Document:

Exhibit

Exhibit 4.1

SUPPLEMENTAL INDENTURE

SUPPLEMENTAL INDENTURE (this “Supplemental Indenture”), dated as of November 28, 2016, among AmSurg Corp., a Tennessee corporation (the “Issuer”), the Subsidiary Guarantors identified on the signature pages hereto (the “Subsidiary Guarantors”) and U.S. Bank National Association (or its permitted successor), as trustee under the Existing Indenture referred to below (the “Trustee”).
W I T N E S S E T H:
WHEREAS, the Issuer, the Subsidiary Guarantors and the Trustee have heretofore executed an Indenture, dated as of November 20, 2012 (the “Original Indenture”), providing for the issuance by the Issuer of $250,000,000 aggregate principal amount of its 5.625% Senior Notes due 2020 (the “Notes”);
WHEREAS, the Original Indenture has heretofore been supplemented to add additional Subsidiary Guarantors (the Original Indenture, as so supplemented, is hereinafter referred to as the “Existing Indenture”);
WHEREAS, under Section 8.02 of the Existing Indenture, the Issuer, the Subsidiary Guarantors and the Trustee may amend the Existing Indenture with the consent of the Holders of at least a majority in principal amount of Notes then outstanding voting as a single class pursuant to the terms set forth therein; and
WHEREAS, Holders of a majority in principal amount of Notes outstanding voting as a single class have consented to the amendments set forth herein in connection with the tender offer and the consent solicitation of the Issuer commencing on November 14, 2016 with respect to the Notes (the “Tender Offer”); and
WHEREAS, the Issuer and the Subsidiary Guarantors desire to enter into this Supplemental Indenture on the date set forth above for the purpose of making the amendments set forth herein, which amendments will become operative as set forth in Section 4 herein;
WHEREAS, all other conditions and requirements necessary to make this Supplemental Indenture a valid, binding and legal instrument enforceable in accordance with its terms have been performed and fulfilled by the parties hereto, and the execution and delivery thereof have been in all respects duly authorized by the parties hereto.
NOW, THEREFORE, for and in consideration of the foregoing premises, it is mutually covenanted and agreed, for the equal and proportionate benefit of all Holders of the Notes, as follows:
1.DEFINITIONS.  For all purposes of the Existing Indenture and this Supplemental Indenture, except as otherwise expressly provided or unless the context otherwise requires:
(a)    References.  The terms “herein,” “hereof” and other words of similar import refer to the Existing Indenture and this Supplemental Indenture as a whole and not to any particular article, section or other subdivision; and
(b)    Capitalized Terms.  All capitalized terms used in this Supplemental Indenture but not defined herein shall have the meanings assigned to such terms in the Existing Indenture.
2.    ELIMINATION AND AMENDMENT OF CERTAIN DEFINED TERMS IN ARTICLE I OF THE EXISTING INDENTURE.  From and as of the Operational Time (as defined in Section 4(b) of this Supplemental Indenture), any defined terms appearing in Article I of the Existing Indenture or elsewhere in the Existing Indenture, and all references thereto, that are used solely in the sections, subsections or provisions of the 

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Existing Indenture deleted from the Existing Indenture by virtue of Section 3 of this Supplemental Indenture shall be deleted in their entireties from Section 1.01 of the Existing Indenture.
3.    AMENDMENT OF CERTAIN PROVISIONS OF ARTICLE IV, V AND VI AND OTHER RELATED PROVISIONS OF THE EXISTING INDENTURE.
(a)    Amendment of Article IV of the Existing Indenture.  From and as of the Operational Time (as defined in Section 4(b) of this Supplemental Indenture), Article IV of the Existing Indenture shall be amended by: (i) deleting the first paragraph of Section 4.02; (ii) deleting “also” in the second paragraph of Section 4.02; and (iii) deleting Sections 4.06, 4.07, 4.08, 4.09, 4.10, 4.12, 4.14 and 4.20 in their entireties, together with any references thereto in the Existing Indenture.
(b)    Amendment of Section 5.01 of the Existing Indenture.  From and as of the Operational Time (as defined in Section 4(b) of this Supplemental Indenture), Section 5.01 of the Existing Indenture shall be amended by deleting subsection (a)(iii) in its entirety.
(c)    Amendment of Article VI of the Existing Indenture.  From and as of the Operational Time (as defined in Section 4(b) of this Supplemental Indenture), Article VI of the Existing Indenture shall be amended by deleting subsections 6.01(e) and (f), in their entireties, together with any references thereto in the Existing Indenture.
(d)    Amendment of Additional Provisions of the Existing Indenture.  From and as of the Operational Time (as defined in Section 4(b) of this Supplemental Indenture), any and all additional provisions of the Existing Indenture shall be deemed amended to reflect the intentions of the amendments provided for in this Section 3 and elsewhere herein.
4.    EFFECT OF SUPPLEMENTAL INDENTURE; OPERATION OF AMENDMENTS.
(a)    Effect of Supplemental Indenture.  In accordance with Section 8.02 of the Existing Indenture, upon the execution of this Supplemental Indenture, the Existing Indenture shall be modified in accordance herewith, and this Supplemental Indenture shall form a part of the Existing Indenture for all purposes; and every Holder of the Notes heretofore authenticated and delivered under the Existing Indenture shall be bound hereby.  Except as modified by this Supplemental Indenture, the Existing Indenture and the Notes, and the rights of the Holders of the Notes thereunder, shall remain unchanged and in full force and effect.
(b)    Operation of Amendments.  The provisions of this Supplemental Indenture shall not become operative until the date and time (such date and time, the “Operational Time”) the Issuer notifies (in writing) D.F. King & Co., Inc., as depositary for the Notes under the Tender Offer (the “Depositary”), that the Issuer has purchased the Notes tendered and not withdrawn pursuant to the Tender Offer.  In the event the Issuer notifies (in writing) the Depositary that it has withdrawn or terminated the Tender Offer prior to the Operational Time, this Supplemental Indenture shall be terminated and be of no force or effect and the Existing Indenture shall not be modified hereby.  The Issuer shall promptly notify the Trustee in writing of any notice it gives to the Depositary.
5.    MATTERS CONCERNING THE TRUSTEE.  The Trustee accepts the trusts of the Existing Indenture, as amended and supplemented by this Supplemental Indenture, and agrees to perform the same, but only upon the terms and conditions set forth in the Existing Indenture, as amended and supplemented by this Supplemental Indenture, to which the parties hereto and the Holders from time to time of the Notes agree and, except as expressly set forth in the Existing Indenture, as amended and supplemented by this Supplemental Indenture, shall incur no liability or responsibility in respect thereof.  Without limiting the generality of the foregoing, the recitals contained herein shall be taken as the statements of the Issuer, and the Trustee assumes no responsibility for their correctness, and the Trustee makes no representation as to the validity or sufficiency of this Supplemental Indenture or any consents thereto.

