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Exhibit 10.1
AMERISOURCEBERGEN CORPORATION
PERFORMANCE SHARE AWARD TO EMPLOYEE

Participant:    #ParticipantName#

Target Number
of Performance Shares:    #QuantityGranted#

Date of Grant:    #GrantDate#

Vesting Date:    September 30, 2024

RECITALS

This Performance Share Award (the “Award Agreement”) is made by AmerisourceBergen Corporation, a Delaware corporation (the “Company”), pursuant to the AmerisourceBergen Corporation Omnibus Incentive Plan (the “Plan”).

WHEREAS, the Company has agreed to grant to the Participant a performance share award, subject to certain restrictions and on the terms and conditions contained in this Award Agreement.

NOW, THEREFORE, in consideration of the foregoing and the premises contained herein and intending to be legally bound hereby:

1.Definitions. Unless otherwise defined herein, capitalized terms used in this Award Agreement shall have the meanings ascribed to them in the Plan. As used herein:

a)“Award” means the performance share award hereby granted.

b)“Date of Grant” means the date on which the Company granted the Award to the Participant pursuant to the Plan.

c)“Disability” means the Participant is eligible to receive long-term disability benefits under the Company’s long-term disability plan.

d)“Performance Criteria” means the performance criteria established by the Compensation Committee and as set forth in Schedule 1 hereto.

e)“Performance Period” means the period beginning on October 1, 2021 and ending on September 30, 2024.

f)“Settlement Date” means no later than November 30, 2024.

g)“Shares” mean shares of the Company’s Common Stock.

h)“Taxes” means the federal, state and local income and employment taxes required to be withheld in connection with the vesting and issuance of the Shares (or other amounts or property) under the Award.

i)“Voluntary Retirement” means any voluntary termination by the Participant as an employee of the Company (or any Parent or Subsidiary) (i) after reaching age sixty-two (62) and completing sixty (60) full months of continuous Service with the Company or its Parent or Subsidiaries or (ii) after reaching age fifty-five (55), where the Participant’s age plus years of continuous employment with the Company or its Parent or Subsidiaries equals at least seventy (70).

2.Grant of Performance Shares. Subject to the terms and conditions set forth herein and in the Plan, the Company hereby grants to the Participant an Award authorizing the Participant to receive a number of Shares based on the extent to which the applicable vesting criteria are satisfied. The initial number of Shares that shall be used to determine the Participant’s rights pursuant to this Award is the “Target Number of Performance Shares.” The Target Number of Performance Shares shall be used solely to calculate the maximum number of Shares that may be issued to the Participant under this Award Agreement (“Performance-Qualified Shares”).

The number of Performance-Qualified Shares to which the Participant may become entitled shall be calculated by multiplying the designated Target Number of Performance Shares by a percentage ranging from zero (0%) to two hundred percent (200%) based on the attained level of Company performance for the Performance Period as set forth in Schedule 1 hereto. The number of Performance-Qualified Shares may exceed two hundred percent (200%) of the Target Number of Performance Shares, based on actual performance in accordance with Schedule 1 hereto.

Notwithstanding the foregoing, (i) in the event of a Change in Control during the Performance Period, the number of Performance-Qualified Shares issuable under this Award shall be determined as set forth in Section 4 below and (ii) in the event the Participant’s Service ceases prior to the Vesting Date by reason of death or Disability, the number of Performance-Qualified Shares used to determine the number of Shares issuable under Section 3(b)(ii) shall be based on the actual level of Performance Criteria attainment through the most recently completed calendar quarter prior to the date of death or Disability (or the Performance-Qualified Shares determined in accordance with Section 4 if a Change in Control occurs prior to the date of death or Disability).

3.Vesting. Subject to the terms and conditions set forth herein and in the Plan, the actual number of Shares that may vest and become issuable pursuant to the Award shall be determined pursuant to a two-step process: (i) first there shall be calculated the maximum number of Performance-Qualified Shares in which the Participant can vest based upon the level at which the Performance Criteria are actually attained and (ii) then the number of Shares resulting from the clause (i) calculation in which the Participant shall actually vest shall be determined on the basis of his or her completion of the applicable Service-vesting provisions set forth below. Accordingly, the vesting of the Shares shall be calculated as follows:

a)Performance Vesting: Within sixty (60) days following the completion of the Performance Period (or any earlier applicable determination date), the Compensation Committee shall, on the basis of the level at which the Performance Criteria have been attained, determine the applicable number of Performance-Qualified Shares in accordance with the provisions of Section 2.

b)Service Vesting: The Performance-Qualified Shares so determined represent the maximum number of Shares in which the Participant can vest hereunder. The actual number of Shares in which the Participant shall vest shall be determined as follows:

i.If the Participant continues in Service from the Date of Grant through the Vesting Date, the Participant shall vest in all of the Performance-Qualified Shares;

ii.If the Participant ceases to be in Service prior to the Vesting Date but after April 1, 2023 by reason of death or Disability, then the Participant shall, upon such cessation of Service, vest in a number of Shares determined by multiplying (x) the Target Number of Performance Shares, by (y) a fraction, the numerator of which is the number of days of actual Service completed by the Participant during Performance Period, and the denominator of which is one thousand ninety-five (1,095);

iii.If the Participant’s Service terminates during the Performance Period due to the Participant’s Voluntary Retirement, then the Participant shall vest in the maximum number of Performance-Qualified Shares in which the Participant would have vested if the Participant had continued in Service through the Vesting Date;

iv.If within two (2) years following a Change in Control that occurs after the Date of Grant, the Participant’s Service as an employee is involuntarily terminated by the Company (or successor thereto, or a Parent or Subsidiary), whether or not for Cause, then the Performance-Qualified Shares (as determined pursuant to Section 4) to the extent outstanding shall become one hundred percent (100%) vested as of the date of such cessation of Service;

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v.If the Participant ceases to be in Service prior to the Vesting Date but after April 1, 2023 as a result of termination of the Participant’s employment by the Company without Cause (other than a termination described in Section 3(b)(iv)), then the Participant shall vest in a portion of the Performance-Qualified Shares determined by multiplying (x) the maximum number of Performance-Qualified Shares in which the Participant would have vested had the Participant continued in Service through the Vesting Date by (y) a fraction, the numerator of which is the number of days in the Performance Period up to the date of such termination, and the denominator of which is one thousand ninety-five (1,095). Notwithstanding any other provision of this Award Agreement, any vesting of Shares pursuant to this Section 3(b)(v) is conditioned upon the Participant’s execution during the applicable release review period, and non- revocation, of a written release (in such form reasonably prescribed by the Company or in substantially the form attached to an employment agreement entered into by and between the Participant and the Company or any of its affiliates) of any and all claims against the Company and all related parties; and

vi.If the Participant’s Service ceases for any other reason prior to the completion of the Performance Period, then the Participant shall not vest in any of the Performance-Qualified Shares, and all of the Participant’s right, title and interest in and to the Shares subject to this Award shall immediately terminate.

4.Change in Control. In the event a Change in Control occurs during the Performance Period: (A) the Performance Period shall be deemed to end on the last day of the calendar quarter ending prior to the Change in Control; and (B) the Performance-Qualified Shares shall be based on the extent to which the Performance Criteria were achieved for such abbreviated period as determined and certified by the Compensation Committee.

5.Rights of Participant. The Participant shall not have the rights of a stockholder of the Company with respect the Shares represented by the Award, including, without limitation, the right to vote the Shares represented by the Award, unless and until such Shares have been delivered to the Participant in accordance with Section 9.

6.Dividend Equivalents. The Participant shall not receive cash dividends on the Shares subject to the Award, but instead shall, with respect to each Share, be entitled to a cash payment from the Company determined on each cash dividend payment date with respect to the Shares with a record date occurring at any time following the Date of Grant but prior to the date that the Shares represented by the Award are delivered to the Participant in accordance with Section 9. Such cash payment shall be equal to the dividend that would have been paid on the Shares actually delivered to the Participant had the Shares been issued and outstanding and entitled to the dividend. Cash payments for each cash dividend payment date with respect to the Shares with a record date occurring prior to the date that the Shares represented by the Award vest and are delivered to the Participant in accordance with Section 9 shall be accrued until such delivery date and paid to the Participant at the same time delivery of the Shares is made to the Participant in accordance with Section 9, subject to applicable withholding. However, no such dividend equivalent payments shall be paid if the Participant does not vest in the Shares.

7.Notices. Any notice to the Company provided for in this instrument shall be addressed to the Compensation Committee at 1 West First Avenue, Conshohocken, PA 19428, and any notice to the Participant shall be addressed to such Participant at the current address shown on the payroll of the Company, or to such other address as the Participant may designate to the Company in writing. Any notice shall be delivered by hand, sent by overnight courier or telecopy or enclosed in a properly sealed envelope addressed as stated above, registered and deposited, postage prepaid, in a post office regularly maintained by the United States Postal Service.

8.Securities Laws, etc. The Compensation Committee may from time to time impose any conditions on the Award, and the Shares represented by the Award, as it deems necessary or advisable to ensure that the Plan and this Award satisfy the conditions of Rule 16b-3, and that such Shares are issued and resold in compliance with the Securities Act of 1933, as amended. The Company may require that the Participant represent that the Participant is holding the Shares for the Participant's own account and not with a view to or for sale in connection with any distribution of the Shares, or such other representation as the Compensation Committee deems appropriate.

9.Delivery of Shares.

a)Notwithstanding any provision of this Award Agreement or the Plan to the contrary (other than Section 12 and Section 15(c) hereof and Section 17 of the Plan), the Shares (or such other consideration as permitted by 

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Section 21(b) of the Plan) issuable under this Award that have vested and become issuable shall be delivered to or on behalf of the Participant (in certificate or electronic form) (i) after the Vesting Date but no later than the Settlement Date or (ii) if earlier, within sixty (60) days following the date that the Participant’s Service terminates pursuant to Section 3(b)(ii) or Section 3(b)(iv).

b)The Shares will be delivered without payment from the Participant and without any legend or restrictions, except for such restrictions as may be imposed by the Compensation Committee, in its sole judgment, under Section 8, provided that no certificates for Shares will be delivered to the Participant until appropriate arrangements have been made with the Company for the withholding of any Taxes which may be due with respect to such Shares. The Company may condition delivery of certificates for Shares upon the prior receipt from the Participant of any undertakings which it may determine are required to ensure that the certificates are being issued in compliance with federal and state securities laws.

c)The right to payment of any fractional Shares shall be satisfied in cash, measured by the product of the fractional amount times the Fair Market Value of a Share on the date that the Shares are delivered pursuant to this Section 9, as determined by the Compensation Committee.

10.Withholding Taxes.

a)The issuance of the Shares shall be subject to the collection of all applicable Taxes. The Taxes may be paid in one or both of the following forms:

i.delivery of a check to the Company in the amount of such Taxes, or

ii.through a Share withholding procedure pursuant to which the Company will withhold, at the time of such issuance, a portion of the Shares with a Fair Market Value (measured as of the applicable issuance date) equal to the amount of those Taxes; provided, however, that the amount of any Shares so withheld shall not exceed the amount necessary to satisfy the Company’s required tax withholding obligations using the applicable minimum statutory withholding rates.

b)Notwithstanding the foregoing provisions of this Section 10, the employee portion of the federal, state and local employment taxes required to be withheld by the Company in connection with the vesting (or deemed vesting by reason of the Participant being or becoming eligible for Voluntary Retirement) of the Shares or any other amounts hereunder (the “Employment Taxes”) shall in all events be collected from the Participant in connection with vesting of the Performance-Qualified Shares.  The provisions of this Section 10(b) shall be applicable only to the extent necessary to comply with the applicable tax withholding requirements of Code Section 3121(v).  

c)The Company shall collect the Taxes with respect to each non-Share distribution (including a dividend- equivalent payment) by withholding a portion of that distribution equal to the amount of the applicable Taxes, with the cash portion of the distribution to be the first portion so withheld.

11.Holding Requirements.  Fifty percent (50%) of the Shares issued to the Participant under this Award on or after the Vesting Date, net of any Shares withheld for Taxes, must be held by the Participant for [two years – CEO] [one year – Other Executives] following the Vesting Date (the “Holding Period”) and may not be assigned, transferred, pledged or otherwise disposed of by the Participant, other than by will or the laws of descent and distribution, during the Holding Period.  However, if a Change in Control occurs, the holding requirement of this Section 11 shall lapse as of the date of the Change in Control.  Notwithstanding the foregoing, if the Participant’s Service terminates pursuant to Section 3(b)(ii), the holding requirement of this Section 11 shall not apply. Additionally, if the holding requirement of this Section 11 has been imposed on the Participant’s Shares in accordance with this Section 11 and the Participant dies or becomes Disabled before the end of the Holding Period, then the Holding Period shall lapse as of the date of the Participant’s death or Disability. 

