Document:

Exhibit

Exhibit 10.1
SEPARATION AGREEMENT
Effective as of March 13, 2019, (the “Effective Date”), this Separation Agreement (this “Agreement”) is entered into by and between, and shall inure to the benefit of and be binding upon, the following parties (sometimes collectively referred to herein as “the Parties”):
JERRY A. WEANT, hereinafter referred to as “Employee”; and
Callon Petroleum Company, a Delaware corporation, and its direct and indirect subsidiaries, hereinafter collectively referred to as the “Company.”
W I T N E S S E T H:
WHEREAS, Employee is currently an employee of the Company;
WHEREAS, the Parties mutually agree that the Employee ceased to serve as an officer of the Company and its direct and indirect subsidiaries effective as of March 31, 2019, and further agree that the Employee’s employment with the Company shall end effective March 31, 2019 (the “Resignation Date”); 
WHEREAS, Employee and the Company mutually desire to establish and agree on the terms and conditions of Employee’s separation from service;
NOW, THEREFORE, in consideration of the premises and the mutual agreements, covenants and obligations set forth herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, and intending to be legally bound, Employee and the Company hereby agree as follows:
Section 1.Separation Benefits and Payments.  Following the Resignation Date, all entitlement to compensation and benefits will cease except as required by applicable law or provided below.  Employee will be entitled to (i) a lump-sum payment in an amount equal to Employee’s accrued but unused vacation days and (ii) reimbursement for unpaid business expenses incurred in the ordinary course of business.  In addition, subject to the execution of this Agreement by Employee on or after the Effective Date and the lapse of the seven (7) day revocation period following Employee’s execution of this Agreement (the “Revocation Period”) without revocation of this Agreement or any part hereof by Employee, Employee shall be entitled to receive the following payments and benefits, to which Employee would not otherwise be entitled, subject to the terms and conditions set forth in this Agreement:
(a)Employee shall receive a bonus in the amount of $222,600 the Company’s annual performance bonus program for 2018 performance.  Any earned bonus will be awarded at the discretion of the Compensation Committee and will be paid, subject to Employee’s continued compliance with the terms of this Agreement, at the time that such bonus awards are normally paid for the year and in any event, no later than March 31, 2019. 
(b)Company shall transfer to Employee the title to the Company vehicle currently used by Employee within ten (10) days following the Resignation Date.

(c)For purposes of the outstanding equity awards granted to Employee under the Callon Petroleum Company 2011 Omnibus Incentive Plan or the Callon Petroleum Company 2018 Omnibus Incentive Plan (as amended from time to time, the “Plans”):
(i) for the 31,431 restricted stock units that were awarded in 2016, 2017 and 2018, such awards shall vest in full as of the Resignation Date; 
(ii) for the 8,162 stock-settled performance units that were awarded in 2017, such awards shall vest in full at the target performance level as of the Resignation Date; and
(iii) all other outstanding awards under the Plans, including outstanding performance shares and all awards granted in 2019, shall be forfeited as of the Resignation Date.
To the extent necessary to give effect to the provisions of Section 1(c) above, the applicable equity award grant agreements shall be deemed amended by the provisions of Section 1(c) above, as applicable.  All payments made pursuant to this Section 1 shall be subject to appropriate tax withholding and are subject to all the terms and conditions of this Agreement. 
(d)Callon shall, at its expense, maintain COBRA continuation coverage for Employee’s and family member’s continued benefit for twelve (12) months after the Resignation Date for all medical, dental, and vision insurance coverage to which Employee was entitled immediately prior to the Resignation Date. The continued coverage under this Section 1(d) shall be provided in a manner that is intended to satisfy an exception to Section 409A of the Internal Revenue Code (the “Code”), and therefore not treated as an arrangement providing for nonqualified deferred compensation that is subject to taxation under Code Section 409A.  
Section 2.Release of Claims.
(a)General Release by Employee.  In consideration of the foregoing, which Employee hereby expressly acknowledges as good and sufficient consideration for the releases provided below, Employee hereby unconditionally and irrevocably releases, acquits and forever discharges, to the fullest extent permitted by applicable law, the Company and each of its subsidiaries, divisions, affiliates, operating companies, predecessors and successors, as well as all of the current and former employees, officers, directors, owners, shareholders, partners, representatives, agents and affiliates of each of them (collectively, the “Released Parties”), from any and every action, cause of action, complaint, claim, demand, administrative charge, legal right, compensation, obligation, damages (including consequential, exemplary and punitive damages), liability, cost or expense (including attorney’s fees) that Employee has, may have or may be entitled to from or against any of the Released Parties, whether legal, equitable or administrative, whether known or unknown, which arises directly or indirectly out of, or is based on or related in any way to Employee’s employment with, compensation and benefits from, termination of employment from, service for or other affiliation with the Company, including any such matter arising from the negligence, gross negligence or reckless, willful or wanton misconduct of any of the 

