Document:

ex_10-1.htm

    Exhibit
10.1

     

     

     

    
      MUTUAL
TERMINATION AGREEMENT AND RELEASE

      

               This
Mutual Termination Agreement and Release ("Agreement") is entered into as of
October 19, 2009 (the "Effective Date") by
and between Black Oak Resources, LLC, a Delaware limited liability company
("Black Oak"),
and Legacy Reserves Operating LP, a Delaware limited partnership (“Legacy”).  Black
Oak and Legacy are referred to herein individually as a “Party” and
collectively as the “Parties”.

      

      RECITALS:

      

               WHEREAS,
Black Oak and Legacy are parties to that certain Participation Agreement dated
as of September 24, 2008 (the "Participation
Agreement");

      

               WHEREAS,
the Parties desire to terminate the Participation Agreement and to and release
each other from all duties, rights, claims, obligations and liabilities arising
from, in connection with, or relating to, the Participation Agreement as
provided herein;

      

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

      

      Section
1.                        Termination of Participation
Agreement.  The Parties agree that, effective immediately, the
Participation Agreement is hereby terminated and is no longer in force or effect
as of the Effective Date.

      

      Section
2.                        Mutual
Release.  Each of the Parties does hereby unequivocally release
and discharge the other Party and any of its respective officers, directors,
agents, managers, employees, representatives, equityholders, legal and financial
advisors, parents, subsidiaries, affiliates, principals or partners, and any
heirs, executors, administrators, successors or assigns of any said person or
entity, from any and all duties, rights, claims, obligations and liabilities
arising from, in connection with, or relating to, the Participation Agreement,
or any action or failure to act under the Participation Agreement or in
connection therewith.

      

      Section
3.                        Representations of the
Parties. Each Party represents to the other Party that: (a) it is duly
organized and validly existing under the laws of the jurisdiction of its
incorporation and in good standing; (b) it has power to execute and perform its
obligations under this Agreement and has taken all necessary action to authorize
such execution, delivery and performance; (c) such execution, delivery and
performance do not violate or conflict with any law applicable to it, any
provision of its charter or bylaws, any order or judgment of any court or other
agency of government applicable to it or any of its assets or any contractual
restriction binding on or affecting it or any of its assets; (d) all
governmental and other consents that are required to have been obtained by it
with respect to this Agreement have been obtained and are in full force and
effect and all conditions of any such consents have been complied with; and (e)
its obligations
under this Agreement constitute its legal, valid and binding obligations,
enforceable in accordance with their respective terms.

       

      
        
          
          

        

        
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      Section
4.                        Press Release & Form
8-K. Black Oak acknowledges that Legacy is required to file a Current
Report on Form 8-K, of copy of which has been reviewed and approved by Black
Oak, with the Securities and Exchange Commission announcing the termination of
the Participation Agreement. Other than such Form 8-K, neither Party shall have
the right to make a public announcement regarding this Agreement and the
termination of the Participation Agreement unless such announcement will be made
in writing and the form and contents thereof have been previously approved in
writing by the other Party.

      

      Section
5.                        Entire Agreement.
This Agreement supersedes all prior discussions, representations, warranties and
agreements, both written and oral, among the Parties with respect to the subject
matter hereof, and contains the sole and entire agreement among the Parties with
respect to the subject matter hereof.  No prior drafts of this
Agreement and no words or phrases from any such prior drafts shall be admissible
into evidence in any action, suit or other proceeding involving this
Agreement.  Additionally, for the avoidance of doubt and without
limiting the foregoing, it is the intention of the parties hereto that this
Agreement supersede any provision or condition in the Participation Agreement
itself, including but not limited to Article 8 thereof, that would otherwise
operate to limit or restrict the ability of the parties hereto to terminate the
Participation Agreement.

      

      Section
6.                        Severability. If any
provision of this Agreement is held to be illegal, invalid or unenforceable
under any present or future laws, and if the rights or obligations of any Party
hereto under this Agreement will not be materially and adversely affected
thereby, (a) such provision will be fully severable, (b) this Agreement will be
construed and enforced as if such illegal, invalid or unenforceable provision
had never comprised a part hereof, and (c) the remaining provisions of this
Agreement will remain in full force and effect and will not be affected by the
illegal, invalid or unenforceable provision or by its severance from this
Agreement.

      

      Section
7.                        Governing Law. This
Agreement shall be interpreted under the laws of the State of Texas without
reference to Texas conflicts of law provisions.

      

      Section
8.                        Further
Assurances.  Each Party hereto shall, from time to time, do and
perform such further acts and execute and deliver such further instruments,
assignments and documents as may be required or reasonably requested by any
other Party to establish, maintain or protect the respective rights and remedies
of the Parties hereto and to carry out and effect the intentions and purposes of
this Agreement.