12.Special Forfeiture and Repayment Rules.

a)The Participant hereby acknowledges and agrees that in the event that the Participant experiences a Triggering Event (as defined in the Plan and including, without limitation, the occurrence of a breach by the Participant of the non-competition or non-solicitation covenants set forth in Attachment A hereto) and unless the Compensation Committee or its delegate determines otherwise, then:

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i.any portion of the Award (and related dividend equivalents) that remain unvested as of the date the Compensation Committee or its delegate determines that the Participant has experienced a Triggering Event, and any portion of the Award (or related dividend equivalents) that has so vested but the Shares represented by such vested portion (or related dividend equivalents) have not yet been delivered in accordance with Section 9, shall be immediately and automatically forfeited; and

ii.if the Award has vested and the Shares represented by such vested Award (and related dividend equivalents) have been delivered to the Participant in accordance with Section 9 within the twelve (12)-month period immediately prior to the date of the acts or omissions that gave rise to such Triggering Event or anytime thereafter, within ten (10) days of receiving written notice from the Company that a Triggering Event has occurred, the Participant shall deliver to the Company a number of unrestricted Shares equal to the number of Shares and any cash delivered to the Participant in respect of the Award (and related dividend equivalents) during such period; provided that if, at the time delivery of the Shares by the Participant is required, the Participant cannot deliver a number of unrestricted Shares equal to the number of Shares delivered to the Participant in respect of the Award during such period, in addition to the delivery of the number of unrestricted Shares by the Participant at such time, the Participant shall be required to pay to the Company an amount equal to the product of the number of such Shares delivered to the Participant in respect of the Award during such period (less the number of Shares contemporaneously delivered by the Participant to the Company), multiplied by the Fair Market Value of one Share as of the date the Award became vested.

b)The Compensation Committee shall determine in its sole discretion whether a Triggering Event has occurred with respect to the Participant.

c)The Participant hereby acknowledges and agrees that the restrictions contained in the Plan are being made for the benefit of the Company in consideration of the Participant’s receipt of the Award. The Participant further acknowledges that the receipt of the Award is a voluntary action on the part of the Participant and that the Company is unwilling to provide the Award to the Participant without including the restrictions contained in the Plan.

d)The Participant hereby consents to a deduction from, and set-off against, any amounts owed to the Participant by the Company or its affiliates from time to time (including, but not limited to, amounts owed to the Participant as wages, severance payments or other fringe benefits) to the extent of the amounts owed to the Company by the Participant under this Award Agreement.

e)The Special Forfeiture and Repayment Rules provisions of this Award Agreement and the Plan are in addition to, not in lieu of, any other obligation and/or restriction that the Participant may have with respect to the Company, whether by operation of law, contract, or otherwise, including, without limitation, any non-competition and non-solicitation obligations contained in an employment agreement entered into by and between the Participant and the Company or any of its affiliates.

f)The Participant hereby further agrees that the Participant and this Award shall be subject to the Financial Recoupment Policy of the Company’s Corporate Integrity Agreement, to the extent applicable, and any applicable clawback, recoupment or other similar policy that the Company adopts at any time, whether before or after the Grant Date (each, a “Policy”), and the Participant acknowledges and agrees that the Award (and related dividend equivalents) hereunder granted, the Shares issued or to be issued and/or amounts paid or to be paid hereunder and/or amounts received with respect to any sale of such Shares, shall be subject to potential cancellation, recoupment, rescission, payback or other action in accordance with the terms of such Policy. The Participant agrees and consents to the Company’s application, implementation and enforcement of (i) any such Policy established by the Company that may apply to the Participant and (ii) any provisions of applicable law relating to cancellation, rescission, payback or recoupment of compensation, and expressly agrees that the Company may take such actions as are necessary to effectuate such Policy or applicable law without further consent or action being required by the Participant. To the extent that the terms of this Award Agreement and such Policy conflict, the terms of such Policy shall prevail.

13.Transferability. The Award (and the underlying Shares (and related dividend equivalents)) may not be assigned, alienated, pledged, attached, sold or otherwise transferred or encumbered by the Participant other than by will or by 

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the laws of descent and distribution, and any purported assignment, alienation, pledge, attachment, sale, transfer or encumbrance not permitted by this Section 13 shall be void and unenforceable. However, any Shares (and related dividend equivalents) which vest hereunder but otherwise remain unissued at the time of the Participant’s death, shall be issued to the Participant’s designated beneficiary or beneficiaries of this Award or in the absence of such designated beneficiaries, pursuant to the provisions of the Participant’s will or laws of descent and distribution.

14.Restrictive Covenants and Other Attachments. The Participant hereby agrees to the Restrictive Covenants set forth in Attachment A hereto and acknowledges and agrees to the provisions of Attachment B hereto.

15.Section 409A.

a)It is the intention of the parties that the provisions of this Award Agreement shall, to the maximum extent possible, be exempt from Code Section 409A. Accordingly, to the extent there is any ambiguity as to whether one or more provisions of this Award Agreement would otherwise contravene the requirements or limitations of Code Section 409A and the Treasury Regulations applicable thereunder, then those provisions shall be interpreted and applied in a manner that does not result in a violation of the requirements or limitations of Code Section 409A and the Treasury Regulations thereunder.

b)However, to the extent this Award Agreement should be deemed to create a deferred compensation arrangement subject to the requirements of Code Section 409A, then no Shares or other amounts which become issuable or distributable under this Award Agreement by reason of the Participant’s cessation of Service shall actually be issued or distributed to the Participant until the date of the Participant’s separation from service within the meaning of Treasury Regulation 1.409A-1(h) or as soon thereafter as administratively practicable, but in no event later the fifteenth (15th) day of the third (3rd)calendar month following the date of such separation from service, unless a delayed commencement date is otherwise required pursuant to Section 15(c).

c)No Shares or other amounts which become issuable or distributable under this Award Agreement by reason of the Participant’s separation from service shall actually be issued or distributed to the Participant prior to the earlier of (i) the first day of the seventh (7th) month following the date of such separation from service or (ii) the date of the Participant’s death, if the Participant is deemed at the time of such separation from service to be a specified employee under Treasury Regulation 1.409A-1(i), as determined by the Compensation Committee in accordance with consistent and uniform standards applied to all other Code Section 409A arrangements of the Company, and such delayed commencement is otherwise required in order to avoid a prohibited distribution under Code Section 409A(a)(2). The deferred Shares or other distributable amount shall be issued or distributed in a lump sum on the first day of the seventh (7th) month following the date of the Participant’s separation from service or, if earlier, the first day of the month immediately following the date the Company receives proof of the Participant’s death. In no event shall the Participant have the right to determine the calendar year in which any such issuance or distribution is to occur.

16.Miscellaneous.

a)The Award granted hereunder shall not confer upon the Participant any right to continue in Service and shall not interfere in any way with the right of the Company (or any Parent or Subsidiary) to terminate the Participant’s Service at any time. The right of the Company (or any Parent or Subsidiary) to terminate at will the Participant’s Service at any time for any reason is specifically reserved.

b)The Award granted hereunder is subject to the approval of the Plan by the shareholders of the Company to the extent that such approval (i) is required pursuant to the rules and regulations of the New York Stock Exchange, or (ii) is required to satisfy the conditions of Rule 16b-3.
c)The Participant acknowledges that the Company has not advised the Participant regarding the Participant’s tax liability in connection with the grant or vesting of the Award (and related dividend equivalents) or the delivery of the Shares represented by the Award (and related dividend equivalents). The Participant is not relying on any statements or representations of the Company or any of its agents in regard to such liability. The Participant understands that the Participant (and not the Company) shall be responsible for the Participant’s own tax liability that may arise as a result of the transactions contemplated by this Award Agreement.

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d)The validity, performance, construction and effect of this Award shall be governed by and determined in accordance with the law of the State of Delaware, without giving effect to conflicts of laws principles thereof.

e)Except to the extent otherwise provided in this Award Agreement, the provisions of this Award Agreement shall inure to the benefit of, and be binding upon, the Company and its successors and assigns and the Participant, the Participant’s assigns, the legal representatives, heirs and legatees of the Participant’s estate and any beneficiaries of the Award designated by the Participant.

f)This Award Agreement shall not in any way affect the right of the Company to adjust, reclassify, reorganize or otherwise change its capital or business structure or to merge, consolidate, dissolve, liquidate or sell or transfer all or any part of its business or assets.

g)The Participant has received a copy of the Plan, a copy of which is attached hereto, has been provided with the opportunity to read the Plan and is familiar with the terms and provisions thereof and hereby accepts this Award subject to all of the terms and provisions of this Award Agreement and the Plan, including, without limitation, the Special Forfeiture and Repayment Rule provisions of the Plan. The Participant hereby acknowledges the receipt of the prospectus for the Plan, a copy of which is attached hereto. All decisions or interpretations of the Compensation Committee upon any questions arising under the Plan or this Award Agreement shall be binding, conclusive and final.

17.GRANT ACCEPTANCE. YOU MUST ACCEPT THE TERMS OF THIS AWARD AGREEMENT WITHIN A TIME PERIOD SPECIFIED BY THE COMPANY FOLLOWING RECEIPT IN ACCORDANCE WITH THE PROCEDURES SPECIFIED BY THE COMPANY. IF YOU DO NOT ACCEPT THE TERMS AS INSTRUCTED, THIS AWARD AGREEMENT WILL AUTOMATICALLY, WITHOUT FURTHER ACTION BY THE COMPANY OR THE COMPENSATION COMMITTEE, TERMINATE AND THE AWARD WILL BE FORFEITED. 

ACCEPTANCE OF THIS AWARD AGREEMENT CONSTITUTES YOUR CONSENT TO ANY ACTION TAKEN UNDER THE PLAN AND THIS AWARD AGREEMENT AND YOUR AGREEMENT TO BE BOUND BY THE COVENANTS AND AGREEMENTS CONTAINED IN ATTACHMENT A AND ATTACHMENT B HERETO.  YOU SHOULD READ ATTACHMENT A AND ATTACHMENT B CAREFULLY BEFORE DECIDING WHETHER TO ACCEPT THIS AWARD.  YOU HAVE THE RIGHT TO CONSULT WITH COUNSEL PRIOR TO ACCEPTING THIS AWARD.  IF YOU DECIDE NOT TO ACCEPT THIS AWARD, YOU WILL FORFEIT THE AWARD AND THE RESTRICTIVE COVENANTS SET FORTH IN ATTACHMENT A AND ATTACHMENT B HERETO WILL NOT APPLY.  HOWEVER, YOU WILL CONTINUE TO BE SUBJECT TO ANY RESTRICTIVE COVENANTS WITH RESPECT TO PRIOR OR SUBSEQUENT EQUITY GRANTS AND ANY OTHER RESTRICTIVE COVENANT AGREEMENTS BETWEEN YOU AND THE COMPANY.  THERE WILL BE NO OTHER CONSEQUENCES AS A RESULT OF YOUR DECISION NOT TO ACCEPT AWARD.

IN WITNESS WHEREOF, the Company has caused its duly authorized officer to execute this Award Agreement effective as of the Date of Grant.

AMERISOURCEBERGEN CORPORATION

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	Exhibit 10.1

    
    AMENDED AND RESTATED FIFTH AMENDMENT    
TO
CREDIT AGREEMENT
Dated as of January 30, 2022
Among
EARTHSTONE ENERGY HOLDINGS, LLC,
as Borrower,

EARTHSTONE ENERGY, INC.,
as Parent,

WELLS FARGO BANK, NATIONAL ASSOCIATION,
as Administrative Agent and Issuing Bank, 
ROYAL BANK OF CANADA,
as Syndication Agent,

TRUIST BANK, CITIZENS BANK, N.A.,
KEYBANK NATIONAL ASSOCIATION, U.S. BANK NATIONAL ASSOCIATION,
FIFTH THIRD BANK, PNC BANK, NATIONAL ASSOCIATION AND
BANK OF AMERICA, N.A.,
as Documentation Agents,

and

The Lenders Party Thereto
________________________________

WELLS FARGO SECURITIES, LLC, RBC CAPITAL MARKETS, TRUIST SECURITIES, INC., CITIZENS CAPITAL MARKETS, INC.,  KEYBANC CAPITAL MARKETS INC., U.S. BANK NATIONAL ASSOCIATION, FIFTH THIRD BANK, PNC CAPITAL MARKETS LLC AND 
BANK OF AMERICA SECURITIES, INC.,
Joint Lead Arrangers and Joint Bookrunners
________________________________

________________________________

AMENDED AND RESTATED FIFTH AMENDMENT TO CREDIT AGREEMENT
THIS AMENDED AND RESTATED FIFTH AMENDMENT TO CREDIT AGREEMENT (this “Fifth Amendment”) dated as of January 30, 2022, is among Earthstone Energy Holdings, LLC, a Delaware limited liability company (the “Borrower”); Earthstone Energy, Inc., a Delaware corporation (the “Parent”); each of the undersigned guarantors (the “Guarantors”, and together with the Borrower and the Parent, the “Obligors”); each of the Lenders party hereto; and Wells Fargo Bank, National Association (in its individual capacity, “Wells Fargo”), 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 Parent, the Administrative Agent and the Lenders are parties to that certain Credit Agreement dated as of November 21, 2019 (as amended, restated, amended and restated, supplemented or otherwise modified prior to the date hereof, the “Credit Agreement”), pursuant to which the Lenders have made certain credit available to and on behalf of the Borrower.
B.    The Borrower and the Guarantors are parties to that certain Guarantee and Collateral Agreement, dated as of November 21, 2019 (as amended, restated, amended and restated, supplemented or otherwise modified), made by each of the Loan Parties party thereto in favor of the Administrative Agent.

C.    The Parent is party to that certain Parent Guarantee, dated as of November 21, 2019 (as amended, restated, amended and restated, supplemented or otherwise modified), in favor of the Administrative Agent.
D.    The Borrower, the Parent, the Administrative Agent and the Lenders entered into that certain Fifth Amendment to Credit Agreement, dated as of December 24, 2021 (the “Existing Fifth Amendment”).
E.    The Borrower has requested and the Administrative Agent and the Lenders party hereto have agreed to amend and restate in its entirety the Existing Fifth Amendment and amend the Credit Agreement, subject to the terms and conditions of this Fifth Amendment.
F.    NOW, THEREFORE, to induce the Administrative Agent and the Lenders to enter into this Fifth Amendment and in consideration of the promises 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, as amended by this Fifth Amendment (unless otherwise indicated).  Unless otherwise indicated, all section references in this Fifth Amendment refer to sections of the Credit Agreement. 
Section 2.    Amendments to Credit Agreement effective as of the Fifth Amendment Effective Date.  Subject to the conditions precedent contained in Section 3 hereof, the Credit Agreement shall be amended effective as of the Fifth Amendment Effective Date in the manner provided in this Section 2:
2.1    Amendment to Cover Page.  The cover page of the Credit Agreement is hereby amended and restated to read as set forth on Annex II attached hereto.
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2.2    Amendment to Introductory Paragraph.  The introductory paragraph to the Credit Agreement is hereby amended and restated to read in its entirety as follows:
THIS CREDIT AGREEMENT dated as of November 21, 2019, is among Earthstone Energy Holdings, LLC, a limited liability company duly formed and existing under the laws of the state of Delaware (the “Borrower”); Earthstone Energy, Inc., a Delaware corporation (“Parent”); each of the Lenders from time to time party hereto; Wells Fargo Bank, National Association (in its individual capacity, “Wells Fargo”), as administrative agent for the Lenders (in such capacity, together with its successors in such capacity, the “Administrative Agent”) and as Issuing Bank; BOKF, NA dba Bank of Texas (in its individual capacity, “BOKF”), as Issuing Bank with respect to the Existing Letters of Credit; Royal Bank of Canada, as syndication agent for the Lenders (in such capacity, together with its successors in such capacity, the “Syndication Agent”); and Truist Bank, Citizens Bank, N.A., KeyBank National Association, U.S. Bank National Association, Fifth Third Bank, PNC Bank, National Association and Bank of America, N.A., as documentation agents for the Lenders (each, in such capacity, together with its successors in such capacity, a “Documentation Agent”).
2.3    Amendments to Section 1.02 – Certain Defined Terms.  
(a)    The following definitions are hereby amended and restated in their entirety to read as follows:
“Agents” means, collectively, the Administrative Agent, the Syndication Agent and the Documentation Agents; and “Agent” means either the Administrative Agent, the Syndication Agent or a Documentation Agent, as the context requires.
“Aggregate Elected Borrowing Base Commitments” means (a) on the Fifth Amendment Effective Date, $650,000,000, and (b) at any time thereafter, an amount determined in accordance with Section 2.07(g).
“Agreement” means this Credit Agreement, including any schedules and exhibits hereto, as amended by the First Amendment, the Second Amendment, the Third Amendment, the Fourth Amendment and the Fifth Amendment, and as the same may from time to time be amended, modified, supplemented or restated.

