Document:

Exhibit 10.2

 

EXECUTION VERSION

 

FIRST AMENDMENT

 

FIRST AMENDMENT, dated as of April 29, 2016 (the “Amendment”), to the Credit Agreement, dated as of June 27, 2011, as amended and restated as of July 2, 2015 (as further amended, restated, supplemented or otherwise modified from time to time, the “Credit Agreement”), among IRON MOUNTAIN INCORPORATED, a Delaware corporation (the “Parent”), IRON MOUNTAIN INFORMATION MANAGEMENT, LLC, a Delaware limited liability company (the “Company”), each of the other Borrowers party thereto, the several banks and other financial institutions or entities from time to time parties to the Credit Agreement as Lenders (the “Lenders”), JPMORGAN CHASE BANK, TORONTO BRANCH, as Canadian Administrative Agent (in such capacity, the “Canadian Administrative Agent”) and JPMORGAN CHASE BANK, N.A., as administrative agent for the Lenders (in such capacity, the “Administrative Agent”), and the other parties thereto.

 

W I T N E S S E T H:

 

WHEREAS, the Borrowers, the Lenders, the Canadian Administrative Agent and the Administrative Agent are parties to the Credit Agreement;

 

WHEREAS, the Company has requested certain amendments to the Credit Agreement; and

 

WHEREAS, the Lenders are willing to agree to such amendments, subject to the terms and conditions set forth herein;

 

NOW, THEREFORE, in consideration of the premises and mutual covenants contained herein, the parties hereto hereby agree as follows:

 

1.                                      Defined Terms.  Unless otherwise defined herein, all capitalized terms used herein shall have the meanings given to them in the Credit Agreement.

 

2.                                      Amendments to Credit Agreement.

 

(a)                                 Section 1.01 of the Credit Agreement is amended by adding the following definition in the appropriate alphabetical order:

 

“‘Bridge Credit Agreement” shall mean the Bridge Credit Agreement, dated as of April 29, 2016, among the Company, the several banks and other financial institutions or entities from time to time party thereto and JPMorgan Chase Bank, N.A., as administrative agent, as in effect on the date of execution thereof.’”

 

“Bail-In Action”: the exercise of any Write-Down and Conversion Powers by the applicable EEA Resolution Authority in respect of any liability of an EEA Financial Institution.

 

“Bail-In Legislation”: with respect to any EEA Member Country implementing Article 55 of Directive 2014/59/EU of the European Parliament and of the Council of the European Union, the implementing law for such EEA Member Country from time to time which is described in the EU Bail-In Legislation Schedule.

 

“EEA Financial Institution”: (a) any credit institution or investment firm established in any EEA Member Country which is subject to the supervision of an EEA Resolution Authority, (b) any entity established in an EEA Member Country which is a parent of an institution

 

 

described in clause (a) of this definition, or (c) any institution established in an EEA Member Country which is a subsidiary of an institution described in clauses (a) or (b) of this definition and is subject to consolidated supervision with its parent.

 

“EEA Member Country”: any of the member states of the European Union, Iceland, Liechtenstein and Norway.

 

“EEA Resolution Authority”: any public administrative authority or any Person entrusted with public administrative authority of any EEA Member Country (including any delegee) having responsibility for the resolution of any EEA Financial Institution.

 

“EU Bail-In Legislation Schedule”: the EU Bail-In Legislation Schedule published by the Loan Market Association (or any successor Person), as in effect from time to time.

 

“Write-Down and Conversion Powers”: with respect to any EEA Resolution Authority, the write-down and conversion powers of such EEA Resolution Authority from time to time under the Bail-In Legislation for the applicable EEA Member Country, which write-down and conversion powers are described in the EU Bail-In Legislation Schedule.

 

(b)                                 Section 1.01 of the Credit Agreement is further amended by amending the definition of “Funded Indebtedness” to add the following words at the end thereof:

 

“or under the Bridge Credit Agreement.”

 

(c)                                  Section 1.01 of the Credit Agreement is further amended by amending the definition of “Defaulting Lender” to add the following words at the end thereof:

 

“or a Bail-In Action.”

 

(d)                                 Section 9.08(iv) of the Credit Agreement is amended by adding the following parenthetical immediately after the word “Indebtedness”:

 

“(other than Indebtedness under the Bridge Credit Agreement)”

 

(e)                                  Clause (e) of Section 9.08(v) of the Credit Agreement is amended in full to read as follows:

 

“(e) Indebtedness consisting of reimbursement obligations in respect of bank guarantees or letters of credit issued by any bank for the account of the Parent or any of its Subsidiaries, in an aggregate amount incurred pursuant to this clause (e) not to exceed $25,000,000 at any time;”

 

(f)                                   Clause (ii) of Section 9.17(iv) of the Credit Agreement is amended in full to read as follows:

 

“(ii) either (A) such other purchase, redemption or retirement is in connection with a refinancing of such Subordinated Indebtedness or Senior Unsecured Debt with the proceeds of, or in connection with an exchange of such Subordinated Indebtedness or Senior Unsecured Debt for a new series of, Senior Subordinated Debt or Senior Unsecured Debt issued within 180 days of the substantial completion of such purchase, redemption or retirement, (B) after giving effect to such purchase, redemption or retirement and any related incurrence of Indebtedness, the Net Total Lease Adjusted

 

 

Leverage Ratio, on a pro forma basis, after giving effect to such purchase, redemption or retirement and any Stock Repurchase and any Dividend Payment consummated on or prior to the date thereof, and to any borrowings to finance the same, is less than or equal to 6.5 to 1.0 or (C) such other purchase, redemption or retirement is of Indebtedness under the Bridge Credit Agreement.”

 

(g)                                  Section 9.21(e) of the Credit Agreement is amended by adding the following proviso at the end thereof:

 

“; provided that, notwithstanding anything to the contrary in the Canadian Borrower Pledge Agreement, the Canadian Borrowers shall not be required to pledge the Capital Stock of any entity acquired pursuant to the Scheme Implementation Deed, dated as of June 8, 2015, entered into by and among Recall Holdings Limited and the Parent (the “Recall Acquisition”) so long as (i) such entity does not hold any material assets more than five Business Days following the closing of the Recall Acquisition and (ii) resolutions are adopted within such period of five Business Days approving such entity’s wind-up and dissolution, and such dissolution is completed as soon as practicable thereafter.”

 

(g)                                  The following new Section 12.23 shall be added to the end thereof:

 

12.23                 Acknowledgment and Consent to Bail-In of EEA Financial Institutions.

 

Notwithstanding anything to the contrary in any Loan Document or in any other agreement, arrangement or understanding among any such parties, each party hereto acknowledges that any liability of any EEA Financial Institution arising under any Loan Document may be subject to the write-down and conversion powers of an EEA Resolution Authority and agrees and consents to, and acknowledges and agrees to be bound by:

 

(a)  the application of any Write-Down and Conversion Powers by an EEA Resolution Authority to any such liabilities arising hereunder which may be payable to it by any party hereto that is an EEA Financial Institution; and

 

(b)                                 the effects of any Bail-In Action on any such liability, including, if applicable:

 

(i)                                     a reduction in full or in part or cancellation of any such liability;

 

(ii)                                  a conversion of all, or a portion of, such liability into shares or other instruments of ownership in such EEA Financial Institution, its parent entity, or a bridge institution that may be issued to it or otherwise conferred on it, and that such shares or other instruments of ownership will be accepted by it in lieu of any rights with respect to any such liability under this Agreement or any other Loan Document; or

 

(iii)                               the variation of the terms of such liability in connection with the exercise of the write-down and conversion powers of any EEA Resolution Authority.

 

3.                                      Representations and Warranties.  On and as of the date hereof, each of the Parent and the Company hereby confirms, reaffirms and restates the representations and warranties set forth in Section 8 of the Credit Agreement and the representations and warranties in the Basic Documents mutatis mutandis, except to the extent that such representations and warranties expressly relate to a specific earlier date in which case the Parent and the Company each hereby confirms, reaffirms and restates such representations and warranties as of such earlier date.  Each of

 

 

the Parent and the Company represents and warrants that, after giving effect to this Amendment, no Default or Event of Default has occurred and is continuing.

 

4.                                      Effectiveness.  This Amendment shall become effective as of the date set forth above (the “Effective Date”) upon the satisfaction of the following conditions precedent:

 

(a)                                 Amendment.  The Administrative Agent shall have received this Amendment executed and delivered by the Administrative Agent, the Canadian Administrative Agent, the Parent, the Company  and the Lenders party to the Credit Agreement constituting the “Majority Lenders” thereunder and the Term Lenders having more than 50% of the aggregate principal amount of the Term Loans.

 

(b)                                 Security Documents. The Administrative Agent shall have received the Acknowledgment and Confirmation, substantially in the form of Exhibit A hereto, executed and delivered by an authorized officer of the Parent, the Company, each of the other Borrowers and each Subsidiary Guarantor.

 

5.                                      Valid and Binding.  This Amendment shall be binding upon and inure to the benefit of each of the parties hereto and their respective successors and assigns.

 

6.                                      Payment of Expenses.  The Company agrees to pay or reimburse the Administrative Agent for all out-of-pocket costs and expenses incurred in connection with the Amendment, any other documents prepared in connection herewith and the transactions contemplated hereby, including, without limitation, the reasonable fees and disbursements of counsel.

 

7.                                      Reference to and Effect on the Credit Agreement; Limited Effect.  On and after the Effective Date, each reference in the Credit Agreement to “this Agreement”, “hereunder”, “hereof” or words of like import referring to the Credit Agreement shall mean and be a reference to the Credit Agreement as amended hereby.  This Amendment shall not constitute an amendment of any other provision of the Credit Agreement not expressly referred to herein and shall not be construed as a waiver or consent to any further or future action on the part of the Company that would require a waiver or consent of the Lenders, the Canadian Administrative Agent or the Administrative Agent.  Except as expressly amended hereby, the provisions of the Credit Agreement are and shall remain in full force and effect.

 

8.                                      Severability.  Any provision of this Amendment which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.

 

9.                                      Loan Document; Integration.  This Amendment shall constitute a Basic Document.  This Amendment and the other Basic Documents represent the agreement of each Borrower, each Subsidiary Guarantor, the Canadian Administrative Agent, the Administrative Agent and the Lenders with respect to the subject matter hereof, and there are no promises, undertakings, representations or warranties by the Canadian Administrative Agent, the Administrative Agent or any Lender relative to the subject matter hereof not expressly set forth or referred to herein or in the other Basic Documents.

 

 

10.                               GOVERNING LAW.  THIS AMENDMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES UNDER THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

 

11.                               Counterparts.  This Amendment may be executed by one or more of the parties hereto in any number of separate counterparts (which may include counterparts delivered by facsimile transmission), each of which shall be deemed to be an original, and all of which taken together shall be deemed to constitute one and the same instrument.

 

 

IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed and delivered by their proper and duly authorized officers as of the day and year first above written.

 

	
 
    	
IRON   MOUNTAIN INFORMATION MANAGEMENT, LLC
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   John P. Lawrence
    
	
 
    	
 
    	
Name:
    	
John   P. Lawrence
    
	
 
    	
 
    	
Title:
    	
Senior   Vice President and Treasurer
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
IRON   MOUNTAIN INCORPORATED
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   John P. Lawrence
    
	
 
    	
 
    	
Name:
    	
John   P. Lawrence
    
	
 
    	
 
    	
Title:
    	
Senior   Vice President and Treasurer
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
IRON   MOUNTAIN FULFILLMENT SERVICES, INC.
    
	
 
    	
IRON   MOUNTAIN INTELLECTUAL PROPERTY MANAGEMENT, INC.
    
	
 
    	
IRON   MOUNTAIN GLOBAL LLC
    
	
 
    	
IRON   MOUNTAIN US HOLDINGS, INC.
    
	
 
    	
IRON   MOUNTAIN SECURE SHREDDING, INC.
    
	
 
    	
IRON   MOUNTAIN INFORMATION MANAGEMENT SERVICES, INC.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   John P. Lawrence
    
	
 
    	
 
    	
Name:
    	
John   P. Lawrence
    
	
 
    	
 
    	
Title:
    	
Senior   Vice President and Treasurer
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
IRON   MOUNTAIN CANADA OPERATIONS ULC
    
	
 
    	
IRON   MOUNTAIN INFORMATION MANAGEMENT SERVICES CANADA, INC.
    
	
 
    	
IRON   MOUNTAIN SECURE SHREDDING CANADA, INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By
    	
/s/   John P. Lawrence
    
	
 
    	
Name:
    	
John   P. Lawrence
    
	
 
    	
Title:
    	
Senior   Vice President and Treasurer
    
					

 

[Signature Page to First Amendment]

 

 

	
 
    	
IRON   MOUNTAIN SWITZERLAND GMBH
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By
    	
/s/   Christopher LaRochelle
    
	
 
    	
Name:
    	
Christopher   LaRochelle
    
	
 
    	
Title:
    	
Managing   Director
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
IRON   MOUNTAIN EUROPE PLC
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By
    	
/s/   Simon Golesworthy
    
	
 
    	
Name:   
    	
Simon   Golesworthy
    
	
 
    	
Title:
    	
Director
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
IRON   MOUNTAIN HOLDINGS (EUROPE) LIMITED
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By
    	
/s/   Simon Golesworthy
    
	
 
    	
Name:
    	
Simon   Golesworthy
    
	
 
    	
Title:
    	
Director
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
IRON   MOUNTAIN AUSTRALIA HOLDINGS PTY LTD
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By
    	
/s/   Marc Duale
    
	
 
    	
Name:
    	
Marc   Duale
    
	
 
    	
Title:
    	
Director
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
IRON   MOUNTAIN AUSTRALIA SERVICES PTY LTD
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By
    	
/s/   Marc Duale
    
	
 
    	
Name:
    	
Marc   Duale
    
	
 
    	
Title:
    	
Director
    

 

[Signature Page to First Amendment]

 

 

	
 
    	
IRON   MOUNTAIN (UK) LIMITED
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By
    	
/s/   Simon Golesworthy
    
	
 
    	
Name:
    	
Simon   Golesworthy
    
	
 
    	
Title:
    	
Director
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
IRON   MOUNTAIN AUSTRIA ARCHIVIERUNG GMBH
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By
    	
/s/   Robert Nedeljkovic
    
	
 
    	
Name:
    	
Robert   Nedeljkovic
    
	
 
    	
Title:
    	
Managing   Director
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
IRON   MOUNTAIN INTERNATIONAL HOLDINGS BV
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By
    	
/s/   Marc Duale
    
	
 
    	
Name:
    	
Marc   Duale
    
	
 
    	
Title:
    	
Director   A
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
IRON   MOUNTAIN LUXEMBOURG SERVICES
    
	
 
    	
S.À   R.L., LUXEMBOURG, SCHAFFHAUSEN BRANCH
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By
    	
/s/   Christopher LaRochelle
    
	
 
    	
Name:
    	
Christopher   LaRochelle
    
	
 
    	
Title:
    	
Manager
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
IRON   MOUNTAIN HOLDINGS (FRANCE) SNC
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By
    	
/s/   Marc Duale
    
	
 
    	
Name:
    	
Marc   Duale
    
	
 
    	
Title:
    	
Representative
    

 

[Signature Page to First Amendment]

 

 

	
 
    	
IRON   MOUNTAIN FRANCE SAS
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By
    	
/s/   Edward Hladky
    
	
 
    	
Name:
    	
Edward   Hladky
    
	
 
    	
Title:
    	
President
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
IRON   MOUNTAIN PARTICIPATIONS SA
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By
    	
/s/   Patrick Keddy
    
	
 
    	
Name:
    	
Patrick   Keddy
    
	
 
    	
Title:
    	
The   Chairman
    
				

 

[Signature Page to First Amendment]

 

 

	
 
    	
JPMORGAN   CHASE BANK, N.A., as
    
	
 
    	
Administrative   Agent and as a Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:   
    	
/s/   Gene Riego de Dios
    
	
 
    	
 
    	
Name:   Gene Riego de Dios
    
	
 
    	
 
    	
Title:   Vice President
    

 

[Signature Page to First Amendment]

 

 

	
 
    	
JPMORGAN   CHASE BANK, TORONTO BRANCH,
   as Canadian Administrative Agent and as a Canadian Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:   
    	
/s/   Gene Riego de Dios
    
	
 
    	
 
    	
Name:   Gene Riego de Dios
    
	
 
    	
 
    	
Title:   Vice President
    

 

[Signature Page to First Amendment]

 

 

	
 
    	
THE BANK OF   TOKYO-MITSUBISHI UFJ, LTD.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:   
    	
/s/ George Stoecklein
    
	
 
    	
 
    	
Name: George Stoecklein
    
	
 
    	
 
    	
Title: Director
    

 

[Signature Page to First Amendment]

 

 

	
 
    	
Barclays Bank PLC, as   Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:   
    	
/s/ Christopher Aitkin
    
	
 
    	
 
    	
Name: Christopher   Aitkin
    
	
 
    	
 
    	
Title: Assistant Vice   President
    

 

[Signature Page to First Amendment]

 

 

	
 
    	
Bank   of America, N.A.
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:   
    	
/s/   John F. Lynch
    
	
 
    	
 
    	
Name:   John F. Lynch
    
	
 
    	
 
    	
Title:   S.V.P.
    

 

[Signature Page to First Amendment]

 

 

	
 
    	
CITIZENS   BANK, N.A., as Lender
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:   
    	
/s/   Cheryl Carangelo 
    
	
 
    	
 
    	
Name:   Cheryl Carangelo 
    
	
 
    	
 
    	
Title:   Managing Director
    

 

[Signature Page to First Amendment]

 

 

	
 
    	
CREDIT AGRICOLE   CORPORATE & INVESTMENT BANK
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By
    	
/s/ Mark Koneval
    
	
 
    	
Name: Mark Koneval
    
	
 
    	
Title: Managing   Director
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By 
    	
/s/ Gordon Yip
    
	
 
    	
Name: Gordon Yip
    
	
 
    	
Title: Director
    

 

[Signature Page to First Amendment]

 

 

	
 
    	
Goldman   Sachs Bank USA, as Lender
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:   
    	
/s/   Jerry Li
    
	
 
    	
 
    	
Name:   Jerry Li
    
	
 
    	
 
    	
Title:   Authorized Signatory
    

 

[Signature Page to First Amendment]

 

 

Signed for HSBC Bank Australia Limited

(ABN 48 006 434 162) by its attorney under

power of attorney in the presence of:

Power of Attorney Dated 15 May 2012

Permanent Order Book No. 277 Page 036 Item 010

 

 

	
/s/   Diana Jancevska
    	
 
    	
/s/   Brendon Green
    
	
Witness   Signature
    	
 
    	
Attorney   Signature
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Diana   Jancevska
    	
 
    	
Brendon   Green
    
	
Print   Name
    	
 
    	
Print   Name
    

 

[Signature Page to First Amendment]

 

 

	
 
    	
HSBC Bank USA, National   Association, as Lender
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Manuel Burgueno
    
	
 
    	
 
    	
Name: Manuel Burgueno
    
	
 
    	
 
    	
Title: Senior Vice   President
    

 

[Signature Page to First Amendment]

 

 

	
 
    	
HSBC SECURITIES (USA) INC.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Joseph Sheehan
    
	
 
    	
 
    	
Name: Joseph Sheehan
    
	
 
    	
 
    	
Title: Managing Director
    

 

[Signature Page to First Amendment]

 

 

	
 
    	
People’s United Bank   National Association, as Lender
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Yvette D. Hawkins
    
	
 
    	
 
    	
Yvette D. Hawkins
    
	
 
    	
 
    	
Senior Vice President
    

 

[Signature Page to First Amendment]

 

 

	
 
    	
KBC Bank N.V., as Lender
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Lene E. Mosdoel
    
	
 
    	
 
    	
Name: Lene E. Mosdoel
    
	
 
    	
 
    	
Title: Associate
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Thomas R. Lalli
    
	
 
    	
 
    	
Name: Thomas R. Lalli
    
	
 
    	
 
    	
Title: Managing Director
    

 

[Signature Page to First Amendment]

 

 

	
 
    	
MORGAN STANLEY BANK, N.A.,   as Lender
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Robbie Pearson
    
	
 
    	
 
    	
Name: Robbie Pearson
    
	
 
    	
 
    	
Title: Authorized Signatory
    

 

[Signature Page to First Amendment]

 

 

 

	
 
    	
PNC   Bank, National Association, as Lender
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Michael Richards
    
	
 
    	
 
    	
Name:   Michael Richards
    
	
 
    	
 
    	
Title:   Senior Vice President
    

 

[Signature Page to First Amendment]

 

 

	
 
    	
ROYAL   BANK OF CANADA, as Lender
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Sheena Lee
    
	
 
    	
 
    	
Name:   Sheena Lee
    
	
 
    	
 
    	
Title:   Authorized Signatory
    

 

[Signature Page to First Amendment]

 

 

	
 
    	
Scotiabank   Europe plc, as Lender
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   NCF Petherbridge
    
	
 
    	
 
    	
Name:
    	
NCF   Petherbridge
    
	
 
    	
 
    	
Title:
    	
Managing   Director
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Martin Doyle
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Name:
    	
Martin   Doyle
    
	
 
    	
 
    	
Title:
    	
Director
    

 

[Signature Page to First Amendment]

 

 

	
 
    	
SUNTRUST   BANK, as a Lender
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Dave Felty
    
	
 
    	
 
    	
Name:   Dave Felty
    
	
 
    	
 
    	
Title:   Managing Director
    

 

[Signature Page to First Amendment]

 

 

 

	
 
    	
TD   BANK, N.A., as Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Alan Garson
    
	
 
    	
 
    	
Name:   Alan Garson 
    
	
 
    	
 
    	
Title:   Senior Vice President
    

 

[Signature Page to First Amendment]

 

 

	
 
    	
The   Huntington National Bank, as Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Jared Shaner
    
	
 
    	
 
    	
Name:   Jared Shaner
    
	
 
    	
 
    	
Title:   Vice President
    

 

[Signature Page to First Amendment]

 

 

	
 
    	
WEBSTER   BANK, N.A. as Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Raymond C. Hoefling 
    
	
 
    	
 
    	
Name:   Raymond C. Hoefling 
    
	
 
    	
 
    	
Title:   Senior Vice President
    
	
 
    	
 
    

 

[Signature Page to First Amendment]

 

 

	
 
    	
Wells   Fargo Bank, N.A.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   David Mallett 
    
	
 
    	
 
    	
Name:   David Mallett 
    
	
 
    	
 
    	
Title:   Managing Director
    

 

[Signature Page to First Amendment]

 

 

EXHIBIT A

 

ACKNOWLEDGMENT AND CONFIRMATION

 

ACKNOWLEDGMENT AND CONFIRMATION, dated as of April 29, 2016 (this “Acknowledgment and Confirmation”) made by each of the signatories hereto.

