Document:

exv10w34

Exhibit 10.34

No. 4

			
	 
	US $150,000.00
	 	May 20, 2008

PROMISSORY NOTE

     FOR VALUE RECEIVED, the undersigned, Ecology Coatings, Inc., a Nevada corporation (the “The
Maker”), promises to pay to the order of Hayden Capital USA, LLC on behalf of Hayden Capital USA,
LLC, Series I, a Delaware limited liability company (the “Holder”), the principal amount of One
Hundred Fifty Thousand and 00/100 dollars ($150,000.00), together with interest thereon as provided
below.

ARTICLE I

TERMS OF REPAYMENT

     1. Interest. The Note shall not bear Interest.

     2. Payments. All payments by the Maker under this Note shall first be credited against costs
and expenses provided for hereunder, second to the payment of any penalties, third to the payment
of accrued and unpaid interest, if any, and the remainder shall be credited against principal. All
payments due hereunder shall be payable in legal tender of the United States of America, and in
same day funds delivered to the Holder by cashier’s check, certified check, or any other means of
guaranteed funds to the mailing address provided below, or at such other place as the Holder or any
holder hereof shall designate in writing for such purpose from time to time. If a payment hereunder
otherwise would become due and payable on a Saturday, Sunday or legal holiday, the due date thereof
shall be extended to the next succeeding business day, and Interest, if any, shall be payable
thereon during such extension.

     3. Maturity Date. The outstanding principal shall be payable on June 30, 2008 (the “Maturity
Date”). The Company shall pay the Note on or before the Maturity Date on a pro rata basis with all
four (4) Notes made in favor of Hayden Capital USA, LLC.

     4. Pre-Payment Demand. If at any time before the Maturity Date the Maker completes an
underwritten public offering of its common stock or other form of security convertible into common
stock pursuant to an effective registration statement under the Securities Act of 1933 (the “Act”),
as amended, or a managed private offering exempt from registration under Section 4(2) of the Act
and Regulation D promulgated thereunder (collectively, a “New Offering”) which results in proceeds
received by the Maker net of underwriting discounts and commissions, of at least Three Hundred
Thousand and 00/100 dollars ($300,000.00) (a “Pre-Payment Event”), all amounts owed under this Note
shall become due and payable immediately.

     5. Exemption from Restrictions. It is the intent of the Maker and the Holder in the execution
of this Note that the indebtedness hereunder be exempt from the restrictions of the usury laws of
any applicable jurisdiction. The Maker and the Holder agree that none of the terms

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and provisions
contained herein shall be construed to create a contract for the use, forbearance or detention of
money requiring payment of interest at a rate in excess of the maximum interest rate permitted to
be charged by the laws of any applicable jurisdiction. In such event, if any holder of this Note
shall collect monies which are deemed to constitute interest which would otherwise increase the
effective interest rate on this Note to a rate in excess of the maximum rate permitted to be
charged by the laws of any applicable jurisdiction, all such sums deemed to constitute interest in
excess of such maximum rate shall, at the option of such holder, be credited to the payment of this
principal amount due hereunder or returned to the Maker.

     6. Senior Indebtedness. This Note shall constitute the Senior Indebtedness of the Maker and is
unsecured. The indebtedness evidenced by this Note is senior to the prior payment when due of the
principal of, and premium, if any, and accrued and unpaid interest on, all existing and future
Subordinated Indebtedness of the Maker and junior to the prior payment when due of the principal
of, and premium, if any, and accrued and unpaid interest on, all existing and future Secured
Indebtedness of the Maker to the extent of the assets securing such Secured Indebtedness. The term
''Senior Indebtedness’’ shall mean: (i) the principal of and premium, if any, and interest and
expenses on any indebtedness of the Maker to Holder under the Note, and (ii) all amendments,
modifications, renewals, extensions and refinancings of the Senior Indebtedness as defined in
clause (i) above. The term “Secured Indebtedness” shall mean any indebtedness of the Maker, whether
outstanding on the date of this Note or hereafter incurred, that is secured by all or part of the
assets of the Maker. The term “Subordinated Indebtedness” shall mean any indebtedness of the Maker,
whether outstanding on the date of this Note or hereafter incurred, which is contractually
subordinate or junior in right of payment to the Secured Indebtedness and this Note.. Maker
represents and warrants to Holder that the Subordinated Indebtedness includes all the existing
indebtedness of the Maker as of the date first above written.

