Document:

Exhibit

Exhibit 10.3

SIXTH AMENDMENT
TO
CREDIT AGREEMENT
AND
FIRST AMENDMENT
TO
GUARANTY AND COLLATERAL AGREEMENT
DATED AS OF May 9, 2018
AMONG
VIPER ENERGY PARTNERS LP, 
AS BORROWER,
THE INITIAL GUARANTOR,
WELLS FARGO BANK, NATIONAL ASSOCIATION, 
AS ADMINISTRATIVE AGENT,
AND
THE LENDERS PARTY HERETO
	
					
	 
	 
	 
	 
	 

WELLS FARGO SECURITIES, LLC,
AS SOLE BOOK RUNNER AND SOLE LEAD ARRANGER

 CANADIAN IMPERIAL BANK OF COMMERCE, NEW YORK BRANCH AND
PNC BANK, NATIONAL ASSOCIATION,
AS CO-SYNDICATION AGENTS

        

SIXTH AMENDMENT TO CREDIT AGREEMENT AND FIRST AMENDMENT TO GUARANTY AND COLLATERAL AGREEMENT
THIS SIXTH AMENDMENT TO CREDIT AGREEMENT AND FIRST AMENDMENT TO GUARANTY AND COLLATERAL AGREEMENT (this “Amendment”) dated as of May 9, 2018, is among: VIPER ENERGY PARTNERS LP., a Delaware limited partnership (the “Borrower”); the Initial Guarantor; each of the Lenders, as such term is defined in  the Credit Agreement referred to below, party hereto; and WELLS FARGO BANK, NATIONAL ASSOCIATION (“Wells”), as administrative agent for the Lenders (in such capacity, together with its successors in such capacity, the “Administrative Agent”).
R E C I T A L S
A.    The Borrower, the Administrative Agent and the Lenders are parties to that certain Credit Agreement dated as of July 8, 2014, as amended by that certain First Amendment dated as of August 15, 2014, that certain Second Amendment dated as of May 22, 2015, that certain Third Amendment dated as of June 21, 2016, that certain Fourth Amendment dated as of October 28, 2016 and that certain Fifth Amendment dated as of November 28, 2017 (as such may be further amended, modified or supplemented, the “Credit Agreement”), pursuant to which the Lenders have made certain credit available to and on behalf of the Borrower.
B.    The Borrower, the Administrative Agent and the Initial Guarantor are parties to that certain Guaranty and Collateral Agreement dated as of July 8, 2014 (as such may be amended, modified or supplemented, the “Guaranty Agreement”).
C.    The Borrower has requested, and all of the Lenders have agreed, to amend certain provisions of the Credit Agreement and the Guaranty Agreement as set forth herein.
D.    Now, therefore, to induce the Administrative Agent and the Lenders to enter into this Amendment and 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 used herein but not otherwise defined herein has the meaning given such term in the Credit Agreement or the Guaranty Agreement, as applicable, in each case, as amended by this Amendment.  Unless otherwise indicated, all section references in this Amendment refer to sections of the Credit Agreement.
Section 2.    Amendments to Credit Agreement.

2.1    Amendments to Section 1.02.  Section 1.02 is hereby amended by amending or adding in the appropriate alphabetical order the following terms:

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“‘Agreement’ means this Credit Agreement, as amended by the First Amendment dated as of August 15, 2014, that certain Second Amendment dated as of May 22, 2015, that certain Third Amendment dated as of June 21, 2016, that certain Fourth Amendment dated as of October 28, 2016, that certain Fifth Amendment dated as of November 28, 2017, that certain Sixth Amendment to Credit Agreement and First Amendment to Guaranty and Collateral Agreement dated as of May 9, 2018, and as the same may be further amended, amended and restated, modified or supplemented from time to time.

‘Guaranty Agreement’ means that certain Guaranty and Collateral Agreement dated as of July 8, 2014 by the Borrower and the Initial Guarantor in favor of the Administrative Agent as the same may be amended, amended and restated, modified or supplemented from time to time.

‘Initial Guarantor LLC Agreement’ means the Second Amended and Restated Limited Liability Company Agreement dated as of May 9, 2018 of the Initial Guarantor, as the same may be amended, amended and restated, modified or supplemented from time to time.

‘Non-Voting Units’ means the Units of the Initial Guarantor held by a holder of Partnership Class B Units.

‘Partnership Class B Units’ has the meaning assigned to such term in the Initial Guarantor LLC Agreement.

‘Units’ has the meaning assigned to such term in the Initial Guarantor LLC Agreement.”

2.2    Amendment to Section 7.25.  Section 7.25 is hereby amended by deleting such Section in its entirety and replacing it with the following:
“Section 7.25    EEA Financial Institutions.  Neither the Borrower nor any of its Subsidiaries is an EEA Financial Institution.”

