Document:

Exhibit

Execution Version

SIXTH AMENDMENT AND CONSENT TO CREDIT AGREEMENT  
AND SECOND AMENDMENT TO GUARANTY AND COLLATERAL AGREEMENT

This SIXTH AMENDMENT AND CONSENT TO CREDIT AGREEMENT AND SECOND AMENDMENT TO GUARANTY AND COLLATERAL AGREEMENT (this “Sixth Amendment”), dated as of March 30, 2017, is by and among Archrock Services, L.P., a limited partnership formed under the laws of the state of Delaware (the “Borrower”), Archrock, Inc., a corporation formed under the laws of the state of Delaware (“Parent”), the Guarantors party hereto, the Lenders listed on the signature pages attached hereto and Wells Fargo Bank, National Association, as administrative agent for the Lenders (in such capacity, the “Administrative Agent”).
R E C I T A L S
A.    The Borrower, Parent, the Administrative Agent and the financial institutions from time to time party thereto (each, a “Lender” and collectively, the “Lenders”) are parties to that certain Credit Agreement, dated as of July 10, 2015 (as amended, restated, supplemented or otherwise modified prior to the date hereof, the “Credit Agreement”);  
B.    The Guarantors are parties to that certain Guaranty and Collateral Agreement, dated as of November 3, 2015 (as amended, restated, supplemented or otherwise modified from time to time, the “Guaranty and Collateral Agreement”);
C.    The Borrower has requested that the Administrative Agent enter into certain cash management agreements with respect to (i) certain of the Borrower’s deposit accounts, pursuant to which the Administrative Agent and Wells Fargo Bank, National Association, in its capacity as depositary bank, would agree to certain arrangements with respect to cash of Archrock Partners Operating LLC, a Delaware limited liability company (“Archrock Partners Operating”), that may from time to time be deposited in such deposit accounts and (ii) certain deposit accounts of Archrock Partners Operating, pursuant to which Wells Fargo Bank, National Association, in its capacity as depositary bank, and the APLP Agent (as defined below) would agree to certain arrangements with respect to cash of the Borrower that may from time to time be deposited in such deposit account; and
D.    The undersigned Lenders desire to consent to the Administrative Agent’s execution and delivery of the Cash Management Agreements described herein and to amend the Credit Agreement as provided herein; 
NOW, THEREFORE, in consideration of the premises and the mutual covenants herein contained, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:
Section 1.Defined Terms.  Each capitalized term used herein but not otherwise defined herein has the meaning given to such term in the Credit Agreement.  Unless otherwise indicated, all references to Sections, Articles, Annexes and Schedules in this Sixth Amendment refer to Sections, Articles, Annexes and Schedules of the Credit Agreement.

2" = "2" "US 4937833v.6" "" US 4937833v.6

Section 2.    Amendments to Credit Agreement and Guaranty and Collateral Agreement.
2.1    Additional Definitions.  Section 1.01 of the Credit Agreement is hereby amended to add thereto in alphabetical order the following definitions which shall read in full as follows:
“APLP Agent” means JPMorgan Chase Bank, N.A. in its capacity as administrative agent under the primary revolving credit facility for Archrock Partners Operating, together with any successors and assigns in such capacity from time to time.
“APLP Cash Collateral” has the meaning set forth in the AROC Cash Management Agreement.
“APLP Cash Management Agreement” means the APLP-WF Account Cash Management Agreement dated as of the Sixth Amendment Effective Date among the Borrower, Archrock Partners Operating, APLP Agent, the Administrative Agent and Wells Fargo Bank, National Association in its capacity as depositary bank. 
“Archrock Partners Operating” means Archrock Partners Operating LLC, a Delaware limited liability company.
“AROC Cash Management Agreement” means the AROC-WF Account Cash Management Agreement dated as of the Sixth Amendment Effective Date among the Borrower, Archrock Partners Operating, APLP Agent, the Administrative Agent and Wells Fargo Bank, National Association in its capacity as depositary bank.
“Cash Management Agreements” means the AROC Cash Management Agreement and the APLP Cash Management Agreement.
“Sixth Amendment” means that certain Sixth Amendment and Consent to Credit Agreement and Second Amendment to Guaranty and Collateral Agreement dated as of March 30, 2017, by and among the Borrower, Parent, the Lenders party thereto and the Administrative Agent.
“Sixth Amendment Effective Date” means March 30, 2017.
2.2    Amendment and Restatement of Definition.  Section 1.01 of the Credit Agreement is hereby amended by amending and restating the following definitions in their entireties to read in full as follows:
“Loan Documents” means this Agreement, the First Amendment, the Second Amendment, the Third Amendment, the Fourth Amendment, the Fifth Amendment, the Sixth Amendment, the Notes, the Letter of Credit Agreements, the Commitment Increase Certificates, the Additional Lender Certificates, the Letters of Credit, the Fee Letters, the Security Instruments, and each consent, waiver, subordination agreement, intercreditor agreement, Compliance Certificate, Borrowing Request, 

