Document:

tat-ex1022_756.htm

 

Exhibit 10.22

Confidential

 

Amended Promissory Note

Term Sheet

 

March 30, 2016

 

This term sheet summarizes certain terms proposed by the Special Committee of the Board of Directors of TransAtlantic Petroleum LTD. (the “Company”) regarding the potential amendment of the Promissory Note made by Dalea Partners, LP (“Dalea Partners”) on June 13, 2012 in favor of the Company (the “Note”).

 

	
Certain Terms of the Note as Currently in Effect

 

	
Principal Amount:
	
$11,500,000.00

 

	
Interest Rate and Payment:
	
3% per annum, with accrued interest paid quarterly on each January 1, April 1, July 1 and October 1 during the term of the Note

 

	
Maturity Date (without acceleration):
	
June 13, 2017

 

	
Certain Events Resulting in Acceleration of the Note:
	
 

(1)

(2)

 

 

(3)

(4)

 

(5)
	
 

IPO by Viking Services B.V. (“Viking”) or majority holder of equity securities of Viking;

disposal by Viking of majority of equity of subsidiaries of Viking (Viking International Ltd. (“VIL”) and Viking Geophysical Services) or substantially all of the assets of either subsidiary to a person not an affiliate of Viking;

reduction of Dalea Partners’ and its affiliates’ equity interest in Viking below 35%;

disposal by Dalea Partners or Viking of all or substantially all of its assets to any person that did not own a controlling equity interest in Dalea Partners or Viking when the Note was made; or

acquisition by any person that did not own a controlling equity interest in Dalea Partners or Viking when the Note was made of more than 50% of the voting interests of Dalea Partners or Viking.

 

	
Original Collateral:
	
 
	
None, but the Note is subject to a Guaranty, dated June 13, 2012, executed by N. Malone Mitchell, 3rd (“NMM”) in favor of the Company.

 

1

 

	
Proposed Terms of Amendment of the Note

 

	
Acceleration; Change of Control:
	
 
	
The parties would acknowledge that a principal purpose of including the events of acceleration in the Note was to insure that the well completion and fracking services (the “Services”) provided by Viking in Turkey would continue to be available to the Company.

 

Dalea Partners would represent to the Company that (1) Dalea Partners and/or NMM and their affiliates disposed of all of their interest in Viking on March 3, 2016, but obtained the Services business in that transaction (the “Viking Restructuring”), (2) such Services business is now owned by Production Solutions International Petrol Arama Hizmetleri Anonim Sirketi (“PSIL”), and (3) PSIL is controlled, directly or indirectly, by Dalea Partners and NMM.

 

The parties would acknowledge that PSIL has entered into a Master Services Agreement (the “MSA”) with the Company (or a subsidiary) pursuant to which PSIL has agreed to provide the Services to the Company (or a subsidiary) on a “most favored nation” pricing basis in accordance with the terms of the MSA. PSIL would agree to amend the MSA so that the term would not end prior to the maturity of the Note.

 

In order to insure that PSIL will continue to be able to provide the Services to the Company in Turkey, the following events would result in acceleration of the Note:

 

	
 
	
(1)

 

(2)

 

(3)

 

 

(4)

 

(5)

 

(6)
	
Reduction of ownership by Dalea Partners (and other controlled affiliates of NMM) of equity interest in PSIL to below 50%. 

Disposal by Dalea Partners or PSIL of all or substantially all of its assets to any person that does not own a controlling interest in Dalea Partners or PSIL and is not controlled by NMM.

Acquisition by any person not controlled by NMM and that does not own a controlling equity interest in Dalea Partners or PSIL of more than 50% of the voting interests of Dalea Partners or PSIL.

Termination of the MSA other than as a result of an uncured default thereunder by the Company (or its subsidiary).

Default by PSIL under the MSA, which default is not remedied within a period of 30 days after notice thereof to PSIL.

Insolvency or bankruptcy of PSIL.

 

2

 

	
Principal Amount:

 
	
 
	
The principal amount of the Note would be reduced by offsetting the principal amount of the Note against and in exchange for the payable owed by TransAtlantic Albania Ltd. to VIL and subject to an indemnity obligation of the Company  in the amount of $3,535,946.79 (the “Account”), which account has been assigned, or is assignable, by VIL to a person designated by NMM in connection with the Viking Restructuring.  In connection with the foregoing, NMM would cause VIL to assign (and to obtain any third party consents necessary to permit the assignment of) the Account to Dalea Partners so that it may be exchanged for the reduction in the Note contemplated above.

 

As a result of the foregoing, the principal balance of the Note, as amended, would be $7,964,053.21.

 

	
Collateral:
	
 
	
Dalea Partners would pledge as security for the Note the 13% Convertible Notes of the Company held by Dalea Partners in the principal amount of $2,050,000 (the “Dalea Convertible Notes”). NMM may convert or exchange the Dalea Convertible Notes into or for other securities of the Company. Any newly exchanged or converted security would then be pledged as substitute collateral.  

