Document:

tplm_EX_10_1

		
			Exhibit 10.1
		

		
			 
		

		
			EXECUTION VERSION
		

		
			 
		

		
			PLAN SUPPORT AGREEMENT
		

		
			 
		

		
			This PLAN SUPPORT AGREEMENT (the “Agreement”) is made and entered into on this 29th day of June, 2016, by and among (a) Triangle USA Petroleum Corporation (“TUSA”), Ranger Fabrication, LLC (“Ranger”), and their respective subsidiaries signatory hereto (collectively, the “Companies”); and (b) each of the undersigned noteholders (the “Participating Noteholders”) under that certain Indenture (as amended, supplemented, or otherwise modified from time to time, the “TUSA Notes Indenture”) dated as of July 18, 2014, among TUSA, the subsidiary guarantors named on the signature pages thereto, and Wilmington Trust, National Association as trustee (in such capacity, and any successor thereto, the “Indenture Trustee”). Each of the parties referred to in clauses (a) through (b) above is referred to herein as a “Party” and collectively as the “Parties”.
		

		
			 
		

		
			RECITALS
		

		
			 
		

		
			WHEREAS, the Companies have determined that a restructuring (the “Restructuring”) of, among other things, the TUSA Notes and certain other obligations of, and existing equity interests in, the Companies is necessary and would be in the best interests of the Companies and their stakeholders;
		

		
			 
		

		
			WHEREAS, as of the date of this Agreement, the Companies are obligated to, among other parties, the Holders (as such term is defined in the TUSA Notes Indenture, the “TUSA Noteholders”) of the TUSA Notes under the TUSA Notes Indenture in the aggregate principal amount of approximately $380,799,000;
		

		
			 
		

		
			WHEREAS, the Companies believe that prompt consummation of a Restructuring in accordance with the terms of this Agreement and the terms of the term sheet attached as Exhibit A hereto (the “Term Sheet”) is in the best interests of the Companies’ stakeholders (including creditors and other parties in interest);
		

		
			 
		

		
			WHEREAS, the Parties desire to consummate the Restructuring in accordance with the terms of this Agreement and the terms of the Term Sheet;
		

		
			 
		

		
			WHEREAS, the Restructuring will be effected through the commencement of chapter 11 bankruptcy cases for the Companies in the United States Bankruptcy Court for the District of Delaware (the “Bankruptcy Court”);
		

		
			 
		

		
			WHEREAS, the Parties desire to work together to complete the negotiation of the terms of the documents necessary to confirm and consummate a chapter 11 plan of reorganization for the Companies consistent with this Agreement and the Term Sheet; and
		

		
			 
		

		
			WHEREAS, this Agreement is not intended to be and shall not be deemed to be a solicitation for acceptances of any chapter 11 plan.
		

		
			 
		

		
			NOW, THEREFORE, in exchange for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Parties, intending to be legally bound, hereby agree as follows:
		

		
			
		

		
			

		 

 

 
		

		
			Section 1.Definitions and Interpretation.
		

		
			 
		

		
			(a)The following terms used in this Agreement shall have the following definitions:
		

		
			 
		

		
			“Agreement” has the meaning set forth in the preamble hereof. For the avoidance of doubt, the Agreement includes the Term Sheet.
		

		
			 
		

		
			“Alternative Transaction” means (a) a plan of reorganization or other financial or corporate restructuring of the Companies on terms materially different than those set forth in the Term Sheet; (b) the sale or disposition of  the Companies’ assets (other than a sale of de minimis or non-core assets); (c) a merger, consolidation, business combination, liquidation, or recapitalization of the Companies; or (d) any similar transaction involving the Companies on terms materially different than those set forth in the Term Sheet, including, for the avoidance of doubt, any transaction accomplished through a transaction involving a debt restructuring of TPC’s funded indebtedness.
		

		
			 
		

		
			“Approved Parties” has the meaning set forth in Section 6.
		

		
			 
		

		
			“Backstop” means a commitment of the Backstop Parties to backstop the New Money Rights Offering, as set forth in the Term Sheet, subject to definitive documentation and acceptable to the Participating Noteholders in their sole and absolute discretion. The terms of the Backstop shall be negotiated in good faith among the Companies and the Backstop Parties, and which, if accepted by the Companies and the Participating Noteholders, shall be appended to, and made part of, this Agreement.
		

		
			 
		

		
			“Backstop Party” means a Participating Noteholder that has agreed to backstop the New Money Rights Offering.
		

		
			 
		

		
			“Bankruptcy Cases” means proceedings under chapter 11 of the Bankruptcy Code for the Companies.
		

		
			 
		

		
			“Bankruptcy Code” means title 11 of the United States Code, 11 U.S.C. §§ 101-1532.
		

		
			 
		

		
			“Bankruptcy Court” has the meaning set forth in the recitals hereof.
		

		
			 
		

		
			“Business Day” means any day other than Saturday, Sunday, and any day that is a legal holiday or a day on which banking institutions in New York, New York are authorized by law or other governmental action to close.
		

		
			 
		

		
			“Caliber” means Caliber Midstream Partners, L.P., together with its direct and indirect controlled subsidiaries and affiliates.
		

		
			 
		

		
			“Caliber Investor” means the holder of the majority of limited partnership interests in Caliber.
		

		
			 
		

		
			“Caliber Rejection Damages Claim” has the meaning ascribed to it in the Term Sheet.
		

		
			
		

		
			

		 

		

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			“Companies” has the meaning set forth in the preamble hereof.
		

		
			 
		

		
			“Company Termination Event” means any event specified in Section 10(c) hereof.
		

		
			 
		

		
			“Confidential Information” has that meaning set forth in each applicable NDA between a Participating Noteholder and the Companies.
		

		
			 
		

		
			“Debtors” means the Companies as they may be operating under chapter 11 of the Bankruptcy Code.
		

		
			 
		

		
			“Disclosure Statement” means a disclosure statement with respect to the Plan consistent with the requirements of section 1125 of the Bankruptcy Code.
		

		
			 
		

		
			“Effective Date” means the date on which the Plan is substantially consummated.
		

		
			 
		

		
			“Indenture Trustee” has the meaning set forth in the preamble hereof.
		

		
			 
		

		
			“Joinder” has the meaning set forth in Section 7 hereof.
		

		
			 
		

		
			“Milestones” means the respective dates set forth in Sections 10(a)(i)—(vii) and (xvi) of this Agreement.
		

		
			 
		

		
			“MIP” means a management incentive plan for the management of reorganized TUSA that provides for compensation comprised of cash and securities. The terms of the MIP shall be negotiated in good faith among the Companies and the Participating Noteholders and shall be set forth in a term sheet, which, once accepted by the Companies and the Participating Noteholders shall be appended to, and made part of, this Agreement or the Plan.
		

		
			 
		

		
			“NDA” means a non-disclosure agreement, confidentiality agreement, or other agreement of similar import.
		

		
			 
		

		
			“New Money Rights Offering” means a rights offering under the Plan, to be set forth in the Backstop.
		

		
			 
		

		
			“New Revolving Credit Facility” means a new first-priority, reserve-based credit facility for reorganized TUSA, as set forth in the Term Sheet.
		

		
			 
		

		
			“New TUSA Board” means the board of directors of reorganized TUSA.
		

		
			 
		

		
			“Noteholder Termination Event” means any event specified in Section 10(a) hereof.
		

		
			 
		

		
			“Participating Noteholders” has the meaning set forth in the preamble hereof.
		

		
			 
		

		
			“Parties” has the meaning set forth in the preamble hereof.
		

		
			 
		

		
			“Person” has the meaning set forth in section 101(41) of the Bankruptcy Code.
		

		
			 
		

		
			“Petition Date” means the date on which the Companies commence the Bankruptcy Cases.
		

		
			
		

		
			

		 

		

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			“Plan” means a prearranged chapter 11 plan of reorganization that implements the Restructuring.
		

		
			 
		

		
			“Plan Documents” means the Plan and Disclosure Statement and all exhibits, schedules, and other documents ancillary thereto, all of which shall be consistent in all material respects with this Agreement. For the avoidance of doubt, “Plan Documents” shall include but not be limited to the organizational documents for the reorganized TUSA Companies and definitive documentation for the New Money Rights Offering, the Backstop, and the MIP.
		

		
			 
		

		
			“Qualifying Marketmaker” means any Person that holds itself out to the public or to applicable private markets as standing ready in the ordinary course of business to purchase from customers and sell to customers TUSA Notes in its capacity as a broker-dealer or market maker for such TUSA Notes and is in fact regularly in the business of making a market in such TUSA Notes.
		

		
			 
		

		
			“Rejection Order” has the meaning set forth in Section 10 hereof.
		

		
			 
		

		
			“Required Participating Noteholders” means as of any date of determination, Participating Noteholders holding at least two-thirds of the aggregate principal amount of the TUSA Notes then outstanding and representing more than one-half of the Participating Noteholders holding TUSA Notes.
		

		
			 
		

		
			“Ranger” has the meaning set forth in the preamble hereof.
		

		
			 
		

		
			“Ranger Companies” means, collectively, Ranger, Ranger Fabrication Management Holdings, LLC, and Ranger Fabrication Management, LLC.
		

		
			 
		

		
			“Ranger Distribution” means a cash distribution to general unsecured creditors of the Ranger Companies under the Plan in an amount to be agreed upon among the Companies and the Required Participating Noteholders.
		

		
			 
		

		
			“Rejection Order” has the meaning set forth in Section 10 hereof.
		

		
			 
		

		
			“Restructuring” means the transactions contemplated by this Agreement.
		

		
			 
		

		
			“Solicitation” means the Companies’ formal request for acceptances of the Plan, consistent with section 1125 and 1126 of the Bankruptcy Code, rules 3017 and 3018 of the Federal Rules of Bankruptcy Procedure, and applicable non-bankruptcy law. The Solicitation may be conducted before or after the Petition Date, as determined by the Companies in consultation with the Participating Noteholders.
		

		
			 
		

		
			“Specified Caliber Contracts” means (a) that certain Amended and Restated Midstream Services Agreement (Crude Oil) dated September 12, 2013, by and between Caliber North Dakota LLC and TUSA; (b) that certain Amended and Restated Midstream Services Agreement dated September 12, 2013, by and between Caliber North Dakota LLC and TUSA; (c) that certain Gathering Services Agreement (LACT Units) dated September 12, 2013 by and between Caliber Measurement Services LLC and TUSA; (d) to that certain Gathering Services Agreement (LACT Units) dated September 12, 2013 by and between Caliber Measurement Services LLC
		

		
			
		

		
			

		 

		

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			and TUSA; (e) that certain NGL Handling Agreement dated June 16, 2015 by and between Caliber North Dakota LLC and TUSA; (f) that certain Fresh Water Sales Agreement dated May 13, 2014 by and between Caliber Midstream Fresh Water Partners LLC and TUSA; and (g) that certain Revenue Commitment Agreement dated as of September 12, 2013 by and between Caliber North Dakota and TUSA; provided,  however, that the Companies may add or remove midstream services agreements from the foregoing list in their reasonable discretion.
		

		
			 
		

		
			“Termination Event” means a Company Termination Event or a Noteholder Termination Event, as applicable.
		

		
			 
		

		
			“Term Sheet” has the meaning set forth in the recitals hereof and includes all exhibits thereto.
		

		
			 
		

		
			“Transfer” means any assignment, sale, transfer, or acquisition of any TUSA Notes.
		

		
			 
		

		
			“TPC” means Triangle Petroleum Corporation.
		

		
			 
		

		
			“TPC Noteholder” means NGP Triangle Holdings, LLC, as purchaser and holder of that certain 5.0% Convertible Promissory Note made by TPC on July 31, 2012.
		

		
			 
		

		
			“Triangle” means TPC and its direct and indirect controlled affiliates and subsidiaries, including the TUSA Companies and the Ranger Companies.
		

		
			 
		

		
			“TUSA” has the meaning set forth in the preamble hereof.
		

		
			 
		

		
			“TUSA Companies” means, collectively, TUSA, Foxtrot Resources LLC, and Leaf Minerals, LLC.
		

		
			 
		

		
			“TUSA Notes” means the 6.75% Senior Notes due 2022 issued under the TUSA Notes Indenture.
		

		
			 
		

		
			“TUSA Noteholders” has the meaning set forth in the preamble hereof.
		

		
			 
		

		
			“TUSA Notes Indenture” has the meaning set forth in the preamble hereof.
		

		
			 
		

		
			“TUSA RBL” means the first-priority reserve-based credit facility, in the outstanding principal amount of approximately $305,814,686 as of the date hereof (exclusive of letter of credit exposure), pursuant to that certain Second Amended and Restated Credit Agreement dated as of November 24, 2014, among TUSA, as borrower, Wells Fargo Bank, National Association, as administrative agent and issuing lender, and the several lenders from time to time party thereto.
		

		
			 
		

		
			“Withdrawing Noteholder” has the meaning set forth in Section 14 hereof.
		

		
			 
		

		
			(b)Other Interpretive Provisions. The word “include” and its various forms shall be read as if followed by the phrase “without limitation”. “Will” and “shall” have the same meaning. Where appropriate in context, terms used in this Agreement shall include both the singular and the plural. Headings are for convenience only and shall not affect the interpretation
		

		
			
		

		
			

		 

		

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			of this Agreement. References to other agreements herein are references to such agreements as amended, supplemented, or otherwise modified from time to time.
		

		
			 
		

		
			Section 2.The Restructuring; Incorporation of the Term Sheet. The Restructuring will be accomplished pursuant to a Plan consistent with the Term Sheet. The Term Sheet is incorporated herein by reference and is made part of this Agreement. If the terms as set forth in the Plan and this Agreement are inconsistent, the terms of the Plan shall govern, provided that nothing in this Agreement shall be deemed to obligate any Participating Noteholder from being bound to support any Plan that is materially inconsistent with the Term Sheet or this Agreement.
		

		
			 
		

		
			Section 3.Implementation of the Restructuring.
		

		
			 
		

		
			(a)Following the execution of this Agreement, the Participating Noteholders and the Companies shall continue to negotiate in good faith the additional terms of the Plan Documents, which shall be consistent in all material respects with this Agreement and the Term Sheet and shall be in form and substance acceptable to the Participating Noteholders and the Companies. The Companies will effectuate the Restructuring by commencing the Bankruptcy Cases and Soliciting acceptances, and seeking confirmation, of the Plan.
		

		
			 
		

		
			(b)This Agreement is not and shall not be deemed to be a solicitation of acceptances of the Plan. The acceptances of the Participating Noteholders will not be solicited until after the forms of the Plan and Disclosure Statement have been agreed to by the Companies and the Participating Noteholders, and such Solicitation shall occur in accordance with the applicable provisions of the Bankruptcy Code and applicable non-bankruptcy law.
		

		
			 
		

		
			Section 4.Consultation and Cooperation. The Companies and the Participating Noteholders agree to reasonably consult and cooperate with each other in connection with any material analyses, appearances, presentations, briefs, filings, arguments, or proposals made or submitted by any such Party to the Bankruptcy Court or parties in interest in the Bankruptcy Cases or in connection with the Restructuring. The Companies and the Participating Noteholders agree to consult with each other reasonably in advance of any public disclosure regarding the terms of the Plan prior to the filing thereof except (a) with respect to any disclosures made, and to the extent of any such disclosures, in filing in, or in hearings with respect to, the Bankruptcy Cases, or (b) to the extent necessary to comply with the Parties’ obligations under applicable law or regulation.
		

		
			 
		

		
			Section 5.Effectiveness. This Agreement shall only become effective on the day on which counterparts of this Agreement have been duly executed by, and exchanged among, each of the Companies and holders of TUSA Notes constituting Required Participating Noteholders, provided that that this Agreement shall not be binding on or enforceable against any Party, and no Party shall have any rights or obligations under this Agreement, and this Agreement shall be null and void, if it has not been executed by holders of TUSA Notes constituting Required Participating Noteholders on or before the Petition Date.
		