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6.    RATIFICATION AND CONFIRMATION OF THE EXISTING INDENTURE.  Except as expressly amended hereby, the Existing Indenture is in all respects ratified and confirmed and all the terms, provisions and conditions thereof shall be and remain in full force and effect.
7.    MISCELLANEOUS.
(a)    Binding Effect.  All agreements of the Issuer in this Supplemental Indenture shall be binding upon the Issuer's successors.  All agreements of the Subsidiary Guarantors in this Supplemental Indenture shall be binding upon such Subsidiary Guarantors’ successors.  All agreements of the Trustee in this Supplemental Indenture shall be binding upon its successors.
(b)    NEW YORK LAW TO GOVERN.  THE LAW OF THE STATE OF NEW YORK SHALL GOVERN AND BE USED TO CONSTRUE THIS SUPPLEMENTAL INDENTURE.
(c)    Conflict with Trust Indenture Act of 1939.  If and to the extent that any provision of this Supplemental Indenture limits, qualifies or conflicts with the duties imposed by Sections 310-317 of the Trust Indenture Act of 1939, as amended (the “Trust Indenture Act”), by operation of Section 318(c) of the Trust Indenture Act, the imposed duties shall control.
(d)    Headings for Convenience of Reference.  The titles and headings of the sections of this Supplemental Indenture have been inserted for convenience of reference only, are not to be considered a part hereof and shall in no way modify or restrict any of the terms or provisions hereof.
(e)    Counterparts.  This Supplemental Indenture may be executed in any number of counterparts, each of which so executed shall be deemed to be an original, but such counterparts shall constitute but one and the same agreement.
(f)    Severability.  In case any provision of this Supplemental Indenture shall be determined to be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions hereof or of the Existing Indenture shall not in any way be affected or impaired thereby.
(g)    Effect Upon Existing Indenture.  This Supplemental Indenture shall form a part of Existing Indenture for all purposes, and every holder of Notes heretofore or hereafter authenticated and delivered shall be bound hereby.
(h)    Trustee.  The Trustee shall not be responsible in any manner whatsoever for or in respect of the validity or sufficiency of this Supplemental Indenture or for or in respect of the recitals contained herein, all of which recitals are made solely by the Subsidiary Guarantors and the Issuer.
(signature pages follow)

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IN WITNESS WHEREOF, the Issuer, Subsidiary Guarantors and the Trustee have caused this Supplemental Indenture to be duly executed by their respective officers thereunto duly authorized and their respective corporate seals, duly attested, to be hereunto affixed all as of the day and the year first above written.

AMSURG CORP.
	
			
	 
	By:
	/s/ Claire M. Gulmi

	 
	Name:
	Claire M. Gulmi

	 
	Title:
	Executive Vice President and Chief Financial Officer

SUBSIDIARY GUARANTORS:

AMSURG HOLDINGS, INC. 
AMSURG ANESTHESIA MANAGEMENT SERVICES, LLC 
AMSURG EC TOPEKA, INC.
AMSURG EC ST. THOMAS, INC.
AMSURG EC BEAUMONT, INC.
AMSURG KEC, INC.
AMSURG EC SANTA FE, INC.
AMSURG EC WASHINGTON, INC.
AMSURG TORRANCE, INC.
AMSURG ABILENE, INC.
AMSURG SUNCOAST, INC.
AMSURG LA JOLLA, INC.
AMSURG HILLMONT, INC.
AMSURG PALMETTO, INC.
AMSURG NORTHWEST FLORIDA, INC.
AMSURG OCALA, INC.
AMSURG MARYVILLE, INC.
AMSURG BURBANK, INC.
AMSURG MELBOURNE, INC.
AMSURG EL PASO, INC.
AMSURG CRYSTAL RIVER, INC.
AMSURG ABILENE EYE, INC.
AMSURG INGLEWOOD, INC.
AMSURG SAN ANTONIO TX, INC.
AMSURG SAN LUIS OBISPO CA, INC.
AMSURG TEMECULA CA, INC.
AMSURG ESCONDIDO CA, INC.
AMSURG SCRANTON PA, INC.
AMSURG ARCADIA CA, INC.
AMSURG MAIN LINE PA, LLC
AMSURG OAKLAND CA, INC.
AMSURG LANCASTER PA, LLC
AMSURG POTTSVILLE PA, LLC
AMSURG GLENDORA CA, INC.
AMSURG KISSIMMEE FL, INC.
AMSURG ALTAMONTE SPRINGS FL, INC.
NSC RBO EAST, LLC
LONG BEACH NSC, LLC
TORRANCE NSC, LLC
DAVIS NSC, LLC
FULLERTON NSC, LLC