 

1.             Reference is made to the First Amendment, dated as of April 29, 2016 (the “Amendment”), to the Credit Agreement, dated as of June 27, 2011, as amended and restated as of July 2, 2015 (as further amended, restated supplemented or otherwise modified from time to time, the “Credit Agreement”), among IRON MOUNTAIN INCORPORATED, a Delaware corporation (the “Parent”), IRON MOUNTAIN INFORMATION MANAGEMENT, LLC, a Delaware limited liability company (the “Company”), each of the other Borrowers party thereto, JPMORGAN CHASE BANK, TORONTO BRANCH, as Canadian Administrative Agent and JPMORGAN CHASE BANK, N.A., as administrative agent for the Lenders (in such capacity, the “Administrative Agent”), and the other parties thereto. Unless otherwise defined herein, all capitalized terms used herein shall have the meanings given to them in the Credit Agreement.

 

2.             Each of the parties hereto hereby agrees, with respect to each Basic Document to which it is a party:

 

(a)           all of its obligations, liabilities and indebtedness under such Basic Document shall remain in full force and effect on a continuous basis after giving effect to the Amendment;

 

(b)           all of the Liens and security interests created and arising under such Basic Document remain in full force and effect on a continuous basis after giving effect to the Amendment, as collateral security for its obligations, liabilities and indebtedness under the Credit Agreement and under its guarantees in the Basic Documents; and

 

(c)           all of the representations and warranties made by it set forth in each such Basic Document are reaffirmed and restated mutatis mutandis, except to the extent that such representations and warranties expressly relate to a specific earlier date in which case such party hereby confirms, reaffirms and restates such representations and warranties as of such earlier date.

 

3.             THIS ACKNOWLEDGMENT AND CONFIRMATION SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.

 

4.             This Acknowledgment and Confirmation may be executed by one or more of the parties hereto on any number of separate counterparts (including by telecopy), and all of said counterparts taken together shall be deemed to constitute one and the same instrument.

 

[rest of page intentionally left blank]

 

 

IN WITNESS WHEREOF, the parties hereto have caused this Acknowledgement and Confirmation to be duly executed and delivered by their proper and duly authorized officers as of the day and year first above written.

 

	
 
    	
IRON   MOUNTAIN INCORPORATED
    
	
 
    	
IRON   MOUNTAIN INFORMATION MANAGEMENT, LLC
    
	
 
    	
IRON   MOUNTAIN FULFILLMENT SERVICES, INC.
    
	
 
    	
IRON   MOUNTAIN INTELLECTUAL PROPERTY MANAGEMENT, INC. 

IRON   MOUNTAIN GLOBAL LLC
    
	
 
    	
IRON   MOUNTAIN US HOLDINGS, INC.
    
	
 
    	
IRON   MOUNTAIN SECURE SHREDDING, INC.
    
	
 
    	
IRON   MOUNTAIN INFORMATION MANAGEMENT SERVICES, INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    	
John   P. Lawrence
    
	
 
    	
 
    	
Title:
    	
Senior   Vice President and Treasurer
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
IRON   MOUNTAIN GLOBAL HOLDINGS, INC.
    
	
 
    	
NETTLEBED   ACQUISITION CORP.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    	
John   P. Lawrence
    
	
 
    	
 
    	
Title:
    	
Senior   Vice President and Treasurer
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
IRON   MOUNTAIN CANADA OPERATIONS ULC
    
	
 
    	
IRON   MOUNTAIN INFORMATION MANAGEMENT SERVICES CANADA, INC.
    
	
 
    	
IRON   MOUNTAIN SECURE SHREDDING CANADA, INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By
    	
 
    
	
 
    	
Name:    John P. Lawrence
    
	
 
    	
Title:    Senior Vice President and Treasurer
    

 

[Signature Page to Acknowledgement and Confirmation]

 

 

	
 
    	
IRON   MOUNTAIN SWITZERLAND GMBH
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By
    	
 
    
	
 
    	
Name:   Christopher LaRochelle
    
	
 
    	
Title:   Managing Director
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
IRON   MOUNTAIN EUROPE PLC
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By
    	
 
    
	
 
    	
Name:   Simon Golesworthy
    
	
 
    	
Title:   Director
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
IRON   MOUNTAIN HOLDINGS (EUROPE) LIMITED
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By
    	
 
    
	
 
    	
Name:   Simon Golesworthy
    
	
 
    	
Title:   Director
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
IRON   MOUNTAIN AUSTRALIA HOLDINGS PTY LTD
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By
    	
 
    
	
 
    	
Name:   Marc Duale
    
	
 
    	
Title:   Director
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
IRON   MOUNTAIN AUSTRALIA SERVICES PTY LTD
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By
    	
 
    
	
 
    	
Name:   Marc Duale
    
	
 
    	
Title:   Director
    
					

 

[Signature Page to Acknowledgement and Confirmation]

 

 

	
 
    	
IRON   MOUNTAIN (UK) LIMITED
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By
    	
 
    
	
 
    	
Name:   Simon Golesworthy
    
	
 
    	
Title:   Director
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
IRON   MOUNTAIN AUSTRIA ARCHIVIERUNG GMBH
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By
    	
 
    
	
 
    	
Name:   Robert Nedeljkovic
    
	
 
    	
Title:   Managing Director
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
IRON   MOUNTAIN INTERNATIONAL HOLDINGS 
    
	
 
    	
BV
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By
    	
 
    
	
 
    	
Name:   Marc Duale
    
	
 
    	
Title:   Director A
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
IRON   MOUNTAIN LUXEMBOURG SERVICES S.À R.L., LUXEMBOURG, SCHAFFHAUSEN BRANCH
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By
    	
 
    
	
 
    	
Name:   Christopher LaRochelle
    
	
 
    	
Title:   Manager
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
IRON   MOUNTAIN HOLDINGS (FRANCE) SNC
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By
    	
 
    
	
 
    	
Name:   Marc Duale
    
	
 
    	
Title:   Representative
    
						

 

[Signature Page to Acknowledgement and Confirmation]

 

 

	
 
    	
IRON   MOUNTAIN FRANCE SAS
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By
    	
 
    
	
 
    	
Name:   Edward Hladky
    
	
 
    	
Title:   President
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
IRON   MOUNTAIN PARTICIPATIONS SA
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By
    	
 
    
	
 
    	
Name:   Patrick Keddy
    
	
 
    	
Title:   The Chairman
    

 

[Signature Page to Acknowledgement and Confirmation]Exhibit 10.1

 

EXECUTION VERSION

 

PLAN SUPPORT AGREEMENT

 

This PLAN SUPPORT AGREEMENT (as amended, supplemented or otherwise modified from time to time in accordance with the terms hereof, this “Agreement”),  dated as of April 30, 2016, is entered into by and among the following parties:

 

(i)                  Midstates Petroleum Company, Inc. and Midstates Petroleum Company LLC (collectively, the “Company”);

 

(ii)               (a) the First Lien Agent (as defined below) and (b) the undersigned holders of First Lien Claims (as defined below) solely in their capacity as holders of First Lien Claims (collectively, with their respective successors and permitted assigns and any subsequent holder of First Lien Claims that becomes party hereto in accordance with the terms hereof, the “Consenting First Lien Lenders”);

 

(iii)                 the undersigned beneficial holders, or investment advisors or managers for the account of beneficial holders, of Second Lien Notes Claims (as defined below) (together with any beneficial holders, or investment advisors or managers for the account of beneficial holders, of Second Lien Notes that subsequently become party hereto in accordance with the terms hereof after the Plan Support Effective Date, the “Consenting Second Lien Noteholders”)  that are members of the ad hoc committee of holders of the Second Lien Notes Claims that is represented by, inter alia, Davis Polk & Wardwell LLP and Houlihan Lokey Capital, Inc. (the “Consenting Second Lien Ad Hoc Committee”);

 

(iv)                the undersigned beneficial holders, or investment advisors or managers for the account of beneficial holders, of both Second Lien Notes Claims and Third Lien Notes Claims (as defined below) (together with any beneficial holders, or investment advisors or managers for the account of beneficial holders, of Second Lien Notes and Third Lien Notes that subsequently become party hereto in accordance with the terms hereof after the Plan Support Effective Date, the “Consenting Cross-Over Noteholders”)  that are members of the ad hoc committee of holders of both Second Lien Notes Claims and Third Lien Notes Claims that is represented by inter alia, Milbank, Tweed, Hadley & McCloy LLP and Centerview Partners LLC (the “Consenting Cross-Over Ad Hoc Committee”).

 

The Company, the First Lien Agent, each Consenting First Lien Lender, each Consenting Noteholder (as defined below), and any subsequent person or entity that becomes a party hereto in accordance with the terms hereof are referred to herein as the “Parties”  and individually as a “Party.”  The Parties other than the Company are collectively referred to herein as the “Consenting Parties.”  Capitalized terms used and not defined herein shall have the meanings ascribed to such terms in the term sheet attached hereto as Exhibit A (the “Term Sheet”). Each Consenting Party intends to be and is bound under this Agreement with respect to any and all claims against, or interests in, the Company held by such Consenting Party.

 

WHEREAS, the Parties and their respective professionals have negotiated a restructuring of the Company (the “Restructuring”  and the transactions contemplated therein, the “Restructuring Transactions”)  that will be implemented and consummated pursuant to a chapter 11 plan of reorganization (as may be modified in accordance with Section 10 hereof), the

 

 

terms of which shall be consistent in all respects with those set forth in this Agreement, the Term Sheet, the RBL Term Sheet (defined below) and the Definitive Documents (as defined below), (hereinafter, the “Plan”)  in cases commenced under chapter 11 (the “Chapter 11 Cases”)  of title 11 of the United States Code (the “Bankruptcy Code”)  in the United States Bankruptcy Court for the Southern District of Texas (the “Bankruptcy Court”);

 

WHEREAS, as of the date hereof, the Consenting First Lien Lenders hold, in the aggregate, approximately 80% of the aggregate outstanding principal amount of the secured revolving first lien credit facility (the “RBL Facility”)  pursuant to the terms of that certain Second Amended and Restated Credit Agreement, dated as of June 8, 2012, by and among the Company, the banks and other financial institutions named therein as lenders (the “First Lien Lenders”),  Sun Trust Bank, N.A., as administrative agent (the “First Lien Agent”),  swing line lender, issuing lender, and lender, and the other mandated lead arranger, bookrunner parties, syndication agent, and co-documentation agents thereto (as amended, modified, or otherwise supplemented from time to time prior to the date hereof, the “First Lien Credit Agreement,”  and the claims and other obligations arising thereunder, the “First Lien Claims”);

 

WHEREAS, as of the date hereof, the Consenting Second Lien Noteholders hold, in the aggregate, approximately 46% of the aggregate outstanding principal amount of the 10.0% second lien senior secured notes due 2020 (the “Second Lien Notes”)  issued under that certain indenture dated as of May 21, 2015, by and among the Company, as issuer, and Wilmington Trust, N.A., as trustee and collateral agent (the “Second Lien Notes Trustee”)  (as amended, modified, or otherwise supplemented from time to time prior to the date hereof, the “Second Lien Indenture,”  and such claims and other obligations arising thereunder, the “Second Lien Notes Claims”);

 

WHEREAS, as of the date hereof, the Consenting Cross-Over Noteholders hold, in the aggregate, (i) approximately 28% of the aggregate outstanding Second Lien Notes; and (ii) approximately 77% of the aggregate outstanding principal amount of the 12.0% third lien senior secured notes due 2020 (the “Third Lien Notes”)  issued under that certain indenture dated as of May 21, 2015, by and among the Company, as issuer, and Wilmington Trust, N.A., as trustee and collateral agent (the “Third Lien Notes Trustee”)  (as amended modified, or otherwise supplemented from time to time prior to the date hereof, the “Third Lien Indenture,”  and such claims and other obligations arising thereunder, the “Third Lien Notes Claims”);

 

WHEREAS, each of the First Lien Lenders, the holders of the Second Lien Notes Claims, and the holders of the Third Lien Notes Claims have security interests in and to substantially of the Company’s assets, including without limitation substantially all of the oil and gas assets, cash and cash equivalents, and other property of the Company, and the rights of these secured parties are set forth in that certain Intercreditor Agreement, dated as of May 21, 2015, executed by and among these secured parties and the Company (as amended, restated or otherwise modified from time to time, the “Intercreditor Agreement”)  which remains in full force and effect;

 

WHEREAS, prior to the commencement of the Chapter 11 Cases, the Company, the Consenting First Lien Lenders, the First Lien Agent, the Consenting Second Lien Noteholders, and the Consenting Cross-Over Noteholders engaged in arm’s length, good faith negotiations

 

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culminating in the Parties’ agreement on a settlement (the “Settlement”),  as more particularly detailed and described in the Term Sheet and the RBL Term Sheet (as defined below), that will be implemented through the Plan and this Agreement and consensually resolves the Parties’ disputes as further detailed in the Term Sheet, the RBL Term Sheet and the Plan, related to, among other things, the Company, the RBL Facility, the Second Lien Notes, the Third Lien Notes, the GUC Claims (as defined below), and any actions, inactions, or transactions occurring before the date on which the Company commences the Chapter 11 Cases (the “Petition Date”),  which date shall be no later than one calendar day after the Plan Support Effective Date (the “Outside Petition Date”);  and

 

WHEREAS, the Parties desire to express to each other their mutual support and commitment in respect of those matters contained within the Plan as well as those set forth herein.

 

NOW, THEREFORE, in consideration of the premises and the mutual covenants and agreements set forth herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties, intending to be legally bound hereunder, do agree as follows:

 

1.                                 Certain Definitions.

 

As used in this Agreement, the following terms have the following meanings:

 

(a)                            “Consenting Noteholders”  means, collectively, the Consenting Second Lien Noteholders and the Consenting Cross-Over Noteholders.

 

(b)                            “Consenting Second Lien Notes Claims”  means any and all Second Lien Notes Claims held by any Consenting Party solely in its capacity as a holder of a Second Lien Notes Claim.

 

(c)                             “Consenting Third Lien Notes Claims”  means any and all Third Lien Notes Claims held by any Consenting Party solely in its capacity as a holder of a Third Lien Notes Claim.

 

(d)                            “Effective Date”  means the effective date of the Plan.

 

(e)                             “GUC Claims”  means any and all unsecured claims against the Company including, but not limited to, claims arising under the Unsecured Notes and any deficiency claims.

 

(f)                              “Prepetition Secured Parties”  means the holders of First Lien Claims, Second Lien Notes Claims, and Third Lien Notes Claims.

 

(g)                             “Plan Support Effective Date”  means the date on which counterpart signature pages to this Agreement shall have been executed and delivered by the Company, the Consenting First Lien Lenders, and the Consenting Noteholders.

 

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(h)                            “Plan Support Period”  means the period commencing on the Plan Support Effective Date and ending on the earlier of the (i) date on which this Agreement is terminated in accordance with Section 6 hereof and (ii) the Effective Date.

 

(i)                                “Requisite Creditors”  means the Requisite First Lien Lenders, Requisite Second Lien Noteholders, and the Requisite Cross-Over Noteholders.

 

(j)                               “Requisite Cross-Over Noteholders”  means, as of the relevant date, Consenting Cross-Over Noteholders that are members of the Consenting Cross-Over Ad Hoc Committee that collectively hold at least a majority of the aggregate outstanding principal amount of the Third Lien Notes Claims held by all of the Consenting Cross-Over Noteholders that are members of the Consenting Cross-Over Ad Hoc Committee as of such date.

 

(k)                            “Requisite First Lien Lenders”  means, as of the relevant date, Consenting First Lien Lenders that collectively hold at least a majority of the aggregate outstanding principal amount of the First Lien Claims.

 

(l)                                “Requisite Second Lien Noteholders”  means, as of the relevant date, Consenting Second Lien Noteholders that are members of the Consenting Second Lien Ad Hoc Committee that collectively hold at least a majority of the aggregate outstanding principal amount of the Second Lien Notes Claims held by all of the Consenting Second Lien Noteholders that are members of the Consenting Second Lien Ad Hoc Committee as of such date.

 

(m)                        “Unsecured Notes”  means the 10.75% senior unsecured notes due 2020, and the 9.25% senior unsecured notes due 2021 issued under the Unsecured Notes Indentures.

 

(n)                            “Unsecured Notes Indentures”  means (i) that certain Indenture, dated as of October 1, 2012, among the Company, as issuers, and Wells Fargo Bank, N.A., as indenture trustee (as amended, restated, supplemented, or otherwise modified from time to time), and (ii) that certain Indenture, dated as of May 31, 2013, among the Company, as issuers, and Wells Fargo Bank, N.A., as indenture trustee (as amended, restated supplemented or otherwise modified from time to time).

 

2.                                 Definitive Documents.

 

(a)                                 The definitive documents (the “Definitive Documents”)  with respect to the Restructuring shall include all documents (including any related orders, agreements, instruments, schedules or exhibits) that are contemplated by the Plan and that are otherwise necessary or desirable to implement, effectuate, or otherwise relate to the Restructuring, including, without limitation: (i) the Plan; (ii) the documents to be filed in the supplement to the Plan; (iii) the disclosure statement for the Plan that is prepared and distributed in accordance with sections 1125, 1126(b), and 1145 of the Bankruptcy Code (the “Disclosure Statement”); (iv) the motion seeking approval of the Disclosure Statement (the “Disclosure Statement Motion”)  and the order approving the Disclosure Statement (the “Disclosure Statement Order”); (v) the order confirming the Plan (the “Confirmation Order”);  (vi) any documentation relating to the use of cash collateral including a motion seeking authority to use cash collateral, an interim order (the “Interim Cash Collateral Order”),  and a final order (the “Final Cash Collateral Order,”  and together with the Interim Cash Collateral Order, the “Cash Collateral Orders”)

 

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approving the same; (vii) the credit agreement with respect to the New Credit Facility having the terms and conditions as set forth in the term sheet attached hereto as Exhibit B (the “RBL Term Sheet”),  and any agreements, documents or instruments related thereto (the “New Credit Facility Loan Agreements”);  and (viii) any organizational documents, shareholder and member related agreements, or other governance documents for the reorganized Company. Each of the Definitive Documents shall (1) contain terms and conditions consistent in all material respects with this Agreement, the Term Sheet, and the RBL Term Sheet, and (2) shall otherwise be reasonably satisfactory in all respects to the Company, the Requisite First Lien Lenders, the Requisite Second Lien Noteholders and the Requisite Cross-Over Noteholders (solely with respect to any provision directly impacting the 2nd/3rd Lien Plan Settlement (as defined in the Term Sheet)), including with respect to any modifications, amendments, or supplements to such Definitive Documents at any time during the Plan Support Period; provided, however, that solely with respect to the Definitive Documents referenced in clauses (vi) and (vii) hereof, only the Requisite First Lien Lenders and Requisite Second Lien Noteholders shall have such consent rights, and the Cash Collateral Orders and the New Credit Facility Loan Agreements referenced in clauses (vi) and (vii), respectively, must be acceptable in all respects to the Requisite First Lien Lenders; provided  further, however, that solely with respect to the Definitive Documents referenced in clause (viii) hereof, only the Requisite Second Lien Noteholders shall have such consent rights. Notwithstanding anything herein to the contrary, the Consenting Cross-Over Ad Hoc Committee shall have the right to receive all Definitive Documents contemporaneously with the Company, the First Lien Agent, and the Consenting Second Lien Ad Hoc Committee, as applicable.

 

(b)                                 Each of the exhibits attached hereto (such as the Term Sheet and the RBL Term Sheet) and any schedules to such exhibits (collectively, the “Exhibits and Schedules”)  is expressly incorporated herein and made a part of this Agreement, and all references to this Agreement shall include the Exhibits and Schedules. In the event of any inconsistency between this Agreement (without reference to the Exhibits and Schedules) and the Exhibits and Schedules, this Agreement (without reference to the Exhibits and Schedules) shall govern.

