Document:

cweieastpermianrewardplan

Exhibit 10.2
CWEI EAST PERMIAN REWARD PLAN

ARTICLE I
Purpose of Plan

1.1    Purpose of Plan.  The purpose of the Reward Plan (the “Plan”) is to reward eligible employees and other service providers  listed on Exhibit A of Clayton Williams Energy, Inc., and its wholly-owned affiliates (the “Employer”) for continued quality service to the Employer, and to encourage retention of those employees and service providers, by providing them the opportunity to receive bonus payments that are based on profits derived from a portion of the Employer’s working interest in certain wells drilled by Employer in the area described on Exhibit B.

ARTICLE II
Definitions and Construction

2.1    Definitions.        Where the following words and phases appear in the Plan, each will have the respective meaning set forth below, unless the context clearly indicated to the contrary.

		
	(a)
	Acquisition Costs:     The portion of any costs or expenses incurred by the Employer that are attributable to acquiring the Well Interests.

		
	(b)
	Affiliate:    An “Affiliate” of any specified person means any other person, directly or indirectly, controlling or controlled by or under direct or indirect common control with such specified person.  For the purposes of this definition, “control” when used with respect to any person means the power to direct the management and policies of such person, directly or indirectly, through the ownership of voting securities, by contract or otherwise, and the terms “controlling” and “controlled” have meanings correlative to the foregoing.

		
	(c)
	Agreed Rate:        2.74% per annum, compounded quarterly.

		
	(d)
	Bonus Award:    The right granted to a Participant to receive payments, if any, under the terms and conditions of the Plan.

		
	(e)
	Bonus Percentage:    The designated percentage set forth in each Participant’s Notice of Bonus Award that is used to calculate the amount of payments, if any, that such Participant may be entitled to under the Plan.

		
	(f)
	Change of Control.    A “Change of Control” will be deemed to occur as of (i) the date  any “person” or “group” of related persons (as such terms are used in Sections 13(d) and 14(d) of the Exchange Act), other than one or more Permitted Holders, is or becomes the beneficial owner (as defined in Rules 13d-3 and 13d-5 under the Exchange Act, except that such person or group shall be deemed to have “beneficial ownership” of all shares that any such person or group has the right to 

acquire, whether such right is exercisable immediately or only after the passage of time), directly or indirectly, of more than 35% of the total voting power of the Voting Stock of the Company (or its successor by merger, consolidation or purchase of all or substantially all of its assets) (for the purposes of this clause, such person or group shall be deemed to beneficially own any Voting Stock of the Company held by a parent entity,  if such person or group “beneficially owns” (as defined above), directly or indirectly, more than 35% of the voting power of such parent entity) or (ii) the date of death of Clayton W. Williams, Jr.

		
	(g)
	Code:        The Internal Revenue Code of 1986, as amended from time to time.

		
	(h)
	Committee:     The Compensation Committee of the Company’s board of directors.

		
	(i)
	Company:    Clayton Williams Energy, Inc.

		
	(j)
	Effective Date:    January 1, 2007.

		
	(k)
	Eligible Person:    Each person who is employed by Employer or who performs services for the Employer as a consultant or independent contractor.

		
	(l)
	Employer:    The Company and its wholly-owned Affiliates.

		
	(m)
	Exchange Act:    The Securities Exchange Act of 1934, as amended.

		
	(n)
	Full Vesting Date:    August 1, 2015.

		
	(o)
	Notice of Bonus Award:    The notice provided to each Participant pursuant to Section 3.1, setting forth, among other things, the Participant’s Bonus Percentage under the Plan.

		
	(p)
	Participant:    Each Eligible Person who has been granted a Bonus Award under the Plan and participates in the Plan in accordance with the provisions of Article III.

		
	(q)
	Payment Date:    With respect to each Plan Quarter, the date that payment, if any, is made to eligible Participants pursuant to Article V.

		
	(r)
	Permitted Assignee:    Each Participant’s spouse, parents, or natural or adoptive lineal descendants, or one or more trusts or partnerships established exclusively for the benefit of each Participant’s spouse, parents or natural or adoptive lineal descendants.

		
	(s)
	Permitted Holder:    Clayton W. Williams, Jr. and any Affiliate or Related Person thereof.

		
	(t)
	Plan:    This CWEI East Permian Reward Plan, as amended from time to time.

		
	(u)
	Plan Quarter:       Each calendar quarter within a Plan Year.

		
	(v)
	Plan Year:    Each twelve consecutive month period beginning each January 1.

		
	(w)
	Quarterly Bonus Amount:    This amount, if any, for each Participant with respect to each Plan Quarter that is calculated in accordance with the provisions of Section 4.3.

		
	(x)
	Quarterly Bonus Pool:    The bonus pool, if any, determined as of the end of each Plan Quarter in accordance with the provisions of Article IV.

		
	(y)
	Related Person:    With respect to any Permitted Holder, a “Related Person” means:

(1)    any controlling stockholder or a majority (or more) owned subsidiary of such Permitted Holder or, in the case of an individual, any spouse, family member (including adopted children), heir or descendant of such Permitted Holder, any trust created for the benefit of such individual or such individual’s estate, executor, administrator, committee or beneficiaries; or

(2)    any trust, corporation, partnership or other entity, the beneficiaries, stockholders, owners or persons beneficially owning a majority (or more) controlling interest of which consist of such Permitted Holder and/or such other persons referred to in the immediately preceding clause (1).

		
	(z)
	Sale Transaction:    A “Sale Transaction” will be deemed to occur on (1) any sale, exchange, or other disposition to a third party (excluding any Affiliate of the Employer) of (i) the Employer’s Well Interest or of the Employer’s rights or benefits with respect to the Well Interest, or (ii) all or substantially all of the Company’s assets, or (2) a Change of Control.

		
	(aa)
	Voting Stock:        All classes of capital stock of a corporation then outstanding and normally entitled to vote in the election of directors.

		
	(bb)
	Well:    A well drilled by the Employer in the area described on Exhibit B, provided that the well has a spud date on or after the Effective Date.

		
	(cc)
	Well Costs:    The Employer’s share of costs pursuant to any operating agreement for the drilling, completing, equipping, deepening, or sidetracking the Well, including, without limitation: (i) the costs of surveying and staking the Well, the costs of any surface damages, and the costs of clearing, coring, testing, logging, and evaluating the Well; (ii) the costs of casing, cement, and cement services for the Well; (iii) the cost of plugging and abandoning the Well (including standard and customary radiation activities associated therewith), if it is determined that the Well would not produce in commercial  quantities and 

should be abandoned; (iv) all direct charges and overhead chargeable to the Employer with respect to the Well under any applicable operating agreement until such time as all operations are carried out as required by applicable regulations and sound engineering practices to make such Well ready for production, including such charges and overhead attributable to the installation and testing of wellhead equipment, or costs to plug and abandon a dry hole; (v) all costs incurred by the Employer in recompleting or plugging back the Well; (vi)  all costs incurred by the Employer in reworking the Well if the rework is covered by an authority for expenditure under the applicable operating agreement; (vii) all costs incurred by the Employer in locating, drilling, completing, equipping, deepening, or sidetracking any enhanced recovery producer or injector Well (including the costs of all necessary surface equipment such as steam generators, compressors, water treating facilities, injection pumps, flow lines and steam lines); and (viii) the costs of constructing production facilities, pipelines and other facilities necessary to develop property acquired pursuant to the terms  hereof and produce, collect, store, treat, deliver, market, sell or otherwise dispose of oil, gas, and other hydrocarbons and minerals therefrom; provided, that Well Costs will not include any Acquisition Costs.