“Alternate Base Rate” means, for any day, a rate per annum equal to the greatest of (a) the Prime Rate in effect on such day, (b) the Federal Funds Effective Rate in effect on such day plus 1⁄2 of 1% and (c) Adjusted Term SOFR for a one month Interest Period on such day (or if such day is not a Business Day, the immediately preceding Business Day) plus 1.00% (provided that clause (c) shall not be applicable during any period in which Adjusted Term SOFR is unavailable or unascertainable). Any change in the Alternate Base Rate due to a change in the Prime Rate, the Federal Funds Effective Rate or Adjusted Term SOFR shall be effective from and including the effective date of such change in the Prime Rate, the Federal Funds Effective Rate or Adjusted Term SOFR, respectively.  Notwithstanding the foregoing, in no event shall the Alternate Base Rate be less than 1.00%.
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“Applicable Margin” means, for any day, with respect to any ABR Loan or SOFR Loan, or with respect to the Commitment Fee Rate, as the case may be, the rate per annum set forth in the Borrowing Base Utilization Grid below based upon the Borrowing Base Utilization Percentage then in effect:
																		
	Borrowing Base Utilization Grid
	

	<25%	≥25%, but
<50%
	≥50%, but
<75%
	≥75%, but
<90%
	≥90%

	ABR Loans	1.50%	1.75%	2.00%	2.25%	2.50%
	SOFR Loans	2.50%	2.75%	3.00%	3.25%	3.50%
	Commitment Fee Rate	0.375%	0.375%	0.50%	0.50%	0.50%

Notwithstanding the foregoing, (a) if the Consolidated Leverage Ratio for the Reference Period ending on the last day of any fiscal quarter or fiscal year, as applicable, is greater than 1.50 to 1.00, then the Applicable Margin set forth in the above grid with respect to ABR Loans and SOFR Loans (but, for purposes of clarity, not the Commitment Fee Rate) will, in each case, (and, for the avoidance of doubt, after giving effect to any increases to the Applicable Margin set forth in the above grid pursuant to clause (b) and/or clause (c) below) increase by 0.25% during the period from and including the first day immediately following the date the financial statements and the related compliance certificate are delivered pursuant to Section 8.01(a) or Section 8.01(b), as applicable, and Section 8.01(c) for such fiscal quarter or fiscal year, as applicable, through and including the date of delivery of the financial statements and the related compliance certificate pursuant to Section 8.01(a) or Section 8.01(b), as applicable, and Section 8.01(c) for the immediately succeeding fiscal quarter; (b) in addition to any increases to the Applicable Margin provided in clause (a) above and/or clause (c) below, if the Fifth Amendment Senior Notes Trigger Event shall not have occurred on or prior to the Chisholm Acquisition Effective Date, then effective as of the Chisholm Acquisition Effective Date and at all times thereafter, the Applicable Margin set forth in the above grid with respect to ABR Loans and SOFR Loans (but, for purposes of clarity, not the Commitment Fee Rate) will, in each case, increase by 0.25%; and (c) in addition to any increases to the Applicable Margin provided in clauses (a) and/or (b) above, if the Fifth Amendment Senior Notes Trigger Event shall not have occurred on or prior to the later of April 15, 2022 and the Bighorn Acquisition Effective Date, then effective on the later of April 15, 2022 and the Bighorn Acquisition Effective Date and until the Fifth Amendment Senior Notes Trigger Event shall have occurred, the Applicable Margin set forth in the above grid with respect to ABR Loans and SOFR Loans (but, for purposes of clarity, not the Commitment Fee Rate) will, in each case, increase by 0.50%.  Each change in the Applicable Margin and Commitment Fee Rate shall apply during the period commencing on the effective date of such change and ending on the date immediately preceding the effective date of the next such change; provided, however, that if at any time the Borrower fails to deliver (i) a Reserve Report pursuant to Section 8.11(a) or (ii) the financial statements and the related compliance certificate pursuant to Section 8.01(a) or Section 8.01(b), as applicable, and Section 8.01(c), then, if so elected by the Majority Lenders, the “Applicable Margin” means the rate per annum set forth on the grid when the Borrowing Base Utilization Percentage is at its highest level. 
In the event that the certified calculation of the Consolidated Leverage Ratio previously delivered pursuant to Section 8.01(c) was inaccurate (and such 
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inaccuracy is discovered while any Commitments or Loans are outstanding), and such inaccuracy, if corrected, would have led to the application of a higher Applicable Margin for the Loans for any period (an “Applicable Period”) than the Applicable Margin applied for such Applicable Period, then, to the extent any Commitments or Loans are outstanding at such time, (i) the Borrower shall as soon as practicable deliver to the Administrative Agent the correct certified calculation of the Consolidated Leverage Ratio for such Applicable Period, (ii) the Applicable Margin shall be determined as if the level for such higher Applicable Margin were applicable for such Applicable Period, and (iii) the Borrower shall within ten (10) Business Days of written demand thereof by the Administrative Agent pay to the Administrative Agent the accrued additional interest owing as a result of such increased Applicable Margin for the Loans for such Applicable Period, which payment shall be promptly applied by the Administrative Agent in accordance with this Agreement.
“Arrangers” means, collectively, Wells Fargo Securities, LLC, RBC Capital Markets, Truist Securities, Inc., Citizens Capital Markets, Inc., KeyBanc Capital Markets Inc., U.S. Bank National Association, Fifth Third Bank, PNC Capital Markets LLC and Bank of America Securities, Inc., in their capacities as the joint lead arrangers and joint bookrunners hereunder.
“Available Tenor” means, as of any date of determination and with respect to the then-current Benchmark, as applicable, (a) if such Benchmark is a term rate, any tenor for such Benchmark (or component thereof) that is or may be used for determining the length of an interest period pursuant to this Agreement or (b) otherwise, any payment period for interest calculated with reference to such Benchmark (or component thereof) that is or may be used for determining any frequency of making payments of interest calculated with reference to such Benchmark, in each case, as of such date and not including, for the avoidance of doubt, any tenor for such Benchmark that is then-removed from the definition of “Interest Period” pursuant to Section 3.03(b)(iv).
“Benchmark” means, initially, the Term SOFR Reference Rate; provided that if a Benchmark Transition Event has occurred with respect to the Term SOFR Reference Rate or the then-current Benchmark, then “Benchmark” means the applicable Benchmark Replacement to the extent that such Benchmark Replacement has replaced such prior benchmark rate pursuant to Section 3.03(b)(i).
“Benchmark Replacement” means, with respect to any Benchmark Transition Event, the sum of: (a) the alternate benchmark rate that has been selected by the Administrative Agent and the Borrower giving due consideration to (i) any selection or recommendation of a replacement benchmark rate or the mechanism for determining such a rate by the Relevant Governmental Body or (ii) any evolving or then-prevailing market convention for determining a benchmark rate as a replacement to the then-current Benchmark for Dollar-denominated syndicated credit facilities and (b) the related Benchmark Replacement Adjustment; provided that, if such Benchmark Replacement as so determined would be less than the Floor, such Benchmark Replacement will be deemed to be the Floor for the purposes of this Agreement and the other Loan Documents.
“Benchmark Replacement Adjustment” means, with respect to any replacement of the then-current Benchmark with an Unadjusted Benchmark 
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Replacement for any applicable Available Tenor, the spread adjustment, or method for calculating or determining such spread adjustment, (which may be a positive or negative value or zero) that has been selected by the Administrative Agent and the Borrower giving due consideration to (a) any selection or recommendation of a spread adjustment, or method for calculating or determining such spread adjustment, for the replacement of such Benchmark with the applicable Unadjusted Benchmark Replacement by the Relevant Governmental Body or (b) any evolving or then-prevailing market convention for determining a spread adjustment, or method for calculating or determining such spread adjustment, for the replacement of such Benchmark with the applicable Unadjusted Benchmark Replacement for Dollar-denominated syndicated credit facilities.
“Benchmark Replacement Date” means the earliest to occur of the following events with respect to the then-current Benchmark:
(a)    in the case of clause (a) or (b) of the definition of “Benchmark Transition Event,” the later of (i) the date of the public statement or publication of information referenced therein and (ii) the date on which the administrator of such Benchmark (or the published component used in the calculation thereof) permanently or indefinitely ceases to provide all Available Tenors of such Benchmark (or such component thereof); or
(b)    in the case of clause (c) of the definition of “Benchmark Transition Event,” the first date on which such Benchmark (or the published component used in the calculation thereof) has been determined and announced by the regulatory supervisor for the administrator of such Benchmark (or such component thereof) to be non-representative; provided that such non-representativeness will be determined by reference to the most recent statement or publication referenced in such clause (c) and even if any Available Tenor of such Benchmark (or such component thereof) continues to be provided on such date.
For the avoidance of doubt, the “Benchmark Replacement Date” will be deemed to have occurred in the case of clause (a) or (b) with respect to any Benchmark upon the occurrence of the applicable event or events set forth therein with respect to all then-current Available Tenors of such Benchmark (or the published component used in the calculation thereof).
“Benchmark Transition Event” means the occurrence of one or more of the following events with respect to the then-current Benchmark:
(a)    a public statement or publication of information by or on behalf of the administrator of such Benchmark (or the published component used in the calculation thereof) announcing that such administrator has ceased or will cease to provide all Available Tenors of such Benchmark (or such component thereof), permanently or indefinitely; provided that, at the time of such statement or publication, there is no successor administrator that will continue to provide any Available Tenor of such Benchmark (or such component thereof);
(b)    a public statement or publication of information by the regulatory supervisor for the administrator of such Benchmark (or the published component used in the calculation thereof), the Board, the Federal Reserve Bank of New York, an insolvency official with jurisdiction over the administrator for such Benchmark (or such component), a resolution authority with jurisdiction over the 
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administrator for such Benchmark (or such component) or a court or an entity with similar insolvency or resolution authority over the administrator for such Benchmark (or such component), which states that the administrator of such Benchmark (or such component) has ceased or will cease to provide all Available Tenors of such Benchmark (or such component thereof) permanently or indefinitely; provided that, at the time of such statement or publication, there is no successor administrator that will continue to provide any Available Tenor of such Benchmark (or such component thereof); or
(c)    a public statement or publication of information by the regulatory supervisor for the administrator of such Benchmark (or the published component used in the calculation thereof) announcing that all Available Tenors of such Benchmark (or such component thereof) are not, or as of a specified future date will not be, representative.
For the avoidance of doubt, a “Benchmark Transition Event” will be deemed to have occurred with respect to any Benchmark if a public statement or publication of information set forth above has occurred with respect to each then-current Available Tenor of such Benchmark (or the published component used in the calculation thereof).
“Benchmark Unavailability Period” means the period (if any) (x) beginning at the time that a Benchmark Replacement Date has occurred if, at such time, no Benchmark Replacement has replaced the then-current Benchmark for all purposes hereunder and under any Loan Document in accordance with Section 3.03(b)(i) and (y) ending at the time that a Benchmark Replacement has replaced the then-current Benchmark for all purposes hereunder and under any Loan Document in accordance with Section 3.03(b)(i).
“Borrowing Base” means at any time an amount equal to the amount determined in accordance with Section 2.07, as the same may be adjusted from time to time pursuant to Section 2.07(e), Section 2.07(f), Section 2.07(h), Section 2.07(i), Section 2.07(j), Section 2.07(k) or Section 8.12(c).
“Business Day” means any day that (a) is not a Saturday, Sunday or other day on which the Federal Reserve Bank of New York is closed and (b) is not a day on which commercial banks in Houston, Texas are closed.
“Floor” means a rate of interest equal to 0.00%.
“Interest Payment Date” means (a) with respect to any ABR Loan (including, for the avoidance of doubt, a Swingline Loan), the last day of each March, June, September and December and (b) with respect to any SOFR Loan, the last day of the Interest Period applicable to the Borrowing of which such Loan is a part and, in the case of a SOFR Borrowing with an Interest Period of more than three months’ duration, each day prior to the last day of such Interest Period that occurs at intervals of three months’ duration after the first day of such Interest Period.
“Interest Period” means, as to each SOFR Borrowing, the period commencing on the date such Borrowing is disbursed or converted to or continued as a SOFR Borrowing and ending on (a) the date that is one month, three months or six months, or, if available and agreed by all of the Lenders, one week thereafter, or (b) upon consent of all Lenders, such date thereafter as may be 
    6    

