Document:

Exhibit 10.1

 

FIRST AMENDMENT TO 

CREDIT AGREEMENT

 

FIRST AMENDMENT, dated as of July 18, 2008
(this “Amendment”)
to the Credit Agreement, dated as of May 20, 2008 (as modified hereby and
as further amended, supplemented or otherwise modified from time to time, the “Credit
Agreement”), among BUCKEYE ENERGY SERVICES LLC and FARM & HOME OIL
COMPANY LLC (the “Borrowers”), the several Lenders from time to time
parties thereto, and BNP PARIBAS, as administrative agent (the “Administrative
Agent”) and as collateral agent.

 

RECITALS

 

WHEREAS, the Borrowers have requested that the
Lenders amend the Credit Agreement to make certain changes with respect to the
Maximum Sub-Limit and the Applicable Margin, and to make certain other
amendments;

 

WHEREAS, BNP Paribas, in its capacity as Lender (the
“Existing Lender”), is concurrently assigning $85,000,000 of its
Commitment to certain financial institutions, the completion of which
syndication shall constitute the “Syndication Date” under the Credit Agreement;

 

WHEREAS, pursuant to Section 4.1(b)(i) of
the Credit Agreement, the Borrowers are 
requesting that the Lenders concurrently increase the Commitments so
that the Total Commitments equal $160,000,000 following the effectiveness of
such increase;

 

WHEREAS, pursuant to Section 4.1(b) of the
Credit Agreement, in order to satisfy the Borrowers’ request, upon the
occurrence of the Syndication Date the Existing Lender has agreed to increase
its Commitment from $65,000,000 to $75,000,000 as governed by the Credit
Agreement on the terms and subject to the conditions set forth in this
Amendment;

 

WHEREAS, pursuant to the definition of “Sub-Limit”
in Section 1.1 of the Credit Agreement, and subject to the requested
increase in the Total Commitments, the Borrowers are electing to concurrently
increase the Maximum Sub-Limit to $160,000,000; and

 

WHEREAS, the Lenders have agreed to amend the Credit
Agreement solely upon the terms and conditions set forth herein;

 

NOW, THEREFORE, in consideration of the premises and
the agreements hereinafter set forth, the parties hereto hereby agree as
follows:

 

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

 

 

 

 

 

2.             Amendment
to Section 1.1 of the Credit Agreement (Defined Terms).

 

(a)           Section 1.1 of the Credit Agreement is hereby amended
by deleting the definition of “Applicable Margin” and substituting in lieu
thereof the following:

 

“‘Applicable Margin’:  on any date with respect to (a) Eurodollar
Loans, a rate per annum equal to 1.75%, (b) Cost of Funds Loans, a rate
per annum equal to 1.75% and (c) Base Rate Loans, a rate per annum equal
to 0.25%.”

 

(b)           Section 1.1 of the Credit Agreement is hereby further
amended by deleting the last sentence of the definition of “Commitment” and
substituting in lieu thereof the following:

 

“As of the Syndication Date,
the aggregate amount of the Commitments is $160,000,000.”

 

(c)           Section 1.1 of the Credit Agreement is hereby further
amended by deleting the definition of “Fiscal Year” and substituting in lieu
thereof the following:

 

“Fiscal Year”: the fiscal year of any
Borrower, which consists of a twelve (12) month period beginning on each January 1
and ending on each December 31.

 

(d)           Section 1.1 of the Credit Agreement is hereby further
amended by deleting the table in the definition of “Maximum Position Limits”
and substituting in lieu thereof the following:

 

	
  Maximum

  Sub-Limit

  	
   

  	
  Maximum Position Limits — Eligible Commodities (excluding natural
  gas)

  	
   

  	
  Maximum Position

  Limits (natural gas)

  	
   

  
	
   

  	
  Net Long 

  Position

  	
   

  	
  Net Short 

  Position

  	
   

  	
  Net Basis 

  Position

  	
   

  	
  Net Long 

  Position

  	
   

  	
  Net Short 

  Position

  	
   

  	
  Net Basis 

  Position

  	
   

  
	
  $150,000,000

  	
   

  	
  350,000

  	
   

  	
  25,000

  	
   

  	
  4,000,000

  	
   

  	
  zero

  	
   

  	
  zero

  	
   

  	
  zero

  	
   

  
	
  > $150,000,000 and ≤ $200,000,000

  	
   

  	
  420,000

  	
   

  	
  50,000

  	
   

  	
  5,000,000

  	
   

  	
  zero

  	
   

  	
  zero

  	
   

  	
  zero

  	
   

  
	
  > $200,000,000 and ≤ $250,000,000

  	
   

  	
  500,000

  	
   

  	
  75,000

  	
   

  	
  6,000,000

  	
   

  	
  zero

  	
   

  	
  zero

  	
   

  	
  zero

  	
   

  

 

(e)           Section 1.1 of the Credit Agreement is hereby further
amended by deleting clause (a)(ii) of the definition of “Sub-Limit” and
substituting in lieu thereof the following:

 

“(ii)         at
any time after the Syndication Date, so long as no Default or Event of Default
has occurred and is continuing or would result from such election, the amount
set forth in the table below under the heading “Maximum Sub-Limit” (which must
be a whole multiple of $10,000,000 that is equal to or greater than
$150,000,000 and equal to or less than $250,000,000) elected by the Borrowers
from time to time by written notice delivered to the Administrative Agent in
the form attached hereto as Annex V (the “Sub-Limit Election Notice”); provided
that, at the time of any such election of any such amount as the Maximum
Sub-Limit, but not for any other purpose herein, each of the Borrowers’
Consolidated Net Working Capital, Consolidated Tangible Net Worth and
Consolidated Leverage Ratio at such time of election, each as determined by the
Applicable Financial Statements, are within the requirements set forth opposite
such amount in the table below; provided  further that, the
Maximum Sub-Limit shall at no time 