		
	(dd)
	Well Interest:        10% of the Employer’s working interest in each Well.

		
	(ee)
	Well Interest Profits:    As of the applicable measurement date, an amount equal to the cumulative cash proceeds earned by the Employer with respect to all Well Interests, minus the sum of (i) Well Costs and other expenses incurred by the Employer with respect to such Well Interests, plus (ii) an internal rate of return on such costs equal to the Agreed Rate.

2.2    Number and Gender. The masculine gender, when used herein, includes the feminine gender, and, unless context indicates otherwise, the singular includes the plural and the plural the singular.

2.3    Headings.  The headings of Articles and Section herein are included solely for convenience, and if there is any conflict between headings and the text of the Plan, the text will control.  All references to Sections and Articles are to this Plan unless otherwise indicated.

ARTICLE III
Participation

3.1    Selection of Participants and Grant of Bonus Awards. The Committee, in its sole discretion, may select which, if any, Eligible Persons will be granted Bonus Awards and become Participants in the Plan. Each Participant's Bonus Percentage will be determined by, and in the sole discretion of, the Committee. Each Bonus Award granted to a Participant will be evidenced by a Notice of Bonus Award that will specify (a) the Participant's Bonus Percentage, (b) the Participant's effective date of Plan participation, and (c) such other terms and provisions as the Committee may determine in its sole discretion.

3.2    Commencement of Participation. Each Eligible Person will become a Participant upon the effective date of Plan participation specified in his Notice of Bonus Award, provided that such Eligible Person returns to the Company an executed Notice of Bonus Award. Once an Eligible Person becomes a Participant in the Plan, he will remain a Participant until his Plan participation terminates in accordance with Section 3.3.

3.3    Termination of Participation.     A Participant's Plan participation will terminate on the earliest to occur of the following:

		
	(a)
	The date on which such Participant terminates employment or service with the Employer for any reason, but only if such termination date occurs prior to the Full Vesting Date; provided, however, that with respect to a Participant who is a consultant or independent contractor and who is not actively performing services for the Employer, such Participant will, for purposes of the Plan, be deemed to remain in the service of the Employer unless and until the Committee, in its sole discretion, determines that such service relationship has been terminated;

		
	(b)
	The date on which such Participant forfeits his Bonus Award after the Full Vesting Date pursuant to Section 6.2;

		
	(c)
	The date of death of such Participant if there is no Permitted Assignee pursuant to Article VII; or

		
	(d)
	The date of termination of the Plan or such Participant's Bonus Award pursuant to Article X.

From and after the date a person's Plan participation terminates, such person will not be entitled to receive any payment under the Plan, pursuant to a Bonus Award or otherwise.

ARTICLE IV
Quarterly Bonus Pool and Quarterly Bonus Amounts

4.1     Calculation of Quarterly Bonus Pool.     As soon as administratively practicable after the last day of each Plan Quarter, the Committee will calculate the Quarterly Bonus Pool for such Plan Quarter in the following manner:

		
	(a)
	If Well Interest Profits, determined as of the last day of the applicable Plan Quarter, equal a negative amount or zero, the Quarterly Bonus Pool for such Plan Quarter will be deemed to be equal to zero.

		
	(b)
	If Well Interest Profits, determined as of the last day of the applicable Plan Quarter, equal an amount greater than zero, the Quarterly Bonus Pool for such Plan Quarter will be an amount equal to (i) Well Interest Profits determined as of the last day of such Plan Quarter, minus (ii) the sum of the Quarterly Bonus Pools for all preceding Plan Quarters (taking into account that a Quarterly Bonus Pool will be deemed to be equal to zero if it would otherwise be a negative amount).

4.2    Calculation of Quarterly Bonus Pool in the Event of a Sale Transaction. In the event a Sale Transaction occurs with respect to a Plan Quarter, the Quarterly Bonus Pool for such Plan Quarter will be calculated in the manner described in Section 4.1, except that Well Interest Profits will be deemed to include the amount of net sale proceeds from the Sale Transaction that the Committee, using any reasonable method it deems appropriate, determines is attributable to the Well Interest. In the event that the Sale Transaction does not result in the receipt of any net sale proceeds (for example, a Change of Control), the Committee will determine a deemed amount of net sale proceeds attributable to the Well Interest, taking into account the relevant facts and circumstances and using any reasonable method it deems appropriate.

4.3    Calculation of Participants' Quarterly Bonus Amounts. As soon as administratively practicable after the last day of each Plan Quarter, the Committee will calculate each Participant's Quarterly Bonus Amount for such Plan Quarter, which will be an amount equal to the product of the Participant's Bonus Percentage multiplied by the Quarterly Bonus Pool for such Plan Quarter (taking into account that a Quarterly Bonus Pool will be deemed to be equal to zero if it would otherwise be a negative amount).

ARTICLE V
Payment of Quarterly Bonus Amounts

5.1 Payment of Quarterly Bonus Amounts. With respect to each Plan Quarter, each Participant whose Plan participation has not terminated as of the Payment Date for such Plan Quarter will be entitled to receive a payment, if any, equal to one hundred percent (100%) of his Quarterly Bonus Amount for such Plan Quarter. Such payment will be made by the Employer in cash in a single sum as soon as administratively practicable following the last day of the applicable Plan Quarter, but in no event later than two and one-half (2 1/2) months following the last day of the Plan Year in which such Plan Quarter ends.

ARTICLE VI
Forfeiture of Bonus Awards

6.1    Forfeiture of Bonus Award Prior to Full Vesting Date. If a Participant's Plan participation terminates in accordance with Section 3.3 prior to the Full Vesting Date, such Participant's Bonus Award will be forfeited as of the date that his Plan participation terminates. By way of example and not limitation, a Participant who terminates employment with the Employer prior to the Full Vesting Date will forfeit his Bonus Award as of the date of such termination of employment.

6.2    Forfeiture of Vested Bonus Award for Cause. Each Participant will forfeit his Bonus Award if such Participant:

		
	(a)
	with respect to time periods during which such Participant is employed by or performing (or deemed to be performing) services for the Employer, (1) materially breaches the terms of his employment agreement or other services agreement with the Employer or any of its Affiliates, (2) materially breaches the terms of any corporate policy or code of conduct established by the Employer or 

any of its Affiliates, or (3) the Committee, in its sole discretion, determines that such Participant has engaged in gross negligence or willful misconduct in the performance of services for the Employer or any of its Affiliates, including, without limitation, a willful refusal without proper legal reason to perform his duties and responsibilities, or

		
	(b)
	at any time, including time periods during which such Participant is not employed by or performing (or deemed to be performing) services for the Employer, (i) admits or enters a plea of no contest to or is convicted of a felony against the Employer or any of its Affiliates, (ii) materially breaches any provision of any agreement with the Employer or any of its Affiliates, or (iii) engages in dishonest or fraudulent conduct with respect to the business, reputation or affairs of the Employer or any of its Affiliates.

The forfeiture provisions of this Section 6.2 will apply regardless of whether a Participant's employment or service relationship with the Employer was terminated as a result of conduct described in subsections (a) or (b) above, and regardless of whether such Participant continued Plan participation through the Full Vesting Date.