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Letter of Credit Request or Interest Election Request executed by the Borrower pursuant to this Agreement. 
“Security Instruments” means the Guaranty and Collateral Agreement, the Pledge Agreement, the Mortgages, the Account Control Agreements, the Cash Management Agreements and the other agreements, instruments or certificates described or referred to in Exhibit F, and any and all other agreements and instruments now or hereafter executed and delivered by the Borrower or any other Person (other than Hedging Agreements with the Lenders or any Affiliate of a Lender or participation or similar agreements between any Lender and any other lender or creditor with respect to any Secured Obligations pursuant to this Agreement or any Treasury Management Agreement) granting a Lien upon any Property as security for the payment or performance of the Secured Obligations.
2.3    Amendment to Section 8.06 (Collateral and Guarantees).  The proviso in Section 8.06(a) of the Credit Agreement is hereby amended by deleting “or” at the end of clause (J), inserting a comma in the place thereof, adding “or” at the end of clause (K), and adding a new clause (L) to read in its entirety as follows:
“(L)  any other property constituting APLP Cash Collateral”
2.4    Amendment to Section 9.11 (Disposition of Properties).  Section 9.11 of the Credit Agreement is hereby amended by deleting “and” at the end of clause (m), replacing “(m)” in clause (n) with “(n)”, renumbering clause (n) as clause (o), and adding a new clause (n) to read in its entirety as follows:
“(n) any Group Member may Dispose of any APLP Cash Collateral; and”
2.5    Amendment to Definition of Excluded Collateral in Guaranty and Collateral Agreement.  The definition of “Excluded Collateral” in the Guaranty and Collateral Agreement is amended to renumber clause (xi) as clause (xii) and to add the following clause (xi) immediately before the word “and” at the end of clause (x): “(xi) any APLP Cash Collateral,”.
2.6    Amendment to Section 6.01 of Guaranty and Collateral Agreement.  Section 6.01(d) of the Guaranty and Collateral Agreement is hereby amended by amending to read in full as follows: 
(d)    Notwithstanding anything to the contrary herein, in any other Loan Document, or in any Account Control Agreement entered into pursuant to the requirements of the Loan Documents, Administrative Agent hereby agrees that it will not deliver any “Access Termination Notice” or “Disposition Instructions” or any equivalent notice of exclusive control, or otherwise exercise any equivalent rights, in each case under any Account Control Agreement unless, in any such case, either (x) an Event of Default has occurred and is continuing or (y) it is obligated to do so under the terms of any Cash Management Agreement. 

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2.7    Amendment to Section 9.12 of Guaranty and Collateral Agreement.  Section 9.12 of the Guaranty and Collateral Agreement is hereby amended by amending and restating the last sentence of such section to read in full as follows:
“In addition to the foregoing, in connection with any termination and release pursuant to Section 9.12(a), the Administrative Agent, at the written request and expense of the Borrower, will promptly provide the requisite notice under any Account Control Agreement in order to terminate such Account Control Agreement, except to the extent it is prohibited from providing such notice under the terms of any Cash Management Agreement.”
Section 3.    Consent.
3.1    Subject to the occurrence of the Sixth Amendment Effective Date (as defined in Section 4 below), the Majority Lenders hereby consent to the execution and delivery by the Administrative Agent of the Cash Management Agreements.  
3.2    The consents set forth in this Section 3 are limited to the extent described herein and shall not be construed to be a consent to the modification of any other terms of the Credit Agreement or of the other Loan Documents, except as required to implement the consent set forth in this Section 3.
Section 4.    Conditions Precedent.  This Sixth Amendment shall not become effective until the date on which each of the following conditions is satisfied (or waived in accordance with Section 12.02 of the Credit Agreement) (the “Sixth Amendment Effective Date”):
4.1    The Administrative Agent shall have received from the Majority Lenders, the Borrower, and each Guarantor counterparts (in such number as may be requested by the Administrative Agent) of this Sixth Amendment signed on behalf of such Persons.
4.2    The Borrower shall have paid to the Administrative Agent all fees and other amounts due and payable on or prior to the Sixth Amendment Effective Date, including, to the extent invoiced, reimbursement or payment of all reasonable and documented out-of-pocket costs and expenses required to be reimbursed or paid by the Borrower under the Credit Agreement.
4.3    No Default or Event of Default shall have occurred and be continuing as of the date hereof after giving effect to the terms of this Sixth Amendment. 
4.4    The Administrative Agent shall have received such other documents as the Administrative Agent (or its counsel) may reasonably request relating to the transactions contemplated by the Sixth Amendment.
Section 5.    Miscellaneous.
5.1    Confirmation.  The provisions of the Credit Agreement, except as specifically amended or consented to above, or as amended by this Sixth Amendment, shall remain in full force and effect following the effectiveness of this Sixth Amendment.  The amendments contemplated 