Signatures - Continued

SAN ANTONIO NSC, LLC
AUSTIN NSC, LLC
TWIN FALLS NSC, LLC
KENWOOD NSC, LLC
TOWSON NSC, LLC
NSC WEST PALM, LLC
TAMPA BAY NSC, LLC
CORAL SPRINGS NSC, LLC
WESTON NSC, LLC
AMSURG COLTON CA, INC.
AMSURG FRESNO ENDOSCOPY, INC.
AMSURG TEMECULA II INC.
AMSURG FINANCE, INC.
SHI II, LLC
ASDH I, LLC

	
			
	 
	By:
	/s/ Claire M. Gulmi

	 
	Name:
	Claire M. Gulmi

	 
	Title:
	Vice President, Secretary and Treasurer

AUSTIN NSC, LP

By:  Austin NSC, LLC, its general partner

	
			
	 
	By:
	/s/ Claire M. Gulmi

	 
	Name:
	Claire M. Gulmi

	 
	Title:
	Vice President, Secretary and Treasurer

WILTON NSC, LLC

By: AmSurg Holdings, Inc. as the managing member

	
			
	 
	By:
	/s/ Claire M. Gulmi

	 
	Name:
	Claire M. Gulmi

	 
	Title:
	Vice President, Secretary and Treasurer

Signatures - Continued

ANESTHESIA AND PAIN MANAGEMENT SERVICES OF CALIFORNIA, INC.
ANESTHESIOLOGY OF JUPITER, P.A. 
MEDICAL ANESTHESIA CONSULTANTS MEDICAL GROUP, INC.
NEW JERSEY HEALTHCARE SPECIALISTS, P.C. 
NORTH TEXAS PERINATAL ASSOCIATES, P.A. 
SHERIDAN ACQUISITION ASSOCIATES II, P.A. 
SHERIDAN ACQUISITION ASSOCIATES, P.A. 
SHERIDAN ANESTHESIA SERVICES OF MARYLAND, P.C.
SHERIDAN ANESTHESIA SERVICES OF MINNESOTA, P.C.
SHERIDAN CRITICAL CARE SERVICES, P.A.
SHERIDAN HEALTHCARE OF ARKANSAS, P.A.
SHERIDAN HEALTHCARE OF CONNECTICUT, P.C.
SHERIDAN HEALTHCARE OF MASSACHUSETTS, P.C. 
SHERIDAN HEALTHCARE OF NORTH TEXAS, P.A.
SHERIDAN HEALTHCARE OF TEXAS, P.A. 
TRI-COUNTY PAIN MANAGEMENT, P.A.
SHERIDAN EMERGENCY PHYSICIAN SERVICES OF INDIANA, P.C.
SHERIDAN ANESTHESIA SERVICES OF PENNSYLVANIA, P.C.

	
			
	 
	By:
	/s/ Gilbert Drozdow

	 
	Name:
	Gilbert Drozdow

	 
	Title:
	President

Signatures - Continued

ALL WOMEN'S HEALTHCARE HOLDINGS, INC.
ALL WOMEN'S HEALTHCARE, INC.
ALL WOMEN'S HEALTHCARE OF DADE, INC.
ALL WOMEN'S HEALTHCARE OF SAWGRASS, INC.
ALL WOMEN'S HEALTHCARE OF WEST BROWARD, INC.
ALL WOMEN'S HEALTHCARE SERVICES, INC.
COMPREHENSIVE TELERADIOLOGY SOLUTIONS, INC.
DISCOVERY CLINICAL RESEARCH, INC.
FLORIDA UNITED RADIOLOGY, L.C.
GLOBAL SURGICAL PARTNERS, INC.
ICS RADIOLOGY, INC.
JUPITER IMAGING ASSOCIATES, INC.
RADIOLOGY ASSOCIATES OF HOLLYWOOD, INC.
SHERIDAN RADIOLOGY SERVICES, INC.
SHERIDAN RADIOLOGY MANAGEMENT SERVICES, INC.
SHERIDAN RADIOLOGY SERVICES OF CENTRAL FLORIDA, INC.
SHERIDAN RADIOLOGY SERVICES OF KENTUCKY, INC.
SHERIDAN RADIOLOGY SERVICES OF PINELLAS, INC. 
SHERIDAN RADIOLOGY SERVICES OF SOUTH FLORIDA, INC.
FM HEALTHCARE SERVICES, INC. 
FMO HEALTHCARE HOLDINGS, INC.
FO INVESTMENTS, INC.
FO INVESTMENTS II, INC. 
FO INVESTMENTS III, INC.