6.3    Forfeiture of Bonus Award on Account of Participant's Death if No Permitted Assignee. A Participant will forfeit his Bonus Award upon the Participant's date of death if the Committee determines that the deceased Participant's Bonus Award was not transferred to a Permitted Assignee pursuant to Article VII or that no Permitted Assignee exists.

6.4    Consequences of Forfeiture of Bonus Award. From and after the date a Participant forfeits his Bonus Award, such person will not be entitled to receive any payment under the Plan pursuant to a Bonus Award or otherwise.

ARTICLE VII
Permitted Assignees of Vested Bonus Award Upon Participant's Death

7.1    Permitted Assignees of Vested Bonus Award Upon Participant's Death.

		
	(a)
	On or after the Full Vesting Date, all or any portion of each Participant's Bonus Award may be transferred, by operation of will or applicable law, to a Permitted Assignee upon such Participant's death.

		
	(b)
	Each Permitted Assignee who is entitled to receive payments from the Plan under this Section 7.1, if any, will receive and hold only those rights and interests, and be subject to the same terms and conditions that would apply if such Permitted Assignee were a Participant in the Plan, including, without limitation, the restrictions on the transfer of a Participant's Bonus Award. As a condition to receipt of any rights and interests under this Section 7.1, a Permitted Assignee may be required to provide the Committee with any information necessary for the Committee to effect a transfer of such rights and interests, and to execute and deliver a written agreement with the Company agreeing to be bound by the terms of the Plan. Notwithstanding whether a Permitted Assignee has executed and 

delivered such an agreement, the acceptance of distributions from the Plan by a Permitted Assignee will be deemed to be an agreement by such Permitted Assignee to be bound by the Plan's terms.

		
	(c )
	To the extent that a payment is made under the Plan to an individual who the Committee determines in good faith is a Permitted Assignee with respect to a deceased Participant's Bonus Award, any and all obligations with respect to such payment will be discharged and neither the Plan nor the Employer will have any obligation to another person claiming to be the Participant's Permitted Assignee with respect to such payment, notwithstanding any subsequent determination by the Committee, a court of law, or otherwise, that such payment was made based on a mistake of fact or a mistake of law.

		
	(d)
	In the event that there is a dispute or uncertainty regarding the identity of the Permitted Assignee(s) to whom a deceased Participant's Bonus Award may have been transferred, the Committee will be permitted to retain any payment that would otherwise be payable with respect to such Bonus Award until the identity of such Permitted Assignee(s) can be determined. The amount of any such retained payment will be credited with interest at the Agreed Rate from the time such amount would otherwise be payable until the time such amount is paid. In addition, in the case of any bona fide dispute between parties concerning the right to a payment under the Plan, the Committee may, in its discretion, file an interpleader action in a court of competent jurisdiction, naming the parties to the dispute and, if applicable, may pay the disputed amount into the court to be distributed in accordance with the court's decision or take such other action as it determines, in its sole discretion, constitutes an appropriate way to resolve or otherwise settle the dispute.

ARTICLE VIII
Administration

8.1    Committee Administration. The Plan will be administered by the Committee.

8.2    Meetings.     The Committee will hold meetings upon such notice and at such time and place as it may from time to time determine. Notice to a member will not be required if waived in writing by that member. A majority of the members of the Committee duly appointed will constitute a quorum for the transaction of business. All resolutions or other actions taken by the Committee at any meeting where a quorum is present will be by vote of a majority of those present at such meeting and entitled to vote. Resolutions may be adopted or other action taken without a meeting upon written consent signed by all of the members of the Committee. Members of the Committee may participate in meetings by means of telephone conference or similar communication whereby all persons participating in the meeting can hear and speak to each other.

8.3    Discretion to Interpret Plan. The Committee has absolute discretion to construe any and all provisions of the Plan, including, but not limited to, the discretion to resolve 

ambiguities, inconsistencies, or omissions conclusively. The decisions of the Committee upon all matters within the scope of its authority will be binding and conclusive upon all persons.

8.4    Powers and Duties. In addition to the powers described in Section 8.3 and all other powers specifically granted under the Plan, the Committee will have all powers necessary or proper to administer the Plan and to discharge its duties under the Plan, including, but not limited to, the following powers:

		
	(a)
	To make and enforce such rules, regulations, and procedures as it may deem necessary or proper for the orderly and efficient administration of the Plan;

		
	(b)
	To enter into an agreement with any individual or entity to perform services with respect to the Plan;

		
	( c)
	In its discretion, to interpret and decide all matters of fact in determining the amount of and authorizing payments with respect to Bonus Awards under the Plan, its interpretation and decision thereof to be final and conclusive on all persons claiming a right with respect to such Bonus Awards;

		
	(d)
	In its discretion, to determine eligibility under the terms of the Plan, its determination thereof to be final and conclusive on all persons;

		
	(e)
	To prepare and distribute information explaining the Plan;

		
	(f)
	To obtain from the Employer and Participants (or the assignee of a Participant) such information as may be necessary for the proper administration of the Plan;

		
	(g)
	To sue or cause suit to be brought in the name of the Plan; and

		
	(h)
	To establish a claims procedure and any other procedures for implementation of the Plan.

8.5    Expenses. The Employer will pay the reasonable expenses incident to the administration of the Plan, including, but not limited to, the compensation of any legal counsel, advisors, or other technical or clerical assistance as may be required; the payment of any bond or security required by applicable law; and any other expenses incidental to the operation of the Plan that the Committee determines are proper.

8.6    Reliance on Reports, Certificates, and Participant Information. The Committee is entitled to rely conclusively upon all tables, valuations, certificates, opinions, and reports furnished by an actuary, accountant, controller, counsel, insurance company, or other person who is employed or engaged for such purposes. Moreover, the Committee will be entitled to rely upon information furnished to the Committee or the Employer by a Participant (or a Permitted Assignee), including, but not limited to, such person's current mailing address.

8.7    Right to Delegate. The Committee, in its sole discretion, may delegate to one or more employees or agents of the Employer its day-to-day ministerial duties and powers (but only its day-to-day ministerial duties and powers) under the Plan.

8.8    Indemnification. The Company will indemnify and hold harmless each member of the Committee, and each employee or agent of the Employer who is a delegate of the Committee, against any and all expenses and liabilities arising out of such individual's administrative functions or other responsibilities, including, but not limited to, any expenses and liabilities that are caused by or result from an act or omission constituting the negligence of such individual in the performance of such functions or responsibilities, but excluding expenses and liabilities arising out of such individual's own gross negligence or willful misconduct. Expenses against which such person will be indemnified hereunder include, but are not limited to, the amounts of any settlement, judgment, costs, counsel fees, and related charges reasonably incurred in connection with a claim asserted or a proceeding brought. Notwithstanding the foregoing provisions of this Section, this Section will not apply to, and the Company will not indemnify against, any expense that was incurred without the consent or approval of the Company, unless such consent or approval has been waived in writing by the Company.