requested by the Borrower in its Borrowing Request or Interest Election Request, as applicable; provided that: (i) any Interest Period that would otherwise end on a day that is not a Business Day shall be extended to the next succeeding Business Day unless such Business Day falls in another calendar month, in which case such Interest Period shall end on the next preceding Business Day; (ii) any Interest Period that begins on the last Business Day of a calendar month (or on a day for which there is no numerically corresponding day in the calendar month at the end of such Interest Period) shall end on the last Business Day of the calendar month at the end of such Interest Period; (iii) no Interest Period shall extend beyond the Maturity Date; and (d) no tenor that has been removed from this definition pursuant to Section 3.03(b) shall be available for specification in any Borrowing Request or any Interest Election Request.
“SOFR” means a rate equal to the secured overnight financing rate as administered by the SOFR Administrator.
“Term SOFR” means, 
(a)    for any calculation with respect to a SOFR Loan, the Term SOFR Reference Rate for a tenor comparable to the applicable Interest Period on the day (such day, the “Periodic Term SOFR Determination Day”) that is two (2) U.S. Government Securities Business Days prior to the first day of such Interest Period, as such rate is published by the Term SOFR Administrator; provided, however, that if as of 5:00 p.m. (Eastern time) on any Periodic Term SOFR Determination Day the Term SOFR Reference Rate for the applicable tenor has not been published by the Term SOFR Administrator and a Benchmark Replacement Date with respect to the Term SOFR Reference Rate has not occurred, then Term SOFR will be the Term SOFR Reference Rate for such tenor as published by the Term SOFR Administrator on the first preceding U.S. Government Securities Business Day for which such Term SOFR Reference Rate for such tenor was published by the Term SOFR Administrator so long as such first preceding U.S. Government Securities Business Day is not more than three (3) U.S. Government Securities Business Days prior to such Periodic Term SOFR Determination Day, and
(b)    for any calculation with respect to an ABR Loan on any day, the Term SOFR Reference Rate for a tenor of one month on the day (such day, the “Alternate Base Rate Term SOFR Determination Day”) that is two (2) U.S. Government Securities Business Days prior to such day, as such rate is published by the Term SOFR Administrator; provided, however, that if as of 5:00 p.m. (Eastern time) on any Alternate Base Rate Term SOFR Determination Day the Term SOFR Reference Rate for the applicable tenor has not been published by the Term SOFR Administrator and a Benchmark Replacement Date with respect to the Term SOFR Reference Rate has not occurred, then Term SOFR will be the Term SOFR Reference Rate for such tenor as published by the Term SOFR Administrator on the first preceding U.S. Government Securities Business Day for which such Term SOFR Reference Rate for such tenor was published by the Term SOFR Administrator so long as such first preceding U.S. Government Securities Business Day is not more than three (3) U.S. Government Securities Business Days prior to such Alternate Base Rate Term SOFR Determination Day;
provided, further, that if Term SOFR determined as provided above (including pursuant to the proviso under clause (a) or clause (b) above) shall be less than the Floor, then Term SOFR shall be deemed to be the Floor.
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(b)    The following definitions are hereby added where alphabetically appropriate to read as follows:
“Adjusted Term SOFR” means, for any Interest Period, the rate per annum equal to (a) Term SOFR for such Interest Period plus (b) the Term SOFR Adjustment; provided that if Adjusted Term SOFR as so determined shall ever be less than the Floor, then Adjusted Term SOFR shall be deemed to be the Floor.
“Benchmark Transition Start Date” means, in the case of a Benchmark Transition Event, the earlier of (a) the applicable Benchmark Replacement Date and (b) if such Benchmark Transition Event is a public statement or publication of information of a prospective event, the 90th day prior to the expected date of such event as of such public statement or publication of information (or if the expected date of such prospective event is fewer than 90 days after such statement or publication, the date of such statement or publication).
“Bighorn Acquisition” means the acquisition, directly or indirectly, by the Borrower of the Bighorn Acquisition Properties pursuant to the terms and conditions of the Bighorn Acquisition Documents.
“Bighorn Acquisition Agreement” means that certain Purchase and Sale Agreement, by and among Bighorn Asset Company, LLC, a Delaware limited liability company, as seller, the Borrower, as purchaser and Parent dated January 30, 2022, as amended, restated, supplemented or otherwise modified from time to time. 

“Bighorn Acquisition BB Adjustment Amount” has the meaning assigned to such term in Section 2.07(j).

“Bighorn Acquisition BB Base Increase Amount” has the meaning assigned to such term in Section 2.07(j).

“Bighorn Acquisition Documents” means (a) the Bighorn Acquisition Agreement; and (b) all bills of sale, assignments, agreements, instruments and documents executed and delivered in connection therewith, as amended.

“Bighorn Acquisition Effective Date” has the meaning assigned to such term in Section 2.07(j).

“Bighorn Acquisition Effective Date Swap Agreements” has the meaning assigned to such term in Section 2.07(j).

“Bighorn Acquisition Outside Date” has the meaning assigned to such term in Section 2.07(j).

“Bighorn Acquisition Properties” means the Oil and Gas Properties and other Properties acquired by the Borrower or its Restricted Subsidiaries pursuant to the Bighorn Acquisition Documents. 

“Bighorn Reserve Report” means the reserve report dated December 22, 2021 with an effective date of January 1, 2022 and prepared by Parent with respect to the Bighorn Acquisition Properties.
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“Chisholm Acquisition” means the acquisition, directly or indirectly, by the Borrower of the Chisholm Acquisition Properties pursuant to the terms and conditions of the Chisholm Acquisition Documents.
“Chisholm Acquisition Agreement” means that certain Purchase and Sale Agreement, by and among Chisholm Energy Operating, LLC and Chisholm Energy Agent, Inc., collectively as seller, and the Borrower, as purchaser, dated December 15, 2021, as amended, restated, supplemented or otherwise modified from time to time. 

“Chisholm Acquisition Borrowing Base Reduction” has the meaning assigned to such term in Section 2.07(i).

“Chisholm Acquisition Deferred Consideration” means the Deferred Cash Consideration as such term is defined in Section 2.02(a) of the Chisholm Acquisition Agreement, as in effect on the date hereof.

“Chisholm Acquisition Documents” means (a) the Chisholm Acquisition Agreement; and (b) all bills of sale, assignments, agreements, instruments and documents executed and delivered in connection therewith, as amended.

“Chisholm Acquisition Effective Date” has the meaning assigned to such term in Section 2.07(i).

“Chisholm Acquisition Effective Date Swap Agreements” has the meaning assigned to such term in Section 2.07(i).

“Chisholm Acquisition Outside Date” has the meaning assigned to such term in Section 2.07(i).

“Chisholm Acquisition Properties” means the Oil and Gas Properties and other Properties acquired by the Borrower or its Restricted Subsidiaries pursuant to the Chisholm Acquisition Documents.

“Chisholm Reserve Report” means the reserve report dated October 22, 2021 with an effective date of October 1, 2021 and prepared by the Parent with respect to the Chisholm Acquisition Properties.

“Conforming Changes” means, with respect to either the use or administration of Term SOFR or the use, administration, adoption or implementation of any Benchmark Replacement, any technical, administrative or operational changes (including changes to the definition of “Alternate Base Rate,” the definition of “Business Day,” the definition of “U.S. Government Securities Business Day,” the definition of “Interest Period” or any similar or analogous definition (or the addition of a concept of “interest period”), timing and frequency of determining rates and making payments of interest, timing of borrowing requests or prepayment, conversion or continuation notices, the applicability and length of lookback periods, the applicability of Section 5.02 and other technical, administrative or operational matters) that the Administrative Agent decides may be appropriate to reflect the adoption and implementation of any such rate or to permit the use and administration thereof by the Administrative Agent in a manner substantially consistent with market practice (or, if the Administrative Agent decides that adoption of any portion of such market practice is not administratively feasible or if the Administrative Agent determines that no market 
    9    

practice for the administration of any such rate exists, in such other manner of administration as the Administrative Agent decides is reasonably necessary in connection with the administration of this Agreement and the other Loan Documents).
“Fifth Amendment” means that certain Amended and Restated Fifth Amendment to Credit Agreement, dated as of January 30, 2022, among the Borrower, the Parent, the Guarantors, the Administrative Agent and the Lenders party thereto.
“Fifth Amendment Acquisitions Effective Date” means the first date on which both the Chisholm Acquisition Effective Date and the Bighorn Acquisition Effective Date shall have occurred.
“Fifth Amendment Acquisitions Outside Date” means, (i) the Bighorn Acquisition Outside Date or (ii) if the Bighorn Acquisition Effective Date shall have occurred prior to the Chisholm Acquisition Outside Date, the Chisholm Acquisition Outside Date.
“Fifth Amendment Effective Date” has the meaning assigned to such term in the Fifth Amendment.  
“Fifth Amendment Senior Notes” means unsecured senior or unsecured senior subordinated notes issued by the Borrower after the Fifth Amendment Effective Date, the net cash proceeds of which are to be used to consummate, or repay Borrowings in connection with, the Chisholm Acquisition and the Bighorn Acquisition and to pay related fees and expenses.
“Fifth Amendment Senior Notes Trigger Event” means that the Borrower has (a) issued Fifth Amendment Senior Notes and has received at least $400,000,000 in gross proceeds therefrom; and (b) delivered to the Administrative Agent true and complete copies of the notes, indenture or other definitive document governing, evidencing or related to or guaranteeing the Fifth Amendment Senior Notes.
“Fifth Amendment Senior Notes Proceeds” means the net cash proceeds received by the Borrower from the issuance of the Fifth Amendment Senior Notes to the extent such net cash proceeds are held in a Deposit Account in which the Administrative Agent has been granted a first-priority Lien and that is subject to a Control Agreement.   
“SOFR Loan” means any Loan bearing interest at a rate based on Adjusted Term SOFR as provided in Section 3.02(b).
“Term SOFR Adjustment” means, for any calculation with respect to an ABR Loan or a SOFR Loan, a percentage per annum as set forth below for the applicable type of such Loan and (if applicable) Interest Period therefor:
ABR Loans:
			
	0.10%

SOFR Loans:
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	Interest Period
	Percentage

