Document:

Exhibit 4.14

 

ZAZA ENERGY CORPORATION

1301 McKinney Street, Suite 2850

Houston, Texas 77010

 

SUPPLEMENT NO.       TO SECURITIES PURCHASE AGREEMENT

DATED AS OF AUGUST 5, 2015

 

Dated as of       , 2015

 

TO THE PURCHASER LISTED

IN THE ATTACHED SCHEDULE A:

 

Ladies and Gentlemen:

 

This Supplement No.        to Securities Purchase Agreement (this “Supplement” or this “Agreement”) is between ZaZa Energy Corporation, a Delaware corporation (the “Company”), and the institutional investor named on the attached Schedule A (the “Purchaser”).

 

Reference is hereby made to the Securities Purchase Agreement dated February 21, 2012 (as amended, restated, supplemented or otherwise modified from time to time, the “Securities Purchase Agreement”) among the Company and the purchasers listed on Schedule A thereto.  Capitalized terms not otherwise defined herein shall have the respective meanings ascribed in the Securities Purchase Agreement.  Reference is further made to paragraph 2A(2) of the Securities Purchase Agreement, which provides that Additional Notes may be issued pursuant to a Supplement.

 

The Company agrees with the Purchaser as follows:

 

1.                                      Authorization of the Additional Notes.  The Company has authorized the issue and sale of up to $500,000 aggregate principal amount of Notes to be designated as additional 8.00% Senior Secured Notes due February 21, 2017 (the “August 2015 Notes”).  The August 2015 Notes, together with the Original Notes heretofore issued pursuant to the Securities Purchase Agreement, are collectively referred to as the “Notes” (such term shall also include any such notes issued in substitution therefor pursuant to Section 13 of the Securities Purchase Agreement).  The August 2015 Notes shall be substantially in the form set out in Exhibit A attached hereto.

 

2.                                      Sale and Purchase of August 2015 Notes.  Subject to the terms and conditions herein and in the Securities Purchase Agreement, the Company will issue and sell to the Purchaser and the Purchaser will purchase from the Company, on the date hereof (the “Closing Date”), August 2015 Notes in the principal amount of $                at the purchase price of 100% of the principal amount thereof.

 

3.                                      Closing.  On the Closing Date, the Company will deliver to the Purchaser at the offices of 

 

 

the Company, the August 2015 Notes registered in the Purchaser’s or its nominee’s name, evidencing the aggregate principal amount of August 2015 Notes to be purchased by the Purchaser, against payment of the purchase price as provided in Section 2 above.

 

4.                                      Conditions to Closing under Supplement.  The Purchaser’s obligation to purchase and pay for the August 2015 Notes to be sold to the Purchaser on the Closing Date is subject to the fulfillment to such Purchaser’s satisfaction, on or prior to the Closing Date, that the Amendment No. 10 to Securities Purchase Agreement, dated as of the date hereof (the “Tenth Amendment”), by and among the Company and each of the holders of Securities that is a signatory thereto, is or shall be, concurrently with the effectiveness of this Agreement, in full force and effect.

 

5.                                      Payments.  The Company agrees that, so long as the Purchaser shall hold any August 2015 Note, the Company will make payments of principal of, interest on, any fees, and any Premium or other prepayment consideration payable with respect to, such August 2015 Note, which comply with the terms of the Securities Purchase Agreement, by wire transfer of immediately available funds for credit to (i) the account or accounts of the Purchaser specified on Schedule A to this Supplement or (ii) such other account or accounts in the United States of America as the Purchaser may designate in writing, notwithstanding any contrary provision herein or in any August 2015 Note with respect to the place of payment.  The Purchaser agrees that, before disposing of any August 2015 Note, it will make a notation thereon (or on a schedule attached thereto) of all principal payments previously made thereon and of the date to which interest thereon has been paid.

 

6.                                      Representations of the Company.  The Company hereby represents and warrants to the Purchaser that the execution, delivery and performance of this Supplement have been duly authorized by all requisite corporate authority or other action on the part of the Company, this Supplement has been duly executed and delivered by the Company, and this Supplement constitutes the legal, valid and binding obligations of the Company, enforceable against the Company in accordance with its terms.