2.3    Amendment to Section 9.04(a).  Section 9.04(a) is hereby amended by deleting such Section in its entirety and replacing it with the following:
“(a)    Restricted Payments.  The Borrower will not, and will not permit any of the Restricted Subsidiaries to, declare or make, or agree to pay or make, directly or indirectly, any Restricted Payment, return any capital to its holders of Equity Interests or make any distribution of its Property to its Equity Interest holders without the prior approval of the Majority Lenders, except that (i) each of the Borrower and the Initial Guarantor may pay dividends and distributions to its Equity Holders, if and to the extent that (A) such dividend or distribution is paid within 60 days after the date of declaration thereof, (B) as of the date of such declaration, no Default, 

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Event of Default or Borrowing Base Deficiency existed, and (C) as of the date of such declaration, if such dividend or distribution had been made as of such date of declaration, after giving effect thereto, no Default, Event of Default or Borrowing Base Deficiency would have existed, (ii) the Borrower and the Restricted Subsidiaries may declare and pay dividends or distributions with respect to its Equity Interests payable solely in additional Equity Interests (other than Disqualified Capital Stock), (iii) any Restricted Subsidiary of the Borrower may declare and pay dividends or distributions to the Borrower or a Restricted Subsidiary, (iv) the Borrower and the Restricted Subsidiaries may make Restricted Payments pursuant to and in accordance with stock option plans or other benefit plans for management, employees, directors and consultants of the Borrower and its Subsidiaries, and (v) the Borrower may declare and pay dividends or distributions consisting of Equity Interests in Unrestricted Subsidiaries.”
2.4    Amendment to Section 9.15.  Section 9.15 is hereby amended by deleting such Section in its entirety and replacing it with the following:
“Section 9.15    Subsidiaries.  The Borrower will not, and will not permit any of the Restricted Subsidiaries to, create or acquire any additional Subsidiaries, unless the Borrower gives written notice to the Administrative Agent of such creation or acquisition and complies with Section 8.14(b), to the extent required thereby.  The Borrower shall not, and shall not permit any of the Restricted Subsidiaries to, sell, assign or otherwise dispose of any Equity Interests in any Restricted Subsidiary except (a) in compliance with Section 9.12(d), (e), (f), (g) or (h) or (b) the Initial Guarantor may issue Non-Voting Units.  The Borrower and the Restricted Subsidiaries shall have no Restricted Subsidiaries that are Foreign Subsidiaries.”

2.5    Amendment to Section 9.20.  Section 9.20 is hereby amended by deleting such Section in its entirety and replacing it with the following:
“Section 9.20    Control Agreements.  For each deposit or securities account that the Borrower or any other Loan Party maintains as of the Third Amendment Effective Date (other than payroll, withholding tax, escrow, trust fund and other fiduciary deposit accounts), the Borrower will, by no later than 60 days after the Third Amendment Effective Date, either (a) cause such account to be subject to a deposit account control agreement or securities account control agreement, as applicable, in form and substance reasonably satisfactory to the Administrative Agent naming the Administrative Agent as the secured party thereunder for the benefit of the Other Secured Persons, or (b) close such account and transfer any funds therein to an account that otherwise meets the requirements of this Section 9.20.  From and after the Third Amendment Effective Date, neither the Borrower nor any other Loan Party shall open, any deposit or securities account (other than payroll, withholding tax, escrow, trust fund and other fiduciary deposit accounts) unless such deposit or securities account is, or 30 days after being opened becomes, subject to a deposit account control agreement or securities account control agreement, as applicable, 

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in form and substance reasonably satisfactory to the Administrative Agent naming the Administrative Agent as the secured party thereunder for the benefit of the Other Secured Persons.  Each deposit account control agreement will provide that the depositary bank will comply with instructions originated by the Administrative Agent directing dispositions of funds in the deposit account without further consent by the applicable Loan Party.  Each securities account control agreement will provide that the securities intermediary will comply with entitlement orders originated by the Administrative Agent without further consent by the applicable Loan Party.  The Administrative Agent agrees that it shall not issue any such instructions or entitlement orders or otherwise exercise any control right granted under any such deposit account control agreement or securities account control agreement unless (a) an Event of Default of the type set forth in Sections 10.01(a), (b), (f), (g), (h), (i), or (j) has occurred or (b) the Notes and the Loans then outstanding have become due and payable in whole (and not merely in part), whether at the due date thereof, by acceleration or otherwise.”

2.6    Amendment to Section 10.01.  Section 10.01 is hereby amended by adding the following Section 10.01(n):
“(n)    if any Non-Voting Units shall be entitled to vote under the Initial Guarantor LLC Agreement.”

Section 3.    Amendments to Guaranty Agreement.
3.1    Amendment to Section 1.01(b) of the Guaranty Agreement.  Section 1.01(b) of the Guaranty Agreement is hereby amended by amending in the appropriate alphabetical order the following term:
“‘Agreement’ means this Guaranty and Collateral Agreement, as amended by that certain Sixth Amendment to Credit Agreement and First Amendment to Guaranty and Collateral Agreement dated as of May 9, 2018, as the same may be further amended, supplemented or otherwise modified from time to time.”