		
			
		

		
			

		 

		

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			Section 6.Agreements of the Companies. Subject to the terms and conditions hereof, and for so long as no Company Termination Event shall have occurred, and except as the Required Participating Noteholders may expressly release the Companies in writing from any of the following obligations:
		

		
			 
		

		
			(a)Subject to the terms and conditions of Section 22, the Companies shall provide to the Participating Noteholders or their professional advisors such information and due diligence materials as the Participating Noteholders reasonably request to evaluate the transactions contemplated by this Agreement, and shall cause their management and advisors to meet with the Participating Noteholders and their professional advisors at reasonable times upon request of the Participating Noteholders, including, on an advisors’ eyes only basis, information required to be provided to the administrative agent under the TUSA RBL pursuant to paragraph 3(f) of the interim cash collateral order.
		

		
			 
		

		
			(b)The Companies agree (i) to prepare the Plan Documents, (ii) to provide draft copies of the Plan Documents and material “first-day” motions to the Participating Noteholders or their professional advisors within a reasonable amount of time prior to the launch of the Solicitation, the Petition Date, or the date the Companies plan to file such documents with the Bankruptcy Court, as applicable, and (iii) that they shall, except in circumstances where it is not reasonably practicable or prudent to do so, provide draft copies of all other material motions, applications, and other documents the Companies intend to file with the Bankruptcy Court to counsel for the Participating Noteholders reasonably in advance of filing such documents with the Bankruptcy Court, and shall consult in good faith with the Participating Noteholders and their counsel regarding the form and substance of any such proposed filings.
		

		
			 
		

		
			(c)The Companies agree to use commercially reasonable efforts to (i) complete the Restructuring under the Plan Documents; (ii) take all reasonably necessary and appropriate actions in furtherance of the Restructuring and all other actions contemplated under this Agreement, the Term Sheet, or the Plan Documents; and (iii) not take any actions inconsistent with this Agreement, the Term Sheet, or the Plan Documents.
		

		
			 
		

		
			(d)The Companies shall (i) prior to the Petition Date, fund a retainer of $200,000 to fund the reasonable, actual, and documented fees and expenses to be incurred by the Participating Noteholders in connection with this Agreement and the transactions contemplated thereby from the Petition Date through the date of entry of the Assumption Order by the Bankruptcy Court; (ii) prior to the Petition Date, pay in the ordinary course in full such reasonable, actual, and documented fees and expenses; and (iii) as long as this Agreement remains in effect, continue to promptly pay the reasonable, actual, and documented fees and expenses of the Participating Noteholders from and after the commencement (and through the conclusion) of the Bankruptcy Cases and through the earlier of (A) the termination of this Agreement, however caused, and (B) the Effective Date; provided,  however, that that the Companies’ obligation pursuant to this Section 6(d) shall be limited to one financial advisor; one primary counsel; one local counsel for Delaware; and, with the consent of the Companies, not to be unreasonably withheld, one additional counsel for each relevant jurisdiction (other than Delaware) and legal specialty.
		

		
			
		

		
			

		 

		

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			(e)The Plan shall include comprehensive indemnification and mutual release provisions, as set forth in Section 8 hereof.
		

		
			 
		

		
			(f)The Companies shall file, within one Business Day of the Petition Date, a motion seeking entry of an order authorizing the TUSA Companies to use cash collateral, which motion shall be in form and substance reasonably acceptable to the Participating Noteholders. The Companies shall use commercially reasonable efforts to obtain entry of an interim cash collateral order as soon as possible, but in no event later than five Business Days after the Petition Date.
		

		
			 
		

		
			(g)The Companies will use commercially reasonable efforts to finalize the drafting of the Backstop, the Plan, Disclosure Statement, and related documents, as soon as reasonable practicable, but in no event later than the dates “Milestones”, and to take all such actions as may be necessary or appropriate to obtain confirmation of the Plan.
		

		
			 
		

		
			(h)The Companies shall use their commercially reasonable efforts to take, or cause to be taken, all actions, and to do, or cause to be done, all things necessary, proper, or advisable under applicable laws and regulations to consummate and make effective the transactions contemplated by the Plan at the earliest date practicable.
		

		
			 
		

		
			(i)The Companies shall not, directly or indirectly seek, solicit, support, pursue, propose, negotiate, or encourage the solicitation, pursuit, proposal, support, or negotiation of any Alternative Transaction or plan of reorganization that is inconsistent with the Plan; provided,  however, that notwithstanding anything set forth herein, it is understood and agreed that the Companies and the Participating Noteholders shall be entitled to entertain discussions with the TPC Noteholder, Caliber, and the Caliber Investor (together, the “Approved Parties”), concerning the Approved Parties’ interest in participating in the Plan or amendments to the Plan; provided further,  however, that (i) the Companies shall provide reasonable and detailed updates to the Participating Noteholders on the status of such discussions to the extent such discussions occur between the Companies and any Approved Party; (ii) the Participating Noteholders shall be entitled to participate in such discussions; (iii) any amendments to the Plan that arise out of such discussions shall be reasonably acceptable to the Required Participating Noteholders (subject, for the avoidance of doubt, to the rights of each Participating Noteholder under Section 14); and (iv) in the event the Participating Noteholders reasonably conclude that such discussions are not in the best interests of the timely pursuit of consummation of the Plan (including any amendments thereto that must be acceptable to them in accordance with clause (iii) above), the Participating Noteholders may notify the Companies, at which point the Companies will immediately (A) terminate such discussions or (B) elect to exercise their rights under Section 10(e).
		

		
			 
		

		
			(j)The Companies shall not file any motion or pleading with the Bankruptcy Court that is inconsistent in any material respect with this Agreement or the Plan without the prior consent of the  Participating Noteholders.
		

		
			 
		

		
			(k)Except as otherwise contemplated  by this Agreement and the Term Sheet, from the date hereof through the Effective Date, the Companies shall use commercially reasonable efforts to (i) conduct their businesses in the ordinary course of business and preserve
		

		
			
		

		
			

		 

		

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the material business relationships with customers, suppliers, distributors, and others with whom the Companies deal in the ordinary course of business; (ii) maintain the Companies’ assets in good working condition and repair (normal wear and tear excepted), pay expenses and  payables, and collect accounts receivable; and (iii) comply in all material respects with all laws and contracts, maintain all material permits relating to the Companies’ businesses, and  pay all applicable taxes that the Companies are required to pay (taking into account any relief pursuant to the Bankruptcy Cases).
		

		
			 
		

		
			Section 7.Agreements of the Participating Noteholders.
		

		
			 
		

		
			(a)Subject to the terms and conditions hereof, and for so long as no Noteholder Termination Event shall have occurred, and except as the Companies may expressly release the Participating Noteholders in writing from any of the following obligations, each Participating Noteholder shall:
		

		
			 
		

		
			(i)        (A) deliver its duly executed and completed ballot voting its unsecured claims in respect of the TUSA Notes in favor of the Plan on a timely basis, provided that its vote on the Plan has been properly solicited pursuant to applicable non-bankruptcy law and sections 1125 and 1126 of the Bankruptcy Code and Rules 3017 and 3018 of the Federal Rules of Bankruptcy Procedure; and (B) not change or withdraw such agreement or vote (or cause or direct such agreement or vote to be changed or withdrawn);
		

		
			 
		

		
			(ii)       not object to, delay, impede, or take any other action to interfere, directly or indirectly, with the Restructuring or the Plan Documents, or propose, file, support, or vote for, directly or indirectly, any restructuring, workout, or chapter 11 plan for any of the Companies that is inconsistent with the Plan;
		

		
			 
		

		
			(iii)      not take any other action, including, without limitation, initiating or joining in any legal proceeding that is materially inconsistent with the Participating Noteholders’ obligations under this Agreement;
		

		
			 
		

		
			(iv)       authorize any actions by the Indenture Trustee necessary to implement any of the obligations of the Participating Noteholders hereunder and to effectuate the Restructuring; provided,  however, that no Participating Noteholder shall be required to offer the Indenture Trustee security or indemnity under section 7.2(h) of the TUSA Notes Indenture, even if the Indenture Trustee refuses to take such action in the absence of such security or indemnity; provided further,  however, that the Participating Noteholders shall use commercially reasonable efforts to cause the Indenture Trustee to take such actions without security or indemnity;
		

		
			 
		

		
			(v)        support, and take all reasonable actions necessary or reasonably requested by the Companies to facilitate the approval and implementation of, the New Money Rights Offering and, as to the Backstop Parties only, Backstop the New Money Rights Offering as provided in this
		

		
			
		

		
			

		 

		

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			Agreement and the definitive documentation related thereto; provided,  however, that nothing in this Agreement or the Term Sheet shall constitute an offer or a legally binding obligation or commitment by any of the Participating Noteholders to (A) buy any of the securities referred to in the Plan Support Agreement or Term Sheet and/or (B) lend funds to the Companies or any other party, or otherwise participate in the Rights Offering or Backstop.
		

		
			 
		

		
			(b)Each Participating Noteholder hereby agrees on behalf of itself and its controlled affiliates (other than an affiliate acting solely in its capacity as a Qualifying Marketmaker) that, from delivery of its signature page until the termination of this Agreement, it shall not (and shall cause its controlled affiliates not to) Transfer any or all of its TUSA Notes unless (i) the transferee is a Participating Noteholder or (ii) simultaneously with such Transfer, the transferee delivers to the Parties to this Agreement an executed joinder substantially in the form attached hereto as Exhibit B (a “Joinder”), whereby such transferee agrees in writing to be bound by the terms of this Agreement, in which case such transferee shall be deemed to be a Participating Noteholder for all purposes herein from and after the date on which such Joinder is executed. Any Transfer of the TUSA Notes that does not comply with the foregoing shall be deemed void ab initio.
		

		
			 
		

		
			(c)Nothing in this Agreement shall be deemed to limit or restrict the ability or right of a Participating Noteholder or any controlled affiliate thereof to purchase or take assignment of any additional TUSA Notes; provided,  however, that, in the event a Participating Noteholder or any controlled affiliate thereof purchases or takes assignment of any such additional TUSA Notes after the effective date of this Agreement, such additional TUSA Notes shall immediately upon such acquisition become subject to the terms of this Agreement without any further action being required (or, in the case of a purchase by a controlled affiliate of a Participating Noteholder (other than an affiliate acting solely in its capacity as a Qualifying Marketmaker) by such Participating Noteholder, as applicable, shall cause its controlled affiliate to become subject to the terms of this Agreement in connection with such TUSA Notes).
		

		
			 
		

		
			Section 8.Releases and Indemnification. To the fullest extent permitted by applicable law, the Plan Documents, as applicable, shall provide for comprehensive indemnification and mutual release provisions from and for the benefit of the Companies, the Participating Noteholders, the Backstop Parties and the Indenture Trustee, and all individuals serving, or who have served, as a manager, director, managing member, officer, partner, shareholder, or employee of any of the foregoing, and the attorneys and other advisors to each of the foregoing.
		

		
			 
		

		
			Section 9.Representations and Warranties.
		

		
			 
		

		
			(a)Each Participating Noteholder represents and warrants, severally and not jointly, as of the date hereof, that:
		

		
			 
		

		
			(i)        such Participating Noteholder is the legal owner, beneficial owner, or holder of investment and voting authority over the aggregate principal amount of TUSA Notes set forth below its name on the signature pages hereto; and
		

		
			
		

		
			

		 

		

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			(ii)       such Participating Noteholder (A) is a sophisticated investor with respect to the transactions described in this Agreement with sufficient knowledge and experience in financial and business matters and is capable of evaluating the merits and risks of owning and investing in securities (including any securities that may be issued in connection with the transactions contemplated by the Plan), in making an informed decision with respect thereto and has made its own analysis and decision to enter into this Agreement and (B) is an “accredited investor” within the meaning of Rule 501 of the Securities Act of 1933, as amended; and
		

		
			 
		

		
			(b)Each Party represents and warrants, severally and not jointly, to the other Parties that the following statements, as applicable, are true, correct, and complete as of the date hereof:
		

		
			 
		

		
			(i)        it has all requisite, individual, corporate, partnership, or limited liability company power and authority to enter into this Agreement and to carry out the transactions contemplated hereby, and to perform its obligations hereunder;
		

		
			 
		

		
			(ii)       to the extent applicable, it is duly organized, validly existing, and in good standing under the laws of its state or jurisdiction of organization and it has the requisite power and authority to execute and deliver this Agreement and to perform its obligations hereunder;
		

		
			 
		

		
			(iii)      to the extent applicable, the execution and delivery of this Agreement and the performance of its obligations hereunder have been duly authorized by all necessary corporate, partnership, or limited liability company action on its part;
		

		
			 
		

		
			(iv)       subject to obtaining each of the approvals and consents set forth in Section 9(b)(v), the execution, delivery, and performance of this Agreement does not and shall not (A) violate any provision of law, rule, or regulation applicable to it, except to the extent the failure to comply therewith could not reasonably be expected to have a material adverse effect on its ability to perform its obligations hereunder; (B) to the extent applicable, violate its articles or certificate of incorporation, bylaws, or other organizational documents, except as contemplated in the Plan Documents; or (C) conflict with, result in a breach of, or constitute (with due notice or lapse of time or both) a default under, any material contractual obligation to which it or any of its subsidiaries is a party, except to the extent such contractual obligation relates to the TUSA Notes Indenture or related documents or the filing of a case under the Bankruptcy Code or insolvency of the Companies;
		

		
			 
		

		
			(v)        the execution, delivery, and performance by it of this Agreement does not and shall not require any registration or filing with, consent or approval of, or notice to, or other action to, with or by, any federal, state, or other governmental authority or regulatory body, except such filings, approvals,
		

		
			
		

		
			

		 

		

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			and consents as (A) may be necessary or required under antitrust laws, federal securities, or energy laws or regulations or (B) may be necessary or required in connection with the commencement of the Bankruptcy Cases, the approval of the Disclosure Statement, and the confirmation of the Plan; and
		

		
			 
		

		
			(vi)        subject to the provision of sections 1125 and 1126 of the Bankruptcy Code, this Agreement is a legally valid and binding obligation of such Party, enforceable against such Party in accordance with its terms.
		

		
			 
		

		
			Section 10.Termination.
		

		
			 
		

		
			(a)Termination by the Noteholders. This Agreement may be terminated following the occurrence of each of the following events (each, a “Noteholder Termination Event”) by the Required Participating Noteholders delivering written notice of the occurrence of such event to the Companies (and the Companies shall promptly notify all other Parties thereof), provided that (x) upon a Noteholder Termination Event, under Section 10(a)(i) or (vi), this Agreement shall terminate immediately upon written notice thereof; and (y) upon any other Noteholder Termination Event, this Agreement shall terminate three Business Days after written notice to the Company thereof and of the intent to terminate this Agreement and the breach or other matter giving rise to the right to so terminate this Agreement shall not have been cured during the three Business Day period after receipt of such notice
		

		
			 
		

		
			(i)        If the Petition Date shall have not occurred on or before June 30, 2016;
		

		
			 
		

		
			(ii)       If an order by the Bankruptcy Court (in form and substance reasonably satisfactory to the Required Participating Noteholders) approving the assumption of this Agreement and the Companies’ obligations thereunder (“Assumption Order”), including the obligation to pay the reasonable, actual, and documented fees and expenses of the Participating Noteholders as set forth herein, has not been entered by the Bankruptcy Court on or before August 15, 2016;
		

		
			 
		

		
			(iii)      If the Companies and the Backstop Parties have not executed definitive documentation with respect to the Backstop within 45 days of the later of (A) entry of an order by the Bankruptcy Court (the “Rejection Order”) authorizing TUSA to reject the Specified Caliber Contracts under section 365 of the Bankruptcy Code and (B) entry of a final, unstayed judgment or order that any “dedications” set forth in the Specified Caliber Contracts do not constitute real covenants that “run with the land” under North Dakota law;
		

		
			 
		

		
			(iv)      If a final, unstayed order approving the Backstop in form and substance satisfactory to the Participating Noteholders has not been entered by the Bankruptcy Court on or before the 30th day after the definitive Backstop documentation is executed by the applicable parties;
		

		
			 
		

		
			(v)       If the Disclosure Statement and the Plan, both in form and substance reasonably satisfactory to the Participating Noteholders, shall not
		

		
			
		

		
			

		 

		

			12

		

 

 
		

		
			have been filed by the Companies with the Bankruptcy Court on or before  November 15, 2016;
		

		
			 
		

		
			(vi)      If the Disclosure Statement is not approved at a hearing (“Disclosure Statement Hearing”) by the Bankruptcy Court on or before December 19, 2016;
		

		
			 
		

		
			(vii)     If the Plan shall not have been confirmed by the Bankruptcy Court by February 15, 2017;
		