Released Parties (together, the “Released Claims”); provided, however, that this Release does not apply to, and the Released Claims do not include: (i) any claims arising solely and specifically under the U.S. Age Discrimination in Employment Act of 1967 after the date this Agreement is executed by Employee; (ii) any claim for indemnification (including under the Company’s organizational documents or insurance policies) arising in connection with an action instituted by a third party against the Company or any of its affiliates or Employee, in his capacity as an officer, director, manager, employee, agent or other representative of the Company or any of its affiliates; (iii) any claims for vested benefits under the Company’s 401(k) plan; (iv) any claims relating to Employee’s eligibility to continue participating in health coverage currently available to Employee in accordance with COBRA, subject to the terms, conditions and restrictions of that Act; (v) any claim arising from any breach or failure to perform any provision of this Agreement; or (vi) any claim for worker’s compensation benefits or any other claim that cannot be waived by a general release.
(b)Release to be Full and Complete; Waiver of Claims, Rights and Benefits.  The parties intend this Release to cover any and all such Released Claims, whether they are contract claims, equitable claims, fraud claims, tort claims, discrimination claims, harassment claims, whistleblower or retaliation claims, personal injury claims, constructive or wrongful discharge claims, emotional distress claims, pain and suffering claims, public policy claims, claims for debts, claims for expense reimbursement, wage claims, claims with respect to any other form of compensation, claims for attorneys’ fees, other claims or any combination of the foregoing, and whether they may arise under any employment contract (express or implied), policies, procedures, practices or by any acts or omissions of any of the Released Parties or whether they may arise under any state, local or federal law, statute, ordinance, rule or regulation, including all Texas employment discrimination laws, Chapter 21 of the Texas Labor Code, the Texas Payday Act, all U.S. federal discrimination laws, the U.S. Age Discrimination in Employment Act of 1967, the U.S. Employee Retirement Income Security Act of 1974, Title VII of the U.S. Civil Rights Act of 1964, the U.S. Civil Rights Act of 1991, the U.S. Rehabilitation Act of 1973, the U.S. Americans with Disabilities Act of 1990, the U.S. Equal Pay Act, the U.S. National Labor Relations Act, the U.S. Older Workers Benefit Protection Act, the U.S. Worker Adjustment and Retraining Notification Act, the U.S. Family and Medical Leave Act, the U.S. Sarbanes-Oxley Act of 2002 or common law, without exception.  As such, it is expressly acknowledged and agreed that this Release is a general release, representing a full and complete disposition and satisfaction of all of the Company’s and any Released Party’s real or alleged legal obligations to Employee except as explicitly provided for herein.  Employee understands and agrees, in compliance with any law, statute, ordinance, rule or regulation which requires a specific release of unknown claims or benefits, that this Agreement includes a release of unknown claims, and Employee hereby expressly waives and relinquishes any and all Released Claims and any associated rights or benefits that Employee may have, including any that are unknown to Employee at the time of the execution this Agreement.  On or after the Resignation Date, as a condition to receiving the benefits set forth in Section 1, Employee agrees that he shall execute another release covenant not to sue of all Released Claims against the Released Parties to be effective on the Resignation Date. 

(c)Certain Representations of Employee.  Employee represents and warrants that: (i) Employee is the sole and lawful owner of all rights, titles and interests in and to all Released Claims; and (ii) Employee has the fully legal right, power, authority and capacity to execute and deliver this Agreement.
(d)Covenant Not to Sue.  Employee expressly agrees that neither Employee nor any person acting on Employee’s behalf will file or bring or permit to be filed or brought any lawsuit or other action before any court, agency or other governmental authority for legal or equitable relief against any of the Released Parties involving any of the Released Claims.  In the event that such an action is filed against any of the Released Parties, Employee agrees that such Released Parties are entitled to legal and equitable remedies against Employee, including an award of attorney’s fees.  However, it is expressly understood and agreed that the foregoing sentence shall not apply to any action filed by Employee that is narrowly limited to seeking a determination as to the validity of this Agreement and enforcement thereof.  
(e)Protected Disclosures. Notwithstanding the foregoing or any other provision in this Agreement to the contrary, including any provision in Sections 4, 5 or 6, the Company and Employee further agree that nothing in this Agreement (i) limits Employee’s ability to file a charge or complaint with the EEOC, the NLRB, OSHA, the SEC or any other federal, state or local governmental agency or commission (“Government Agencies”); (ii) limits Employee’s ability to communicate with any Government Agencies or otherwise participate in any investigation or proceeding that may be conducted by any Government Agency, including providing documents or other information and reporting possible violations of law or regulation or other disclosures protected under the whistleblower provisions of applicable law or regulation, without notice to the Company; or (iii) limits Employee’s right to receive an award for information provided to any Government Agencies.  Should Employee file a charge or complaint with any Government Agency, or should any governmental entity, agency or commission file a charge, action, complaint or lawsuit against any of the Released Parties based on any Released Claim, Employee agrees not to seek or accept any resulting payment from the Released Parties.  
Section 3.Return of Materials, Nondisparagement, Noncompetition, Nonsolicitation, Confidentiality and Other Undertakings.  
(a)Return of Materials.  On or promptly after the Resignation Date, Employee shall return to the Company with no request being required of the Company:  (i) any and all documents, records, files, reports, memoranda, plans, letters and any other data in Employee’s possession regardless of the medium maintained, held or stored  that relate in any way to the business or operations of the Company; and (ii) any credit cards, keys, access cards, calling cards, computer equipment and software, telephone, facsimile or other equipment or property of the Company.  
(b)Nondisparagement.  
		
	
	(i)    Employee shall refrain from making, directly or indirectly, in any public or private communication any criticisms or negative or disparaging 

comments about the Company or any of the other Released Parties, or about any aspect of the respective businesses, operations, financial results or prospects of the Company, including comments relating to Employee’s separation from employment. 
		
	(ii)
	The directors and officers of the Company shall refrain from making, directly or indirectly, in any public or private, any criticisms or negative or disparaging comments about Employee, or about any aspect of the employment relationship between the Company and Employee, including comments relating to Employee’s separation from employment. 

		
	(iii) 
	Notwithstanding the foregoing, it is understood and agreed that nothing in this Section 3(b) is intended to prevent either party or the Released Parties from (x) testifying truthfully in any legal proceeding brought by any governmental authority or other third party or interfere with any obligation to cooperate with or provide information to any government agency or commission or (y) consulting with legal counsel with respect to the interpretation or enforcement of this Agreement.