 

3.                                      Agreements of the Consenting Parties.

 

(a)                                 During the Plan Support Period, subject to the terms and conditions hereof, each Consenting Party other than the Consenting First Lien Lenders, in its capacity as a holder of Second Lien Notes Claims, Third Lien Notes Claims, and/or GUC Claims (as applicable), or each Consenting First Lien Lender, solely in its capacity as holders of First Lien Claims now or hereafter acquired, agrees, solely with respect to itself, that:

 

(i)                                it will use its commercially reasonable efforts to support the Settlement, the Restructuring and the transactions contemplated by the Term Sheet, as applicable, and to act in good faith and take all commercially reasonable actions necessary to consummate the Restructuring and the transactions contemplated by the Term Sheet and the Plan in a manner consistent with this Agreement, including the timelines set forth herein;

 

(ii)                             it shall not (A) direct any administrative agent, collateral agent, or indenture trustee (as applicable) to take any action inconsistent with such Consenting Party’s obligations under this Agreement, and, if any applicable administrative agent, collateral agent, or

 

5

 

indenture trustee takes any action inconsistent with such Consenting Party’s obligations under this Agreement, such Consenting Party shall use its commercially reasonable efforts to request that such administrative agent, collateral agent, or indenture trustee (as applicable) cease and refrain from taking any such action, or (B) directly or indirectly encourage any other person or entity to directly or indirectly, (x) object to, delay, impede, or take any other action or any inaction to interfere with the acceptance, approval, implementation, consummation, or amendment of the Plan (whether before or after confirmation, provided that such amendment is consistent with the Term Sheet, the RBL Term Sheet and this Agreement), including the Settlement contained therein; (y) propose, file, support, vote for, or take any other action in furtherance of any restructuring, workout, plan of arrangement, or plan of reorganization for the Company that is inconsistent with this Agreement, the RBL Term Sheet or the Term Sheet; or (z) exercise any right or remedy for the enforcement, collection, or recovery of any claim against the Company except in a manner consistent with this Agreement, the Cash Collateral Orders, and the Plan, as applicable;

 

(iii)                               subject to the receipt of the Disclosure Statement pursuant to the Disclosure Statement Order, it shall (A) timely vote or cause to be voted any First Lien Claims, Second Lien Notes Claims, Third Lien Notes Claims, and/or GUC Claims (as applicable) it holds that are subject to this Agreement to accept the Plan (to the extent permitted to vote) by timely delivering its duly executed and completed ballot or ballots, as applicable, accepting the Plan on a timely basis following commencement of the solicitation of acceptances of the Plan in accordance with sections 1125(g) and 1126 of the Bankruptcy Code, (B) not change or withdraw such vote or the elections described below (or cause or direct such vote or elections to be changed or withdrawn); provided, however, that such vote or elections shall be immediately revoked (and deemed void ab initio) by all Consenting Parties upon the expiration of the Plan Support Period or the termination of this Agreement, and (C) to the extent it is permitted to elect whether to opt out of the releases set forth in the Plan, not elect to opt out of the releases set forth in the Plan by timely delivering its duly executed and completed ballot or ballots indicating such election; and

 

(iv)                              use commercially reasonable efforts to support and take all commercially reasonable actions necessary to facilitate the approval of the Disclosure Statement, solicitation of votes on the Plan, and confirmation and consummation of the Plan (it being understood that the Consenting Parties shall not be required to incur any out of pocket cost or expense, or any liability in connection therewith).

 

(b)                                 Transfers. During the Plan Support Period, subject to the terms and conditions hereof, each Consenting Party agrees, solely with respect to itself, that it shall not sell, use, pledge, assign, convey, grant, transfer, permit the participation in, or otherwise dispose of, in whole or in part (each, a “Transfer”)  any ownership (including any beneficial ownership)(1) in the First Lien Claims, the Second Lien Notes Claims, the Third Lien Notes Claims, or GUC Claims that it holds in the capacity in which it executed this Agreement (collectively with the First Lien Claims, the Second Lien Notes Claims, and the Third Lien Notes Claims, for purposes of this

 

(1)              As used herein, the term “beneficial ownership” means the direct or indirect economic ownership of, and/or the power, whether by contract or otherwise, to direct the exercise of the voting rights and the disposition of, all or any portion of the Consenting Party Claims or the right to acquire any such Consenting Party Claims.

 

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Section 3, the “Consenting Party Claims”),  as applicable, or any option thereon or any right or interest therein (including, but not limited to, accomplishing the same, by granting any proxies or depositing any interests in the Consenting Party Claims into a voting trust or by entering into a voting agreement with respect to the Consenting Party Claims), unless (i) the intended transferee is a Consenting Party or (ii) if the intended transferee is not a Consenting Party, such intended transferee executes and delivers to counsel to the Company on the terms set forth below an executed transfer agreement in the form attached hereto as Exhibit C  (a “Transfer Agreement”)  before such Transfer is effective (it being understood and agreed by the Parties that any such Transfer shall not be effective as against the Company until notification of such Transfer and a copy of the executed, unaltered, and unredacted Transfer Agreement is received by counsel to the Company, in each case, on the terms set forth herein) (such transfer, a “Permitted Transfer”  and such party to such Permitted Transfer, a “Permitted Transferee”).

 

(i)                                     Notwithstanding anything to the contrary herein, (A) the foregoing provisions shall not preclude any Consenting Party from settling or delivering any Consenting Party Claims to settle any confirmed transaction pending as of the date of such Consenting Party’s entry into this Agreement (subject to compliance with applicable securities laws and it being understood that such Consenting Party Claims so acquired and held (i.e., not as a part of a short transaction) shall be subject to the terms of this Agreement), (B) a Qualified Marketmaker(2) that acquires any Consenting Party Claims with the purpose and intent of acting as a Qualified Marketmaker for such Consenting Party Claims, shall not be required to execute and deliver to counsel a Transfer Agreement or otherwise agree to be bound by the terms and conditions set forth in this Agreement if the transfer otherwise is a Permitted Transfer; provided, however, that if any of the conditions in this clause (B) is not satisfied, the Qualified Marketmaker will be required to execute and deliver a Transfer Agreement, and (C) to the extent any Party is acting solely in its capacity as a Qualified Marketmaker, it may Transfer any ownership interests in the Consenting Party Claims (as applicable) that it acquires from a holder of the Consenting Party Claims that is not a Consenting Party to a transferee that is not a Consenting Party at the time of such Transfer without the requirement that the transferee be or become a signatory to this Agreement or execute a Transfer Agreement; provided, however, that in the event such Party fails to act solely in its capacity as a Qualified Marketmaker in compliance with this clause (C), any transferee that is not a Consenting Party must execute and deliver a Transfer Agreement.

 

(ii)                                  This Agreement shall in no way be construed to preclude any Consenting Party from acquiring additional Consenting Party Claims; provided, however, that (A) (1) any Consenting Party that is a member of the Consenting Cross-Over Ad Hoc Committee that acquires additional Consenting Party Claims during the Plan Support Period shall reasonably promptly notify the Company and (2) any other Consenting Party that acquires additional Consenting Party Claims during the Plan Support period shall promptly notify the Company and counsel to the First Lien Agent (with respect to transfers of First Lien Claims) or counsel to the

 

(2)              As used herein, the term “Qualified Marketmaker” means an entity that (a) holds itself out to the public or the applicable private markets as standing ready in the ordinary course of business to purchase from customers and sell to customers claims against the Company (or enter with customers into long and short positions in claims against the Company), in its capacity as a dealer or market maker in claims against the Company and (b) is, in fact, regularly in the business of making a market in claims against issuers or borrowers (including debt securities or other debt).

 

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Consenting Second Lien Ad Hoc Committee (with respect to transfers of Second Lien Notes Claims held by members of the Consenting Second Lien Ad Hoc Committee) of such acquisition, including the amount of such acquisition, and (B) such acquired Consenting Party Claims shall automatically and immediately upon acquisition by a Consenting Party be deemed subject to the terms of this Agreement (regardless of when or whether notice of such acquisition is given to the Company), in the case of each of clauses (A) and (B), other than with respect to any Consenting Party Claims acquired by such Consenting Party in its capacity as a Qualified Marketmaker, in accordance with Section 3(b)(i).

 

(iii)                               This Section 3 shall not impose any obligation on the Company to issue any “cleansing letter” or otherwise publicly disclose information for the purpose of enabling a Consenting Party to Transfer any Consenting Party Claims. Notwithstanding anything to the contrary herein, to the extent the Company and another Party have entered into a separate agreement with respect to the issuance of a “cleansing letter” or other public disclosure of information (each such executed agreement, a “Confidentiality Agreement”),  the terms of such Confidentiality Agreement shall continue to apply and remain in full force and effect according to its terms.

 

(iv)                              Any Transfer made in violation of this Section 3(b) shall be void ab initio.

 

4.                                      Additional Agreements of the Consenting Noteholders.

 

(a)                                 In exchange for consideration that is contemplated to be provided under the proposed Settlement, each Consenting Second Lien Noteholder, in its capacity as a holder of Second Lien Notes Claims, agrees that:

 

(i)                                     during the Plan Support Period, each Third Lien Noteholder shall be deemed released and discharged by each of the holders of Consenting Second Lien Notes Claims, to the fullest extent permitted under applicable law, from any and all causes of action and any other claims, debts, obligations, rights, suits, damages, actions, derivative claims, remedies, and liabilities whatsoever existing as of the Plan Support Effective Date (the “Third Lien Released Claims”),  whether known or unknown, foreseen or unforeseen, latent, patent, non-existent at the present time and which may arise in the future or are unanticipated at this time, in law, at equity, or otherwise, whether for tort, contract, or otherwise, including without limitation claims arising out of violations of federal or state securities laws, fraud, misrepresentation (whether intended or negligent), breach of duty, any laws or statutes similar to the foregoing, or otherwise, based in whole or in part upon any act or omission, transaction, or other occurrence or circumstances existing or taking place prior to the Plan Support Effective Date arising from or related in any way to the Company, the RBL Facility, the Second Lien Notes, the Third Lien Notes, the GUC Claims, the Intercreditor Agreement, the purchase, sale, marketing of, or rescission of the purchase or sale of any security of the Company, the subject matter of, or the transactions or events giving rise to, any claim or equity interest that is treated under the RBL Facility, the Second Lien Notes, the Third Lien Notes, or the GUC Claims, and the negotiation, formulation, or preparation of the Term Sheet, the Plan, this Agreement, or related agreements, instruments, or other documents delivered in connection therewith, including those that any holder of a claim against or interest in any holder of Second Lien Notes Claims or

 

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any other entity could have been legally entitled to assert derivatively or on behalf of any other entity;

 

(ii)                                  during the Plan Support Period, it shall not directly or indirectly, or encourage any other entity to directly or indirectly, (A) object to, delay, impede, or take any other action or any inaction to interfere with the acceptance, approval, implementation, consummation, or amendment of the Plan (whether before or after confirmation, provided that such amendment is consistent with this Agreement), including the Settlement contained therein, the valuations contemplated by the Term Sheet, and the treatment provided under the Plan for holders of Second Lien Notes Claims and GUC Claims in the event any or all of the Settlement (as defined in the Term Sheet) is not approved, (B) propose, file, support, vote for, or take any other action in furtherance of any restructuring, workout, plan of arrangement, or plan of reorganization for the Company other than the Plan, (C) exercise any right or remedy for the enforcement, collection, or recovery of any claim against the Company other than as permitted by the Plan or (D) it shall not directly or indirectly, or encourage any other person or entity to directly or indirectly, pursue, litigate, threaten to litigate, or otherwise raise in any proceeding any Third Lien Released Claim; and

 

(iii)                               during the Plan Support Period, it shall not direct the Second Lien Notes Trustee to take any action inconsistent with such Consenting Second Lien Noteholder’s agreements and obligations under this Agreement, and if the Second Lien Notes Trustee takes any action inconsistent with such agreements and obligations, such Consenting Second Lien Noteholder shall reasonably promptly request the Second Lien Notes Trustee to cease and refrain from taking any such action.

 

(b)                                 In exchange for consideration that is contemplated to be provided under the proposed Settlement, each Consenting Cross-Over Noteholder, in its capacity as a holder of Third Lien Notes Claims, agrees that:

 

(i)                                     during the Plan Support Period, each Second Lien Noteholder shall be deemed released and discharged by each of the holders of Consenting Third Lien Notes Claims to the fullest extent permitted under applicable law, from any and all causes of action and any other claims, debts, obligations, rights, suits, damages, actions, derivative claims, remedies, and liabilities whatsoever existing as of the Plan Support Effective Date (the “Second Lien Released Claims”),  whether known or unknown, foreseen or unforeseen, latent, patent, non-existent at the present time and which may arise in the future or are unanticipated at this time, in law, at equity, or otherwise, whether for tort, contract, or otherwise, including without limitation claims arising out of violations of federal or state securities laws, fraud, misrepresentation (whether intended or negligent), breach of duty, any laws or statutes similar to the foregoing, or otherwise, based in whole or in part upon any act or omission, transaction, or other occurrence or circumstances existing or taking place prior to the Plan Support Effective Date arising from or related in any way to the Company, the RBL Facility, the Second Lien Notes, the Third Lien Notes, the GUC Claims, the Intercreditor Agreement, the purchase, sale, marketing of, or rescission of the purchase or sale of any security of the Company, the subject matter of, or the transactions or events giving rise to, any claim or equity interest that is treated under the RBL Facility, the Second Lien Notes, the Third Lien Notes, or the GUC Claims, and the negotiation, formulation, or preparation of the Term Sheet, the Plan, this Agreement, or related agreements,

 

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instruments, or other documents delivered in connection therewith, including those that any holder of a claim against or interest in any holder of Third Lien Notes Claims or any other entity could have been legally entitled to assert derivatively or on behalf of any other entity;

 

(ii)                                  during the Plan Support Period, it shall not directly or indirectly, or encourage any other person or entity to directly or indirectly, (A) object to, delay, impede, or take any other action or any inaction to interfere with the acceptance, approval, implementation, consummation, or amendment of the Plan (whether before or after confirmation, provided that such amendment is consistent with this Agreement), including the Settlement contained therein, the valuations contemplated by the Term Sheet and the contingent treatment provided under the Plan for holders of Third Lien Notes Claims and GUC Claims in the event any or all of the Settlement (as defined in the Term Sheet) is not approved, (B) propose, file, support, vote for, or take any other action in furtherance of any restructuring, workout, plan of arrangement, or plan of reorganization for the Company other than the Plan, (C) exercise any right or remedy for the enforcement, collection, or recovery of any claim against the Company other than as permitted by the Plan or (D) it shall not directly or indirectly, or encourage any other person or entity to directly or indirectly, pursue, litigate, threaten to litigate, or otherwise raise in any proceeding any Second Lien Released Claim; and

 

(iii)                               during the Plan Support Period, it shall not direct the Third Lien Notes Trustee to take any action inconsistent with such Consenting Cross-Over Noteholder’s agreements and obligations under this Agreement, and if the Third Lien Notes Trustee takes any action inconsistent with such agreements and obligations, such Consenting Cross-Over Noteholder shall reasonably promptly request the Third Lien Notes Trustee to cease and refrain from taking any such action.

 

5.                                      Agreements of the Company.

 

(a)                                 Prior to and during the Plan Support Period, subject to the terms and conditions hereof, the Company agrees that it shall, without limitation:

 

(i)                                     (A)(1) complete and file, within the timeframes contemplated herein, the Plan, the Disclosure Statement, and the other Definitive Documents and (2) use commercially reasonable efforts to obtain entry by the Bankruptcy Court of the Cash Collateral Orders, the Disclosure Statement Order and the Confirmation Order within the timeframes contemplated by this Agreement; and (B) use commercially reasonable efforts to obtain any and all required regulatory and/or third-party approvals for the Restructuring embodied in the Plan, if any, and solely to the extent necessary to effectuate the Restructuring;

 

(ii)                                  continue to operate its businesses without material change in such operations or disposition of material assets (unless in such instance, the Required Creditors have consented thereto in writing) in accordance with its business judgment, and confer with the Consenting Parties and their respective representatives, as reasonably requested, to report on operational matters and the general status of ongoing operations;

 

(iii)                               (A) support and take all reasonable actions necessary or reasonably requested by the Requisite Creditors to facilitate the solicitation, confirmation, and

 

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consummation of the Restructuring, the Plan and the transactions contemplated thereby, and (B) not take any action directly or indirectly that is inconsistent with, or that would reasonably be expected to prevent, interfere with, delay or impede the approval of the Disclosure Statement, the solicitation of votes on the Plan, and the confirmation and consummation of the Plan and the Restructuring, including soliciting or causing or allowing any of its agents or representatives to solicit any agreements relating to any chapter 11 plan or restructuring transaction (including, for the avoidance of doubt, a transaction premised on an asset sale of substantially all of the Company’s assets under section 363 of the Bankruptcy Code) other than the Restructuring (an “Alternative Transaction”),  and (C) not, nor encourage any other person to, take any action which would, or would reasonably be expected to, breach or be inconsistent with this Agreement or delay, impede, appeal, or take any other negative action, directly or indirectly, or encourage any other entity to interfere with the acceptance or implementation of the Restructuring;

 

(iv)                              (A) file on the Petition Date such first day motions and pleadings that are reasonably acceptable, in form and substance, to the Requisite Creditors;

 

(B) (i) file the Plan, the Disclosure Statement (other than any exhibits attached thereto), and the Disclosure Statement Motion with the Bankruptcy Court within fourteen (14) calendar days of the Petition Date (the “Plan Filing Date”);  (ii) obtain approval of the Disclosure Statement Motion within forty (40) calendar days of the Plan Filing Date, and (iii) obtain entry of the Confirmation Order within seventy-five (75) calendar days of the Plan Filing Date (such date that the Confirmation Order is entered, the “Confirmation Date”);

 

(C)            cause the Confirmation Order to become effective and enforceable immediately upon its entry and to have the period in which an appeal thereto must be filed commence immediately upon its entry;

 

(v)                                 obtain authority, pursuant to the Cash Collateral Orders, to pay all pre- and postpetition reasonable and documented fees and expenses of (A) the First Lien Agent and its advisors, including, without limitation, the fees and expenses of (1) Mayer Brown LLP, as counsel to the First Lien Agent, (2) local counsel to the First Lien Agent, and (3) FTI Consulting, Inc., as financial advisor to the First Lien Agent; (B) the Consenting Second Lien Ad Hoc Committee and its advisors, including, without limitation, the fees and expenses of (1) Davis Polk & Wardwell LLP, as counsel to the Consenting Second Lien Ad Hoc Committee, (2) local counsel to the Consenting Second Lien Ad Hoc Committee, and (3) Houlihan Lokey Capital, Inc., as financial advisor to the Consenting Second Lien Ad Hoc Committee; and (C) the Consenting Cross-Over Ad Hoc Committee, and their advisors, including, without limitation, the fees and expenses of (1) Milbank, Tweed, Hadley & McCloy LLP, as counsel to the Consenting Cross-Over Ad Hoc Committee, (2) local counsel to the Consenting Cross-Over Ad Hoc Committee, and (3) Centerview Partners LLC, as financial advisors to the Consenting Cross-Over Ad Hoc Committee; provided, however, that the Company shall not be responsible under this Agreement for any fees or expenses referenced in subclauses (B) or (C) hereof incurred after termination of this Agreement and that the Company shall not be responsible under this Agreement or the Cash Collateral Orders for any fees or expenses referenced in subclause (C) hereof incurred in connection with any litigation (or preparation thereof) against, or adverse to,

 

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the Company, the First Lien Agent, the holders of First Lien Claims, the Second Lien Notes Trustee and the holders of Second Lien Notes Claims;

 

(vi)                              provide draft copies of all “first day” motions or applications and other documents the Company intends to file with the Bankruptcy Court on the Petition Date to counsel to the First Lien Agent, counsel to the Consenting Second Lien Ad Hoc Committee and counsel to the Consenting Cross-Over Ad Hoc Committee at least three (3) calendar days prior to the date when the Company intends to file such documents and shall consult in good faith with such parties regarding the form and substance of any such proposed filing with the Bankruptcy Court. The Company will use good faith efforts to provide draft copies of all other material pleadings the Company intends to file with the Bankruptcy Court to counsel to each of the First Lien Agent, the Consenting Second Lien Ad Hoc Committee and the Consenting Cross-Over Ad Hoc Committee, within a reasonable time prior to filing, and in no event later than one (1) Business Day in advance of any filing thereof, such pleading to the extent reasonably practicable and shall consult in good faith with such counsel regarding the form and substance of any such proposed pleading;

 

(vii)                           maintain their good standing under the laws of the state in which they are incorporated or organized;

 

(viii)                        timely file with the Bankruptcy Court or any other applicable United States court a formal written objection to any motion filed with the Bankruptcy Court or any other United States court by any party seeking the entry of an order (A) directing the appointment of an examiner with expanded powers or a trustee in any of the Chapter 11 Cases, (B) converting any of the Chapter 11 Cases to cases under chapter 7 of the Bankruptcy Code, (C) dismissing any of the Chapter 11 Cases, (D) modifying or terminating the Company’s exclusive right to file and/or solicit acceptances of a plan of reorganization, or (E) granting any relief inconsistent with this Agreement and the Definitive Documents;

 

(ix)                              provide to the Consenting Parties and/or their respective professionals, upon reasonable advance notice to the Company, (A) reasonable access (without any material disruption to the conduct of the Company’s business) during normal business hours to the Company’s books, records, and facilities, (B) reasonable access to the respective management and advisors of the Company for the purposes of evaluating the Company’s finances and operations and participating in the planning process with respect to the Restructuring, (C) prompt access to any information provided to any existing or prospective financing sources (including lenders under any exit financing), and (D) timely and reasonable responses to all diligence requests;

 

(x)                                 use their commercially reasonable efforts to preserve intact in all material respects their current business organizations, keep available the services of their current officers and material employees (in each case, other than voluntary resignations, terminations for cause, or terminations consistent with applicable fiduciary duties) and preserve in all material respects their relationships with customers, sales representatives, suppliers, distributors, and others, in each case, having material business dealings with the Company (other than terminations for cause or consistent with applicable fiduciary duties);

 

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(xi)                              provide prompt written notice to the Consenting Parties between the date hereof and the Effective Date of (A) the occurrence, or failure to occur, of any event of which the Company has actual knowledge which occurrence or failure would be likely to cause (1) any covenant of the Company contained in this Agreement not to be satisfied in any material respect or (2) any condition precedent contained in the Plan or this Agreement not to timely occur or become impossible to satisfy, (B) receipt of any notice from any third party alleging that the consent of such party is or may be required in connection with the transactions contemplated by the Restructuring, (C) receipt of any notice from any governmental unit with jurisdiction in connection with this Agreement or the transactions contemplated by the Restructuring, (D) receipt of any notice of any proceeding commenced, or, to the actual knowledge of the Company, threatened against the Company, relating to or involving or otherwise affecting in any material respect the transactions contemplated by the Restructuring, and (E) any failure of the Company to comply, in any material respect, with or satisfy any covenant, condition or agreement to be complied with or satisfied by it hereunder;

 

(xii)                           promptly notify the other Parties in writing following the receipt, in writing, of notice of any material governmental, regulatory or third party complaints, litigations, investigations, or hearings (or communications indicating that the same may be contemplated or threatened); and

 

(xiii)                        provide a copy of any written offer or proposal (and notice of any oral offer or proposal) for an Alternative Transaction received to the advisors to the First Lien Agent, the Consenting Second Lien Ad Hoc Committee, and the Consenting Cross-Over Ad Hoc Committee within one (1) business day of the Company’s or their advisors’ receipt of such offer or proposal.