 

7.                                      Representations and Acknowledgement of the Purchaser.  The Purchaser represents and warrants that the representations and warranties set forth in Section 10 of the Securities Purchase Agreement are true and correct on the date hereof with respect to the purchase of the August 2015 Notes by the Purchaser.  The Purchaser acknowledges that, as of July 15, 2015, the Company had triggered an Event of Default under paragraphs 8A(i) and 8A(iii) of the Securities Purchase Agreement, and the Company transmitted notices of such Events of Default to the holders of the Notes on July 21, 2015.  The Purchaser further acknowledges that, as of July 15, 2015, the Company had triggered an Event of Default under that certain indenture, dated October 22, 2012, with respect to the Company’s 9.00% Convertible Senior Notes due 2017 (the “Convertible Senior Notes”) and the Company transmitted a notice of such Event of Default to the trustee for the Convertible Senior Notes on July 21, 2015.  The Purchaser further acknowledges that, because of the circumstances described in the two immediately preceding sentences, as well as the liquidity issues that have been disclosed in the Company’s filings with the Securities and Exchange Commission, the Company does not make any representations or warranties with respect to (w) the Company’s incurrence of debt beyond the Company’s ability to pay such debts as they mature, (x) any knowledge of any facts or circumstances that would lead the Company to believe that it will file for bankruptcy or liquidation under bankruptcy or 

 

 

other reorganization laws, (y) whether the Company is in default with respect to any indebtedness or (z) any other aspects of the Company’s liquidity or solvency.

 

8.                                      Applicability of Securities Purchase Agreement.  The Company and the Purchaser agree to be bound by and comply with the terms and provisions of the Securities Purchase Agreement and the other Transaction Documents as fully and completely as if the Purchaser were an original signatory to the Securities Purchase Agreement as a holder of Notes (but not, for the avoidance of doubt, as a “Purchaser” as used and defined therein, other than solely for purposes of (i) Paragraphs 13B and 13F of the Securities Purchase Agreement and (ii) the Guaranty Agreement).

 

9.                                      References.  All references in the Securities Purchase Agreement and all other instruments, documents and agreements relating thereto, or entered into in connection therewith, shall be deemed to refer to the Securities Purchase Agreement, as supplemented by this Supplement.

 

10.                               Notices.  All notices and communications provided to the Purchaser under this Supplement or the Securities Purchase Agreement shall be in writing and sent in the manner specified in Section 13H of the Securities Purchase Agreement to the Purchaser or its nominee (as applicable) at the address specified for such communications in Schedule A to this Supplement, or at such other address as the Purchaser or its nominee shall have specified to the Company in writing.

 

11.                               Governing Law.  This Supplement shall be construed and enforced in accordance with, and the rights of the parties shall be governed by, the internal laws of the State of New York excluding choice-of-law principles of the law of such State that would permit the application of the laws of a jurisdiction other than such State.

 

[Remainder of page intentionally left blank.]

 

 

If you are in agreement with the foregoing, please sign the form of agreement on the accompanying counterpart of this Agreement and return it to the Company, whereupon the foregoing shall become a binding agreement between you and the Company.  This Agreement may be executed in any number of counterparts, each executed counterpart constituting an original but all together only one agreement.

 

	
 
    	
Very   truly yours,
    
	
 
    	
 
    
	
 
    	
ZAZA   ENERGY CORPORATION
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name: 
    	
Scott Gaille
    
	
 
    	
 
    	
Title:
    	
Chief Compliance   Officer and
    
	
 
    	
 
    	
 
    	
General Counsel
    

 

 

The foregoing is agreed to as of the date thereof.

 

[ADD PURCHASER SIGNATURE BLOCKS]

 

 

CONFIRMATION

 

Each of the undersigned acknowledges receipt of the foregoing Supplement to Securities Purchase Agreement dated as of August 5, 2015 and confirms the continuing validity and enforceability against such undersigned of the Guaranty Agreement to which such undersigned is a party.