(c)Noncompetition.  Employee agrees that during the term of the Employee’s employment with the Company and for a period of one (1) year following the Resignation Date, he shall not, directly or indirectly, compete with the Company personally or by providing services to any other person, partnership, association, corporation, or other entity that is an “Oil and Gas Business” in the Permian Basin; provided, however, that any leasehold interests, overriding royalty interests, royalty interests and/or mineral interests owned either in the county records of Eddy or Lea County, New Mexico or by any contractual agreement by the Employee or any entity he controls as of March 8, 2019, shall not be considered competition with the Company.  As used herein, an “Oil and Gas Business” means owning, managing, acquiring, attempting to acquire, soliciting the acquisition of, operating, controlling, or developing Oil and Gas interests, or engaging in or being connected with, as a principal, owner, officer, director, employee, shareholder, promoter, consultant, contractor, partner, member, joint venture, agent, equity owner or in any other capacity whatsoever, any of the foregoing activities of the oil and gas exploration and production business.  The parties agree that the above restrictions on competition are completely severable and independent agreements supported by good and valuable consideration and, as such, shall survive the termination of this Agreement for whatever reason.  The parties further agree that any invalidity or unenforceability of any one or more of such restrictions on competition shall not render invalid or unenforceable any remaining restrictions on competition.  Additionally, should a court of competent jurisdiction determine that the scope of any provision of this Section 3(c) is too broad to be enforced as written, the parties intend that the court reform the provision to such narrower scope as it determines to be reasonable and enforceable.
(d)Nonsolicitation.  During the term of Employee’s employment with the Company and for a period of one (1) year following the Resignation Date, Employee shall not, on his own behalf or on behalf of any other person, partnership, association, corporation, 

or other entity: (a) directly, indirectly, or through a third party hire or cause to be hired; (b) directly, indirectly, or through a third party solicit; or (c) in any manner attempt to influence or induce any employee of the Company or its subsidiaries or affiliates to leave the employment of the Company or its subsidiaries or affiliates, nor shall he use or disclose to any person, partnership, association, corporation, or other entity any information obtained concerning the names and addresses the Company’s employees.  The parties agree that the above restrictions on hiring and solicitation are completely severable and independent agreements supported by good and valuable consideration and, as such, shall survive the termination of this Agreement for whatever reason.  The parties further agree that any invalidity or unenforceability of any one or more such restrictions on hiring and solicitation shall not render invalid or unenforceable any remaining restrictions on hiring and solicitation.  Additionally, should a court of competent jurisdiction determine that the scope of any provision of this Section 3(d) is too broad to be enforced as written, the parties intend that the court reform the provision to such narrower scope as it determines to be reasonable and enforceable. 
(e)Cooperation.  Employee agrees to be reasonably available to the Company Entities or their representatives (including their attorneys) to provide information and assistance as requested by the Company.  Such information and assistance may include testifying (and preparing to testify) as a witness in any proceeding or otherwise providing information or reasonable assistance to the Company in connection with any investigation, claim or suit.  The Employee further agrees not to voluntarily assist any non-governmental adverse party in an action or claim against the Company.  Any cooperation required of Employee shall not unreasonably interfere with Employee’s other business endeavors.  Company will pay for any pre-approved expenses incurred for such cooperation. If such cooperation shall take more than four (4) hours in any calendar week, Company shall compensate Employee, pro-rata, based upon Employee’s base salary at time of Resignation Date.  
(f)Confidentiality and Trade Secrets.  The Employee promises not to use in any way or disclose any of the Trade Secrets (as such term is defined in the 2019 Change in Control Severance Compensation Agreement between Employee and the Company, effective as of January 1, 2019 (hereinafter the “2019 Change in Control Agreement”)) or any other confidential and proprietary information that is not generally known to the public (collectively, and including Trade Secrets, “Confidential Information”) directly or indirectly, either during or after the term of his employment, except as required in the course of his employment with the Company, if required in connection with a judicial or administrative proceeding, or if the information becomes public knowledge other than as a result of an unauthorized disclosure by the Employee. All files, records, documents, information, data, and similar items relating to the business of Company, whether prepared by the Employee or otherwise coming into his possession, will remain the exclusive property of Company and may not be removed from the premises of Company under any circumstances without the prior written consent of Company (except in the ordinary course of business during the Employee’s period of active employment under this Agreement), and in any event must be promptly delivered to Company upon termination of the Employee’s employment with Company. The Employee agrees that upon his receipt of any subpoena, 

process, or other requests to produce or divulge, directly or indirectly, any Confidential Information to any entity, agency, tribunal, or person, whether received during or after the term of the Employee’s employment with Company, the Employee shall timely notify and promptly deliver a copy of the subpoena, process, or other request to Company. For this purpose, the Employee irrevocably nominates and appoints Company (including any attorney retained by Company), as his true and lawful attorney-in-fact, to act in the Employee’s name, place, and stead to perform any act that the Employee might perform to defend and protect against any disclosure of any Confidential Information.  The parties agree that the above restrictions on confidentiality and disclosure are completely severable and independent agreements supported by good and valuable consideration and, as such, shall survive the termination of this Agreement for whatever reason. The parties further agree that any invalidity or unenforceability of any one or more of such restrictions on confidentiality and disclosure shall not render invalid or unenforceable any remaining restrictions on confidentiality and disclosure. Additionally, should a court of competent jurisdiction determine that the scope of any provision of this Section 3(f) is too broad to be enforced as written, the parties intend that the court reform the provision to such narrower scope as it determines to be reasonable and enforceable
(g)Enforcement of Covenants.  Employee acknowledges that the injury that would be suffered by the Company as a result of a breach or threatened breach of the provisions of this Section 3 would be immediate and irreparable and that, because of the difficulty of measuring economic loss of any such breach or threatened breach, an award of monetary damages to the Company for any such breach would be an inadequate remedy.  Accordingly, in the event that the Company determines that Employee has breached or attempted to breach or is threatening to breach any provision of this Section 3, in addition to any other remedies at law or in equity that any of the Company may have available to it, it is agreed that the Company shall be entitled, upon application to any court of proper jurisdiction, to temporary or permanent restraining orders or injunctions against Employee prohibiting such breach or attempted or threatened breach, without the necessity of:  (i) proving immediate or irreparable harm; (ii) establishing that monetary damages are inadequate or that the Company does not have an adequate remedy at law; or (iii) posting any bond with respect thereto.
(h)Repayment and Forfeiture.  Employee agrees that in the event that Employee breaches or challenges any term of Sections 2 or 3 hereof, and all or any part of Sections 2 or 3 are found invalid or unenforceable for any reason whatsoever by a court of competent jurisdiction or an arbitrator in a proceeding between Employee and Company, in addition to any other remedies at law or in equity the Company may have available to it, the Company shall not be obligated to make any of the payments and may cease to make such payments or to provide for any of the benefits specified in Section 1 hereof, and shall be entitled to recoup from Employee any and all of the value of the payments and benefits provided pursuant to Section 1 hereof that have vested or been paid pursuant to that Section.
Section 4.Entire Agreement; Amendment; Third-Party Beneficiaries.  Employee and the Company agree and acknowledge that this Agreement contains and comprises the entire agreement and understanding between the parties with respect to the subject matter hereof, 