3.2    Amendment to Section 6.09(b)(i) of the Guaranty Agreement.  Section 6.09(b)(i) of the Guaranty Agreement is hereby amended by deleting such Section in its entirety and replacing it with the following:
“(i) unless otherwise permitted hereby, or such other securities or interests will be pledged hereunder, vote to enable, or take any other action to permit, any Issuer to issue any stock or other equity interests of any nature or to issue any other securities or interests convertible into or granting the right to purchase or exchange for any stock or other equity interests of any nature of any Issuer, provided that the Initial Guarantor may issue Non-Voting Units,”

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3.3    Amendment to Section 6.09(e) of the Guaranty Agreement.  Section 6.09(e) of the Guaranty Agreement is hereby amended by deleting such Section in its entirety and replacing it with the following:
“(e)    The Pledged Securities will at all times constitute not less than 100% of the capital stock or other equity interests of the Issuer thereof owned by any Grantor.  Each Grantor will not permit any Issuer of any of the Pledged Securities to issue any new shares (or other interests) of any class of capital stock or other equity interests of such Issuer without the prior written consent of the Administrative Agent unless (i) such stock or other interest will be pledged hereunder or (ii) such interest consists entirely of Non-Voting Units.”

3.4    Amendment to Schedule 2 of the Guaranty Agreement.  The Guaranty Agreement is hereby amended by deleting Schedule 2 thereto and replacing it with the attached Schedule 2.
Section 4.    Waiver.  The Borrower has informed the Administrative Agent that in connection with changing the tax status of the Borrower, the Initial Guarantor will issue Non-Voting Units to Diamondback Energy, Inc. or an Affiliate thereof (collectively, “Diamondback”).  Such Non-Voting Units will have economic rights but no voting rights.  In the absence of this Amendment, such issuance of Non-Voting Units by the Initial Guarantor to Diamondback would be prohibited by Section 9.15.  The Borrower has requested that the Majority Lenders waive the provisions of Section 9.15 and the Majority Lenders do hereby waive the provisions of Section 9.15 with respect to the issuance of Non-Voting Units by the Initial Guarantor to Diamondback.
Section 5.    Conditions Precedent.  This Amendment shall become effective on the date (such date, the “Amendment Effective Date”), when each of the following conditions is satisfied (or waived in accordance with Section 12.02):
5.1    The Administrative Agent shall have received from Lenders constituting the Majority Lenders, the Initial Guarantor and the Borrower, counterparts (in such number as may be requested by the Administrative Agent) of this Amendment signed on behalf of such Person.
5.2    The Administrative Agent and the Lenders shall have received all fees and other amounts due and payable on or prior to the date hereof, including, to the extent invoiced, reimbursement or payment of all documented out-of-pocket expenses required to be reimbursed or paid by the Borrower under the Credit Agreement.
5.3    No Default shall have occurred and be continuing as of the date hereof, after giving effect to the terms of this Amendment.
The Administrative Agent is hereby authorized and directed to declare this Amendment to be effective when it has received documents confirming or certifying, to the satisfaction of the Administrative Agent, compliance with the conditions set forth in this Section 5 or the waiver 

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of such conditions as permitted in Section 12.02.  Such declaration shall be final, conclusive and binding upon all parties to the Credit Agreement for all purposes.
Section 6.    Miscellaneous.
6.1    Confirmation.  The provisions of the Credit Agreement, as amended by this Amendment, shall remain in full force and effect following the effectiveness of this Amendment.
6.2    Ratification and Affirmation; Representations and Warranties.  Each of the Initial Guarantor and the Borrower hereby (a) ratifies and affirms its obligations under, and acknowledges its continued liability under, each Loan Document to which it is a party and agrees that each Loan Document to which it is a party remains in full force and effect as expressly amended hereby and (b) represents and warrants to the Lenders that as of the date hereof, after giving effect to the terms of this Amendment:
(i)    all of the representations and warranties contained in each Loan Document to which it is a party are true and correct, except to the extent any such representations and warranties are expressly limited to an earlier date, in which case such representations and warranties shall be true and correct as of such specified earlier date,
(ii)    no Default or Event of Default has occurred and is continuing, and
(iii)    no event or events have occurred which individually or in the aggregate could reasonably be expected to have a Material Adverse Effect.
6.3    Waiver.  Neither the execution by the Administrative Agent or the Lenders of this Amendment, nor any other act or omission by the Administrative Agent or the Lenders or their officers in connection herewith, shall be deemed a waiver by the Administrative Agent or the Lenders of any defaults that may exist or that may occur in the future under the Credit Agreement and/or the other Loan Documents other than the default waived pursuant to Section 4 hereof (collectively “Other Matters”).  Similarly, nothing contained in this Amendment shall directly or indirectly in any way whatsoever either: (a) impair, prejudice or otherwise adversely affect the Administrative Agent’s or the Lenders’ right at any time to exercise any right, privilege or remedy in connection with the Loan Documents with respect to any Other Matters, (b) other than as specifically set forth in this Amendment, amend or alter any provision of the Credit Agreement, the other Loan Documents, or any other contract or instrument, or (c) constitute any course of dealing or other basis for altering any obligation of the Borrower or any Guarantor or any right, privilege or remedy of the Administrative Agent or the Lenders under the Credit Agreement, the other Loan Documents, or any other contract or instrument.  Nothing in this Amendment shall be construed to be a consent by the Administrative Agent or the Lenders to any Other Matters.
6.4    Counterparts.  This 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 Amendment by facsimile 