 

	
Principal Reduction:
	
 
	
Dalea Partners would agree that interest payable to Dalea Partners under the Dalea Convertible Notes would not be paid to Dalea Partners and instead would be credited against the outstanding principal balance of the Note. If the Dalea Convertible Notes are converted or exchanged as contemplated in the collateral provision above, any interest or dividends payable to Dalea Partners on these other securities of the Company would also be credited against the outstanding principal balance of the Note.  Dalea Partners would execute an irrevocable instruction to the paying agent for the Dalea Convertible Notes (and would agree to execute a similar letter if the Dalea Convertible Notes are converted or exchanged as described above) to pay any interest otherwise due under the Dalea Convertible Notes to the Company and the Company would agree to apply such amounts against the outstanding principal of the Note. 

 

	
Maturity Date:
	
 
	
The maturity of the Note would be extended by two years to June 13, 2019.

 

	
Interest Rate:
	
 
	
The interest rate and interest payment terms of the Note would remain the same.

 

	
Guaranty:
	
 
	
The Guaranty of the Note by NMM would remain in effect, but be amended so that the Guaranty would be deemed applicable to the Note as modified.

 

3

 

	
Documents:
	
 

 

(1)

(2)

(3)

(4)

(5)
	
The following operative documents will be prepared in connection with these proposed terms: 

 

Note Amendment Agreement outlining the transaction and the obligations of the parties thereunder.

Amended and  Restated Note

Pledge Agreement

Assignment Agreement (relating to the assignment of the Account)

Irrevocable Instruction to Paying Agent

	
 
	
 
	
 

 

The undersigned agree that this Summary of Terms reflects our mutual intentions to enter into definitive agreements based on the foregoing terms.

 

In furtherance of the foregoing, the Company hereby waives any requirement under the Note that Dalea Partners pay any amount of the principal of the Note that is or may be otherwise due in connection with the Viking Restructuring; provided that not later than April 15, 2016 Dalea Partners shall (1) enter into the Note Amendment Agreement, the Amended and Restated Note and the Pledge Agreement, each  in accordance with the terms set forth herein and (2) concurrently execute and deliver to the Company an assignment of the Account pursuant to the foregoing agreements and in the form of Exhibit A hereto.

 

	
TRANSATLANTIC PETROLEUM LTD.,

	
a Bermuda exempted company

	
 
	
 

	
 
	
 

	
By:
	
/s/ Chad Burkhardt 

	
 
	
 

	
Name:
	
Chad Burkhardt

	
 
	
 

	
Title:
	
Vice President

 

4

 

	
DALEA PARTNERS, LP, an Oklahoma limited partnership

	
 
	
 
	
 

	
By:
	
Dalea Management, LLC, its General Partner

	
 
	
 
	
 

	
 
	
 
	
 

	
By:
	
/s/ N. Malone Mitchell, 3rd

	
 
	
 
	
 

	
Name:
	
N. Malone Mitchell, 3rd

	
 
	
 
	
 

	
Title:
	
Manager

	
 
	
 
	
 

	
 
	
 
	
 

	
 
	
 
	
 

	
 
	
 
	
 

	
/s/ N. Malone Mitchell, 3rd 

	
N. MALONE MITCHELL, 3rd

	
 
	
 
	
 

	
 
	
Address:
	
4321 St. Johns Dr

	
 
	
 
	
 

	
 
	
 
	
Dallas, Texas 75205

5

 

Exhibit A

 

ASSIGNMENT AGREEMENT

 

THIS ASSIGNMENT AGREEMENT (this “Agreement”), dated as of April ___, 2016, is made by and between DALEA PARTNERS, LP, an Oklahoma limited partnership (“Dalea Partners”), and TRANSATLANTIC PETROLEUM LTD, an exempted company incorporated with limited liability under the laws of Bermuda (the “Company”).

 

RECITALS

 

WHEREAS, Dalea Partners and the Company are parties to that certain Note Amendment Agreement, dated as of the date hereof (the “Note Agreement”);

 

WHEREAS, pursuant to and in accordance with the Note Agreement, as partial payment for the Note, Dalea Partners has agreed to assign, transfer and deliver to the Company, free and clear of all liens, charges, claims and encumbrances, an account payable of $3,535,946.79 owed by a former subsidiary of the Company, TransAtlantic Albania Ltd., to Dalea Partners (as a result of an assignment to Dalea Partners by the original obligee of such account, Viking International Limited), which account is the subject of an indemnity obligation of the Company (the “Account”);

 

WHEREAS, the parties are entering into this Agreement to accomplish the assignment and transfer of the Account by Dalea Partners to the Company; and

 

WHEREAS, any capitalized term used herein and not otherwise defined shall have the meaning assigned to it in the Note Agreement.  

 

AGREEMENT

 

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Dalea Partners hereby assigns, transfers and delivers unto the Company and its successors and assigns all right, title and interest in and to the Account.  