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hereby shall not limit or impair any Liens granted by the Borrower or any other Loan Party to secure the Secured Obligations, each of which are hereby ratified, affirmed and extended to secure the Secured Obligations as they may be extended pursuant hereto.
5.2    Representations and Warranties.  
(a)    Ratification and Affirmation. The Borrower hereby: (i) acknowledges the terms of this Sixth Amendment; (ii) ratifies and affirms its obligations under, and acknowledges, renews and extends its continued liability under, each Loan Document to which it is a party and agrees that each Loan Document to which it is a party remains in full force and effect, except as expressly amended hereby, after giving effect to the amendments and consents contained herein; (iii) agrees that, from and after the Sixth Amendment Effective Date, each reference to the Credit Agreement or the Guaranty and Collateral Agreement in the Security Instruments and the other Loan Documents shall be deemed to be a reference to the Credit Agreement or the Guaranty and Collateral Agreement, as applicable, as amended by this Sixth Amendment; and (iv) represents and warrants to the Lenders that as of the date hereof, after giving effect to the terms of this Sixth Amendment, including the amendments and consents contained herein: (A) all of the representations and warranties made by the Borrower contained in each Loan Document to which it is a party are true and correct in all material respects (except that such materiality qualifier shall not be applicable to any representation or warranty that is already qualified or modified by materiality in the text thereof) on and as of the date hereof, except to the extent such representations and warranties are expressly limited to an earlier date, in which case, such representations and warranties are true and correct in all material respects as of such specified earlier date; and (B) no Default or Event of Default has occurred and is continuing.  
(b)    Corporate Authority; Enforceability; No Conflicts.  The Borrower hereby represents and warrants to the Lenders that (i) it has all necessary power and authority to execute, deliver and perform its obligations under this Sixth Amendment; (ii) the execution, delivery and performance by the Borrower of this Sixth Amendment has been duly authorized by all necessary action on its part; (iii) this Sixth Amendment has been duly executed and delivered by the Borrower and constitutes the legal, valid and binding obligation of the Borrower in accordance with its terms, except to the extent that the enforceability thereof may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws generally affecting creditor’s rights and by equitable principles (regardless of whether enforcement is sought in equity or at law); (iv) the execution and delivery of this Sixth Amendment by the Borrower and the performance of its obligations hereunder require no authorizations, approvals or consents of, or registrations or filings with, any Governmental Authority, except for those that have been obtained or made and are in effect; and (v) neither the execution and delivery of this Sixth Amendment nor the transactions contemplated hereby will (A) contravene, or result in a breach of, the Organization Documents of the Borrower, (B) violate any Governmental Requirement applicable to or binding upon the Borrower or any of its Properties, except to the extent that any such violation, individually or in the aggregate, would not reasonably be expected to have a Material Adverse Effect, or (C) violate or result in a default under any agreement or 

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instrument to which the Borrower is a party (other than any agreement or instrument the contravention of which or breach of which could not reasonably be expected to be materially adverse to any Secured Party) or by which it is bound or to which its Properties are subject, except to the extent that any such violation or default, individually or in the aggregate, would not reasonably be expected to have a Material Adverse Effect.
5.3    No Waiver.    Neither the execution by the Administrative Agent or the Lenders of this Sixth Amendment, nor any other act or omission by the Administrative Agent or the Lenders or their officers in connection herewith, shall be deemed a waiver by the Administrative Agent or the Lenders of any Default or Event of Default which may exist, which may have occurred prior to the date of the effectiveness of this Sixth Amendment or which may occur in the future under the Credit Agreement and/or the other Loan Documents.  Similarly, nothing contained in this Sixth Amendment shall directly or indirectly in any way whatsoever: (a) impair, prejudice or otherwise adversely affect the Administrative Agent’s or any Lender’s right at any time to exercise any right, privilege or remedy in connection with the Loan Documents with respect to any Default or Event of Default; (b) except as expressly provided herein, amend or alter any provision of the Credit Agreement, the other Loan Documents, or any other contract or instrument; or (c) constitute any course of dealing or other basis for altering any obligation of the Borrower or any right, privilege or remedy of the Administrative Agent or the Lenders under the Credit Agreement, the other Loan Documents or any other contract or instrument.
5.4    Loan Document.  This Sixth Amendment is a “Loan Document” as defined and described in the Credit Agreement and all of the terms and provisions of the Credit Agreement relating to Loan Documents shall apply hereto.
5.5    Parties in Interest.  All of the terms and provisions of this Sixth Amendment shall bind and inure to the benefit of the parties hereto and their respective successors and assigns.
5.6    Counterparts.  This Sixth Amendment may be executed by one or more of the parties hereto in any number of separate counterparts, and all of such counterparts taken together shall be deemed to constitute one and the same instrument.  Delivery of this Sixth Amendment by facsimile transmission or electronic transmission (e.g., PDF) shall be effective as delivery of a manually executed counterpart hereof.
5.7    NO ORAL AGREEMENT.  THIS SIXTH AMENDMENT, THE CREDIT AGREEMENT AND THE OTHER LOAN DOCUMENTS EXECUTED IN CONNECTION HEREWITH AND THEREWITH REPRESENT THE FINAL AGREEMENT AMONG THE PARTIES RELATING TO THE SUBJECT MATTER HEREOF AND THEREOF AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR UNWRITTEN ORAL AGREEMENTS OF THE PARTIES.  THERE ARE NO ORAL AGREEMENTS BETWEEN THE PARTIES.