ARTICLE II

COVENANTS

     7. Right of Payment. The Maker shall not incur any Secured Indebtedness, Senior Indebtedness
or other indebtedness senior or pari passu in right of payment to the Note while the Note remains
outstanding.

     8. Conversion into Common Stock. If at any time before the Maturity Date, the Maker completes
a New Offering, the Maker shall give the Holder the option to convert this Note, in whole or in
part, into Common Stock of the Maker based on a conversion price equal to the lower of: (a) the
closing bid price per share of the Common Stock on the date first above written as reported on the
Over-The-Counter Bulletin Board, or if there is not such price on the Effective Date, then the last
bid price on the date nearest preceding the date first above written,
or; (b) the average price at which the Maker sells its Common Stock in the New Offering (the
“Conversion Price”)(the “Conversion Shares”).

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     9. Piggyback Registration. If the Conversion Shares and the Underlying Shares (collectively,
the “Shares”) have not been otherwise registered and at any time the Maker proposes to file a
registration statement, whether or not for sale for the Maker’s own account, on a form and in a
manner that would also permit registration of shares (other than in connection with a registration
statement on Forms S-4 or S-8 or any similar or successor form) the Maker shall give to Holder,
written notice of such proposed filing promptly, but in any case at least twenty (20) days before
the anticipated filing. The notice referred to in the preceding sentence shall offer the holder(s)
holding the Shares the opportunity to register such amount of the Shares as he may request (a
“Piggyback Registration”). Subject to this Section, the Maker will include in each such Piggyback
Registration (and any related qualification under state blue sky laws and other compliance filings,
and in any underwriting involved therein) that portion of the Shares with respect to which the
Maker has received written requests for inclusion therein within twenty (20) days after the written
notice from the Maker is given. The holders holding any portion of the Shares will be permitted to
withdraw all or part of the Shares from a Piggyback Registration at any time prior to the effective
date of such Piggyback Registration. Notwithstanding the foregoing, the Maker will not be obligated
to effect any registration of shares under this Paragraph 7 as a result of the registration of any
of its securities solely in connection with mergers effected pursuant to a Form S-4 Filing.

     10. Covenants Regarding Registration

	 	a.	 	The Maker shall use its best efforts to have any registration
statement declared effective at the earliest possible time, and shall furnish
such number of prospectuses as shall be reasonably required.
	 
	 	b.	 	The Maker shall bear all costs, fees and expenses in connection
with a Piggyback Registration,
	 
	 	c.	 	The Maker will take all necessary action which may be required
in qualifying qualifying or registering the Shares included in any Piggyback
Registration for offering and sale under the securities or blue sky laws of
such states as are requested by the holders of such Shares, provided that the
Maker shall not be obligated to execute or file any general consent to service
or process or to qualify as a foreign corporation to do business under the laws
of any such jurisdiction.

     11. Indemnification. The Maker shall, at The Maker’s expense, protect, defend, indemnify, save
and hold Holder harmless against any and all claims, demands, losses, expenses, damages, causes of
action (whether legal or equitable in nature) asserted by any person or entity arising out of,
caused by or relating to the Note, including without limitation the construction of the Note and
the use or application of the proceeds of the Note, and The Maker shall pay Holder upon demand all
claims, judgments, damages, losses and expenses (including court costs and
reasonable attorneys’ fees and expenses) incurred by Holder as a result of any legal or other
action arising out of the Note as aforesaid.

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     12. Attorneys Fees. The Maker shall reimburse Holder for all reasonable costs, attorney’s
fees, and all other expenses in connection with this Note.

     13. Notice of Default. So long as any amount under this Note shall remain unpaid, the Holder
will, unless the Maker otherwise consents in writing, promptly give written notice to the Maker in
reasonable detail of the occurrence of any Event of Default, or any condition, event or act which
with the giving of notice or the passage of time or both would constitute an Event of Default.