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or electronic transmission shall be effective as delivery of a manually executed counterpart hereof.
6.5    NO ORAL AGREEMENT.  THIS 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 SUBSEQUENT UNWRITTEN ORAL AGREEMENTS OF THE PARTIES.  THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.
6.6    GOVERNING LAW.  THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF TEXAS.
6.7    Payment of Expenses.  In accordance with Section 12.03, the Borrower agrees to pay or reimburse the Administrative Agent for all of its reasonable out-of-pocket expenses incurred in connection with this Amendment, any other documents prepared in connection herewith and the transactions contemplated hereby, including, without limitation, the reasonable fees, charges and disbursements of counsel to the Administrative Agent.
6.8    Severability.  Any provision of this Amendment that 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.
6.9    Successors and Assigns.  This Amendment shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns.
6.10    Loan Document.  This Amendment is a Loan Document.

[SIGNATURES BEGIN NEXT PAGE]

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

	
		
	 
	VIPER ENERGY PARTNERS LP, as Borrower

	 
	By:   Viper Energy Partners GP LLC, its general partner

	 
	 

	 
	 

	 
	By:   /s/ Teresa L. Dick   

	 
	Name:   Teresa L. Dick

	 
	Title:   Chief Financial Officer

	 
	 

	 
	 

	
		
	 
	VIPER ENERGY PARTNERS LLC,
as Initial Guarantor

	 
	 

	 
	 

	 
	By:    /s/ Teresa L. Dick   

	 
	Name:   Teresa L. Dick

	 
	Title:   Chief Financial Officer

SIGNATURE PAGE
AMENDMENT TO CREDIT AGREEMENT AND GUARANTEE AND COLLATERAL AGREEMENT

        

	
		
	 
	WELLS FARGO BANK, NATIONAL ASSOCIATION,
as Administrative Agent and a Lender

	 
	By:    /s/ Matthew Persky   
   Name:   Matthew Persky
   Title:   Vice President

	 
	

SIGNATURE PAGE
AMENDMENT TO CREDIT AGREEMENT AND GUARANTEE AND COLLATERAL AGREEMENT

        

	
		
	 
	CANADIAN IMPERIAL BANK OF COMMERCE, NEW YORK BRANCH, as a Lender

	 
	By:     /s/ Donovan C. Broussard        
Name:    Donovan C. Broussard
Title:    Authorized Signatory

	 
	 

	 
	By:    /s/ Robert Long            
Name:    Robert Long
Title:    Authorized Signatory

SIGNATURE PAGE
AMENDMENT TO CREDIT AGREEMENT AND GUARANTEE AND COLLATERAL AGREEMENT

        

	
		
	 
	PNC BANK, NATIONAL ASSOCIATION,
as a Lender

	 
	By:     /s/ Sandra Salazar            
Name:    Sandra Salazar
Title:    Managing Director

SIGNATURE PAGE
AMENDMENT TO CREDIT AGREEMENT AND GUARANTEE AND COLLATERAL AGREEMENT

        

	
		
	 
	COMPASS BANK,
as a Lender

	 
	By:     /s/ Gabriela Azcarate            
Name:    Gabriela Azcarate
Title:    Vice President

SIGNATURE PAGE
AMENDMENT TO CREDIT AGREEMENT AND GUARANTEE AND COLLATERAL AGREEMENT

        

	
		
	 
	COMERICA BANK,
as a Lender

	 
	By:     /s/ Cassandra M. Lucas        
Name:    Cassandra M. Lucas
Title:    Portfolio Manager

SIGNATURE PAGE
AMENDMENT TO CREDIT AGREEMENT AND GUARANTEE AND COLLATERAL AGREEMENT

        

	
		
	 
	BRANCH BANKING AND TRUST COMPANY,
as a Lender

	 
	By:     /s/ Kelly Graham            
Name:    Kelly Graham
Title:    Vice President