that no other representation, promise, covenant or agreement of any kind whatsoever has been made to cause either party hereto to execute this Agreement, that all agreements and understandings between the parties with respect to the subject matter hereof are embodied and expressed in this Agreement and that this Agreement supersedes all prior agreements, negotiations, discussions, understandings and commitments, written or oral, between the parties hereto with respect to such subject matter including, without limitation, the 2019 Change in Control Agreement.  The parties also agree that the terms of this Agreement shall not be amended or changed except in writing and signed by Employee and a duly authorized agent of the Company.  The parties to this Agreement further agree that this Agreement shall be binding on and inure to the benefit of Employee and the Company and the Company’s successors and assigns.  Except to the extent otherwise provided in this Agreement with respect to the Company and the Released Parties, the provisions of this Agreement shall not confer upon any third party any remedy, claim, liability, reimbursement or other right in excess of those existing without reference to this Agreement.
Section 5.Timing and Consultation with Counsel.  Employee acknowledges that (i) he has been given a reasonable period of time, not less than twenty-one (21) days, to consider, and to request changes to, this Agreement and that if he signs this Agreement prior to the end of the 21-day time period he knowingly and voluntarily elected to do so; (ii) he has been advised to discuss the terms of this Agreement with legal counsel of his own choosing; (iii) he was advised that, if accepted, the Agreement could be revoked, in writing, for up to seven (7) days following the date of such acceptance; and (iv) if he revokes this Agreement, his separation from employment as of the Resignation Date shall nevertheless remain effective and he will not be entitled to any of the payments or benefits set forth in Sections 1(a), (b) or (c) hereof.  
Section 6.Revocation.  Notwithstanding any other provision in this Agreement to the contrary, Employee may revoke this Agreement, in writing, for up to seven (7) days following the date of Employee’s execution of this Agreement, by delivering a written notice of Employee’s revocation of this Agreement to the Company.  Any such notice of revocation shall be delivered via email and certified mail to the General Counsel of the Company at 1401 Enclave Parkway, Houston, Texas 77077 (email address: mecklund@callon.com).
Section 7.Applicable Law; Venue.  This Agreement shall be interpreted and construed in accordance with the substantive laws of the State of Texas, without giving effect to any conflicts of laws provisions thereof that would result in the application of the laws of any other jurisdiction.  THE EXCLUSIVE VENUE FOR THE RESOLUTION OF ANY DISPUTE RELATING TO THIS AGREEMENT OR EMPLOYEE’S EMPLOYMENT (EXCEPT FOR ANY DISPUTE THAT MAY BE SUBJECTED TO ARBITRATION BY MUTUAL AGREEMENT OF THE PARTIES HERETO AFTER THE DATE HEREOF) SHALL BE IN THE STATE AND FEDERAL COURTS LOCATED IN HARRIS COUNTY, TEXAS AND THE PARTIES HEREBY EXPRESSLY CONSENT TO THE JURISDICTION OF THOSE COURTS.
Section 8.Section 409A; Other Tax Matters.  This Agreement is intended to provide payments that are exempt from or compliant with the provisions of Section 409A of the U.S. Internal Revenue Code of 1986 (the “Code”) and related regulations and Treasury pronouncements (“Section 409A”), and the Agreement shall be interpreted accordingly.  Notwithstanding anything herein to the contrary, if on the date of Employee’s separation from 

service Employee is a “specified employee,” as defined in Section 409A, then all or a portion of any separation payments, or benefits under this Agreement that would be subject to the additional tax provided by Section 409A(a)(1)(B) of the Code if not delayed as required by Section 409A(a)(2)(B)(i) of the Code shall be delayed until the first day of the seventh month following Employee’s separation from service date (or, if earlier, Employee’s date of death) and shall be paid as a lump sum (without interest) on such date.  For purposes of this Agreement, a termination of Employee’s employment must be a “separation from service” for purposes of Section 409A.  For purposes of the application of Section 409A, each payment in a series of payments will be deemed a separate payment.  Employee acknowledges and agrees that Employee has obtained no advice from the Company, or any of their respective officers, directors, employees, attorneys or other representatives, and that none of such persons or entities have made any representation regarding the tax consequences, if any, of Employee’s receipt of the payments, benefits and other consideration provided for in this Agreement.  Employee further acknowledges and agrees that Employee is personally responsible for the payment of all federal, state and local taxes that are due, or may be due, for any payments and other consideration received by Employee under this Agreement.  Employee agrees to indemnify the Company and hold the Company harmless for any and all taxes, penalties or other assessments that Employee is, or may become, obligated to pay on account of any payments made and other consideration provided to Employee under this Agreement (including, without limitation, any amounts relating to or imposed by the operation of Section 409A of the Code).  
Section 9.Miscellaneous Provisions.
(a)Waivers.  Any term or provision of this Agreement may be waived, or the time for its performance may be extended, by the party hereto entitled to the benefit thereof.  Any such waiver shall be validly and sufficiently given for the purposes of this Agreement if, as to either party hereto, it is in writing signed by such party or an authorized representative thereof.  Failure on the part of the Company or Employee at any time to insist on strict compliance by the other party with any provisions of this Agreement shall not constitute a waiver of the obligations of either party hereto in respect thereof, or of either such party’s right hereunder to require strict compliance therewith in the future.  No waiver of any breach of this Agreement shall be deemed to constitute a waiver of any other or subsequent breach.
(b)Severability.  If any provision of this Agreement is held to be illegal, invalid or unenforceable under applicable law, that provision shall be severable and this Agreement shall be construed and enforced as if that illegal, invalid or unenforceable provision never comprised a part hereof, and the remaining provisions hereof shall remain in full force and effect and shall not be affected by the illegal, invalid or unenforceable provision, and there shall be added automatically as part of this Agreement a provision as similar in its terms to such illegal, invalid or unenforceable provision as may be possible and be legal, valid and enforceable.
(c)Further Assurances.  Employee shall, on request by the Company from time to time after the date hereof, execute, acknowledge and deliver to the Company such other documents and instruments as the Company may require to give effect to the provisions of 