 

 

 

 

 

2

 

 

exceed the Total Commitment
at such time; provided  further that, if at any time the Borrowers
elect to reduce the Maximum Sub-Limit, the Borrowers shall prepay the Loans
and/or Cash Collateralize, replace or decrease (if the beneficiary of such
Letter of Credit agrees to such decrease) the amount of outstanding Letters of
Credit to the extent required by Section 4.7(c) on the date of such
election:

 

	
  Maximum Sub-Limit

  	
   

  	
  Minimum 

  Consolidated 

  Tangible Net Worth

  	
   

  	
  Minimum 

  Consolidated Net 

  Working Capital

  	
   

  	
  Maximum 

  Consolidated 

  Leverage Ratio

  	
   

  
	
  $150,000,000

  	
   

  	
  $

  	
  40,000,000

  	
   

  	
  $

  	
  30,000,000

  	
   

  	
  7.0:1.00

  	
   

  
	
  > $150,000,000 and ≤ $200,000,000

  	
   

  	
  $

  	
  50,000,000

  	
   

  	
  $

  	
  40,000,000

  	
   

  	
  7.0:1.00

  	
   

  
	
  > $200,000,000 and ≤ $250,000,000

  	
   

  	
  $

  	
  60,000,000

  	
   

  	
  $

  	
  50,000,000

  	
   

  	
  7.0:1.00

  	
   

  

 

(f)            Section 1.1 of the Credit Agreement is hereby
further amended by deleting clause (b)(ii) of the definition of “Sub-Limit”
and substituting in lieu thereof the following:

 

                “(ii)         thereafter, at any time, the amount set
forth in the table below under the heading “Swing Line Loan Sub-Limit”, the “Daylight
Overdraft Loan Sub-Limit”, the “364-Day Letters of Credit Sub-Limit” or the “Subsidiary
L/C Sub-Limit” opposite the then-current Maximum Sub-Limit: 

 

 

 

	
  Maximum Sub-Limit

  	
   

  	
  Daylight 

  Overdraft Loan 

  Sub-Limit

  	
   

  	
  364-Day Letters 

  of Credit 

  Sub-Limit

  	
   

  	
  Swing Line 

  Loan

  Sub-Limit

  	
   

  	
  Subsidiary L/C 

  Sub-Limit

  	
   

  
	
  $150,000,000

  	
   

  	
  $

  	
  10,000,000

  	
   

  	
  $

  	
  15,000,000

  	
   

  	
  $

  	
  15,000,000

  	
   

  	
  $

  	
  30,000,000

  	
   

  
	
  > $150,000,000 and ≤ $200,000,000

  	
   

  	
  $

  	
  10,000,000

  	
   

  	
  $

  	
  20,000,000

  	
   

  	
  $

  	
  20,000,000

  	
   

  	
  $

  	
  40,000,000

  	
   

  
	
  > $200,000,000 and ≤ $250,000,000

  	
   

  	
  $

  	
  10,000,000

  	
   

  	
  $

  	
  25,000,000

  	
   

  	
  $

  	
  25,000,000

  	
   

  	
  $

  	
  50,000,000

  	
   

  

 

3.             Amendment
to Section 3.3(a) of the Credit Agreement (Fees, Commissions and
Other Charges).  Section 3.3(a) of
the Credit Agreement is hereby amended by deleting Section 3.3(a) in
its entirety and substituting in lieu thereof the following:

 

“(a)         Letter of Credit Fee.  Each Borrower requesting a Letter of Credit
shall pay to the Administrative Agent, for the account of the relevant Issuing
Lender and the L/C Participants a letter of credit commission, with respect to
each outstanding Letter of Credit, in an amount equal to a per annum fee of
1.75% times the average daily maximum amount available to be drawn under such
Letter of Credit from time to time; provided that, the letter of credit
commission for each such Letter of Credit shall not be in an amount less than
$600, and, in each case, shall be shared ratably among the L/C Participants and
the Issuing Lender of such Letter of Credit in accordance with their respective
Commitment Percentages.  Such commissions
shall be payable monthly in arrears on each L/C Fee Payment Date.  With respect to any Letter of Credit that
expires after the Termination Date, on or prior to the Termination Date, the
applicable Borrower shall pay to the Administrative Agent, for the account of
the relevant Issuing Lender and the L/C 

 

 

 

3

 

 

Participants, an amount equal to the letter of credit
commission to be owed with respect to such Letter of Credit for the period from
the Termination Date until the expiration date of such Letter of Credit.”

 

4.             Amendment
to Section 4.1(b)(iii) of the Credit Agreement (Increase, Termination
or Reduction of Commitments).  Section 4.1(b)(iii) of
the Credit Agreement is hereby amended by deleting Section 4.1(b)(iii) in
its entirety and substituting in lieu thereof the following:

 

“(iii)        If
the aggregate amount of the increases in Commitment which the Lenders have
accepted in accordance with Section 4.1(b)(ii) shall be less
than the Requested Increase Amount, the Administrative Agent (subject to the
approval of the Borrowers and the Issuing Lenders) may offer to such additional
Persons (including Lenders) as may be agreed by the Borrowers and the
Administrative Agent (to the extent not Existing Lenders, “New Lenders”)
the opportunity to make available such amount of new Commitments as may be
required so that the aggregate increases in Commitments by the existing Lenders
and new Commitments by the New Lenders shall equal the Requested Increase
Amount (the aggregate increases in Commitments by the existing Lenders and new
Commitments by the New Lenders, the “Increase Amount”).  Such Increase Amount shall be in an amount
equal to $10,000,000 or a whole multiple thereof.  The effectiveness of all such increases in
Commitments are subject to the satisfaction of the following conditions: (A) each
Lender that so elects to increase its Commitments (each an “Increasing
Lender”), each New Lender, the Administrative Agent and the Borrowers shall
have executed and delivered an agreement, substantially in the form attached
hereto as Exhibit N (an “Increase and New Lender Agreement”);
(B) the Total Commitment after giving effect to such increases shall not
exceed $250,000,000; (C) any fees and other amounts (including, without
limitation, pursuant to Section 11.6) payable by the Borrowers in
connection with such increase and accession shall have been paid; (D) no
Default or Event of Default has occurred and is continuing or would result from
such increase in the Commitments; (E) each of the Borrowers’ Consolidated
Net Working Capital, Consolidated Tangible Net Worth and Consolidated Leverage
Ratio at the time of such increase, each as determined by the Applicable
Financial Statements, are within the requirements set forth opposite the
Maximum Amount equal to the Total Commitments after giving effect to such
increases; and (F) delivery of a certificate of a Responsible Person of
the Borrowers as to the matters set forth in Sections 6.2(b), (c) and
(e).”