		
			 
		

		
			(viii)    If the Plan is modified in any material manner that is not acceptable to the Required Participating Noteholders;
		

		
			 
		

		
			(ix)       If it becomes impossible to meet any of the material terms or conditions set forth in the Term Sheet, or if the Bankruptcy Court or any other court of competent jurisdiction enters an order allowing and/or estimating (including for voting purposes) the Caliber Rejection Damage Claim in an amount that exceeds one-third of the sum of (a) the total outstanding TUSA Notes plus (b) general unsecured claims (including the Caliber Rejection Damages Claim) allowed and/or estimated for voting purposes under the Plan
		

		
			 
		

		
			(x)       If any of the Bankruptcy Cases of the TUSA Companies is dismissed or converted to a case under chapter 7 of the Bankruptcy Code;
		

		
			 
		

		
			(xi)      If the Bankruptcy Court shall enter an order appointing, in respect of any of the TUSA Companies, (A) a trustee under chapter 7 or chapter 11 of the Bankruptcy Code, (B) a responsible officer, or (C) an examiner with enlarged powers relating to the operation of the business (beyond those powers set forth in subclauses (3) and (4) of Bankruptcy Code section 1106(a)) under Bankruptcy Code section 1106(b); provided,  however, that the appointment of any of the parties identified in the immediately preceding clauses (A) through (C) shall not result in a Termination Event enforceable by any Party hereto that requested or supported such appointment;
		

		
			 
		

		
			(xii)     If any court enters a final, non-appealable judgment or order declaring this Agreement or any material portion hereof to be unenforceable;
		

		
			 
		

		
			(xiii)    If the Companies withdraw the Plan or any of the Companies publicly announces its intention not to support the Plan or to support an Alternative Transaction or seek Bankruptcy Court authority to support an Alternative Transaction;
		

		
			 
		

		
			(xiv)     If the orders of the Bankruptcy Court approving the Disclosure Statement or confirming the Plan are stayed, reversed, vacated, or otherwise modified in a material and adverse manner for greater than seven days after the Effective Date;
		

		
			
		

		
			

		 

		

			13

		

 

 
		

		
			(xv)      Upon any material breach of any provision of this Agreement by any of the Companies, regardless of whether such breach is mandated or justified by such Company’s fiduciary duties;
		

		
			 
		

		
			(xvi)     If the Effective Date of the Plan does not occur on or before March 15, 2017;
		

		
			 
		

		
			(xvii)   Termination of the Companies’ authority to use cash collateral pursuant to section 363 of the Bankruptcy Code for a period greater than 3 days; and
		

		
			 
		

		
			(xviii)   If the Companies agree to modify or execute (or seek Bankruptcy Court authority to modify or execute) any material contract, including any contract with Caliber, and such modification or contract is not acceptable to the Required Participating Noteholders.
		

		
			 
		

		
			(b)The Companies shall waive any requirement under section 362 of the Bankruptcy Code to lift the automatic stay thereunder for purposes of providing notice of termination pursuant to this Section 10, and agree not to object to any non-breaching Party seeking, if necessary, to lift the automatic stay in connection with the giving of any such notice of a Noteholder Termination Event. This waiver and agreement shall be memorialized in the Assumption Order.
		

		
			 
		

		
			(c)Termination by the Companies. This Agreement may be terminated by the Companies following the occurrence of any of the following events (each a “Company Termination Event”) by delivering written notice of the occurrence of such an event to the Parties, provided that upon a Company Termination Event under subsection 10(c)(i) of this Agreement, this Agreement shall terminate immediately and upon any other Company Termination Event, this Agreement shall terminate three Business Days after written notice to the Parties thereof and of the intent to terminate this Agreement and the breach or other matter giving rise to the right to so terminate this Agreement shall not have been cured during the three Business Day period after receipt of such notice.
		

		
			 
		

		
			(i)        If any of the Bankruptcy Cases of the TUSA Companies is dismissed or converted to a case under chapter 7 of the Bankruptcy Code’ or
		

		
			 
		

		
			(ii)       If any court enters a final, non-appealable judgment or order declaring this Agreement or any material portion hereof to be unenforceable;
		

		
			 
		

		
			(iii)      If any of the events set forth in clauses (ii),  (iii),  (iv),  (vi),  (viii),  (ix),  (x),  (xiv), or (xvi) of Section 10(a) occur, despite the Companies’ commercially reasonable efforts to prevent the occurrence of such event; and
		

		
			 
		

		
			(iv)       In the event that one or more Participating Noteholders materially breach this Agreement, such that the non-breaching
		

		
			
		

		
			

		 

		

			14

		

 

 
		

		
			Participating Noteholders at such time do not constitute Required Participating Noteholders.
		

		
			 
		

		
			(d)If it has not already terminated, the Agreement shall terminate immediately upon the Effective Date of the Plan.
		

		
			 
		

		
			(e)Notwithstanding anything to the contrary in this Agreement, (i) nothing herein requires Companies or their respective boards of directors to breach any fiduciary obligations they have under applicable law; (ii) the Companies and their boards of directors shall be entitled to consider any unsolicited offer or unsolicited proposal concerning an Alternative Transaction and engage in limited discussions with the counterparty advancing such unsolicited proposal for the sole purpose of determining whether such unsolicited proposal constitutes a bona fide proposal, provided that the Companies provide the Participating Noteholders with a copy of such unsolicited proposal within one Business Day of their receipt thereof; and (iii)  in the event the Companies, the Debtors, or their boards of directors reasonably determine, consistent with their fiduciary obligations and in consultation with their legal advisors, that the conditions to the Plan cannot be satisfied, or determine that an Alternative Transaction would maximize the value of their estates, they may terminate this Agreement without incurring any liability to any party under this Agreement. In the event that the Company, the Debtors, or their boards of directors terminate this Agreement pursuant to this preceding sentence, the Company shall provide five days written notice to the Participating Noteholders.
		

		
			 
		

		
			(f)Upon a termination of this Agreement no Party shall have any continuing liability or obligation to any other Party hereunder, and the provisions of this Agreement shall have no further force or effect, except for the provisions in Section 11,  12, and 14(b) through 24, each of which shall survive termination of this Agreement; provided,  however, that no such termination shall relieve any Party hereto from liability for its breach or non-performance of its obligations hereunder as of the date of such termination, and the rights of any non-breaching or performing Party hereto as it relates to such breach or non-performance by any other Party hereto shall be preserved in the event of the occurrence of such breach or non-performance.
		

		
			 
		

		
			(g)In addition to the Participating Noteholder Termination Events and the Company Termination Events, this Agreement shall be terminable immediately upon written agreement of the Company and the Participating Noteholders constituting the Required Participating Noteholders.
		

		
			 
		

		
			Section 11.No Third-Party Beneficiaries. This Agreement shall be solely for the benefit of the Parties hereto, and no other Person shall be a third-party beneficiary hereof.
		

		
			 
		

		
			Section 12.Entire Agreement. As of the date this Agreement becomes effective, this Agreement constitutes the entire agreement between the Parties hereto with respect to the subject matter hereof and supersedes all other prior agreements and understandings, both written and oral, between the parties with respect to the subject matter hereof.
		

		
			
		

		
			

		 

		

			15

		

 

 
		

		
			Section 13.Amendment or Waiver.
		

		
			 
		

		
			(a)This Agreement may not be modified, altered, amended, waived, or supplemented except by an agreement in writing signed by each of the Companies and the Required Participating Noteholders. Notwithstanding the foregoing, this Section 13(a) and Section 14 may not be modified, altered, or amended except in writing signed by each of the Companies and each of the Participating Noteholders.
		

		
			 
		

		
			(b)Each of the Parties agrees to negotiate in good faith all amendments and modifications to this Agreement as reasonably necessary and appropriate to consummate the Plan. Such agreement shall not be deemed to prejudice or limit in any way any Party’s rights under Section 14 of this Agreement.
		

		
			 
		

		
			(c)No waiver of any of the provisions of this Agreement shall be deemed or constitute a waiver of any other provision of this Agreement, whether or not similar, nor shall any waiver be deemed a continuing waiver.
		

		
			 
		

		
			Section 14.Withdrawal.
		

		
			 
		

		
			(a)A Participating Noteholder shall be entitled, upon three Business Days’ prior written notice to the other Parties, to withdraw its participation in this Agreement (a “Withdrawing Noteholder”) following the (i) amendment or modification of this Agreement or the Term Sheet or (ii) adoption of a provision in the Plan or the Plan Documents that is, in each case, inconsistent with this Agreement and material to such Withdrawing Noteholder.
		

		
			 
		

		
			(b)Upon the withdrawal of participation in this Agreement by such Withdrawing Noteholder in accordance with this Section 14, such Withdrawing Noteholder shall have no continuing liability or obligation to any other Party hereunder and no other Party hereunder shall have any continuing liability or obligation to such Withdrawing Noteholder hereunder; provided,  however, that no such withdrawal by a Withdrawing Noteholder shall relieve any Party hereto (including such Withdrawing Noteholder) from liability for its breach or non-performance of its obligations hereunder prior to the date of such withdrawal.
		

		
			
		

		
			

		 

		

			16

		

 

 
		

		
			Section 15.Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of New York, including all matters of construction, validity, and performance without giving effect to the conflicts of laws provisions thereof except New York General Obligations Law Section 5-1401. Each Party hereby irrevocably submits to the jurisdiction of any state court or federal court located in New York County, New York in respect of any suit, action, or proceeding arising out of or relating to this Agreement, and irrevocably accepts for itself and in respect of its property, generally and unconditionally, jurisdiction of the aforesaid courts. Each Party irrevocably waives, to the fullest extent it may effectively do so under applicable law, any objection that it may now or hereafter have to the laying of venue of any such suit, action, or proceeding brought in any such court and any claim that any such suit, action, or proceeding brought in any such court has been brought in an inconvenient forum. Nothing herein shall affect the right of any Party to serve process in any other manner permitted by law or to commence legal proceedings or otherwise proceed against any other party in any other jurisdiction. Notwithstanding the foregoing consent to New York jurisdiction, if the Bankruptcy Cases are commenced, each Party agrees that the Bankruptcy Court shall have exclusive jurisdiction of all matters arising out of or in connection with this Agreement.
		

		
			 
		

		
			Section 16.Remedies. Each Party recognizes and acknowledges that a breach by it of any covenants or agreements contained in this Agreement will cause the other Parties to sustain damages for which such Parties would not have an adequate remedy at law for money damages, and therefore each Party hereto agrees that, in the event of any such breach, such other Parties shall be entitled to a remedy of specific performance of such covenants and agreements, including, without limitation, the covenant and agreement to vote in favor of the Plan, and injunctive and other equitable relief in addition to any other remedy to which such parties may be entitled, in law or in equity. For the avoidance of doubt, the waiver or non-exercise of (x) the Noteholder Termination Event set forth in Section 10(a)(xv) by the Required Participating Noteholders or (y) the Company Termination Event set forth in Section 10(c)(iv) shall not constitute a waiver of the breach underlying such Noteholder Termination Event or Company Termination Event, as applicable, unless expressly indicated by the non-breaching Party in writing.
		

		
			 
		

		
			Section 17.Counterparts. This Agreement may be executed in any number of counterparts and by different Parties in separate counterparts and by facsimile or PDF transmission, with the same effect as if all Parties had signed the same document. All such counterparts shall be deemed an original, shall be construed together, and shall constitute one and the same instrument.
		

		
			 
		

		
			Section 18.No Waiver of Participation and Reservation of Rights. Except as expressly provided in this Agreement and in any amendment among the Parties made in accordance herewith, nothing herein is intended to, or does, in any manner, waive, limit, impair, or restrict the ability of each of the Parties to protect and preserve its rights, remedies, and interests, including, without limitation, its claims against any of the Parties (or their respective affiliates or subsidiaries) or its full participation in the Bankruptcy Cases. If the transactions contemplated by this Agreement or in the Plan are not consummated, or if this Agreement is terminated for any reason, the Parties fully reserve any and all rights.
		

		
			
		

		
			

		 

		

			17

		

 

 
		

		
			Section 19.Severability. Any term or provision of this Agreement that is invalid or unenforceable in any jurisdiction, shall, as to that jurisdiction, be ineffective to the extent of such invalidity or unenforceability without rendering invalid or unenforceable the remaining terms and provisions of this Agreement or affecting the validity or enforceability of any of the terms or provisions of this Agreement in any other jurisdiction. If any provision of this Agreement is so broad as to be unenforceable, the provision shall be interpreted to be only as broad as is enforceable.
		

		
			 
		

		
			Section 20.Prior Negotiations. This Agreement supersedes all prior negotiations with respect to the subject matter hereof, but shall not supersede the Plan Documents.
		

		
			 
		

		
			Section 21.Several Not Joint. Except as otherwise expressly provided in this Agreement, the agreements, representations, and obligations of the Parties under this Agreement are several and not joint. Any breach of this Agreement by any Party shall not result in liability for any other non-breaching Party. Failure by a Party to perform its obligations under the Agreement shall not affect the obligations of any other Party under this Agreement, except as otherwise expressly set forth herein.
		

		
			 
		

		
			Section 22.Confidentiality.
		

		
			 
		

		
			(a)Unless otherwise required by applicable law (including in connection with seeking to obtain any shareholder approval of the Restructuring or in connection with any litigation concerning the Restructuring), each Party agrees and acknowledges that, prior to the Petition Date, it will not disclose to any Person the content or any term or provision of this Agreement, other than to the representatives of each such Party or to another Participating Noteholder, unless, in connection with the transactions contemplated hereby, such Person agrees first to be bound by this confidentiality provision. Notwithstanding the foregoing, each Party agrees to permit disclosure of this Agreement and its contents in the Plan Documents and any filings by the Companies with the Bankruptcy Court regarding this Agreement.
		

		
			 
		

		
			(b)Any NDA between any Participating Noteholder and any of the Companies shall remain in full force and effect notwithstanding the execution of this Agreement, including but not limited to any obligation of the Companies to “cleanse” material non-public information.
		

		
			 
		

		
			(c)Each Participating Noteholder that is not otherwise subject to an NDA with the Companies agrees and acknowledges, that, unless otherwise required by or pursuant to applicable law or a regulatory authority, it will not disclose to any Person any terms or provisions of this Agreement or any Confidential Information provided to such Participating Noteholder pursuant to this Agreement other than to the representatives of each such Participating Noteholder, in each case, in connection with the transactions contemplated hereby and subject to their agreement to be bound by this confidentiality provision.
		

		
			 
		

		
			Section 23.Consideration. The Parties acknowledge that, other than the agreements, covenants, representations, and warranties set forth herein and to be included in the Plan Documents, no consideration shall be due or paid to the Participating Noteholders in exchange for their obligations in this Agreement.
		

		
			
		

		
			

		 

		

			18

		

 

 
		

		
			Section 24.Notice. Any notices or other communications in connection with this Agreement shall be in writing and shall be deemed to have been duly given when delivered in person or upon confirmation of receipt when transmitted by email or on receipt after dispatch by registered or certified mail, postage prepaid, or on the next Business Day if transmitted by national overnight courier, addressed in each case as follows:
		

		
			 
		

		
			(a)If to the Companies:
		

		
			 
		

		
			Triangle USA Petroleum Corporation
		

		
			 
		

		
			1200 17th Street
		

		
			Suite 2500
		

		
			Denver, Colorado 80202
		

		
			agarber@trianglepetroleum.com 
		

		
			Attention:Ashley Garber
		

		
			 
		

		
			With a copy to:
		

		
			 
		

		
			Skadden, Arps, Slate, Meagher & Flom LLP
		

		
			 
		

		
			155 North Wacker Drive
		

		
			Suite 2700
		

		
			Chicago, Illinois 60606
		

		
			george.panagakis@skadden.com 
		

		
			ron.meisler@skadden.com 
		

		
			Attention:George N. Panagakis;
		

		
			Ron E. Meisler
		

		
			 
		

		
			and
		

		
			 
		

		
			525 University Avenue
		

		
			Palo Alto, California 94301
		

		
			leif.king@skadden.com 
		

		
			Attention:Leif King
		

		
			 
		

		
			 
		

		
			(b)If to a Participating Noteholder, to the address for such Participating Noteholder provided on the signature pages hereof. With a copy to:
		

		
			 
		

		
			Gibson, Dunn & Crutcher LLP
		

		
			 
		

		
			200 Park Avenue
		

		
			New York, New York 10166
		

		
			mjwilliams@gibsondunn.com 
		

		
			Attention:Matthew J. Williams
		

		
			 
		

		
			
		

		
			

		 

		

			19

		

 

 
		

		
			IN WITNESS WHEREOF, this Agreement has been duly executed as of the date first written above.
		