ARTICLE IX
Nature of the Plan

9.1    Unfunded, Unsecured Plan. The Plan will constitute an unfunded, unsecured obligation of the Employer to make payments of incentive rewards to certain persons from its general assets in accordance with the Plan. Each Bonus Award granted under the Plan merely constitutes a mechanism for measuring such incentive compensation and does not constitute any property right or interest in the Company or any of its Affiliates, or in the Well or the Well Interest. Neither the establishment of the Plan, the granting of Bonus Awards, nor any other action taken in connection with the Plan will be deemed to create an escrow or trust fund of any kind.
9.2    No Rights of Participant. No Participant will have any security or other interest in any assets of the Employer or any of its Affiliates as a result of a Bonus Award. Further, no Participant will have any right to receive a property interest in the Well or the Well Interest. Participants and all persons claiming under Participants (including Permitted Assignees) will rely solely on the unsecured promise of the Employer set forth herein, and nothing in the Plan or a Notice of Bonus Award will be construed to give a Participant or anyone claiming under a Participant (including a Permitted Assignee) any right, title, interest, or claim in or to any specific asset, fund, entity, reserve, account, or property of any kind whatsoever owned by the Employer or any of its Affiliates, or in which any such entity may have an interest now or in the future, and each Participant will have the right to enforce any claim hereunder only in the same manner as a general creditor. Neither the establishment of the Plan nor the granting of any Bonus Award will create any right in any Participant to make any decision, or provide input with respect to any decision, relating to the business of the Employer or any of its Affiliates.

ARTICLE X
Amendment and Termination

10.1    Amendment of Plan. Notwithstanding any provision of any other communication, either oral or written, made by the Employer or any of its Affiliates, the Committee, or any other individual or entity to Eligible Persons or to any other individual or entity, the Company reserves the absolute and unconditional right to amend the Plan from time to time. All amendments to the Plan will be in writing, and any oral statements or representations made by the Employer or any of its Affiliates, the Committee, or any other individual or entity that alter, modify, amend, or are inconsistent with the written terms of the Plan will be invalid and unenforceable and may not be relied upon by any Eligible Person, Permitted Assignee, service provider, or other individual or entity. All amendments will be executed by such person or persons as the Company in its discretion authorizes.

10.2    Right to Terminate. Notwithstanding any provision of any other communication, either oral or written, made by the Employer or any of its Affiliates, the Committee, or any other individual or entity to any Eligible Person, Permitted Assignee, service provider, or other individual or entity, the Company reserves the absolute and unconditional right to terminate the Plan, in whole or in part, and to terminate the Bonus Awards of some or all Participants and each Permitted Assignee of such Participants, with such termination to be effective as of the date selected by the Company in its sole discretion.

10.3    Effect of Termination. In the event of a termination of the Plan or a termination of the Bonus Award with respect to one or more Participants pursuant to Section 10.2, each such affected Participant (or his Permitted Assignee(s)) will receive a final payment under the Plan reflecting such Participant's Bonus Award as of the date of such termination. The Committee will determine, in its sole discretion and using any reasonable method and manner which it deems appropriate, the final payment amount that each Participant (or his Permitted Assignee(s)) is entitled to upon such termination, taking into account, in the manner it deems appropriate, such information which is available to the Committee as of the date that it makes its determination. A final payment pursuant to this Section 10.3 will be distributed to a Participant (or his Permitted Assignee(s)) as soon as administratively practicable after such termination and in no event later than two and one-half (2 1/2) months following the last day of the Plan Year in which such termination occurs; provided, however, that, notwithstanding the foregoing to the contrary, to the extent that such termination and final payment would be subject to section 409A of the Code, such termination and final payment will be made in accordance with the applicable requirements of section 409A of the Code and the authority thereunder.

ARTICLE XI
General Provisions

11.1    No Guarantee of Employment.     Nothing contained in the Plan will grant any Eligible Person, or other individual who is an employee of the Employer or any of its Affiliates, or who otherwise performs services for the Employer or any of its Affiliates, the right to be retained in the service of the Employer or any of its Affiliates, nor will anything contained in the Plan limit in any way the right of the Employer or any of its Affiliates to discharge or terminate 

the service of any individual, including an Eligible Person, at any time, without regard to the effect such discharge or termination may have on any of such individual's rights under the Plan.

11.2    Withholding.     The Employer will at all times be entitled with respect to a payment due under the Plan: (a) to withhold, or cause to be withheld, from such payment to a Participant (or Permitted Assignee), or from any other payment to such Participant (or Permitted Assignee), an amount necessary to satisfy any and all tax withholding obligations or other deductions with respect to any wages or other payments made to a Participant (or Permitted Assignee), which arise under applicable law or are authorized by the Participant (or Permitted Assignee), and (b) to take any other action as may in its opinion be necessary to satisfy all obligations for the payment of such taxes or such other deductions.

11.3    Offset of Amounts Owed to the Employer. Whenever a Participant (or Permitted Assignee) would be otherwise due any payment pursuant to the Plan, the Employer will be entitled to deduct from such payment any amounts that the Participant (or Permitted Assignee) owes the Employer or any of its Affiliates, including, without limitation, overpayments made under the Plan to either the Participant or a Permitted Assignee, before payment of such amount to such Participant (or Permitted Assignee).
    
11.4    Agreement to be Bound by Plan.     Through the acceptance of payments pursuant to the Plan, each Participant agrees to be bound by the terms and conditions of the Plan.

11.5    Nonalienation of Benefits.

		
	(a)
	Except as provided in Section 7.1, Section 11.3, and Section 11.5(b), or as the Committee may otherwise permit, in writing, in its sole discretion, no interest in or benefit payable under the Plan will be subject in any manner to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance, or charge, and any action by a Participant to anticipate, alienate, sell, transfer, assign, pledge, encumber, or charge the same will be void and of no effect; nor will any interest in or benefit payable under the Plan be in any way subject to any legal or equitable process, including, but not limited to, garnishment, attachment, levy, seizure, or the lien of any person. This provision will be construed to provide each Participant, or other person claiming any interest or benefit in the Plan through a Participant, with the maximum protection afforded such Participant's interest in the Plan (and the benefits provided thereunder) by law against alienation, encumbrance, and any legal and equitable process, including, but not limited to, attachment, garnishment, levy, seizure, or other lien.

		
	(b)
	Notwithstanding Section 11.5(a), the Committee will comply with the terms and provisions of a "qualified domestic relations order" as defined in section 414(p) of the Code.

11.6    Unknown Whereabouts.     It will be the affirmative duty of each Participant (and Permitted Assignee) to inform the Committee of, and to keep on file with the Committee, his current mailing address. If a Participant (or Permitted Assignee) fails to inform the Committee of his current mailing address, neither the Committee, the Employer, or any Affiliate 

will be responsible for any late payment or loss of benefits or for failure of any notice to be provided or provided timely under the terms of the Plan to such Participant (or Permitted Assignee).

11.7     Code Section 409A. To the extent that the Plan is (or becomes) subject to Code section 409A, or any successor provision, as amended from time to time, the Committee may at all times interpret and construe the Plan's terms to conform and comply with the requirements of Code section 409A (or any successor provision). Further, notwithstanding any other provision of the Plan to the contrary, the Committee retains the right to amend the Plan to conform and comply with the requirements of Code section 409A (or any successor provision).

11.8    Jurisdiction. Except to the extent that any federal law applies to the Plan and preempts state law, the Plan and all actions arising out of or in connection with the Plan shall be governed by and construed, enforced, and administered according to the laws of the state of Texas, without regard to the conflict of law provisions of the State of Texas or of any other state or jurisdiction.

11.9    Severability. In case any provision of the Plan is held to be illegal, invalid, or unenforceable for any reason, such illegal, invalid, or unenforceable provision will not affect the remaining provisions of the Plan, but the Plan will be construed and enforced as if such illegal, invalid, or unenforceable provision had not been included therein.

11.10    Successors. The rights and obligations of the Company hereunder shall be binding upon and inure to the benefit of the Company and its successors and assigns.