	
			
	 
	By:
	/s/ Claire M. Gulmi

	 
	Name:
	Claire M. Gulmi

	 
	Title:
	Vice President and Treasurer

Signatures - Continued

ANESTHESIOLOGISTS OF GREATER ORLANDO, INC. 
ANESTHESIOLOGY ASSOCIATES OF TALLAHASSEE, INC.
BETHESDA ANESTHESIA ASSOCIATES, INC.
BOCA ANESTHESIA SERVICE, INC.
COMPREHENSIVE PAIN MEDICINE, INC. 
DRS. ELLIS, ROJAS, ROSS & DEBS, INC. 
FLAMINGO ANESTHESIA ASSOCIATES, INC.
GREATER FLORIDA ANESTHESIOLOGISTS, LLC
GYNECOLOGIC ONCOLOGY ASSOCIATES, INC. 
INTERVENTIONAL REHABILITATION OF SOUTH FLORIDA, INC.
JACKSONVILLE BEACHES ANESTHESIA ASSOCIATES, INC.
JUPITER ANESTHESIA ASSOCIATES, L.L.C.
JUPITER HEALTHCARE, LLC
NEW GENERATIONS BABEE BAG, INC. 
NORTH FLORIDA PERINATAL ASSOCIATES, INC.
PARITY HEALTHCARE, INC.
SHERIDAN ANESTHESIA SERVICES OF ALABAMA, INC.
SHERIDAN ANESTHESIA SERVICES OF LOUISIANA, INC.
SHERIDAN ANESTHESIA SERVICES OF OKLAHOMA, INC.
SHERIDAN ANESTHESIA SERVICES OF VIRGINIA, INC.
SHERIDAN CHILDREN'S HEALTHCARE SERVICES, INC.
SHERIDAN CHILDREN’S HEALTHCARE SERVICES OF ARIZONA, INC.
SHERIDAN CHILDREN'S HEALTHCARE SERVICES OF LOUISIANA, INC.
SHERIDAN CHILDREN'S HEALTHCARE SERVICES OF NEW MEXICO, INC. 
SHERIDAN CHILDREN’S HEALTHCARE SERVICES OF VIRGINIA, INC.
SHERIDAN CLINICAL RESEARCH, INC.
SHERIDAN EMERGENCY PHYSICIAN SERVICES, INC.
SHERIDAN EMERGENCY PHYSICIAN SERVICES OF MISSOURI, INC.
SHERIDAN EMERGENCY PHYSICIAN SERVICES OF NORTH MISSOURI, INC.
SHERIDAN EMERGENCY PHYSICIAN SERVICES OF SOUTH DADE, INC.
SHERIDAN EMERGENCY PHYSICIAN SERVICES OF SOUTH FLORIDA, INC.
SHERIDAN HEALTHCARE, INC.
SHERIDAN HEALTHCARE OF LOUISIANA, INC.
SHERIDAN HEALTHCARE OF MISSOURI, INC.
SHERIDAN HEALTHCARE OF VERMONT, INC.
SHERIDAN HEALTHCARE OF VIRGINIA, INC.
SHERIDAN HEALTHCARE OF WEST VIRGINIA, INC. 
SHERIDAN HEALTHCORP, INC.
SHERIDAN HEALTHCORP OF CALIFORNIA, INC.
SHERIDAN HEALTHY HEARING SERVICES, INC. 
SHERIDAN HOLDINGS, INC. 
SHERIDAN INVESTCO, LLC
SOUTHEAST PERINATAL ASSOCIATES, INC. SUNBEAM ASSET, LLC
SUNBEAM INTERMEDIATE HOLDINGS, INC.
SUNBEAM PRIMARY HOLDINGS, INC.

Signatures - Continued

TENNESSEE VALLEY NEONATOLOGY, INC. 
TIVA HEALTHCARE, INC.
BAY AREA ANESTHESIA, L.L.C.
COASTAL ANESTHESIA STAFFING, LLC
COASTAL ANESTHESIOLOGY    CONSULTANTS, LLC
SHERIDAN CHILDREN'S HEALTHCARE SERVICES OF OHIO, INC.
SHERIDAN CHILDREN'S HEALTHCARE SERVICES OF KENTUCKY, INC.
SHERIDAN ROP SERVICES OF VIRGINIA, INC.
SHERIDAN CHILDREN'S SERVICES OF ALABAMA, INC.
MEDICAL INFORMATION MANAGEMENT SOLUTIONS, LLC

	
			
	 
	By:
	/s/ Claire M. Gulmi

	 
	Name:
	Claire M. Gulmi

	 
	Title:
	Chief Executive Officer

Signatures - Continued

CHANDLER EMERGENCY MEDICAL GROUP, L.L.C. D/B/A PREMIER EMERGENCY MEDICAL SPECIALISTS

	
			
	 
	By:
	/s/  Claire M. Gulmi

	 
	Name:
	Claire M. Gulmi

	 
	Title:
	Manager

PARTNERS IN MEDICAL BILLING, INC.

	
			
	 
	By:
	/s/  Jillian Marcus

	 
	Name:
	Jillian Marcus

	 
	Title:
	President

SHERIDAN ANESTHESIA SERVICES OF GEORGIA, P.C.
MEDICAL EMERGENCY CONSULTANTS OF CALIFORNIA, INC.
F&S APEX, INC.
F&S RADIOLOGY P.C.
FRANKLIN & SEIDELMANN, INC.
FSH RADIOLOGY, INC.
SHERIDAN ROP SERVICES OF FLORIDA, INC.
SENTINEL HEALTHCARE SERVICES, LLC

	
			
	 
	By:
	/s/ Jillian Marcus

	 
	Name:
	Jillian Marcus

	 
	Title:
	Vice President

Signatures - Continued

SHERIDAN EMERGENCY PHYSICIAN SERVICES OF GEORGIA, LLC
SHERIDAN EMERGENCY PHYSICIAN SERVICES OF SOUTH CAROLINA, P.A.
SHERIDAN EMERGENCY PHYSICIAN SERVICES OF KANSAS, P.A.