		
			 
		

		
			 
		

		
			 
		

		
			

		 

		

			20

		

 

 
		

			
					
						 

					
					
						TRIANGLE USA PETROLEUM CORPORATION

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						/s/ Ashley Garber

				
	
					
						 

					
					
						 

					
					
						Name:

					
					
						Ashley Garber

				
	
					
						 

					
					
						 

					
					
						Title:

					
					
						Secretary

				

		
			 
		

		
			 
		

		
			
		

		

		 

		

			[Plan Support Agreement – Signature Page]

		

 

	
					
						 

					
					
						LEAF MINERALS, LLC

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						/s/ Ashley Garber

				
	
					
						 

					
					
						 

					
					
						Name:

					
					
						Ashley Garber

				
	
					
						 

					
					
						 

					
					
						Title:

					
					
						Secretary

				

		
			 
		

		
			
		

		

		 

		

			[Plan Support Agreement – Signature Page]

		

 

	
					
						 

					
					
						FOXTROT RESOURCES LLC

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						/s/ Ashley Garber

				
	
					
						 

					
					
						 

					
					
						Name:

					
					
						Ashley Garber

				
	
					
						 

					
					
						 

					
					
						Title:

					
					
						Secretary

				

		
			 
		

		
			
		

		

		 

		

			[Plan Support Agreement – Signature Page]

		

 

	
					
						 

					
					
						RANGER FABRICATION MANAGEMENT, LLC

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						/s/ Dustin Nygard

				
	
					
						 

					
					
						 

					
					
						Name:

					
					
						Dustin Nygard

				
	
					
						 

					
					
						 

					
					
						Title:

					
					
						Secretary

				

		
			 
		

		
			
		

		
			

		 

		

			[Plan Support Agreement – Signature Page]

		

 

 
		

			
					
						 

					
					
						RANGER FABRICATION MANAGEMENT HOLDINGS, LLC

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						/s/ Dustin Nygard

				
	
					
						 

					
					
						 

					
					
						Name:

					
					
						Dustin Nygard

				
	
					
						 

					
					
						 

					
					
						Title:

					
					
						Secretary

				

		
			 
		

		
			
		

		

		 

		

			[Plan Support Agreement – Signature Page]

		

 

	
					
						 

					
					
						RANGER FABRICATION, LLC

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						/s/ Dustin Nygard

				
	
					
						 

					
					
						 

					
					
						Name:

					
					
						Dustin Nygard

				
	
					
						 

					
					
						 

					
					
						Title:

					
					
						Secretary

				

		
			 
		

		
			
		

		
			

		 

		

			[Plan Support Agreement – Signature Page]

		

 

 
		

			
					
						 

					
					
						CEC II TI POOL, LP

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						CEC Fund II GP, LLC, its general partner

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						/s/ R. Kyle Kettler

				
	
					
						 

					
					
						 

					
					
						Name:

					
					
						R. Kyle Kettler

				
	
					
						 

					
					
						 

					
					
						Title:

					
					
						Managing Director

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						Address:

				
	
					
						 

					
					
						600 Travis Street, Suite 4700

				
	
					
						 

					
					
						Houston, Texas 77002

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						Principal Amount of TUSA Notes Held:

					
					
						 

				

		
			 
		

		
			
		

		

		 

		

			[Plan Support Agreement – Signature Page]

		

 

	
					
						 

					
					
						EATON VANCE SENIOR FLOATING RATE TRUST

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						/s/ Stephen Concannon

				
	
					
						 

					
					
						 

					
					
						Name:

					
					
						Stephen Concannon

				
	
					
						 

					
					
						 

					
					
						Title:

					
					
						Vice President

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						Address:

				
	
					
						 

					
					
						2 International Place

				
	
					
						 

					
					
						Boston, MA 02110

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						Principal Amount of TUSA Notes Held:

					
					
						 

				

		
			 
		

		
			
		

		

		 

		

			[Plan Support Agreement – Signature Page]

		

 

	
					
						 

					
					
						EATON VANCE FLOATING RATE INCOME TRUST

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						/s/ Stephen Concannon

				
	
					
						 

					
					
						 

					
					
						Name:

					
					
						Stephen Concannon

				
	
					
						 

					
					
						 

					
					
						Title:

					
					
						Vice President

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						Address:

				
	
					
						 

					
					
						2 International Place

				
	
					
						 

					
					
						Boston, MA 02110

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						Principal Amount of TUSA Notes Held:

					
					
						 

				

		
			 
		

		
			
		

		

		 

		

			[Plan Support Agreement – Signature Page]

		

 

	
					
						 

					
					
						EATON VANCE TRUST COMPANY CIT FOR EMPLOYEE BENEFIT PLANS-HIGH YIELD FUND

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						/s/ Stephen Concannon

				
	
					
						 

					
					
						 

					
					
						Name:

					
					
						Stephen Concannon

				
	
					
						 

					
					
						 

					
					
						Title:

					
					
						Vice President

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						Address:

				
	
					
						 

					
					
						2 International Place

				
	
					
						 

					
					
						Boston, MA 02110

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						Principal Amount of TUSA Notes Held:

					
					
						 

				

		
			 
		

		
			
		

		

		 

		

			[Plan Support Agreement – Signature Page]

		

 

	
					
						 

					
					
						EVTC CTF EATON VANCE TR CO HIGH YIELD COMMON TR FUND

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						/s/ Stephen Concannon

				
	
					
						 

					
					
						 

					
					
						Name:

					
					
						Stephen Concannon

				
	
					
						 

					
					
						 

					
					
						Title:

					
					
						Vice President

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						Address:

				
	
					
						 

					
					
						2 International Place

				
	
					
						 

					
					
						Boston, MA 02110

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						Principal Amount of TUSA Notes Held:

					
					
						 

				

		
			 
		

		
			
		

		

		 

		

			[Plan Support Agreement – Signature Page]

		

 

	
					
						 

					
					
						HIGH INCOME OPPORTUNITIES PORTFOLIO

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						/s/ Stephen Concannon

				
	
					
						 

					
					
						 

					
					
						Name:

					
					
						Stephen Concannon

				
	
					
						 

					
					
						 

					
					
						Title:

					
					
						Vice President

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						Address:

				
	
					
						 

					
					
						2 International Place

				
	
					
						 

					
					
						Boston, MA 02110

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						Principal Amount of TUSA Notes Held:

					
					
						 

				

		
			 
		

		
			
		

		

		 

		

			[Plan Support Agreement – Signature Page]

		

 

	
					
						 

					
					
						BOSTON INCOME PORTFOLIO

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						/s/ Stephen Concannon

				
	
					
						 

					
					
						 

					
					
						Name:

					
					
						Stephen Concannon

				
	
					
						 

					
					
						 

					
					
						Title:

					
					
						Vice President

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						Address:

				
	
					
						 

					
					
						2 International Place

				
	
					
						 

					
					
						Boston, MA 02110

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						Principal Amount of TUSA Notes Held:

					
					
						 

				

		
			 
		

		
			
		

		

		 

		

			[Plan Support Agreement – Signature Page]

		

 

	
					
						 

					
					
						EATON VANCE LIMITED DURATION INCOME FUND

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						/s/ Stephen Concannon

				
	
					
						 

					
					
						 

					
					
						Name:

					
					
						Stephen Concannon

				
	
					
						 

					
					
						 

					
					
						Title:

					
					
						Vice President

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						Address:

				
	
					
						 

					
					
						2 International Place

				
	
					
						 

					
					
						Boston, MA 02110

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						Principal Amount of TUSA Notes Held:

					
					
						 

				

		
			 
		

		
			
		

		

		 

		

			[Plan Support Agreement – Signature Page]

		

 

	
					
						 

					
					
						COMMONWEALTH OF MASSACHUSETTS EMPLOYEES DEFERRED COMPENSATION PLAN

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						/s/ Stephen Concannon

				
	
					
						 

					
					
						 

					
					
						Name:

					
					
						Stephen Concannon

				
	
					
						 

					
					
						 

					
					
						Title:

					
					
						Vice President

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						Address:

				
	
					
						 

					
					
						2 International Place

				
	
					
						 

					
					
						Boston, MA 02110

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						Principal Amount of TUSA Notes Held:

					
					
						 

				

		
			 
		

		
			
		

		

		 

		

			[Plan Support Agreement – Signature Page]

		

 

	
					
						 

					
					
						PACIFIC SELECT FUND- FLOATING RATE LOAN PORTFOLIO

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						/s/ Stephen Concannon

				
	
					
						 

					
					
						 

					
					
						Name:

					
					
						Stephen Concannon

				
	
					
						 

					
					
						 

					
					
						Title:

					
					
						Vice President

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						Address:

				
	
					
						 

					
					
						2 International Place

				
	
					
						 

					
					
						Boston, MA 02110

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						Principal Amount of TUSA Notes Held:

					
					
						 

				

		
			 
		

		
			
		

		

		 

		

			[Plan Support Agreement – Signature Page]

		

 

	
					
						 

					
					
						PLYMOUTH COUNTY RETIREMENT ASSOCIATION

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						/s/ Stephen Concannon

				
	
					
						 

					
					
						 

					
					
						Name:

					
					
						Stephen Concannon

				
	
					
						 

					
					
						 

					
					
						Title:

					
					
						Vice President

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						Address:

				
	
					
						 

					
					
						2 International Place

				
	
					
						 

					
					
						Boston, MA 02110

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						Principal Amount of TUSA Notes Held:

					
					
						 

				

		
			 
		

		
			
		

		

		 

		

			[Plan Support Agreement – Signature Page]

		

 

	
					
						 

					
					
						SOUTHEASTERN PENNSYLVANIA TRANSPORTATION AUTHORITY

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						/s/ Stephen Concannon

				
	
					
						 

					
					
						 

					
					
						Name:

					
					
						Stephen Concannon

				
	
					
						 

					
					
						 

					
					
						Title:

					
					
						Vice President

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						Address:

				
	
					
						 

					
					
						2 International Place

				
	
					
						 

					
					
						Boston, MA 02110

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						Principal Amount of TUSA Notes Held:

					
					
						 

				

		
			 
		

		
			
		

		

		 

		

			[Plan Support Agreement – Signature Page]

		

 

	
					
						 

					
					
						EATON VANCE SENIOR INCOME TRUST

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						/s/ Stephen Concannon

				
	
					
						 

					
					
						 

					
					
						Name:

					
					
						Stephen Concannon

				
	
					
						 

					
					
						 

					
					
						Title:

					
					
						Vice President

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						Address:

				
	
					
						 

					
					
						2 International Place

				
	
					
						 

					
					
						Boston, MA 02110

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						Principal Amount of TUSA Notes Held:

					
					
						 

				

		
			 
		

		
			
		

		

		 

		

			[Plan Support Agreement – Signature Page]

		

 

	
					
						 

					
					
						THE REGENTS OF THE UNIVERSITY OF CALIFORNIA

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						/s/ Stephen Concannon

				
	
					
						 

					
					
						 

					
					
						Name:

					
					
						Stephen Concannon

				
	
					
						 

					
					
						 

					
					
						Title:

					
					
						Vice President

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						Address:

				
	
					
						 

					
					
						2 International Place

				
	
					
						 

					
					
						Boston, MA 02110

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						Principal Amount of TUSA Notes Held:

					
					
						 

				

		
			 
		

		
			
		

		
			

		 

		

			[Plan Support Agreement – Signature Page]

		

 

 
		

			
					
						 

					
					
						PGIM, Inc. as investment advisor to Holder ACCOUNT INFORMATION ON NEXT PAGE

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						/s/ Ryan P. Kelly

				
	
					
						 

					
					
						 

					
					
						Name:

					
					
						Ryan P. Kelly

				
	
					
						 

					
					
						 

					
					
						Title:

					
					
						Vice President PGIM, Inc. as 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						Investment advisor to Holder

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						Address:

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						PO Box 32339

				
	
					
						 

					
					
						 

					
					
						Newark N.J. 07102

				
	
					
						 

					
					
						 

					
					
						Att: Corp. Action Team

				
	
					
						 

					
					
						 

					
					
						Tel. (973) 802-3239 Fax. (888)316-4018

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						PIMFI_CORPORATE_ACTIONS@prudential.com

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						Principal Amount of TUSA Notes Held:

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				

		
			 
		

		
			 
		

		
			

		 

		

			[Plan Support Agreement – Signature Page]

		

 

 
		

			
					
						 

					
					
						P SCM Energy HY Ltd.

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						SHENKMAN CAPITAL MANAGEMENT, INC., as Investment Manager

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						/s/ Justin Slatky

				
	
					
						 

					
					
						 

					
					
						Name:

					
					
						Justin Slatky

				
	
					
						 

					
					
						 

					
					
						Title:

					
					
						Executive Vice President

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						   Address:

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						Shenkman Capital Management

				
	
					
						 

					
					
						 

					
					
						461 Fifth Ave

				
	
					
						 

					
					
						 

					
					
						22nd Floor

				
	
					
						 

					
					
						 

					
					
						New York, NY 10017

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						Principal Amount of TUSA Notes Held:

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						

					
					
						 

				

		
			 
		

		
			
		

		
			

		 

		

			[Plan Support Agreement – Signature Page]

		

 

 
		

			
					
						 

					
					
						The PNC Financial Services Group, Inc. Pension Plan

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						SHENKMAN CAPITAL MANAGEMENT, INC.,
as Investment Manager

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						/s/ Justin Slatky

				
	
					
						 

					
					
						 

					
					
						Name:

					
					
						Justin Slatky

				
	
					
						 

					
					
						 

					
					
						Title:

					
					
						Executive Vice President

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						  Address:

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						Shenkman Capital Management

				
	
					
						 

					
					
						 

					
					
						461 Fifth Ave

				
	
					
						 

					
					
						 

					
					
						22nd Floor

				
	
					
						 

					
					
						 

					
					
						New York, NY 10017

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						Principal Amount of TUSA Notes Held:

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						

					
					
						 

				

		
			 
		

		
			
		

		
			

		 

		

			[Plan Support Agreement – Signature Page]

		

 

 
		

			
					
						 

					
					
						Shenkman Energy Opportunity Master Fund, LTD.

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						SHENKMAN CAPITAL MANAGEMENT, INC.,
as Collateral Manager

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						/s/ Justin Slatky

				
	
					
						 

					
					
						 

					
					
						Name:

					
					
						Justin Slatky

				
	
					
						 

					
					
						 

					
					
						Title:

					
					
						Executive Vice President

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						  Address:

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						Shenkman Capital Management

				
	
					
						 

					
					
						 

					
					
						461 Fifth Ave

				
	
					
						 

					
					
						 

					
					
						22nd Floor

				
	
					
						 

					
					
						 

					
					
						New York, NY 10017

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						Principal Amount of TUSA Notes Held:

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						

					
					
						 

				

		
			 
		

		
			
		

		
			

		 

		

			[Plan Support Agreement – Signature Page]

		

 

 
		

			
					
						 

					
					
						LONGLEAF PARTNERS SMALL-CAP FUND

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						/s/ Andrew R. McCarroll

				
	
					
						 

					
					
						 

					
					
						Southeastern Asset Management, Inc.

				
	
					
						 

					
					
						 

					
					
						Its: Investment Manager

				
	
					
						 

					
					
						 

					
					
						By: Andrew R. McCarroll

				
	
					
						 

					
					
						 

					
					
						Title: General Counsel

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						Address:

				
	
					
						 

					
					
						c/o Southeastern Asset Management, Inc.

				
	
					
						 

					
					
						6410 Poplar Avenue, Suite 900

				
	
					
						 

					
					
						Memphis, TN 38119

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						Principal Amount of TUSA Notes Held:

				
	
					
						 

					
					
						

				

		
			 
		

		
			
		

		
			

		 

		

			[Plan Support Agreement – Signature Page]

		

 

 
		

			
					
						 

					
					
						DESERET MUTUAL BENEFIT SMALL CAP

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						/s/ Andrew R. McCarroll

				
	
					
						 

					
					
						 

					
					
						Southeastern Asset Management, Inc.