SIGNATURE PAGE
AMENDMENT TO CREDIT AGREEMENT AND GUARANTEE AND COLLATERAL AGREEMENT

        

	
		
	 
	BOKF, NA, dba BANK OF OKLAHOMA,
as a Lender

	 
	By:     /s/ John Krenger            
Name:    John Krenger
Title:    Vice President

SIGNATURE PAGE
AMENDMENT TO CREDIT AGREEMENT AND GUARANTEE AND COLLATERAL AGREEMENT

        

	
		
	 
	CAPITAL ONE, N.A.,
as a Lender

	 
	By:     /s/ Lyle Levy Jr.            
Name:    Lyle Levy Jr.
Title:    Vice President

SIGNATURE PAGE
AMENDMENT TO CREDIT AGREEMENT AND GUARANTEE AND COLLATERAL AGREEMENT

        

	
		
	 
	CREDIT SUISSE AG, CAYMAN ISLANDS BRANCH, as a Lender

	 
	By:     /s/ William O’Daly            
Name:    William O’Daly
Title:    Authorized Signatory

	 
	 

	 
	By:     /s/ Sophie Bulliard            
Name:    Sophie Bulliard
Title:    Authorized Signatory

SIGNATURE PAGE
AMENDMENT TO CREDIT AGREEMENT AND GUARANTEE AND COLLATERAL AGREEMENT

        

	
		
	 
	THE BANK OF NOVA SCOTIA,
as a Lender

	 
	By:                        
Name:
Title:

SIGNATURE PAGE
AMENDMENT TO CREDIT AGREEMENT AND GUARANTEE AND COLLATERAL AGREEMENT

        

	
		
	 
	JPMORGAN CHASE BANK, N.A.,
as a Lender

	 
	By:     /s/ Kody J. Nerios            
Name:    Kody J. Nerios
Title:    Authorized Officer

SIGNATURE PAGE
AMENDMENT TO CREDIT AGREEMENT AND GUARANTEE AND COLLATERAL AGREEMENT

        

	
		
	 
	SUNTRUST BANK,
as a Lender

	 
	By:     /s/ Benjamin L. Brown        
Name:    Benjamin L. Brown
Title:    Director

SIGNATURE PAGE
AMENDMENT TO CREDIT AGREEMENT AND GUARANTEE AND COLLATERAL AGREEMENT

        

	
		
	 
	GOLDMAN SACHS BANK USA,
as a Lender

	 
	By:     /s/ Meghan Sullivan            
Name:    Meghan Sullivan
Title:    Authorized Signatory

SIGNATURE PAGE
AMENDMENT TO CREDIT AGREEMENT AND GUARANTEE AND COLLATERAL AGREEMENT

        

	
		
	 
	CITIBANK, N.A.,
as a Lender

	 
	By:     /s/ Jeff Ard                
Name:    Jeff Ard
Title:    Vice President

SIGNATURE PAGE
AMENDMENT TO CREDIT AGREEMENT AND GUARANTEE AND COLLATERAL AGREEMENT

        

	
		
	 
	BANK OF AMERICA, N.A.,
as a Lender

	 
	By:     /s/ Raza Jafferi            
Name:    Raza Jafferi
Title:    Director

SIGNATURE PAGE
AMENDMENT TO CREDIT AGREEMENT AND GUARANTEE AND COLLATERAL AGREEMENT

        

Schedule 2
DESCRIPTION OF PLEDGED SECURITIES
	
					
	Owner
	Issuer
	Class of Stock or Equity Interests
	No. of Shares or % of Ownership Interest
	Certificated/Certificate Number or Uncertificated

	Viper Energy Partners LP
	Viper Energy Partners LLC
	Common Units
	40,732,045 common units, which represent 35.77% of the economic interest and 100% of the voting power pursuant to the Initial Guarantor LLC Agreement*
	Uncertificated

*The remaining 64.23% economic interest is owned by Diamondback in the form of 73,150,000 common units, none of which have any voting rights pursuant to the Initial Guarantor LLC Agreement.

Schedule 2Exhibit

Exhibit 10.4

FIRST AMENDMENT TO RECAPITALIZATION AGREEMENT
This First Amendment to Recapitalization Agreement (this “First Amendment”), dated as of May 9, 2018 (the “Amendment Effective Date), is by and among Diamondback Energy, Inc., a Delaware corporation (the “Transferor”), Viper Energy Partners LLC, a Delaware limited liability company (the “Operating Company”), Viper Energy Partners GP LLC, a Delaware limited liability company (the “General Partner”), and Viper Energy Partners LP, a Delaware limited partnership (the “Partnership”). The Transferor, the Operating Company, the General Partner and the Partnership are hereinafter sometimes referred to individually as a “Party” and together as the “Parties.”
RECITALS
WHEREAS, the Parties previously entered into that certain Recapitalization Agreement, dated as of March 28, 2018 (the “Recapitalization Agreement”);
WHEREAS, the Parties desire to amend the Recapitalization Agreement as set forth herein; and
WHEREAS, capitalized terms used but not defined herein shall have the meanings assigned to such terms in the Recapitalization Agreement.
NOW, THEREFORE, in consideration of the foregoing and the respective representations, warranties, covenants and agreements set forth in the Recapitalization Agreement and this First Amendment, the Parties hereby agree as follows:
		
	1.
	Amendment to Section 1.1. Section 1.1 of the Recapitalization Agreement is hereby amended by adding the following definition:

“‘Additional Class B Consideration’ has the meaning set forth in Section 2.4.”
“‘GP Contribution’ has the meaning set forth in Section 2.5.”
		