 

(b)                                 Negative Covenants. The Company agrees that, for the duration of the Plan Support Period, the Company shall not take any action inconsistent with, or omit to take any action required by, this Agreement, the Plan, or any of the other Definitive Documents. The Company further agrees that prior to and during the Plan Support Period, the Company shall not: (i) take any action that impairs or removes any interest or right the Consenting Parties have in and to any collateral held or owned by the Company without the consent of the First Lien Lenders or bankruptcy court order authorizing such action; (ii) make any transfers from and after April 28, 2016 and through the Plan Support Period to or for the account of insiders or affiliates in respect of antecedent debt without a bankruptcy court order; and (iii) other than voluntary departure or termination for cause, change any of its management team without immediate replacement with another individual possessing at least equal oil and gas exploration and production experience.

 

(c)                                  Automatic Stay. The Company acknowledges and agrees and shall not dispute that after the commencement of the Chapter 11 Cases, the giving of notice of termination by any Party pursuant to this Agreement shall not be a violation of the automatic stay of section 362 of the Bankruptcy Code (and the Company hereby waives, to the fullest extent permitted by law, the applicability of the automatic stay as it relates to any such notice being provided). Notwithstanding anything to the contrary herein, following the commencement of the Chapter 11 Cases and unless and until there is an unstayed order of the Bankruptcy Court providing that the giving of notice under and/or termination of this Agreement in accordance

 

13

 

with its terms is not prohibited by the automatic stay imposed by section 362 of the Bankruptcy Code, the occurrence of any of the termination events in Section 6(b), 6(d), or 6(e) shall result in an automatic termination of this Agreement, to the extent any of the Terminating Consenting Parties would otherwise have the ability to terminate this Agreement in accordance with Section 6(b), 6(d), or 6(e), five (5) calendar days following such occurrence unless waived in writing by all of the Terminating Consenting Parties.

 

6.                                      Termination of Agreement.

 

(a)                                      Automatic Termination. This Agreement shall terminate automatically, without any further action required by any Party, upon the occurrence of any of the following events: (i) entry of an order denying confirmation of the Plan, (ii) the occurrence of the Effective Date, (iii) an order confirming the Plan is reversed or vacated, or (iv) any court of competent jurisdiction has entered a final, non-appealable judgment or order declaring this Agreement to be unenforceable.

 

(b)                                      Consenting Party Termination Events. This Agreement may be terminated by (i) the Requisite First Lien Lenders, (ii) the Requisite Second Lien Noteholders, or (iii) solely upon the occurrence of any of the events enumerated in Sections 6(b)(vii), (ix) and (xv) (in each case solely with respect to any issues directly impacting the 2nd/3rd Lien Plan Settlement) and 6(b)(x), (xiii) and (xiv), the Requisite Cross-Over Noteholders, in each case by the delivery to the Company, and counsel to the Consenting Parties, other than the Consenting Parties seeking to terminate this Agreement pursuant to this Section 6(b) (such Consenting Parties seeking to terminate, the “Terminating Consenting Parties”)  of a written notice in accordance with Section 20 hereof, upon the occurrence of any of the following events:

 

(i)                                     as of 11:59 p.m. Eastern Time on the Outside Petition Date, as such date may be extended with the written consent of Requisite First Lien Lenders and Requisite Second Lien Noteholders, if the Chapter 11 Cases shall not have been filed by such time;

 

(ii)                                  the Company fails to file the Plan, the Disclosure Statement, and the Disclosure Statement Motion on or before the date that is fourteen (14) calendar days after the Petition Date, provided, however, that such date may be extended with the prior written consent of Requisite First Lien Lenders and Requisite Second Lien Noteholders;

 

(iii)                               the Bankruptcy Court fails to enter the Disclosure Statement Order within forty (40) calendar days after the Plan Filing Date, provided, however, that such date may be extended with the written consent of Requisite First Lien Lenders and Requisite Second Lien Noteholders;

 

(iv)                              the Bankruptcy Court fails to enter the Confirmation Order within seventy-five (75) calendar days after the Plan Filing Date, provided, however, that such date may be extended with the written consent of Requisite First Lien Lenders and Requisite Second Lien Noteholders, and provided, further, in the event such date is so extended beyond the ninetieth (90) calendar day after the Plan Filing Date, the Requisite Second Lien Noteholders shall have the right to terminate the 2nd/3rd Lien Plan Settlement (as defined in the Term Sheet), and in the

 

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event such right to terminate is exercised, the Plan (pursuant to its terms) will be automatically deemed modified to exclude (A) the 2nd/3rd Lien Plan Settlement, (B) the waiver of (1) the Diminution in Value Claim (as defined in the Term Sheet) and (2) the Noteholder Deficiency Claims (as defined in the Term Sheet) by the First Lien Lenders and the Second Lien Noteholders (as applicable) and (C) the Waivers (as defined in the Term Sheet), and in such event, (I) the Consenting Cross-Over Noteholders shall be relieved of all obligations under this Agreement and any releases or waivers granted as between the Consenting Second Lien Noteholders and Consenting Cross-Over Noteholders herein or in the Term Sheet shall be null and void, (II) the Consenting Cross-Over Noteholders shall have the right at any time following the exercise of the foregoing termination right, upon written notice to the Company, to revoke and change their votes in respect of the Plan, and (III) notwithstanding any otherwise applicable objection deadline, none of the Company, the Consenting First Lien Lenders, or the Consenting Second Lien Noteholders shall object, contest, or oppose a request by the Consenting Cross-Over Noteholders to adjourn the confirmation hearing by fourteen (14) days, and nothing herein shall prevent the Consenting Cross-Over Noteholders from requesting an adjournment of the confirmation hearing beyond fourteen (14) days or objecting to the Plan (in all cases subject to the Intercreditor Agreement);

 

(v)                                 the breach by any Party other than the Terminating Consenting Parties, of (A) any affirmative or negative covenant contained in this Agreement or (B) any other obligations of such breaching Party set forth in this Agreement, in each case, in any material respect (without giving effect to any “materiality” qualifiers set forth therein), and, in either respect, to the extent such breach would have a material adverse effect on the consummation of the Restructuring in accordance with the Term Sheet or the RBL Term Sheet and which breach remains uncured for a period of five (5) calendar days following such breaching Party’s receipt of notice pursuant to Section 20 hereof (as applicable);

 

(vi)                              any representation or warranty in this Agreement made by the Company shall have been untrue in any material respect when made or shall have become untrue in any material respect, or the Company violates any of the covenants herein, and such breach remains uncured for a period of ten (10) calendar days following the Company’s receipt of notice pursuant to Section 20 hereof (as applicable);

 

(vii)                           the Company files any motion, pleading, or related document with the Bankruptcy Court in a manner that is materially inconsistent with this Agreement, the Term Sheet, or the Plan, and such motion, pleading, or related document has not been withdrawn after three (3) business days of the Company receiving written notice in accordance with Section 20 that such motion, pleading, or related document is materially inconsistent with this Agreement or, the Term Sheet, the RBL Term Sheet or the Plan;

 

(viii)                        the Bankruptcy Court (A) does not enter the Interim Cash Collateral Order on or before the date that is five (5) calendar days after the Petition Date, or (B) does not enter the Final Cash Collateral Order on or before the date that is forty (40) calendar days after the Petition Date, provided, however, that such dates may be extended with the written consent of Requisite First Lien Lenders and Requisite Second Lien Noteholders;

 

15

 

(ix)                              the issuance by any governmental authority, including any regulatory authority or court of competent jurisdiction, of any ruling, judgment, or order enjoining the consummation of or rendering illegal the Plan or the Restructuring or any material portion thereof, and either (A) such ruling, judgment, or order has been issued at the request of or with the acquiescence of the Company, or (B) in all other circumstances, such ruling, judgment, or order has not been reversed or vacated within thirty (30) calendar days after such issuance;

 

(x)                                 the Bankruptcy Court (or other court of competent jurisdiction) enters an order (A) directing the appointment of an examiner with expanded powers or a trustee in any of the Chapter 11 Cases, (B) converting any of the Chapter 11 Cases to cases under chapter 7 of the Bankruptcy Code, (C) dismissing any of the Chapter 11 Cases, or (D) the effect of which would render the Plan incapable of consummation on the terms set forth in this Agreement or the Term Sheet;

 

(xi)                              the Company’s consensual use of cash collateral has been terminated in accordance with the terms of the Cash Collateral Orders;

 

(xii)                           other than pursuant to any relief sought by the Company that is not materially inconsistent with its obligations under this Agreement or the Plan, the Bankruptcy Court grants relief terminating, annulling, or modifying the automatic stay (as set forth in section 362 of the Bankruptcy Code) with respect to any assets of the Company having an aggregate fair market value in excess of $1 million without the prior written consent of the Requisite Creditors;

 

(xiii)                        the Company files or supports (or fails to timely object to) another party in filing (A) a motion or pleading challenging the amount, validity, or priority of any First Lien Claims, Second Lien Notes Claims, or Third Lien Notes Claims or (B) any plan of reorganization, liquidation, or sale of all or substantially all of the Company’s assets, other than the Restructuring set forth herein;

 

(xiv)                       the Company (A) withdraws the Plan, (B) publicly announces or otherwise informs any of the Consenting Parties of its intention not to support the Plan or the Restructuring, (C) files a motion with the Bankruptcy Court seeking the approval of an Alternative Transaction, or (D) agrees to pursue (including, for the avoidance of doubt, as may be evidenced by a term sheet, letter of intent, or similar document) or publicly announces its intent to pursue an Alternative Transaction;

 

(xv)                          if the Definitive Documents and any amendments, modifications, or supplements thereto do not comply with Section 2 or Section 10 of this Agreement, as applicable; provided that such Definitive Documents or amendments, modifications, or supplements thereto were not modified to be consistent with Section 2 or Section 10, as applicable, or withdrawn within five (5) business days following such breaching Party’s receipt of notice pursuant to Section 20 hereof;

 

(xvi)                       the Bankruptcy Court enters an order modifying or terminating the Company’s exclusive right to file and/or solicit acceptances of a plan of reorganization (including the Plan); or

 

16

 

(xvii) the Effective Date shall not have occurred on or before the date that is ninety (90) calendar days after the Plan Filing Date, provided, however, that such deadline may be extended with the written consent of Requisite First Lien Lenders and Requisite Second Lien Noteholders.

 

(c)                                  This Agreement may be terminated by the Company pursuant to this Section 6(c) by the delivery to counsel to the Consenting Parties of a written notice in accordance with Section 20 hereof, upon the occurrence of any of the following events (each, a “Company Termination Event”):

 

(i)                                     the breach by one or more of the (A) Consenting Second Lien Noteholders representing in excess of 50.01% of the aggregate principal amount of the Second Lien Notes Claims held by the Consenting Second Lien Noteholders, or (B) Consenting Cross-Over Noteholders representing in excess of 50.01% of the aggregate principal amount of the Third Lien Notes Claims held by the Consenting Cross-Over Noteholders, in each case with respect to any of the representations, warranties, or covenants of such Consenting Parties, as set forth in this Agreement, to the extent such breach would have a material adverse effect on the consummation of the Restructuring, and which breach remains uncured for a period of five (5) calendar days after the receipt by the applicable Consenting Party from the Company of written notice of such breach;

 

(ii)                                  the issuance by any governmental authority, including any regulatory authority or court of competent jurisdiction, of any ruling, judgment, or order enjoining the consummation of or rendering illegal the Plan or the Restructuring or any material portion thereof, and either (A) such ruling, judgment, or order has been issued at the request of or with the acquiescence of the Company, or (B) in all other circumstances, such ruling, judgment, or order has not been reversed or vacated within thirty (30) calendar days after such issuance; or

 

(iii)                               the board of directors, managers, or similar governing body, as applicable, of any Company entity determines that continued performance under this Agreement (including taking any action or refraining from taking any action) would be inconsistent with the exercise of its fiduciary duties under applicable law (as reasonably determined by the Company in good faith after consultation with legal counsel).

 

(d)                                 Mutual Termination. This Agreement may be terminated by mutual agreement of the Company and the Requisite Creditors upon the receipt of written notice delivered in accordance with Section 20 hereof.

 

(e)                                  Outside Date. Any individual Consenting Party shall have the right to terminate this Agreement, as to itself only, if the effective date of the Plan shall not have occurred by the date that is two hundred seventy (270) calendar days after the Petition Date. In the event a Consenting Party terminates pursuant to this Section 6(e), such termination shall be effective as to such Consenting Party only and shall not affect any of the rights or obligations of any other party to this Agreement.

 

(f)                                   Effect of Termination. Upon the termination of this Agreement in accordance with this Section 6, and except as provided in Section 14 hereof, this Agreement

 

17

 

shall forthwith become null and void and of no further force or effect as to all Parties and each Party shall, except as provided otherwise in this Agreement, be immediately released from its liabilities, obligations, commitments, undertakings, and agreements under or related to this Agreement and shall have all the rights and remedies that it would have had and shall be entitled to take all actions, whether with respect to the Restructuring or otherwise, that it would have been entitled to take had (notwithstanding the passage of any applicable deadlines) it not entered into this Agreement; provided, however, that in no event shall any such termination relieve a Party from liability for its breach or non-performance of its obligations hereunder prior to the date of such termination. Upon any such termination of this Agreement, each Consenting Party may, upon written notice to the Company and the other Parties, revoke its vote or any consents given by such Consenting Party prior to such termination, whereupon any such vote or consent shall automatically be deemed, for all purposes, to be null and void ab initio and shall not be considered or otherwise used in any manner by the Parties in connection with the Restructuring and this Agreement and such consents or ballots may be changed or resubmitted regardless of whether the applicable voting deadline has passed (without the need to seek a court order or consent from the Company allowing such change or resubmission).

 

7.                                      Definitive Documents; Good Faith Cooperation; Further Assurances.

 

Subject to the terms and conditions described herein, during the Plan Support Period, each Party, severally and not jointly, hereby covenants and agrees to reasonably cooperate with each other in good faith in connection with the negotiation, drafting, execution, and delivery of the Definitive Documents. Furthermore, subject to the terms and conditions hereof, each of the Parties shall take such action as may be reasonably necessary or reasonably requested by the other Parties to carry out the purposes and intent of this Agreement, including making and filing any required regulatory filings (provided, however, that no Consenting Party shall be required to incur any out of pocket cost or expense, or any liability in connection therewith).

 

8.                                      Representations and Warranties.

 

(a)                                 Each Party, severally and not jointly, represents and warrants to the other Parties that the following statements are true, correct, and complete as of the date hereof (or as of the date a Consenting Party becomes a party hereto):

 

(i)                                     such Party is validly existing and in good standing under the laws of its jurisdiction of incorporation or organization, and has all requisite corporate, partnership, limited liability company, or similar authority to enter into this Agreement and carry out the transactions contemplated hereby and perform its obligations contemplated hereunder; and the execution and delivery of this Agreement and the performance of such Party’s obligations hereunder have been duly authorized by all necessary corporate, limited liability company, partnership, or other similar action on its part;

 

(ii)                                  the execution, delivery, and performance by such Party of this Agreement does not and will not (A) violate any provision of law, rule, or regulation applicable to it, its charter, or its bylaws (or other similar governing documents), or (B) conflict with, result in a breach of or constitute (with due notice or lapse of time or both) a default under any material

 

18

 

contractual obligation to which it is a party (except to the extent such conduct is consented to by the counterparty thereto or the Requisite Creditors relevant thereto);

 

(iii)                          the execution, delivery, and performance by such Party of this Agreement does not and will not require any registration or filing with, consent or approval of, or notice to, or other action, with or by, any federal, state, or governmental authority or regulatory body, except such filings as may be necessary and/or required by the SEC; and

 

(iv)                         this Agreement is the legally valid and binding obligation of such Party, enforceable against it in accordance with its terms, except as enforcement may be limited by bankruptcy, insolvency, reorganization, moratorium, or other similar laws relating to or limiting creditors’ rights generally or by equitable principles relating to enforceability or a ruling of the Bankruptcy Court.

 

(b)                                 Each Consenting Party severally (and not jointly) represents and warrants to the Company that, as of the date hereof (or as of the date such Consenting Party becomes a party hereto), such Consenting Party (i) is the beneficial owner of the aggregate principal amount of First Lien Claims, Second Lien Notes Claims, Third Lien Notes Claims, and/or GUC Claims (as applicable) set forth below its name on the signature page hereof (or below its name on the signature page of a Transfer Agreement for any Consenting Party that becomes a party hereto after the date hereof), and/or (ii) has, with respect to the beneficial owners of such First Lien Claims, Second Lien Notes, Third Lien Notes, and/or GUC Claims (as applicable), (A) sole investment or voting discretion with respect to such First Lien Claims, Second Lien Notes, Third Lien Notes, and/or GUC Claims (as applicable), (B) full power and authority to vote on and consent to matters concerning such First Lien Claims, Second Lien Notes, Third Lien Notes, and/or GUC Claims (as applicable), or to exchange, assign, and transfer such First Lien Claims, Second Lien Notes, Third Lien Notes, and/or GUC Claims (as applicable), and (C) full power and authority to bind or act on the behalf of, such beneficial owners.

 

9.                                      Disclosure; Publicity.

 

(a)                            On or before the Petition Date, the Company shall disseminate a press release disclosing the existence of this Agreement and the terms hereof and of the Plan (including any schedules and exhibits thereto that are filed with the Bankruptcy Court on the Petition Date) with such redactions as may be reasonably requested by counsel to any Consenting Party to maintain the confidentiality of the items provided below in Section 9(b), except as otherwise required by law.

 

(b)                            The Company shall make commercially reasonably efforts to submit drafts to counsel to the Consenting Parties of any press releases, public documents, and any and all filings with the SEC that constitute disclosure of the existence or terms of this Agreement or any amendment to the terms of this Agreement at least one (1) business day prior to making any such disclosure, and shall afford them a reasonable opportunity under the circumstances to comment on such documents and disclosures and shall consider any such comments in good faith. Except as required by law or otherwise permitted under the terms of any other agreement between the Company on the one hand, and any Consenting Party, on the other hand, no Party or its advisors (including counsel to any Party) shall disclose to any person or entity (including, for the

 

19

 

avoidance of doubt, any other Consenting Party), other than advisors to the Company, the principal amount or percentage of any First Lien Claims, Second Lien Notes Claims, Third Lien Notes Claims, GUC Claims, or any other securities of the Company held by any Party, in each case, without such Party’s prior written consent; provided, however, that (i) if such disclosure is required by law, subpoena, or other legal process or regulation, the disclosing Party shall afford the relevant Party a reasonable opportunity to review and comment in advance of such disclosure and shall take all reasonable measures to limit such disclosure (the expense of which, if any, shall be borne by the relevant disclosing Party) and (ii) the foregoing shall not prohibit the disclosure of the aggregate percentage or aggregate principal amount of First Lien Claims, Second Lien Notes Claims, Third Lien Notes Claims, or GUC Claims held by all Consenting Parties. Notwithstanding the provisions in this Section 9, any Party may disclose, to the extent consented to in writing by a duly authorized officer or representative of the affected Consenting Party (including Section 11 hereof), such Consenting Party’s individual holdings.