ARTICLE III

DEFAULT

     14. Events of Default. Any of the following events shall constitute an “Event of Default”
hereunder:

	 	a.	 	Failure by the Maker to pay the principal or Interest, if any,
of this Note when due and payable on the Maturity Date.
	 
	 	b.	 	The entry of an order for relief under Federal Bankruptcy Code
as to the Maker or approving a petition in reorganization or other similar
relief under bankruptcy or similar laws in the United States of America or any
other competent jurisdiction, and if such order, if involuntary, is not
satisfied or withdrawn within sixty (60) days after entry thereof; or the
filing of a petition by the Maker seeking any of the foregoing, or consenting
thereto; or the filing of a petition to take advantage of any debtor’s act; or
making a general assignment for the benefit of creditors; or admitting in
writing inability to pay debts as they mature; or
	 
	 	c.	 	Failure by the Maker to pay the principal and Interest, if any,
of this Note concurrent with a Pre-Payment Event; or
	 
	 	d.	 	The breach of any covenant made by the Maker in this Note.

     15. Acceleration. Upon any Event of Default (in addition to any other rights or remedies
provided for under this Note), at the option of the Holder or any holder hereof, all sums evidenced
hereby, including all principal, accrued but unpaid Interest, fees and all other amounts due
hereunder, shall become immediately due and payable. If an Event of Default relating to certain
events of bankruptcy or insolvency of the Maker occurs and is continuing, the principal
of and interest, if any, on this Note will become and be immediately due and payable without
any declaration or other act on the part of the Holder or any holder hereof. This Note shall bear
interest at the rate of twenty-five (25%) percent per annum upon the occurrence of an Event of
Default (“Default Interest”). Payments of the Default Interest shall be due every thirty (30) days
following the occurrence Event of Default.

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     16. Employment Contracts. Upon an Event of Default, the Holder may, at its option, cause the
Board of Directors of the Marker to terminate all the employment contracts of the Maker, with the
exception of the employment contract of Sally J. Ramsey, within thirty (30) days of the Event of
Default.

     17. No Waiver. Failure of the Holder or any holder hereof to exercise any option hereunder
shall not constitute a waiver of the right to exercise the same in the event of any subsequent
Event of Default, or in the event of continuance of any existing Event of Default after demand or
performance thereof.

     18. Pursuit of any Remedy. The Holder or holder hereof may pursue any remedy under this Note
without notice or presentment. The Holder or any holder hereof has the right to direct the time,
method and place of conducting any proceeding for exercising any remedy available to the Holder or
any such holder hereof under this Note.

ARTICLE IV

MISCELLANEOUS

     19. Amendments. No amendment or waiver of any provision of this Note, nor consent to any
departure by the Maker herefrom, shall in any event be effective unless the same shall be in
writing and signed by the Holder, and then such waiver or consent shall be effective only in the
specific instance and for the specific purpose for which given.

     20. Notices. All notices and other communications provided for hereunder shall be in writing
(including telecopier communication) and mailed, telecopied, or delivered, to the Maker or the
Holder, as applicable, at their respective addresses specified on the signature pages hereof, or,
as to each party, at such other address as shall be designated by such party in a written notice to
the other party. All such notices and communications shall, when mailed or telecopied, be effective
when deposited in the mails or telecopied with receipt confirmed, respectively.

     21. No Waiver; Remedies. No failure on the part of the Holder to exercise, and no delay in
exercising, any right hereunder shall operate as a waiver thereof, nor shall any single or partial
exercise of any right hereunder preclude any other or further exercise thereof or the exercise of
any other right. All rights, powers and remedies of the Holder in connection with this Note are
cumulative and not exclusive, and shall be in addition to any other rights, powers or remedies
provided by law or equity.

     22. Severability; Headings. If any one or more provisions of this Note shall be held to be
illegal, invalid or otherwise unenforceable, the same shall not affect any other provisions of this
Note and the remaining provisions of this Note shall remain in full force and effect. Article and
paragraph headings in this Note are included herein for convenience of reference only and shall not
constitute a part of this Note for any other purpose or be given any substantive effect.

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     23. Binding Effect; Transfer. This Note shall be binding upon and inure to the benefit of the
Maker and the Holder and their respective successors and assigns. The Holder may not assign or
otherwise transfer, or grant participations in, this Note or all or any portion of its rights
hereunder or its interest herein to any person or entity, without the prior written consent of the
Maker which consent shall not be unreasonably withheld. The Maker may not assign or otherwise
transfer its rights or obligations hereunder or any interest herein without the prior written
consent of the Holder. Any attempted assignment by the Maker or the Holder in contravention of this
paragraph shall be null and void and of no force or effect.