	2.
	Add Section 2.4. The below text is hereby added to the Recapitalization Agreement as Section 2.4:

“Section 2.4    Additional Class B Consideration. Following the Closing and immediately after the effectiveness of the Partnership’s election to be treated as a corporation for U.S. federal income tax purposes, the Transferor will contribute $1,000,000 in cash (the “Additional Class B Consideration”) to the Partnership as additional consideration for receiving the Partnership Closing Consideration.”
		
	3.
	Add Section 2.5.  The below text is hereby added to the Recapitalization Agreement as Section 2.5:

“Section 2.5    GP Contribution. Following the Closing and immediately after the effectiveness of the Partnership’s election to be treated as a corporation for U.S. federal income tax purposes, the General Partner will contribute $1,000,000 in cash (the “GP Contribution”) to the Partnership as additional capital contribution related to its general partner interest in the Partnership.”
		
	4.
	Add Section 7.6. The below text is hereby added to the Recapitalization Agreement as Section 7.6:

“Section 7.6    Post-Closing Covenants.
(a)    If at any time after the Closing, any further action is necessary to carry out the purposes of this Agreement, each of the Parties will take such further action (including the execution and delivery of such further instruments and documents) as the other Party reasonably may request, all at the sole cost and expense of the requesting Party (unless the requesting Party is entitled to indemnification therefor).
(b)    In accordance with Section 2.4, the Transferor shall deliver the Additional Class B Consideration to the Partnership, and in accordance with Section 2.5, the General Partner shall deliver the GP Contribution to the Partnership, in each case, immediately after (and not before) the effectiveness of the Partnership’s election to be treated as a corporation for U.S. federal income tax purposes.
(c)    Subject to the determinations and approvals of the General Partner required in accordance with the Restated Partnership Agreement, the General Partner agrees to amend the Restated Partnership Agreement as set forth in the form attached hereto as “Exhibit A” effective on the date of the effectiveness of the Partnership’s election to be treated as a corporation for U.S. federal income tax purposes.”
		
	5.
	Effectiveness. This First Amendment shall become effective as of the Amendment Effective Date.

		
	6.
	Effect on Recapitalization Agreement. From and after the Amendment Effective Date, each reference in the Recapitalization Agreement to “this Agreement,” “hereunder,” “hereof,” “herein” or words of similar import, and each similar reference in any document related thereto, or executed in connection therewith, shall mean and be a reference to the Recapitalization Agreement as amended by this First Amendment, and the Recapitalization Agreement and this First Amendment shall be read together and construed as one single instrument.  This First Amendment is intended to amend the Recapitalization Agreement.  Except as specifically set forth herein, all other terms and conditions of the Recapitalization Agreement shall remain in full force and effect without modification.

		
	7.
	Binding Effect. This First Amendment shall be binding upon and inure to the benefit of each of the Parties hereto and each of their respective successors and permitted assigns.  Nothing in this First Amendment expressed or implied is intended or shall be construed to give any 

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rights to any person or entity other than the parties hereto and their successors and permitted assigns.
		
	8.
	Counterparts. This First Amendment may be executed in one or more counterparts, each of which will be deemed an original but all of which together will constitute one and the same instrument.

		
	9.
	Applicable Law. This First Amendment shall be construed in accordance with and governed by the laws of the State of Delaware, without regard to principles of conflicts of laws.

		
	10.
	Severability. Each clause or provision of this First Amendment shall be considered severable and if for any reason any clause or provision herein is determined to be invalid, unenforceable or illegal under any existing or future law, such invalidity, unenforceability or illegality shall not impair the operation of or affect those portions of this First Amendment that are valid, enforceable and legal.

		
	11.
	Ratification of Recapitalization Agreement. Except as expressly modified and amended herein, all of the terms and conditions of the Recapitalization Agreement shall remain in full force and effect.

[SIGNATURE PAGES FOLLOW]

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IN WITNESS WHEREOF, the Parties have caused this First Amendment to Recapitalization Agreement to be executed as of the date and year first above written.

	
		
	DIAMONDBACK ENERGY, INC.