this Agreement, including a confirmatory release of the Released Claims as of the Resignation Date.
(d)Execution in Counterparts.  This Agreement may be executed in any number of counterparts, each of which when so executed and delivered shall be an original, but all such counterparts shall together constitute one and the same instrument.  
[Signature page follows]

I HAVE READ THE FOREGOING SEPARATION AGREEMENT, I FULLY UNDERSTAND ITS TERMS AND THAT I MAY BE WAIVING SIGNIFICANT LEGAL RIGHTS BY EXECUTING IT, AND I HAVE VOLUNTARILY EXECUTED IT ON THE DATE WRITTEN BELOW, SIGNIFYING THEREBY MY ASSENT TO AND WILLINGNESS TO BE BOUND BY, ITS TERMS:
	
			
	 
	By:
	/s/ Jerry A. Weant

	 
	 
	Jerry A. Weant

	 
	 
	 

	 
	 
	 

	 
	Date
	 

CALLON PETROLEUM COMPANY

	
			
	By:
	/s/ Joseph C. Gatto, Jr.
	 

	Name:
	Joseph C. Gatto, Jr.
	 

	Title:
	President & Chief Executive OfficerExhibit

Exhibit 10.9

BORROWING BASE INCREASE AGREEMENT AND AMENDMENT NO. 3 TO 
SIXTH AMENDED AND RESTATED CREDIT AGREEMENT

This BORROWING BASE INCREASE AGREEMENT AND AMENDMENT NO. 3 TO SIXTH AMENDED AND RESTATED CREDIT AGREEMENT (this “Amendment”) entered into and effective as of May 1, 2019 (the “Effective Date”), is among Callon Petroleum Company, a Delaware corporation (the “Borrower”), the subsidiaries of the Borrower party hereto (the “Guarantors”), the Lenders (as defined below) party hereto, and JPMorgan Chase Bank, N.A., as administrative agent (in such capacity, the “Administrative Agent”) and as issuing bank (in such capacity, the “Issuing Bank”).
RECITALS

A.The Borrower is party to that certain Sixth Amended and Restated Credit Agreement dated as of May 25, 2017, among the Borrower, the financial institutions party thereto from time to time, as lenders (the “Lenders”), the Administrative Agent, and the Issuing Bank (as amended by the Master Assignment, Borrowing Base Increase Agreement, and Amendment No. 1 to Sixth Amended and Restated Credit Agreement dated effective as of April 5, 2018 and the Borrowing Base Increase Agreement and Amendment No. 2 to Sixth Amended and Restated Credit Agreement dated effective as of September 27, 2018 and as the same may be further amended, restated, supplemented, or otherwise modified from time to time, the “Credit Agreement”).
B.Subject to the terms and conditions set forth herein, the parties hereto wish to amend the Credit Agreement and reaffirm the Borrowing Base, in each case, as provided herein.
NOW THEREFORE, in consideration of the premises and the mutual covenants, representations, and warranties contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows:
Section 1.    Defined Terms.  As used in this Amendment, 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, as amended hereby, unless expressly provided to the contrary.
Section 2.    Other Definitional Provisions.  Article, Section, Schedule, and Exhibit references are to Articles and Sections of and Schedules and Exhibits to this Amendment, unless otherwise specified.  The words “hereof”, “herein”, and “hereunder” and words of similar import when used in this Amendment shall refer to this Amendment as a whole and not to any particular provision of this Amendment.  The term “including” means “including, without limitation,”.  Paragraph headings have been inserted in this Amendment as a matter of convenience for reference only and it is agreed that such paragraph headings are not a part of this Amendment and shall not be used in the interpretation of any provision of this Amendment.  Section 1.04 of the Credit Agreement is incorporated herein mutatis mutandis.

