NEW YORK BRANCH

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						By:  /s/ Stuart Murray

				
	
					
						 

					
					
						Name: Stuart Murray

				
	
					
						 

					
					
						Title: Managing Director

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						By:  /s/ Vikram Nath

				
	
					
						 

					
					
						Name: Vikram Nath

				
	
					
						 

					
					
						Title: Vice President

				

		
			 
		

		

		

		 

		

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						  H

					
					
						 

				
	
					
						LENDER: 

					
					
						MORGAN STANLEY BANK, N.A.

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						By:  /s/ H. Brett Humphreys

				
	
					
						 

					
					
						Name: H. Brett Humphreys

				
	
					
						 

					
					
						Title: Authorized Signatory

				

		
			 
		

		 

		

			12ASSET PURCHASE
AGREEMENT

Between

XON
Energy Resources, Inc., a Texas corporation
“Buyer”

-
and -

XON
Resources USA, LLC, a Delaware limited liability company “Seller”

THIS
ASSET PURCHASE AGREEMENT
(Agreement) is made
and entered into
as of the 21th day of July,
2015 between XON Energy Resources, Inc., a Texas corporation, (“Buyer”)
and XON Resources USA, LLC, a Delaware limited liability company (“Seller”).

WHEREAS,
Seller owns various
assets and rights
that it is
willing to sell
and transfer to Buyer,
including, specifically, Seller’s
rights and obligations
under those oil
and gas leases
by and among Seller and Betty L. Wilbur dated July 29, 2014; Seller and Betty L. Wilbur dated
July 29, 2014; Seller
and Betty L.
Wilbur dated July
29, 2014; and
Seller and Donna White
Merkel dated October 17,
2014 (collectively, the “Leases”),
and Buyer desires to
purchase those assets and rights,
all on the terms and conditions set forth in this Agreement.

NOW,
THEREFORE, the parties hereto, each in consideration of the payments and the
representations, warranties, covenants, and agreements of the other provided for or contained
herein, do hereby agree as follows:

1.                        
Closing: The closing date (the “Closing Date”) shall occur on such date as
the parties hereto shall mutually agree; provided, however, that the Closing Date shall not occur
later than July 24, 2016

 

2.                        
Transaction: Subject to the terms and conditions of this Agreement, on the
Closing Date, the
Seller shall sell,
transfer, convey,
assign and deliver
to Buyer,
and the Buyer shall purchase, acquire,
and accept from the Seller, all of its assets (the “Transferred Assets”)(the
“Transaction”). Notwithstanding the foregoing, the Buyer shall not assume any liabilities
or obligations of the Sellers and nothing herein shall be construed as imposing any liability
or obligation upon the Buyer, including, but not limited to, those specifically
provided herein:

 

		a.	All liabilities for trade accounts payable and loan and notes
payable;

 

		b.	Any liability to Seller's customers incurred by Seller in the
Ordinary Course of Business within one (1) year of the Closing Date:

 

		c.	Any liability arising
out of or
relating to products
or services of
Seller to the extent manufactured or sold prior to the Closing
Date;

  

		d.	Any liability
arising under any
contract that arises
after the Closing
Date but that arises or relates to any breach of such contract prior to closing;

  

 

1

 

		e.	Any liability
for taxes resulting
from the operation
of the business
or the sale of the business; and

 

 

		f.	Any environmental, health and safety liabilities arising out of or relating
to the operation of Seller's business or Seller's leasing, ownership or operation
of real property.

 

3.                 
Purchase Price: In
consideration for the
sale described in
paragraph two (2) above,
and assuming that
all conditions precedent
have been satisfied,
on the Closing
Date, Buyer shall pay
to Sellers the
purchase price (“Purchase
Price”) of eight
million (8,000,000) shares of
its common stock. At
closing, the Buyer
shall deliver to
Seller, or its
nominee, one or more
stock power(s) evidencing
the Purchase Price
(by way of the
Buyer's listing of Shareholders in its Company Legend of Registered Share issuances).

 

4.                 
Conditions Precedent: Buyer’s obligation to pay the Purchase Price and to
take such other actions as may be necessary to consummate the transaction contemplated hereunder
is subject to satisfaction
of each of
the following conditions
precedent on or
before the Closing Date:

 

		a.	Buyer shall be satisfied that Seller has the ability to transfer, sell and
assign complete interest the
Transferred Assets free
and clear of
any competing claims or other encumbrances
whatsoever;

		b.	Buyer shall have applied for all licenses, permits or other
governmental requirements necessary for operating the business, and having been granted
the same; and

 

Seller's
obligation to make the sale, assignment, transfer and conveyance described in Paragraph
two (2) above and to take such other action as may be necessary to consummate the Transaction
contemplated hereunder is subject to satisfaction of each of the following conditions
on or before the Closing Date:

 

		c.	Buyer shall have available for delivery to Seller the full amount of
the Purchase Price; and

		d.	Seller shall
have received such
evidence as it
may reasonably require
that Buyer has obtained all consents and approvals necessary to enable it to
consummate the Transaction.

 

		5.	Indemnification.

 

		a.	Each party
hereto shall bear
its own costs
and expenses with
respect to the negotiation and consummation
of the Transaction; provided, however, that should either party fail to negotiate in
good faith to effect the consummation of the
Transaction, such party
shall fully indemnify
the other for
all such costs and expenses.

  

 

2

 

		b.	Seller shall indemnify and hold harmless Buyer from and against any and
all debts, claims, liabilities, damages and obligations (and related costs and
expenses) arising out
of or in
any way related
to: (i) any
act, omission or misrepresentations
of Seller; or (ii) the Transferred Assets prior to the Closing
Date.