EXECUTED this 20th day of August, 2013 to be effective the 1st day of January, 2007.

	
			
	 
	 
	Clayton Williams Energy, Inc.

	
				
	 
	 
	By:
	/s/ Mel G. Riggs

	 
	 
	 
	Mel G. Riggs

	 
	 
	 
	Executive Vice President

	 
	 
	 
	 

EXHIBIT A
Schedule of Participants

	
				
	Last
	First
	Effective Percentage

	Williams
	Clayton
	25.0000
	%

	Riggs
	Mel
	6.8063
	%

	Pollard
	Mike
	4.4438
	%

	Lyssy
	Sam
	7.6650
	%

	Pullin
	Cash
	0.9450
	%

	Ward
	Larry
	1.8900
	%

	Welborn
	Greg
	7.9875
	%

	Uzzell
	Ed
	3.9938
	%

	Maybin
	James
	0.6655
	%

	Ashley
	Stephanie
	0.6655
	%

	Madrid
	Armando
	2.5500
	%

	Newton
	Robert
	1.9125
	%

	Brock
	Danny
	1.2750
	%

	Gasser
	Ron
	6.3750
	%

	Swierc
	Matt
	3.8250
	%

	Kennedy
	John
	7.6125
	%

	Fincher
	Matt
	3.2625
	%

	Thomas
	Robert
	1.9125
	%

	Schwope
	Kathy
	1.0688
	%

	Hamilton
	Janet
	1.0688
	%

	Smith
	Mark
	0.7875
	%

	Henderson
	Cris
	0.7875
	%

	Tisdale
	Mark
	2.6625
	%

	Alford
	Danny
	1.3875
	%

	Pruitt
	Donnie
	1.1250
	%

	Jones
	Kim
	1.1250
	%

	Kelly
	Denise
	0.3000
	%

	Biggar
	McRae
	0.3000
	%

	Hardin
	Kay
	0.3000
	%

	Hollums
	Patti
	0.3000
	%

	 
	 
	 

	 
	 
	100.0000
	%

EXHIBIT B
Area

CWEI East Permian Reward Plan

All of Glasscock and Sterling Counties of Texas.ex10-1firstamendcreditagr.htm

  

  

  

Exhibit 10.1

 

 

FIRST AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT

THIS FIRST AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT (this “Amendment”) dated as of August 19, 2013, by and among HOME PROPERTIES, L.P., a New York limited partnership (the “Borrower”), HOME PROPERTIES, INC., a Maryland corporation (the “Company”), EACH OF THE LENDERS PARTY HERETO, and MANUFACTURERS AND TRADERS TRUST COMPANY, as Administrative Agent (the “Administrative Agent”) for the Lenders.

WHEREAS, the Borrower, the Company, the Lenders and the Administrative Agent have entered into that certain Amended and Restated Credit Agreement dated as of December 9, 2011 (as amended and in effect immediately prior to the effectiveness of this Amendment, the “Credit Agreement”); and

WHEREAS, the Borrower, the Lenders and the Administrative Agent have agreed to amend certain provisions of the Credit Agreement, including increasing the aggregate amount of the Revolving Commitments from $275,000,000 to $450,000,000, extending the Revolving Commitment Termination Date and extending the Term Loan Maturity Date, in each case, on the terms and conditions contained herein;

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged by the parties hereto, the parties hereto hereby agree as follows:

Section 1.  Specific Amendments to Credit Agreement.  Subject to the satisfaction of the conditions precedent set forth in Section 2 below, the parties hereto agree that the Credit Agreement is amended as follows:

(a)           The Credit Agreement is amended by adding the following definition of “First Amendment Effective Date” in Section 1.01 in the correct alphabetical order:

“FIRST AMENDMENT EFFECTIVE DATE” means August 19, 2013.

(b)           The Credit Agreement is amended by restating the definitions of “Commitment”, “Revolving Commitment”, “Revolving Commitment Termination Date” and “Term Loan Maturity Date” in Section 1.01 in their entireties as follows:

“COMMITMENT” means, with respect to each Lender, such Lender’s (i) Revolving Commitment and (ii) Term Loan Commitment.

“REVOLVING COMMITMENT” means, with respect to each Lender, the commitment of such Lender to make Revolving Loans to the Borrower and to acquire participations in Letters of Credit in an aggregate principal amount not exceeding the amount set forth with respect to such Lender on Schedule 2.01 as its “Revolving Commitment”, or in the case of a Person becoming a Lender after the First Amendment Effective Date through an assignment of an existing Revolving Commitment, the amount of the assigned “Revolving Commitment” as 

 

 

  

  

  

 

provided in the Assignment and Acceptance or joinder agreement, as applicable, executed by such Person, in each case as such commitment may be (i) reduced from time to time pursuant to Section 2.07 and (ii) reduced or increased from time to time pursuant to assignments by or to such Lender pursuant to Section 9.04.  As of the First Amendment Effective Date, the aggregate amount of the Lenders’ Revolving Commitments is $450,000,000.

“REVOLVING COMMITMENT TERMINATION DATE” means the earlier of (i) August 18, 2017 (the “Initial Maturity Date”), and (ii) the date on which all amounts outstanding under this Agreement have been declared or have automatically become due and payable (whether by acceleration or otherwise); provided however that if (i) the Borrower advises the Administrative Agent on or before May 18, 2017 (but in any event not prior to February 17, 2017) in writing of its desire to extend the Revolving Commitment Termination Date, (ii) pays the Administrative Agent for the account of each Lender an extension fee (the “Extension Fee”) equal to 0.20% of each Lender’s Revolving Commitment, (iii) on the date such notice is delivered and on the Initial Maturity Date no Default or Event of Default has occurred and is continuing and (iv) on the date such notice is delivered and on the Initial Maturity Date all representations and warranties under the Loan Documents are true and correct in all material respects except to the extent such representation or warranty expressly relates to an earlier date (in which case such representation and warranty shall be true and correct as of such date), then the “Maturity Date” shall mean August 18, 2018. Upon payment, the Extension Fee shall be fully earned and nonrefundable.

“TERM LOAN MATURITY DATE” means the earlier of (i) August 18, 2018, and (ii) the date on which all amounts outstanding under this Agreement have been declared or have automatically become due and payable (whether by acceleration or otherwise).

(c)           The Credit Agreement is amended by replacing Schedule 2.01 attached to the Credit Agreement with the Schedule 2.01 attached to this Amendment.