	 
	 

	By:
	/s/ Teresa L. Dick

	Name:
	Teresa L. Dick

	Title:
	Executive Vice President and Chief Financial Officer

Signature Page to First Amendment to Recapitalization Agreement

	
		
	VIPER ENERGY PARTNERS LP, by Viper Energy Partners GP LLC, its general partner

	 
	 

	By:
	/s/ Teresa L. Dick

	Name:
	Teresa L. Dick

	Title:
	Executive Vice President and Chief Financial Officer

Signature Page to First Amendment to Recapitalization Agreement

	
		
	VIPER ENERGY PARTNERS GP LLC

	 
	 

	By:
	/s/ Teresa L. Dick

	Name:
	Teresa L. Dick

	Title:
	Executive Vice President and Chief Financial Officer

Signature Page to First Amendment to Recapitalization Agreement

	
		
	VIPER ENERGY PARTNERS LLC

	 
	 

	By:
	/s/ Teresa L. Dick

	Name:
	Teresa L. Dick

	Title:
	Executive Vice President and Chief Financial Officer

Signature Page to First Amendment to Recapitalization Agreement

Exhibit A

Form of
First Amendment to the Second Amended and Restated Limited Partnership Agreement of Viper Energy Partners LP

Exhibit A

FIRST AMENDMENT TO
SECOND AMENDED AND RESTATED
AGREEMENT OF LIMITED PARTNERSHIP OF
VIPER ENERGY PARTNERS LP

THIS FIRST AMENDMENT TO SECOND AMENDED AND RESTATED AGREEMENT OF LIMITED PARTNERSHIP OF VIPER ENERGY PARTNERS LP, dated as of May [__], 2018 (this “Amendment”), is entered into by VIPER ENERGY PARTNERS GP LLC (the “General Partner”), a Delaware limited liability company and the general partner of VIPER ENERGY PARTNERS LP (the “Partnership”), a Delaware limited partnership, pursuant to the authority granted to the General Partner in Section 13.1 of the Second Amended and Restated Agreement of Limited Partnership of the Partnership, dated as of May 9, 2018 (the “Partnership Agreement”). Capitalized terms used but not defined herein shall have the meanings ascribed to such terms in the Partnership Agreement.

RECITALS

WHEREAS, the Partnership is authorized and will promptly elect to be classified as an association taxable as a corporation for federal income tax purposes pursuant to Treasury Regulations Section 301.7701-3(c) (the “Tax Election”) after the closing of the transactions contemplated by the Recapitalization Agreement, as amended;

WHEREAS, Section 13.1(d)(i) of the Partnership Agreement provides that the General Partner may, without the approval of any other Partner, amend any provision of the Partnership Agreement to reflect a change that the General Partner determines does not adversely affect the Limited Partners (including any particular class of Partnership Interests as compared to other classes of Partnership Interests) in any material respect; and

WHEREAS, acting pursuant to the power and authority granted to it under Section 13.1(d) of the Partnership Agreement, the General Partner has determined that the amendments contemplated by this Amendment do not adversely affect the Limited Partners (including any particular class of Partnership Interests as compared to other classes of Partnership Interests) in any material respect;

NOW, THEREFORE, the Partnership Agreement is hereby amended as follows:

A.    Amendments

		
	1.
	Section 1.1 is hereby amended by adding the following defined terms in appropriate alphabetical order:

“Class B Capital Contribution Amount” equals $1,000,000.

“Class B Capital Contribution Per Unit Amount” equals the Class B Capital Contribution Amount divided by 73,150,000 Class B Units, subject to adjustment for any splits or combinations pursuant to Section 5.7.

“Class B Distribution Amount” means an amount per Class B Unit equal to 2% of the Class B Capital Contribution Per Unit Amount.

“First Amendment” means that certain First Amendment to Second Amended and Restated Agreement of Limited Partnership of Viper Energy Partners LP, dated as of May [__], 2018.

“GP Capital Contribution Amount” equals $1,000,000.

“GP Distribution Amount” means an amount equal to 2% of the GP Capital Contribution Amount.

		
	2.
	The defined term “Class B Unit” is hereby amended and restated in its entirety as follows:

“Class B Unit” means a Unit representing, when outstanding, a fractional part of the Partnership Interests of all Limited Partners, and having the rights and obligations specified with respect to Class B Units in this Agreement.

		
	3.
	The defined term “General Partner Interest” is hereby amended and restated in its entirety as follows:

“General Partner Interest” means the equity interest of the General Partner in the Partnership (in its capacity as general partner and without reference to any Limited Partner Interest held by it), which includes any and all rights, powers and benefits to which the General Partner is entitled as provided in this Agreement, together with all obligations of the General Partner to comply with the terms and provisions of this Agreement. 

		
	4.
	Section 5.1 is hereby amended by adding the following subsection (e) thereto:

“(e) Pursuant to the Recapitalization Agreement, as amended, Diamondback agreed to contribute $1,000,000 to the Partnership as additional consideration for the 73,150,000 Class B Units and the General Partner agreed to contribute $1,000,000 to the Partnership as an additional contribution with respect to its General Partner Interest, such contributions to be made on the effective date of the Tax Election.”