      

      Section
9.                        Binding
Effect.  All of the terms and provisions of this Agreement will
be binding upon and inure to the use and benefit of each Party and its
respective heirs, successors, legal representatives.

       

      
        
          
          

        

        
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      Section
10.                        Counterparts.  This
Agreement may be executed in multiple counterparts, each of which will be deemed
an original but all of which will constitute but one Agreement.

      

      

      IN WITNESS WHEREOF, the Parties have
caused this Mutual Termination Agreement and Release to be duly executed as of
the date first above written by their respective officers duly
authorized.

       

      
        
          	 	BLACK OAK RESOURCES,
      LLC	 
	 	 	 	 
	
                   

                	
                  By:
      

                	/s/ Michael
      E. Black	 
	 	 	Michael
      E. Black 	 
	 	 	President	 
	 	 	 	 

        

      

      
        
          	 	
                  LEGACY RESERVES OPERATING
      LP

                   

                  By:   Legacy Reserves Operating GP,
      LLC its

                  General Partner

                	 
	 	 	 	 
	
                   

                	
                  By:
      

                	/s/ Steven
      H. Pruett	 
	 	 	Steven
      H. Pruett 	 
	 	 	President
      and Chief Financial Officerexhibit10_48.htm

    The
confidential portions of this exhibit have been omitted and filed separately
with the Securities and Exchange Commission pursuant to a confidential treatment
request in accordance with Rule 24b-2 of the Securities Exchange Act of 1934, as
amended. REDACTED PORTIONS OF THIS EXHIBIT ARE INDICATED BY AN
[###].

     

    Amendment
and Addendum

     

    to

     

    Know-How
and Trademark License Agreement

     

    This
Amendment and Addendum to know-how and trademark license Agreement (the
“Amendment”)
is entered into as of December 4, 2008 (the “Amendment
Date”) by and between, on the one hand, OMP,
Inc., a
Delaware corporation (“OMP”);
and, on the other hand, Rohto
Pharmaceutical Co., LTD., a Japanese company having its principal place
of business at 1-8-1, Tatsumi-nishi, Ikuno-ku, Osaka 544-8666, Japan (“Rohto”).
All capitalized terms used but not otherwise defined herein shall have the
meanings assigned under the Know-How and Trademark License Agreement between OMP
and Rohto dated as of September 13, 2002 (the “Original
Agreement” and, collectively with, and as amended by, this Amendment, the
“Agreement”).

     

    Whereas,
pursuant to Section 14.6  of the Original Agreement, OMP and
Rohto may amend or modify the Original Agreement by written instrument executed
by both parties;

     

    Whereas,
OMP and Rohto wish to set forth the terms and conditions applicable to
additional licenses and joint development projects between the parties;
and

     

    Whereas,
OMP and Rohto desire to amend the Original Agreement in certain other respects
as it relates to ongoing communications, expansion of the Territory, marketing
plans and to extension of the term of the Original Agreement.

     

    Now,
Therefore, in consideration of the foregoing recitals and the mutual
promises hereinafter set forth, and for other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the parties agree
as follows:

     

    1. Amendment
To Defined Terms.

     

    (a)           “Term” as defined in Section
11.1 shall be amended to read: “...this Agreement shall continue for a term of
nine (9) years from the Amendment Date and end on December 4,
2017.”

     

    (b)           “Territory” means the country
of Japan; provided, however, that the Territory may be expanded to include other
countries subject to a separate written agreement to be developed between OMP
and Rohto at a future date.

     

    (c)           “Licensed Products” shall mean:
(a) with respect to products developed by Rohto prior to the date of this
Amendment, those skin care products listed on Exhibit A-1 that conform to the
Specifications (“Prior Licensed
Rohto Products”), (b) with respect to products developed by Rohto after
the date of this Amendment, those skin products listed on Exhibit A-2 from time
to time  that conform to the Specifications to be developed from time
to time (“Future

     

    
      
        
           

        

        
          Final
Execution Copy – December 3, 2008

        

      

      
        
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    Rohto Licensed
Products”), (c) with respect to products developed by OMP after the date
of this Amendment, those skin care products to be listed on Exhibit A-3 from
time to time (excluding Elastin based products covered by a separate agreement)
that conform to the Specifications to be developed from time to time (“OMP Developed
Products”); and (d) with respect to products jointly developed by the
parties from time to time after the date of this Amendment, those skin care
products listed on Exhibit A-4 that conform to the specifications jointly
developed from time to time (“Jointly Developed
Products”).

     

    (d)           “Specifications” shall be
amended to refer to the specifications for Licensed Products set forth on
Exhibits A-1, A-2, A-3 or A-4, as applicable, and as may be revised and amended
from time to time. 