	One week
	0.10%

	One month
	0.10%

	Three months
	0.15%

	Six months
	0.25%

“Term SOFR Administrator” means CME Group Benchmark Administration Limited (CBA) (or a successor administrator of the Term SOFR Reference Rate selected by the Administrative Agent in its reasonable discretion).
“Term SOFR Reference Rate” means the forward-looking term rate based on SOFR.
“U.S. Government Securities Business Day” means any day except for (a) a Saturday, (b) a Sunday or (c) a day on which the Securities Industry and Financial Markets Association recommends that the fixed income departments of its members be closed for the entire day for purposes of trading in United States government securities; provided, that for purposes of notice requirements in Section 2.03, Section 2.04(b) and Section 2.09(b), in each case, such day is also a Business Day.
(c)    The definition of “Borrowing” is hereby amended by replacing the word “Eurodollar” contained therein with “SOFR”.
(d)    The last sentence of the definition of “EBITDAX” is hereby amended and restated in its entirety to read as follows:
Notwithstanding anything herein to the contrary: EBITDAX for the Reference Period ending on June 30, 2022 shall be calculated by multiplying EBITDAX for the fiscal quarter ending on such date by four (4); EBITDAX for the Reference Period ending on September 30, 2022 shall be calculated by multiplying EBITDAX for the two consecutive fiscal quarters ending on such date by two (2); and EBITDAX for the Reference Period ending on December 31, 2022 shall be calculated by multiplying EBITDAX for the three consecutive fiscal quarters ending on such date by four-thirds (4/3).
(e)    The definition of “Consolidated Cash Balance” is hereby amended by replacing the phrase “and (vii) any proceeds of a Borrowing made in the preceding 5 Business Days, which the Borrower expects to use to fund the purchase price or deposits of any acquisition permitted under this Agreement (to the extent such use of proceeds is certified to by the Borrower in the applicable Borrowing Request)” contained therein with the phrase “, (vii) any proceeds of a Borrowing made in the preceding 5 Business Days, which the Borrower expects to use to fund the purchase price or deposits of any acquisition permitted under this Agreement (to the extent such use of proceeds is certified to by the Borrower in the applicable Borrowing Request) and (viii) until the earlier to occur of the Fifth Amendment Acquisitions Effective Date and the Fifth Amendment Acquisitions Outside Date, the Fifth Amendment Senior Notes Proceeds”.
(f)    The definition of “Type” is hereby amended by replacing the reference to “the Adjusted LIBO Rate” contained therein with “Adjusted Term SOFR”.
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(g)    Each of the following defined terms is hereby deleted in its entirety: “Adjusted LIBO Rate”, “Announcements”, “Benchmark Replacement Conforming Changes”, “Corresponding Tenor”, “Daily Simple SOFR”, “Eurodollar”, “FCA”, “IBA”, “LIBO Rate”, “Reference Time”, “SOFR Administrator’s Website”, “Statutory Reserve Rate”, “Term SOFR Notice”, “Term SOFR Transition Event” and “USD LIBOR”.
2.4    Amendment to Section 1.03.  Section 1.03 is hereby amended by replacing each instance of the word “Eurodollar” contained therein with “SOFR”.
2.5    Amendment to Section 1.08.  Section 1.08 is hereby amended and restated in its entirety to read as follows:
Section 1.08    Rates. The Administrative Agent does not warrant or accept any responsibility for, and shall not have any liability with respect to, (a) the continuation of, administration of, submission of, calculation of or any other matter related to the Term SOFR Reference Rate, Adjusted Term SOFR or Term SOFR, or any component definition thereof or rates referred to in the definition thereof, or with respect to any alternative, successor or replacement rate thereto (including any Benchmark Replacement), including whether the composition or characteristics of any such alternative, successor or replacement rate (including any Benchmark Replacement), as it may or may not be adjusted pursuant to Section 3.03(b), will be similar to, or produce the same value or economic equivalence of, or have the same volume or liquidity as, the Term SOFR Reference Rate, Adjusted Term SOFR, Term SOFR or any other Benchmark prior to its discontinuance or unavailability, or (b) the effect, implementation or composition of any Conforming Changes.  The Administrative Agent and its Affiliates or other related entities may engage in transactions that affect the calculation of the Term SOFR Reference Rate, Adjusted Term SOFR, Term SOFR, any alternative, successor or replacement rate (including any Benchmark Replacement) or any relevant adjustments thereto and such transactions may be adverse to the Borrower.  The Administrative Agent may select information sources or services in its reasonable discretion to ascertain the Term SOFR Reference Rate, Adjusted Term SOFR or Term SOFR, or any other Benchmark, any component definition thereof or rates referred to in the definition thereof, in each case pursuant to the terms of this Agreement, and shall have no liability to the Borrower, any Lender or any other person or entity for damages of any kind, including direct or indirect, special, punitive, incidental or consequential damages, costs, losses or expenses (whether in tort, contract or otherwise and whether at law or in equity), for any error or calculation of any such rate (or component thereof) provided by any such information source or service.
2.6    Amendment to Section 2.02.  Section 2.02 is hereby amended by replacing each instance of the word “Eurodollar” contained therein with “SOFR”.
2.7    Amendment to Section 2.03.  Section 2.03 is hereby amended by (a) replacing each instance of the word “Eurodollar” contained therein with “SOFR” and (b) replacing the reference to “Business Days” contained therein with “U.S. Government Securities Business Days”.
2.8    Amendment to Section 2.04.  Section 2.04 is hereby amended by replacing each instance of the word “Eurodollar” contained therein with “SOFR”.
2.9    Amendment to Section 2.05.  Section 2.05 is hereby amended by replacing each instance of the word “Eurodollar” contained therein with “SOFR”.
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2.10    Amendment to Section 2.07(a).  The last sentence of Section 2.07(a) is hereby amended and restated to read as follows: “Notwithstanding the foregoing, the Borrowing Base may be subject to further adjustments in between Scheduled Redeterminations from time to time pursuant to Section 2.07(e), Section 2.07(f), Section 2.07(h), Section 2.07(i), Section 2.07(j), Section 2.07(k) or Section 8.12(c).”
2.11    Amendment to Section 2.07(f).  The first sentence of Section 2.07(f) is hereby amended and restated in its entirety to read as follows:
Notwithstanding anything to the contrary contained herein, upon the incurrence of (i) any Permitted Additional Debt (other than Fifth Amendment Senior Notes in an aggregate principal amount up to $750,000,000, to the extent such Debt is issued during the period commencing on the Fifth Amendment Effective Date and ending on the first Scheduled Redetermination Date to occur thereafter) after the Effective Date in reliance on Section 9.02(g) or Section 9.02(h) or (ii) any Permitted Refinancing Debt in reliance on Section 9.02(i) in a principal amount in excess of the then-outstanding aggregate principal amount of Permitted Additional Debt or Permitted Refinancing Debt being refinanced with such Permitted Refinancing Debt, then, in each case, the Borrowing Base then in effect shall be reduced immediately upon the date of such incurrence by an amount equal to the product of 0.25 multiplied by (x) the stated principal amount of such Permitted Additional Debt incurred (in the case of clause (i) above) or (y) the amount of such excess Permitted Refinancing Debt incurred (in the case of clause (ii) above).
2.12    Amendment to Section 2.07(g).  Section 2.07(g) is hereby amended by adding a new subsection (iv) to the end thereof to read as follows:
(iv)    (A) On the Chisholm Acquisition Effective Date, the Aggregate Elected Borrowing Base Commitments then in effect shall be automatically increased: (1) if (x) the Fifth Amendment Senior Notes Trigger Event shall have occurred on or prior to the Chisholm Acquisition Effective Date and (y) the Aggregate Elected Borrowing Base Commitments then in effect are less than $650,000,000 on such date, to an amount designated by Borrower in writing at least three (3) Business Days prior the Chisholm Acquisition Effective Date not to exceed $650,000,000 or (2) if the Fifth Amendment Senior Notes Trigger Event shall not have occurred on or prior to the Chisholm Acquisition Effective Date, to an amount equal to $825,000,000; and (B) on the Bighorn Acquisition Effective Date, the Aggregate Elected Borrowing Base Commitments then in effect shall be automatically increased: (1) if the Fifth Amendment Senior Notes Trigger Event shall have occurred on or prior to the Bighorn Acquisition Effective Date, to an amount designated by Borrower in writing at least three (3) Business Days prior to the Bighorn Acquisition Effective Date not to exceed the difference of (x) $1,325,000,000 and (y) the amount of Fifth Amendment Senior Notes Proceeds up to an amount equal to $500,000,000; or (2) if the Fifth Amendment Senior Notes Trigger Event shall not have occurred on or prior to the Bighorn Acquisition Effective Date, increased by an amount designated by Borrower in writing at least three (3) Business Days prior the Bighorn Acquisition Effective Date not to exceed $500,000,000.  The Administrative Agent may provide notice to the Borrower and the Lenders of the amount of the Aggregate Elected Borrowing Base Commitments on the Chisholm Acquisition Effective Date and the Bighorn Acquisition Effective Date, in each case, after giving effect to the adjustments to the Aggregate Elected Borrowing Base Commitments contained in this Section 2.07(g)(iv).
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2.13    Amendment to Section 2.07.  Section 2.07 is hereby by adding new Section 2.07(i), Section 2.07(j) and Section 2.07(k) to the end thereof to read as follows:
(i)    Automatic Increase of Borrowing Base on Chisholm Acquisition Effective Date. If the Chisholm Acquisition has been consummated on or before March 31, 2022 (the “Chisholm Acquisition Outside Date”), then, subject to the conditions set forth in this Section 2.07(i), the Borrowing Base then in effect shall be automatically increased by an amount equal to $175,000,000 (the “Chisholm Acquisition BB Increase”, and the Borrowing Base as increased by the Chisholm Acquisition Borrowing Base Increase Amount, the “Chisholm Acquisition Effective Date Borrowing Base”) without any further action by the Borrower, the Administrative Agent, the Issuing Banks or the Lenders, effective and applicable to the Borrower, the Administrative Agent, the Issuing Banks and the Lenders on the Business Day on which each of the following conditions has been satisfied (or waived in accordance with Section 12.02) (such date, the “Chisholm Acquisition  Effective Date”):
(i)    The Chisholm Acquisition shall have been (or contemporaneously with the Chisholm Acquisition Effective Date shall be) consummated in accordance with the terms of the Chisholm Acquisition Documents, without giving effect to any waiver, modification or consent thereunder that is adverse to the interests of the Lenders (in their capacities as such) without the written consent of the Administrative Agent, and in connection therewith the Borrower (and/or one or more of its Restricted Subsidiaries) shall have acquired (directly or indirectly) at least 85% of the total value of the Chisholm Acquisition Properties.
(ii)    The Administrative Agent shall have received an officer’s certificate from the Borrower, certifying that (A) the Chisholm Acquisition has been consummated in accordance with applicable law and the terms of the Chisholm Acquisition Agreement without giving effect to any waiver, modification or consent thereunder that is adverse to the interests of the Lenders (in their capacities as such), and in connection therewith, the Borrower has acquired at least 85% of the total value of the proved Oil and Gas Properties evaluated in the Chisholm Reserve Report, (B) as to the final purchase price for the Chisholm Acquisition Properties after giving effect to all adjustments as of the closing date contemplated by the Chisholm Acquisition Documents and specifying, by category, the amount of such adjustment; (C) that attached thereto is a true and complete list of the Properties that have been excluded from the Chisholm Acquisition pursuant to the terms of the Chisholm Acquisition Documents, specifying with respect thereto the basis of exclusion as (1) title defect, (2) preferential purchase right or consent right, (3) environmental or (4) casualty loss; (D) that attached thereto is a true and complete list of the Oil and Gas Properties for which the seller has elected to cure a title defect; (E) that attached thereto is a true and complete list of the Oil and Gas Properties for which Chisholm has elected to remediate an adverse environmental condition; (F) that attached thereto is a true and complete list of the Oil and Gas Properties which are currently pending final decision by a third party regarding purchase of such property in accordance with any preferential right or consent right; (G) that attached thereto is a true, complete and executed copy of the closing settlement statement for the Chisholm Acquisition; and (H) that true and complete executed copies of all Chisholm Acquisition Documents have been delivered to the Administrative Agent (together with all amendments, supplements, waivers or consents with respect to any provision thereof).
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(iii)    No Default, Event of Default or Borrowing Base Deficiency shall have occurred and be continuing on the Chisholm Acquisition Effective Date.
(iv)    The Administrative Agent shall have received (a) evidence satisfactory to it that all Liens on the Chisholm Acquisition Properties (other than Liens permitted under Section 9.03) have been released or terminated, subject only to the filing of applicable terminations, releases or assignments and (b) duly executed recordable releases and terminations with respect thereto, in form and substance satisfactory to the Administrative Agent.
(v)    The Administrative Agent, the Arrangers and the Lenders shall have received all fees and other amounts due and payable on or prior to the Chisholm Acquisition Effective Date, including, to the extent invoiced at least two Business Days prior to satisfaction of all other applicable conditions, reimbursement or payment of all reasonable out-of-pocket expenses required to be reimbursed or paid by the Borrower under this Agreement.
(vi)    The Administrative Agent shall be reasonably satisfied with the environmental condition of the Chisholm Acquisition Properties.
(vii)    The Administrative Agent shall have received duly executed and notarized deeds of trust and/or mortgages or supplements to existing deeds of trust and/or mortgages in form reasonably satisfactory to the Administrative Agent, to the extent necessary so that the Mortgaged Properties represent at least 85% of the total value of the proved Oil and Gas Properties evaluated in the most recently delivered Reserve Report, the Bighorn Reserve Report (if the Bighorn Acquisition Effective Date shall have occurred) and the Chisholm Reserve Report (on a combined basis).
(viii)    The Administrative Agent shall have received, together with title information previously delivered to the Administrative Agent, title information reasonably satisfactory to the Administrative Agent setting forth the status of title to at least 85% of the total value of the proved Oil and Gas Properties evaluated in the most recently delivered Reserve Report, the Bighorn Reserve Report (if the Bighorn Acquisition Effective Date shall have occurred) and the Chisholm Reserve Report (on a combined basis).
(ix)    The Administrative Agent shall have received evidence satisfactory to the Administrative Agent that, after giving effect to the transactions (including the funding of Loans to occur on the Chisholm Acquisition Effective Date) contemplated to occur on the Chisholm Acquisition Effective Date, the positive difference between the Loan Limit and the total Revolving Credit Exposures equals or exceeds (A) if the Bighorn Acquisition Effective Date has not occurred, $100,000,000 and (B) if the Bighorn Acquisition Effective Date has occurred, $160,000,000.
(x)    The Administrative Agent shall have received such other related documents and information with respect to the Chisholm Acquisition as the Administrative Agent shall have reasonably requested.
The Administrative Agent is hereby authorized and directed to declare the Chisholm Acquisition BB Increase to be effective (and the Chisholm Acquisition Effective Date shall occur) when it has received documents confirming 
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compliance with the conditions set forth in this Section 2.07(i) or the waiver of such condition in accordance with Section 12.02.  Such declaration shall be final, conclusive and binding upon all parties to this Agreement for all purposes.  For purposes of determining compliance with the conditions specified in this Section 2.07(i), each Lender shall be deemed to have consented to, approved or accepted, or to be satisfied with, each document or other matter required thereunder to be consented to or approved by or acceptable or satisfactory to such Lender, unless the Administrative Agent shall have received written notice from such Lender prior to the Chisholm Acquisition Effective Date specifying its objection thereto.  Notwithstanding anything to the contrary contained herein, if the Chisholm Acquisition Effective Date does not occur on or prior to 5:00 p.m. (Houston time) on the Chisholm Acquisition Outside Date, then it shall be deemed that none of the conditions contained in this Section 2.07(i) shall be satisfied, and the Chisholm Acquisition Effective Date shall not occur (and for the avoidance of doubt, this Section 2.07(i) shall be of no force or effect).