	
			
	 
	By:
	/s/ Paul Anthony Andrulonis

	 
	Name:
	Paul Anthony Andrulonis

	 
	Title:
	President

SHERIDAN CHILDREN'S HEALTHCARE SERVICES OF COLORADO, P.C.
SHERIDAN CHILDREN'S HEALTHCARE SERVICES OF SOUTH CAROLINA, P.A.
SHERIDAN CHILDREN'S HEALTHCARE SERVICES OF NORTH CAROLINA, P.A.
SHERIDAN CHILDREN'S HEALTHCARE SERVICES OF NEW JERSEY, P.C.
SHERIDAN CHILDREN'S HEALTHCARE SERVICES OF TENNESSEE, P.C.

	
			
	 
	By:
	/s/ M. Richard Auerbach

	 
	Name:
	M. Richard Auerbach

	 
	Title:
	President

PHYSICIAN OFFICE PARTNERS, INC.

	
			
	 
	By:
	/s/ Robert Davey

	 
	Name:
	Robert Davey

	 
	Title:
	President

CORAL ANESTHESIA ASSOCIATES, INC. 
PAIN PHYSICIANS OF CENTRAL FLORIDA, P.A.

	
			
	 
	By:
	/s/ Andrew Greenfield

	 
	Name:
	Andrew Greenfield

	 
	Title:
	President

ORANGE ANESTHESIA ASSOCIATES, INC. 

	
			
	 
	By:
	/s/ Andrew Guttman

	 
	Name:
	Andrew Guttman

	 
	Title:
	President

Signatures - Continued

SHERIDAN ACQUISITION ASSOCIATES OF GEORGIA, P.C.
NORTHSIDE ANESTHESIOLOGY CONSULTANTS, L.L.C.

	
			
	 
	By:
	/s/ Carey Weiss

	 
	Name:
	Carey Weiss

	 
	Title:
	President

NAC PROPERTIES, LLC
VALLEY ANESTHESIOLOGY CONSULTANTS, INC.

	
			
	 
	By:
	/s/ Robert Coward

	 
	Name:
	Robert Coward

	 
	Title:
	President

U. S. BANK NATIONAL ASSOCIATION,
AS TRUSTEE 

	
			
	 
	By:
	/s/ Wally Jones

	 
	Name:
	Wally Jones

	 
	Title:
	Vice PresidentExhibit

Exhibit 10.1

FORBEARANCE AGREEMENT

THIS FORBEARANCE AGREEMENT (this “Agreement”) dated as of December 2, 2016, is by and between AURORA ENERGY PARTNERS, a Texas general partnership (“Borrower”), and TEXAS CAPITAL BANK, NATIONAL ASSOCIATION (“Lender”).

WITNESSETH:

WHEREAS, Borrower and Lender are parties to that certain Credit Agreement dated as of February 20, 2014 (as has been or may be further amended, supplemented, restated or otherwise modified from time to time, the “Credit Agreement”);

WHEREAS, certain Events of Default have occurred as a result of (a) the failure by Borrower timely to pay accrued interest on June 1, 2015, July 1, 2015, and August 1, 2015, in violation of Section 2.7(a) of the Credit Agreement, (b) the failure by Borrower to make the payments required under Section 2.9(e) of the Credit Agreement on or before June 1, 2015, July 1, 2015, August 1, 2015, September 1, 2015, October 1, 2015, November 1, 2015, December 1, 2015, January 1, 2016, February 1, 2016, March 1, 2016, April 1, 2016, May 1, 2016, June 1, 2016, July 1, 2016, August 1, 2016, September 1, 2016, October 1, 2016, November 1, 2016, and December 1, 2016, (c) the failure by Borrower to pay the “Deficiency” (as defined in that certain letter from Lender to Borrower dated as of April 13, 2015, which letter shall hereinafter be referred to as the “Deficiency Notice”) in full in violation of Section 2.9(f)(ii)(A) of the Credit Agreement, (d) the failure by Borrower to deliver the annual financial statements of Victory and its Subsidiaries and related Compliance Certificate for the fiscal year ended December 31, 2015, in violation of Sections 7.1(a) and (c) of the Credit Agreement, (e) the failure by Borrower to deliver or timely to deliver the quarterly financial statements of Victory and its Subsidiaries and related Compliance Certificate for the fiscal quarters ended March 31, 2015, June 30, 2015, and December 31, 2015, in violation of Sections 7.1(b) and (c) of the Credit Agreement, (f) the failure by Borrower to deliver the quarterly financial statements of Navitus and its Subsidiaries for the fiscal quarter ended March 31, 2015, in violation of Section 7.1(t) of the Credit Agreement, (g) the failure by Borrower to maintain a ratio of EBITDAX to Cash Interest Expense of at least 3.50 to 1.00 for the Test Periods ended March 31, 2015, June 30, 2015, September 30, 2015, December 31, 2015, March 31, 2016, June 30, 2016, and September 30, 2016, in violation of Section 9.1 of the Credit Agreement, and (h) the failure by Borrower to maintain a Current Ratio of at least 1.00 to 1.00 for the fiscal quarters ended June 30, 2015, September 30, 2015, December 31, 2015, March 31, 2016, June 30, 2016, and September 30, 2016, in violation of Section 9.2 of the Credit Agreement (collectively, the “Existing Events of Default”);