Section 2.  Conditions Precedent.  The effectiveness of this Amendment, including the reallocation of Revolving Commitments set forth in Section 3 below, is subject to the truth and accuracy of the recitals set forth above and the representations set forth in Sections 4 and 5 below and satisfaction of each of the following conditions:

(a)   Receipt by the Administrative Agent of counterparts of this Amendment duly executed by the Borrower, the Administrative Agent and the Lenders;

(b)   Receipt by the Administrative Agent of (i) replacement Revolving Notes duly executed by the Borrower payable to the order of each Revolving Credit Lender whose Revolving Commitment has changed pursuant to this Amendment, and (ii) replacement Term Loan Notes duly executed by the Borrower payable to the order of each Term Loan Lender the principal amount of whose Term Loans has changed pursuant to this Amendment, in each case, 

 

 

  

-2-

  

 

in a principal amount equal to the amount of its Revolving Commitment or Term Loans as set forth on Schedule 2.01 attached hereto;

(c)   Receipt by Administrative Agent of the Reaffirmation of Obligations attached to this Amendment duly executed by each existing Guarantor;

(d)   Receipt by the Administrative Agent of a favorable written opinion (addressed to the Administrative Agent and the Lenders and dated the First Amendment Effective Date) of Nixon Peabody LLP, counsel for the Borrower and the Company, substantially in the form of Exhibit E attached to the Credit Agreement, and covering such other matters relating to the Borrower, the Company, the Guarantors, and the Amendment as the Lenders shall reasonably request;

(e)   Receipt by the Administrative Agent of a certificate of each of the Borrower, the Company and each Guarantor signed by an authorized officer of such Person as of the date hereof certifying as to the following:

(i)           A true and accurate copy or recitation of actions taken by such Person to authorize the execution and delivery of this Amendment and performance of this Amendment and the Credit Agreement, as amended by this Amendment, and the other Loan Documents, including the Reaffirmation of Obligations attached hereto;

(ii)           The incumbency, names and signatures of the officers of such Person authorized to execute and deliver this Amendment and the other Loan Documents and, with respect to the Borrower, the officers of the Borrower then authorized to deliver Borrowing Requests and to request the issuance of Letters of Credit;

(iii)           True and accurate copies of the articles of incorporation, certificate of limited partnership, certificate of formation, or comparable organizational document, as applicable, of such Person, with all amendments thereto, which in the case of the Borrower and the Company are also certified as of a recent date by the Secretary of State of the state of formation of such Person;

(iv)           True and accurate copies of the bylaws, partnership agreement or operating agreement, as applicable, of such Person with all amendments thereto; and

(v)           A certificate of good standing or certificate of similar meaning with respect to each such Person issued as of a recent date by the Secretary of State of the state of formation of each such Person;

(f)   Receipt by the Administrative Agent of satisfactory evidence that simultaneously with this Amendment becoming effective, that certain Loan Agreement dated as of June 28, 2013, by and among the Borrower, the Company and Manufacturers and Traders Trust Company shall be terminated, and all loans thereunder paid in full;

(g)   Receipt by the Administrative Agent of a certificate, dated the First Amendment 

 

 

  

-3-

  

 

 

Effective Date and signed by the President, an Executive Vice President or a Financial Officer of the General Partner, (i) stating that no Default or Event of Default shall have occurred and be continuing prior to or will be caused by or result from the amendments to the Credit Agreement provided in this Amendment, and (ii) reaffirming that representations and warranties of the Company and the Borrower set forth in the Credit Agreement shall be true and correct on and as of the date of this Amendment;

(h)   Receipt of a Quarterly Compliance Certificate for June 30, 2013, calculated on a pro forma basis giving effect to any Borrowing or issuance Letters of Credit made after the quarter ended June 30, 2013, including any Borrowing or issuance of a Letter of Credit made on the date of this First Amendment Effective Date;

(i)   Receipt by the Administrative Agent of all fees and other amounts due on the date of this Amendment, including, without limitation, the expenses, the Amendment Fee and the Commitment Fee set forth in Section 7 hereof and all other fees set forth in writing by the Borrower and the Administrative Agent in that certain Engagement Letter dated July 10, 2013 that are due and payable on the date of this Amendment; and

(j)   Receipt by the Administrative Agent of such other documents, instruments and agreements as the Administrative Agent or the Lenders may reasonably request.

Section 4.  Reallocation.  The Administrative Agent, the Lenders and the Borrower agree that the Revolving Commitment of, and Term Loans held by, each of the Lenders immediately prior to the effectiveness of this Amendment shall be allocated among the Lenders such that, immediately after the effectiveness of this Amendment in accordance with its terms, the Revolving Commitment of, and Term Loans held by, each Lender shall be as set forth on Schedule 2.01 attached hereto.  In order to effect such reallocations, assignments shall be deemed to be made among the Lenders in such amounts as may be necessary, and with the same force and effect as if such assignments were evidenced by the applicable Assignment and Acceptance (but without the payment of any related assignment fee), and no other documents or instruments shall be required to be executed in connection with such assignments (all of which such requirements are hereby waived).  Further, to effect the foregoing, each Lender agrees to make cash settlements in respect of any outstanding Revolving Loans and Term Loans (including cash settlements to those lenders party to the Credit Agreement immediately prior to the effectiveness of this Amendment who have elected not to be a Lender under the Credit Agreement on the date that this Amendment becomes effective), either directly or through the Administrative Agent, as the Administrative Agent may direct (after giving effect to any netting effected by the Administrative Agent), such that after giving effect to this Amendment, each Lender holds (a) Revolving Loans equal to its Applicable Percentage (based on the Revolving Commitment of each Lender as set forth on Schedule 2.01 attached hereto) of the Revolving Loans then outstanding and participations in Letters of Credit and (b) Term Loans in the principal amount set forth on Schedule 2.01 attached hereto for such Lender.

The Administrative Agent, the Borrower and each Lender confirm that the amounts of each Lender’s Revolving Commitment to be effective, and the outstanding principal amount of 

 

 

  

-4-

  

 

Term Loans to be held by each Lender, in each case, on the date this Amendment becomes effective, are as set forth on Schedule 2.01 attached hereto.

Section 5.  Representations.  The Borrower and the Company represent and warrant to the Administrative Agent and the Lenders that:

(a)           Authorization.  This Amendment has been duly authorized by all necessary partnership action of the Borrower and all corporate action of the Company, and the Company has the requisite power and authority to execute and deliver on behalf of itself and the Borrower this Amendment.  Each of the Borrower and the Parent has the requisite power and authority to perform this Amendment and the Credit Agreement, as amended by this Amendment, in accordance with their respective terms.  This Amendment has been duly executed and delivered by the Borrower and the Company and each of this Amendment and the Credit Agreement, as amended by this Amendment, is a legal, valid and binding obligation of the Borrower and the Company enforceable against the Borrower and the Company in accordance with their respective terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium or other laws affecting creditors’ rights generally and subject to general principles of equity, regardless of whether considered in a proceeding in equity or at law.

(b)           Compliance with Laws, etc.  None of the execution and delivery of this Amendment, the performance of this Amendment and of the Credit Agreement, as amended by this Amendment, or the execution, delivery and performance of the other Loan Documents to which any of the Borrower, the Company or the other Guarantors is a party, (a) requires any consent or approval of, registration or filing with, or any other action by, any Governmental Authority, except such as have been obtained or made and are in full force and effect and except as may be required under applicable federal securities laws, (b) violates any applicable law or regulation or the charter, by-laws, partnership agreement or other organizational documents of the Company, the Borrower or any of their Subsidiaries, or any order, decree, judgment or ruling of any court, arbitrator or Governmental Authority applicable to the Company, the Borrower or any of their Subsidiaries, (c) violates or results in a default under any indenture, agreement or other instrument binding upon the Company, the Borrower or any of their Subsidiaries or their assets, or give rise to a right thereunder to require any payment to be made by the Company, the Borrower or any of their Subsidiaries or (d) results in the creation or imposition of any Lien on any asset of the Company, the Borrower or any of their Subsidiaries.

(c)           No Default.  No Default or Event of Default has occurred and is continuing as of the date hereof, and no Default or Event of Default will exist immediately after giving effect to this Amendment.

Section 6.  Reaffirmation of Representations.  Each of the Borrower and the Company hereby repeats and reaffirms all representations and warranties made by such Person to the Administrative Agent and the Lenders in the Credit Agreement and the other Loan Documents on and as of the date hereof with the same force and effect as if such representations and warranties were set forth in this Amendment in full.