If the Bighorn Acquisition Effective Date has not occurred, on the Chisholm Acquisition Effective Date, immediately prior to giving effect to the Chisholm Acquisition BB Increase, each Lender has, in consultation with the Borrower, agreed to, and, for an agreed consideration, does hereby reallocate its Maximum Credit Amount, Commitment and Loans (and participations in Letters of Credit and LC Disbursements) (the “Chisholm Acquisition Reallocation”).  On the Chisholm Acquisition Effective Date, and after giving effect to the Chisholm Acquisition Reallocation, the Maximum Credit Amount and Applicable Percentage of each Lender shall be as set forth on Annex I-A (and Annex I to this Agreement is deemed to be amended and restated in its entirety on the Chisholm Acquisition Effective Date to read as set forth on Annex I-A attached hereto).  Each of the Administrative Agent, each Lender, the Issuing Banks and the Borrower hereby consents and agrees to the Chisholm Acquisition Reallocation, including each Lender’s assignment of its Maximum Credit Amount, Commitment, Loans and participations in Letters of Credit to the extent necessary to effect the Chisholm Acquisition Reallocation.  With respect to the Chisholm Acquisition Reallocation, each Lender shall be deemed to have sold and assigned its Maximum Credit Amount, Commitment, Loans and participations in Letters of Credit, and each Lender shall be deemed to have acquired the Maximum Credit Amount, Commitment, Loans and participations in Letters of Credit allocated to it from each Lender, pursuant to the terms and conditions of the Assignment and Assumption attached as Exhibit G hereto (the “Chisholm Assignment Agreement”), as if each Lender had executed such Chisholm Assignment Agreement with respect to the Chisholm Acquisition Reallocation, pursuant to which, (i) each Lender shall be an “Assignee”, (ii) each Lender shall be an “Assignor” and (iii) the term “Effective Date” shall be the Chisholm Acquisition Effective Date.  The Administrative Agent hereby waives the fee payable to the Administrative Agent pursuant to Section 12.04(b) in connection with the Chisholm Acquisition Reallocation and the Chisholm Assignment Agreement.  The Chisholm Acquisition Reallocation shall be without recourse to each Lender and, except as expressly provided in the Chisholm Assignment Agreement, without representation or warranty by such Lender.  On the Chisholm Acquisition  Effective Date, the Administrative Agent shall take the actions specified in Section 12.04(b)(iv), including recording the assignments described herein in the Register, and such assignments shall be effective for all purposes of this Agreement.  If on the Chisholm Acquisition Effective Date, any SOFR Loans have been funded, then the Borrower shall be obligated to pay any breakage fees or costs that are payable pursuant to Section 5.02 in connection with the 
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reallocation of such outstanding SOFR Loans to effectuate the provisions of this paragraph.
Notwithstanding the foregoing or anything to the contrary contained herein, if, on the Chisholm Acquisition Effective Date, the Borrower does not acquire at least (i) 95% of the total value of the proved Oil and Gas Properties evaluated in the Chisholm Reserve Report and (ii) 95% of the total value of the proved developed producing Oil and Gas Properties evaluated in the Chisholm Reserve Report, pursuant to the Chisholm Acquisition Agreement, then the Chisholm Acquisition Effective Date Borrowing Base, as applicable, shall be reduced, effective immediately on the Chisholm Acquisition Effective Date (for the avoidance of doubt, prior to the funding of any Loans or any other extensions of credit to be made on the Chisholm Acquisition Effective Date), by an amount equal to the Borrowing Base value attributable to the proved Oil and Gas Properties evaluated in the Chisholm Reserve Report that were not acquired by the Borrower on the Chisholm Acquisition Effective Date, as determined by the Administrative Agent, and confirmed by the Required Lenders, in each case, in good faith and in the Administrative Agent’s and each such Lender’s sole discretion and in a manner consistent with the Administrative Agent’s and such Lender’s normal oil and gas lending criteria as it exists on the Chisholm Acquisition Effective Date (the adjustment contained in this paragraph, the “Chisholm Acquired Properties Borrowing Base Reduction”).
(j)    Automatic Increase of Borrowing Base on Bighorn Acquisition Effective Date. If the Bighorn Acquisition has been consummated on or before July 13, 2022 (the “Bighorn Acquisition Outside Date”), then, subject to the conditions set forth in this Section 2.07(j), the Borrowing Base then in effect shall be automatically increased by an amount equal to: (x) if the Chisholm Acquisition Effective Date has occurred prior to the Bighorn Acquisition Effective Date, $500,000,000 or (y) if the Chisholm Acquisition Effective Date has not occurred prior to the Bighorn Acquisition Effective Date, the difference of (i) $500,000,000 (the “Bighorn Acquisition BB Base Increase Amount”) and (ii) the Bighorn Acquisition BB Adjustment Amount (the increase described in the foregoing clause (x) or (y), the “Bighorn Acquisition BB Increase”, and the Borrowing Base as increased by the Bighorn Acquisition BB Increase on the Bighorn Acquisition Effective Date (as defined below), the “Bighorn Acquisition Effective Date Borrowing Base”) without any further action by the Borrower, the Administrative Agent, the Issuing Banks or the Lenders, effective and applicable to the Borrower, the Administrative Agent, the Issuing Banks and the Lenders on the Business Day on which each of the following conditions has been satisfied (or waived in accordance with Section 12.02) (such date, the “Bighorn Acquisition Effective Date”):
(i)    The Bighorn Acquisition shall have been (or contemporaneously with the Bighorn Acquisition Effective Date shall be) consummated in accordance with the terms of the Bighorn Acquisition Documents, without giving effect to any waiver, modification or consent thereunder that is adverse to the interests of the Lenders (in their capacities as such) without the written consent of the Administrative Agent, and in connection therewith the Borrower (and/or one or more of its Restricted Subsidiaries) shall have acquired (directly or indirectly) at least 80% of the total value of the Bighorn Acquisition Properties.
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(ii)    The Administrative Agent shall have received an officer’s certificate from the Borrower, certifying that (A) the Bighorn Acquisition has been consummated in accordance with applicable law and the terms of the Bighorn Acquisition Agreement without giving effect to any waiver, modification or consent thereunder that is adverse to the interests of the Lenders (in their capacities as such), and in connection therewith, the Borrower has acquired at least 85% of the total value of the proved Oil and Gas Properties evaluated in the Bighorn Reserve Report, (B) as to the final purchase price for the Bighorn Acquisition Properties after giving effect to all adjustments as of the closing date contemplated by the Bighorn Acquisition Documents and specifying, by category, the amount of such adjustment; (C) that attached thereto is a true and complete list of the Properties that have been excluded from the Bighorn Acquisition pursuant to the terms of the Bighorn Acquisition Documents, specifying with respect thereto the basis of exclusion as (1) title defect, (2) preferential purchase right or consent right, (3) environmental or (4) casualty loss; (D) that attached thereto is a true and complete list of the Oil and Gas Properties for which the seller has elected to cure a title defect; (E) that attached thereto is a true and complete list of the Oil and Gas Properties for which Bighorn has elected to remediate an adverse environmental condition; (F) that attached thereto is a true and complete list of the Oil and Gas Properties which are currently pending final decision by a third party regarding purchase of such property in accordance with any preferential right or consent right; (G) that attached thereto is a true, complete and executed copy of the closing settlement statement for the Bighorn Acquisition; and (H) that true and complete executed copies of all Bighorn Acquisition Documents have been delivered to the Administrative Agent (together with all amendments, supplements, waivers or consents with respect to any provision thereof).
(iii)    No Default, Event of Default or Borrowing Base Deficiency shall have occurred and be continuing on the Bighorn Acquisition Effective Date.
(iv)    The Administrative Agent shall have received (a) evidence satisfactory to it that all Liens on the Bighorn Acquisition Properties (other than Liens permitted under Section 9.03) have been released or terminated, subject only to the filing of applicable terminations, releases or assignments and (b) duly executed recordable releases and terminations with respect thereto, in form and substance satisfactory to the Administrative Agent.
(v)    The Administrative Agent, the Arrangers and the Lenders shall have received all fees and other amounts due and payable on or prior to the Bighorn Acquisition Effective Date, including, to the extent invoiced at least two Business Days prior to satisfaction of all other applicable conditions, reimbursement or payment of all reasonable out-of-pocket expenses required to be reimbursed or paid by the Borrower hereunder.
(vi)    The Administrative Agent shall be reasonably satisfied with the environmental condition of the Bighorn Acquisition Properties.
(vii)    The Administrative Agent shall have received duly executed and notarized deeds of trust and/or mortgages or supplements to existing deeds of trust and/or mortgages in form reasonably satisfactory to the Administrative Agent, to the extent necessary so that the Mortgaged Properties represent at least 85% of the total value of the proved Oil and Gas Properties evaluated in the most recently delivered Reserve Report, the Chisholm Reserve 
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Report (if the Chisholm Acquisition Effective Date shall have occurred) and the Bighorn Acquisition Reserve Report (on a combined basis).
(viii)    The Administrative Agent shall have received, together with title information previously delivered to the Administrative Agent, title information reasonably satisfactory to the Administrative Agent setting forth the status of title to at least 85% of the total value of the proved Oil and Gas Properties evaluated in the most recently delivered Reserve Report, the Chisholm Reserve Report (if the Chisholm Acquisition Effective Date shall have occurred) and the Bighorn Acquisition Reserve Report (on a combined basis).
(ix)    The Administrative Agent shall have received evidence satisfactory to the Administrative Agent that, after giving effect to the transactions contemplated to occur on the Bighorn Acquisition Effective Date (including the funding of Loans to occur on the Bighorn Acquisition Effective Date), the positive difference between the Loan Limit and the total Revolving Credit Exposures equals or exceeds $160,000,000.
(x)    The Administrative Agent shall have received evidence satisfactory to the Administrative Agent that the Borrower entered into Swap Agreements with one or more Approved Counterparties hedging minimum notional volumes of at least twenty-five percent (25%) of the reasonably projected production of crude oil and natural gas, each calculated separately, from the Bighorn Acquisition Properties constituting proved developed producing Oil and Gas Properties evaluated in the Bighorn Reserve Report for each full calendar month during the period from and including the second full calendar month following the “Scheduled Closing Date” (as defined in the Bighorn Acquisition Agreement) through and including December 31, 2023.
(xi)    The Administrative Agent shall have received such other related documents and information with respect to the Bighorn Acquisition as the Administrative Agent shall have reasonably requested.
The Administrative Agent is hereby authorized and directed to declare the Bighorn Acquisition BB Increase to be effective (and the Bighorn Acquisition Effective Date shall occur) when it has received documents confirming compliance with the conditions set forth in this Section 2.07(j) or the waiver of such condition in accordance with Section 12.02.  Such declaration shall be final, conclusive and binding upon all parties to this Agreement for all purposes.  For purposes of determining compliance with the conditions specified in this Section 2.07(j), each Lender shall be deemed to have consented to, approved or accepted, or to be satisfied with, each document or other matter required thereunder to be consented to or approved by or acceptable or satisfactory to such Lender, unless the Administrative Agent shall have received written notice from such Lender prior to the Bighorn Acquisition Effective Date specifying its objection thereto.  Notwithstanding anything to the contrary contained herein, if the Bighorn Acquisition Effective Date does not occur on or prior to 5:00 p.m. (Houston time) on the Bighorn Acquisition Outside Date, then it shall be deemed that none of the conditions contained in this Section 2.07(j) shall be satisfied, and the Bighorn Acquisition Effective Date shall not occur (and for the avoidance of doubt, this Section 2.07(j) shall be of no force or effect).
On the Bighorn Acquisition Effective Date, immediately prior to giving effect to the Bighorn Acquisition BB Increase, each Lender has, in consultation 
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with the Borrower, agreed to, and, for an agreed consideration, does hereby reallocate its Maximum Credit Amount, Commitment and Loans (and participations in Letters of Credit and LC Disbursements) (the “Bighorn Acquisition Reallocation”).  On the Bighorn Acquisition Effective Date, and after giving effect to the Bighorn Acquisition Reallocation, the Maximum Credit Amount and Applicable Percentage of each Lender shall be as set forth on Annex I-B (and Annex I to this Agreement is deemed to be amended and restated in its entirety on the Bighorn Acquisition Effective Date to read as set forth on Annex I-B attached hereto).  Each of the Administrative Agent, each Lender, the Issuing Banks and the Borrower hereby consents and agrees to the Bighorn Acquisition Reallocation, including each Lender’s assignment of its Maximum Credit Amount, Commitment, Loans and participations in Letters of Credit to the extent necessary to effect the Bighorn Acquisition Reallocation.  With respect to the Bighorn Acquisition Reallocation, each Lender shall be deemed to have sold and assigned its Maximum Credit Amount, Commitment, Loans and participations in Letters of Credit, and each Lender shall be deemed to have acquired the Maximum Credit Amount, Commitment, Loans and participations in Letters of Credit allocated to it from each Lender, pursuant to the terms and conditions of the Assignment and Assumption attached as Exhibit G hereto (the “Bighorn Assignment Agreement”), as if each Lender had executed such Assignment Agreement with respect to the Bighorn Acquisition Reallocation, pursuant to which, (i) each Lender shall be an “Assignee”, (ii) each Lender shall be an “Assignor” and (iii) the term “Effective Date” shall be the Bighorn Acquisition Effective Date.  The Administrative Agent hereby waives the fee payable to the Administrative Agent pursuant to Section 12.04(b) in connection with the Bighorn Acquisition Reallocation and the Bighorn Assignment Agreement.  The Bighorn Acquisition Reallocation shall be without recourse to each Lender and, except as expressly provided in the Bighorn Assignment Agreement, without representation or warranty by such Lender.  On the Bighorn Acquisition Effective Date, the Administrative Agent shall take the actions specified in Section 12.04(b)(iv), including recording the assignments described herein in the Register, and such assignments shall be effective for all purposes of this Agreement.  If on the Bighorn Acquisition Effective Date, any SOFR Loans have been funded, then the Borrower shall be obligated to pay any breakage fees or costs that are payable pursuant to Section 5.02 in connection with the reallocation of such outstanding SOFR Loans to effectuate the provisions of this paragraph.
Notwithstanding the foregoing or anything to the contrary contained herein, if, on the Bighorn Acquisition Effective Date, the Borrower does not acquire at least (i) 95% of the total value of the proved Oil and Gas Properties evaluated in the Bighorn Reserve Report and (ii) 95% of the total value of the proved developed producing Oil and Gas Properties evaluated in the Bighorn Reserve Report, pursuant to the Bighorn Acquisition Agreement, then the Bighorn Acquisition Effective Date Borrowing Base shall be reduced, effective immediately on the Bighorn Acquisition Effective Date (for the avoidance of doubt, prior to the funding of any Loans or any other extensions of credit to be made on the Bighorn Acquisition Effective Date), by an amount equal to the Borrowing Base value attributable to the proved Oil and Gas Properties evaluated in the Bighorn Acquisition Reserve Report that were not acquired by the Borrower on the Bighorn Acquisition Effective Date, as determined by the Administrative Agent, and confirmed by the Required Lenders, in each case, in good faith and in the Administrative Agent’s and each such Lender’s sole discretion and in a manner consistent with the Administrative Agent’s and such Lender’s normal oil and gas lending criteria as it exists on the Bighorn 
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Acquisition Effective Date (the “Bighorn Acquired Properties Borrowing Base Reduction”).  The Bighorn Acquisition Effective Date Borrowing Base as reduced by the Bighorn Acquired Properties Borrowing Base Reduction shall become the new Borrowing Base immediately, effective and applicable to the Borrower, the Administrative Agent, the Issuing Banks and the Lenders on the Bighorn Acquisition Effective Date (for the avoidance of doubt, prior to the funding of any Loans or any other extensions of credit to be made on the Bighorn Acquisition Effective Date or such later date, as applicable) until the next redetermination or modification thereof under this Agreement.  For the avoidance of doubt, the redetermination of the Borrowing Base to occur on the Bighorn Acquisition Effective Date pursuant to the Bighorn Acquired Properties Borrowing Base Reduction, shall not constitute a Scheduled Redetermination or an Interim Redetermination.
Notwithstanding the foregoing or anything to the contrary contained herein, at any time prior to February 28, 2022, if the Chisholm Acquisition Effective Date has not occurred at such time, the Borrower may request in writing (such request, the “Adjustment Determination Notice”) to the Administrative Agent that the Required Lenders determine the amount of the reduction, if any, of the Bighorn Acquisition BB Base Increase Amount on the Bighorn Acquisition Effective Date assuming that the Chisholm Acquisition Effective Date will not have occurred on or prior to the Bighorn Acquisition Effective Date (the amount of such reduction, the “Bighorn Acquisition BB Adjustment Amount”).  If prior to March 1, 2022, the Borrower does not deliver the Adjustment Determination Notice and the Chisholm Acquisition Effective Date has not occurred on such date, then the Borrower shall be deemed automatically to have executed and delivered to the Administrative Agent the Adjustment Determination Notice on such date.  Concurrently with the delivery or the deemed delivery of the Adjustment Determination Notice, as applicable, the Borrower shall deliver an updated pro forma financial forecast giving effect to the consummation of the Bighorn Acquisition on the Bighorn Acquisition Effective Date (and excluding, for the avoidance of doubt, the Chisholm Acquisition), which shall be in form and substance satisfactory to the Administrative Agent in its sole discretion (the “Financial Forecast”).  Promptly after its receipt (or deemed receipt) of the Adjustment Determination Notice and the Financial Forecast, the Administrative Agent shall, in good faith, propose a Bighorn Acquisition BB Adjustment Amount (the “Proposed Bighorn Acquisition BB Adjustment Amount”) based upon the most recently delivered Reserve Report and the Bighorn Reserve Report only (and, for the avoidance of doubt, excluding any Oil and Gas Properties evaluated in the Chisholm Reserve Report) and such other information (including, without limitation, (x) the Financial Forecast and (y) the status of title information with respect to the Oil and Gas Properties as described in the Engineering Reports and the existence of any other Debt) as the Administrative Agent deems appropriate in its sole discretion and consistent with its normal oil and gas lending criteria as it exists at the particular time.  The Required Lenders shall approve or disapprove of the Proposed Bighorn Acquisition BB Adjustment Amount in a manner substantially consistent with the procedures set forth in Section 2.07(c)(iii).  After the Bighorn Acquisition BB Adjustment Amount is approved or is deemed to have been approved by the Required Lenders, the Administrative Agent shall notify the Borrower and the Lenders of the amount of the Bighorn Acquisition BB Adjustment Amount.  For the avoidance of doubt, the determination of the Bighorn Acquisition BB Adjustment Amount shall not constitute a Scheduled Redetermination or an Interim Redetermination.
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 (k)    Borrowing Base on the Fifth Amendment Acquisitions Effective Date.  Notwithstanding anything to the contrary contained herein, if the Bighorn Acquisition Effective Date occurs prior to the Chisholm Acquisition Effective Date, then the Borrowing Base in effect immediately after giving effect to the Borrowing Base increase pursuant to Section 2.07(i) on the Chisholm Amendment Effective Date, shall be automatically redetermined to be an amount equal to  $1,325,000,000 minus the Chisholm Acquired Properties Borrowing Base Reduction, if any, minus the Bighorn Acquired Properties Borrowing Base Reduction, if any, minus the amount of all reductions to the Borrowing Base pursuant to Section 2.07(e), Section 2.07(f) and Section 8.12(c) during the period from and including the Fifth Amendment Effective Date through and including the Fifth Amendment Acquisitions Effective Date (the “Fifth Amendment Acquisitions Effective Date Borrowing Base”).  The Fifth Amendment Acquisitions Effective Date Borrowing Base shall become the new Borrowing Base immediately, effective and applicable to the Borrower, the Administrative Agent, the Issuing Banks and the Lenders on the Fifth Amendment Acquisitions Effective Date (for the avoidance of doubt, prior to the funding of any Loans or any other extensions of credit to be made on the Fifth Amendment Acquisitions Effective Date) until the next redetermination or modification thereof under this Agreement. Notwithstanding the foregoing, the Borrowing Base may be subject to further adjustments from time to time pursuant to Section 2.07(e), Section 2.07(f) or Section 8.12(c). 
2.14    Amendment to Section 3.02(b).  Section 3.02(b) is hereby amended and restated in its entirety to read as follows:
(b)    SOFR Loans.  The Loans comprising each SOFR Borrowing shall bear interest at Adjusted Term SOFR for the Interest Period in effect for such Borrowing plus the Applicable Margin, but in no event to exceed the Highest Lawful Rate.
2.15    Amendment to Section 3.02(d).  Section 3.02(e) is hereby amended by replacing each instance of the word “Eurodollar” contained therein with “SOFR”.
2.16    Amendment to Section 3.02(e).  Section 3.02(d) is hereby amended by replacing the phrase “Adjusted LIBO Rate or LIBO Rate” contained therein with “Adjusted Term SOFR or Term SOFR”.
2.17    Amendment to Section 3.02.  Section 3.02 is hereby amended by adding a new Section 3.02(f) to the end thereof to read as follows:
(f)    Term SOFR Conforming Changes.  In connection with the use or administration of Term SOFR, the Administrative Agent will have the right to make Conforming Changes from time to time and, notwithstanding anything to the contrary herein or in any other Loan Document, any amendments implementing such Conforming Changes will become effective without any further action or consent of any other party to this Agreement or any other Loan Document.  The Administrative Agent will promptly notify the Borrower and the Lenders of the effectiveness of any Conforming Changes in connection with the use or administration of Term SOFR.
2.18    Amendment to Section 3.03.  Section 3.03 is hereby amended and restated in its entirety to read as follows:
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Section 3.03    Alternate Rate of Interest.  
(a)    Unless and until a Benchmark Replacement is implemented in accordance with Section 3.03(b) below, if prior to the commencement of any Interest Period for a SOFR Borrowing:
(i)    the Administrative Agent determines (which determination shall be conclusive absent manifest error) that adequate and reasonable means do not exist for ascertaining Adjusted Term SOFR for the applicable Interest Period with respect to a proposed SOFR Loan on or prior to the first day of such Interest Period; or
(ii)    the Administrative Agent is advised by the Majority Lenders that Adjusted Term SOFR for such Interest Period will not adequately and fairly reflect the cost to such Lenders of making or maintaining their Loans included in such Borrowing for such Interest Period;
then, in each case, the Administrative Agent shall give notice thereof to the Borrower and the Lenders by telephone, facsimile or electronic communication as promptly as practicable thereafter and, until the Administrative Agent notifies the Borrower and the Lenders that the circumstances giving rise to such notice no longer exist, (i) any Interest Election Request that requests the conversion of any Borrowing to, or continuation of any Borrowing as, a SOFR Borrowing shall be ineffective, and (ii) if any Borrowing Request requests a SOFR Borrowing, such Borrowing shall be made, as an ABR Borrowing.
(b)    Benchmark Replacement Setting.
(i)    Benchmark Replacement.  Notwithstanding anything to the contrary herein or in any other Loan Document, upon the occurrence of a Benchmark Transition Event, the Administrative Agent and the Borrower may amend this Agreement to replace the then-current Benchmark with a Benchmark Replacement.  Any such amendment with respect to a Benchmark Transition Event will become effective at 5:00 p.m. on the fifth (5th) Business Day after the Administrative Agent has posted such proposed amendment to all affected Lenders and the Borrower so long as the Administrative Agent has not received, by such time, written notice of objection to such amendment from Lenders comprising the Majority Lenders.  No replacement of a Benchmark with a Benchmark Replacement pursuant to this Section 3.03(b)(i)(A) will occur prior to the applicable Benchmark Transition Start Date.
(ii)    Benchmark Replacement Conforming Changes. In connection with the use, administration, adoption or implementation of a Benchmark Replacement, the Administrative Agent will have the right to make Conforming Changes from time to time and, notwithstanding anything to the contrary herein or in any other Loan Document, any amendments implementing such Conforming Changes will become effective without any further action or consent of any other party to this Agreement or any other Loan Document.
(iii)    Notices; Standards for Decisions and Determinations. The Administrative Agent will promptly notify the Borrower and the Lenders of (A) the implementation of any Benchmark Replacement and (B) the effectiveness of any Conforming Changes in connection with the use, administration, adoption or implementation of a Benchmark Replacement.  The Administrative Agent will 
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promptly notify the Borrower of the removal or reinstatement of any tenor of a Benchmark pursuant to Section 3.03(b)(iv).  Any determination, decision or election that may be made by the Administrative Agent or, if applicable, any Lender (or group of Lenders) pursuant to this Section 3.03(b), including any determination with respect to a tenor, rate or adjustment or of the occurrence or non-occurrence of an event, circumstance or date and any decision to take or refrain from taking any action or any selection, will be conclusive and binding absent manifest error and may be made in its or their sole discretion and without consent from any other party to this Agreement or any other Loan Document, except, in each case, as expressly required pursuant to this Section 3.03(b).
(iv)    Unavailability of Tenor of Benchmark.  Notwithstanding anything to the contrary herein or in any other Loan Document, at any time (including in connection with the implementation of a Benchmark Replacement), (A) if the then-current Benchmark is a term rate (including the Term SOFR Reference Rate) and either (1) any tenor for such Benchmark is not displayed on a screen or other information service that publishes such rate from time to time as selected by the Administrative Agent in its reasonable discretion or (2) the regulatory supervisor for the administrator of such Benchmark has provided a public statement or publication of information announcing that any tenor for such Benchmark is not or will not be representative, then the Administrative Agent may modify the definition of “Interest Period” (or any similar or analogous definition) for any Benchmark settings at or after such time to remove such unavailable or non-representative tenor and (B) if a tenor that was removed pursuant to clause (A) above either (1) is subsequently displayed on a screen or information service for a Benchmark (including a Benchmark Replacement) or (2) is not, or is no longer, subject to an announcement that it is not or will not be representative for a Benchmark (including a Benchmark Replacement), then the Administrative Agent may modify the definition of “Interest Period” (or any similar or analogous definition) for all Benchmark settings at or after such time to reinstate such previously removed tenor.
(v)    Benchmark Unavailability Period. Upon the Borrower’s receipt of notice of the commencement of a Benchmark Unavailability Period, (A) the Borrower may revoke any pending request for a borrowing of, conversion to or continuation of SOFR Loans to be made, converted or continued during any Benchmark Unavailability Period and, failing that, the Borrower will be deemed to have converted any such request into a request for a borrowing of or conversion to ABR Loans and (B) any outstanding affected SOFR Loans will be deemed to have been converted to ABR Loans at the end of the applicable Interest Period.  During any Benchmark Unavailability Period or at any time that a tenor for the then-current Benchmark is not an Available Tenor, the component of the Alternate Base Rate based upon the then-current Benchmark or such tenor for such Benchmark, as applicable, will not be used in any determination of the Alternate Base Rate.
2.19    Amendment to Section 3.04.  Section 3.04 is hereby amended by (a) replacing each instance of the word “Eurodollar” contained therein with “SOFR” and (b) replacing the phrase “three Business Days” contained therein with “three U.S. Government Securities Business Days”.
2.20    Amendment to Section 3.04(c)(ii).  Section 3.04(c)(ii) is hereby amended by replacing the reference therein to “Section 8.13(c)” with a reference to “Section 8.12(c)”.
    24    