WHEREAS, pursuant to Section 2.7(f) of the Credit Agreement and, for the avoidance of doubt, in addition to the increase in each of the Applicable Margins of 200 basis points (2.00%) described in the Deficiency Notice, from the date hereof and for so long as the Existing Events of Default are continuing (a) interest shall accrue on the Outstanding Amount of the Loans at the Default Interest Rate, which includes an additional 200 basis points (2.00%), for a total increase of 400 basis points (4.00%), and (b) interest shall accrue on any past due amount (other than the 

Forbearance Agreement

Page 1

outstanding principal balance) at the Default Interest Rate, which includes an additional 200 basis points (2.00%), for a total increase of 400 basis points (4.00%), in each case, to the fullest extent permitted by applicable Laws, and such accrued interest shall be immediately due and payable;

WHEREAS, the parties hereto entered into that certain Replacement Forbearance Agreement dated as of August 21, 2015 (the “Prior Forbearance Agreement”), but such Prior Forbearance Agreement expired in accordance with the terms thereof; and

WHEREAS, Borrower has requested that Lender forbear from exercising its rights and remedies with respect to the Existing Events of Default as hereinafter provided, and Lender, subject to the terms and conditions contained herein, has agreed to such forbearance to be effective as of the date thereof;

NOW, THEREFORE, in consideration of the mutual covenants and the fulfillment of the conditions set forth herein, the parties hereby acknowledge and agree that the Prior Forbearance Agreement is of no force and effect and further agree as follows:

1.    Definitions.  All capitalized terms defined in the Credit Agreement and not otherwise defined in this Agreement shall have the same meanings as assigned to them in the Credit Agreement when used in this Agreement, unless the context hereof shall otherwise require or provide.

2.    Forbearance.  Unless the Forbearance Period is sooner terminated as provided herein, Lender hereby agrees to forbear from the exercise of any of its rights and remedies under the Credit Agreement and the other Loan Documents in connection with the Existing Events of Default for a period beginning as of the date hereof through and including February 20, 2017 (the “Forbearance Period”).

(a)    Forbearance Limited to Existing Events of Default.  Lender’s forbearance shall be limited solely to the exercise of its rights and remedies arising under the Loan Documents as a result of the Existing Events of Default, and Lender shall not be deemed to have waived any rights or remedies it may have with respect to any other Default or breach occurring thereunder during the Forbearance Period, or any breach of this Agreement.

(b)    No New Defaults.  During the Forbearance Period, there shall occur no Default under any Loan Document or this Agreement, nor shall there be a breach or failure of any warranty, representation or covenant as described in this Agreement.

(c)    Notice Requirements Satisfied.  Each of Borrower and each Guarantor acknowledges that all notice requirements embodied in the Loan Documents and imposed upon Lender in connection with the Existing Events of Default, and the exercise of its remedies therefor (together with all applicable cure and/or grace periods) have been satisfied (or shall be deemed to have been satisfied by this Agreement) without exception, and that upon the expiration or earlier termination of the Forbearance Period, Lender shall, with respect to the Existing Events of Default, have the full right and power to exercise all remedies 

Forbearance Agreement

Page 2

granted to it thereunder without further notice to Borrower and Guarantors or any of them and subject to no other conditions precedent.

(d)    Agreement in the Nature of Forbearance Only.  Each of Borrower and each Guarantor hereby acknowledges that Lender’s obligations under this Agreement are in the nature of a conditional forbearance only, and that Lender has not made any agreement or commitment to modify or extend the Loan Documents beyond the Forbearance Period, and that, upon the termination of the Forbearance Period, Lender shall have the immediate and unconditional right to exercise its remedies under the Loan Documents.

(e)    Termination of the Forbearance Period.  The Forbearance Period shall end on the first to occur of the following:

(i)    End of Forbearance Period.  The expiration of the Forbearance Period.

(ii)    Breach.  A breach by Borrower or any Guarantor of any of the conditions, covenants, representations and/or warranties set forth in this Agreement.

(iii)    New Default.  The occurrence of any new Default under any one or more of the Loan Documents, which shall not include Existing Events of Default.

(iv)    Creditor Enforcement Action.  Any creditor(s) of Borrower or any Guarantor take(s) or threaten(s) any enforcement action against Borrower or any Guarantor which, in Lender’s reasonable judgment, would materially interfere with the operation of Borrower’s or any Guarantor’s business or Lender’s ability to collect the Obligations.

(v)    Bankruptcy.  Borrower or any Guarantor institutes or consents to the institution of any proceeding under any Debtor Relief Law or any proceeding under any Debtor Relief Law relating to Borrower or any Guarantor is instituted without the consent of Borrower or such Guarantor.

(vi)    Proceeding by Borrower or any Guarantor.  Borrower or any Guarantor initiates any judicial, administrative or arbitration proceeding against Lender.

Upon termination of the Forbearance Period, Lender’s agreement to forbear shall terminate automatically without further act or action by Lender, and Lender shall be entitled to exercise any and all rights and remedies available under the Loan Documents and this Agreement, at law, in equity, or otherwise without any further lapse of time, expiration of applicable grace periods, or requirements of notice, all of which are hereby expressly waived by Borrower and each Guarantor.

3.    Conditions of Forbearance.  Lender’s agreement to forbear from exercising any of its rights and remedies as a result of the Existing Events Default shall be subject to and conditioned upon each of the following:

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(a)    On or before the last Business Day of each calendar week occurring hereafter, Borrower shall have made a payment to Lender of at least $20,000 to be applied to the Obligations.

(b)    Lender shall have received such other documents, instruments and certificates as reasonably requested by Lender.