				
	
					
						 

					
					
						 

					
					
						Its: Investment Manager

				
	
					
						 

					
					
						 

					
					
						By: Andrew R. McCarroll

				
	
					
						 

					
					
						 

					
					
						Title: General Counsel

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						Address:

				
	
					
						 

					
					
						c/o Southeastern Asset Management, Inc.

				
	
					
						 

					
					
						6410 Poplar Avenue, Suite 900

				
	
					
						 

					
					
						Memphis, TN 38119

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						Principal Amount of TUSA Notes Held:

					
					
						 

				
	
					
						 

					
					
						

				

		
			 
		

		
			 
		

		
			 
		

		
			

		 

		

			[Plan Support Agreement – Signature Page]

		

 

 
		

		
			Exhibit A
		

		
			 
		

		
			Term Sheet
		

		
			 
		

		
			(see attached)
		

		
			 
		

		
			 
		

		
			

		 

		

			 

		

 

 
		

			
					
						 

					
						TRIANGLE USA PETROLEUM CORPORATION

				
	
					
						 

				
	
					
						RESTRUCTURING TERM SHEET

				
	
					
						 

				
	
					
						This term sheet (this “Term Sheet”) describes certain material terms of a proposed restructuring transaction (the “Restructuring”) for Triangle USA Petroleum Corporation (“TUSA”) and TUSA’s wholly owned subsidiaries (collectively, and together with TUSA, the “Company”), subject to various approvals, further agreements, and definitive documentation. 

				
	
					
						 

				
	
					
						This Term Sheet is not legally binding, is not a complete list of all material terms and conditions of the potential transactions described herein, is subject to material change, and is being distributed for discussion purposes only. This Term Sheet shall not constitute an offer or a legally binding obligation to buy or sell, nor does it constitute a solicitation of an offer to buy or sell, any of the securities referred to herein. Furthermore, nothing herein constitutes a commitment to lend funds to the Company or any other party, or to negotiate, agree to, or otherwise participate in any plan of reorganization under chapter 11 of title 11 of the United States Code (the “Bankruptcy Code”), nor does this Term Sheet constitute a solicitation of the acceptance or rejection of any chapter 11 plan for purposes of sections 1125 and 1126 of the Bankruptcy Code. Capitalized terms used, but not otherwise defined, in this Term Sheet shall have the meanings ascribed to them in the PSA (as defined below).

				
	
					
						 

				
	
					
						This Term Sheet shall remain strictly confidential and may not be shared with any other person without the consent of the Company and the Participating Noteholders.

				

		
			 
		

			
					
						STAKEHOLDER TREATMENT

				
	
					
						Summary

					
					
						The TUSA Noteholders (as defined below) shall exchange the TUSA Notes (as defined below) for 100% of the initial reorganized common stock of TUSA (the “New TUSA Common Stock”), subject to dilution as described below

					
						The Company and each TUSA Noteholder (as defined below) that has agreed to support a Restructuring (collectively, the “Participating Noteholders”) shall execute a plan support agreement (the  “PSA”) pursuant to which the Company and the Participating Noteholders agree to support a prearranged chapter 11 plan implementing the Restructuring (the “Plan”)

				
	
					
						TUSA RBL

					
					
						The first-priority revolving credit facility (the “TUSA RBL”), with an estimated $308.3 million (inclusive of letters of credit) outstanding as of June 28, 2016, will be paid in full using cash on the balance sheet, proceeds of the New Revolving Credit Facility (as defined below), and the New Money Rights Offering (as defined below)

				

		
			 
		

		
			 
		

		
			

		 

		

			 

		

 

 
		

			
					
						TUSA Notes

					
					
						The $381 million of TUSA 6.75% senior unsecured notes (the “TUSA Notes” and the holders thereof, the “TUSA Noteholders”) will convert into 100% of the New TUSA Common Stock, subject to dilution from the Caliber Rejection Damages Claim (as defined below), the Allowed General Unsecured Claims (as defined below) and the MIP (as defined below)

					
						TUSA Noteholders shall be offered the opportunity to participate, up to the total aggregate principal amount offered, in the New Money Rights Offering

				
	
					
						OTHER TERMS OF THE RESTRUCTURING

				
	
					
						New Money
Rights Offering

					
					
						The Company will conduct a $[100] million new money rights offering (the “New Money Rights Offering”) pursuant to the Plan on terms and conditions and in a form of security to be negotiated in good faith and acceptable to the Debtors and the Required Participating Noteholders in their sole and absolute discretion.

					
						oProceeds of the New Money Rights Offering will be used to pay down the TUSA RBL and for general corporate purposes

					
						oInvestment rights will be offered ratably to TUSA Noteholders

					
						oThe New Money Rights Offering will be backstopped by a commitment (the “Backstop”) from certain Participating Noteholders, subject to terms, conditions, and documentation negotiated in good faith and acceptable to the Debtors and the Backstop Parties. Upon execution of the Backstop, the Debtors shall promptly (and in no event no more than five Business Days thereafter) file a motion seeking authority to enter into the Backstop and pay the fees and expenses associated therewith

				
	
					
						New Revolving Credit Facility 

					
					
						The Plan will provide for a new first-priority RBL credit facility, on terms and conditions reasonably acceptable to the Company and the Participating Noteholders (the “New Revolving Credit Facility”), provided that the collateral shall be substantially all of the assets securing the existing TUSA RBL. Proceeds of the New Revolving Credit Facility will be used to pay down the existing TUSA RBL and for general corporate purposes

				
	
					
						Caliber Midstream Services Agreements

					
					
						Within three Business Days of the Petition Date, TUSA shall (a) move to reject the Specified Caliber Agreements under section 365 of the Bankruptcy Code and (b) use commercially reasonable efforts to (i) remove and transfer the civil action commenced by Caliber in North Dakota state court on or about May 26, 2016 (the “Caliber 

				

		
			 
		

		
			
		

		
			

		 

		

			2

		

 

 
		

			
					
						 

					
					
						Declaratory Judgment Action”) to the Bankruptcy Court and (ii) seek a declaratory judgment that any “dedications” set forth in the Specified Caliber Contracts do not constitute real covenants that “run with the land,” under North Dakota law. Whether the Caliber Declaratory Judgment Action is successfully removed and transferred to the Bankruptcy Court or not, TUSA shall use its commercially reasonable efforts to defend such action and obtain a declaratory judgment from the presiding court that the “dedications” set forth in the Specified Caliber Contracts do not constitute real covenants and do not otherwise “run with the land” under North Dakota law

					
						The entry of a final, unstayed order or judgment granting the relief described in the foregoing sentence, or a consensual settlement   acceptable to TUSA and the Required Participating Noteholders, shall be a condition precedent to confirmation of the Plan

					
						Caliber shall receive a general unsecured claim on account of the rejection of the Specified Caliber Contracts (the “Caliber Rejection Damages Claim”), or such other treatment as agreed to by the Company, the Required Participating Noteholders and approved by the Bankruptcy Court

				
	
					
						Other

					
					
						The PSA and other Restructuring documentation and materials shall contain all customary terms otherwise reasonably acceptable to the Company and the Required Participating Noteholders

					
						The Debtors shall use their commercially reasonable best efforts to effectuate the terms and conditions of the Restructuring in a tax efficient manner reasonably satisfactory to the Required Participating Noteholders

					
						The Plan shall provide that each holder of an allowed claim shall have the option to apply such holder’s pro rata share of consideration under the Plan to satisfy outstanding principal of, or accrued interest on, its allowed claim, as such allocation is determined by such holder in its sole discretion; provided,  however, that such election shall not affect the total consideration distributable to such holder

					
						Plan will include a convenience class for general unsecured claims less than $[•]; convenience class claims shall be paid in full in cash on the Effective Date

					
						Holders of allowed general unsecured claims (“Allowed General Unsecured Claims”) shall receive their pro rata share of New TUSA Common Stock

					
						The MIP for the management of reorganized TUSA shall provide for compensation comprised of cash and securities. The terms of the MIP shall be negotiated in good faith among the Companies and the Participating Noteholders and shall be set forth in a term sheet, which, once accepted by the Companies and the Participating Noteholders, shall be appended to, and made part of, the PSA or the Plan. The term sheet shall provide that, as soon as commercially 

				

		
			 
		

		
			
		

		
			

		 

		

			3

		

 

 
		

			
					
						 

					
					
						practicable following such time as TUSA is subject to the reporting requirements of the Securities Exchange Act of 1934 (the “Exchange Act”), TUSA shall use its commercially reasonable efforts to file and have declared effective a registration statement on Form S-8, which may include a resale prospectus, covering any securities to be issued under the MIP

					
						Governance of reorganized TUSA to be negotiated among the Company and the Participating Noteholders (see “Governance of Reorganized TUSA” below)

				
	
					
						Governance of Reorganized TUSA

					
					
						In connection with the Restructuring, the Company and the Participating Noteholders (and any other necessary or appropriate parties) shall enter into a Shareholders Agreement providing for the following terms. The Shareholders Agreement shall terminate if and when the New TUSA Common Stock is listed on a recognized U.S. stock exchange.

					
						 

					
						Certain customary “Fundamental Matters” to be subject to the approval of the Participating Noteholders, or, if the Participating Noteholders collectively have appointed the majority of the directors of the New TUSA Board, the New TUSA Board, including, but not limited to, the following actions by the Company: amend Company charter or bylaws; acquire, merge, consolidate or transact with respect to the business or assets of another (including assumed liabilities) in excess of $[]mm; sell, lease, transfer or dispose of assets in excess of $[]mm; enter into other line of business; settle any litigation, other than (i) where amount in controversy is less than $[]mm or (ii) the terms do not include an admission of liability or impose any nonmonetary obligation on the Company; dissolve, wind up, liquidate, declare bankruptcy or similar acts; undertake equity recapitalizations or other changes to terms of the Company’s capital stock; enter into, modify, amend or waive rights under material contracts or leases; make or commit to capital expenditures in excess of $[]mm, other than as has been approved by a majority of the New TUSA Board; pay dividends or distributions; issue or redeem equity (other than pursuant to the MIP); incur, assume or guaranty indebtedness in excess of $[]mm; enter into affiliate transactions; selection, termination or removal of the CEO; appoint or remove the independent auditors or reserve engineers of the Company

					
						[] Directors of the initial New TUSA Board will be appointed by the Participating Noteholders and one will be the CEO, with the total number of Directors not to exceed []; any quorum of the initial New TUSA Board to require at least [one] Participating Noteholder-appointed Director

					
						Audit and Compensation Committees of the New TUSA Board to include at least [one] Participating Noteholder-appointed Director

				

		
			 
		

		
			
		

		
			

		 

		

			4

		

 

 
		

			
					
						 

					
					
						Where reasonably practicable, advance notice of press releases or other public communications which refer to any Participating Noteholder

					
						Access to financial information, including: (i) annual GAAP financial statements within [90] days of year end; and (ii) quarterly GAAP financial statements within [45] days of quarter end

					
						Customary general access rights to information and management

					
						Waiver of stockholder fiduciary duties or corporate opportunities

					
						TUSA and the Participating Noteholders shall enter into a customary Registration Rights Agreement, reflecting the terms set forth in the immediately following two bullet points:

					
						oTUSA to grant to each Participating Noteholder demand (including for an underwritten offering and for a resale shelf) and piggyback registration rights in respect of its New TUSA Common Stock (a) at any time prior to New TUSA Common Stock being listed on the NYSE, Nasdaq or NYSE MKT, and (b) thereafter, to the extent that its New TUSA Common Stock constitutes “control securities” or “restricted securities” that may not be sold without volume or manner of sale restrictions pursuant to Rule 144 under the Securities Act of 1933 or otherwise; such registration rights to be subject to customary limitations, including, without limitation, blackout and suspension periods, cut-backs and holdback periods and, in the case of a demand registration, a limitation on the number of demands, a minimum ownership threshold for the requesting holders, a grace period after the emergence date before which a demand can be requested or a registration statement will be required to be declared effective, and a limitation on resale shelf demands if TUSA is not then Form S-3 eligible

					
						oTUSA to also agree to use its commercially reasonable efforts (i) to have the New TUSA Common Stock quoted on one of the OTC markets as soon as practicable following the emergence date, and (ii) following such time that the applicable listing standards of the NYSE, Nasdaq or NYSE MKT are satisfied or waived with respect to the New TUSA Common Stock, or in connection with the first registered public offering of New TUSA Common Stock (other than on Form S-8) following which the condition at the end of this sentence can be met (or, if the condition at the end of this sentence cannot then be met, the next subsequent registered public offering of New TUSA Common Stock (other than on Form S-8) following which such condition can then be met), to register the New TUSA Common Stock under Section 12(b) of the Exchange Act and to list the New TUSA Common Stock on such stock exchange if the applicable listing standards may then be met or waived.

				

		
			 
		

		
			 
		

		
			

		 

		

			5

		

 

 
		

		
			Exhibit B
		

		
			 
		

		
			Joinder
		

		
			 
		

		
			To be attachedistr-ex101_16.htm

 

Exhibit 10.1

LETTER LOAN AGREEMENT

As of June 27, 2016

 

TIB - The Independent BankersBank 

11701 Luna Road

Farmers Branch, TX 75234 

Attention:  Barry C. Musgrove

Senior Vice President

 

Gentlemen:

The undersigned, INVESTAR HOLDING CORPORATION, a Louisiana corporation (the “Borrower”), with its mailing address located at the address set forth on the signature pages hereof, has requested that TIB - The Independent BankersBank (the “Lender”) extend a loan (the “Loan”) to Borrower to be evidenced by Borrower’s promissory note dated of even date herewith, in the maximum stated principal sum of $20,000,000.00, payable to the order of Lender as therein specified (the “Note”). The Note (and all renewals, extensions and rearrangements thereof) is hereinafter referred to as the “Note.” The proceeds of the Loan will be used by Borrower for holding company expenses, general corporate purposes, potential acquisitions, or capital injections into Bank to support growth as needed. In consideration of Lender making the Loan, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, Borrower agrees with Lender as follows:

 

1.Definitions. As used in this Letter Loan Agreement (the “Agreement”), the following terms have the following meanings:

“Average Assets” means a year-to-date average of the average assets reported in the Report of Condition Schedule RC-K. Thus for the first quarter of the year the average assets from Call Schedule RC-K for the first quarter will appear, while at the end-of-year, average assets for all four quarters would be averaged.

 

“Bank” means Investar Bank, a Louisiana state banking association.

“Book Value” means, at any time for any share of common stock of Bank, Bank’s Equity Capital divided by the total number of shares of common stock of Bank outstanding at such time.

 

“Business Day” means any day on which commercial banks are not authorized or required to close in Farmers Branch, Dallas County, Texas.

“Call Report” means Reports of Condition and Reports of Income of Bank as filed with the Federal Financial Institutions Examination Council.

 

“Cash Flow” means Net Income of the Bank (on an annualized basis, if not year-end) adding back any one- time holding company expenses as specified by the Borrower and agreed to by Lender.

 

“Classified Assets” means, at any particular time, all assets of Bank classified as “Loss,” “Doubtful,” or “Substandard” or in any equivalent category by Bank or any governmental or regulatory authority.

 

“Closing Date” means June 27, 2016.

“Collateral” has the meaning specified in Section 3.

 

“Common Equity Tier 1 Capital Ratio” means, at any particular time, the ratio of Common Equity Tier 1 Capital to Risk-Weighted Assets of the Bank determined in accordance with the Call Report Instructions.

 

“Criticized Assets” means, at any particular time, all assets of the Bank classified as “Loss,” “Doubtful,” “Substandard,” or “other Assets Especially Mentioned,” or in any equivalent category by the Bank or any governmental or regulatory authority.

 

 

	
LETTER LOAN AGREEMENT - #91425
	
 
	
Page 1

 

 

“Current Maturities of Long-Term Debt” means interest expense and principal payments (if applicable) on Borrower’s debt with Lender with respect to the indicated time period.