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5.8    GOVERNING LAW.  THIS SIXTH AMENDMENT (INCLUDING, BUT NOT LIMITED TO, THE VALIDITY AND ENFORCEABILITY HEREOF) SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF TEXAS.
[Signature Pages Follow]

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IN WITNESS WHEREOF, the parties hereto have caused this Sixth Amendment to be duly executed as of the date first written above.

ARCHROCK SERVICES, L.P., a 
        Delaware limited partnership, as the Borrower  
 
 
        By:    /s/ David S. Miller     
        Name:    David S. Miller 
        Title:    Senior Vice President and 
Chief Financial Officer
ARCHROCK, INC., a Delaware corporation,
as Parent 
 
 
        By:    /s/ David S. Miller     
        Name:    David S. Miller 
        Title:    Senior Vice President and 
Chief Financial Officer

Reaffirmation and Ratification 
Sixth Amendment – Archrock Services, L.P.

WELLS FARGO BANK, NATIONAL ASSOCIATION, as Administrative Agent
and as a Lender

By:    /s/ Timothy P. Gebauer    
Name:    Timothy P. Gebauer
Title:    Director

Reaffirmation and Ratification 
Sixth Amendment – Archrock Services, L.P.

CRÉDIT AGRICOLE CORPORATE AND  
INVESTMENT BANK, as a Lender and Issuing Bank

 
By:    /s/ Michael Willis    
Name:    Michael Willis
Title:    Managing Director

By:    /s/ David Gurghigian    
Name:    David Gurghigian
Title:    Managing Director

Reaffirmation and Ratification 
Sixth Amendment – Archrock Services, L.P.

BANK OF AMERICA, N.A., as a Lender and Issuing Bank
 

 

 
By:    /s/ Kimberley Cole    
Name:    Kimberley Cole
Title:    Associate

Reaffirmation and Ratification 
Sixth Amendment – Archrock Services, L.P.

JPMORGAN CHASE BANK, N.A., as a Lender and Issuing Bank 
 
 
By:    /s/ Thomas Okamoto    
Name:    Thomas Okamoto
Title:    Authorized Officer

Reaffirmation and Ratification 
Sixth Amendment – Archrock Services, L.P.

ROYAL BANK OF CANADA, as a Lender and Issuing Bank 
 
 
By:    /s/ Kristan Spivey    
Name:    Kristan Spivey
Title:    Authorized Signatory

Reaffirmation and Ratification 
Sixth Amendment – Archrock Services, L.P.

THE BANK OF NOVA SCOTIA, as a Lender  
 
 
By:    /s/ J. Frazell    
Name:    J. Frazell
Title:    Director

Reaffirmation and Ratification 
Sixth Amendment – Archrock Services, L.P.

COMPASS BANK, as a Lender  
 
 
By:    /s/ Michael Song    
Name:    Michael Song
Title:    Senior Vice President

Reaffirmation and Ratification 
Sixth Amendment – Archrock Services, L.P.

CAPITAL ONE, NATIONAL ASSOCIATION, as a Lender  
 
 
By:    /s/ Matthew Brice    
Name:    Matthew Brice
Title:    Vice President

Reaffirmation and Ratification 
Sixth Amendment – Archrock Services, L.P.

SUMITOMO MITSUI BANKING CORPORATION, as a Lender 
 
 
By:    /s/ James D. Weinstein    
Name:    James D. Weinstein
Title:    Managing Director

Reaffirmation and Ratification 
Sixth Amendment – Archrock Services, L.P.

TORONTO DOMINION (NEW YORK) LLC, as a Lender 
 
 
By:    /s/ Lexanne Cooper    
Name:    Lexanne Cooper
Title:    Authorized Signatory

Reaffirmation and Ratification 
Sixth Amendment – Archrock Services, L.P.

GOLDMAN SACHS BANK USA, as a Lender 
 
 
By:    /s/ Ushma Dedhiya    
Name:    Ushma Dedhiya
Title:    Authorized Signatory

Reaffirmation and Ratification 
Sixth Amendment – Archrock Services, L.P.

MUFG UNION BANK, N.A., as a Lender 
 
 
By:    /s/ Stephen W. Warfel    
Name:    Stephen W. Warfel
Title:    Managing Director

Reaffirmation and Ratification 
Sixth Amendment – Archrock Services, L.P.

PNC BANK, NATIONAL ASSOCIATION, as a Lender 
 
 
By:    /s/ Stephen A. Manto    
Name:    Stephen A. Manto
Title:    Senior Vice President

Reaffirmation and Ratification 
Sixth Amendment – Archrock Services, L.P.

REGIONS BANK, as a Lender 
 
 
By:    /s/ David Valentine    
Name:    David Valentine
Title:    Director

Reaffirmation and Ratification 
Sixth Amendment – Archrock Services, L.P.