4.    Consent of Guarantors.  Each Guarantor hereby consents, acknowledges and agrees to terms of the forbearance set forth herein and hereby confirms, reaffirms and ratifies in all respects the Guaranty to which it is a party (including without limitation the continuation of such Guarantor’s payment and performance obligations thereunder upon and after the effectiveness of this Agreement) and the enforceability of such Guaranty against such Guarantor in accordance with its terms.

5.    Ratification of Loan Documents.  Each of Borrower, each Guarantor and Lender further agree that the Liens, assignments and security interests created by the Loan Documents (subject to any express release agreement between Borrower or any Guarantor and Lender) shall continue and carry forward until the Obligations are paid and performed in full.  Each of Borrower and each Guarantor further agrees that such Liens, assignments and security interests are hereby ratified and affirmed as valid and subsisting against the Collateral described in the Loan Documents and that this Agreement shall in no manner vitiate, affect or impair the Credit Agreement or the other Loan Documents (except as expressly modified in this Agreement) and that such Liens, assignments, and security interests shall not in any manner be waived, released, altered or modified.  Each of Borrower and each Guarantor acknowledges and agrees that as of the effective date of this Agreement, to its current and actual knowledge, there are no offsets, defenses or claims against any part of the Obligations.

6.    Representations and Warranties.  Borrower hereby certifies that, after giving effect to this Agreement:
(a)    The representations and warranties of Borrower contained in Article 6 of the Credit Agreement, or which are contained in any document furnished at any time under or in connection with the Credit Agreement, that are qualified by materiality are true and correct on and as of the date hereof, and each of the representations and warranties of Borrowers contained in Article 6 of the Credit Agreement, or which are contained in any document furnished at any time under or in connection with the Credit Agreement, that are not qualified by materiality are true and correct in all material respects on and as of the date hereof, except to the extent that such representations and warranties specifically refer to an earlier date, in which case they are true and correct, or true and correct in all material respects, as the case may be, as of such earlier date;
(b)    this Agreement has been duly authorized, executed and delivered by Borrower and each Guarantor and constitutes a legal, valid and binding obligation of such Persons, except as may be limited by general principles of equity or by the effect of any applicable Debtor Relief Laws; and

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(c)    after giving effect to this Agreement and except for the Existing Events of Default, no Default exists.
7.    Conditions to Effectiveness.  This Agreement shall not be effective until the following conditions precedent have been satisfied:

(a)    Lender shall have received counterparts of this Agreement executed by Borrower and each Guarantor;

(b)    Borrower shall have made a payment to Lender of at least $20,000 to be applied to the Obligations;

(c)    No Default shall exist except the Existing Events of Default;

(d)    Borrower and Guarantors shall have paid all costs and expenses incident to the preparation hereof and the consummation of the transaction contemplated hereby, including, but not limited to, reasonable fees and expenses of Winstead PC, legal counsel to Lender (which fees and expenses, as to legal counsel of Lender, shall be paid directly to legal counsel of Lender immediately upon presentation of a bill for legal services rendered); and

(e)    Lender shall have received such other documents, instruments and certificates as reasonably requested by Lender.

Upon the satisfaction of the conditions set forth in this Section 7, this Agreement shall be effective as of the date hereof.
8.    Limitation on Agreements.  The amendments and agreements set forth herein are limited in scope as described herein and shall not be deemed (a) to be a consent under, or waiver of, any other term or condition of the Credit Agreement or any of the other Loan Documents, or (b) to prejudice any right or rights which Lender now has or may have in the future under, or in connection with the Loan Documents, as amended or modified by this Agreement, the other Loan Documents or any of the documents referred to herein or therein.

9.    Governing Law.  This Agreement shall in all respects be governed by, and construed in accordance with, the Laws of the State of Texas.

10.    Headings.  Section headings in this Agreement are included herein for convenience of reference only and shall not constitute a part of this Agreement for any other purpose.

11.    Loan Document.  This Agreement is a Loan Document and is subject to all provisions of the Credit Agreement applicable to Loan Documents, all of which are incorporated in this Agreement by reference the same as if set forth in this Agreement verbatim.

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12.    Enforceability.  Should any one or more of the provisions of this Agreement be determined to be illegal or unenforceable as to one or more of the parties hereto, all other provisions nevertheless shall remain effective and binding on the parties hereto.

13.    No Novation.  This Agreement is given as a modification of, and not as a payment of, the Obligations and is not intended to constitute a novation of the Credit Agreement or any of the other Loan Documents.  All of the Obligations shall continue.

14.    Successors and Assigns.  This Agreement shall be binding upon and inure to the benefit of Borrower, each Guarantor, Lender and their respective successors, assigns and legal representatives; provided, however, neither Borrower nor any Guarantor, without the prior consent of Lender, may assign any of its rights, powers, duties or obligations hereunder.

15.    Counterparts.  This Agreement may be executed in one or more counterparts, each of which shall be deemed an original (including electronic copies) but all of which together shall constitute one and the same instrument.  Telecopies and PDFs of signatures shall be effective as manually executed originals.

16.    Expenses.  Without limiting the provisions of Section 11.1 of the Credit Agreement, Borrower and Guarantors agree to pay all out of pocket costs and expenses (including without limitation reasonable fees and expenses of any counsel, financial advisor, industry advisor and agent for Lender) incurred before or after the date hereof by Lender and its affiliates in connection with the preparation, negotiation, execution, delivery and administration of this Agreement and the Loan Documents.