 

Dalea Partners hereby represents and warrants to the Company that it is the sole owner of the Account and that the Account, and the transfer thereof to the Company in accordance with the preceding paragraph, is free and clear of all liens, charges, claims and encumbrances. 

 

This Agreement may be executed in one or more counterparts, each of which shall be deemed to be an original, and all of which together shall constitute one and the same document.

 

This Agreement and the legal relations between the parties hereto shall be governed by and construed in accordance with the laws of the State of Texas, regardless of the laws that might otherwise govern under applicable principles of conflicts of laws thereof.

 

[Remainder of page intentionally left blank – signature pages follow]

 

 

6

 

EXECUTED AND DELIVERED on the date first written above.

 

	
DALEA PARTNER, LP

	
By:
	
Dalea Management, LLC, its General Partner

	
 
	
 

	
 
	
 

	
 
	
 

	
By:
	
 

	
 
	
N. Malone Mitchell, 3rd, Manager

	
 
	
 

	
 
	
TRANSATLANTIC PETROLEUM LTD.

	
 
	
 

	
 
	
 

	
 
	
 

	
By:
	
 

	
Name:
	
 

	
Title:
	
 

 

7Exhibit
10.8

 

ROCAP
MARKETING, INC.

 

Conditional
Stock Grant Agreement

 

	Date
    of Grant:	August
    11, 2014

 

Parties:

 

	“Rocap”	Rocap
    Marketing, Inc., a Nevada corporation
	 	3283
    Windmist Ave., Thousand Oaks, CA 91362 U.S.A.
	 	 
	“Meyers”	Mark
    Meyers
	 	3283
    Windmist Ave., Thousand Oaks, CA 91362 U.S.A.

 

Premises:

 

	A.	The
    Share Exchange Agreement dated May 27, 2014 among Rocap, Meyers and Spiral, LLC provides that Rocap will create a bonus program
    whereby Meyers will earn shares of Rocap common stock upon Spiral achieving milestones to be agreed upon.
	 	 
	B.	To
    fix the terms under which the bonus shares will be issued, the parties are making this agreement.

 

Agreement:

 

	1.	If,
    during any fiscal quarter, Rocap/Spiral Operations (excluding payment of liabilities that were on the books of Rocap at June
    30, 2014) provide net cash, calculated in accordance with generally accepted accounting principles, then Rocap will issue
    to Meyers a certificate for two million, sixty three thousand, sixty seven (2,063,067) shares of common stock. The certificate
    will be issued promptly after Rocap files with the SEC its quarterly or annual report for the measured quarter.
	 	 
	 	For
    purposes hereof, “Rocap/Spiral Operations” shall mean the operations of Rocap on a consolidated basis, but excluding
    (a) operations discontinued on July 1, 2014, and (b) the operations of any subsidiary acquired after July 1, 2014.
	 	 
	2.	If,
    during each of the three consecutive calendar months, Rocap records Adjusted Income From Operations derived from Rocap/Spiral
    Operations, then Rocap will issue to Meyers a certificate for two million, sixty three thousand, sixty six (2,063,066) shares
    of common stock. The certificate will be issued promptly after Rocap files with the SEC its quarterly or annual report for
    the quarter containing the third measured month.

 

    	1

    	 	 	 

    

 

For
purposes hereof, “Adjusted Income From Operations” shall mean Income from Operations, calculated in accordance with
generally accepted accounting principles, including appropriate accruals but excluding any non-cash transactions such as stock-based
compensation or amortization of goodwill.

 

	3.	In
    the event that Rocap becomes party to a merger or consolidation in which Rocap is not the surviving entity, or in the event
    that Rocap sells substantially all of its assets and adopts a plan of liquidation, and if, on the date that Rocap executes
    the contract agreeing to such merger, consolidation or sale, Spiral LLC is a subsidiary of Rocap and has recorded revenue
    during the preceding fiscal quarter, then on the day prior to the effective date of such transaction Rocap will issue to Meyers
    a certificate for (a) four million, one hundred twenty-six thousand, one hundred thirty-three (4,126,133) shares of common
    stock less (b) any shares issued pursuant to Section 1 or Section 2 hereof. Upon the issuance of said certificate, Meyer’s
    right to receive shares pursuant to Section 1 or Section 2 hereof, whether accrued or not accrued, shall terminate.
	 	 
	4.	In
    the event that Meyers resigns from his position as an officer of Rocap, or if the Rocap board of directors removes Meyers
    from his position as an officer of Rocap for cause, then this agreement shall terminate, except with respect to rights accrued
    prior to the termination of employment.
	 	 
	5.	This
    agreement shall terminate on August 11, 2017.

 

ROCAP
MARKETING, INC.

 

	By:	/s/
    Gordon McDougall 	 	/s/
    Mark Meyers
	 	Gordon
    McDougall, Secretary	 	MARK
    MEYERS

 

    	2

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00256-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00256-of-00352.parquet"}]]