2.21    Amendment to Section 3.05.  Section 3.05 is hereby amended by replacing each instance of the word “Eurodollar” contained therein with “SOFR”.
2.22    Amendment to Section 5.01(a).  Section 5.01(a) is hereby amended and restated in its entirety to read as follows:
Section 5.01    Changes in Law.  If any Change in Law shall:
(i)    impose, modify or deem applicable any reserve, special deposit or similar requirement against assets of, deposits with or for the account of, or credit extended by, any Lender or any Issuing Bank;
(ii)    impose on any Lender or any Issuing Bank any other condition (other than Taxes) affecting this Agreement or SOFR Loans made by such Lender or such Issuing Bank; or
(iii)    subject any Lender or any Issuing Bank to any Taxes (other than (A) Indemnified Taxes and (B) Excluded Taxes) on its loans, loan principal, letters of credit, commitments, or other obligations, or its deposits, reserves, other liabilities or capital attributable thereto;
and the result of any of the foregoing shall be to increase the cost to such Lender of making, maintaining, converting or continuing any SOFR Loan (or of maintaining its obligation to make any such Loan) or to reduce the amount of any sum received or receivable by such Lender (whether of principal, interest or otherwise), then the Borrower will pay to such Lender such additional amount or amounts as will compensate such Lender for such additional costs incurred or reduction suffered.
2.23    Amendment to Section 5.02.  Section 5.02 is hereby amended and restated in its entirety to read as follows:
Section 5.02    Break Funding Payments.  In the event of (a) the payment of any principal of any SOFR Loan other than on the last day of an Interest Period applicable thereto (including as a result of an Event of Default), (b) the conversion of any SOFR Loan into an ABR Loan other than on the last day of the Interest Period applicable thereto, (c) the failure to borrow, convert, continue or prepay any SOFR Loan on the date specified in any notice delivered pursuant hereto, or (d) the assignment of any SOFR Loan other than on the last day of the Interest Period applicable thereto as a result of a request by the Borrower pursuant to Section 5.05, then, in any such event, the Borrower shall compensate each Lender for the loss, cost and expense attributable to such event.  A certificate of any Lender setting forth any amount or amounts that such Lender is entitled to receive pursuant to this Section 5.02 shall be delivered to the Borrower and shall be conclusive absent manifest error or bad faith.  Except in cases of manifest error or bad faith, the Borrower shall pay such Lender the amount shown as due on any such certificate within 10 days after receipt thereof.
2.24    Amendment to Section 5.06.  Section 5.06 is hereby amended and restated in its entirety to read as follows:
Section 5.06    Illegality. Notwithstanding any other provision of this Agreement, in the event that it becomes unlawful for any Lender or its applicable lending office to honor its obligation to make or maintain SOFR Loans either 
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generally or having a particular Interest Period hereunder or to determine or charge interest based upon SOFR, the Term SOFR Reference Rate, Adjusted Term SOFR or Term SOFR, then (a) such Lender shall promptly notify the Borrower and the Administrative Agent thereof  (an “Illegality Notice”) and (i) such Lender’s obligation to make such SOFR Loans shall be suspended and (ii) if necessary to avoid such illegality, the Administrative Agent shall compute the Alternate Base Rate without reference to clause (C) of the definition of “Alternate Base Rate”, until such time as such Lender may again make and maintain such SOFR Loans.  Upon receipt of an Illegality Notice, the Borrower shall, if necessary to avoid such illegality, upon demand from any Lender (with a copy to the Administrative Agent), prepay or, if applicable, convert all SOFR Loans to ABR Loans (in each case, if necessary to avoid such illegality, the Administrative Agent shall compute the Alternate Base Rate without reference to clause (c) of the definition of “Alternate Base Rate”), on the last day of the Interest Period therefor, if all affected Lenders may lawfully continue to maintain such SOFR Loans to such day, or immediately, if any Lender may not lawfully continue to maintain such SOFR Loans to such day.  Upon any such prepayment or conversion, the Borrower shall also pay accrued interest on the amount so prepaid or converted, together with any additional amounts required pursuant to Section 5.02.
2.25    Amendment to Article VIII.  Article VIII is hereby amended by adding new a Section 8.20 to read as follows:
Section 8.20    Fifth Amendment Post-Closing Hedging Requirement.   No later than fifteen (15) days after the Bighorn Acquisition Effective Date (such date, the “Bighorn Acquisition Hedging Requirement Date”), the Borrower shall have entered into Swap Agreements with one or more Approved Counterparties hedging minimum notional volumes of at least fifty percent (50%) of the reasonably projected production of crude oil and natural gas, each calculated separately, from the Bighorn Acquisition Properties constituting proved developed producing Oil and Gas Properties evaluated in the Bighorn Reserve Report for each full calendar month during the period from and including the second full calendar month following the Bighorn Acquisition Effective Date through and including December 31, 2023.  For the avoidance of doubt, the Bighorn Acquisition Effective Date Swap Agreements shall be taken into account for purposes of determining the Borrower’s compliance with this Section 8.20(b).
2.26    Amendment to Section 9.01(b).  Section 9.01(b) is hereby amended and restated in its entirety to read as follows:
(b)    Current Ratio.  The Borrower will not, as of the last day of any fiscal quarter of the Borrower, permit the ratio of (i) consolidated current assets (including unrestricted cash and the unused amount of the total Commitments, but excluding non-cash assets under FASB ASC 815 under GAAP) as of such date to (ii) consolidated current liabilities (excluding (x) non-cash obligations under FASB ASC 815 under GAAP, (y) current maturities under this Agreement, and (z) the amount of any accrued and unpaid Chisholm Acquisition Deferred Consideration that is not then due and payable pursuant to Section 2.02(a) of the Chisholm Acquisition Agreement) as of such date to be less than 1.00 to 1.00.
2.27    Amendment to Section 9.02(g)(iv).  Section 9.02(g)(iv) is hereby amended and restated in its entirety to read as follows:
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(iv) such Debt does not have any mandatory prepayment or redemption provisions (other than customary change of control or asset sale tender offer provisions, provided that, in case of an asset sale tender offer, mandatory prepayment or redemption amounts are permitted to be applied first to the Obligations) which would require a mandatory prepayment or redemption in priority to the Obligations; provided that the Fifth Amendment Senior Notes may contain mandatory prepayment or redemption provisions providing for the repayment or redemption of such Debt in the event that the Chisholm Acquisition and/or the Bighorn Acquisition are not consummated by a certain date (which date shall be no later than the Fifth Amendment Acquisitions Outside Date) in an amount not to exceed the principal amount of the Fifth Amendment Senior Notes and any accrued interest thereon through the prepayment or redemption date;
2.28    Amendment to Section 9.04(a).  Section 9.04(a) is hereby amended and restated in its entirety to read as follows:
(a)    Restricted Payments.  The Borrower will not, and will not permit any of its 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 (i) each Loan Party may declare and pay dividends or distributions with respect to its Equity Interests payable solely in additional shares of its Equity Interests (other than Disqualified Capital Stock), (ii) Restricted Subsidiaries of the Borrower may declare and pay dividends or distributions ratably with respect to their Equity Interests to the Borrower or any Wholly-Owned Subsidiary Guarantor, (iii) the Permitted Parent Payments shall be permitted, (iv) the Permitted Tax Distributions shall be permitted, so long as both before and after giving effect to each such Permitted Tax Distribution, no Event of Default has occurred and is continuing or would result therefrom, (v) the Borrower may make Restricted Payments in cash (1) if the Fifth Amendment Senior Notes Trigger Event has occurred on or prior to the Fifth Amendment Acquisitions Effective Date, after the Fifth Amendment Acquisitions Effective Date, (2) if the Fifth Amendment Senior Notes Trigger Event has not occurred on or prior to the Fifth Amendment Acquisitions Effective Date, after the date that is the earlier to occur of (x) the date on which the Fifth Amendment Senior Notes Trigger Event occurs and (y) the date that is 180 days immediately following the Fifth Amendment Acquisitions Effective Date), (3) if (a) the Fifth Amendment Senior Notes Trigger Event has not occurred on or prior to the Fifth Amendment Acquisitions Outside Date and (b) either the Chisholm Acquisition Effective Date or the Bighorn Acquisition Effective Date shall have occurred, after the date that is the earlier to occur of (x) the date on which the Fifth Amendment Senior Notes Trigger Event occurs and (y) the date that is 180 days immediately following the Fifth Amendment Acquisitions Outside Date) or (4) if the Fifth Amendment Acquisitions Effective Date does not occur on or before the Fifth Amendment Acquisitions Outside Date, after the Fifth Amendment Acquisitions Outside Date, in each case, so long as both before and immediately after giving effect to such Restricted Payment, (A) no Default, Event of Default or Borrowing Base Deficiency has occurred and is continuing or would result therefrom, (B) the total Revolving Credit Exposures does not exceed 80% of the Loan Limit then in effect (or, until the Fifth Amendment Senior Notes Trigger Event shall have occurred, the total Revolving Credit Exposures does not exceed 75% of the Loan Limit then in effect) and (C) the Consolidated Leverage Ratio is equal to or less than 2.50 to 1.00 (or, until the Fifth Amendment Senior Notes Trigger Event shall have 
    27    