BRANCH BANKING AND TRUST COMPANY, as a Lender 
 
 
By:    /s/ Lincoln LaCour    
Name:    Lincoln LaCour
Title:    Assistant Vice President

Reaffirmation and Ratification 
Sixth Amendment – Archrock Services, L.P.

CITIBANK, N.A., as a Lender 
 
 
By:    /s/ Saqeeb Ludhi    
Name:    Saqeeb Ludhi
Title:    Vice President

Reaffirmation and Ratification 
Sixth Amendment – Archrock Services, L.P.

RAYMOND JAMES BANK, N.A., as a Lender 
 
 
By:    /s/ Scott G. Axelrod    
Name:    Scott G. Axelrod
Title:    Senior Vice President

Reaffirmation and Ratification 
Sixth Amendment – Archrock Services, L.P.

REAFFIRMATION AND RATIFICATION: Each Guarantor hereby (a) acknowledges the terms of this Sixth Amendment; (b) ratifies and affirms its obligations under, and acknowledges its continued liability under, each Loan Document to which it is a party, including the Guaranty and Collateral Agreement, and agrees that each Loan Document to which it is a party, including the Guaranty and Collateral Agreement, remains in full force and effect as expressly amended hereby; and (c) represents and warrants to the Lenders that, as of the date hereof, after giving effect to the terms of this Sixth Amendment: (i) all of the representations and warranties made by such Guarantor contained in each Loan Document to which such Guarantor is a party, including the Guaranty and Collateral Agreement, are true and correct in all material respects (except that such materiality qualifier shall not be applicable to any representation or warranty that is already qualified or modified by materiality in the text thereof) as though made on and as of the Sixth Amendment Effective Date (unless such representations and warranties are stated to relate to a specific earlier date, in which case, such representations and warranties shall be true and correct in all material respects as of such earlier date) and (ii) no Default or Event of Default has occurred and is continuing.

		
	ACKNOWLEDGED AND RATIFIED:
	ARCHROCK, INC. 

 
By:    /s/ David S. Miller     
Name:  David S. Miller
		
	Title: 
	Senior Vice President and Chief Financial Officer

ARCHROCK SERVICES LEASING LLC 

 
By:    /s/ David S. Miller     
Name:  David S. Miller
		
	Title: 
	Senior Vice President and Chief Financial Officer

ARCHROCK MLP LP LLC 

 
By:    /s/ David S. Miller     
Name:  David S. Miller
		
	Title: 
	Senior Vice President and Chief Financial Officer

Reaffirmation and Ratification 
Sixth Amendment – Archrock Services, L.P.

ARCHROCK GP LP LLC 

 
By:    /s/ David S. Miller     
Name:  David S. Miller
		
	Title: 
	Senior Vice President and Chief Financial Officer

Reaffirmation and Ratification 
Sixth Amendment – Archrock Services, L.P.wti-ex101_96.htm

Exhibit 10.1

W&T OFFSHORE, INC.
AMENDED AND RESTATED INCENTIVE COMPENSATION PLAN

Executive Annual Incentive Award Agreement

For Fiscal Year 2017

This potential Annual Incentive Award (the “Award”) is granted on March 30, 2017 (the “Award Date”), by W&T Offshore, Inc., a Texas corporation (the “Company”) to the executive whose name appears in the footer below (“Awardee” or “you”). 

WHEREAS, the Company in order to induce you to enter into and to continue to dedicate service to the Company and to materially contribute to the success of the Company agrees to grant you this Award; and

WHEREAS, this Award is granted to you pursuant to the W&T Offshore, Inc. Amended and Restated Incentive Compensation Plan, as may be amended from time to time (the “Plan”), and the following terms and conditions of this agreement (the “Agreement”) for the Company’s 2017 fiscal year.

NOW, THEREFORE, in consideration of and mutual covenants set forth herein and for other valuable consideration hereinafter set forth, the Award is hereby granted on the following terms and conditions:

1.Terms and Conditions.  The Award is subject to all the terms and conditions of the Plan.  All capitalized terms not defined in this Agreement shall have the meaning stated in the Plan.  If there is any inconsistency between the terms of this Agreement and the terms of the Plan, the terms of the Plan shall control unless this Agreement expressly states that an exception to the Plan is being made.

2.Definitions.  For purposes of this Agreement, the following terms shall have the meanings stated below.

(a)“Base Salary” means the base salary you received as an employee during the Performance Period, (i) including any amounts deferred pursuant to an election under any 401(k) plan, pre-tax premium plan, deferred compensation plan, or flexible spending account sponsored by the Company or any Subsidiary, and any overtime paid to you as an offshore employee required by your standard work schedule, but (ii)  excluding any incentive compensation, employee benefit, or other benefit paid or provided under any incentive, bonus or employee benefit plan sponsored by the Company or any Subsidiary, all overtime paid other than as specified in (i) above and/or any excellence award, gains upon stock option exercises, restricted stock grants or vesting, moving or travel expense reimbursement, sign on bonus, imputed income, or tax gross-ups, without regard to whether the payment or gain is taxable income to you.