 

5.             Waiver.

 

(a)           The Borrowers hereby make a written request to increase
the Total Commitments to $160,000,000 and hereby request that such increase be
effective as of the Amendment Effective Date (such increase, the “Commitment
Increase”).  The Lenders hereby waive
compliance with the terms and conditions of Section 4.1(b)(i), (ii) and
(iii) of the Credit Agreement solely with respect to the requirements
under each such Section for the Borrowers to deliver notice of a requested
increase in Commitments.  The Lenders
hereby agree and acknowledge that this Amendment satisfies the notice and
approval requirements set forth in such Sections.

 

(b)           Solely with respect to the Commitment Increase
requested in Section 5(a) above, the Lenders hereby waive the
requirement in Section 4.1(b)(iii) of the Credit Agreement for the
execution and delivery of an agreement substantially in the form of Exhibit N
(Form of Increase and New Lender Agreement) to the Credit Agreement.  The Lenders hereby agree and acknowledge that
this Amendment, and the documents delivered to the Administrative Agent
hereunder, satisfy such requirement set forth in Section 4.1(b)(iii).

 

 

 

4

 

 

(c)           The Borrowers hereby make a written request to increase
the Maximum Sub-Limit to $160,000,000 and hereby request that such increase be
effective as of the Amendment Effective Date. 
The Lenders hereby waive compliance with the terms and conditions of
clause (a)(ii) of the definition of “Sub-Limit” in the Credit Agreement
solely with respect to the requirements under such clause for the Borrowers to
deliver a Sub-Limit Election Notice.  The
Lenders hereby agree and acknowledge that this Amendment satisfies the
requirements under the Credit Agreement to deliver a Sub-Limit Election Notice.

 

6.             Increase
in Commitments.  Pursuant to the
request of the Borrowers in Section 5(a) above,  the Existing Lender agrees to increase its
Commitment from $65,000,000 to $75,000,000, such increase to be effective on
the Amendment Effective Date upon the receipt by the Administrative Agent of (i) an
Assignment and Acceptance, executed and delivered by a duly authorized officer
of each of BNP Paribas and Univest National Bank and Trust Co., (ii) an
Assignment and Acceptance, executed and delivered by a duly authorized officer
of each of BNP Paribas and The Bank of Tokyo-Mitsubishi UFJ, Ltd., (iii) an
Assignment and Acceptance, executed and delivered by a duly authorized officer
of each of BNP Paribas and RZB Finance LLC, (iv) an Assignment and
Acceptance, executed and delivered by a duly authorized officer of each of BNP
Paribas and DZ Bank AG Deutsche Zentral-Genossenschaftsbank Frankfurt am Main
and (v) an Assignment and Acceptance, executed and delivered by a duly
authorized officer of each of BNP Paribas and Natixis.

 

7.             Syndication
Date.  The Lenders hereby agree and
acknowledge that the Syndication Date shall be deemed to have occurred upon the
receipt and acceptance by the Administrative Agent of the assignments described
in clauses (i) through (v) of Section 6 representing an
aggregate assignment of $85,000,000 from the Existing Lender to the other
financial institutions named in such clauses. 
The Existing Lender agrees to provide the Borrowers with notice that the
Syndication Date has occurred, which shall be concurrent with the Amendment
Effective Date.

 

8.             Conditions
to Effectiveness.  This Amendment shall
become effective upon the date (the “Amendment Effective Date”) on which
the Administrative Agent shall have received:

 

(a)           This Amendment, executed and delivered by a duly
authorized officer of each of the Borrowers, the Administrative Agent and the Existing
Lender.

 

(b)           An Acknowledgment and Consent, substantially in the form
of Exhibit A hereto, duly executed and delivered by each Loan
Party.

 

(c)           A certificate of each Loan Party, dated as of the Amendment Effective Date
substantially in the form of Exhibit E to the Credit Agreement, with
appropriate insertions and attachments, satisfactory in form and substance to
the Administrative Agent, executed by the President or any Vice President and
the Secretary or any Assistant Secretary of such Loan Party.

 

(d)           A copy of the resolutions, in form and substance
reasonably satisfactory to the Administrative Agent, of the Board of Directors
(or analogous body) of each Loan Party authorizing the execution, delivery and
performance of the Amendment Documents (as defined below) and the Notes to be
delivered, certified by the Secretary or an Assistant Secretary of such Loan
Party, or, if applicable, of the general partner or managing member or members
of such Loan Party as of the Amendment Effective Date,
which certification shall be included in the certificate delivered in respect
of such Loan Party pursuant to Section 8(c) and shall state that the
resolutions thereby certified have not been amended, modified, revoked or
rescinded.