 

10.                               Amendments and Waivers.

 

During the Plan Support Period, this Agreement, including any exhibits or schedules hereto, may not be waived, modified, amended, or supplemented except in a writing signed by the Company and the Requisite First Lien Lenders and Requisite Second Lien Noteholders; provided, however, that (i) any modification, amendment, or change to the definition of Requisite First Lien Lenders shall require the prior written consent of each Consenting First Lien Lender, (ii) any modification, amendment, or change to the definition of Requisite Second Lien Noteholders shall require the prior written consent of each Consenting Second Lien Noteholder that is a member of the Consenting Second Lien Ad Hoc Committee, (iii) any modification, amendment, or change to the definition of the Requisite Cross-Over Noteholders shall require the prior written consent of each Consenting Cross-Over Noteholder that is a member of the Consenting Cross-Over Ad Hoc Committee, (iv) any modification, amendment or change solely with respect to any provision directly and negatively impacting the Consenting Cross-Over Noteholders shall require the prior written consent of the Requisite Cross-Over Noteholders, and (v) any modification, amendment, or change to this Section 10 or the definition of Requisite Creditors shall require the prior written consent of each Requisite Creditor; provided  further, however, that any waiver, modification, amendment or supplement that disproportionately and adversely affects the economic recoveries or treatment of any Consenting Party under the Plan may not be made without the prior written consent of each such adversely affected Consenting Party.

 

11.                               Effectiveness.

 

This Agreement shall become effective and binding on the Parties on the Plan Support Effective Date, and not before such date; provided, however, that signature pages executed by Consenting Parties shall be delivered to (a) counsel to the First Lien Agent, in redacted form, (b) counsel to the Consenting Second Lien Ad Hoc Committee, as applicable, in redacted form, (c) counsel to the Consenting Cross-Over Ad Hoc Committee, as applicable, in redacted form, and (d) the Company and its counsel in an unredacted form (to be held on a confidential basis by such counsel in accordance with Section 9 hereof).

 

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Notwithstanding any language herein to the contrary, any Consenting First Lien Lender shall have executed solely in such capacity as a First Lien Lender and shall be committing solely with respect to the First Lien Claims held by such Lender, without regard to whether that institution, entity or any affiliate thereof may acquire or hold Second Lien Note Claims or Third Lien Note Claims.

 

12.         GOVERNING LAW; JURISDICTION; WAIVER OF JURY TRIAL.

 

(a)         This Agreement shall be construed and enforced in accordance with, and the rights of the Parties shall be governed by, the law of the State of New York, without giving effect to the conflicts of law principles thereof.

 

(b)         Each of the Parties irrevocably agrees that any legal action, suit, or proceeding arising out of or relating to this Agreement brought by any party or its successors or assigns shall be brought and determined in any federal or state court in the Borough of Manhattan, the City of New York, and each of the Parties hereby irrevocably submits to the exclusive jurisdiction of the aforesaid courts for itself and with respect to its property, generally and unconditionally, with regard to any such proceeding arising out of or relating to this Agreement or the Restructuring Transactions. Each of the Parties agrees not to commence any proceeding relating hereto or thereto except in the courts described above in New York or in the Bankruptcy Court, other than proceedings in any court of competent jurisdiction to enforce any judgment, decree, or award rendered by any such court in New York as described herein. Each of the Parties further agrees that notice as provided herein shall constitute sufficient service of process and the Parties further waive any argument that such service is insufficient. Subject to the foregoing, each of the Parties hereby irrevocably and unconditionally waives, and agrees not to assert, by way of motion or as a defense, counterclaim, or otherwise, in any proceeding arising out of or relating to this Agreement or the Restructuring Transactions, (i) any claim that it is not personally subject to the jurisdiction of the courts in New York as described herein for any reason, (ii) that it or its property is exempt or immune from jurisdiction of any such court or from any legal process commenced in such courts (whether through service of notice, attachment prior to judgment, attachment in aid of execution of judgment, execution of judgment, or otherwise) and (iii) that (A) the proceeding in any such court is brought in an inconvenient forum, (B) the venue of such proceeding is improper, or (C) this Agreement, or the subject matter hereof, may not be enforced in or by such courts. Notwithstanding the foregoing, during the pendency of the Chapter 11 Cases, all proceedings contemplated by this Section 12(b) shall be brought in the Bankruptcy Court.

 

(c)          EACH PARTY HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY (WHETHER BASED ON CONTRACT, TORT, OR ANY OTHER THEORY). EACH PARTY (I) CERTIFIES THAT NO REPRESENTATIVE, AGENT, OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (II) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY,

 

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AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.

 

13.         Specific Performance/Remedies.

 

It is understood and agreed by the Parties that money damages would not be a sufficient remedy for any breach of this Agreement by any Party and each non-breaching Party shall be entitled to specific performance and injunctive or other equitable relief (including attorneys’ fees and costs) as a remedy of any such breach, without the necessity of proving the inadequacy of money damages as a remedy, including an order of the Bankruptcy Court requiring any Party to comply promptly with any of its obligations hereunder.

 

14.         Survival.

 

Notwithstanding the termination of this Agreement pursuant to Section 6 hereof, (a) the Company’s obligations in Section 24 of this Agreement accrued up to and including termination of this Agreement, and (b) the agreements and obligations of the Parties set forth in the following Sections: 4, 6(b)(iv), 6(f), 9, 11, 12, 13, 15, 16, 17, 18, 19, 20, 21, 22, and 23 hereof (and any defined terms used in any such Sections) shall survive such termination and shall continue in full force and effect for the benefit of the Consenting Parties in accordance with the terms hereof; provided, however, that any liability of a Party for failure to comply with the terms of this Agreement shall survive such termination.

 

15.         Headings.

 

The headings of the sections, paragraphs, and subsections of this Agreement are inserted for convenience only and shall not affect the interpretation hereof or, for any purpose, be deemed a part of this Agreement.

 

16.         Successors and Assigns; Severability; Several Obligations.

 

This Agreement is intended to bind and inure to the benefit of the Parties and their respective successors, permitted assigns, heirs, executors, administrators, and representatives; provided, however, that nothing contained in this Section 16 shall be deemed to permit Transfers of interests in the First Lien Claims, Second Lien Notes Claims, Third Lien Notes Claims, and/or GUC Claims other than in accordance with the express terms of this Agreement. If any provision of this Agreement, or the application of any such provision to any person or entity or circumstance, shall be held invalid or unenforceable in whole or in part, such invalidity or unenforceability shall attach only to such provision or part thereof and the remaining part of such provision hereof and this Agreement shall continue in full force and effect so long as the economic or legal substance of the transactions contemplated hereby is not affected in any manner materially adverse to any Party. Upon any such determination of invalidity, the Parties shall negotiate in good faith to modify this Agreement so as to effect the original intent of the Parties as closely as possible in a reasonably acceptable manner in order that the transactions contemplated hereby are consummated as originally contemplated to the greatest extent possible. The agreements, representations, and obligations of the Parties are, in all respects, several and neither joint nor joint and several.

 

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17.          No Third-Party Beneficiaries.

 

Unless expressly stated otherwise herein, this Agreement shall be solely for the benefit of the Parties and no other person or entity shall be a third-party beneficiary hereof.

 

18.          Prior Negotiations; Entire Agreement.

 

This Agreement, including the exhibits and schedules hereto, constitutes the entire agreement of the Parties, and supersedes all other prior negotiations (whether written, verbal or otherwise), with respect to the subject matter hereof and thereof, except that the Parties acknowledge that any confidentiality agreement and/or non-disclosure agreement (if any) heretofore executed between the Company and any Consenting Party shall continue in full force and effect in accordance with its terms.

 

19.          Counterparts.

 

This Agreement may be executed in several counterparts, each of which shall be deemed to be an original, and all of which together shall be deemed to be one and the same agreement. Execution copies of this Agreement may be delivered by facsimile, electronic mail, or otherwise, which shall be deemed to be an original for the purposes of this paragraph.

 

20.          Notices.

 

All notices hereunder shall be deemed given if in writing and delivered, if contemporaneously sent by electronic mail, facsimile, courier, or by registered or certified mail (return receipt requested) to the following addresses and facsimile numbers:

 

(1)           If to the Company, to:

 

Midstates Petroleum Company

321 South Boston Avenue, Suite 1000

Tulsa, Oklahoma 74103

Attention: Scott C. Weatherholt

(scoff.weatherholt@midstatespetroleum.com)

Nelson M. Haight

(nelson.haight@midstatespetroleum.com)

 

23

 

With a copy to:

 

Kirkland & Ellis LLP

601 Lexington Avenue

New York, New York 10022

Attention: Edward O. Sassower, P.C.

(esassower@kirkland.com)

Joshua A. Sussberg, P.C.

(joshua.sussberg@kirkland.com)

 

- and -

 

Kirkland & Ellis LLP

300 North LaSalle

Chicago, Illinois 60654

Attention: William A. Guerrieri

(will.guerrieri@kirkland.com)

Jason B. Gott

(jason.gott@kirkland.com)

 

(2)           If to the First Lien Agent, to:

 

Sun Trust Bank, N.A.

401 Commerce Street, Suite 2100

Nashville, Tennessee 37219

Attention: Jan Naifeh

(jan.naifeh@suntrust.com)

T. Michael Logan

(mike. logan@suntrust.com)

 

With a copy to:

 

Mayer Brown LLP

700 Louisiana Street, #3400

Houston, Texas 77002

Attention: Charles S. Kelley

ckelley@mayerbrown.com

Rick Hyman

fhyman@mayerbrown.com

 

(3)           If to a Consenting Noteholder that is a member of the Consenting Second Lien Ad Hoc Committee, to the addresses or facsimile numbers set forth below following such Consenting Noteholder’s signature, as the case may be, with a copy to:

 

24

 

Davis Polk & Wardwell LLP

450 Lexington Avenue

New York, New York 10017

Attention: Brian Resnick

(brian.resnick@davispolk.com)

Natasha Tsiouris

(natasha.tsiouris@davispolk.com)

 

(4)           If to a Consenting Noteholder that is a member of the Consenting Cross-Over Ad Hoc Committee, to the addresses or facsimile numbers set forth below following such Consenting Noteholder’s signature, as the case may be, with a copy to:

 

Milbank, Tweed, Hadley & McCloy LLP

28 Liberty Street

New York, New York 10005

Attention:            Dennis Dunne

(ddunne@milbank.com) 
 Tyson Lomazow

(tlomazow@milbank.com)

 

(5)           If to a Consenting Noteholder that is not a member of the Consenting Second Lien Ad Hoc Committee or of the Consenting Cross-Over Ad Hoc Committee, to the addresses or facsimile numbers set forth below or on a Transfer Agreement following such Consenting Noteholder’s signature, as the case may be.

 

Any notice given by electronic mail, facsimile, delivery, mail, or courier shall be effective when received.

 

21.          Reservation of Rights; No Admission.

 

(a)           Nothing contained herein shall (i) limit (A) the ability of any Party to consult with other parties or entities, or (B) the rights of any Party under any applicable bankruptcy, insolvency, foreclosure, or similar proceeding, including, without limitation, the right to appear as a party in interest in any matter to be adjudicated in order to be heard concerning any matter arising in the Chapter 11 Cases, in each case, so long as such consultation or appearance is consistent with such Party’s obligations hereunder, or under the terms of the Plan; (ii) limit the ability of any Consenting Party to sell or enter into any transactions in connection with the First Lien Claims, Second Lien Notes Claims, Third Lien Notes Claims, GUC Claims, or any other interests in the Company, subject to the terms of Section 3(b) hereof; (iii) limit the rights of any Consenting Party under the First Lien Credit Agreement, the Second Lien Indenture, the Third Lien Indenture, the Unsecured Notes Indentures, or any agreements executed in connection with the foregoing; or (iv) constitute a waiver or amendment of any provision of the First Lien Credit Agreement, the Second Lien Indenture, the Third Lien Indenture, the Unsecured Notes Indentures, or any agreements executed in connection with the foregoing.

 

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(b)           Except as expressly provided in this Agreement, nothing herein is intended to, or does, in any manner waive, limit, impair, or restrict the ability of each of the Parties to protect and preserve its rights, remedies, and interests, including, without limitation, its claims against any of the other Parties (or their respective affiliates or subsidiaries) or its full participation in the Chapter 11 Cases. This Agreement and the Plan are part of a proposed settlement of matters that could otherwise be the subject of litigation among the Parties. Pursuant to Rule 408 of the Federal Rule of Evidence, any applicable state rules of evidence and any other applicable law, foreign or domestic, this Agreement and all negotiations relating thereto shall not be admissible into evidence in any proceeding other than a proceeding to enforce its terms. This Agreement shall in no event be construed as or be deemed to be evidence of an admission or concession on the part of any Party of any claim or fault or liability or damages whatsoever. Each of the Parties denies any and all wrongdoing or liability of any kind and does not concede any infirmity in the claims or defenses which it has asserted or could assert.

 

(c)           Notwithstanding anything herein to the contrary, nothing in this Agreement and neither a vote to accept the Plan by any Consenting Party nor the acceptance of the Plan by any Consenting Party shall (a) be construed to prohibit any Consenting Party from contesting whether any matter, fact, or thing is a breach of, or is inconsistent with, this Agreement or the Definitive Documents, or exercising rights or remedies specifically reserved herein, or (b) impair or waive the rights of any Consenting Party to assert or raise any objection permitted under this Agreement in connection with any hearing on confirmation of the Plan or in the Bankruptcy Court.

 

22.          Relationship Among Consenting Parties.

 

(a)           It is understood and agreed that no Consenting Party has any duty of trust or confidence in any kind or form with any other Consenting Party, and, except as expressly provided in this Agreement, there are no commitments among or between them. In this regard, it is understood and agreed that any Consenting Party may trade in the First Lien Claims, Second Lien Notes Claims, Third Lien Notes Claims, and/or GUC Claims, or other equity securities of the Company without the consent of the Company or any other Consenting Party, subject to applicable securities laws, the terms of this Agreement, and any confidentiality agreement and/or non-disclosure agreement entered into with the Company; provided, however, that no Consenting Party shall have any responsibility for any such trading to any other person or entity by virtue of this Agreement. No prior history, pattern, or practice of sharing confidences among or between the Consenting Parties shall in any way affect or negate this understanding and agreement.

 

23.          No Solicitation; Representation by Counsel; Adequate Information.

 

(a)           This Agreement is not and shall not be deemed to be a solicitation for votes in favor of the Plan in the Chapter 11 Cases. The acceptances of the Consenting Parties with respect to the Plan will not be solicited until such Consenting Party has received the Disclosure Statement and related ballots and solicitation materials, each as approved by the Bankruptcy Court.

 

26

 

(b)           Each Party acknowledges that it has had an opportunity to receive information from the Company and that it has been represented by counsel in connection with this Agreement and the transactions contemplated hereby. Accordingly, any rule of law or any legal decision that would provide any Party with a defense to the enforcement of the terms of this Agreement against such Party based upon lack of legal counsel shall have no application and is expressly waived.

 

(c)           Although none of the Parties intends that this Agreement should constitute, and they each believe it does not constitute, a solicitation or acceptance of a chapter 11 plan of reorganization or an offering of securities, each Consenting Party acknowledges, agrees, and represents to the other Parties that it (i) is an “accredited investor” as such term is defined in Rule 501(a) of the Securities Act of 1933 (the “Securities Act”), (ii) understands that any securities to be acquired by it pursuant to the Restructuring Transactions have not been registered under the Securities Act and that such securities are, to the extent not acquired pursuant to section 1145 of the Bankruptcy Code, being offered and sold pursuant to an exemption from registration contained in the Securities Act, based in part upon such Consenting Party’s representations contained in this Agreement, and cannot be sold unless subsequently registered under the Securities Act or an exemption from registration is available, and (iii) has such knowledge and experience in financial and business matters that such Consenting Party is capable of evaluating the merits and risks of the securities to be acquired by it pursuant to the Restructuring Transactions and understands and is able to bear any economic risks with such investment.

 

24.          Fees and Expenses

 

(a)           Subject to Section 14 of this Agreement, during the Plan Support Period, the Company shall pay all pre- and postpetition reasonable and documented fees and expenses of (A) the First Lien Agent and its advisors, including, without limitation, the fees and expenses of (1) Mayer Brown LLP, as counsel to the First Lien Agent, (2) local counsel to the First Lien Agent, and (3) FTI Consulting, Inc., as financial advisor to the First Lien Agent; (B) the Consenting Second Lien Ad Hoc Committee and its advisors, including, without limitation, the fees and expenses of (1) Davis Polk & Wardwell LLP, as counsel to the Consenting Second Lien Ad Hoc Committee, (2) local counsel to the Consenting Second Lien Ad Hoc Committee, and (3) Houlihan Lokey Capital, Inc., as financial advisor to the Consenting Second Lien Ad Hoc Committee; and (C) the Consenting Cross-Over Ad Hoc Committee, and their advisors, including, without limitation, the fees and expenses of (1) Milbank, Tweed, Hadley & McCloy LLP, as counsel to the Consenting Cross-Over Ad Hoc Committee, (2) local counsel to the Consenting Cross-Over Ad Hoc Committee, and (3) Centerview Partners LLC, as financial advisors to the Consenting Cross-Over Ad Hoc Committee; provided, however, that the Company shall not be responsible for any fees or expenses referenced in subclause (C) hereof incurred in connection with any litigation (or preparation thereof) against, or adverse to, the Company, the First Lien Agent, the holders of First Lien Claims, the Second Lien Notes Trustee and the holders of Second Lien Notes Claims.

 

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IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be executed and delivered by their respective duly authorized officers, solely in their respective capacity as officers of the undersigned and not in any other capacity, as of the date first set forth above.

 

28

 

	
Company Signature   Page to the Plan Support Agreement
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
MIDSTATES PETROLEUM COMPANY, INC. 
    	
 
    
	
MIDSTATES PETROLEUM COMPANY LLC
    	
 
    
	
 
    	
 
    
	
By: 
    	
/s/ Nelson M. Haight
    	
 
    
	
Name: Nelson M. Haight
    	
 
    
	
Title: Executive Vice President & Chief Financial Officer
    	
 
    
				

 

[Signature Page to Plan Support Agreement]

 

 

[Creditor Signature Pages Redacted]

 

 

EXHIBIT A

 

Term Sheet

 

 

MIDSTATES PETROLEUM COMPANY, INC. 

RESTRUCTURING TERM SHEET

 

This non-binding indicative term sheet (the “Restructuring Term Sheet”) sets forth the principal terms of a financial restructuring (the “Restructuring”) of the existing debt and other obligations of the Company (as defined herein). The Restructuring will be consummated through cases under chapter 11 (the “Chapter 11 Case(s)”) of title 11 of the United States Code (the “Bankruptcy Code”) in the United States Bankruptcy Court for the Southern District of Texas (the “Bankruptcy Court”), in accordance with the terms of a plan support agreement (the “PSA”) to be executed by the Company, the Administrative Agent, the 2012 Credit Facility Lenders, the members of the Second Lien Group and the members of the Cross-Over Group (each as defined below, and together, the “Parties”).

 

THIS RESTRUCTURING TERM SHEET DOES NOT CONSTITUTE (NOR SHALL IT BE CONSTRUED AS) AN OFFER WITH RESPECT TO ANY SECURITIES OR A SOLICITATION OF ACCEPTANCES OR REJECTIONS AS TO ANY PLAN, IT BEING UNDERSTOOD THAT SUCH A SOLICITATION, IF ANY, ONLY WILL BE MADE IN COMPLIANCE WITH APPLICABLE PROVISIONS OF SECURITIES, BANKRUPTCY AND/OR OTHER APPLICABLE LAWS.

 

THE TRANSACTIONS DESCRIBED HEREIN WILL BE SUBJECT TO THE NEGOTIATION AND COMPLETION OF DEFINITIVE DOCUMENTS INCORPORATING THE TERMS SET FORTH HEREIN AND THE CLOSING OF ANY TRANSACTION SHALL BE SUBJECT TO THE TERMS AND CONDITIONS SET FORTH IN SUCH AGREED DEFINITIVE DOCUMENTS.

 

The Parties

 

	
Company
    	
 
    	
Midstates Petroleum Company, Inc. and Midstates   Petroleum Company LLC shall be collectively referred to as “Midstates”   or, the “Company,” and, as reorganized pursuant to the Restructuring,   “Reorganized Midstates.”
    
	
 
    	
 
    	
 
    
	
2012 Credit Facility Lenders
    	
 
    	
The lenders (collectively, the “2012 Credit   Facility Lenders”) under that certain Second Amended and Restated Credit   Agreement, dated as of June 8, 2012, by and among Midstates Petroleum   Company, Inc., as Parent, Midstates Petroleum Company LLC, as borrower,   the banks and other financial institutions named therein as lenders, SunTrust   Bank, N.A. as administrative agent, swing line lender, issuing lender, and   lender (the “Administrative Agent”), and the other mandated lead   arranger, bookrunner parties, syndication agent, and co-documentation agents   thereto, by which the lenders made available to Midstates a reserve based   senior secured revolving credit facility (as amended, restated, modified or   supplemented from time to time prior to the date hereof, the “2012 Credit   Facility”). As of the date hereof, approximately $249.2 million of the   principal amount remains outstanding under the 2012 Credit Facility, plus   accrued and unpaid interest and outstanding letters of credit in the   approximate amount of $2.8 million.
    