     

    (e) “Channel” shall mean consumer
sales and distribution channels in which Rohto is currently engaged:
specifically the Drug Stores and Variety Stores Channel, including mail-order
and internet sales activities that support such Drug Stores and Variety Stores
Channel, as well as the Department Stores Channel, including mail-order and
internet sales activities that support such Department Stores Channel. 
Nothwithstanding the foregoing, extension into the Department Store Channel (and
any other channel) and retention of rights to sell and distribute into such
channels are conditioned up completion of a joint product/channel development
plan and the achievement of the goals and objectives set forth in such plan as
more fully described in Section 2(e) below.  Unless agreed to in
writing by both parties separately, the Channel shall not include physician,
medical spas, aesthetic spas and salon, or such similar outlets wherein products
are sold in combination with or in addition to, aesthetic procedures or services
and/or medical procedures.

     

    2. Section
Amendments. 

     

    (a) Section 2.1 - License to
Know-How.  The term Licensed Products in Section 2.1 of the
Original Agreement shall be amended to say “the Prior Licensed Rohto Products,
the Future Rohto Licensed Products and the Jointly Developed
Products.”

     

    (b) Section 2.5 – License for OMP
Developed Products and Jointly Developed Products.   A new
Section 2.5 shall be added to the Original Agreement and read in full as
follows:

     

    “Subject
to the terms and conditions of this Agreement, OMP herby grants to Rohto the
exclusive, royalty-bearing license to sell and/or manufacture the OMP Developed
Products and the Jointly Developed Products on terms to be mutually agreed upon
in writing, and thereafter to market, sell and distribute such OMP Developed
Products and/or Jointly Developed Products in the Territory.”

     

    (c) Section 4.2 – Improvements and New
Products.  The term “Licensed
Products” in Section 4.2 of the Original Agreement shall be amended to read the
“Prior Licensed Rohto Products and the Future Licensed Rohto Products.”

     

    (d) Section 6.3 – Marketing Reports/Brand
Protection.  Section 6.3 of the Original Agreement shall be
amended to read in full as follows:

     

    
      
        
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        Final Execution Copy – December 3, 2008

      

      
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    “Rohto
agrees to share with OMP, to the extent available and at least once a year,
pertinent written information regarding the market for Licensed Products in the
Territory and each specific Channel.  The parties also agree to meet
at least twice a year at times and locations to be mutually agreed upon to
discuss Rohto’s marketing efforts and additional OMP marketing assistance that
may be necessary.  These meetings and information shall include
written information regarding consumer research, technical research and clinical
results, pricing, share of market, out-of-stock experience, volumes,
distribution efforts (excluding any Rohto trade secrets), development plans for
shared messaging, product promotion and co-marketing efforts, and additional
training opportunities all of which are designed to position Obagi as the
leading, premium, brand of scientifically-based, skin care
products.

     

    In
addition, the parties agree that it is in their best interest to avoid brand
confusion in the Japanese marketplace.  Consequently, OMP and Rohto
agree to coordinate and protect the “Obagi” brand image to avoid market
confusion.  In this regard, OMP will meet with all Japanese OMP
partners on at least a quarterly basis to collaborate on branding, messaging and
imaging.”

     

    (e) Section 6.5 – Joint Product and
Channel Development Opportunities.  A new Section 6.5 shall be
added to the Original Agreement and read in full as follows:

     

    “The
parties agree to expeditiously work together to develop and target to produce a
mutually agreeable initial strategic plan within one hundred and eighty (180)
days following execution of this Agreement.  The plan will focus on
the successful positioning of the Obagi brand to become the leading, premium,
scientifically-based, skin care products in Japan.  The key elements
the plan should include timelines related to one or more of the following, not
all of which may be pursued: (i) new product schedule, (ii) joint product
development opportunities and (iii) new channel penetration strategies. Such
plan will include, among other things, comprehensive product development and
marketing plans, including sales volume expectations, pricing strategies,
image/brand enhancement up-market and a reasonable time frame for achieving and
evaluating success.  The plan will also identify additional resources
necessary to effectively market and sell the Obagi brand products into new
domestic market segments.”

     

    (f) Article 8.  Article
8 of the Original Agreement shall be retitled “Compensation for use of
Trademarks, Licensed Products and Jointly Developed Products.”