 

	
 
    	
ZAZA   HOLDINGS, INC.,
    
	
 
    	
a Delaware   corporation
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name: 
    	
Scott Gaille
    
	
 
    	
 
    	
Title:
    	
Chief Compliance   Officer and
    
	
 
    	
 
    	
 
    	
General Counsel
    

 

 

	
 
    	
ZAZA   ENERGY, LLC,
    
	
 
    	
a Texas limited   liability company
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name: 
    	
Scott Gaille
    
	
 
    	
 
    	
Title:
    	
Chief Compliance   Officer and
    
	
 
    	
 
    	
 
    	
General Counsel
    

 

 

	
 
    	
TOREADOR   RESOURCES CORPORATION,
    
	
 
    	
a Delaware   corporation
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name: 
    	
Scott Gaille
    
	
 
    	
 
    	
Title:
    	
Chief Compliance   Officer and
    
	
 
    	
 
    	
 
    	
General Counsel
    

 

 

	
 
    	
ZAZA   ENERGY DEVELOPMENT, LLC,
    
	
 
    	
a Texas limited   liability company
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name: 
    	
Scott Gaille
    
	
 
    	
 
    	
Title:
    	
Chief Compliance   Officer and
    
	
 
    	
 
    	
 
    	
General Counsel
    

 

 

	
 
    	
ZAZA   PETROLEUM MANAGEMENT, LLC, a Texas limited liability company
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name: 
    	
Scott Gaille
    
	
 
    	
 
    	
Title:
    	
Chief Compliance   Officer and
    
	
 
    	
 
    	
 
    	
General Counsel
    

 

 

Schedule A

 

INFORMATION RELATING TO PURCHASER

 

	
Purchaser Name
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Name in which Notes are to be Registered
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Note Registration Number; Principal Amount
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Payment on Account of Note
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Method
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Account   Information
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Accompanying Information
    	
 
    	
Name of Company: ZAZA ENERGY CORPORATION
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Description of Securities:
    	
8% Senior Secured Notes due
    
	
 
    	
 
    	
 
    	
February 21, 2017
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
CUSIP 98919T AA8
    
	
 
    	
 
    	
 
    
	
Address for Notices Related to Payments
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Address for All Other Notices
    	
 
    	
 
    

 

 

Exhibit A

 

Form of Additional Note

 

See Exhibit 4.15 to this Current Report on Form 8-K

 

 

Schedule of Substantially Identical Agreements

 

Pursuant to Instruction 2 of Item 601(a) of Regulation S-K, the Company has filed only the form of this exhibit although the Company has entered into two such agreements that are substantially identical in all material respects.  Differences in certain details among such other agreements entered into by the Company are noted in the chart below:

 

	
Supplement 
   Number
    	
 
    	
Date
    	
 
    	
Principal Amount
    	
 
    	
Purchaser
    	
 
    
	
1
    	
 
    	
August 5, 2015
    	
 
    	
$
    	
187,000.00
    	
 
    	
Jubalee Ltd.
    	
 
    
	
2
    	
 
    	
August 5, 2015
    	
 
    	
$
    	
187,000.00
    	
 
    	
Todd A. BrooksExhibit 4.15

 

THIS NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR UNDER THE SECURITIES LAWS OF ANY STATE, AND, ACCORDINGLY MAY NOT BE TRANSFERRED, SOLD OR OTHERWISE DISPOSED OF UNTIL IT HAS BEEN SO REGISTERED UNDER SUCH ACT AND APPLICABLE STATE SECURITIES LAWS OR IF AN EXEMPTION FROM SUCH REGISTRATION IS AVAILABLE, EXCEPT UNDER CIRCUMSTANCES WHERE NEITHER SUCH REGISTRATION NOR SUCH AN EXEMPTION IS REQUIRED BY LAW.