 

 

	
Second Lien Noteholders
    	
 
    	
The holders (collectively, the “Second Lien   Noteholders”) of the 10.0% Second Lien Senior Secured Notes Due 2020   issued pursuant to that certain Indenture dated as of May 21, 2015,   among Midstates Petroleum Company, Inc. and Midstates Petroleum Company   LLC, as issuers, and Wilmington Trust, N.A. (in such capacity, the “Second   Lien Trustee”), as Trustee and Collateral Agent (as may be amended and   restated from time to time, the “Second Lien Notes”). As of the date   hereof, approximately $625.0 million of the principal amount remains   outstanding under the Second Lien Notes, plus accrued and unpaid interest.
    
	
 
    	
 
    	
 
    
	
Third Lien Noteholders
    	
 
    	
The holders (collectively, the “Third Lien   Noteholders”) of the 12.0% Third Lien Senior Secured Notes Due 2020   issued pursuant to that certain Indenture dated as of May 21, 2015,   among Midstates Petroleum Company, Inc. and Midstates Petroleum Company   LLC, as issuers, and Wilmington Trust, N.A. (in such capacity, the “Third   Lien Trustee”), as Trustee and Collateral Agent (as may be amended and   restated from time to time, the “Third Lien Notes”). As of the date   hereof, approximately $529.7 million of the principal amount remains   outstanding under the Third Lien Notes, plus accrued and unpaid interest.
    
	
 
    	
 
    	
 
    
	
10.75% Unsecured Noteholders
    	
 
    	
The holders (collectively, the “10.75% Unsecured   Noteholders”) of the 10.75% Senior Notes Due 2020 issued pursuant to that   certain Indenture dated as of October 1, 2012, among Midstates Petroleum   Company, Inc. and Midstates Petroleum Company LLC, as issuers, and Wells   Fargo Bank , N.A., as Trustee (as may be amended and restated from time to   time, the “10.75% Unsecured Notes”). As of the date hereof,   approximately $293.6 million of the principal amount remains outstanding   under the 10.75% Unsecured Notes, plus accrued and unpaid interest.
    
	
 
    	
 
    	
 
    
	
9.25% Unsecured Noteholders
    	
 
    	
The holders (collectively, the “9.25% Unsecured   Noteholders,” and together with the 10.75% Unsecured Noteholders, the “Unsecured   Noteholders”) of the 9.25% Senior Notes Due 2021 issued pursuant to that   certain Indenture dated as of May 31, 2013, among Midstates Petroleum   Company, Inc. and Midstates Petroleum Company LLC, as issuers, and Wells   Fargo Bank, N.A., as Trustee (as may be amended and restated from time to   time, the “9.25% Unsecured Notes,” and together with the 10.75%   Unsecured Notes, the “Unsecured Notes”). As of the date hereof,   approximately $347.7 million of the principal amount remains outstanding   under the 9.25% Unsecured Notes, plus accrued and unpaid interest.
    
	
 
    	
 
    	
 
    
	
Lien Trade Creditors
    	
 
    	
The holders (collectively, the “Lien Trade   Creditors”) of claims against the Company arising from the provision to   the Company of goods or services, which claims may be secured by valid and   enforceable liens or security interests, whether pursuant to an agreement   with the
    

 

2

 

	
 
    	
 
    	
Company or applicable law (the “Lien Trade Claims”).
    
	
 
    	
 
    	
 
    
	
General Unsecured Claims
    	
 
    	
The holders (collectively, the “General Unsecured   Creditors”), other than the Unsecured Noteholders, of unsecured claims   against the Company, including, without limitation, claims arising from the   rejection of any executory contract or unexpired lease in connection with the   Chapter 11 Cases.
    
	
 
    	
 
    	
 
    
	
Ad Hoc Noteholder Groups
    	
 
    	
The ad hoc group of Second Lien Noteholders (the “Second   Lien Group”) and the ad hoc group of certain holders of both Second Lien   Notes and Third Lien Notes (the “Cross-Over Group”).
    
	
 
    	
 
    	
 
    
	
The Settlement
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Intercreditor Settlement
    	
 
    	
In accordance with and subject to the terms and   conditions of the PSA, the PSA and the chapter 11 plan described herein (the   “Plan”) shall be proposed and supported by the Company in its Chapter   11 Cases and shall incorporate and implement the terms of the intercreditor   settlement (the “Settlement”) among the Company, the Administrative   Agent, the 2012 Credit Facility Lenders, the members of the Second Lien   Group, and the members of the Cross-Over Group as described below:

 

·                  agreement   among the Parties on a valuation allocation with respect to the Company’s   assets that are encumbered by valid, perfected and enforceable liens (the “Prepetition   Collateral”) and any of the Company’s assets that are unencumbered as of   the Petition Date (as defined below) (the “Unencumbered Assets”), such   that the New Midstates Equity (as defined below) will be allocated   ninety-eight and eight-tenths percent (98.8%) on account of Prepetition   Collateral and one and two-tenths percent (1.2%) on account of Unencumbered   Assets, which valuation allocation reflects the Debtors good faith   determination of their encumbered and unencumbered assets as of the Petition   Date; provided that the Administrative   Agent, on behalf of the 2012 Credit Facility Lenders, and the Second Lien   Trustee, on behalf of the Second Lien Noteholders, shall be granted a   provisional claim and lien on the Unencumbered Assets as part of their   respective adequate protection packages under the cash collateral order to be   entered by the Court at the outset of the Chapter 11 Cases, which adequate   protection claim and lien shall be waived only if the Settlement is   consummated.

 

·                  agreement by   the Administrative Agent, the 2012 Credit Facility Lenders, the Second Lien   Trustee and the Second Lien Lenders to waive any adequate protection claim,   under section 507(b) of the Bankruptcy Code or otherwise, as it relates   to any
    

 

3

 

	
 
    	
 
    	
diminution in value   with respect to the Prepetition Collateral, solely to the extent that such   adequate protection claim would otherwise be satisfied through a claim   against and lien on the Unencumbered Assets (the “Diminution in Value   Claim”);  provided, however, that   in the event of any challenge to the Settlement and/or the Plan by the   statutory committee of unsecured creditors appointed in the Company’s Chapter   11 Cases (the “Committee”), any Unsecured Noteholder or any General   Unsecured Creditor (and together with the Committee and the Unsecured   Noteholders, the “General Unsecured Parties”), the Diminution in Value   Claim will not be waived, the contingent adequate protection claim and lien   will attach to the Unencumbered Assets, and will include, without limitation,   all estate fees and costs associated with any General Unsecured Party’s   challenge to the Settlement or the Plan (i.e., a dollar-for-dollar reduction   will occur in the value of the recovery for the General Unsecured Creditors   and the Unsecured Noteholders for the fees and costs incurred or reimbursed   by the Debtors’ estates in connection with defending or prosecuting any such   challenge);

 

·                  agreement   by the Second Lien Noteholders and the Third Lien Noteholders to waive any   deficiency claims otherwise assertable as General Unsecured Claims (the “Noteholder   Deficiency Claims”) or giving rise to the right to share pro rata in any distribution available to holders of   General Unsecured Claims, including the Noteholders; provided,   however, that in the event of any challenge to the Settlement   and/or the Plan by any General Unsecured Party, the Noteholder Deficiency   Claims shall share pro rata in any recovery available to the class of General   Unsecured Creditors;

 

·                  agreement   by: (i) the Third Lien Noteholders to waive any and all objections or   challenges to, or arguments opposing confirmation of, the Plan, and any and   all claims, causes of action or other challenges against the Second Lien   Noteholders and the Second Lien Trustee (the “Second Lien Secured Parties”)   regardless of whether the Settlement is approved by the Bankruptcy Court but   only to the extent the PSA remains in full force and effect, in full and   final resolution of all disputes and claims between the Second Lien Secured   Parties and the Third Lien Noteholders and the Third Lien Trustee (the “Third   Lien Secured Parties”), including, without limitation, valuation issues   and any rights of the Third Lien Noteholders as General Unsecured Creditors   (the “Third Lien Waiver”), (ii) the Second Lien Noteholders to   waive any and all objections or challenges to, or arguments opposing   confirmation of, the Plan, and any and all claims, causes of action or other   challenges against the Third Lien Secured Parties regardless of whether the   Settlement is approved by the Bankruptcy Court but only to the 
    

 

4

 

	
 
    	
 
    	
extent the PSA remains   in full force and effect, in full and final resolution of all disputes and   claims between the Second Lien Secured Parties and the Third Lien Secured   Parties, including, without limitation, valuation issues and any rights of   the Second Lien Noteholders as General Unsecured Creditors (the “Second   Lien Waiver” and, together with the Third Lien Waiver, the “Waivers”),   and (iii) the Second Lien Noteholders that the Third Lien Noteholders   shall receive through the Plan their pro rata share of two and one-half   percent (2.5%) of the equity interests in Reorganized Midstates (the “New   Midstates Equity”) and 3.5-year, out of the money, standard warrants for   fifteen percent (15%) of the New Midstates Equity struck at a strike price of   $600 million (the “Third Lien Intercreditor Settlement” and, together   with the Waivers, the “2nd/3rd Lien Plan Settlement”), provided that   the PSA remains in full force and effect. The Waivers are granted by the   Second Lien Noteholders and the Third Lien Noteholders in consideration of   the Second Lien Noteholders and Third Lien Noteholders’ willingness to enter   into the Third Lien Intercreditor Settlement.

 

The Debtors shall use   their commercially reasonable efforts to obtain language in the order   approving the Disclosure Statement providing that the Waivers shall be   binding on the Second Lien Secured Parties and the Third Lien Secured Parties   to the extent the PSA remains in full force and effect.

 

The Plan filed on or   about the Petition Date will be consistent in all material respects with the   terms of the Settlement.

 

If the Settlement is   not approved in connection with confirmation of the Plan, the Plan (pursuant   to its terms) will be automatically deemed modified to exclude: (i) the   Third Lien Intercreditor Settlement and (ii) the waiver of (a) the   Diminution in Value Claim and (b) the Noteholder Deficiency Claims by   the 2012 Credit Facility Lenders, the Second Lien Noteholders, and the Third   Lien Noteholders (as applicable).

 

To the extent the   Settlement is not approved in connection with confirmation of the Plan, the   Diminution in Value Claim, including all fees and costs associated with   defending any challenge to the Settlement or to the Plan, will be determined   in connection with confirmation of the Plan and the litigation schedule to be   set and approved in connection with approval of the disclosure statement   related to the Plan.

 

For the avoidance of doubt, the 2nd/3rd Lien Plan Settlement will bind the Second   Lien Noteholders and the Third Lien Noteholders (including, for the avoidance   of doubt, the Second Lien Group and the Cross-Over Group) in the event the   Plan is immaterially modified,
    

 

5

 

	
 
    	
 
    	
altered, or revised, or any or all of the Settlement   is approved as part of the Plan.
    
	
 
    	
 
    	
 
    
	
The Restructuring
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Definitions
    	
 
    	
“Excess Cash” means cash in an amount equal   to any cash remaining on any of the Debtors’ balance sheets as of the Plan   Effective Date, less (a) the amount of cash to be paid to holders of the   2012 Facility Claims (as defined below) on the Plan Effective Date, less (b) all   payments of cash and reserves of cash required under the Plan (other than   distributions of cash on account of Second Lien Note Claims (as defined   below), including, but not limited to, payments and reserves on account of   administrative claims, priority claims, tax claims, and transaction and   professional fees, less (c) $110 million (the minimum amount of cash   needed for the Debtors’ balance sheets as agreed to by the Debtors, the 2012   Credit Facility Lenders and the Second Lien Group); provided that   the amount of Excess Cash shall be no greater than $60 million.
    
	
 
    	
 
    	
 
    
	
Treatment of Claims/Equity Interests
    	
 
    	
The Plan will provide that each holder of an allowed   claim will receive the following on or as soon as practicable after the   effective date of the Plan (the “Plan Effective Date”), unless   different treatment is agreed to by the holder of such allowed claim and the   Company:

 

·                  Administrative, Priority, and Priority Tax Claims: Allowed   administrative, priority, and tax claims will be satisfied in full, in cash,   or otherwise receive treatment consistent with the provisions of section   1129(a)(9) of the Bankruptcy Code.

 

·                  2012 Credit Facility Claims: On the Plan Effective Date,   the holders of allowed claims under the 2012 Facility shall have an allowed   claim in the approximate principal amount of $252,000,000, plus accrued   interest and fees (the “2012 Facility Claims”). Holders of 2012   Facility Claims will receive their pro rata share of (i) approximately   $82 million in cash and (ii) the New Credit Facility (in each case, on   the terms and conditions as set forth in the RBL Term Sheet attached as   Exhibit B to the PSA).

 

·                  Second Lien Notes Claims: On the Plan Effective Date, the   holders of allowed claims under the Second Lien Notes shall have an allowed   claim in the principal amount of $625,000,000, plus accrued interest and fees   (the “Second Lien Notes Claims”). Holders of Second Lien Notes Claims   will receive their pro rata share of (a) ninety-six and three-tenths   percent (96.3%) of the New Midstates Equity and (b) the Excess Cash; provided, however, if the Settlement is not approved and   consummated as part of the Plan, holders of Second Lien Note Claims will   instead receive their pro rata share of (x) ninety-eight and   eight-tenths percent (98.8%) of the New Midstates Equity, (y) the Excess   Cash, and (z) their pro
    

 

6

 

	
 
    	
 
    	
rata share of the   Unencumbered Assets Equity Distribution (as defined below) on account of the   Noteholder Deficiency Claims held by such holders of Second Lien Notes   Claims.

 

·                  Third Lien Notes Claims: On the Plan Effective Date, the   holders of allowed claims under the Third Lien Notes shall have an allowed   claim in the principal amount of $529,653,388, plus accrued interest and fees   (the “Third Lien Notes Claims”). Holders of Third Lien Notes Claims   will receive their pro rata share of the Third Lien Intercreditor Settlement   if the Settlement is consummated as part of the Plan in accordance with the   terms of the PSA. For the avoidance of doubt, if the Settlement is not   approved and consummated as part of the Plan, the holders of the Third Lien   Notes Claims shall receive only their pro rata share of the Unencumbered   Assets Equity Distribution on account of the Noteholder Deficiency Claims   held by the holders of Third Lien Notes Claims (and shall not receive the   Third Lien Intercreditor Settlement).

 

·                  10.75% Unsecured Notes Claims and 9.25% Unsecured Notes Claims: On   the Plan Effective Date, the holders of allowed claims under the 10.75%   Unsecured Notes shall have an allowed claim in the principal amount of   $293,626,000, plus accrued interest and fees (the “10.75% Unsecured Notes   Claims”) and the holders of allowed claims under the 9.25% Unsecured   Notes shall have an allowed claim in the principal amount of $347,651,000,   plus accrued interest and fees (the “9.25% Unsecured Notes Claims,”and together with the 10.75% Unsecured Notes Claims, the “Unsecured   Notes Claims”)). Holders of Unsecured Notes Claims will receive their pro   rata share of one and two-tenths percent (1.2%) of the New Midstates Equity   on account of the Company’s unencumbered assets (the “Unencumbered Assets   Equity Distribution”); provided, however, if   the Settlement is not approved and consummated as part of the Plan, the   Unencumbered Assets Equity Distribution will be (a) charged for any   Diminution in Value Claims and (b) shared among all holders of Unsecured   Notes Claims and General Unsecured Claims, including the holders of Second   Lien Notes Claims and Third Lien Notes Claims on account of their respective   Noteholder Deficiency Claims.

 

·                  Lien Trade Claims: Holders of Lien Trade Claims will be   paid in full on account of such Lien Trade Claims on the later of   (a) the Plan Effective Date and (b) the date a holder’s Lien Trade   Claim comes due in the ordinary course of business.

 

·                  GUC Claims: Holders of General Unsecured Claims will   receive their pro rata share of the Unencumbered Assets Equity Distribution (either   free of dilution if the Settlement is approved or subject to dilution, for   both the Diminution in Value Claim and the
    

 

7

 

	
 
    	
 
    	
Noteholder Deficiency   Claims, if the Settlement is not approved).

 

·                  Existing Equity: All existing equity interests (including   common stock, preferred stock and any options, warrants or rights to acquire   any equity interests) in Midstates Petroleum Company, Inc. shall be   cancelled on the Plan Effective Date and holders of such interests shall   receive no recovery under the Plan.
    
	
 
    	
 
    	
 
    
	
Other Plan Terms
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Releases and Exculpation
    	
 
    	
The Plan and Confirmation Order shall provide   customary releases (including third party releases) and exculpation   provisions, in each case, to the fullest extent permitted by law, for the   benefit of the Debtors, Reorganized Midstates, 2012 Credit Facility Lenders,   the Administrative Agent, the Second Lien Noteholders, the Third Lien   Noteholders, such entities’ respective current and former affiliates, and   such entities’ and their current and former affiliates’ current and former   officers, managers, directors, equity holders (regardless of whether such   interests are held directly or indirectly), predecessors, successors, and   assigns, subsidiaries, and each of their current and former officers,   managers, directors, equity holders, principals, members, employees, agents,   managed accounts or funds, management companies, fund advisors, advisory   board members, financial advisors, partners, attorneys, accountants,   investment bankers, consultants, representatives, and other professionals,   each in their capacity as such.
    
	
 
    	
 
    	
 
    
	
Management Incentive Plan and Management Employment   Agreements
    	
 
    	
The Plan will provide for the establishment of a   management equity incentive plan (the “MIP”) under which 10% of the New   Midstates Equity (on a fully-diluted/fully-distributed basis) will be   reserved for grants made from time to time to the directors, officers, and   other management of Reorganized Midstates. The other aspects of the MIP and   the remainder of compensation issues, including to what extent the MIP and   such compensation issues will be determined by the new board, will be   negotiated in connection with the Plan. Existing employment agreements will   be assumed and/or amended and assumed with the consent of management and the   Second Lien Group.
    
	
 
    	
 
    	
 
    
	
Corporate Governance
    	
 
    	
The terms and conditions of the new corporate   governance documents of the Reorganized Midstates (including the bylaws,   certificates of incorporation, among other governance documents) shall be   subject to the consent of the Second Lien Group; provided that, if the   Settlement is approved in connection with confirmation of the Plan, the new   corporate governance documents shall provide for all members of the initial   board of directors (or similar governing body) of reorganized Midstates   Petroleum Company, Inc. to be appointed by those parties to the PSA who   hold, in the aggregate, at least 50.1% in principal amount outstanding of the   Second Lien Notes held by all parties to the PSA.
    

 

8

 

EXHIBIT B

 

RBL Term Sheet

 

 

MIDSTATES PETROLEUM COMPANY

 

RESTRUCTURING OF DEBT FACILITIES

 

Summary of Terms and Conditions

 

This Term Sheet sets forth the summary of contemplated terms and conditions with respect to a new credit facility that the Agent (as defined below) would be willing to propose to the Lenders (as defined below) as an exit facility, under the Credit Agreement (as defined below) in connection with a restructuring of the obligations of the Obligors (as defined below). We understand that the restructuring shall be consummated through cases to be filed under Chapter 11 of the Bankruptcy Code in the United States Bankruptcy Court for the Southern District of Texas and, once fully negotiated and agreed upon by the necessary lenders, shall be reflected in the terms of a plan of reorganization (the “Plan of Reorganization”). This Term Sheet is intended only to summarize terms of a proposed agreement and is not a comprehensive recitation of all terms and conditions. This Term Sheet does not represent a commitment, obligation or understanding on the part of the Agent or any Lender to restructure or otherwise provide any financing on the terms outlined herein. Further, this Term Sheet is not intended to suggest or reflect that the Lenders holding the necessary percentages of obligations under the Credit Agreement have consented or agreed to each of the terms set forth herein. No such party shall be so obligated unless and until all internal credit approvals are sought and obtained, all definitive documentation is negotiated and executed and all conditions precedent are satisfied or waived. The definitive documentation may contain terms which vary from the terms described herein. Unless otherwise defined herein, capitalized terms used herein shall have the definition ascribed to such terms in the Credit Agreement (as defined below).

 

1. Existing Obligations

 

	
Credit Facility
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Credit Agreement:
    	
 
    	
Second Amended and Restated Credit Agreement dated   as of June 8, 2012 (as amended, restated, amended and restated,   supplemented or otherwise modified prior to the date hereof, the “Credit   Agreement “) among Midstates Petroleum Company, Inc., as guarantor   (the “Parent”), Midstates Petroleum Company LLC, as borrower (the “Borrower”;   together with the Parent, the “Obligors”), the financial institutions   party thereto (the “Lenders”) and SunTrust Bank, as Administrative   Agent (in its capacity as administrative agent, the “Agent”), Lender   and Issuing Bank.
    
	
 
    	
 
    	
 
    
	
Obligations:
    	
 
    	
The Borrower is indebted to the Lenders in an   aggregate amount equal to the principal amount outstanding under the Credit   Agreement in the amount of approximately $249,183,640.00, plus accrued but   unpaid interest, fees, costs and expenses, and has reimbursement obligations   in respect of letters of credit that are outstanding in the aggregate face   amount of approximately $2,840,935.00 (the “Existing Letters of Credit”;   collectively, the “First Lien Obligations”).
    