(b)“Disability” means your permanent disability as defined in your Individual Agreement.  In the event that there is no existing written Individual Agreement between you and the Company or if any such agreement does not define Disability, the term “Disability” shall mean: (i) a physical or mental impairment of sufficient severity that, in the opinion of the 

  

Executive (2017): 

 

Company, (A) you are unable to continue performing the duties assigned to you prior to such impairment or (B) your condition entitles you to disability benefits under any insurance or employee benefit plan of the Company or its Subsidiaries, and (ii) the impairment or condition is cited by the Company as the reason for your termination; provided, however, that in all cases, the term Disability shall be applied and interpreted in compliance with section 409A of the Code and the regulations thereunder.

(c)“Individual Agreement” means any employment or severance agreement, if any, between you and the Company or any Subsidiary. 

(d)“Performance Goals” means the performance criteria established by the Committee pursuant to Section 8 of the Plan and set forth in Appendix A attached hereto.

(e)“Performance Period” means the Company’s complete fiscal year ending December 31, 2017.

(f)“Total Performance Score” means the aggregate number of points you are assigned as a result of the Committee’s review, analysis and certification of the achievement of the applicable Performance Goals set forth in Appendix A attached hereto for the Performance Period.  

3.Effect of Award Agreement.   This Award subject to all of the terms and conditions of the Agreement and the Plan; all decisions or interpretations of the Agreement and the Plan by the Committee are binding, conclusive and final. 

4.Target Award.  You are hereby awarded a target Award of ___% of your Base Salary (referred to herein as your “Target Award”) subject to the terms and conditions set forth in the Plan and this Agreement.  Subject to Sections 5 and 8 below, your Total Performance Score will determine whether you may receive an Award less than, equal to, or greater than your Target Award. 

5.Maximum Performance Levels.  The maximum Total Performance Score you may be assigned shall not exceed 200, nor may the payout of your Award exceed 200% of your Target Award amount.    

6.Award Calculation.  Your Award will be calculated as follows:

(a)Based on your Total Performance Score, the payout amount of your Award will be determined using the chart below:

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Executive (2017):   

 

		
		
	
Total Performance Score
	
Percentage of Target Award
Paid to You

	
200
	
200%

	
100
	
100%

	
50
	
50%

	
0
	
0%

(b)General Terms.  

(i)Payout multiples between the numbers 0 and 200 on the chart in Section 6(a) above will be calculated using straight-line interpolation.

(ii)Any Award that is earned will be paid in cash as soon as practicable after the Committee has certified the applicable Performance Goals were achieved for the Performance Period, but in no event later than the seventy-fifth (75th) day following the date the Performance Period ends.  However, notwithstanding anything within this Agreement to the contrary, the Company will not pay any such cash payment unless and until the following financial condition is achieved on or before December 31, 2019:  Adjusted EBITDA less Interest Expense Incurred, as reported by the Company in its announced Earnings Release with respect to the end of any fiscal quarter plus the three preceding fiscal quarters, exceeds $200 million.   In such case the cash payment will be made within 30 days following the achievement of this financial condition, but subject to all the terms of this Agreement, including but not limited to Sections 7(b) and 8; provided that the Committee in its sole discretion retains the right to pay any Award otherwise earned regardless of whether such financial condition is achieved.

(iii)You must be employed prior to September 30 within the Performance Period in order to be eligible to participate in the Plan for the Performance Period.

7.Effect of Termination of Employment.  Notwithstanding any provisions to the contrary below in the remainder of this Section 7, in the event of any inconsistency between this Section 7 and any written Individual Agreement you may have, the terms of such an Individual Agreement will control.   In the event you do not have an Individual Agreement or your Individual Agreement does not address the treatment of Annual Incentive Awards under the Plan, and your employment is terminated at any time on or after the Award Date and before the Award is paid, your Award will be treated as follows:

(a)Death or Disability.  If your termination of employment is a result of your death or Disability, as determined by the Company in its sole and complete discretion, you will receive a pro-rata Award, if an Award is payable for the Performance Period,  based on the Base Salary you received during the Performance Period (the “Pro-Rata Award”).  Subject to Section 6(b)(ii), you, your beneficiaries, or your estate, as applicable, will be paid in cash as soon as practicable after the Committee has certified the applicable Performance Goals were achieved for the Performance Period, but in no event later than the seventy-fifth (75th) day following the date the Performance Period ends; provided, however, that you must have been employed with the 

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Executive (2017):   

 

Company for a minimum of 90 days during the Performance Period in order to be eligible for a Pro-Rata Award described in this Section 7(a).

(b)Terminations other than Death or Disability.  Unless your termination of employment is a result of your death or Disability, you must be employed by the Company or a Subsidiary on the date Awards are paid in order to be eligible to receive payment of an Award.  You have no vested interest in the Award prior to the Award actually being paid to you by the Company.  If your employment with the Company or a Subsidiary terminates for any reason other than your death or Disability, whether your termination is voluntary or involuntary, with or without cause, you will not be eligible to receive payment of any Award for the Performance Period.

8.Right of the Committee.  The Committee has the right to increase, reduce or eliminate your Award for any reason regardless of the amount of your Total Performance Score achieved.