 

“Debt” means as to any Person at any time (without duplication): (i) all obligations of such Person for borrowed money, (ii) all obligations of such Person evidenced by bonds, notes, debentures, or other similar instruments, (iii) all obligations of such Person to pay the deferred purchase price of property or services, except trade accounts payable of such Person arising in the ordinary course of business which are not past due by more than ninety (90) days unless such trade accounts payable are being contested in good faith by appropriate proceedings, (iv) all obligations of such Person under any lease which, in conformity with GAAP, is required to be capitalized for balance sheet purposes, (v) all obligations of such Person under guaranties, endorsements (other than for collection or deposit in the ordinary course of business), assumptions or other contingent obligations, in respect of, or to purchase or otherwise acquire, any obligation or indebtedness of any other Person, or any other obligation, contingent or otherwise, of such Person directly or indirectly protecting the holder of any obligation or indebtedness of any other Person against loss (whether by partnership arrangements, agreements to keep well, to purchase assets, goods, securities, or services, to take or pay or otherwise), (vi) all obligations secured by a Lien existing on property owned by such Person, whether or not the obligations secured thereby have been assumed by such Person or are non-recourse to the credit of such Person, and (vii) all reimbursement obligations of such Person (whether contingent or otherwise) in respect of letters of credit, bankers’ acceptances, surety or other bonds and similar instruments.

 

“Equity Capital” means, at any particular time, the total equity capital of the Bank determined in accordance with the Instructions (the “Call Report Instructions”) to the Call Reports as most recently promulgated by the Federal Financial Institutions Examination Council.

 

“Event of Default” has the meaning specified in Section 10.

 

“GAAP” means generally accepted accounting principles, applied on a consistent basis, as set forth in Opinions of the Accounting Principles Board of the American Institute of Certified Public Accountants and/or in statements of the Financial Accounting Standards Board and/or their respective successors and which are applicable in the circumstances as of the date in question. Accounting principles are applied on a  “consistent basis” when the accounting principles observed in a current period are comparable in all material respects to those accounting principles applied in a preceding period.

 

“Grantor” means Borrower.

 

“Leverage Ratio” means, at any particular time, the ratio of Tier 1 Capital to Average Assets of the Bank determined in accordance with the Call Report Instructions.

“Lien” means any lien, mortgage, security interest, tax lien, financing statement, pledge, charge, hypothecation, assignment, preference, priority, or other encumbrance of any kind or nature whatsoever (including, without limitation, any conditional sale or title retention agreement), whether arising by contract, operation of law, or otherwise.

“Loan Documents” means this Agreement and all promissory notes, pledge agreements, and other instruments, documents, and agreements now or hereafter executed and delivered pursuant to or in connection with this Agreement and any future renewals, extensions, and amendments hereto or thereto.

 

“Maximum Rate” means the maximum rate of nonusurious interest permitted from day to day by applicable law, including as to Chapter 303, Texas Finance Code, as amended from time to time (and as the same may be incorporated by reference in other Texas statutes), but otherwise without limitation, that rate based upon

 

 

	
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the “weekly rate ceiling” and calculated after taking into account any and all relevant fees, payments, and other charges in respect of the Loan Documents which are deemed to be interest under applicable law.

“Net Income” means net income (loss) attributable to Bank, in accordance with the Call Report Instructions.

 

“Non-Performing Assets” means loans on nonaccrual, loans on which the interest rate has been reduced as troubled debt restructurings, loans which have been past due for ninety (90) days or more, and other real estate and other assets which are owned due to foreclosure or as a result of the exercise of legal remedies where such real estate or other assets were mortgaged or taken as security for loans.

 

“Obligated Party” means Grantor or other Person who is or becomes party to any agreement that guarantees or secures payment and performance of the Obligations or any part thereof.

“Obligations” means all obligations, indebtedness, and liabilities of Borrower to Lender, now existing or hereafter arising, whether direct, indirect, related, unrelated, fixed, contingent, liquidated, unliquidated, including, without limitation, the obligations, indebtedness, and liabilities of Borrower under this Agreement, the Note, and the other Loan Documents, and all interest accruing thereon and all attorneys’ fees and other expenses incurred in the enforcement or collection thereof.

 

“Person” means any individual, corporation, business trust, association, company, partnership, joint venture, or other entity.

“Pledge Agreement” means the Commercial Pledge Agreement(s) of Borrower and/or Grantor in favor of Lender of even date herewith, as the same may be amended, supplemented, or modified.

 

“Pledged Stock” has the meaning specified in Section 3(a).

 

“Return on Average Assets” means, for the applicable reporting period, the ratio, expressed as a percentage, of Bank’s Net Income year-to-date annualized to Bank’s Average Assets determined at the end of the applicable period being analyzed.

 

“Subsidiary” means any corporation or bank of which more than fifty percent (50%) of the issued and outstanding securities having ordinary voting power for the election of a majority of directors is owned or controlled, directly or indirectly, by Borrower, by Borrower and one or more other Subsidiaries, or by one or more other Subsidiaries.

 

“Tangible Equity Capital” means Equity Capital less Goodwill and Other Intangible Assets of the Bank determined in accordance with the Call Report Instructions.

 

“Tier 1 Capital” means, at any particular time, the Tier 1 Capital of the Bank determined in accordance with the Call Report Instructions.

“Tier 1 Capital Ratio” means, at any particular time, the ratio of Tier 1 Capital to Risk-Weighted Assets of the Bank determined in accordance with the Call Report Instructions.

 

“Total Assets” means, at any particular time, all amounts which, in conformity with GAAP, would be included as assets on a balance sheet of Bank determined in accordance with the Call Report Instructions.

“Total Capital Ratio” means, at any particular time, the ratio of combined Tier 1 Capital and Tier 2 Capital to Risk-Weighted Assets of the Bank determined in accordance with the Call Report Instructions.

 

2.Repayment of Loan. Borrower shall repay the Loan, plus accrued interest thereon, as provided in the Note. All payments of principal, interest and other amounts to be paid under this Agreement, the Note, and the other Loan Documents shall be made to Lender at its office at 11701 Luna Road, Farmers Branch, TX 75234 (or such other location as Lender advises Borrower in writing), in lawful currency of the United States of America and in immediately available funds. Whenever any payment hereunder or under the Note shall be stated to be due on

 

 

	
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a day that is not a Business Day, such payment may be made on the next succeeding Business Day and interest shall continue to accrue during such extension. Borrower may prepay the Note in whole or part at any time without premium or penalty, but with accrued interest to the date of prepayment on the amount so prepaid, provided that partial prepayments shall be applied to the principal of the Loan in the inverse order of the required principal payments set forth in the Note and below unless otherwise agreed to in writing by Lender. Lender shall have no obligation or commitment to renew the Loan. Lender will, however, consider renewing the Loan if (a) the financial condition of Borrower and Bank is satisfactory to Lender, in its sole discretion, (b) no Event of Default, and no event that with the giving of notice or lapse of time or both would constitute an Event of Default,  shall have occurred and be continuing, and (c) Borrower shall have made payments of all principal and accrued interest owing during the term of the Loan in accordance with the Note.

3.Collateral. To secure full and complete payment and performance of the Obligations, Borrower shall execute and deliver or cause to be executed and delivered the documents described below covering the collateral described in this Section (which, together with any other property and collateral which may now or hereafter secure the Obligations or any part thereof, is sometimes herein called the “Collateral”):

 

(a)Borrower shall grant to Lender a first priority security interest in all of the capital stock of the Bank, including common and preferred stock, now owned or hereafter acquired by Borrower, and all products and proceeds thereof, pursuant to the Pledge Agreement (the “Pledged Stock”). Lender shall retain possession of the certificate or certificates representing the Pledged Stock, together with stock powers duly executed in blank by Borrower.

 

(b)Borrower shall execute and cause to be executed such further documents and instruments, including, without limitation, Uniform Commercial Code financing statements, as Lender, in its sole discretion, deems necessary or desirable to evidence and perfect its liens and security interests in the Collateral.

 

	
 
	
(c)
	
Omitted.

	
 
	
(d)
	
Omitted.

 

4.Distributions. If Borrower and/or Grantor shall be entitled to receive or shall receive any stock certificate (including, without limitation, any certificate representing a stock dividend or distribution in connection with any reclassification, increase, or reduction of capital, or issued in connection with any reorganization), option or rights, whether as an addition to, in substitution of, or in exchange for any shares of any Pledged Stock, Borrower and Grantor agree to accept the same as Lender’s agent and to hold the same in trust on behalf of and for the benefit of Lender and to deliver the same forthwith to Lender in the exact form received, with the endorsement of Borrower and/or Grantor where necessary and/or appropriate undated stock powers duly executed in blank, to be held by Lender, subject to the terms of the Pledge Agreement, as additional Collateral.

 

5.Setoff. Lender shall have the right to set off and apply against the Obligations in such manner as Lender may determine, without notice to Borrower, any and all deposits (general or special, time or demand, provisional or final) or other sums at any time credited by or owing from Lender to Borrower whether or not the Obligations are then due. As further security for the Obligations, Borrower hereby grants to Lender a security interest in all money, instruments, and other property of Borrower now or hereafter held by Lender, including, without limitation, property held in safekeeping. In addition to Lender’s right of setoff and as further security for the Obligations, Borrower hereby grants to Lender a security interest in all deposits (general or special, time or demand, provisional or final) and other accounts of Borrower now or hereafter on deposit with or held by Lender and all other sums at any time credited by or owing from Lender to Borrower. The rights and remedies of Lender hereunder are in addition to other rights and remedies (including, without limitation, other rights of setoff) which Lender may have.

 

6.A.Conditions Precedent. The obligation of Lender to make the Loan is subject to the condition precedent that Lender shall have received all of the following, each dated (unless otherwise indicated) the date hereof, in form and substance satisfactory to Lender:

 

 

	
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(a)Articles of Incorporation of Borrower. True, correct, current, and complete Articles of Incorporation (or Certificate of Formation, as applicable) of the Borrower, certified as true and correct by an officer of Borrower. 

 

(b)Bylaws. True, correct, current, and complete Bylaws of the Borrower, certified as true and correct by an officer of Borrower.

 

(c)Certificate of Officer and Incumbency. Resolutions of the Board of Directors of Borrower certified by an officer, which resolutions authorize the execution, delivery and performance of this Agreement, the Note, and the other Loan Documents, together with a certificate  of  incumbency certifying the names of the officers of Borrower authorized to sign this Agreement, the Note, and the other Loan Documents, together with specimen signatures of such officers.

(d)Governmental Certificates. A (i) certificate of the appropriate government official of the state of incorporation of Borrower as to the existence of Borrower, dated within ten (10) days prior to the date hereof, and (ii) copy of the good standing certificate of Borrower (or, if in Texas, the Franchise Tax Account Status page from the website of the Texas Comptroller of Public Accounts), showing an active right to transact business, reflecting a print date within ten (10) days prior to the date hereof.

 

(e)Note. The Note executed by Borrower.

 

(f)Pledge Agreement. The Pledge Agreement executed by Borrower and Grantor.

 

(g)Omitted.

 

(h)Pledged Stock. The original certificates representing the Pledged Stock, accompanied by stock powers duly executed in blank by Borrower and Grantor.

(i)Articles of Association and Bylaws. True, correct, current, and complete articles of association and bylaws of Bank.

 

(j)Federal Reserve Approval. A copy of the written authorization of the  Board  of Governors of the Federal Reserve System granting approval for the formation of Borrower as a bank holding company and authorizing Borrower’s ownership of the Bank.

 

(k)Omitted.

 

(l)Omitted.

 

(m)Additional Information. Such additional documents, instruments, and information as Lender or its legal counsel may reasonably request.

6.B.Conditions Precedent to All Advances. To the extent the Loan includes advances which may be made after the Closing Date, the obligation of the Lender to thereafter make any advance under the Loan  is subject to the following additional conditions precedent:

 

(a)Advance Request Form. Lender shall have received an advance request form in a form satisfactory to Lender, dated the date of such advance, executed by an authorized officer of the Borrower;

 

(b)No Default. No Event of Default, and no event which with the giving of notice or lapse of time or both would be an Event of Default, shall have occurred and be continuing, or would result from such advance;

 

 

	
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(c)Representations and Warranties. All of the representations and warranties contained in the Loan Documents shall be true and correct on and as of the date of such advance with the same force and effect as if such representations and warranties had been made on and as of such date; 

 

(d)No Material Adverse Change. No material adverse change in the business, condition (financial or otherwise), operations, performance, properties or prospects of the Borrower or any of its Subsidiaries shall have occurred since December 31, 2015;

(e)Additional Documentation. Lender shall have received such additional approvals or documents as the Lender or its legal counsel may reasonably request; and

 

(f)Terms. Lender shall have reviewed and approved the terms and conditions of the use of proceeds of the advance to be made.

7.Representations and Warranties. To induce Lender to enter into this Agreement, Borrower represents and warrants to Lender that:

 

(a)Borrower (i) is a corporation duly organized, validly existing, and in good standing under the laws of Louisiana; (ii) has all requisite corporate power to own assets and carry on its business as now being or as proposed to be conducted; and (iii) is qualified to do business in all jurisdictions in which the nature of its business makes such qualification necessary and where failure to so qualify would have a material adverse effect on its business, financial condition, or operations. Borrower has the corporate power and authority to execute, deliver, and perform its obligations under this Agreement and the other Loan Documents to which it is or may become a party. The Bank is a state banking association duly organized, validly existing, and in good standing under the applicable laws of the United States and the State of Louisiana.

(b)The borrowing hereunder and the execution, delivery and performance by Borrower of this Agreement, the Note and the other Loan Documents have been duly authorized by all necessary action of Borrower and are not in contravention of any law, rule or regulation or of the terms of any agreement or instrument to which Borrower is a party or by which it may be bound or of Borrower’s certificate of formation/articles of incorporation or bylaws.

 

(c)This Agreement, the Note and the other Loan Documents to  which  Borrower  is  a party, when delivered, shall constitute the legal, valid, and binding obligation of Borrower, as the case may be, enforceable against Borrower or, as the case may be, in accordance with their respective terms, except as limited by bankruptcy, insolvency, or other laws of general application relating to the enforcement of creditors’ rights.

(d)Each financial statement of Borrower and Bank herewith or heretofore delivered to Lender was prepared in conformity with GAAP and truly disclosed Borrower’s and Bank’s financial condition (including all of Borrower’s and Bank’s contingent liabilities) as of the date thereof and the results of its operations for the period covered thereby, and there has been no material adverse change in Borrower’s or Bank’s financial condition and operations subsequent to the date of the most recent financial statement of Borrower and Bank delivered to Lender.

 

(e)No litigation or governmental proceeding is pending, or, to the knowledge of Borrower, threatened against or affecting Borrower or Bank, which may result in any material adverse change in Borrower’s or Bank’s business, properties or operations.

 

(f)Borrower has no Debt except Debt to Lender and as described on Schedule 2 hereto. None of Borrower’s or Bank’s assets are subject to any Lien except Liens to Lender and as disclosed on Schedule 3 hereto. Borrower owns, and with respect to Collateral acquired after the date  hereof, Borrower will own, legally and beneficially, the Collateral free of any lien or claim or any right or option on the part of any third party to purchase or otherwise acquire the Collateral or any part thereof, except for

 

 

	
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the security interest granted to Lender pursuant to the Pledge Agreement. The Collateral is not subject to any restriction on transfer or assignment except for compliance with applicable federal and state securities laws and regulations promulgated thereunder. Borrower has the unrestricted  right  to pledge the Collateral as contemplated by the Loan Documents. All of the Collateral has been duly and validly issued and is fully paid and nonassessable. The authorized capital stock of the Bank is 40,000,000 shares of common stock, par value $1.00 per share, of which 3,943,600 shares are issued and outstanding, and 5,000,000 shares of preferred stock, par value $1.00 per share, of which zero shares are issued and outstanding. All of the outstanding capital stock of the Bank has been validly issued, is fully paid, and is non assessable. The Pledged Stock constitutes one hundred percent (100%) of the issued and outstanding shares of common capital stock of Bank. There are no existing subscriptions, options, warrants, calls, or rights (including preemptive rights) to acquire, and no existing Debt, securities, or other instruments convertible into or exchangeable for, capital stock of the Bank.

(g)No certificate or statement herewith or heretofore delivered by Borrower to Lender in connection herewith, or in connection with any transaction contemplated hereby, contains any untrue statement of a material fact or fails to state any material fact necessary to keep the statements contained therein from being misleading.

(h)No authorization, approval, or consent of, and no filing or registration with, any court, governmental authority, or third party is or will be necessary for the execution, delivery, or performance by Borrower of this Agreement and the other Loan Documents to which Borrower is or may become a party or the validity or enforceability thereof.