     24. Enforcement. It is agreed that time is of the essence of this Note and in the event of
default of the terms of this Note, the Maker agrees to pay all costs of collection or enforcement,
including reasonable attorneys’ fees and if there is a default in payment of any sum due hereunder.

     25. Governing Law. This Note shall be governed by, and shall be construed and enforced in
accordance with, the internal laws of the State of New York without regard to conflicts of laws
principles. The venue of any legal proceeding taken in connection with this Note will be New York,
New York.

     26. Independence of Covenants. All covenants hereunder shall be given independent effect so
that if a particular action or condition is not permitted by any of such covenants, the fact that
it would be permitted by an exception to, or be otherwise within the limitations of, another
covenant shall not avoid the occurrence of an Event of Default or event which with notice or lapse
of time or both would become an Event of Default if such action is taken or condition exists.

     27. Interpretation. The Holder and the Maker hereby waive the benefit of any statute or rule
of law or judicial decision which would otherwise require that the provisions of this Note be
construed or interpreted more strongly against the party responsible for the drafting thereof.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

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IN WITNESS WHEREOF, this Note has been issued as of date first written above.

	 	 	 
	 

	 	MAKER:
	 
	 	 
	 

	 	Ecology Coatings, Inc.
	 
	 	 
	 
	 	 
	 

	 	 
 Adam
S. Tracy, Esq.
	 

	 	Vice President, General Counsel
	 
	 	 
	Mailing Address of Holder:
	 	 
	Hayden Capital USA, LLC, Series I

	 	HOLDER:
	c/o Stephen Hayden
	 	 
	Hayden Capital Corp.

	 	Hayden Capital USA LLC
	2331 — 4th Avenue NW
	 	 
	Calgary, AB
	 	 
	T2N 0P1

	 	 
 Stephen
Hayden

Mailing Address of Maker:

Ecology Coatings, Inc.

c/o Adam S. Tracy, General Counsel

35980 Woodward Avenue, Suite 200

Bloomfield Hills, Michigan 48304

7exv10w1

Exhibit 10.1

FOURTH AMENDMENT TO CREDIT AGREEMENT

     FOURTH AMENDMENT TO CREDIT AGREEMENT (this “Amendment”) executed to be effective as of
May 20, 2008, by and among CARRIZO OIL & GAS, INC., a Texas corporation (the “Borrower”),
certain subsidiaries of Borrower, as Guarantors (in such capacity, the “Guarantors”), the
LENDERS party hereto and JPMORGAN CHASE BANK, N.A., as Administrative Agent (in such capacity, the
“Administrative Agent”). Unless otherwise expressly defined herein, capitalized terms used
but not defined in this Amendment have the meanings assigned to such terms in the Credit Agreement
(as defined below).

WITNESSETH:

     WHEREAS, the Borrower, the Guarantors, the Administrative Agent and the Lenders have entered
into that certain Credit Agreement, dated as of May 25, 2006 (as amended, supplemented or otherwise
modified prior to the date hereof, the “Credit Agreement”); and

     WHEREAS, the Borrower has requested that the Administrative Agent and the Lenders amend the
Credit Agreement to, among other things, permit the incurrence of Indebtedness of the Borrower
pursuant to the issuance of convertible notes in an aggregate principal amount not to exceed
$380,000,000; and

     WHEREAS, the Administrative Agent and the Lenders party hereto have agreed to do so on the
terms and conditions hereinafter set forth;

     NOW, THEREFORE, for and in consideration of the mutual covenants and agreements herein
contained and other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged and confessed, the parties hereto hereby agree as follows:

SECTION 1. Amendments to Credit Agreement. Subject to the satisfaction or waiver in writing of
each condition precedent set forth in Section 3 of this Amendment, and in reliance on the
representations, warranties, covenants and agreements contained in this Amendment, the Credit
Agreement shall be amended in the manner provided in this Section 1.

     1.1 Additional Definitions. The following definitions shall be and they hereby are added to
Section 1.01 of the Credit Agreement in appropriate alphabetical order:

     “Convertible Notes” means the senior unsecured convertible notes issued by the
Borrower in one or more transactions on or after the Fourth Amendment Effective Date
pursuant to the Convertible Notes Indenture, in each case, on terms and conditions
reasonably satisfactory to the Administrative Agent and the Required Lenders (it being
understood that the terms and conditions set forth in the Draft Preliminary Prospectus
Supplement are satisfactory to the Administrative Agent and the Required Lenders and that,
so long as such senior unsecured convertible notes do not contain terms and conditions that
are materially more onerous to the Borrower and its Subsidiaries than those set forth in the
Draft Preliminary Prospectus Supplement, the terms and conditions of such senior unsecured
convertible notes are satisfactory to the Administrative Agent and the Required Lenders).