     

    (g) Section 8.1 – Royalty
Rates.  Section 8.1 of the Original Agreement shall be retitled
“Royalty Rates” and shall be amended to read in full as follows:

     

    “In
consideration for the licenses and rights granted hereunder:

    

                                    
(a) Rohto shall pay to OMP a royalty equal to [ 1 ]* of Net Sales of Prior Licensed Rohto Products
manufactured, sold or distributed by Rohto and its Affiliates for the three (3)
year period from September 13. 2002 through

      

        

      

        
        *
Subject to confidential treatment request

      

      
        
          Final Execution Copy – December 3, 2008   

        

        
          
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              September
      12, 2005.  Thereafter, such royalty amount shall decrease by [ 2
      ]* per year for nine consecutive years,
      until the royalty payable to OMP reaches [ 3 ]*
      of Net Sales of the Prior Licensed Rohto Products, at which time the
      royalty shall no longer decrease;

            

    

     

    
      	
              (b)  

            	
              Rohto
      shall pay to OMP a royalty equal to the then applicable royalty rate
      subject to Section (g) (a) above of Net Sales of Future Rohto
      Licensed  Products manufactured, sold or distributed by Rohto
      and its Affiliates.

            

    

     

    
      	
              (c)  

            	
               Rohto
      shall pay to OMP a royalty equal to a minimum of [ 4 ]
      * of Net Sales of OMP Developed Products manufactured, and/or sold
      or distributed by Rohto and its Affiliates for the first year, (12 month
      period) from the date Rohto begins the sale or distribution of such
      products.  Thereafter, such royalty amount shall decrease by [ 5
      ]*
      per year until the royalty payable to OMP reaches [ 6 ]*
      of Net Sales of the OMP Developed Products, at which time the royalty
      shall no longer decrease;

            

    

     

    
      	
              (d)  

            	
              Rohto
      shall pay to OMP a royalty equal to an amount negotiated in good faith
      between the parties for all Jointly Developed
  Products;

            

    

     

    
      	
              (e)  

            	
              OMP
      shall pay to Rohto a royalty equal to a minimum of [ 7 ]*
      of Net Sales of Rohto Licensed Products manufactured, and/or sold or
      distributed by OMP and its Affiliates for the first year, (12 month
      period) from the date OMP begins the sale or distribution of such
      products.  Thereafter, such royalty amount shall decrease by [ 8
      ]*
      per year until the royalty payable to Rohto reaches [ 9 ]*
      of Net Sales of the Rohto Developed Products, at which time the royalty
      shall no longer decrease; and

            

    

     

    
      	
              (f)  

            	
              The
      remainder of Section 8.1 shall be deleted in its
  entirety.

            

    

     

     (h)           Section 14.4 –
Notices.  The notice provision as it applies to OMP shall be
amended to delete “Curtis Cluff.”

     

    3. Miscellaneous.  Except as specifically
amended by this Amendment, the terms and conditions of the Original Agreement
shall remain in full force and effect without amendment or
alteration.  Notwithstanding the foregoing, to the extent the terms of
this Amendment shall make the plain language of the meaning of other Sections in
the Original Agreement illogical, such sections shall be amended to incorporate
and/or replace the definitions in the Original Agreement with the appropriate
definitions in this Amendment .  This Amendment may be executed in
counterparts, each of which shall be deemed an original document, and all of
which, together with this writing, shall be deemed one instrument.

     

    

      

    

      
      * Subject
to confidential treatment request.

    

    
      
        
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        Final Execution Copy – December 3, 2008

      

      
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    In Witness
Whereof, the parties hereto have executed this Amendment in duplicate
originals by their duly authorized officers or representatives.

     

    
      	
              OMP,
      Inc.

            	
              Rohto
      Pharmaceutical Co., LTD.

            

    

    
      
        	 	 	 	 	 
	
                /s/
      STEVE CARLSON

              	 	 	
                /s/
      KUNIO YAMADA

              	 
	
                Name
      Steve Carlson

              	 	 	
                Name Kunio
      Yamada

              	 
	
                Title President
      & Chief Executive Officer

              	 	 	
                Title
      President & Chief Executive Officer

              	 

      

    

     

     

    
      
        
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        Final Execution Copy – December 3, 2008 

      

      
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    EXHIBIT
A-1

     

    Prior Licensed Rohto
Products and Specifications

     

     

     

     

    
      
        
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        Final Execution Copy – December 3, 2008 

      

      
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    EXHIBIT
A-2

     

    Future Licensed Rohto
Products and Specifications

     

     

     

    
      
        
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        Final Execution Copy – December 3, 2008 

      

      
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    EXHIBIT
A-3

     

    OMP Developed Products and
Specifications

     

    
 

    
      
        
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        Final Execution Copy – December 3, 2008

      

      
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    EXHIBIT
A-4

     

    Jointly Developed Products
and Specifications

     

     

    
 

    
      
        
                                                                           .

          

          

        

        Final Execution Copy – December 3,
2008   

      

      
        9

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