(i)Neither Borrower nor any Subsidiary is in violation in any material respect of any law, rule, regulation, order, or decree of any court, governmental authority, or arbitrator or any agreement to which such Person is a party.

 

(j)Borrower has no Subsidiaries other than Bank.

(k)Immediately after the consummation of the transactions to occur on the date hereof and immediately following the making of each advance hereunder, if any, made on the date hereof and after giving effect to the application of the proceeds of such advances, (i) the fair value of the assets of the Borrower and its Subsidiaries on a consolidated basis, at a fair valuation, will exceed the debts and liabilities, subordinated, contingent or otherwise, of the Borrower and its Subsidiaries on a consolidated basis; (ii) the present fair saleable value of the assets and properties of the Borrower and its Subsidiaries on a consolidated basis will be greater than the amount that will be required to pay the probable liability of the Borrower and its Subsidiaries on a consolidated basis on their debts and other liabilities, subordinated, contingent or otherwise, as such debts and other liabilities become absolute and matured; (iii) the Borrower and its Subsidiaries on a consolidated basis will be able to pay their debts and liabilities, subordinated, contingent or otherwise, as such debts and liabilities become absolute and matured; and (iv) the Borrower and its Subsidiaries on a consolidated basis will not have unreasonably small capital with which to conduct the businesses in which they are engaged as such businesses are now conducted and are proposed to be conducted after the date hereof.

 

(l)The Borrower does not intend to, or to permit any of its Subsidiaries to, and does not believe that it or any of the Subsidiaries will, incur debts beyond its ability to pay such debts as they mature, taking into account the timing of and amounts of cash to be received by it or any such Subsidiary and the timing of the amounts of cash to be payable on or in respect of its Debt or the Debt of any such Subsidiary.

 

(m)No fees, charges, or other amounts are payable by Lender in the State in which Borrower is formed and/or located as a result of Lender’s making of the Loan and, if so, to the extent allowed by law, Borrower agrees to and does hereby indemnify, defend, and hold Lender harmless from and against any such fees, charges, or amounts.

 

 

	
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8.Affirmative Covenants. Borrower covenants and agrees that, as long as the Obligations or any part thereof are outstanding or Lender has any commitment hereunder, Borrower will observe and perform the following positive covenants, unless Lender shall otherwise consent in writing: 

 

(a)Borrower will keep and cause Bank to keep adequate books and records, in accordance with GAAP of all of its transactions so that at any time, and from time to  time,  it’s  true  and complete financial condition may be readily determined,  and,  at  Lender’s  request,  make  such books and records available for Lender’s inspection and permit Lender to make and take away copies thereof.

 

(b)To the extent that Lender is unable to readily obtain online, upon Lender’s written request and within forty—five (45) days after the end of each applicable reporting period for 10-Q quarterly reports, and within ninety (90) days after the end of each applicable reporting period for 10-K annual reports, Borrower will furnish to Lender copies of its filed 10-K annual reports and 10-Q quarterly reports.

 

(c)Borrower will promptly furnish to Lender, as reasonably requested by Lender and within Lender’s sole discretion, a certificate of the Chief Executive Officer or Chief Financial Officer of Borrower stating that to the best of such officer’s knowledge, no Event of Default has occurred and is continuing, or if an Event of Default has occurred and is continuing, a statement as to the nature thereof and the action which is proposed to be taken with respect thereto, and showing in reasonable detail the calculations demonstrating compliance with Sections 8 and 9 hereof.

 

(d)To the extent that Lender is unable to readily obtain online, within ten (10) days of Lender’s written request, Borrower will deliver to Lender a copy of a financial report of Borrower for such period, prepared in conformity with GAAP, and which fairly and accurately states Borrower’s financial condition at such time (including mall assets, liabilities, contingent liabilities, and cash  flow);  such financial report shall include without limitation a copy  of  Borrower’s  most  recent  Federal  Reserve Forms Y-9SP and Y-6 each June 30 and December 31 as sent to the Federal Reserve Bank of Atlanta when reporting as a Small Bank Holding Company, or Borrower’s most recent  Federal  Reserve  Forms  Y-9LP and Y-6 each  March  31,  June  30, September 30, and December 31 as sent to the Federal Reserve Bank of Atlanta when reporting as a Large Bank Holding Company, as well as any Federal Reserve Form Y-10, if applicable.

 

(e)Omitted.

 

(f)To the extent that Lender is unable to readily obtain online, within ten (10) days of Lender’s written request, and in any event within sixty (60) days after the end of each fiscal quarter, Borrower will deliver to Lender copies of all Call Reports as filed with the Federal Financial Institutions Examination Council.

 

(g)To the extent that Lender is unable to readily obtain online, within ten (10) days of Lender’s written request, and in any event within thirty (30) days after receipt by Bank, Borrower will furnish Lender copies of the Uniform Bank Performance Report for Bank prepared by  the  Federal Financial Institutions Examination Council or any successor entity.

(h)As soon as available, and in any event within thirty (30) days after the end of each calendar month, Borrower will furnish to Lender a watch list or other reports identifying the Classified Assets and Criticized Assets of Bank.

(i)Promptly, and in any event, within sixty (60) days of each year-end during the term of the Loan (including renewals, modifications, and/or extensions thereof), Borrower shall and shall cause Bank to create and deliver to Lender a comprehensive and detailed fiscal budget for the forthcoming year, such budget to include projected cash flow information and a pro forma balance sheet.

 

 

	
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(j)As soon as available, Borrower will furnish to Lender one copy of each financial statement, report, notice, or proxy statement sent by Borrower or Bank to its stockholders generally and one copy of each regular, periodic or special report, registration statement, or prospectus filed by Borrower with any securities exchange or the Securities and Exchange Commission or  any successor entity provided that any such deliverables shall be deemed to have been delivered to Lender on the date on which Borrower or Bank files them with the Securities and Exchange Commission, and any material order issued by any court, governmental authority, or arbitrator in any proceeding to which Borrower or Bank is a party. 

(k)Borrower will promptly inform Lender of any litigation against Borrower or Bank or affecting any of Borrower’s or Bank’s property, if such litigation or potential litigation might, in the event of an unfavorable outcome, have a material adverse effect on Borrower’s or Bank’s financial condition or might cause an Event of Default.

(l)Borrower will promptly furnish to Lender, at Lender’s request and within Lender’s sole discretion, such additional financial or other information concerning the assets, liabilities, operations and transactions of Borrower and/or Bank as Lender may from time to time request.

 

(m)Borrower will promptly pay when due any and all taxes, assessments and governmental charges upon Borrower or Bank or against any of Borrower’s or Bank’s property, unless the same is being contested in good faith by appropriate proceedings and reserves deemed adequate by Lender have been established therefor.

(n)Borrower will, or will cause Bank to, promptly pay all lawful claims, whether for labor, materials or otherwise, which could, if unpaid, become a lien or charge on any property or assets of Borrower or Bank, respectively, unless and to the extent only that the same are being contested in good faith by appropriate proceedings and reserves deemed adequate by Lender have been established therefor.

 

(o)Borrower will maintain its and Bank’s existence and promptly comply and cause Bank to promptly comply with all laws, statutes, ordinances, governmental regulations, agreements, contracts, and instruments applicable to or binding upon it or to any of its property, business, operations and transactions.

 

(p)Borrower will maintain, and cause Bank to maintain, with financially sound and reputable insurance companies or associations, insurance of the kinds, covering the risks and in the relative proportionate amounts, usually carried by companies engaged in businesses similar to that of Borrower and Bank (such insurance to be in any event in such amounts and covering such risks as shall be satisfactory to Lender), and, at Lender’s request, deliver to Lender evidence of the maintenance of such insurance.

 

(q)Borrower will preserve and maintain all licenses, privileges, franchises, certificates and the like necessary for the operation of its business.

 

(r)Omitted.

(s)Borrower will cause Bank to maintain at all times a liquidity position determined by the ratio of total deposits to total loans which is in accordance with the guidelines recommended by applicable federal bank regulatory authorities and is deemed satisfactory at each regulatory examination of the Bank.

(t)Borrower will cause Bank to maintain federal deposit insurance and to be a member of the Federal Deposit Insurance Corporation.

 

(u)Borrower will promptly notify Lender within fifteen (15) days of the occurrence thereof, of the occurrence of an Event of Default or event which with the giving of notice or lapse of time or both would constitute an Event of Default.

 

 

	
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(v)Following an Event of Default, Borrower will permit and cause Bank to permit a representative of Lender to attend all meetings of the board of directors of Borrower and Bank, whether regular meetings or specially called meetings. 

 

(w)Borrower will promptly furnish to Lender written notice of (i) the issuance of any notice of charges, cease and desist order (temporary or otherwise) or order to take affirmative action by any governmental or regulatory authority against Borrower or Bank or any director, officer, employee, agent, or other person participating in the conduct of the affairs of Borrower or Bank, (ii) the service of any notice of intention to remove from office or notice of intention to suspend from office by any governmental or regulatory authority upon any director or officer of Borrower or Bank, (iii) the issuance of a notice of termination of the status of Bank as an insured bank under the Federal Deposit Insurance Corporation Act, as amended, or (iv) the entry into any agreement or memorandum of understanding between any governmental or regulatory authority and Borrower or Bank or any director, officer, employee, agent, or other person participating in the conduct of the affairs of Borrower or Bank.

(x)Omitted.

 

(y)If an Event of Default has occurred and is continuing, Borrower will provide or cause to be provided to Lender a third party loan review of Bank’s loan portfolio conducted by an independent third party acceptable to Lender, such review to begin within ninety (90) days after Lender’s written request therefor. Borrower shall provide such reviews annually if Bank is the subject of any regulatory action or agreement described in Section 8(w) hereof.

 

(z)Omitted.

(aa)Omitted.

 

9.Negative Covenants. Borrower covenants and agrees that, as long as the Obligations or any part thereof are outstanding or Lender has any commitment hereunder, Borrower will perform and observe the following negative covenants, unless Lender shall otherwise consent in writing (unless a different requirement is specifically set forth below):

 

(a)Omitted.

 

(b)Except with Lender’s prior approval, which approval will not be unreasonably withheld, Borrower will not reorganize, merge, consolidate with, or permit Bank to reorganize, merge, or consolidate with, or acquire all or substantially all of the assets of, any other company, firm or association, or make any other substantial change in its capitalization or character of its business;

 

(c)Borrower will not and will not permit Bank to sell, lease, or otherwise dispose of any of its assets used or useful in its business, except in the regular course of business for reasonably equivalent cash consideration;

 

(d)Borrower will not permit the Classified Assets of Bank to at any time exceed thirty-five percent (35%) of the Tier 1 Capital plus allowance for loan and lease losses of Bank;

 

(e)Borrower will not permit Bank’s Leverage Ratio to at any time be less than seven and one-half percent (7.5%);

 

(f)Borrower will not permit Bank’s Common Equity Tier 1 Ratio to at any time be less than seven and one-half percent (7.5%);

 

 

	
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(g)Borrower will not permit Bank’s Tier 1 Capital Ratio to at any time be less than nine and one-half percent (9.5%); 

(h)Borrower will not permit Bank’s Total Capital Ratio to at any time be less than nine and one-half percent (9.5%);

 

 (i)Borrower will not permit Bank to enter into any speculative activities or securities hedging;

 

(j)Borrower will not permit Bank’s Return on Average Assets to be less than seven tenths of one percent (0.70%) for any fiscal quarter, annualized on a year-to-date basis;

 

(k)Borrower will not prepay, or permit Bank to prepay, any Debt except the Obligations;

 

(l)Borrower will not make, and will not permit Bank to make, any change in accounting treatment or reporting practices, except as required by GAAP;

 

(m)Borrower will not make, and will not permit any Subsidiary other than Bank to make, any advance, loan, extension of credit, or capital contribution to or investment in, or purchase, or permit any Subsidiary other than Bank to purchase, any stock, bonds, notes, debentures, or other securities of any Person, except:

 

	
 
	
(i)
	
readily marketable direct obligations of the United States of America;

 

	
 
	
(ii)
	
fully insured certificates of deposit with maturities of one year or less from the date of acquisition of any commercial bank operating in the United States; and

 

	
 
	
(iii)
	
readily marketable stock of a fully insured financial institution

(n)Omitted.

 

(o)Borrower will not incur, create, assume, or permit to exist any Lien upon any of its property, assets or revenues, whether now owned or hereafter acquired, except Liens in favor of Lender (provided, however, that the foregoing shall not apply to Liens for taxes which are not delinquent or which are being contested in good faith [with bond or other security reasonably acceptable to Lender if Lender so requires], mechanic’s and materialmen’s Liens with respect to obligations which are not overdue or which are being contested in good faith, and Liens resulting from deposits to secure the payments of workers’ compensation or other social security or to secure the performance of bids or contracts in the ordinary course of business);

 

(p)During the existence of an Event of Default, or if doing so would cause an Event of Default (or an event which, with the giving of notice, or passage of time, or both, would be an Event of Default), Borrower will not declare or pay any dividends or make any other payment or distribution (in cash, property, or obligations) on account of its capital stock, or redeem, purchase, retire, or otherwise acquire any of its capital stock, or set apart any money for a sinking or other analogous fund for any dividend or other distribution on its capital stock or for any redemption, purchase, retirement, or other acquisition of any of its capital stock.

(q)Omitted.

 

(r)Omitted.

 

 

	
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(s)Borrower will not permit the ratio of Bank’s Total Loans to its Total Assets to at any time be greater than eighty-five percent (85%). 

(t)Borrower will not make any change in its organizational documents or its fiscal year, nor permit Bank to do so, without the prior written consent of Lender.

 

	
 
	
10.
	
Event of Default. Each of the following shall be deemed an “Event of Default”:

 

(a)Borrower shall fail to pay or perform when due the Obligations or any part thereof.

 

(b)A cease and desist order shall be issued or shall be drafted or recommended against the Bank by any regulatory authority.

 

(c)Any representation or warranty made or deemed made by the Borrower, Bank, or any Obligated Party in any Loan Document or in any certificate, report, notice, or financial statement furnished at any time in connection with this Agreement shall be false, misleading, or erroneous in any material respect when made or deemed to have been made.

(d)Borrower, Bank, or any Obligated Party shall fail to perform, observe, or comply with any other covenant, agreement or term contained in this Agreement or any other Loan Document and such failure shall continue for a period of thirty (30) days after written notice by Lender of such failure.

 

(e)Borrower, Bank, or any Obligated Party shall commence a voluntary proceeding seeking liquidation, reorganization, or other relief with respect to itself or its debts under any bankruptcy, insolvency, receivership, conservatorship, or other similar law now or hereafter in effect or seeking the appointment of a trustee, receiver, liquidator, custodian, conservator, or other similar official of it or a substantial part of its property or shall consent to any such relief or to the appointment of or taking possession by any such official in such a proceeding commenced against it or shall make a general assignment for the benefit of creditors or shall generally fail to pay its debts as they become due or shall take any corporate action to authorize any of the foregoing or shall be subject to any proceeding to accomplish a comparable arrangement.

(f)An involuntary proceeding shall be commenced against the Borrower, Bank, or any Obligated Party seeking liquidation, reorganization, or other relief with respect to it or its debts under any bankruptcy, insolvency, receivership, conservatorship, or other similar law now or hereafter in effect or seeking the appointment of a trustee, receiver, liquidator, custodian, conservator, or other similar official for it or a substantial part of its property, and  such  involuntary  proceeding  shall remain  undismissed and unstayed for a period of thirty (30) days.

 

(g)Borrower, Bank, or any Obligated Party shall fail to discharge within a period of thirty

(30) days after the commencement thereof any attachment, sequestration, or similar  proceeding involving an amount in excess of One Million Dollars ($1,000,000.00) against any of its assets or properties, unless such proceeding is being contested diligently and in good faith and adequate reserves have been established.

(h)Borrower, Bank, or any Obligated Party shall fail to satisfy and discharge promptly any judgment against it for the payment of money in an amount in excess of One Million Dollars ($1,000,000.00) unless such judgment is being contested diligently and in good faith and adequate reserves have been established.