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	5.
	Section 5.5(f) is hereby amended and restated in its entirety as follows:

“(f) Upon any exchange of OpCo Units and Class B Units for Common Units pursuant to the Exchange Agreement, the Partnership shall issue to the exchanging holder of such OpCo Units and Class B Units (i) a number of Common Units equal to the number of OpCo Units delivered in connection with such exchange and (ii) an amount of cash equal to the product of the number of Class B Units exchanged multiplied by the Class B Capital Contribution Per Unit Amount. The Class B Units involved in such exchange shall automatically be cancelled and shall cease to be outstanding.”

		
	6.
	Section 6.1 is hereby amended and restated in its entirety as follows:

Section 6.1 Distributions to Record Holders.

“(a) The Board of Directors may adopt a cash distribution policy, which it may change from time to time without amendment to this Agreement.

(b) Prior to making any distributions in respect of any calendar quarter to Record Holders of Common Units pursuant to Section 6.1(c), the Partnership will distribute to the Record Holders of Class B Units a quarterly amount per Class B Unit equal to the Class B Distribution Amount and will distribute to the Record Holder of the General Partner Interest a quarterly amount in respect of the General Partner Interest equal to the GP Distribution Amount; provided, however, that if insufficient cash is available for such distribution, any amount distributed pursuant to this Section 6.1(b) will be distributed pro rata between the Class B Units, on the one hand, and the GP Interest, on the other hand, based on the ratio of (A) the product of the number of outstanding Class B Units multiplied by Class B Distribution Amount to (B) the GP Distribution Amount.

(c) Except as contemplated by Section 5.7, after making the distributions in Section 6.1(b), (i) the Partnership will make distributions, if any, to all Record Holders of Common Units, Pro Rata and (ii) no distributions shall be made under any circumstances in respect of any Class B Units, except to the extent provided in Section  6.1(b).

(d) All distributions required to be made under this Agreement shall be made subject to
Sections 17-607 and 17-804 of the Delaware Act. 

(e) Notwithstanding Section 6.1(b) and Section 6.1(c), in the event of the dissolution and liquidation of the Partnership, cash shall be applied and distributed solely in accordance with, and subject to the terms and conditions of, Section 12.4.

(f) Each distribution in respect of a Partnership Interest shall be paid by the Partnership, directly or through any Transfer Agent or through any other Person or agent, only to the Record Holder of such Partnership Interest as of the Record Date set for such distribution. Such payment shall constitute full payment and satisfaction of the Partnership’s liability in respect of such 

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payment, regardless of any claim of any Person who may have an interest in such payment by reason of an assignment or otherwise.”

		
	7.
	Section 12.4(c) is hereby amended and restated in its entirety as follows:

“(c) All property and all cash in excess of that required to satisfy or discharge liabilities as provided in Section 12.4(b) shall (i) first be distributed to the Record Holders of Class B Units and the Record Holder of the General Partner Interest pro rata between the Class B Units, on the one hand, and the GP Interest, on the other hand, based on the ratio of (A) the product of the number of outstanding Class B Units multiplied by the Class B Capital Contribution Per Unit Amount to (B) the GP Capital Contribution Amount, until the Record Holders of all outstanding Class B Units have received the Class B Capital Contribution Per Unit Amount in respect of each such Class B Unit and the Record Holder of the General Partner Interest has received an amount equal to the GP Capital Contribution Amount, and then (ii) be distributed to the Partners in accordance with the priorities for distributions set forth in Section 6.1(c) (except that no further distributions shall be made in respect of any Class B Units or in respect of the General Partner Interest) and such distribution shall be made by the end of such taxable period (or, if later, within 90 days after said date of such occurrence).”

		
	B.
	Applicable Law. This Amendment shall be construed in accordance with and governed by the laws of the State of Delaware, without regard to principles of conflicts of laws.

		
	C.
	Severability. Each clause or provision of this Amendment shall be considered severable and if for any reason any clause or provision herein is determined to be invalid, unenforceable or illegal under any existing or future law, such invalidity, unenforceability or illegality shall not impair the operation of or affect those portions of this Amendment that are valid, enforceable and legal.

		
	D.
	Ratification of Partnership Agreement. Except as expressly modified and amended herein, all of the terms and conditions of the Partnership Agreement shall remain in full force and effect.

[Signature page follows.]

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IN WITNESS WHEREOF, this Amendment has been executed as of the date first written above.

	
		
	GENERAL PARTNER

	 
	 

	Viper Energy Partners GP LLC

	 
	 

	By:
	 

	Name:
	 

	Title:
	 

Signature Page to First Amendment to Second Amended and Restated Agreement of Limited Partnership

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