Fourth Amendment to Credit Agreement — Page 1

 

 

     “Convertible Notes Documents” means any Convertible Notes and any related
Convertible Notes Indenture.

     “Convertible Notes Indenture” means any indenture by and among the Borrower, as
issuer, and a trustee, and any and all related documentation entered into in connection
therewith, pursuant to which Convertible Notes are issued, in each case, on terms and
conditions reasonably satisfactory to the Administrative Agent and the Required Lenders (it
being understood that the terms and conditions set forth in the Draft Preliminary Prospectus
Supplement are satisfactory to the Administrative Agent and the Required Lenders and that,
so long as such indenture and related documentation do not contain terms and conditions that
are materially more onerous to the Borrower and its Subsidiaries than those set forth in the
Draft Preliminary Prospectus Supplement, the terms and conditions of such indenture and
related documentation are satisfactory to the Administrative Agent and the Required
Lenders), as the same may be amended, restated, modified or supplemented from time to time
in accordance with the terms of this Agreement.

     “Draft Preliminary Prospectus Supplement” means that certain draft Preliminary
Prospectus Supplement relating to a proposed offering of convertible notes by the Borrower
provided to the Administrative Agent on May 18, 2008.

     “Fourth Amendment Effective Date” means May 20, 2008.

     “Permitted Refinancing” means any Indebtedness of the Borrower, and
Indebtedness constituting Guarantees thereof by Restricted Subsidiaries, incurred or issued
in exchange for, or the net proceeds of which are used solely to extend, refinance, renew,
replace (whether or not contemporaneously), defease or refund, other Indebtedness of the
Borrower, in whole or in part, from time to time; provided that (i) the principal
amount of such Permitted Refinancing (or if such Permitted Refinancing is issued at a
discount, the initial issuance price of such Permitted Refinancing) does not exceed the
principal amount of the Indebtedness so extended, refinanced, renewed, replaced, defeased or
refunded (plus the amount of any premiums paid and fees and expenses incurred in connection
therewith), (ii) such Permitted Refinancing has a stated maturity no earlier than the date
that is 91 days after the Maturity Date (as in effect on the date of incurrence of such
Permitted Refinancing) and an average life (based on the stated final maturity date and
payment schedule provided at the date of incurrence of such Permitted Refinancing) no
shorter than the period beginning on the date of incurrence of such Permitted Refinancing
and ending on the date that is 91 days after the Maturity Date (as in effect on the date of
incurrence of such Permitted Refinancing), (iii) such Permitted Refinancing does not contain
any covenants that are materially more onerous to the Borrower and its Subsidiaries than
those imposed by the Indebtedness so extended, refinanced, renewed, replaced, defeased or
refunded, and (iv) such Permitted Refinancing and any Guarantee in respect thereof is
unsecured.

     1.2 Reserve Report; Proposed Borrowing Base; Conforming Borrowing Base. Section 3.01
of the Credit Agreement shall be and it hereby is amended by deleting the phrase “Simultaneously
with the delivery to the Administrative Agent and the Lenders of each Reserve

Fourth Amendment to Credit Agreement — Page 2

 

 

Report,” at the beginning of the third sentence thereof and replacing it with the phrase “At
any time prior to the payment in full of the Second Lien Loans, simultaneously with the delivery to
the Administrative Agent and the Lenders of each Reserve Report,”.

     1.3 Potential Monthly Reductions and Other Adjustments. Section 3.05 of the Credit
Agreement shall be and it hereby is amended by adding a new clause (c) that reads as follows:

          (c) In the event the outstanding principal balance of the Indebtedness under the Convertible
Notes Indenture (or any Permitted Refinancing thereof) exceeds $225,000,000 at any time, the
Borrowing Base then in effect shall be reduced by $1.00 for every $4.00 of such additional
Indebtedness as of the date such additional Indebtedness is incurred.

     1.4 Indebtedness. Section 7.01 of the Credit Agreement shall be and it hereby is
amended by adding the phrase “at any time prior to the payment in full of the Second Lien Loans,”
at the beginning of clause (h) of such section.