 

  

-5-

  

 

 

Section 7.  Certain References.  Each reference to the Credit Agreement in any of the Loan Documents shall be deemed to be a reference to the Credit Agreement as amended by this Amendment. This Amendment shall constitute a Loan Document.

Section 8.  Expenses; Fees.  The Borrower shall reimburse the Administrative Agent upon demand for all out-of-pocket costs and expenses (including attorneys’ fees) incurred by the Administrative Agent in connection with the preparation, negotiation, and execution of this Amendment and the other agreements and documents executed and delivered in connection herewith.  The Borrower shall pay to the Administrative Agent  for the benefit of each Lender (a) an amendment fee (an “Amendment Fee”) equal to 0.125% of the sum of such Lender’s Revolving Commitment plus the outstanding principal amount of Term Loans held by such Lender, in each case, immediately prior to the effectiveness of this Amendment; and (b) a commitment fee (a “Commitment Fee”) equal to 0.20% of the amount by which the aggregate amount of such Lender’s Revolving Commitment plus the outstanding principal amount of the Term Loans to be held by such Lender, in each case, after this Amendment becomes effective exceeds the sum of such Lender’s Revolving Commitment plus the outstanding principal amount of Term Loans held by such Lender, in each case, immediately prior to the effectiveness of this Amendment.

Section 9.  Benefits.  This Amendment shall be binding upon and shall inure to the benefit of the parties hereto and their respective successors and assigns.

Section 10.  GOVERNING LAW.  THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO CONTRACTS EXECUTED, AND TO BE FULLY PERFORMED, IN SUCH STATE.

Section 11.  Release.  In consideration of the amendments contained herein, each of the Borrower and the Company hereby waives and releases the Administrative Agent and each Lender from any and all claims and defenses, whether known or unknown, with respect to the Credit Agreement and the other Loan Documents and the transactions contemplated thereby.

Section 12.  Effect.  Except as expressly herein amended, the terms and conditions of the Credit Agreement and the other Loan Documents remain in full force and effect.  Except as set forth in this Amendment, this Amendment shall not be construed to be a waiver or amendment of any of the other terms and conditions of the Credit Agreement and the other Loan Documents or to limit, impair or otherwise affect the rights and remedies of the Lenders under the Loan Documents. The amendments contained herein shall be deemed to have prospective application only, unless otherwise specifically stated herein.

Section 13.  Counterparts.  This Amendment may be executed in any number of counterparts, each of which shall be deemed to be an original and shall be binding upon all parties, their successors and assigns. Signatures hereto delivered by facsimile transmission, emailed .pdf file or other similar forms of electronic transmission shall be deemed original signatures, which hereby may be relied upon by all parties and shall be binding on the respective signor.

 

 

  

-6-

  

 

Section 14.  Definitions.  Capitalized terms used in this Amendment and not otherwise defined herein shall have the respective meanings given such terms in the Credit Agreement as amended by this Amendment.

[Signatures Commence on Next Page]

 

  

-7-

  

IN WITNESS WHEREOF, the parties hereto have caused this First Amendment to Amended and Restated Credit Agreement to be executed as of the date first above written.

HOME PROPERTIES, L.P.

By:  Home Properties, Inc., its general partner

By:           /s/ David P. Gardner

Name:     David P. Gardner

Title:       Executive Vice President and Chief Financial Officer

	
  

	
HOME PROPERTIES, INC.

By:           /s/ David P. Gardner

Name:     David P. Gardner

Title:       Executive Vice President and Chief Financial Officer

 

[Signatures Continue on the Following Page]

  

  

  

ADMINISTRATIVE AGENT AND LENDERS:

	
  

	
MANUFACTURERS AND TRADERS TRUST COMPANY, as Administrative Agent and as a Lender

By:  /s/ Lisa Plescia

     Name:  Lisa Plescia

     Title: Vice President

	
  

	
U.S. BANK NATIONAL ASSOCIATION, as a Lender

By: /s/ Bruce A. Ostrom

     Name: Bruce A. Ostrom

     Title: Senior Vice President

	
  

	
BANK OF AMERICA, N.A., as a Lender

By: /s/ Ann E. Kenzie

     Name: Ann E. Kenzie

     Title: Vice President

	
  

	
PNC BANK, NATIONAL ASSOCIATION, as a Lender

By: /s/ Gregory Fedorko

     Name:  Gregory Fedorko

     Title: Vice President

	
  

	
RBC CITIZENS, N.A., as a Lender

By: /s/ Don Woods

     Name: Don Woods

     Title: Senior Vice President

[Signatures Continue on the Following Page]

  

  

  

	
  

	
CAPITAL ONE, N.A., as a Lender

By: /s/ Frederick H. Denecke

     Name: Frederick H. Denecke

     Title:  Senior Vice President

	
  

	
JPMORGAN CHASE BANK, N.A., as a Lender

By: /s/ Rita Lai

     Name:  Rita Lai

     Title: Senior Credit Banker

	
  

	
ROYAL BANK OF CANADA, as a Lender

By: /s/ Dan LePage

     Name: Dan LePage

     Title: Authorized Signatory

	
  

	
FIRST NIAGARA BANK, N.A., as a Lender

By: /s/ Jeffrey H. Parker

     Name: Jeffrey H. Parker

     Title:  Vice President

	
  

	
BRANCH BANKING AND TRUST COMPANY,

	
  

	
  as a Lender

By: /s/ Ahaz Armstrong

     Name: Ahaz Armstrong

     Title: Assistant Vice President

	
  

	
WELLS FARGO BANK, NATIONAL ASSOCIATION,

	
  

	
  as a Lender

By: /s/ Andrew W. Hussion

     Name: Andrew W. Hussion

     Title: Vice President

  

  

  

Schedule 2.01

Schedule of Lenders, Revolving Commitments and Term Loans

	
Lender

	 	
Revolving Commitment

	 	 	
 

 

 

Term Loan Held

	 	 	
Aggregate Amount of Revolving Commitment and Term Loan Held

	 
	
Manufacturers and Traders Trust Company

	 	$	67,499,999.99	 	 	$	37,500,000.01	 	 	$	105,000,000.00	 
	
U.S. Bank National Association

	 	$	54,642,857.14	 	 	$	30,357,142.86	 	 	$	85,000,000.00	 
	
RBS Citizens, N.A. d/b/a Charter One

	 	$	54,642,857.14	 	 	$	30,357,142.86	 	 	$	85,000,000.00	 
	
Bank of America, N.A.

	 	$	41,785,714.29	 	 	$	23,214,285.71	 	 	$	65,000,000.00	 
	
Capital One, N.A.

	 	$	41,785,714.29	 	 	$	23,214,285.71	 	 	$	65,000,000.00	 
	
PNC Bank, N.A.

	 	$	41,785,714.29	 	 	$	23,214,285.71	 	 	$	65,000,000.00	 
	
JPMorgan Chase Bank, N.A.

	 	$	41,785,714.29	 	 	$	23,214,285.71	 	 	$	65,000,000.00	 
	
Royal Bank of Canada

	 	$	28,928,571.43	 	 	$	16,071,428.57	 	 	$	45,000,000.00	 
	
Wells Fargo Bank, National Association

	 	$	28,928,571.43	 	 	$	16,071,428.57	 	 	$	45,000,000.00	 
	
Branch Banking & Trust Company

	 	$	25,714,285.71	 	 	$	14,285,714.29	 	 	$	40,000,000.00	 
	
First Niagara Bank, N.A.