 

 

 

5

 

 

(e)           To the extent the following have been amended, restated,
supplemented or otherwise modified since the Closing Date, a certificate of
each Loan Party, dated as of the date hereof, as to the incumbency and
signature of the officers of such Loan Party executing any Amendment Document,
which certificate shall be included in the certificate delivered in respect of
such Loan Party pursuant to Section 8(c), shall be reasonably satisfactory
in form and substance to the Administrative Agent, and shall be executed by the
President or any Vice President and the Secretary or any Assistant Secretary of
such Loan Party.

 

(f)            To the extent the following have been amended, restated,
supplemented or otherwise modified since the Closing Date, true and complete
copies of the Governing Documents of each Loan Party, certified as of the date
hereof as complete and correct copies thereof by the Secretary or an Assistant
Secretary of such Loan Party, which certification shall be included in the
certificate delivered in respect of such Loan Party pursuant to Section 8(c) and
shall be in form and substance reasonably satisfactory to the Administrative
Agent.

 

(g)           A certificate of a Responsible Officer of the Borrowers
either (i) attaching copies of all consents, authorizations and filings
referred to in Section 6.1(i) of the Credit Agreement, and stating
that such consents, licenses and filings are in full force and effect, and each
such consent, authorization and filing shall be in form and substance
satisfactory to the Administrative Agent or (ii) stating that no such
consents, licenses or approvals are so required.

 

(h)           A Note of the Borrowers conforming to the requirements of
the Credit Agreement and executed by a duly authorized officer of each Borrower
in favor of the Existing Lender, in an amount equal to $75,000,000.

 

(i)            Certificates dated as of a recent date from the
Secretary of State or other appropriate authority, evidencing the good standing
of each Loan Party (i) to the extent relevant under applicable laws, in
the jurisdiction of its organization and (ii) in each other jurisdiction
where its ownership, lease or operation of property or the conduct of its
business requires it to qualify as a foreign Person except, as to this
subclause (ii), where the failure to so qualify could not have a Material
Adverse Effect; provided that, the Loan Parties shall deliver such
certificates to the Administrative Agent within ten Business Days following the
Amendment Effective Date.

 

9.             Representations
and Warranties.  The Borrowers hereby
represent and warrant to the Administrative Agent and each Lender that as of
the Amendment Effective Date (before and after giving effect to this
Amendment):

 

(a)           Each Loan Party has the requisite power and authority to
execute, deliver and perform this Amendment and the Acknowledgment and Consent
(collectively, the “Amendment Documents”).

 

(b)           Each Loan Party has taken all necessary corporate (or
analogous) action to authorize the execution, delivery and performance of each
Amendment Document.  No consent or
authorization of, filing with, notice to or other act by or in respect of, any
Governmental Authority or any other Person, including without limitation, FERC,
to which a Borrower or any of their Subsidiaries is subject, is required in
connection with the execution, delivery, performance, validity or
enforceability of the Amendment Documents, except (i) consents,
authorizations, filings and notices which have been obtained, made or taken and
are in full force and effect and (ii) the filings contemplated by Section 5.16
of the Credit Agreement.  Each Amendment
Document has been duly executed and delivered on behalf of each Loan
Party.  Each Amendment Document and the
Credit Agreement, as amended hereby (the “Amended Credit Agreement”) constitutes a legal,
valid and binding obligation of each Loan Party, as 

 

 

 

6

 

 

applicable, enforceable against such Loan
Party in accordance with its terms, except as enforceability may be limited by
applicable bankruptcy, insolvency, fraudulent conveyance, reorganization,
moratorium or other similar laws relating to or affecting creditors’ rights
generally, and subject to general equitable principles (whether considered in a
proceeding in equity or at law) and an implied covenant of good faith and fair
dealing.

 

(c)           The execution, delivery and performance of each Amendment
Document (i) will not violate any Requirement of Law, including any rules or
regulations promulgated by the FERC, in each case to the extent applicable to
or binding upon such Loan Party or its properties, (ii) will not violate a
material Contractual Obligation of any Borrower or any of their Subsidiaries,
except where such violation could not reasonably be expected to have a Material
Adverse Effect and (iii) will not result in, or require, the creation or
imposition of any Lien on any of their respective properties or revenues
pursuant to any such Requirement of Law or Contractual Obligation (other than
Liens created by the Security Documents in favor of the Collateral Agent for
the ratable benefit of the Secured Parties and Permitted Liens).

 

(d)           Each of the representations and warranties made by any
Loan Party herein or in or pursuant to the Loan Documents is true and correct
in all material respects on and as of the Amendment Effective Date as if made
on and as of such date (except that any representation or warranty which by its
terms is made as of an earlier date shall be true and correct in all material
respects as of such earlier date).

 

(e)           After giving effect to this Amendment, no Default or Event
of Default has occurred and is continuing, or will result from the consummation
of the transactions contemplated by this Amendment.

 

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

 

11.           Limited
Effect.  Except as expressly provided
hereby, all of the terms and provisions of the Credit Agreement and the other
Loan Documents are and shall remain in full force and effect.  The amendments contained herein shall not be
construed as a waiver or amendment of any other provision of the Credit
Agreement or the other Loan Documents or for any purpose except as expressly
set forth herein or a consent to any further or future action on the part of
the Borrowers that would require the waiver or consent of the Administrative
Agent or the Lenders.

 

12.           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 LAW
OF THE STATE OF NEW YORK.

 

13.           Counterparts.  This Amendment may be executed in any number
of counterparts, all of which taken together shall constitute one and the same
agreement, and any of the parties hereto may execute this Amendment by signing
any such counterpart.  A set of the
copies of this Amendment signed by all the parties shall be lodged with the
Administrative Agent.  Delivery of an
executed signature page of this Agreement by facsimile transmission shall
be effective as delivery of a manually executed counterpart hereof.

 

14.           Binding
Effect.  The execution and delivery
of this Amendment by any Lender 

 

 

 

 

7

 

 

shall be binding upon each of its successors and assigns (including
assignees of its Loans in whole or in part prior to effectiveness hereof).