 

 

	
Second Lien Notes
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Issuers:
    	
 
    	
The Obligors.
    
	
 
    	
 
    	
 
    
	
Second Lien Indenture:
    	
 
    	
Indenture dated May 21, 2015 (the “Second   Lien Indenture”), among the Parent, the Borrower and Wilmington Trust,   National Association, as trustee (in such capacity, “Wilmington Trust”).   Holders of outstanding notes under the Second Lien Indenture are referred to   as the “Second Lien Noteholders.”
    
	
 
    	
 
    	
 
    
	
Obligations:
    	
 
    	
The Obligors are indebted to the Second Lien   Noteholders in an aggregate principal amount equal to approximately $625   million plus accrued but unpaid interest, fees, costs and expenses.
    
	
 
    	
 
    	
 
    
	
Third Lien Notes
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Issuers:
    	
 
    	
The Obligors.
    
	
 
    	
 
    	
 
    
	
Third Lien Indenture:
    	
 
    	
Indenture dated May 21, 2015 (the “Third   Lien Indenture”), among the Parent, the Borrower and Wilmington Trust, as   trustee. Holders of outstanding notes under the Third Lien Indenture are   referred to as the “Third Lien Noteholders.”
    
	
 
    	
 
    	
 
    
	
Obligations:
    	
 
    	
The Obligors are indebted to the Third Lien   Noteholders in an aggregate principal amount equal to approximately $529.7   million plus accrued but unpaid interest, fees, costs and expenses.
    
	
Unsecured Notes
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Issuers:
    	
 
    	
The Obligors.
    
	
 
    	
 
    	
 
    
	
Indentures:
    	
 
    	
(i) 10.75% Senior Notes due 2020 issued   pursuant to the Indenture dated as of October 1, 2012 (the “10.75%   Notes”) and (ii) 9.25% Senior Notes due 2021 issued pursuant to the   Indenture dated as of May 31, 2013 (the “9.25% Notes”), in each   case, with Wells Fargo Bank, N.A., as trustee.
    
	
 
    	
 
    	
 
    
	
Obligations:
    	
 
    	
The Obligors are indebted to the holders of the   10.75% Notes and the 9.25% Notes (collectively, the “Unsecured Noteholders”)   as follows: (i) approximately $293.6 million principal amount   outstanding under the 10.75% Notes and (ii) approximately $347.7 million   principal amount outstanding under the 9.25% Notes.
    

 

2

 

2. Restructure of First Lien Obligations

 

The First Lien Obligations, which shall be paid in full, shall be restructured in conjunction with a Plan of Reorganization that eliminates all debt for borrowed money junior to the First Lien Obligations (which junior obligations may be exchanged for equity as appropriate and negotiated by such parties) as follows:

 

	
Cash Payments
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Generally:
    	
 
    	
On the effective date of the Plan of Reorganization   (the “Plan Effective Date”), the Lenders shall receive a payment in   cash of an amount not less than $82,024,575 (the “Plan Effective Date   Payment”), which shall be allocated among the Lenders on a pro rata   basis in accordance with their respective share of the outstanding principal   amount of the Obligations.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Following the cash payment to the Lenders on the   Plan Effective Date, the Obligors (as reorganized pursuant to the Plan of   Reorganization, “Reorganized Midstates”) shall hold not less than   $110,000,000 in “cash on hand” on the Plan Effective Date, of which   $40,000,000 shall be allocated to fund the Cash Collateral Account (as   defined below) on the Plan Effective Date. In the event that Reorganized   Midstates shall have cash in excess of $70,000,000 (after deducting for the   funding of the Cash Collateral Account and the payment of all claims and   expenses due and payable on the Plan Effective Date) on the Plan Effective   Date, the Lenders shall consent to the payment in cash on the Plan Effective   Date of such excess cash and cash equivalents up to a total amount, not to   exceed, of $60,000,000 to the Second Lien Noteholders.
    
	
 
    	
 
    	
 
    
	
New Credit Facility
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Amount:
    	
 
    	
$170,000,000.
    
	
 
    	
 
    	
 
    
	
Facility:
    	
 
    	
Revolving Loans. On the Plan   Effective Date, those Lenders that shall have voted to accept the Plan (the “Accepting   Lenders” or “RBL Lenders”) shall be deemed to have extended a   reserve based revolving credit facility (the “RBL Facility”; the loans   made thereunder, the “Revolving Loans”) to Reorganized Midstates in a   principal amount outstanding, and having a commitment amount, of   (i) $170,000,000 less (ii) the aggregate principal amount of   the Term Loan (as defined below) (the “Commitment”). The initial   conforming borrowing base shall be equal to $170,000,000 (the “Initial Borrowing   Base”).
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Term Loans. On the Plan Effective   Date, those Lenders that shall have voted to reject the Plan, if any (the “Rejecting   Lenders” or “Term Lenders”) shall elect either to participate in   the RBL Facility or the Term Loan. If any Rejecting Lender either fails to   make an election, elects to participate in the Term Loan, or otherwise fails   to return a ballot such that they will have not been deemed to vote in favor   or have made an election to participate in the RBL Facility, such Rejecting   Lender will be deemed to have extended a term loan (a “Term Loan”) to   Reorganized Midstates in a principal amount equal to (i) such Rejecting   Lender’s pro rata share of the First Lien Obligations, less   (ii) such Rejecting Lender’s
    

 

3

 

	
 
    	
 
    	
pro rata share of the Effective   Date Cash Payment. Notwithstanding any other provisions herein, the   Commitment and Initial Borrowing Base shall be lowered by the pro rata   share of each such Rejecting Lender’s loans which become the Term Loan.(1)   The Obligations in respect of the Term Loan shall be subordinated to those in   respect of the RBL Facility. Upon exercise of remedies or maturity, the Term   Loan shall be a last-out loan, which shall be paid only following   indefeasible payment in full of the Obligations in respect of the Revolver   Loans.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
For the avoidance of doubt, Reorganized Midstates   shall not be permitted to convert Revolving Loans to Term Loans.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Fees. Reorganized Midstates will   pay to the Agent, for the ratable benefit of each RBL Lender (excluding   defaulting lenders), the following fees: (i) on the Plan Effective Date,   a non-refundable upfront fee in an aggregate amount equal to 0.50% of the Commitment   on the Plan Effective Date, and (ii) quarterly in arrears on the first   day of each calendar quarter, a commitment fee calculated on the average   daily amount of the Availability at a per annum rate equal to 0.50%.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Letter of Credit. In connection with   the RBL Facility, SunTrust (in such capacity, the “Issuing Lender”)   will make available to Reorganized Midstates a letter of credit sub-facility   of up to $10,000,000 (the “Sub-Facility Capacity”) subject to   customary notice requirements and Availability. Letters of credit issued   under the RBL Facility (the “Letters of Credit”) will be used for   general corporate purposes and shall expire not later than the earlier of   (i) 12 months after its date of issuance or such longer period of time   as may be agreed by the applicable Issuing Lender and (ii) the fifth   business day prior to the Commitment Termination Date (as defined below); provided   that any Letter of Credit may provide for automatic renewal thereof for   additional periods of up to 12 months or such longer period of time as may be   agreed by the Issuing Lender (which in no event shall extend beyond the date   referred to in clause (ii) above, except to the extent cash   collateralized or backstopped pursuant to arrangements reasonably acceptable   to the Issuing Lender).
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
The Existing Letters of Credit shall be “rolled   over” and deemed Letters of Credit under the RBL Facility and shall count   towards its Sub-Facility Capacity.(2)
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Reorganized Midstates will pay a fee equal to the   Applicable Margin (as defined below) then in effect for LIBOR borrowings,   which fee will accrue on the aggregate face amount of outstanding Letters of   Credit, payable in arrears at the end of each quarter and upon the   termination of
    

 

(1) NTD: Each Rejecting Lender would have the option of being treated as an Accepting Lender by giving irrevocable notice of such decision to Reorganized Midstates and the Agent not less than three (3) business days before the Plan Effective Date.

 

(2) NTD: Note that no new Letters of Credit would be available after the Plan Effective Date absent repayment of loans or expiry or termination of Existing Letters of Credit.

 

4

 

	
 
    	
 
    	
the RBL Facility, in each case for the actual number   of days elapsed over a 360-day year. Such fees shall be distributed to the   RBL Lenders pro rata in accordance with the amount of each such RBL   Lender’s Commitment. In addition, Reorganized Midstates shall pay to the   Issuing Lender, for its own account, (i) a fronting fee equal to a   0.125% of the aggregate face amount of outstanding Letters of Credit, payable   in arrears at the end of each quarter and upon the termination of the RBL   Facility, calculated based upon the actual number of days elapsed over a   360-day year and (ii) customary issuance and administration fees to be   mutually agreed.
    
	
 
    	
 
    	
 
    
	
Administrative Agent:
    	
 
    	
SunTrust Bank (the “Agent”).
    
	
 
    	
 
    	
 
    
	
Maturity:
    	
 
    	
The RBL Facility shall terminate, and all amounts   outstanding shall be due and payable, on the earlier of (i) the   four-year anniversary of the Plan Effective Date or   (ii) September 30, 2020 (such earlier date, the “Commitment   Termination Date”).
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
The Term Loans shall mature, and all amounts   outstanding shall be payable, on the Commitment Termination Date.
    
	
 
    	
 
    	
 
    
	
Guarantors:
    	
 
    	
All obligations of Reorganized Midstates   (collectively, the “Obligations”) under (i) the RBL Facility,   (ii) the Term Loans, (iii) interest rate protection, commodity   trading or hedging, currency exchange or other hedging or swap arrangements   entered into with any person that was then a Lender or any affiliate thereof   (the “Hedging Arrangements”) and (iv) treasury management   arrangements entered into with any person that was then a Lender or any   affiliate thereof (“Treasury Arrangements”) will be unconditionally   guaranteed jointly and severally on a pari passu senior secured basis (the “Guarantees”)   by any direct or indirect subsidiary of Reorganized Midstates (the “Guarantors”;   together with Reorganized Midstates, the “Credit Parties”).
    
	
 
    	
 
    	
 
    
	
RBL Availability:
    	
 
    	
So long as the Total Outstandings (as defined below)   do not exceed the Revolving Loan Limit (as defined below): (i) Revolving   Loans will be available at any time on same day notice in the case of ABR   loans prior to the Commitment Termination Date, in minimum principal amounts   of $500,000 and increments of $100,000 in excess thereof, (ii) Letters   of Credit will be issued as described below and (iii) amounts repaid   under the RBL Facility may be reborrowed.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
“Total Outstandings” means, at any time, the   aggregate principal amount of Revolving Loans then outstanding plus the   aggregate stated amount of all issued Letters of Credit and, without   duplication, all unreimbursed disbursements on any Letter of Credit as of   such date (unless cash collateralized or backstopped pursuant to arrangements   acceptable to the Issuing Lender).
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
“Revolving Loan Limit” means, at any time,   the lesser of (i) the Commitment and (ii) the Borrowing Base. For   purposes hereof,
    

 

5

 

	
 
    	
 
    	
“Availability”   shall mean an amount (if positive) equal to the Revolving Loan Limit less   Total Outstandings, and “Liquidity” shall mean at any time an amount   (if positive) equal to Availability plus unrestricted cash and cash   equivalents at the Credit Parties at such time minus the amount of any   Borrowing Base Deficiency (as defined below) at such time.
    
	
 
    	
 
    	
 
    
	
Borrowing Base:
    	
 
    	
Subject to the   Borrowing Base Redetermination Holiday (as defined below), the borrowing base   for the RBL Facility shall be based on the loan value of the proved oil and   gas reserves included in a Reserve Report (as defined below) and other oil   and gas properties of Reorganized Midstates located within the geographic   boundaries of the United States or the outer continental shelf adjacent to   the United States, determined in accordance with the Credit Agreement,   subject to adjustments in accordance with the terms set forth below (the “Borrowing   Base”).
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
The Borrowing Base   shall be re-determined semi-annually on or about April 1 and   October 1 of each year, based upon a reserve report prepared as of the   immediately preceding December and June, respectively, and other related   information, and delivered on or before March 1 and September 1,   respectively (each such report, a “Reserve Report”) and other related   information, if any, required by the Agent to be delivered. The Credit   Parties shall produce to the Agent a Reserve Report prepared as of   December 31st of each year by an independent reserve   engineer, such as Cawley Gillespie & Associates, Netherland,   Sewell & Associates, Inc., Ryder Scott Company Petroleum   Consultants, L.P., DeGolyer and MacNaughton or another independent petroleum   engineering firm reasonably acceptable to the Agent and Reorganized Midstates   (any such firm, an “Approved Petroleum Engineer”). The Credit Parties   shall produce to the Agent a Reserve Report prepared as of June 30th of each year, which Reserve Reports may be   prepared internally by a petroleum engineer employed by Reorganized Midstates   (or may, at the election of Reorganized Midstates, be prepared by an Approved   Petroleum Engineer). The Borrowing Base shall be proposed by the Agent in   good faith and approved by the Lenders under the RBL Facility consistent with   the terms under the Credit Agreement. Each determination of the Borrowing Base   shall be made by the Agent and the Lenders in good faith in accordance with   its respective usual and customary oil and gas lending criteria as it exists   at the particular time (as determined by each such Lender in its sole   discretion) pursuant to procedures set forth in the Credit Agreement.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
So long as there is no   Event of Default under the Credit Agreement and the Curtailment Covenant (as   defined below) has not been breached, the Initial Borrowing Base shall remain   the same and the RBL Lenders shall not be entitled to give to Reorganized   Midstates notice of a Borrowing Base redetermination for Fall 2016, Spring   2017 and/or Fall 2017 (such periods collectively, the “Borrowing Base   Redetermination Holiday”). The Borrowing Base Redetermination Holiday   shall extend up to the Spring 2018 Borrowing Base redetermination, on or   about April 1, 2018.
    

 

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Unscheduled   re-determinations of the Borrowing Base, may be made not more than once between   any two scheduled re-determination dates (i) at the request of the Agent   or Required RBL Lenders (to be defined in the RBL Loan Documents) and   (ii) at the request of Reorganized Midstates; provided that no   unscheduled re-determinations of the Borrowing Base may be made during the   Borrowing Base Redetermination Holiday.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
To the extent any   redetermination represents an increase in the Borrowing Base in effect prior   to such redetermination, such Borrowing Base will be the largest amount   approved or deemed approved by each Lender under the RBL Facility and to the   extent any redetermination represents a decrease in, or reaffirmation of, the   Borrowing Base in effect prior to such redetermination, such Borrowing Base   will be the largest amount approved or deemed approved by the Required RBL   Lenders, provided that no Lender shall be required to increase its commitment   amount under the RBL Facility in connection with an increase in the Borrowing   Base.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
In addition to the   foregoing, the Borrowing Base will also be subject to adjustments between   re-determinations, including during the Borrowing Base Redetermination   Holiday in connection with:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
(i)             sales or other   dispositions of, and casualty and condemnation events in respect of,   Borrowing Base Properties (as defined below) and early monetization or early   termination of any hedge or swap positions relied on by the Lenders in   determining the Borrowing Base, in each case, in excess of three percent (3%)   of the Borrowing Base in any period between scheduled redeterminations as a   result of any one transaction or a series of transactions, and as set forth   in the RBL Facility loan documents (the “RBL Loan Documents”); and
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
(ii)          at Reorganized   Midstates’ election, acquisitions of oil and gas properties as set forth in   the RBL Loan Documents;
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
provided,   that, for the avoidance of doubt, these adjustments shall be limited to the   effects of the transactions described above and shall not include changes in   the Reserve Reports vis-à-vis continuing properties or changes in the   Lenders’ price decks.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Reorganized Midstates   may on any redetermination date elect a reduced Borrowing Base.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
A Borrowing Base   reduction shall result in a concurrent reduction of the Commitments under the   RBL Facility (it being understood that any reduction of Commitments under the   RBL Facility shall only be tied to the pro rata reduction of the   Borrowing Base attributable to the RBL Facility).
    
	
 
    	
 
    	
 
    
	
Interest:
    	
 
    	
Reorganized Midstates   may elect that the Loans comprising each borrowing bear interest at a rate per   annum equal to: (i) the ABR plus the
    

 

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Applicable Margin (as   defined below) or (ii) the LIBOR rate plus the Applicable Margin, with a   LIBOR floor to be established at 1.00%. Reorganized Midstates may elect   interest periods of 1, 2, 3 or 6 months (or, if available to all relevant   Lenders, 12 months) for LIBOR borrowings. Calculation of interest shall be on   the basis of the actual days elapsed in a year of 360 days (or 365 or 366   days, as the case may be, in the case of ABR loans based on the Prime Rate)   and interest shall be payable at the end of each interest period and, in any   event, at least every 3 months.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
“Applicable Margin”   means 4.50% with respect to Revolving Loans and 3.50% with respect to Term   Loans.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
At any time when there   is an Event of Default, all outstanding amounts shall bear interest at 2.00%   above the rate otherwise applicable thereto.
    
	
 
    	
 
    	
 
    
	
Collateral:
    	
 
    	
The Obligations shall   be secured by the following (the “Collateral”):
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
(i)             a first priority   perfected security interest in, and mortgage lien on, not less than 95.0% of   the proved oil and gas reserves and all other oil and gas properties of   Reorganized Midstates and any other Credit Party (as of the Plan Effective   Date), including as may be set forth in the Reserve Report delivered on or   before the Plan Effective Date and each subsequent Reserve Report; provided,   that the Borrower agrees to use commercially reasonable efforts to grant a   first-priority perfected security interest in, and mortgage lien on,   substantially all of the other oil and gas properties of Reorganization   Midstates and any other Credit Party in connection with the delivery of each   Reserve Report;
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
(ii)          a first priority   perfected security interest in, and lien on, substantially all other   presently owned and after-acquired property of the Credit Parties, including,   without limitation, cash and cash equivalents which shall be placed only in   accounts subject to deposit account control agreements in form and substance   acceptable to the Agent or accounts at the Agent, receivables, all   intangibles, and all rights to payments; and
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
(iii)       a first priority   perfected pledge of all equity interests of any Credit Party (other than   Parent), with any such certificated interests to be delivered to the Agent   together with blank stock powers.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
None of the Collateral   or other assets of the Credit Parties shall be subject to other pledges,   security interests or mortgages, subject to customary exceptions for financings   of this kind.
    
	
 
    	
 
    	
 
    
	
Mandatory Prepayments:
    	
 
    	
At any time (other than   as set forth in the last paragraph of this section) that the aggregate amount   of the outstanding (i) Revolving Loans and Letters of Credit (including   unreimbursed amounts drawn on any Letter of Credit that have not been cash   collateralized or backstopped) plus (ii) Term Loans exceeds the   Borrowing Base (a “Borrowing Base
    

 

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Deficiency”),   Reorganized Midstates shall, within ten (10) business days after written   notice from the Agent to Reorganized Midstates of such Borrowing Base   Deficiency, notify the Agent that it intends to take one or more of the   following actions:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
(i)             within thirty (30)   days after receipt of the Agent’s notice, provide additional Borrowing Base   Properties to the extent necessary to eliminate such Borrowing Base   Deficiency;
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
(ii)          within thirty (30)   days after receipt of the Agent’s notice, prepay the Revolving Loans and the   Term Loans in a pro rata amount based on the then-outstanding   principal amounts of the Revolving Loans and the Term Loans in an amount   sufficient to eliminate such Borrowing Base Deficiency;
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
(iii)       prepay the Revolving   Loans and the Term Loans in a pro rata amount based on the   then-outstanding principal amounts of the Revolving Loans and the Term Loans   in an amount sufficient to eliminate such Borrowing Base Deficiency in six   equal monthly installments with principal and interest beginning on the date   that is thirty (30) days after Reorganized Midstates’ receipt of notice of   such Borrowing Base Deficiency from the Agent ; or
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
(iv)      take any combination of   actions set forth in clauses (i) through (iii) above;
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
provided,   in each case, that all amounts outstanding must be repaid by the Commitment   Termination Date.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
If the Borrowing Base   is adjusted as the result of an asset sale, disposition, casualty or   condemnation event or early monetization or termination of any hedge or swap   position and a Borrowing Base Deficiency results from such adjustment, then   no later than two (2) business days following the date Reorganized   Midstates receives the net cash proceeds thereof, if any, Reorganized   Midstates shall apply such proceeds to the repayment of Revolving Loans (and   concurrent reduction of the Commitment (it being understood that any   reduction of Commitments under the RBL Facility shall only be tied to the pro   rata reduction of the Borrowing Base attributable to the RBL Facility))   and the Term Loans in a pro rata amount based on the then-outstanding   principal amounts of the Revolving Loans and the Term Loans (with any   Borrowing Base Deficiency that remains after applying such proceeds to be   addressed as required herein for Mandatory Prepayments). Additionally, any   Borrowing Base Deficiency resulting from a voluntary termination of   commitments shall be required to be eliminated within one (1) business   day of the date of such termination.
    