(i)Borrower, Bank, or any Obligated Party shall fail to pay when due any principal of or interest on any Debt (other than the Obligations), in excess of One Million Dollars ($1,000,000.00), or the maturity of  any  such  Debt  shall  have  been accelerated, or any such Debt shall have been required to be prepaid prior to the stated maturity thereof, or any event shall have occurred and be continuing that, with the giving of notice or lapse of time or both, would permit any holder or holders of such Debt or any Person acting on behalf of such holder or holders to accelerate the maturity thereof or require any such prepayment.

 

 

	
LETTER LOAN AGREEMENT - #91425
	
 
	
Page 12

 

 

(j)This Agreement or any other Loan Document shall cease to be in full force and effect or shall be declared null and void or the validity or enforceability thereof shall be contested or challenged by Borrower or any of Borrower’s shareholders, or Borrower shall deny that it has any further liability or obligation under any of the Loan Documents. 

(k)Borrower shall fail, at any time, to own and have pledged to Lender at least 100% of the issued and outstanding shares of capital stock of Bank, or such security interest in favor of Lender shall at any time fail to be a first priority perfected lien and security interest.

 

(l)A material adverse change in the business, condition (financial or otherwise), operations, performance, payments or prospects of the Borrower or any of its Subsidiaries or affiliates shall have occurred since the Closing Date.

 

11.Rights of Lender. Upon the occurrence of an Event of Default, Lender may without notice terminate its commitment to lend hereunder and declare the Obligations or any part thereof to be immediately due and payable, and the same shall thereupon become immediately due and payable, without demand, presentment, notice of dishonor, notice of acceleration, notice of intent to accelerate, notice of intent to demand, or protest, all of which are hereby expressly waived; provided, however, that upon the occurrence of an Event of Default under Section 10(e) or Section 10(f), the commitment of Lender to lend hereunder shall automatically terminate, and the Obligations shall become immediately due and payable without notice, demand, presentment, notice of dishonor, notice of acceleration, notice of intent to accelerate, notice of intent to demand, or protest, all of which are hereby expressly waived. Upon the occurrence of any Event of Default, Lender may exercise all rights and remedies available to it in law or in equity, under the Loan Documents or otherwise.

 

12.Maximum Interest Rate. No provision of this Agreement or of the Note shall require the payment or the collection of interest in excess of the maximum permitted by applicable law. If any excess of interest in such respect is hereby provided for, or shall be adjudicated to be so provided, in the Note or otherwise in connection with this loan transaction, the provisions of this Section shall govern and prevail and neither Borrower nor the sureties, successors, or assigns of Borrower shall be obligated to pay the excess amount of such interest or any other excess sum paid for use, forbearance, or detention of sums loaned pursuant hereto. In the event Lender ever receives, collects, or applies as interest any such sum, such amount which would be in excess of the maximum amount permitted by applicable law shall be applied as a payment and reduction of the principal of the indebtedness evidenced by the Note; and, if the principal of the Note has been paid in full, any remaining excess shall forthwith be paid to Borrower. In determining whether or not the interest paid or payable exceeds the Maximum Rate, Borrower and Lender shall, to the extent permitted by applicable law, (i) characterize any non-principal payment as an expense, fee, or premium rather than as interest, (ii) exclude voluntary prepayments and the effects thereof, and (iii) amortize, prorate, allocate, and spread in equal or unequal parts the total amount of interest throughout the entire contemplated term of the indebtedness evidenced by the Note so that interest for the entire term does not exceed the Maximum Rate.

 

13.Applicable Law. This Agreement and all other documents and instruments executed pursuant hereto or in connection herewith and the transactions contemplated hereby are made and performable in Dallas County, Texas and shall be governed by and construed in accordance with the laws of the State of Texas and the applicable laws of the United States of America.

 

14.Severability. The unenforceability of any provision of this Agreement shall not affect the enforceability or validity of any other provision hereof.

 

15.Counterparts. This Agreement may be executed in any number of counterparts and by different parties hereto on separate counterparts, each of which when so executed shall be deemed to be an original and all of which when taken together shall constitute but one and the same instrument. Delivery of an executed counterpart by fax or pdf shall be effective as delivery of an original signature.

 

 

	
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Page 13

 

 

16.Miscellaneous. No modification, consent, amendment or waiver of any provision of this Agreement, nor consent to any departure by Borrower therefrom, shall be effective unless the same shall be in writing and signed by an officer of Lender, and then shall be effective only in the specific instance and for the purpose for which given. No notice to or demand on Borrower in any case shall, of itself, entitle Borrower to any other or further notice or demand in similar or other circumstances. No delay or omission by Lender in exercising any power or right hereunder shall impair any such right or power or be construed as a waiver thereof or any acquiescence therein, nor shall any single or partial exercise of any such power preclude other or further exercise thereof, or the exercise of any other right or power hereunder. All rights and remedies of Lender hereunder are cumulative of each other and of every other right or remedy which Lender may otherwise have at law or in equity or under any other contract or document, and the exercise of one or more rights or remedies shall not prejudice or impair the concurrent or subsequent exercise of other rights or remedies. All accounting terms not specifically defined herein shall be construed in accordance with GAAP on the basis used by Borrower in prior years. This Agreement is binding upon Borrower, its successors and assigns, and inures to the benefit of Lender, its successors and assigns; provided, however, that Borrower may not assign its rights or obligations hereunder without Lender’s prior written consent. 

 

17.Expenses of Lender. Borrower agrees to pay on demand all reasonable costs and expenses incurred by Lender in connection with the preparation, negotiation, execution and administration of this Agreement and the other Loan Documents and the transactions contemplated hereby. Borrower agrees to pay on demand all reasonable costs and expenses incurred by Lender in connection with any and all amendments, modifications, supplements to, and ongoing administration of this Agreement and the other Loan Documents, including without limitation the reasonable costs and fees of Lender’s legal counsel, and all costs and expenses incurred by Lender in connection with the enforcement or preservation of any rights under this Agreement or any other Loan Document, including without limitation the reasonable costs and fees of Lender’s legal counsel. In addition to the foregoing, to the extent that Borrower has not sufficiently drawn the proceeds of the Loan for its intended purposes (as determined by Lender in its sole but reasonable discretion) during the first twelve (12) months of this Loan, then Borrower agrees to pay Lender, upon demand (and Lender is authorized to draw Loan proceeds for such purposes), a “Non-Usage” fee equal to $50,000.00.

 

18.INDEMNIFICATION. EXCEPT FOR LENDER’S GROSS NEGLIGENCE OR WILFUL MISCONDUCT, BORROWER HEREBY INDEMNIFIES LENDER AND EACH AFFILIATE THEREOF AND THEIR RESPECTIVE OFFICERS, DIRECTORS, EMPLOYEES, ATTORNEYS, AND AGENTS FROM, AND HOLDS EACH OF THEM HARMLESS AGAINST, ANY AND ALL LOSSES, LIABILITIES, CLAIMS, DAMAGES, PENALTIES, JUDGMENTS, COSTS, AND EXPENSES (INCLUDING ATTORNEYS’ FEES) TO WHICH ANY OF THEM MAY BECOME SUBJECT WHICH DIRECTLY OR INDIRECTLY ARISE FROM OR RELATE TO (i) THE NEGOTIATION, EXECUTION, DELIVERY, PERFORMANCE, ADMINISTRATION, OR ENFORCEMENT OF ANY OF THE LOAN DOCUMENTS, (ii) ANY OF THE TRANSACTIONS CONTEMPLATED BY THE LOAN DOCUMENTS, (iii) ANY BREACH BY BORROWER OF ANY REPRESENTATION, WARRANTY, COVENANT, OR OTHER AGREEMENT CONTAINED IN ANY OF THE LOAN DOCUMENTS, OR (iv) ANY INVESTIGATION, LITIGATION, OR OTHER PROCEEDING, INCLUDING, WITHOUT LIMITATION, ANY THREATENED INVESTIGATION, LITIGATION, OR OTHER PROCEEDING RELATING TO ANY OF THE FOREGOING. Without limiting any provision of this agreement or of any other loan document, it is the express intention of the parties hereto that each person to be indemnified under this Section shall be indemnified from and held harmless against any and all losses, liabilities, claims, damages, penalties, judgments, costs, and expenses (including attorney’s fees) arising out of or resulting from the sole or contributory negligence of the person to be indemnified.

 

19.Limitation of Liability. Neither Lender nor any affiliate, officer, director, employee, attorney, or agent of Lender shall have any liability with respect to, and Borrower hereby waives, releases, and agrees not to sue any of them upon, any claim for any special, indirect, incidental, or consequential damages suffered  or incurred by Borrower in connection with, arising out of, or in any way related to, this Agreement or any of the other Loan Documents, or any of the transactions contemplated by this Agreement or any of the other Loan Documents. Borrower hereby waives, releases, and agrees not to sue Lender or any of Lender’s affiliates, officers, directors, employees, attorneys, or agents for punitive damages in respect of any claim in connection with, arising

 

 

	
LETTER LOAN AGREEMENT - #91425
	
 
	
Page 14

 

 

out of, or in any way related to, this Agreement or any of the other Loan Documents, or any of the transactions contemplated by this Agreement or any of the other LoanDocuments.

20.No Duty. All attorneys, accountants, appraisers, and other professional Persons and consultants retained by Lender shall have the right to act exclusively in the interest of Lender and shall have no duty of disclosure, duty of loyalty, duty of care, or other duty or obligation of any type or nature whatsoever to Borrower or any of Borrower’s shareholders or any other Person.

21.Lender Not Fiduciary. The relationship between Borrower and Lender is solely that of debtor and creditor, and Lender has no fiduciary or other special relationship with Borrower, and no term or condition of any of the Loan Documents shall be construed so as to deem the relationship between Borrower and Lender to be other than that of debtor and creditor.

22.Equitable Relief. Borrower recognizes that in the event Borrower fails to pay, perform, observe, or discharge any or all of the Obligations, any remedy at law may prove to be inadequate relief to Lender. Borrower therefore agrees that Lender, if Lender so requests, shall be entitled to temporary and permanent injunctive relief in any such case without the necessity of proving actual damages.

 

23.Participations. Lender shall have the right at any time and from time to time to grant participations in the Note and any other Loan Documents. Each participant shall be entitled to receive all information received by Lender regarding the creditworthiness of Borrower, including without limitation, information required to be disclosed to a participant pursuant to Banking Circular 181 (Rev., August 2, 1984), issued by the Comptroller of the Currency (whether the participant is subject to the circular or not).

 

24.Notices. All notices and other communications provided for in this Agreement and the  other Loan Documents to which Borrower is a party shall be given or made in writing and mailed by certified mail return receipt requested, or delivered by hand or nationally recognized overnight delivery service to the intended recipient at the “Address for Notices” specified below its name on the signature pages hereof; or, as to any party at such other address as shall be designated by such party in a notice to the other party given in accordance with this Section. Except as otherwise provided in this Agreement, all such communications shall be deemed to have been duly given when personally delivered or, in the case of a notice transmitted by mail or overnight delivery service, when duly deposited in the mails or the day following delivery to such service, in each case given or addressed as aforesaid.

25.Defined Terms. Defined terms (i.e., terms delineated with capital letters) not otherwise defined herein shall be given the meanings commonly ascribed to them by the FFIEC, FDIC, state banking authorities, or other authority, as reasonably determined by Lender.

	
 
	
26.
	
Omitted. 

 

27.Entire Agreement. THIS AGREEMENT, THE NOTE, AND THE OTHER LOAN DOCUMENTS REFERRED TO HEREIN EMBODY THE FINAL, ENTIRE AGREEMENT AMONG THE PARTIES HERETO AND SUPERSEDE ANY AND ALL PRIOR COMMITMENTS, AGREEMENTS, REPRESENTATIONS, AND UNDERSTANDINGS, WHETHER WRITTEN OR ORAL, RELATING TO THE SUBJECT MATTER HEREOF AND MAY NOT BE CONTRADICTED OR VARIED BY EVIDENCE  OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OR DISCUSSIONS OF THE PARTIES HERETO. THERE ARE NO ORAL AGREEMENTS AMONG THE PARTIES HERETO. The provisions of this Agreement and the other Loan Documents to which Borrower is a party may be amended or waived only by an instrument in writing signed by the parties hereto. The terms of this Agreement shall control to the extent of any direct conflict with the terms of the other Loan Documents; however, the parties acknowledge and agree that the other Loan Documents contain terms supplemental to the terms of this Agreement.

 

 

	
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28.WAIVER OF JURY TRIAL. TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, BORROWER HEREBY IRREVOCABLY AND EXPRESSLY WAIVES ALL RIGHT TO A TRIAL BY JURY IN ANY ACTION, PROCEEDING, OR COUNTERCLAIM (WHETHER BASED UPON CONTRACT, TORT, OR OTHERWISE) ARISING OUT OF OR RELATING TO ANY OF THE LOAN DOCUMENTS OR THE TRANSACTIONS CONTEMPLATED THEREBY OR THE ACTIONS OF LENDER IN THE NEGOTIATION, ADMINISTRATION, OR ENFORCEMENT THEREOF. 

 

29.Confidentiality. Except as provided in Section 23, above, Lender agrees that it will not disclose without the prior written consent of the Borrower (other than to its employees, auditors, accountants, or counsel or any of its affiliates, who shall agree to maintain the confidential nature of such information) any information with respect to the Borrower or its Subsidiaries which is furnished to it pursuant to this Agreement or any other Loan Document and which (i) the Borrower in good faith considers to be confidential, and (ii) is clearly marked as confidential, provided that Lender may disclose any such information (a) to any party to this Agreement; (b) to any Person if reasonably necessary to the administration of the Loan Documents; (c) as has been publicly disclosed; (d) as may be required or appropriate in any report, statement, or testimony submitted to or required by any municipal, state, or federal regulatory body having or claiming to have jurisdiction over the Lender or any of its affiliates or submitted to or required by the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, the Office of the Comptroller of the Currency, or similar organizations (whether in the United States of America or elsewhere) or their successors; (e) pursuant to any summons, subpoena, or other legal process, or in connection with any litigation; (f) in order to comply with any law, order, regulation, ruling, or other governmental requirement; (g) to any actual or proposed assignee, participant, or other transferee in connection with any other transfer of the Note, any advance under the loan, or any interest therein, provided that such assignee, participant or other transferee agrees to preserve the confidentiality of such information; or (h) in connection with the exercise of any right or remedy by Lender.

 

30.USA Patriot Act Notice. Lender hereby notifies Borrower that pursuant to the requirements of the USA Patriot Act (Title III of Pub.L. 107-56 (signed into law October 26, 2001)) (the “Act”), it is required to obtain, verify and record information that identifies Borrower, which information includes the name and address of Borrower and other information that will allow such Lender to identify Borrower in accordance with the Act.

 

[Balance of Page Intentionally Left Blank]

 

 

	
LETTER LOAN AGREEMENT - #91425
	
 
	
Page 16

 

 

	
 
	
 
	
Very truly yours,

 

INVESTAR HOLDING CORPORATION,

a Louisiana corporation
	
 

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
By:
	
 
	
 

	
 
	
 
	
 
	
John J. D’Angelo
	
 

	
 
	
 
	
 
	
President and Chief Executive Officer
	
 

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
Address for Notices: 7244 Perkins Road Baton Rouge, LA 70808
	
 

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
Fax:
	
 
	
 

	
 
	
 
	
Tel:
	
 
	
 

	
 
	
 
	
Attn:
	
 
	
 

 

Accepted and agreed to:

 

 

TIB - THE INDEPENDENT BANKERSBANK

 

 

	
By:
	
 

	
 
	
Barry C. Musgrove

	
 
	
Senior Vice President

 

Address for Notices: 

 

	
11701 Luna Road

	
Farmers Branch, TX 75234

	
Fax:
	
 
	
(972) 969-1609

	
Tel:
	
 
	
(972) 444-3533

	
Attn:
	
 
	
Shauna McKiel

 

 

 

	
LETTER LOAN AGREEMENT - #91425
	
 
	
Signature Page

 

 

SCHEDULE 1

 

Omitted

 

 

	
LETTER LOAN AGREEMENT - #91425
	
 
	
1-1

 

 

SCHEDULE 2 

DEBT

 

 

Debt subordinated to the Loan in the approximate amount of $3,609,000.00.

 

 

	
LETTER LOAN AGREEMENT - #91425
	
 
	
2-1

 

 

SCHEDULE 3 

EXISTING LIENS

 

 

None

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