 

15.           Headings,
etc.  Section or other headings
contained in this Amendment are for reference purposes only and shall not in
any way affect the meaning or interpretation of this Amendment.

 

[SIGNATURE
PAGE FOLLOWS]

 

 

 

 

 

 

8

 

 

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.

 

 

 

	
   

  	
  BUCKEYE ENERGY SERVICES LLC,

  
	
   

  	
  as Borrower

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ 

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  FARM & HOME OIL COMPANY LLC,

  
	
   

  	
  as Borrower

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  BNP PARIBAS, as Administrative Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  BNP PARIBAS, as Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

 

 

 

 

 

 

Exhibit A

to First Amendment

 

ACKNOWLEDGMENT AND CONSENT

 

Reference is made to the FIRST AMENDMENT, dated as
of July 18, 2008 (the “Amendment”),
to the CREDIT AGREEMENT, dated as of May 20, 2008 (as modified hereby and
as further amended, supplemented or otherwise modified from time to time, the “Credit
Agreement”), among BUCKEYE ENERGY SERVICES LLC and FARM & HOME OIL
COMPANY LLC (the “Borrowers”), the several Lenders from time to time
parties thereto, and BNP PARIBAS, as administrative agent (the “Administrative
Agent”) and as collateral agent.. 
Unless otherwise defined herein, capitalized terms used herein and
defined in the Credit Agreement are used herein as therein defined.

 

Each of the undersigned parties to the Pledge
Agreement, dated as of May 20, 2008 hereby (a) consents to the
transactions contemplated by the Amendment and the Commitment Increase, and (b) acknowledges
and agrees that the grants of security interests made by such party contained
in the Pledge Agreement are, and shall remain, in full force and effect after
giving effect to the Amendment and the Commitment Increase.

 

Each of the undersigned parties to the Security
Agreement, dated as of May 20, 2008 hereby (a) consents to the
transactions contemplated by the Amendment and the Commitment Increase, and (b) acknowledges
and agrees that the grants of security interests made by such party contained
in the Security Agreement are, and shall remain, in full force and effect after
giving effect to the Amendment and the Commitment Increase.

 

Each of the undersigned parties to the Guarantee,
dated as of May 20, 2008 hereby (a) consents to the transactions
contemplated by the Amendment and the Commitment Increase, and (b) acknowledges
and agrees that the guarantees made by such party contained in the Guarantee
are, and shall remain, in full force and effect after giving effect to the
Amendment and the Commitment Increase.

 

THIS ACKNOWLEDGMENT AND
CONSENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES THEREUNDER SHALL BE
GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE
STATE OF NEW YORK. 

 

 

 

 

 

 

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

 

 

	
   

  	
  BUCKEYE ENERGY SERVICES LLC,

  
	
   

  	
  as Borrower

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  FARM & HOME OIL COMPANY LLC,

  
	
   

  	
  as Borrower

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:Exhibit 10.1

 

OCCIDENTAL
PETROLEUM CORPORATION

2005
LONG-TERM INCENTIVE PLAN

RETURN
ON EQUITY INCENTIVE AWARD

(Cash-based, Cash-settled Award)

 

	
  GRANTEE:

  	
   

  	
  [Name]

  
	
   

  	
   

  	
   

  
	
  DATE
  OF GRANT:

  	
   

  	
  July 16, 2008

  
	
   

  	
   

  	
   

  
	
  TARGET INCENTIVE AMOUNT:

  	
   

  	
  $                         

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  PERFORMANCE PERIOD:

  	
   

  	
  July 1, 2008 through June 30, 2011

  

 

 

THIS AGREEMENT is made as of the Date of Grant between OCCIDENTAL
PETROLEUM CORPORATION, a Delaware corporation (“Occidental” and, with its
subsidiaries, the “Company”), and Grantee.

 

1.                                     GRANT  OF
RETURN ON EQUITY INCENTIVE AWARD.  In accordance
with this Agreement and the Occidental Petroleum Corporation 2005 Long-Term
Incentive Plan, as the same may be amended from time to time (the “Plan”),
Occidental grants to the Grantee as of the Date of Grant, the right to receive
in Cash up to 200% of the Target Incentive Amount.

 

2.                                     RESTRICTIONS ON TRANSFER.  Neither this
Agreement nor any right to receive cash pursuant to this Agreement may be
transferred or assigned by the Grantee other than (i) to a beneficiary
designated on a form approved by the Company (if enforceable under local law),
by will or, if the Grantee dies without designating a beneficiary of a valid
will, by the laws of descent and distribution, or (ii) pursuant to a
domestic relations order, if applicable, (if approved or ratified by the
Committee).

 

3.                                     PERFORMANCE GOAL.  The Performance Goal for the Performance
Period is based on the attainment of at least a minimum Return on Equity (as
defined in Appendix A to the Plan), as set forth on Exhibit 1.  Return on Equity for the purposes of Exhibit 1
shall be calculated (i) by determining the Return on Equity for each
quarter in the three-year period ending June 30, 2011 by dividing the
Company’s Net Income (as defined in the Plan) for each such quarterly period by
the stockholder equity as of the end of such quarter, in each case as reported
in the financial statements of the Company and (ii) adding together the
calculated result for each of the 12 quarters.

 

4.                                     VESTING AND FORFEITURE OF RETURN ON EQUITY INCENTIVE AWARD.  (a) The Grantee must remain in the continuous
employ of the Company through the last day of the Performance Period to receive
payment of this award.  The continuous
employment of the Grantee will not be deemed to have been interrupted by reason
of the transfer of the Grantee’s employment among the Company and its
affiliates or an approved leave of absence. 
However, if, prior to the end of the Performance Period, the Grantee
dies or becomes permanently disabled while in the employ of the Company and
terminates employment as a result thereof, retires with the consent of the
Company, or terminates employment for the convenience of the Company (each of
the foregoing, a “Forfeiture Event”), then the Target Incentive Amount upon which
the Grantee’s award is based will be reduced on a pro rata basis based upon the
number of days remaining in the Performance Period following the date of the
Forfeiture Event.  If the Grantee
terminates 

 

 

1

 

employment voluntarily or is terminated for cause before the
end of the Performance Period, then the Target Incentive Amount is reduced to
zero.