17.    Release.  As a material part of the consideration for Lender entering into this Agreement, Borrower and each Guarantor (collectively, “Releasor”) agree as follows (the “Release Provision”):

(a)    Releasor hereby releases and forever discharges Lender and Lender’s predecessors, successors, assigns, officers, managers, directors, shareholders, employees, agents, attorneys, representatives, parent corporations, subsidiaries, and affiliates (hereinafter all of the above collectively referred to as “Lender Group”) jointly and severally from any and all claims, counterclaims, demands, damages, debts, agreements, covenants, suits, contracts, obligations, liabilities, accounts, offsets, rights, actions, and causes of action of any nature whatsoever occurring prior to the date hereof, including, without limitation, all claims, demands, and causes of action for contribution and indemnity, whether arising at law or in equity, presently possessed, whether known or unknown, whether liability be direct or indirect, liquidated or unliquidated, presently accrued, whether absolute or contingent, foreseen or unforeseen, and whether or not heretofore asserted (“Claims”), which Releasor may have or claim to have against any of Lender Group.

(b)    Releasor agrees not to sue any of Lender Group or in any way assist any other Person in suing Lender Group with respect to any Claim released herein.  The Release Provision may be pleaded as a full and complete defense to, and may be used as the basis 

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for an injunction against, any action, suit, or other proceeding which may be instituted, prosecuted, or attempted in breach of the release contained herein.

(c)    Releasor acknowledges, warrants, and represents to Lender Group that:

(i)    Releasor has read and understands the effect of the Release Provision.  Releasor has had the assistance of independent counsel of its own choice, or has had the opportunity to retain such independent counsel, in reviewing, discussing, and considering all the terms of the Release Provision; and if counsel was retained, counsel for Releasor has read and considered the Release Provision and advised Releasor to execute the same.  Before execution of this Agreement, Releasor has had adequate opportunity to make whatever investigation or inquiry it may deem necessary or desirable in connection with the subject matter of the Release Provision.

(ii)    Releasor is not acting in reliance on any representation, understanding, or agreement not expressly set forth herein.  Releasor acknowledges that Lender Group has not made any representation with respect to the Release Provision except as expressly set forth herein.

(iii)    Releasor has executed this Agreement and the Release Provision thereof as its free and voluntary act, without any duress, coercion, or undue influence exerted by or on behalf of any Person.

(iv)    Releasor is the sole owner of the Claims released by the Release Provision, and Releasor has not heretofore conveyed or assigned any interest in any such Claims to any other Person.

(d)    Releasor understands that the Release Provision was a material consideration in the agreement of Lender to enter into this Agreement.

(e)    It is the express intent of Releasor that the release and discharge set forth in the Release Provision be construed as broadly as possible in favor of Lender Group so as to foreclose forever the assertion by Releasor of any Claims released hereby against Lender Group.

(f)    If any term, provision, covenant, or condition of the Release Provision is held by a court of competent jurisdiction to be invalid, illegal, or unenforceable, the remainder of the provisions shall remain in full force and effect.

18.    WAIVER OF JURY TRIAL.  TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, BORROWER AND GUARANTORS HEREBY IRREVOCABLY AND EXPRESSLY WAIVE ALL RIGHT TO A TRIAL BY JURY IN ANY ACTION, PROCEEDING, OR COUNTERCLAIM (WHETHER BASED UPON CONTRACT, TORT, OR OTHERWISE) ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OF THE OTHER LOAN DOCUMENTS OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY OR 

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THE ACTIONS OF LENDER IN THE NEGOTIATION, ADMINISTRATION, OR ENFORCEMENT HEREOF OR THEREOF.

THIS AGREEMENT, THE CREDIT AGREEMENT AND THE OTHER LOAN DOCUMENTS REPRESENT THE FINAL AGREEMENT AMONG THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES.  THERE ARE NO UNWRITTEN ORAL AGREEMENTS AMONG THE PARTIES.
[Remainder of page intentionally left blank.  Signature pages follow.]

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EXECUTED to be effective as of the date first above written.
BORROWER:

AURORA ENERGY PARTNERS

By:    Victory Energy Corporation,
its Managing Partner

By:    /s/ Kenneth Hill
Kenneth Hill
CEO

Forbearance Agreement
Signature Page

LENDER:

TEXAS CAPITAL BANK, NATIONAL ASSOCIATION

By:    /s/ Frank K. Stowers    
            Frank K. Stowers
Senior Vice President

Forbearance Agreement
Signature Page

Ratification of Guaranties
Each of the undersigned, as Guarantors of the obligations under one or more Guaranties (each, a “Guaranty”), hereby (a) consents and agrees to this Forbearance Agreement, including, without limitation, the terms and provisions of Sections 2, 4, 5, 13, 14, 16, 17 and 18 thereof, and (b) confirms and agrees that its Guaranty is and shall continue to be in full force and effect and is ratified and confirmed in all respects, except that, on and after the effective date of the Forbearance Agreement each reference in any Guaranty to “the Credit Agreement,” “thereunder,” “thereof,” “therein” or any other expression of like import referring to the Credit Agreement shall mean and be a reference to the Credit Agreement as modified by the Forbearance Agreement.
VICTORY ENERGY CORPORATION

By:    /s/ Kenneth Hill
Kenneth Hill
CEO

Forbearance Agreement
Ratification of Guaranties

NAVITUS ENERGY GROUP

By:    James Capital Consulting, LLC,
its Managing Partner

By:    /s/ Ronald W. Zamber
Ronald W. Zamber
Manager

Forbearance Agreement
Ratification of Guaranties

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