     1.5 Indebtedness. Section 7.01 of the Credit Agreement shall be and it hereby is
amended by (i) deleting the word “and” after the semicolon at the end of clause (j) of such
section, (ii) renumbering clause (k) of such section to be clause (l) of such section and
(iii) inserting a new clause (k) in such section that reads as follows:

     (k) subject to any adjustment to the Borrowing Base and Conforming Borrowing Base required
under Section 3.05, unsecured Indebtedness of the Borrower resulting from the issuance of
Convertible Notes in an aggregate principal amount not to exceed $380,000,000 at any time
outstanding, and any Permitted Refinancing of any Indebtedness incurred under this clause (k);
provided that (i) until the Second Lien Loans are repaid in full, the net cash proceeds of
any such issuance of Indebtedness incurred under this clause (k) shall be applied by the Borrower
to prepay the outstanding Second Lien Loans, (ii) the final stated maturity date of such
Convertible Notes shall not be earlier than 91 days after the Maturity Date (as in effect on the
date of issuance of such Convertible Notes) and the average life of such Convertible Notes (based
on the stated final maturity date and payment schedule provided at the date of issuance of such
Convertible Notes) shall not be shorter than the period beginning on the date of issuance of such
Convertible Notes and ending on the date that is 91 days after the Maturity Date (as in effect on
the date of issuance of such Convertible Notes), and (iii) at the time of and immediately after
giving effect to each issuance of such Convertible Notes or any Permitted Refinancing thereof, no
Default shall have occurred and be continuing.

     1.6 Indebtedness. Section 7.01 of the Credit Agreement shall be and it hereby is
amended by (i) deleting the phrase “Indebtedness permitted under Section 7.01(f) and Section
7.01(k)” in clause (e) of such Section and replacing it with the phrase “Indebtedness permitted
under Section 7.01(j) and Section 7.01(l)”, and (ii) deleting the phrase “Indebtedness permitted
under Section 7.01(e) and Section 7.01(k)” in clause (j) of such Section and replacing it with the
phrase “Indebtedness permitted under
Section 7.01(e) and Section 7.01(l)”.

Fourth Amendment to Credit Agreement — Page 3

 

 

     1.7 Liens. Section 7.02 of the Credit Agreement shall be and it hereby is amended by
adding the phrase “at any time prior to the payment in full of the Second Lien Loans,” at the
beginning of clause (f) of such section.

     1.8 Restricted Payments. Section 7.07 of the Credit Agreement shall be and it hereby
is amended by (i) deleting the word “and” at the end of clause (c) of such section, (ii) deleting
the period at the end of such section and (iii) inserting the following new clause immediately
following the end of clause (d) of such section:

, and (e) the Borrower may make any mandatory or optional cash payments or deliveries of the
Borrower’s capital stock, or any combination thereof, in settlement of its obligations under any
Convertible Notes Documents upon the conversion or required repurchase of any Convertible Notes
thereunder.

     1.9 Second Lien Facility Restrictions. Section 7.14 of the Credit Agreement shall be
and it hereby is amended in its entirety to read as follows:

     Section 7.14. Second Lien Facility Restrictions. For so long as the Second Lien Loans
are outstanding, the Borrower will not, nor will it permit any Restricted Subsidiary to, (a) except
for (i) the regularly scheduled payments of principal and interest required under the Second Lien
Facility Documents and (ii) prepayments of the Second Lien Loans with the net cash proceeds of any
issuance of Convertible Notes permitted under Section 7.01(k), directly or indirectly, retire,
redeem, defease, repurchase or prepay prior to the scheduled due date thereof any part of the
principal of, or interest on, the Second Lien Loans, or (b) except as otherwise permitted under the
Intercreditor Agreement, enter into or permit any supplement, modification or amendment of, or
waive any right or obligation of any Person under, any Second Lien Document.