	
 
    	
 
    	
 
    
	
Voluntary Prepayments:
    	
 
    	
Voluntary reductions of   the unutilized portion of the RBL Facility commitments and voluntary   prepayments of borrowings under the RBL Facility will be permitted at any   time, in minimum principal amounts of $500,000 or increments of $100,000 in   excess thereof, without premium
    

 

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or penalty, subject to   reimbursement of the Lenders’ redeployment costs in the case of a prepayment   of LIBOR borrowings other than on the last day of the relevant interest   period.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
The documentation in   respect of the Term Loan (the “Term Loan Documents”; together with the   RBL Documents, the “Loan Documents”) shall provide that Reorganized   Midstates shall not be permitted to prepay the Term Loan so long as the   Commitment under the RBL Facility shall remain in effect.
    
	
 
    	
 
    	
 
    
	
Conditions to   Borrowings:
    	
 
    	
The making of each   extension of credit under the RBL Facility shall be conditioned upon   (a) the accuracy of representations and warranties set forth in the RBL   Loan Documents in all material respects (without duplication of any   materiality standard), (b) delivery of a customary borrowing notice and   (c) the absence of defaults or events of default at the time of, and   after giving effect to the making of, such extension of credit.
    
	
 
    	
 
    	
 
    
	
Representations and   Warranties:
    	
 
    	
The Loan Documents   shall include usual and customary representations and warranties, including:   existence and organizational status; power and authority; qualification;   execution, delivery and enforceability; compliance with laws; with respect to   the execution, delivery and performance, no violation of, or conflict with,   law, charter documents or material agreements; litigation; margin   regulations; material governmental approvals and other consents with respect   to the execution, delivery and performance of the RBL Facility; Investment   Company Act; PATRIOT Act; absence of undisclosed liabilities; accuracy of   disclosure and financial statements; no material adverse effect; no defaults;   insurance; taxes; ERISA; subsidiaries; creation and perfection of security   interests (including compliance with collateral coverage ratio);   environmental laws; properties; subsidiaries and equity interests; sanctions   laws; direct benefit; and consolidated closing date solvency; gas imbalances;   marketing of production; hedge agreement; and other representations and   warranties deemed appropriate by the Agent and the Lenders; subject, in the   case of each of the foregoing representations and warranties, to   qualifications and limitations for materiality to be agreed.
    
	
 
    	
 
    	
 
    
	
Affirmative Covenants:
    	
 
    	
The Loan Documents   shall include usual and customary affirmative covenants, including:   (i) delivery of annual, quarterly, and monthly financial statements and   other information, with annual financial statements to be accompanied by an   audit opinion from nationally recognized auditors that is not subject to   qualification as to “going concern” or the scope of such audit (other than   any “going concern” qualification as a result of impending maturity of the   Revolving Loans or Term Loans); with the delivery of Reserve Reports,   financial projections (presented on a semi-annual basis) for the then   immediately following one (1) year period; (ii) compliance   certificates, other certificates and other information; (iii) delivery   of notices of defaults and certain material events; (iv) inspections   (including books and records); (v) maintenance of organizational   existence and rights and privileges; (vi) maintenance of
    

 

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insurance;   (vii) payment of taxes and other obligations; (viii) corporate   franchises; (ix) compliance with laws (including environmental laws);   (x) maintenance of properties; (xi) operations;   (xii) additional guarantors and collateral; (xiii) satisfactory   title opinions or other title information with respect to at least 80% of the   total value of proved oil and gas properties in the Reserve Report that are   mortgaged as Collateral; (xiv) use of proceeds; (xv) sanctions laws;   (xvi) further assurances on collateral matters; and (xvii) reserve   reports, subject, in the case of each of the foregoing covenants, to   exceptions and qualifications to be agreed.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
In addition,   Reorganized Midstates shall provide:                      (i) monthly   operations/business plan updates; (ii) updated ARIES database semi-annually;   (iii) thirteen (13) week cash flow (including sources and uses) and a   variance against prior periods, updated monthly (which reporting requirement   shall be eliminated from and after the date that notice is given to   Reorganized Midstates on or about April 1, 2018 of the Spring 2018   Borrowing Base redetermination (the “April 2018 Notice Date”).
    
	
 
    	
 
    	
 
    
	
Negative Covenants:
    	
 
    	
The Loan Documents   shall include usual and customary negative covenants, including limitations   on (i) the incurrence or maintenance of debt; (ii) the incurrence   or maintenance of liens; (iii) fundamental changes; (iv) asset   sales or early monetization or early termination of any hedge or swap   positions relied on by the Lenders in determining the Borrowing Base;   (v) investments; (vi) dividends or distributions on, or redemptions   of, capital stock of the Borrower; (vii) amendments of material debt   documents (if any) and prepayments or redemptions in respect thereof; (viii) negative   pledges and limitations subsidiary distributions; (ix) commodity hedging   (with non-speculative commodity hedging permitted with respect to aggregate   notional volumes of oil, gas and NGLs (calculated separately) hedged on a   monthly basis not to exceed 75% of reasonably anticipated production (based   on the most recently delivered Reserve Report, as adjusted in good faith to   account for updated information) of oil, gas and NGLs, respectively, for any   month (measured as of each date any such commodity hedging transaction is   entered into); provided that no commodity hedging shall be permitted for any   month more than 48 months following the date any commodity hedging   transaction is entered into); (x) transactions with affiliates;   (xi) change in nature of business; (xii) gas imbalances,   take-or-pay or other prepayments; and (xiii) use of proceeds.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
The Loan Documents   shall also contain a negative covenant concerning the effect upon hydrocarbon   production from any regulatory curtailment of the Credit Parties’ ability to   dispose of salt water in the State of Oklahoma arising from the effect of any   such regulation by the Oklahoma Corporation Commission (the “Curtailment   Covenant”). A breach of the Curtailment Covenant shall occur if a   Negative Effect (defined below) upon the hydrocarbon production volumes of   the Credit Parties results, in whole or in part, from any curtailment of   salt-water disposal operations in the State of Oklahoma imposed by any   regulatory body, including but not limited to the Oklahoma Corporation Commission,   regardless of whether the imposition of such curtailment
    

 

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results from any   negotiation, mandate, exercise of regulatory authority, or judicial order or   enforcement. A negative effect (the “Negative Effect”) occurs when the   Credit Parties fail to achieve the projected hydrocarbon production levels   set forth in the Reorganized Midstates’ Business Plan (a copy of which shall   be attached as an exhibit to the RBL Loan Documents, the “Business Plan”)   as a result of the effect of any regulatory curtailment on the Credit   Parties’ ability to dispose of salt water in the State of Oklahoma at any   point prior to the Commitment Termination Date by an amount more than 10.0%   lower than the projected sixty (60) day rolling average of hydrocarbon   production levels, as measured each two-month period by looking at   hydrocarbon production for the prior sixty (60) day period. In the event the   Curtailment Covenant is breached (i) prior to April 1, 2018, a   Borrowing Base redetermination shall occur promptly thereafter,   notwithstanding any other limits on unscheduled redetermination or   (ii) after April 1, 2018, Reorganized Midstates shall provide   prompt written notice thereof to the Agent and the Agent shall reserve all   rights to request an unscheduled redetermination under the terms of the Loan   Documents.
    
	
 
    	
 
    	
 
    
	
Financial Covenants:
    	
 
    	
The Loan Documents   shall contain the following financial covenants:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Leverage Ratio.   As of the last day of any fiscal quarter, commencing December 31, 2016   through the fiscal quarter ended March 31, 2018, the ratio of Total   Indebtedness to EBITDA for the trailing four fiscal quarters shall not exceed   2.25:1.00; provided that Total Indebtedness and EBITDA (i) for the   fiscal quarter ended December 31, 2016, shall be equal to Total   Indebtedness and EBITDA, respectively, for the fiscal quarter ending on such   date multiplied by 4, (ii) for the fiscal quarter ended March 31,   2017, shall be equal to Total Indebtedness and EBITDA, respectively, for the   two fiscal quarters ending on such date multiplied by 2 and (iii) for   the fiscal quarter ended June 30, 2017, shall be equal to Total   Indebtedness and EBITDA, respectively, for the three fiscal quarters ending   on such date multiplied by 4/3. As of the last day of any fiscal quarter,   commencing June 30, 2018, the ratio of Total Indebtedness to EBITDA for   the trailing four fiscal quarters shall not exceed 3.00:1.00.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Interest Coverage.   As of the last day of any fiscal quarter, commencing December 31, 2016,   the ratio of EBITDA to Interest Expense for the trailing four fiscal quarters   shall not less than 3.00:1.00; provided that EBITDA and Interest   Expense (i) for the fiscal quarter ended December 31, 2016, shall   be equal to EBITDA and Interest Expense, respectively, for the fiscal quarter   ending on such date multiplied by 4, (ii) for the fiscal quarter ended   March 31, 2017, shall be equal to EBITDA and Interest Expense, respectively,   for the two fiscal quarters ending on such date multiplied by 2 and   (iii) for the fiscal quarter ended June 30, 2017, shall be equal to   EBITDA and Interest Expense, respectively, for the three fiscal quarters   ending on such date multiplied by 4/3.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Capital Expenditures.   Beginning with the quarter ended December 31, 2016, Capital Expenditures   shall be capped at (a) for the 6 months
    

 

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ending   December 31, 2016, $50,000,000, (b) for the fiscal year ending   December 31, 2017, $81,000,000, (c) for the fiscal year ending   December 31, 2018, $85,000,000 and (d) for the fiscal year ending   December 31, 2019, $78,000,000; provided, however, that Capital   Expenditures in an aggregate amount up $10,000,000 and used solely for   purposes of mitigating the consequences of a regulatory curtailment issued by   the Oklahoma Corporation Commission shall not be included for purposes of   calculating Capital Expenditures for purposes of the covenant.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
If the amount of   Capital Expenditures in the Company’s Business Plan (a) for the 6 months   ending December 31, 2016 is greater than the amount of Capital   Expenditures actually made in such six month period (the amount by which such   Capital Expenditures in the Company’s Business Plan for such six month period   exceeds the actual amount of Capital Expenditures for such six month period   in an aggregate amount up to $10,000,000, the “Initial Excess Amount”)   or (b) for any Fiscal Year is greater than the amount of Capital   Expenditures actually made in such Fiscal Year (the amount by which such   Capital Expenditures in the Company’s Business Plan for such Fiscal Year   exceeds the actual amount of Capital Expenditures for such Fiscal Year in an   aggregate amount up to $10,000,000, the “Excess Annual Amount” and,   together with the Initial Excess Amount, the “Excess Amount”), then   the Excess Amount (such amount, the “Carry-Over Amount”) may be   carried forward to the next succeeding Fiscal Year (the “Succeeding   Fiscal  Year”); provided,   that the Carry-Over Amount applicable to a particular Succeeding Fiscal Year   may not be carried forward to another Fiscal Year. Capital Expenditures made   by the Credit Parties in any Fiscal Year shall be deemed to reduce   (x) first, the Carry-Over Amount, and (y) then, the amount provided   for above for such Fiscal Year.
    
	
 
    	
 
    	
 
    
	
Minimum Liquidity:
    	
 
    	
On the Plan Effective   Date, Reorganized Midstates shall fund a cash collateral account which shall   be maintained at the Agent (the “Cash Collateral Account”) in an   amount equal to $40,000,000. The documentation with respect to the Cash   Collateral Account shall be acceptable to the Agent in its sole discretion.   Reorganized Midstates shall have no authority to access funds in the Cash   Collateral Account until the April 2018 Notice Date (after which, so   long as no Borrowing Base Deficiency then exists, Reorganized Midstates will   have unfettered access to the funds but subject to ongoing control); provided,   however, that either Reorganized Midstates or the Required RBL Lenders   may at any time, direct the Agent to apply all, but not less than all, of the   funds in the Cash Collateral Account to the repayment of the Revolving Loans.   In the event that Reorganized Midstates or the Required RBL Lenders directs   the Agent to repay the Revolving Loans with funds in the Cash Collateral   Account (such amount, the “Released Funds”), then from such date until   the April 2018 Notice Date, notwithstanding the amount of the Commitment,   Availability shall in no event exceed (i) the aggregate principal amount   of Revolving Loans outstanding on the Plan Effective Date, less (ii) the   Released Funds. For the avoidance of doubt, following
    

 

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the April 2018   Notice Date, Availability shall be determined in accordance with the terms   and provisions of the Loan Documents.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
From and after the   April 2018 Notice Date, the Credit Parties shall maintain at all times minimum   Liquidity (cash and cash equivalents plus Availability) equal to 20% of the   then-existing Borrowing Base.
    
	
 
    	
 
    	
 
    
	
Events of Default:
    	
 
    	
The Loan Documents   shall include usual and customary defaults and events of default with   thresholds and grace periods to be agreed by the Agent and the Lenders,   including: (i) nonpayment of principal, interest or other amounts;   (ii) violation of covenants; (iii) incorrectness of representations   and warranties in any material respect; (iv) cross default and cross   acceleration to material indebtedness; (v) bankruptcy of a Credit Party;   (vi) material monetary judgments; (vii) material ERISA events;   (viii) actual or asserted invalidity of material guarantees or security   documents; and (ix) change of control.
    
	
 
    	
 
    	
 
    
	
Cost and Yield   Protection:
    	
 
    	
The RBL Loan Documents   shall contain customary provisions (i) protecting the Lenders against   increased costs or loss of yield resulting from changes in reserve, tax,   capital adequacy and other requirements of law and from the imposition of or   changes in withholding or other taxes and (ii) indemnifying the Lenders   for “breakage costs” incurred in connection with, among other things, any   prepayment of a LIBOR loan on a day other than the last day of an interest   period with respect thereto. The Dodd-Frank Wall Street Reform and Consumer   Protection Act and Basel III (and all requests, rules, guidelines or   directives relating to each of the foregoing or issued in connection   therewith) shall be deemed to be changes in law regardless of the date enacted,   adopted or issued. The RBL Loan Documents shall contain “EU Bail-In”   protections.
    
	
 
    	
 
    	
 
    
	
Expenses and   Indemnification:
    	
 
    	
Reorganized Midstates   shall pay (i) all reasonable and documented out-of-pocket expenses of   the Agent associated with the preparation, execution, delivery and   administration of the loan documentation and any amendment or waiver with   respect thereto (including the reasonable fees, disbursements and other   charges of counsel and financial advisors) and (ii) all out-of-pocket   expenses of the Agent and the Lenders (and their affiliates and their   respective officers, directors, employees, advisors and agents) (including   the reasonable and documented fees, disbursements and other charges of legal   counsel and financial advisors) in connection with the enforcement of the   Loan Documents, including pursuing remedies in respect thereof.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
The Agent and the   Lenders (and their affiliates and their respective officers, directors,   employees, advisors and agents) will have no liability to the Credit Parties,   and will be indemnified and held harmless against, any loss, liability, cost   or expense incurred in respect of the financing contemplated hereby or the   use or the proposed use of proceeds thereof; provided that   the foregoing will not, as to any indemnified person, apply to losses,   claims, damages, liabilities or related expenses to the extent they are found   by a final, non-appealable judgment of a court of
    
	
 
    	
 
    	
 
    

 

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competent jurisdiction   to (i) arise or result from (A) the willful misconduct, bad faith   or gross negligence of such indemnified person or (B) a breach in bad   faith of the funding obligations of such indemnified person, or   (ii) have not resulted from an act or omission by you or any of your   affiliates and have been brought by an indemnified person against any other   indemnified person (other than any claims against Agent in its capacity as   such).
    
	
 
    	
 
    	
 
    
	
Closing Conditions:
    	
 
    	
The closing shall be   conditioned upon satisfaction (or waiver by the Lenders) of conditions   precedent usual for facilities and transactions of this type, but in any   event on or   before          , 2016,   including, without limitation, the following (the date upon which all such   conditions precedent shall be satisfied, the “Closing Date”):
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
(i)                       The Loan   Documents shall contain the terms set forth in this Term Sheet and shall   contain representations, warranties, covenants and events of default   customary for financings of this type and other terms deemed appropriate by   and acceptable to the Borrower, the Agent and the Lenders;
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
(ii)                    The Agent   and each Lender shall be satisfied that the disclosure statement filed in   accordance with Section 1125 of the Code (the “Disclosure Statement”)   with respect to the Plan of Reorganization does not contain any materially   inaccurate information (or fail to disclose material information) and that   there are no material administrative expenses, priority tax claims,   reclamation claims, general unsecured claims or other claims that have not   been disclosed or estimated in the Disclosure Statement;
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
(iii)                 The Plan of   Reorganization, and all orders of the Bankruptcy Court, including, without   limitation, the confirmation order entered in connection with the Plan of   Reorganization (the “Confirmation Order”) shall be in form and   substance satisfactory to each of the Agent and each Lender and shall be final   and non-appealable and in full force and effect and shall not have been   stayed, reversed, vacated or otherwise modified in a manner material and   adverse to interests of the Agent and the Lenders or otherwise contrary to   this Term Sheet;
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
(iv)                The Plan   Effective Date shall have occurred, all conditions precedent to the   effectiveness of the Plan of Reorganization shall have been fulfilled or   waived as permitted therein, including, without limitation, the execution,   delivery and all transactions contemplated in the Plan of Reorganization or   in the Confirmation Order to occur on the effective date of the Plan of   Reorganization shall have been substantially consummated in accordance with   the terms thereof and in compliance with applicable law, Bankruptcy Court and   regulatory approvals;
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
(v)                   The Agent   shall have received satisfactory evidence as to the payment in full on the   Plan Effective Date of all material
    

 

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administrative expense   claims, priority claims and other claims required to be paid upon the Plan   Effective Date;
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
(vi)                The   execution and delivery of the Loan Documents, including security agreements,   mortgages, deeds of trust, control agreements, any stock certificates and UCC   and real property filings and (ii) delivery of customary legal opinions,   customary insurance certificates, lien searches, customary officer’s closing   certificates, organizational documents, customary evidence of authorization   and good standing certificates in jurisdictions of formation/organization;
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
(vii)             All governmental   and third party consents and approvals necessary in connection with the Loan   Documents and the transactions contemplated thereby shall have been obtained   and shall remain in effect; and no law or regulation shall be applicable in   the judgment of the Agent that prevents the RBL Facility, the Term Loan or   the transactions contemplated thereby;
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
(viii)          All   representations and warranties in the Loan Documents shall be true and   correct in all material respects (without duplication of any materiality   standard);
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
(ix)                All fees   required to be paid on the Closing Date and all reasonable out-of-pocket   expenses required to be paid on the Closing Date in connection with the RBL   Facility and the Term Loan, including the fees and expenses of the Agent’s   legal counsel and financial advisors, including Mayer Brown LLP and FTI,   respectively, shall have been paid in full; and
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
(x)                   Customary   releases shall have been granted to the Lenders, and their customary related   and representative parties, under the Plan of Reorganization.
    
	
 
    	
 
    	
 
    
	
Miscellaneous:
    	
 
    	
The Loan Documents may contain   other terms and conditions that are customary of agreements of this nature.
    
	
 
    	
 
    	
 
    
	
Governing Law and   Forum:
    	
 
    	
State of New York.
    

 

16

 

EXHIBIT C

 

FORM OF TRANSFER AGREEMENT FOR CONSENTING PARTIES

 

This Transfer Agreement to the Plan Support Agreement, dated as of [April     ,] 2016 (as amended, supplemented or otherwise modified from time to time, the “Agreement”),  by and among Midstates Petroleum Company, Inc. and Midstates Petroleum Company LLC (together, the “Company”),  and the other parties signatory thereto (together with their respective successors and permitted assigns, the “Consenting Parties,” and each, a “Consenting Party”) is executed and delivered by [                      ] (the “Joining Party”) as of [               ], 2016. Each capitalized term used herein but not otherwise defined shall have the meaning set forth in the Agreement.

 

1.         Agreement to be Bound. The Joining Party hereby agrees to be bound by all of the terms of the Agreement, a copy of which is attached to this Transfer Agreement as Annex I (as the same has been or may be hereafter amended, restated or otherwise modified from time to time in accordance with the provisions hereof). The Joining Party shall hereafter be deemed to be a “Consenting Party” and a “Party” for all purposes under the Agreement and with respect to any and all First Lien Claims, Second Lien Notes Claims, Third Lien Notes Claims, and/or GUC Claims (if any) held by such Joining Party.

 

2.         Governing Law. This Transfer Agreement shall be governed by and construed in accordance with the internal laws of the State of New York, without regard to any conflicts of law provisions which would require the application of the law of any other jurisdiction.

 

* * * * *

 

[THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK]

 

 

IN WITNESS WHEREOF, the Joining Party has caused this Transfer Agreement to be executed as of the date first written above.

 

[CONSENTING PARTY]

 

 

	
By:
    	
 
    	
 
    	
 
    
	
Name:
    	
 
    	
 
    	
 
    
	
Title:
    	
 
    	
 
    	
 
    

 

	
Principal Amount of First Lien Claims:
    	
 
    	
$
    
	
Principal Amount of Second Lien Notes:
    	
 
    	
$
    
	
Principal Amount of Third Lien Notes:
    	
 
    	
$
    
	
Principal Amount of 2020 Unsecured Notes:
    	
 
    	
$
    
	
Principal Amount of 2021 Unsecured Notes:
    	
 
    	
$
    
	
Principal Amount of Other GUC Claims:
    	
 
    	
$
    

 

Notice Address:

 

Fax:

Attention:

Email:

 

[Signature page to Joinder Agreement]

 

2

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