occurred, the Consolidated Leverage Ratio is equal to or less than 2.00 to 1.00), as the Consolidated Leverage Ratio is recomputed on such date using (I) Consolidated Total Debt outstanding on such date and (II) EBITDAX for the Reference Period ending on the last day of the fiscal quarter immediately preceding such date for which financial statements are available, and (vi) the Borrower may make Restricted Payments in cash to the Parent (each such Restricted Payment, a “Pass-Through Restricted Payment”), in each case, so long as (A) each such Pass-Through Restricted Payment is funded solely with (and in no greater amount than) the proceeds (such proceeds, the “Pass-Through Restricted Payment Related Proceeds”) of an Unrestricted Subsidiary Cash Distribution received by the Borrower or an Restricted Subsidiary on the same day as the Borrower makes such Pass-Through Restricted Payment to the Parent; and (B) the aggregate amount of each such Pass-Through Restricted Payment does not exceed the Pass-Through Restricted Payment Related Proceeds.
2.29    Amendment to Section 10.01(d).  Section 10.01(d) is hereby amended by replacing the reference to “Section 8.19” therein with “Section 8.19, Section 8.20”.
2.30    Amendments to Exhibits.  Each of Exhibit B-1 and Exhibit C is hereby amended and restated in its entirety to read as set forth on Exhibit B-1 and Exhibit C attached to this Fifth Amendment.
Section 3.    Conditions of Effectiveness.  The provisions of Section 2 of this Fifth Amendment will become effective on the date on which each of the following conditions is satisfied or waived in accordance with Section 12.02 (such date, the “Fifth Amendment Effective Date”):
3.1    Counterparts.  The Administrative Agent shall have received from the Borrower, the Parent, each Guarantor and the Lenders, counterparts (in such number as may be requested by the Administrative Agent) of this Fifth Amendment signed on behalf of such Person.
3.2    Fees and Expenses.  The Administrative Agent and the Lenders shall have received all fees and other amounts due and payable on or prior to the Fifth Amendment Effective Date, including, to the extent invoiced at least two Business Days prior to satisfaction of all other applicable conditions, reimbursement or payment of all reasonable out-of-pocket expenses required to be reimbursed or paid by the Borrower under the Credit Agreement.
3.3    Existing Eurodollar Loans.  The Administrative Agent shall have received (a) an executed Borrowing Request, requesting SOFR Loans in a principal amount at least equal to the principal amount of Eurodollar Loans (as defined in the Credit Agreement prior to giving effect to the Fifth Amendment) outstanding on the Fifth Amendment Effective Date (the “Existing Eurodollar Loans”), and (b) confirmation that the Borrower has prepaid, or concurrently with the funding of Loans on the Fifth Amendment Effective Date will prepay, all Existing Eurodollar Loans (the “Existing Eurocurrency Loan Prepayment”).
3.4    No Default. As of the Fifth Amendment Effective Date, no Default shall have occurred and be continuing.
The Administrative Agent is hereby authorized and directed to declare Section 2 of this Fifth Amendment to be effective (and the Fifth Amendment Effective Date shall occur) when it has received documents confirming compliance with the conditions set forth in this Section 3 or the waiver of such condition in accordance with Section 12.02 of the Credit Agreement.  Such declaration shall be final, conclusive and binding upon all parties to the Credit Agreement for all 
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purposes.  For purposes of determining compliance with the conditions specified in this Section 3, each Lender that has signed this Amendment shall be deemed to have consented to, approved or accepted, or to be satisfied with, each document or other matter required thereunder to be consented to or approved by or acceptable or satisfactory to such Lender, unless the Administrative Agent shall have received written notice from such Lender prior to the Fifth Amendment Effective Date specifying its objection thereto.
Section 4.    Limited Waivers.
4.1    Limited Waiver of Break Funding Payment.  The Borrower has requested that the Lenders waive, and the Lenders do hereby waive, any break funding payments required to be made in respect of the Existing Eurodollar Loan Prepayment pursuant to Section 5.02 of the Credit Agreement (as in effect immediately prior to the Fifth Amendment Effective Date) (the “Breakage Waiver”).
4.2    Limited Waiver of Notice of SOFR Borrowings.  The Borrower has requested that the Lenders waive, and the Lenders do hereby waive, the three U.S. Government Securities Business Days’ notice requirement contained in Section 2.03 of the Credit Agreement (as amended hereby) solely with respect to the funding of SOFR Loans to occur on the Fifth Amendment Effective Date (the “Notice Waiver”, and together with the Breakage Waiver, the “Waivers”).
4.3    Waivers Generally.  Except as expressly waived herein, all covenants, obligations and agreements of each Obligor contained in the Credit Agreement and the other Loan Documents shall remain in full force and effect in accordance with their terms.  Without limitation of the foregoing, the Waivers are hereby granted to the extent and only to the extent specifically stated herein and for no other purpose and shall not be deemed to (a) be a consent or agreement to, or waiver or modification of, or amendment to, any other term or condition of the Credit Agreement, any other Loan Document or any of the documents referred to therein, (b) except as expressly set forth herein, prejudice any right or rights which the Administrative Agent or the Lenders may now have or may have in the future under or in connection with the Credit Agreement, any other Loan Document or any of the documents referred to therein, or (c) constitute any course of dealing or other basis for altering any obligation of the Borrower or any other Obligor 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.  Granting the Waivers set forth herein does not and should not be construed to be an assurance or promise that consents or waivers will be granted in the future, whether for the matters herein stated or on other unrelated matters.
Section 5.    Miscellaneous.  
5.1    Confirmation.  The provisions of the Credit Agreement, as amended by this Fifth Amendment, shall remain in full force and effect following the effectiveness of this Fifth Amendment.
5.2    Ratification and Affirmation; Representations and Warranties.  Each Obligor hereby: (a) acknowledges the terms of this Fifth Amendment; (b) ratifies and affirms its obligations under and the Liens granted by, and acknowledges, renews and extends 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, except as expressly amended hereby; (c) agrees that from and after the Fifth Amendment Effective Date each reference to the Credit Agreement in the other Loan Documents shall be deemed to be a reference to the Credit Agreement, as amended by this Fifth Amendment; and (d) represents and warrants to the Lenders that as of the date hereof, after giving effect to the terms of this Fifth Amendment: (i) all of the 
    29    

representations and warranties contained in each Loan Document to which it is a party are true and correct in all material respects (except that any representation and warranty that is qualified by materiality shall be true and correct in all respects), except to the extent any such representations and warranties are expressly limited to an earlier date, in which case, such representations and warranties shall continue to be true and correct in all material respects (except that any representation and warranty that is qualified by materiality shall be true and correct in all respects) as of such specified earlier date and (ii) no Default has occurred and is continuing.
5.3    Counterparts.  This Fifth 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 an executed counterpart of a signature page of this Fifth Amendment by facsimile, electronic communications, as an attachment to an email or other similar electronic means shall be effective as delivery of a manually executed counterpart of this Fifth Amendment.
5.4    NO ORAL AGREEMENT.  THIS FIFTH AMENDMENT, THE CREDIT AGREEMENT AND THE OTHER LOAN DOCUMENTS EXECUTED IN CONNECTION HEREWITH AND THEREWITH REPRESENT THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR UNWRITTEN ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO SUBSEQUENT ORAL AGREEMENTS BETWEEN THE PARTIES.
5.5    GOVERNING LAW.  THIS FIFTH AMENDMENT (INCLUDING, BUT NOT LIMITED TO, THE VALIDITY AND ENFORCEABILITY HEREOF) SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF TEXAS.
5.6    Loan Document.  This Fifth Amendment is a “Loan Document” as defined and described in the Credit Agreement and all of the terms and provisions of the Credit Agreement relating to Loan Documents shall apply hereto.
5.7    Payment of Expenses.  In accordance with Section 12.03 of the Credit Agreement, the Borrower agrees to pay or reimburse the Administrative Agent for all of its reasonable and documented out-of-pocket costs and expenses incurred in connection with this Fifth Amendment, any other documents prepared in connection herewith and the transactions contemplated hereby, including, without limitation, the reasonable fees and disbursements of counsel to the Administrative Agent.
5.8    Severability.  Any provision of this Fifth Amendment or any other Loan Document held to be invalid, illegal or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such invalidity, illegality or unenforceability without affecting the validity, legality and enforceability of the remaining provisions hereof or thereof; and the invalidity of a particular provision in a particular jurisdiction shall not invalidate such provision in any other jurisdiction.
5.9    Successors and Assigns. This Fifth Amendment shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns.
5.10    Amendment and Restatement of Existing Fifth Amendment.  This Fifth Amendment amends, restates and supersedes in its entirety the Existing Fifth Amendment.
[Signature Pages Follow]
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IN WITNESS WHEREOF, the parties hereto have caused this Fifth Amendment to be duly executed and delivered by their proper and duly authorized officer(s) as of the day and year first above written.

									
	BORROWER:	EARTHSTONE ENERGY HOLDINGS, LLC
			
		By:	/s/ Mark Lumpkin Jr.
		Name:	Mark Lumpkin Jr.
		Title:	Executive Vice President and Chief     Financial Officer

  

									
	PARENT:	EARTHSTONE ENERGY, INC.

			
		By:	/s/ Mark Lumpkin Jr.
		Name:	Mark Lumpkin Jr.
		Title:	Executive Vice President and Chief     Financial Officer

									
	GUARANTORS:	EARTHSTONE OPERATING, LLC
			
		By:	/s/ Mark Lumpkin Jr.
		Name:	Mark Lumpkin Jr.
		Title:	Executive Vice President and Chief     Financial Officer
			
		SABINE RIVER ENERGY, LLC
			
		By:	/s/ Mark Lumpkin Jr.
		Name:	Mark Lumpkin Jr.
		Title:	Executive Vice President and Chief     Financial Officer
			
		INDEPENDENCE RESOURCES MANAGEMENT, LLC
			
		By:	/s/ Mark Lumpkin Jr.
		Name:	Mark Lumpkin Jr.
		Title:	Executive Vice President and Chief     Financial Officer

    1    

									
	INDEPENDENCE RESOURCES TECHNOLOGIES, LLC
			
	By:		/s/ Mark Lumpkin Jr.
	Name:		Mark Lumpkin Jr.
	Title:		Executive Vice President and Chief     Financial Officer
			
	EARTHSTONE PERMIAN, LLC
			
	By:		/s/ Mark Lumpkin Jr.
	Name:		Mark Lumpkin Jr.
	Title:		Executive Vice President and Chief     Financial Officer

 
    2    

						
	ADMINISTRATIVE AGENT, ISSUING BANK AND LENDER:
	WELLS FARGO BANK, NATIONAL ASSOCIATION
	

	

    3    

						
	LENDER:
	ROYAL BANK OF CANADA
	

	

    4    

						
	LENDER:
	TRUIST BANK
	

	

    5    

						
	LENDER:
	CITIZENS BANK, N.A.

    6    

						
	LENDER:
	KEYBANK NATIONAL ASSOCIATION

    7    

						
	LENDER:
	PNC BANK, NATIONAL ASSOCIATION

    8    

						
	LENDER:
	U.S. BANK NATIONAL ASSOCIATION

    9    

						
	LENDER:
	FIFTH THIRD BANK, NATIONAL ASSOCIATION

		

                
    10    

						
	LENDER:
	IBERIABANK, A DIVISION OF FIRST HORIZON BANK

    11    

						
	LENDER:
	COMERICA BANK

    12    

						
	LENDER:
	BANK OF AMERICA, N.A.

    13

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