9.Right of the Company and Subsidiaries to Terminate Services.  Nothing in this Agreement confers upon you the right to continue in the employ of the Company or any Subsidiary, or interfere in any way with the rights of the Company or any Subsidiary to terminate your employment at any time, with or without cause.

10.Withholding Taxes.  The Company may require you to pay to the Company (or the Company’s Subsidiary if you are an employee of a Subsidiary of the Company), an amount the Company deems necessary to satisfy its (or its Subsidiary’s) current or future obligation to withhold federal, state or local income or other taxes that you incur as a result of the Award.  With respect to any such required tax withholding, the Company shall withhold from the payment to be issued to you under this Agreement the amount necessary to satisfy the Company’s obligation to withhold taxes.  

11.Furnish Information.  You agree to furnish to the Company all information requested by the Company to enable it to comply with any reporting or other requirements imposed upon the Company by or under any applicable statute or regulation.

12.No Liability for Good Faith Determinations.  The Company, the Committee and the members of the Board shall not be liable for any act, omission or determination taken or made in good faith with respect to this Agreement or the Award granted hereunder.

13.Execution of Receipts and Releases.  Any payment of cash to you, or to your legal representative, heir, legatee or distributee, in accordance with the provisions hereof, shall, to the extent thereof, be in full satisfaction of all claims of such Persons hereunder. The Company may require you or your legal representative, heir, legatee or distributee, as a condition precedent to such payment, to execute a release and receipt therefor in such form as the Company shall determine.

14.Notice.  All notices required or permitted under this Agreement must be in writing and personally delivered or sent by mail and shall be deemed to be delivered on the date on which it is actually received by the person to whom it is properly addressed or if earlier the date it is sent via certified United States mail. 

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15.Waiver of Notice.  Any person entitled to notice hereunder may waive such notice in writing.

16.Information Confidential.  As partial consideration for the granting of the Award hereunder, you hereby agree to keep confidential all information and knowledge, except that which has been disclosed in any public filings required by law, that you have relating to the terms and conditions of this Agreement; provided, however, that such information may be disclosed as required by law and may be given in confidence to your spouse and tax and financial advisors.  In the event any breach of this promise comes to the attention of the Company, it shall take into consideration that breach in determining whether to recommend the grant of any future similar award to you, as a factor weighing against the advisability of granting any such future award to you.

17.Nontransferability.  Neither this Agreement nor this Award subject to this Agreement shall be subject in any manner to anticipation, alienation, sale, exchange, transfer, assignment, pledge, encumbrance or garnishment by your creditors or your beneficiary, except transfer by will or by the laws of descent and distribution. All rights with respect to this Agreement shall be exercisable during your lifetime only by yourself or, if necessary, your guardian or legal representative.

18.Successors. This Agreement shall be binding upon you, your legal representatives, heirs, legatees and distributees, and upon the Company, its successors and assigns. 

19.Severability.  If any provision of this Agreement is held to be illegal or invalid for any reason, the illegality or invalidity shall not affect the remaining provisions hereof, but such provision shall be fully severable and this Agreement shall be construed and enforced as if the illegal or invalid provision had never been included herein.

20.Amendment.  Subject to Section 8, the Committee may amend this Agreement at any time; provided, however, that no such amendment may adversely affect your rights under this Agreement without your consent, except to the extent such amendment is reasonably determined by the Committee, in its sole discretion, to be necessary to comply with applicable law or to prevent a detrimental accounting impact. No amendment or addition to this Agreement shall be effective unless in writing.

21.Headings.  The titles and headings of Sections are included for convenience of reference only and are not to be considered in construction of the provisions hereof.

22.Governing Law.  All questions arising with respect to the provisions of this Agreement shall be determined by application of the laws of Texas, without giving any effect to any conflict of law provisions thereof, except to the extent Texas state law is preempted by federal law.  

23.Consent to Texas Jurisdiction and Venue.  You hereby consent and agree that state courts located in Harris County, Texas and the United States District Court for the Southern District of Texas each shall have personal jurisdiction and proper venue with respect to any dispute between you and the Company arising in connection with the Award or this Agreement.  

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In any dispute with the Company, you will not raise, and you hereby expressly waive, any objection or defense to any such jurisdiction as an inconvenient forum. 

24. The Plan.  This Agreement is subject to all the terms, conditions, limitations and restrictions contained in the Plan.

25.Clawback.To the extent required by applicable law or any applicable securities exchange listing standards, or as otherwise determined by the Committee,  this Award and amounts or shares paid or payable pursuant to or with respect to this Award shall be subject to the provisions of any applicable clawback policies or procedures adopted by the Company or its affiliates, which clawback policies or procedures may provide for forfeiture, repurchase and/or recoupment of this Award and amounts or shares paid or payable pursuant to or with respect to such Award.  Notwithstanding any provision of the Agreement to the contrary, the Company reserves the right, without your consent or the consent of any beneficiary of this Award, to adopt any such clawback policies and procedures, including such policies and procedures applicable to this Agreement with retroactive effect. By your acceptance of a cash payment pursuant to this Agreement, you are will be bound by such clawback policies or procedures and (2) you  may not seek indemnification or contribution from the Company for any amounts clawed back.