 

(b)                                 The Grantee’s right to receive
payment in cash of this award in an amount not to exceed 200% of the Target
Incentive Amount will be based on, and become nonforfeitable upon the Committee’s
certification of, the attainment of the Performance Goal.

 

(c)                                 Notwithstanding Section 4(b),
if a Change in Control event occurs prior to the end of the Performance Period,
the Grantee’s right to receive cash equal to the Target Incentive Amount (as
adjusted for any Forfeiture Event pursuant to Section 4(a)) will become
nonforfeitable.

 

5.                                     PAYMENT OF AWARDS.  Up to and including 200% of the Target
Incentive Amount, as adjusted pursuant to Sections 4 and 6 of this Agreement,
will be settled in cash only.  Payment
will be made to the Grantee as promptly as practicable after the Committee’s
certification of the attainment of the Performance Goal or the Change in
Control event, as the case may be, which, in the case of payment upon
attainment of the Performance Goal, shall be made no later than the 15th
day of the third month following the end of the first taxable year in which the
award is no longer subject to a substantial risk of forfeiture.

 

6.                                     ADJUSTMENTS.  The Committee may adjust the Performance Goal
or other features of this Grant as permitted by Section 5.2.3 of the Plan.

 

7.                                     NO
EMPLOYMENT CONTRACT.  Nothing in this Agreement confers upon the
Grantee any right with respect to continued employment by the Company, nor
limits in any manner the right of the Company to terminate the employment or
adjust the compensation of the Grantee.  
 Unless otherwise
agreed in a writing signed by the Grantee and an authorized representative of
the Company, the Grantee’s employment with the Company is at will and may be
terminated at any time by the Grantee or the Company.

 

8.                                     TAXES
AND WITHHOLDING.  The Grantee is responsible for any federal,
state (including, as required by applicable law, the state in which the Grantee
resides on the Grant Date and the states in which the Grantee resides during
the vesting period), local or foreign tax, including income tax, social
insurance, payroll tax, payment on account or other tax-related withholding
with respect to this Return on Equity Incentive Award.  If the Company must withhold any tax in
connection with granting or vesting of this Return on Equity Incentive Award,
the Grantee by acknowledging this Agreement agrees that, so long as the Grantee
is an employee of the Company for tax purposes, all or any part of any such
withholding obligation shall be deducted first from cash payable pursuant to
this Return on Equity Award and, if not sufficient, then from the Grantee’s
wages or other cash compensation.  The
Grantee shall pay to the Company any amount that cannot be satisfied by the
means previously described.

 

9.                                     COMPLIANCE
WITH LAW.  The Company will make reasonable efforts to
comply with all applicable federal, state and foreign laws. However, if it is
not feasible for the Company to comply with these laws with respect to the
grant or settlement of these awards, then the awards may be cancelled without
any consideration or additional benefits provided to Grantee as a result of the
cancellation.

 

10.                              RELATION
TO OTHER BENEFITS.  The benefits received by the Grantee under
this Agreement will not be taken into account in determining any benefits to
which the Grantee may

 

 

2

 

be entitled under any profit sharing, retirement or other
benefit or compensation plan maintained by the Company, including the amount of
any life insurance coverage available to any beneficiary of the Grantee under
any life insurance plan covering employees of the Company.  Additionally, this Return on Equity Incentive Award is not part
of normal or expected compensation or salary for any purposes, including, but
not limited to calculation of any severance, resignation, termination,
redundancy, end of service payments, bonuses or long-service awards. 
The grant of this Return on Equity Incentive Award does not
create any contractual or other right to receive future grants of Return on Equity Incentive Awards or
benefits in lieu of Return on Equity Incentive Awards, even if Grantee has a
history of receiving Return on Equity Incentive Awards or other cash or stock
awards.

 

11.                              AMENDMENTS. 
The Plan may be modified, amended, suspended or terminated by the Board
at any time, as provided in the Plan. 
Any amendment to the Plan will be deemed to be an amendment to this
Agreement to the extent it is applicable to this Agreement; however, no
amendment will adversely affect the rights of the Grantee under this Agreement
without the Grantee’s consent.

 

12.                              SEVERABILITY. 
If one or more of the provisions of this Agreement is invalidated for
any reason by a court of competent jurisdiction, the invalidated provisions
shall be deemed to be separable from the other provisions of this Agreement,
and the remaining provisions of this Agreement will continue to be valid and
fully enforceable.

 

13.                              ENTIRE
AGREEMENT; RELATION TO PLAN; INTERPRETATION. 
Except as specifically provided in this Section, this Agreement and the
Attachments incorporated in this Agreement constitute the entire agreement
between the Company and the Grantee with respect to this Return on Equity
Incentive Award.  This Agreement is subject to the
terms and conditions of the Plan.  In the
event of any inconsistent provisions between this Agreement and the Plan, the
provisions of the Plan control. 
Capitalized terms used in this Agreement without definition have the
meanings assigned to them in the Plan. 
References to Sections and Attachments are to Sections of, and
Attachments incorporated in, this Agreement unless otherwise noted.

 

14.                              SUCCESSORS
AND ASSIGNS.  Subject to Sections 2 and 4, the provisions
of this Agreement shall be for the benefit of, and be binding upon, the
successors, administrators, heirs, legal representatives and assigns of the
Grantee, and the successors and assigns of the Company.

 

15.                              GOVERNING
LAW. 
The laws of the State of Delaware govern the interpretation,
performance, and enforcement of this Agreement.