Section 3.    Amendments to Credit Agreement.  
(a)Section 1.02 (Certain Defined Terms) of the Credit Agreement is hereby amended by adding the following new definition:
 “Applicable Hedge Percentage” means (a) for each month of the twelve (12) month period from the date such Swap Agreement is executed, ninety percent (90%), and (b) for each month of the forty-eight (48) month period immediately following the first anniversary of the date such Swap Agreement is executed, eighty-five percent (85%).
(b)Section 9.02 (Debt) of the Credit Agreement is hereby amended by replacing the reference to “$30,000,000” in clause (f) thereof with a reference to “$50,000,000”. 
(c)Section 9.06 (Nature of Business; Organizational Changes) of the Credit Agreement is hereby amended by (i) adding the word “and” after the comma at the end of subsection (a) thereof, (ii) be replacing the phrase “, and” at the end of subsection (b) thereof with a period, and (iii) deleting subsection (c) thereof in its entirety.
(d)Section 9.16 (Swap Agreements) of the Credit Agreement is hereby amended by replacing the first reference to “eighty-five percent (85%)” in clause (a) thereof with a reference to “the Applicable Hedge Percentage”.
(e)Section 9.21 (Amendments to Organizational Documents) of the Credit Agreement is hereby deleted in its entirety and replaced with “[Reserved]”. 
Section 4.    Borrowing Base Reaffirmation.  Subject to the terms of this Amendment, the parties hereto hereby agree that, as of the Effective Date, the Borrowing Base is hereby redetermined and reaffirmed at $1,100,000,000.00, and the Borrowing Base shall remain in effect at such amount until the Borrowing Base is redetermined or adjusted in accordance with the Credit Agreement, as amended hereby.  The redetermination and reaffirmation of the Borrowing Base pursuant to this Section 4 shall constitute the semi-annual Scheduled Redetermination to occur on or about May 1, 2019, as set forth in Section 2.06(b) of the Credit Agreement.  For purposes the Credit Agreement, including Section 9.11 thereof, the parties hereto hereby acknowledge and agree that, until the next redetermination or adjustment of the Borrowing Base pursuant to the Credit Agreement, (a) the Borrower Base value of certain Oil and Gas Properties in the Midland Basin which the Borrower has identified to the Administrative Agent as the “Ranger Assets” and intends to dispose (the “Ranger Assets”) is $0 and (b) such Ranger Assets were not given any value in making the redetermination and reaffirmation of the Borrowing Base hereunder.
Section 5.    Representations and Warranties.  The Borrower and each Guarantor hereby represents and warrants that: (a) after giving effect to this Amendment, 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 (unless already qualified by materiality in which case such applicable representation and warranty shall be true and correct) on and as of the date hereof as if made on and as of such date except to the extent that any such representation or warranty is expressly limited to an earlier date, in which case, on and as of the date hereof such representation or warranty continues to be true and correct in all material respects (unless already qualified by materiality in which case such applicable 

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representation and warranty shall be true and correct) as of such specified earlier date; (b) after giving effect to this Amendment, no Default has occurred and is continuing; (c) the execution, delivery, and performance of this Amendment are within the limited liability company, limited partnership, or corporate power and authority of the Borrower and each Guarantor and have been duly authorized by appropriate limited liability company, limited partnership, or corporate action and proceedings; (d) this Amendment constitutes the legal, valid, and binding obligation of the Borrower and each Guarantor 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, or approvals required in connection with the execution, delivery, performance, validity, or enforceability of this Amendment; and (f) the Liens under the Security Instruments are valid and subsisting and secure the Obligations, as amended hereby.  
Section 6.    Conditions to Effectiveness.  This Amendment shall become effective as of the Effective Date and enforceable against the parties hereto upon the occurrence of the following conditions precedent:  
(a)Documentation.  The Administrative Agent shall have received multiple original counterparts, as requested by the Administrative Agent, of this Amendment, duly and validly executed and delivered by duly authorized officers of the Borrower, the Guarantors, the Administrative Agent, the Issuing Bank, and Lenders constituting at least the Required Lenders;
(b)Closing Certificate.  The Administrative Agent shall have received a certificate of a Responsible Officer of the Borrower certifying that (i) all consents, licenses, and approvals required in accordance with applicable Governmental Requirements, or in accordance with any document, agreement, instrument, or arrangement to which the Borrower, any Guarantor, or any of their respective subsidiaries is a party, in connection with the execution, delivery, performance, validity, and enforceability of this Amendment and the other Loan Documents have been obtained, (ii) the Borrower, the Guarantors, and their respective subsidiaries have all such material consents, licenses, and approvals required in connection with the continued operation of the Borrower, the Guarantors, and their respective subsidiaries and such approvals are in full force and effect, and all applicable waiting periods shall have expired without any action being taken or threatened by any competent authority which would restrain, prevent, or otherwise impose adverse conditions on this Amendment and the actions contemplated hereby, (iii) the representations and warranties in this Amendment and the other Loan Documents are true and correct in all material respects (unless already qualified by materiality in which case such applicable representation and warranty shall be true and correct) on and as of the date hereof as if made on as and as of such date except to the extent that any such representation or warranty is expressly limited to an earlier date, in which case, on and as of the date hereof such representation or warranty continues to be true and correct in all material respects (unless already qualified by materiality in which case such applicable representation and warranty shall be true and correct) as of such specified earlier date, (iv) immediately before and after giving effect to this Amendment, no Default shall occur and be continuing, and (v) no action, suit, investigation, or other proceeding (including the enactment or promulgation of a statute or rule) by or before any arbitrator or any Governmental Authority has been threatened or is pending and no preliminary or permanent injunction or order by a state or federal court has been entered (A) in connection with this Amendment or any transaction contemplated hereby or (B) which, in any case, 

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in the judgment of the Administrative Agent, could reasonably be expected to have a Material Adverse Effect.
(c)Fees.  On the Effective Date, the Borrower shall have paid any fees required under any separate agreement between the Borrower and the Administrative Agent, and all costs and expenses that have been invoiced prior to the Effective Date and are payable pursuant to Section 12.03 of the Credit Agreement, together with such additional amounts as shall constitute the Administrative Agent’s counsel’s reasonable estimate of expenses and disbursements to be incurred by such counsel in connection with the recording and filing of Mortgages and Uniform Commercial Code financing statements; provided, that such estimate shall not thereafter preclude further settling of accounts between the Borrower and the Administrative Agent.
Section 7.    Acknowledgments and Agreements.  
(a)Each Credit Party acknowledges that on the date hereof all outstanding Obligations are payable in accordance with their terms and each Credit Party waives any set-off, counterclaim, recoupment, defense, or other right, in each case, existing on the date hereof, with respect to such Obligations.
(b)The Administrative Agent, the Issuing Bank, and the Lenders hereby expressly reserve all of their rights, remedies, and claims under the Loan Documents, as amended hereby.  This Amendment shall not constitute a waiver or relinquishment of (i) any Default or Event of Default under any of the Loan Documents, as amended hereby, (ii) any of the agreements, terms, or conditions contained in any of the Loan Documents, as amended hereby, (iii) any rights or remedies of the Administrative Agent, the Issuing Bank, or any Lender with respect to the Loan Documents, as amended hereby, or (iv) the rights of the Administrative Agent, the Issuing Bank, or any Lender to collect the full amounts owing to them under the Loan Documents, as amended hereby.
(c)The Borrower, each Guarantor, Administrative Agent, the Issuing Bank and each Lender do hereby adopt, ratify, and confirm the Credit Agreement, as amended hereby, and acknowledge and agree that the Credit Agreement, as amended hereby, is and remains in full force and effect, and the Borrower and each Guarantor acknowledge and agree that their respective liabilities and obligations under the Credit Agreement, as amended hereby, the Guaranty Agreement, and the other Loan Documents are not impaired in any respect by this Amendment.
(d)From and after the date hereof, all references to the Credit Agreement and the Loan Documents shall mean such Credit Agreement and such Loan Documents as amended by this Amendment and the other documents executed pursuant hereto.  This Amendment 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 Amendment shall be a Default or Event of Default, as applicable, under the Credit Agreement.