     1.10 Convertible Notes Restrictions. Article VII is hereby amended by adding a new
Section 7.15 at the end of such Article that reads as follows:

     Section 7.15. Convertible Notes Restrictions. The Borrower will not, nor will it
permit any Restricted Subsidiary to, (a) except for the regularly scheduled payments of principal
and interest required under the Convertible Notes Documents and cash payments in settlement of the
Borrower’s obligations under the Convertible Notes Documents upon the conversion or required
repurchase of any Convertible Notes thereunder, directly or indirectly, retire, redeem, defease,
repurchase or prepay prior to the scheduled due date thereof any part of the principal of, or
interest on, the Convertible Notes (or any Permitted Refinancing thereof); provided, however, that
the Borrower may retire, redeem, defease, repurchase or prepay the Convertible Notes (or any
Permitted Refinancing thereof) with the proceeds of any Permitted Refinancing or, so long as no
Default or Event of Default shall have occurred and be continuing at the time thereof or would
result therefrom and no Borrowing Base Deficiency exists, with the proceeds of any substantially
contemporaneous issuance of Equity Interests of the Borrower or (b) enter into or permit any
supplement, modification or amendment of, or waive any right or obligation of any Person under, any
Convertible Notes Document or any document governing any Permitted Refinancing of the Convertible
Notes if the effect thereof would be to (i) shorten its average life or maturity, (ii) increase the
amount of any payment or principal thereof, (iii) increase the rate or shorten any period for
payment of interest thereon or (iv) make the covenants contained

Fourth Amendment to Credit Agreement — Page 4

 

 

therein more materially onerous to the Borrower and its Subsidiaries, provided that the
foregoing shall not prohibit the execution of (x) supplemental indentures associated with the
incurrence of additional Convertible Notes to the extent permitted by Section 7.01(k), (y) other
indentures or agreements in connection with the issuance of any Permitted Refinancing of the
Convertible Notes or (z) supplements, modifications or amendments that are acceptable to the
Administrative Agent and not materially adverse to the Lenders.

     SECTION 2. Conditions. The amendments to the Credit Agreement contained in Section 1 of
this Amendment shall be effective upon the satisfaction of each of the conditions set forth in this
Section 2.

     2.1 Execution and Delivery. Each Credit Party, the Required Lenders and the Administrative
Agent shall have executed and delivered this Amendment.

     2.2 No Default. No Default shall have occurred and be continuing or shall result from
effectiveness of this Amendment.

     2.3 No Material Adverse Effect. No Material Adverse Effect shall have occurred since
March 31, 2008.

     2.4 Other Documents. The Administrative Agent shall have received such other instruments and
documents incidental and appropriate to the transaction provided for herein as the Administrative
Agent or its special counsel may reasonably request, and all such documents shall be in form and
substance satisfactory to the Administrative Agent.

     SECTION 3. Representations and Warranties of Borrower. To induce the Lenders to enter into this
Amendment, the Borrower hereby represents and warrants to the Lenders as follows:

     3.1 Reaffirmation of Representations and Warranties/Further Assurances. After giving effect
to the amendments herein, each representation and warranty of the Borrower contained in the Credit
Agreement or in any of the other Loan Documents is true and correct in all material respects as of
the Fourth Amendment Effective Date (except to the extent such representations and warranties
specifically refer to an earlier date).

     3.2 Corporate Authority; No Conflicts. The execution, delivery and performance by the
Borrower (to the extent a party hereto or thereto) of this Amendment and all documents, instruments
and agreements contemplated herein are within the Borrower’s corporate or other organizational
powers, have been duly authorized by necessary action, require no action by or in respect of, or
filing with, any court or agency of government and do not violate or constitute a default under any
provision of any applicable law or other agreements binding upon the Borrower or result in the
creation or imposition of any Lien upon any of the assets of the Borrower except for Permitted
Liens and otherwise as permitted in the Credit Agreement.

     3.3 Enforceability. This Amendment constitutes the valid and binding obligation of the
Borrower enforceable in accordance with its terms, except as (i) the enforceability thereof may be
limited by bankruptcy, insolvency or similar laws affecting creditor’s rights generally, and
(ii) the availability of equitable remedies may be limited by equitable principles of general
application.

Fourth Amendment to Credit Agreement — Page 5

 

 

SECTION 4. Miscellaneous.

     4.1 Reaffirmation of Loan Documents and Liens. Any and all of the terms and provisions of the
Credit Agreement and the Loan Documents shall, except as amended and modified hereby, remain in
full force and effect. The Borrower hereby agrees that the amendments and modifications herein
contained shall in no manner affect or impair the liabilities, duties and obligations of the
Borrower under the Credit Agreement and the other Loan Documents or the Liens securing the payment
and performance thereof.