Executed by the Company as of the Award Date. 

W&T offshore, Inc.

 

/s/ Tracy W. Krohn

 

 Tracy W. Krohn, CEO

 

 

 

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Executive (2017):   

Exhibit 10.1

Appendix A - For Annual Plan

Performance Goals

The Performance Goals for your 2017 Annual Incentive Award shall be comprised of two equal portions: the “Business Criteria” and the “Company and Individual Performance Criteria.”  The Business Criteria will comprise 65% of your potential Award, and the Company and Individual Performance Criteria will comprise the remaining 35% of your potential Award.   

Your Total Performance Score will be calculated using the criteria and the scales below. The Committee shall review, analyze and certify the achievement of each of the criterion below, either for the Company or yourself, as applicable, and shall determine your Total Performance Score according to the aggregate number of points you receive from each of the scales below.   

Part 1. Business Criteria 

			
	
Target Criteria
	
Percentage of Weight Relative to your Total Potential Award
	
Points

	
Production Growth: equivalent production of 16.2 MMBoe for YE 2017, but taking into account the effect of property sales, if applicable, as approved by the Compensation Committee. 
	
25%
	
0-50

	
Reserve Growth:   total proven reserves of 78 MMBoe at YE2017; but taking into effect the effect of property sales year over year, if applicable, as approved by the Compensation Committee.
	
15%
	
0-30

	
LOE & G&A:  2017 LOE and G&A per Boe of production equal to $15.00/Boe (excluding hurricane expenses, insurance credits for such expenses and/or other extraordinary event, as approved by the Compensation Committee)
	
25%
	
0-50

	
     Total
	
65%
	
130

The number of points you receive on each individual scale shall be determined as follows, using a straight-line interpolation: 

	
 
	
(a)
	
Production Growth – Year end Production for 2076; but taking into account the effect of property sales, if applicable as approved by the Compensation Committee. (Measurement rounded to nearest 1/10th decimal)

		
	
Performance Level
	
Points

	
Maximum: 

greater than 20 MMBoe 
	
50

	
Target: 16.2 MMBoe
	
25

	
Threshold: 15.4 MMBoe 
	
12.5

	
Below Threshold
	
0

A-1

Executive (2017):   

 

 

 

	
 
	
(b)
	
Reserve Growth – total proven reserves at YE 2017 (MMBoe); and taking into consideration the effect of property sales year over year, if applicable as approved by the Compensation Committee.  (Measurement rounded to the nearest 1/10th decimal)

		
	
Performance Level
	
Points

	
Maximum:  85 MMBoe or greater 
	
30

	
Target:   78 MMBoe 
	
15

	
Threshold:  75 MMBoe 
	
7.5

	
Below Threshold
	
0

 

	
 
	
(c)
	
Combined LOE & G&A:  At YE2017, the combined LOE and G&A per Boe (both measurements excluding hurricane expenses, insurance credits for such expenses and/or other extraordinary event, as approved by the Compensation Committee).

(Measurement rounded to the nearest cent)

		
	
Performance Level
	
Points

	
Maximum:  Combined LOE and G&A per Boe of production is $13.00 or less/Boe 
	
50

	
Target:  Combined LOE and G&A per Boe of production is $15.00/Boe 
	
25

	
Threshold:  Combined LOE and G&A per Boe of production is $16.00/Boe  
	
12.5

	
Below Threshold
	
0

 

Part 2. Company and Individual Performance Criteria

			
	
Target  Criteria
	
Percentage of Weight Relative to your Total Potential Award
	
Points

	
Overall Company Performance Conditions
	
 
	
 

	
2017 Adjusted EBITDA Margin Percentage of  50%
	
20%
	
0-40

	
 
	
 
	
 

	
Individual Performance Conditions
	
 
	
 

	
Individual Performance as assessed by management for year 2017
	
15%
	
0-30

	
 
	
 
	
 

A-2

Executive (2017):   

 

 

			
	
Total for Overall Company Performance     

Conditions and Individual Performance Conditions Combined
	
35%
	
70

The number of points you receive on each individual scale shall be determined as follows, on straight-line interpolation: 

	
 
	
(a)
	
Adjusted EBITDA Margin Percentage at YE 2017:  

(Measurement rounded to nearest full percentage point)

		
	
Performance Level
	
Points

	
Maximum: 62% or greater 
	
40

	
Target: 50% 
	
20

	
Threshold: 48% 
	
10

	
Below Threshold
	
0

 

	
 
	
(b)
	
Individual Performance in 2017, assessed by management

(Measurement rounded to nearest 1/10th decimal)

		
	
Performance Level
	
Points

	
Maximum – Far Exceeded Expectations
	
30

	
Target – Exceeded Expectations
	
15

	
Threshold – Met expectations
	
7.5

	
Below Threshold
	
0

 

 

 

A-3

Executive (2017):

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