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(e)Within 60 days of the Effective Date (or such longer period of time as may be agreed to by the Administrative Agent), the Borrower shall have delivered duly executed counterparts of Mortgages (or supplements thereto) which, together with all existing Mortgages delivered and in effect, are sufficient to grant a first priority, perfected security interest (subject to Liens permitted under Section 9.03 of the Credit Agreement) in favor of the Administrative Agent on at least 85% of the total value of the proved Oil and Gas Properties of the Credit Parties evaluated in the most recently delivered Reserve Report.
(f)Within 60 days of the Effective Date (or such longer period of time as may be agreed to by the Administrative Agent), the Borrower shall have delivered such title information as the Administrative Agent may reasonably require, all of which shall be reasonably satisfactory to the Administrative Agent in form and substance, on at least 85% of the total value of the proved Oil and Gas Properties of the Credit Parties evaluated in the most recently delivered Reserve Report.
Section 8.    Reaffirmation of the Guaranty.  Each Guarantor hereby ratifies, confirms, acknowledges and agrees that its obligations under the Guaranty Agreement 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, all of the Guaranteed Obligations (as defined in the Guaranty Agreement), as such Guaranteed Obligations may have been amended by this Amendment, and its execution and delivery of this Amendment does not indicate or establish an approval or consent requirement by such Guarantor under the Guaranty Agreement 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 9.    Reaffirmation of Liens.  Each Credit Party (a) reaffirms the terms of and its obligations (and the security interests granted by it) under each Security Instrument to which it is a party, and agrees that each such Security Instrument will continue in full force and effect to secure the Obligations as the same may be amended, supplemented, or otherwise modified from time to time, and (b) acknowledges, represents, warrants and agrees that the Liens and security interests granted by it pursuant to the Security Instruments are valid, enforceable, and subsisting and create a first priority, perfected security interest (subject to Liens permitted under Section 9.03 of the Credit Agreement) in favor of the Administrative Agent to secure the Obligations.
Section 10.    Counterparts.  This Amendment 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 Amendment may be executed by facsimile or other electronic signature and all such signatures shall be effective as originals.
Section 11.    Successors and Assigns.  This Amendment 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.

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Section 12.    Invalidity.  In the event that any one or more of the provisions contained in this Amendment 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 Amendment.
Section 13.    Governing Law.  This Amendment shall be governed by, and construed and enforced in accordance with, the laws of the State of New York.
Section 14.    Entire Agreement. THIS AMENDMENT AND THE OTHER LOAN DOCUMENTS REPRESENT THE FINAL AGREEMENT AMONG THE PARTIES HERETO AND THERETO AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES.  THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.
[SIGNATURES BEGIN ON NEXT PAGE]

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IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed by their respective officers thereunto duly authorized as of the day and year first above written.
	
				
	BORROWER:
	 
	CALLON PETROLEUM COMPANY

	 
	 
	 
	 

	 
	 
	 
	 

	 
	 
	By:
	/s/ James P. Ulm, II

	 
	 
	Name:
	James P. Ulm, II

	 
	 
	Title:
	Senior Vice President and Chief Financial Officer

	
				
	GUARANTOR:
	 
	CALLON PETROLEUM OPERATING COMPANY

	 
	 
	 
	 

	 
	 
	 
	 

	 
	 
	By:
	/s/ James P. Ulm, II

	 
	 
	Name:
	James P. Ulm, II

	 
	 
	Title:
	Senior Vice President and Chief Financial Officer

Signature page to
Amendment No. 3 to Sixth Amended and Restated Credit Agreement
(Callon Petroleum Company)

	
				
	ADMINISTRATIVE AGENT/ISSUING BANK/LENDER:
	 
	JPMORGAN CHASE BANK, N.A.

	 
	 
	as Administrative Agent, Issuing Bank, and a Lender

	 
	 
	 
	 

	 
	 
	 
	 

	 
	 
	By:
	/s/ Anson Williams

	 
	 
	Name:
	Anson Williams

	 
	 
	Title:
	Authorized Officer

Signature page to
Amendment No. 3 to Sixth Amended and Restated Credit Agreement
(Callon Petroleum Company)

	
				
	LENDER:
	 
	REGIONS BANK, as Lender

	 
	 
	 
	 

	 
	 
	 
	 

	 
	 
	By:
	/s/ Nathalie Huet Rousset

	 
	 
	Name:
	Nathalie Huet Rousset

	 
	 
	Title:
	Director

Signature page to
Amendment No. 3 to Sixth Amended and Restated Credit Agreement
(Callon Petroleum Company)

	
				
	LENDER:
	 
	THE BANK OF NOVA SCOTIA, HOUSTON BRANCH, as a Lender

	 
	 
	 
	 

	 
	 
	 
	 

	 
	 
	By:
	/s/ Marc Graham

	 
	 
	Name:
	Marc Graham

	 
	 
	Title:
	Managing Director

Signature page to
Amendment No. 3 to Sixth Amended and Restated Credit Agreement
(Callon Petroleum Company)

	
				
	LENDER:
	 