     4.2 Parties in Interest. All of the terms and provisions of this Amendment shall bind and
inure to the benefit of the parties hereto and their respective successors and assigns.

     4.3 Legal Expenses. The Borrower hereby agrees to pay all reasonable fees and expenses of
special counsel to the Administrative Agent incurred by the Administrative Agent in connection with
the preparation, negotiation and execution of this Amendment and all related documents.

     4.4 Counterparts. This Amendment may be executed in one or more counterparts and by different
parties hereto in separate counterparts each of which when so executed and delivered shall be
deemed an original, but all such counterparts together shall constitute but one and the same
instrument; signature pages may be detached from multiple separate counterparts and attached to a
single counterpart so that all signature pages are physically attached to the same document.
However, this Amendment shall bind no party until the Borrower, the Required Lenders and the
Administrative Agent have executed a counterpart. Delivery of photocopies of the signature pages
to this Amendment by facsimile or electronic mail shall be effective as delivery of manually
executed counterparts of this Amendment.

     4.5 Complete Agreement. THIS AMENDMENT, THE CREDIT AGREEMENT, AND THE OTHER LOAN DOCUMENTS
REPRESENT THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR,
CONTEMPORANEOUS OR ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN
THE PARTIES.

     4.6 Headings. The headings, captions and arrangements used in this Amendment are, unless
specified otherwise, for convenience only and shall not be deemed to limit, amplify or modify the
terms of this Amendment, nor affect the meaning thereof.

     4.7 Governing Law. This Amendment shall be construed in accordance with and governed by the
law of the State of Texas.

[Remainder of page intentionally blank]

Fourth Amendment to Credit Agreement — Page 6

 

 

     IN WITNESS WHEREOF, the parties have caused this Amendment to be duly executed by their
respective authorized officers to be effective as of the date first above written.

	 	 	 	 	 
	 	BORROWER:

CARRIZO OIL & GAS, INC.

 	 
	 	By:  	/s/ Paul F. Boling
 	 
	 	Name:  	Paul F. Boling 	 
	 	Title:  	Vice President and Chief Financial Officer 	 
	 

	 	 	 	 	 
	 	GUARANTORS:

CCBM, INC.

 	 
	 	By:  	/s/ Paul F. Boling
 	 
	 	Name:  	Paul F. Boling 	 
	 	Title:  	Vice President 	 
	 

	 	 	 	 	 
	 	CLLR, INC.

 	 
	 	By:  	/s/ Paul F. Boling
 	 
	 	Name:  	Paul F. Boling 	 
	 	Title:  	Vice President 	 
	 

	 	 	 	 	 
	 	HONDO PIPELINE, INC.

 	 
	 	By:  	/s/ Paul F. Boling
 	 
	 	Name:  	Paul F. Boling 	 
	 	Title:  	Vice President 	 
	 

Fourth Amendment to Credit Agreement

Signature Page

 

 

	 	 	 	 	 
	 	ADMINISTRATIVE AGENT AND LENDER:

JPMORGAN CHASE BANK, NATIONAL 
ASSOCIATION, individually and as 
Administrative Agent

 	 
	 	By:  	/s/ Kimberly Coil
 	 
	 	Name:  	Kimberly Coil 	 
	 	Title:  	Vice President 	 
	 

Fourth Amendment to Credit Agreement

Signature Page

 

 

	 	 	 	 	 
	 	GUARANTY BANK, as a Lender

 	 
	 	By:  	/s/ Kelly L. Elmore III
 	 
	 	Name:  	Kelly L. Elmore III 	 
	 	Title:  	Senior Vice President 	 
	 

Fourth Amendment to Credit Agreement

Signature Page

 

 

	 	 	 	 	 
	 	BANK OF SCOTLAND PLC, as a Lender

 	 
	 	By:  	/s/ Julia R. Franklin
 	 
	 	Name:  	Julia R. Franklin 	 
	 	Title:  	Assistant Vice President 	 
	 

Fourth Amendment to Credit Agreement

Signature Page

 

 

	 	 	 	 	 
	 	U.S. BANK NATIONAL ASSOCIATION,

as a Lender

 	 
	 	By:  	/s/ Tyler Fauerbach
 	 
	 	Name:  	Tyler Fauerbach 	 
	 	Title:  	Vice President 	 
	 

Fourth Amendment to Credit Agreement

Signature Page

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