 

16.                              PRIVACY RIGHTS.  By accepting this Return on Equity Incentive Award, the Grantee explicitly and unambiguously
consents to the collection, use and transfer, in electronic or other form, of
the Grantee’s personal data as described in this Agreement by and among, as
applicable, the Company and its affiliates for the exclusive purpose of
implementing, administering and managing the Grantee’s participation in the
Plan.  The
Company holds, or may receive from any agent designated by the Company, certain
personal information about the Grantee, including, but not limited to, the
Grantee’s name, home address and telephone number, date of birth, social
insurance number or other identification number, salary, nationality, job
title, any shares of stock or directorships held in the Company, details of
this Return on
Equity Incentive Award or any other entitlement to
cash or shares of stock awarded, canceled, exercised, vested, unvested or
outstanding in the Grantee’s favor, for the purpose of

 

 

3

 

implementing,
administering and managing the Plan, including complying with applicable tax
and securities laws (“Data”).  Data may
be transferred to any third parties assisting in the implementation,
administration and management of the Plan. 
These recipients may be located in the Grantee’s country or elsewhere,
and may have different data privacy laws and protections than the Grantee’s
country.  By accepting this Agreement,
the Grantee authorizes the recipients to receive, possess, use, retain and
transfer the Data, in electronic or other form, for the purposes described
above.  The Grantee may, at any time,
view Data, request additional information about the storage and processing of
Data, require any necessary amendments to Data or refuse or withdraw the
consents herein, in any case without cost, by contacting the Committee in writing.  Refusing or withdrawing consent may affect
the Grantee’s ability to participate in the Plan.

 

17.                              ELECTRONIC DELIVERY.  The Company may, in its sole discretion,
decide to deliver any documents related to this Return on Equity Incentive Award granted
under the Plan or future awards that may be granted under the Plan (if any) by
electronic means or to request the Grantee’s consent to participate in the Plan
by electronic means.  The Grantee hereby
consents to receive such documents by electronic delivery and, if requested, to
participate in the Plan through an on-line or electronic system established and
maintained by the Company or another third party designated by the Company.

 

18.                              GRANTEE’S REPRESENTATIONS AND RELEASES.  By accepting this Return on Equity Incentive Award, the
Grantee acknowledges that the Grantee has read this Agreement and understands
that (i) the grant of this Return on Equity Incentive Award is made
voluntarily by Occidental in its discretion with no liability on the part of
any of its direct or indirect subsidiaries and that, if the Grantee is not an
employee of Occidental, the Grantee is not, and will not be considered, an
employee of Occidental but the Grantee is a third party (employee of a
subsidiary) to whom this Return on Equity Incentive Award is granted; (ii) the
Grantee’s participation in the Plan is voluntary; (iii) the future amount
of any cash payment pursuant to this Return on Equity Incentive Award cannot be
predicted and Occidental does not assume liability in the event this Return on Equity Incentive Award has no value
in the future; and (iv) subject to the terms of any tax equalization
agreement between the Grantee and the entity employing the Grantee, the Grantee
will be solely responsible for the payment or nonpayment of taxes imposed or
threatened to be imposed by any authority of any jurisdiction.

 

In consideration of the grant of
this Return on
Equity Incentive Award, no claim or entitlement to compensation or damages
shall arise from termination of this Return on Equity Incentive Award or
diminution in value of this Return on Equity Incentive Award resulting
from termination of the Grantee’s employment by the Company (for any reason
whatsoever) and, to the extent permitted by law,  the Grantee irrevocably releases the Company
from any such claim that may arise; if, notwithstanding the foregoing, any such
claim is found by a court of competent jurisdiction to have arisen, then, by
accepting this Agreement, the Grantee shall be deemed irrevocably to have
waived his or her entitlement to pursue such claim.

 

By accepting this Return on Equity Incentive Award, the
Grantee agrees, to the extent not contrary to applicable law, to the General
Terms of Employment set out on Attachment 1 and the Arbitration Provisions set
out on Attachment 2, which, in each case, are incorporated in this Agreement by
reference.

 

19.                              RELATION TO EMPLOYMENT AGREEMENT.  In the event of any inconsistent provisions
between this Agreement and any employment agreement between the Grantee and the

 

 

4

 

Company, the provisions of this Agreement control
except with respect to Attachment 2 Arbitration Provisions.

 

20.                              COMPLIANCE WITH SECTION 409A OF THE CODE.  Notwithstanding anything to
the contrary contained in this Agreement, to the extent that the Board
determines that the Plan or this award is subject to Section 409A of the
Code and fails to comply with the requirements of Section 409A of the
Code, the Board reserves the right (without any obligation to do so) to amend
or terminate the Plan and/or amend, restructure, terminate or replace this
award in order to cause this award to either not be subject to Section 409A
of the Code or to comply with the applicable provisions of such section.

 

IN WITNESS WHEREOF, the
Company has caused this Agreement to be executed on its behalf by its duly
authorized officer and Grantee has also executed this Agreement in duplicate.

 

 

	
   

  	
  OCCIDENTAL PETROLEUM CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  

 

 

 

The undersigned Grantee hereby accepts this Return on Equity Incentive
Award, subject to the terms and conditions of the Plan and the terms and
conditions set forth in this Agreement.

 

 

	
   

  	
   

  	
   

  
	
   

  	
  Grantee

  
	
   

  	
   

  
	
   

  	
  Date:

  	
   

  	
   

  
				

 

 

5

 

EXHIBIT
1

2005 Long-Term Incentive Plan

 

2008 Return on Equity Incentive Award

 

(Payment Percentage of Target Incentive Amount of Return on
Equity Incentive Award 

that becomes Nonforfeitable

Based on Sum of Return on Equity for Each of the Twelve Quarters in the Three
Year 

Period Ending June 30, 2011)

 

	
  Sum of Return on Equity

  	
   

  	
  Payment Percentage*

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  54%

  	
   

  	
  200%

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  33%

  	
   

  	
  0%

  	
   

  

 

 

*              Payment Percentages for Return on
Equity for other values between 33% and 54% will be interpolated in the
Committee’s discretion.