 

ZAZA ENERGY CORPORATION

 

8.00% SENIOR SECURED NOTE DUE FEBRUARY 21, 2017

 

	
No. R-
    	
, 2015
    
	
$
    	
CUSIP: 98919T AA8
    

 

FOR VALUE RECEIVED, the undersigned, ZAZA ENERGY CORPORATION (the “Company”), a corporation organized and existing under the laws of the State of Delaware, hereby promises to pay to [                   ], or registered assigns, the principal sum of [                   ] DOLLARS on February 21, 2017, with interest (computed on the basis of a 360-day year and actual days elapsed, which will result in more interest being paid than if computed on the basis of a 365-day year) (a) on the unpaid principal balance hereof at the rate per annum specified in the Agreement (as defined below) from the date hereof until the principal hereof shall have become due and payable, payable in the manner and on the dates set forth in the Agreement, and (b) at a rate per annum from time to time equal to the Default Rate (as defined in the Agreement referred to below) (i) on any overdue payment of interest, and (ii) following the occurrence and during the continuance of an Event of Default (as defined in the Agreement), on the unpaid balance of the principal amount, any overdue payment of interest, and any overdue payment of any Premium or other prepayment consideration, in the case of each of clause (i) or clause (ii), payable quarterly as aforesaid (or, at the option of the registered holder hereof, on demand).

 

Except as otherwise provided in paragraph 13A of the Agreement, cash payments of principal of, interest on and any Premium or other prepayment consideration payable with respect to this Note are to be made at the main office of JPMorgan Chase Bank, N.A. in New York City or at such other place as the holder hereof shall designate to the Company in writing, in lawful money of the United States of America.

 

 

This Note is one of the Notes (herein called the “Notes”) issued pursuant to a Securities Purchase Agreement, dated as of February 21, 2012 (as amended, restated, supplemented or otherwise modified from time to time, the “Agreement”), between the Company and each of the Purchasers named therein and is entitled to the benefits thereof.  Capitalized terms used in this Note and not otherwise defined herein shall have the respective meanings ascribed to such terms in the Agreement.

 

This Note is a registered Note and, as provided in the Agreement, upon surrender of this Note for registration of transfer, duly endorsed, or accompanied by a written instrument of transfer duly executed, by the registered holder hereof or such holder’s attorney duly authorized in writing, a new Note for a like principal amount will be issued to, and registered in the name of, the transferee.  Prior to due presentment for registration of transfer, the Company may treat the person in whose name this Note is registered as the owner hereof for the purpose of receiving payment and for all other purposes, and the Company shall not be affected by any notice to the contrary.

 

The Company agrees to make required prepayments of principal on the dates and in the amounts specified in the Agreement.  This Note is also subject to optional prepayment, in whole or from time to time in part, on the terms specified in the Agreement.

 

This Note is secured by, and entitled to the benefits of, the Collateral Documents (as defined in the Agreement).

 

In case an Event of Default shall occur and be continuing, the principal of this Note may be declared or otherwise become due and payable in the manner and with the effect provided in the Agreement.

 

This Note shall be construed and enforced in accordance with, and the rights of the parties shall be governed by, the internal laws of the State of New York, excluding choice-of-law principles of the law of such state that would permit the application of the laws of a jurisdiction other than such state.

 

	
 
    	
ZAZA ENERGY CORPORATION,
    
	
 
    	
a Delaware corporation
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Scott   Gaille
    
	
 
    	
 
    	
Chief   Compliance Officer, General Counsel & Secretary
    

 

 

Schedule of Substantially Identical Agreements

 

Pursuant to Instruction 2 of Item 601(a) of Regulation S-K, the Company has filed only the form of this exhibit although the Company has entered into two such agreements that are substantially identical in all material respects.  Differences in certain details among such other agreements entered into by the Company are noted in the chart below:

 

	
Note Number
    	
 
    	
Date
    	
 
    	
Amount
    	
 
    	
Name of Payee
    	
 
    
	
R-12
    	
 
    	
August 5, 2015
    	
 
    	
$
    	
187,000.00
    	
 
    	
Jubalee Ltd.
    	
 
    
	
R-13
    	
 
    	
August 5, 2015
    	
 
    	
$
    	
187,000.00
    	
 
    	
Todd A. Brooks

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