	CAPITAL ONE, NATIONAL ASSOCIATION, as a Lender

	 
	 
	 
	 

	 
	 
	 
	 

	 
	 
	By:
	/s/ Chris Kuna

	 
	 
	Name:
	Chris Kuna

	 
	 
	Title:
	Director

Signature page to
Amendment No. 3 to Sixth Amended and Restated Credit Agreement
(Callon Petroleum Company)

	
				
	LENDER:
	 
	CITIBANK, N.A., as a Lender

	 
	 
	 
	 

	 
	 
	 
	 

	 
	 
	By:
	/s/ William McNeely

	 
	 
	Name:
	William McNeely

	 
	 
	Title:
	Senior Vice President

Signature page to
Amendment No. 3 to Sixth Amended and Restated Credit Agreement
(Callon Petroleum Company)

	
				
	LENDER:
	 
	KEYBANK, NATIONAL ASSOCIATION, as a Lender

	 
	 
	 
	 

	 
	 
	 
	 

	 
	 
	By:
	/s/ David M. Bornstein

	 
	 
	Name:
	David M. Bornstein

	 
	 
	Title:
	Senior Vice President

Signature page to
Amendment No. 3 to Sixth Amended and Restated Credit Agreement
(Callon Petroleum Company)

	
				
	LENDER:
	 
	ROYAL BANK OF CANADA, as a Lender

	 
	 
	 
	 

	 
	 
	 
	 

	 
	 
	By:
	/s/ Emilee Scott

	 
	 
	Name:
	Emilee Scott

	 
	 
	Title:
	Authorized Signatory

Signature page to
Amendment No. 3 to Sixth Amended and Restated Credit Agreement
(Callon Petroleum Company)

	
				
	LENDER:
	 
	SUNTRUST BANK, as a Lender

	 
	 
	 
	 

	 
	 
	 
	 

	 
	 
	By:
	/s/ Arize Agumadu

	 
	 
	Name:
	Arize Agumadu

	 
	 
	Title:
	Vice President

Signature page to
Amendment No. 3 to Sixth Amended and Restated Credit Agreement
(Callon Petroleum Company)

	
				
	LENDER:
	 
	BOKF, NA DBA BANK OF OKLAHOMA, as a Lender

	 
	 
	 
	 

	 
	 
	 
	 

	 
	 
	By:
	/s/ Paul J. Edmonds

	 
	 
	Name:
	Paul J. Edmonds

	 
	 
	Title:
	Senior Vice President

Signature page to
Amendment No. 3 to Sixth Amended and Restated Credit Agreement
(Callon Petroleum Company)

	
				
	LENDER:
	 
	CIT BANK, N.A., as a Lender

	 
	 
	 
	 

	 
	 
	 
	 

	 
	 
	By:
	/s/ Sean M. Murphy

	 
	 
	Name:
	Sean M. Murphy

	 
	 
	Title:
	Managing Director

Signature page to
Amendment No. 3 to Sixth Amended and Restated Credit Agreement
(Callon Petroleum Company)

	
				
	LENDER:
	 
	CREDIT SUISSE AG, CAYMAN ISLANDS BRANCH, as a Lender

	 
	 
	 
	 

	 
	 
	 
	 

	 
	 
	By:
	/s/ Judith E. Smith

	 
	 
	Name:
	Judith E. Smith

	 
	 
	Title:
	Authorized Signatory

	 
	 
	 
	 

	 
	 
	By:
	/s/ Joan Park

	 
	 
	Name:
	Joan Park

	 
	 
	Title:
	Authorized Signatory

Signature page to
Amendment No. 3 to Sixth Amended and Restated Credit Agreement
(Callon Petroleum Company)

	
				
	LENDER:
	 
	IBERIABANK, N.A., as a Lender

	 
	 
	 
	 

	 
	 
	 
	 

	 
	 
	By:
	/s/ Moni Collins

	 
	 
	Name:
	Moni Collins

	 
	 
	Title:
	Senior Vice President

Signature page to
Amendment No. 3 to Sixth Amended and Restated Credit Agreement
(Callon Petroleum Company)

	
				
	LENDER:
	 
	HANCOCK WHITNEY BANK, as a Lender

	 
	 
	 
	 

	 
	 
	 
	 

	 
	 
	By:
	/s/ William Jochetz

	 
	 
	Name:
	William Jochetz

	 
	 
	Title:
	Senior Vice President

Signature page to
Amendment No. 3 to Sixth Amended and Restated Credit Agreement
(Callon Petroleum Company)

	
				
	LENDER:
	 
	BARCLAYS BANK PLC, as a Lender

	 
	 
	 
	 

	 
	 
	 
	 

	 
	 
	By:
	/s/ Sydney G. Dennis

	 
	 
	Name:
	Sydney G. Dennis

	 
	 
	Title:
	Director

Signature page to
Amendment No. 3 to Sixth Amended and Restated Credit Agreement
(Callon Petroleum Company)

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

	 
	 
	 
	 

	 
	 
	 
	 

	 
	 
	By:
	/s/ Kimberly Miller

	 
	 
	Name:
	Kimberly Miller

	 
	 
	Title:
	Vice President

Signature page to
Amendment No. 3 to Sixth Amended and Restated Credit Agreement
(Callon Petroleum Company)

	
				
	LENDER:
	 
	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/ Megan Larson

	 
	 
	Name:
	Megan Larson

	 
	 
	Title:
	Authorized Signatory

Signature page to
Amendment No. 3 to Sixth Amended and Restated Credit Agreement
(Callon Petroleum Company)

	
				
	LENDER:
	 
	COMPASS BANK, as a Lender

	 
	 
	 
	 

	 
	 
	 
	 

	 
	 
	By:
	/s/ Gabriela Azcarate

	 
	 
	Name:
	Gabriela Azcarate

	 
	 
	Title:
	Senior Vice President

Signature page to
Amendment No. 3 to Sixth Amended and Restated Credit Agreement
(Callon Petroleum Company)

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