 

 

6

 

Attachment 1

 

General Terms of Employment

 

A.                                   Except as
otherwise required by law or legal process, the Grantee will not publish or
divulge to any person, firm, corporation or institution and will not use to the
detriment of Occidental, or any of its subsidiaries or other affiliates, or any
of their respective officers, directors, employees or stockholders
(collectively, “Occidental Parties”), at any time during or after the Grantee’s
employment by any of them, any trade secrets or confidential information of any
of them (whether generated by them or as a result of any of their business
relationships), including such information as described in Occidental’s Code of
Business Conduct and other corporate policies, without first obtaining the
written permission of an officer of the Company.

 

B.                                   At the
time of leaving employment with the Company, the Grantee will deliver to the
Company, and not keep or deliver to anyone else, any and all credit cards,
drawings, blueprints, specifications, devices, notes, notebooks, memoranda,
reports, studies, correspondence and other documents, and, in general, any and
all materials relating to the Occidental Parties (whether generated by them or
as a result of their business relationships), including any copies (whether in
paper or electronic form), that the Grantee has in the Grantee’s possession or
control.

 

C.                                   The
Grantee will, during the Grantee’s employment by the Company, comply with the
provisions of Occidental’s Code of Business Conduct.

 

D.                                   Except as
otherwise required by the Grantee’s job or permitted by law, the Grantee will
not make statements about any Occidental Parties (1) to the press, to the electronic
media, to any part of the investment community, to the public, or to any person
connected with, employed by or having a relationship with any of them without
permission of an officer of the Company, or (2) that are derogatory,
defamatory or negative.  Nothing herein,
however, shall prevent Grantee from making a good faith report or complaint to
appropriate governmental authorities.  To
the fullest extent permitted by law, Grantee will not interfere with or disrupt
any of the Company’s operations or otherwise take actions intended directly to
harm any of the Occidental Parties.

 

E.                                   All
inventions, developments, designs, improvements, discoveries and ideas that the
Grantee makes or conceives in the course of employment by the Company, whether
or not during regular working hours, relating to any design, article of
manufacture, machine, apparatus, process, method, composition of matter,
product or any improvement or component thereof, that are manufactured, sold,
leased, used or under development by, or pertain to the present or possible
future business of the Company shall be a work-for-hire and become and remain
the property of Occidental, its successors and assigns.

 

The provisions of this Section do not apply to an
invention that qualifies fully under the provisions of Section 2870 of the
California Labor Code, which provides in substance that provisions in an
employment agreement providing that an employee shall assign or offer to
assign rights in an invention to his or her employer do not apply to an
invention for which no equipment, supplies, facilities, or trade secret
information of the employer was used and which was developed entirely on
the employee’s own time, except for those inventions that either (a) relate,
at the time of conception or reduction to practice of the invention, (1) to
the business of the employer or (2) to the employer’s actual or
demonstrably anticipated research or development, or (b) result from any
work performed by the employee for the employer.

 

 

7

 

F.                                    The
foregoing General Terms of Employment are not intended to be an exclusive list
of the employment terms and conditions that apply to the Grantee.  The Company, in its sole discretion, may at
any time amend or supplement the foregoing terms.  The Grantee’s breach of the foregoing General
Terms of Employment will entitle the Company to take appropriate disciplinary
action, including, without limitation, reduction of the Return on Equity
Incentive Award granted pursuant to this Agreement and termination of
employment.

 

 

8

 

Attachment 2

 

Arbitration Provisions

 

Any
dispute arising out of or in any way related to the Grantee’s employment with
the Company, or the termination of that employment, will be decided exclusively
by final and binding arbitration pursuant to any procedures required by
applicable law.  To the extent not
inconsistent with applicable law, any arbitration will be submitted to American
Arbitration Association (“AAA”) and subject to AAA Employment Arbitration Rules and
Mediation Procedures in effect at the time of filing of the demand for
arbitration.  Only the following claims
are excluded from this Agreement: (1) claims for workers’ compensation,
unemployment compensation, or state disability benefits, and claims based upon
any pension or welfare benefit plan the terms of which contain an arbitration
or other non-judicial dispute resolution procedure, (2) to the extent
permitted by applicable law, claims for provisional remedies to maintain the
status quo pending the outcome of arbitration, (3) claims based on employee
compensation award agreements and incentive plans and (4) claims which are
not permitted by applicable law to be subject to a binding pre-dispute
arbitration agreement.

 

Any
controversy regarding whether a particular dispute is subject to arbitration under
this Section shall be decided by the arbitrator.

 

To the
extent required under applicable law, the Grantee’s responsibility for payment
of the neutral arbitrator’s fees and expenses shall be limited to an amount
equal to the filing fee that would be required for a state trial court action
and the Company shall pay all remaining fees and expenses of the
arbitrator.  Unless otherwise required
under applicable law, the parties shall each pay their pro rata share of the
neutral arbitrator’s expenses and fees. 
Any controversy regarding the payment of fees and expenses under this
arbitration provision shall be decided by the arbitrator.

 

The
arbitrator may award any form of remedy or relief (including injunctive relief)
that would otherwise be available in court. 
Any award pursuant to said arbitration shall be accompanied by a written
opinion of the arbitrator setting forth the reason for the award.  The award rendered by the arbitrator shall be
conclusive and binding upon the parties hereto, and judgment upon the award may
be entered, and enforcement may be sought in, any court of competent
jurisdiction. To the extent not inconsistent with applicable laws, the
arbitrator will have the authority to hear and grant motions.

 

 

9

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