	 	$	22,500,000.00	 	 	$	12,500,000.00	 	 	$	35,000,000.00	 
	
Total:

	 	$	450,000,000	 	 	$	250,000,000.00	 	 	$	700,000,000.00	 

  

  

  

REAFFIRMATION OF OBLIGATIONS

Each of the undersigned (each a “Guarantor” and collectively the “Guarantors”) hereby (a) reaffirms its continuing obligations owing under the Amended and Restated Guaranty dated as of December 9, 2011, executed and delivered by the Guarantors (the “Guaranty”) and (b) agrees that the First Amendment to Amended and Restated Credit Agreement dated the date hereof (the “Amendment”) amending the Amended and Restated Credit Agreement dated as of December 9, 2011 (as amended, restated, supplemented or otherwise modified from time to time, the “Credit Agreement Agreement”), by and among HOME PROPERTIES, L.P., a New York limited partnership (the “Borrower”), HOME PROPERTIES, INC., a Maryland corporation (the “Company”), each of the Lenders party hereto, and MANUFACTURERS AND TRADERS TRUST COMPANY, as Administrative Agent (the “Administrative Agent”) for the Lenders, and the transactions contemplated by the Amendment, do not in any way affect the validity and enforceability of the Guaranty, or reduce, impair or discharge the obligations of such Guarantor thereunder.

Each of the Guarantors represents and warrants to the Administrative Agent and the Lenders that the execution, delivery, and performance of this Reaffirmation of Obligations has been authorized by all requisite action on the part of such Guarantor and will not violate such Guarantor’s organizational or governing document.

Each of the Guarantors further agrees that references to the Credit Agreement contained in any Loan Document (as defined in the Credit Agreement) shall be deemed to be references to the Credit Agreement, as amended by the Amendment.

In consideration of Amendment and the direct and indirect benefits thereof to each Guarantor, each Guarantor hereby waives and releases the Administrative Agent and each Lender from any and all claims and defenses, whether known or unknown, with respect to the Credit Agreement and the other Loan Documents and the transactions contemplated thereby.

This Reaffirmation of Obligations shall be construed in accordance with and be governed by, and construed in accordance with, the laws of the State of New York applicable to contracts executed, and to be fully performed, in such State.

[Signatures Begin on Next Page]

  

  

  

IN WITNESS WHEREOF, each of the undersigned have duly executed and delivered this Reaffirmation of Obligations as of August 19, 2013.

HOME PROPERTIES, INC.

By:           /s/ David P. Gardner

Name:      David P. Gardner

Title:        Executive Vice President and Chief Financial Officer

HOME PROPERTIES WOODLEAF, LLC

By: Home Properties, L.P., as Member and Manager

By: Home Properties, Inc., General Partner

By:           /s/ David P. Gardner

Name:      David P. Gardner

Title:        Executive Vice President and Chief Financial Officer

HOME PROPERTIES GATEWAY VILLAGE LIMITED PARTNERSHIP

By: Home Properties, L.P., as General Partner

By: Home Properties, Inc., General Partner

By:           /s/ David P. Gardner

Name:     David P. Gardner

Title:       Executive Vice President and Chief Financial Officer

[Signatures Continue on Next Page]

[Signature page to Reaffirmation of Obligations]

  

  

  

BARRINGTON GARDENS, L.L.C.

HACKENSACK GARDENS APARTMENTS, LLC

HOME PROPERTIES 1200 EAST WEST, LLC

HOME PROPERTIES BAYVIEW COLONIAL, LLC

HOME PROPERTIES BEVERLY, LLC

HOME PROPERTIES BLACKHAWK, LLC

HOME PROPERTIES BRADDOCK LEE, LLC

HOME PROPERTIES BROADLAWN, LLC

HOME PROPERTIES CAMBRIDGE COURT, LLC

HOME PROPERTIES CAMBRIDGE VILLAGE, LLC

HOME PROPERTIES CANTERBURY NO. 1, LLC

HOME PROPERTIES CANTERBURY NO. 2, LLC

HOME PROPERTIES CANTERBURY NO. 3, LLC

HOME PROPERTIES CANTERBURY NO. 4, LLC

HOME PROPERTIES CHANNEL TOWNHOMES, LLC

HOME PROPERTIES COBBLESTONE, LLC

HOME PROPERTIES COLONIES, LLC

HOME PROPERTIES COURTYARD VILLAGE, LLC

HOME PROPERTIES COVE TOWNHOMES, LLC

HOME PROPERTIES CRESCENT CLUB, LLC

HOME PROPERTIES DEER GROVE, LLC

HOME PROPERTIES DULLES, LLC

HOME PROPERTIES GARDENCREST, LLC

HOME PROPERTIES HAYNES FARM, LLC

HOME PROPERTIES HERITAGE SQUARE, LLC

HOME PROPERTIES HOLIDAY SQUARE, LLC

HOME PROPERTIES HOWARD CROSSING, LLC

HOME PROPERTIES HUNTERS GLEN, LLC

HOME PROPERTIES HUNTINGTON METRO, LLC

By: Home Properties, L.P., as sole Member and Manager

By: Home Properties, Inc., General Partner

By:           /s/ David P. Gardner

Name:     David P. Gardner

Title:       Executive Vice President and Chief Financial Officer

[Signatures Continue on Next Page]

[Signature page to Reaffirmation of Obligations]

  

  

  

HOME PROPERTIES LAKE GROVE, LLC

HOME PROPERTIES LAKEVIEW TOWNHOMES, LLC

HOME PROPERTIES LIBERTY COMMONS, LLC

HOME PROPERTIES LIBERTY PLACE, LLC

HOME PROPERTIES LIGHTHOUSE TOWNHOMES, LLC

HOME PROPERTIES MANSION HOUSE, LLC

HOME PROPERTIES MARSHFIELD, LLC

HOME PROPERTIES MIDDLEBROOKE, LLC

HOME PROPERTIES MORNINGSIDE HEIGHTS, LLC

HOME PROPERTIES MORNINGSIDE NORTH, LLC

HOME PROPERTIES MORNINGSIDE SIX, LLC

HOME PROPERTIES MOUNT VERNON, LLC

HOME PROPERTIES NEWPORT VILLAGE, LLC

HOME PROPERTIES PLEASURE BAY, LLC

HOME PROPERTIES POTOMAC FALLS, LLC

HOME PROPERTIES SEMINARY HILLS, LLC

HOME PROPERTIES SHERWOOD GARDENS, LLC

HOME PROPERTIES SOMERSET PARK, LLC

HOME PROPERTIES WATERVIEW, LLC

HOME PROPERTIES WESTBROOKE, LLC

HOME PROPERTIES WESTWOODS, LLC

HOME PROPERTIES WINDSOR, LLC

HOME PROPERTIES WMF I, LLC

HOME PROPERTIES WOODWAY, LLC

HOME PROPERTIES YORKSHIRE VILLAGE, LLC

JACOB FORD VILLAGE, L.L.C.

THE COLONY OF HOME PROPERTIES, LLC

By: Home Properties, L.P., as sole Member and Manager

By: Home Properties, Inc., General Partner

By:           /s/ David P. Gardner

Name:      David P. Gardner

Title:        Executive Vice President and Chief Financial Officer

[Signature page to Reaffirmation of Obligations]

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