 

		c.	Buyer shall indemnify and hold harmless Seller from and against any and
all debts, claims, liabilities, damages and obligations (and related costs and
expenses) arising out
of or in
any way
related to: (i)
any act, omission
or misrepresentation of Buyer or any of Buyer’s officers, employees or agents;
or (ii) the Transferred Assets prior to the Closing Date.

 

 

6.                 
Due Diligence. Sellers
shall make available
to Buyer at
reasonable times upon reasonable
notice such of
its personnel and
files, records and
other documents as
Buyer shall reasonable require
in order to
confirm the representations
that have been
made by Sellers
with respect to the Transferred Assets and the assumptions upon which Buyer has based its
calculation of the Purchase
Price. In the
event that such
due diligence reveals
any material variation
from such representations and assumptions,
Buyer may elect
to: (i) terminate
its participation in
the Transaction without further
obligation to the
Sellers; or (ii)
propose an adjusted Purchase
Price and/or other modification to the Transaction that Sellers may accept or reject in its
sole discretion.

 

		7.	Seller's Representations and Warranties. Seller represents and warrants as follows:

 

a. 
Seller holds all licenses, permits, accreditations and authorizations required
to conduct the business as now conducted and Seller properly maintains all assets,

 

b. 
All inventories of Seller consist of a quality and quantity usable and salable
in the ordinary course of business;

 

		c.	Seller holds good and marketable title to the Transferred
Assets;

 

d. 
Seller has not
filed any federal,
state and local
tax returns to
be filed and
is not indebted to
any taxing authority
for failure to
pay any lawful
amounts due and owing thereon; and

 

e.   
Seller is, and
at all time
during the previous
five years, has
been in full compliance
with all laws
that are or
were applicable to
him or to
the conduct or operation of the Business
or the ownership of any of its assets, nor has  Seller received notice from any regulatory
authority that he is being investigated for any violation of the
same.

 

 

		8.	Buyer's Representations and Warranties. Buyer represents and warrants as follows:

 

a.
Buyer is
a duly qualified
to do business
and is in
good standing under
all applicable laws;

 

3

 

b. 
This Agreement constitutes the legal, valid
and binding obligation of Buyer, under
this Agreement;

 

		c.	There are no pending proceedings that have been commenced against
Buyer

 

		d.	Neither Buyer nor any of its representatives have incurred any obligation
or

 

e.   
No representation, warranty or other statements made by Buyer in this Agreement
or otherwise in connection with the transaction contemplated herein contains any untrue
statement or omits a statement or material fact necessary to make any such representation,
warranty or statement not misleading.

 

		9.	Termination. This Agreement, by notice given prior to the Closing Date, may be terminated
where:

 

		a.	There exists a material breach of this Agreement by either
party;

 

		b.	Where either party fails to satisfy a condition of paragraphs seven (7) or
eight

(8) herein;
and

 

		c.	By mutual consent of the parties.

 

10.             
Confidentiality. Unless otherwise agreed to by Buyer, Seller shall make
no public announcement or other disclosure in any way relating to this Transaction to any
person.

 

11.             
Entire Agreement: Modification. This Agreement supersedes all prior agreement
between the parties
with respect to
its subject matter
and constitutes a
complete and exhaustive statement
of the terms
of the agreement
between the parties
with respect to
its subject matter.
This Agreement may not be amended except by a written agreement executed by the parties.

 

12.             
Severability. If any provision of this Agreement is held invalid or unenforceable
by and court of competent jurisdiction, the other provisions of this Agreement will remain in
full force and effect.

 

13.             
Counterparts. This Agreement may be executed in one or more counterparts,
each of which
will be deemed
to be an
original copy of
this Agreement and
all of which,
when taken together, will be deemed to constitute one and the same agreement.

 

14.             
Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State
of Texas.

 

 

This space intentionally left
blank

 

 

4

 

 

 

 

 

 

Exhibit
"A"

 

List
of Xon Resources USA, LLC members converted to common shares to be issued
by Xon Energy Resources, Inc.

 

 

	Shareholder List	Number of Shares
	
         

        Huntley Andrews
	
         

        5,100,000

	Nancy & Scott Little	125,000
	Horace Thomas	40,000
	Gordon R. Flewelling	150,000
	Wellington Capital Management Inc.	638,000
	Jim Muir	12,000
	Robert Dodd	125,000
	Richard Cadoret	25,000
	Frank Commisso	100,000
	Roger Bernard	12,500
	John Stavinoha	20,000
	Patrick Stavinoha	20,000
	Les Andrews	25,000
	Brian Levy	6,750
	Bryan McLellan	20,000
	Karla Perrizo	80,000
	Charles Stavinoha	25,000
	Edward Makkreel	15,000
	Steve Bowskill	105,000
	Bonnie Fries	75,000
	Thomas Calder	100,000
	leon Caldwell	725,000
	Tyler Caldwell	50,000
	Chase Caldwell	50,000
	Stephen Belford,	30,000
	Mark & Robin Thiodeau	25,000
	Dan & Kristy Fraleigh	6,250
	Robin Whale	25,000
	Bryce Eagleson	25,000
	Sophie Stavinoha	20,000
	Sasha Lutz	25,000

  

 

6

 

 

	Angela Hao	45,000
	Jeff Schuetz	12,000
	Susan McLellan	25,000
	Nancy Kennedy	25,000
	Annie LaLande	25,000
	Ryan Combden	20,000
	John Felatead	10,000
	Terry Moore	12,500
	Alain Lewand	10,000
	Kurt C. Nichols 	15,000 
	TOTAL SHARES	8,000,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  7

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