Document:

Exhibit 10.3

 

RSP PERMIAN, INC.

2014 LONG TERM INCENTIVE PLAN

 

RESTRICTED STOCK GRANT AND AWARD AGREEMENT

 

This Agreement is made and entered into as of                            (the “Date of Grant”) by and between RSP Permian, Inc., a Delaware corporation (the “Company”), and                                                (the “Grantee” or “you”);

 

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

 

WHEREAS, the Company adopted the RSP Permian, Inc. 2014 Long Term Incentive Plan as it may be amended from time to time (the “Plan”) under which the Company is authorized to grant restricted stock awards to certain employees and service providers of the Company;

 

WHEREAS, a copy of the Plan has been furnished to you and shall be deemed a part of this restricted stock grant and award agreement (“Agreement”) as if fully set forth herein and the terms capitalized but not defined herein shall have the meanings set forth in the Plan; and

 

WHEREAS, you desire to accept the restricted stock award made pursuant to this Agreement.

 

NOW, THEREFORE, in consideration of and mutual covenants set forth herein and for other valuable consideration hereinafter set forth, the parties agree as follows:

 

1.                                      The Grant.  Subject to the conditions set forth below, the Company hereby grants you effective as of                     , 2014 (the “Date of Grant”), as a matter of separate inducement but not in lieu of any salary or other compensation for your services for the Company, an award (the “Award”) consisting of                        shares of Stock in accordance with the terms and conditions set forth herein and in the Plan.

 

2.                                      Escrow of Restricted Shares.  The Company shall evidence the Restricted Shares in the manner that it deems appropriate.  The Company may issue in your name a certificate or certificates representing the Restricted Shares and retain that certificate or those certificates until the restrictions on such Restricted Shares expire as described in Section 5 of this Agreement or the Restricted Shares are forfeited as described in Sections 4 and 6 of this Agreement.  If the Company certificates the Restricted Shares, you shall execute one or more stock powers in blank for those certificates and deliver those stock powers to the Company.  The Company shall hold the Restricted Shares and the related stock powers pursuant to the terms of this Agreement, if applicable, until such time as (a) a certificate or certificates for the Restricted Shares are delivered to you, (b) the Restricted Shares are otherwise transferred to you free of restrictions, or (c) the Restricted Shares are canceled and forfeited pursuant to this Agreement.

 

3.                                      Ownership of Restricted Shares.  From and after the time the Restricted Shares are issued in your name, you will be entitled to all the rights of absolute ownership of the

 

 

Restricted Shares, including the right to vote those shares and to receive dividends thereon if, as, and when declared by the Board, subject, however, to the terms, conditions and restrictions set forth in this Agreement; provided, however, that each dividend payment will be made no later than the 60th day following the date such dividend payment is made to stockholders generally.

 

4.                                      Restrictions; Forfeiture.  The Restricted Shares are restricted in that they may not be sold, transferred or otherwise alienated or hypothecated until these restrictions are removed or expire as described in Section 5 of this Agreement.  The Restricted Shares are also restricted in the sense that they may be forfeited to the Company (the “Forfeiture Restrictions”).  You hereby agree that if the Restricted Shares are forfeited, as provided in Section 6, the Company shall have the right to deliver the Restricted Shares to the Company’s transfer agent for, at the Company’s election, cancellation or transfer to the Company.

 

5.                                      Expiration of Restrictions and Risk of Forfeiture.  The restrictions on the Restricted Shares granted pursuant to Section 4 of this Agreement will expire and the Restricted Shares will become transferable, except to the extent provided in Section 13 of this Agreement, and nonforfeitable, provided that you remain in the employ of, or a service provider to, the Company or its Subsidiaries until the applicable dates set forth in the following schedule:

 

	
Number of Shares of Restricted Shares
    	
 
    	
Vesting Date
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    

 

6.                                      Termination of Services and Change in Control.

 

(a)                                 Termination Generally.  Subject to subsection (c), if your service relationship with the Company or any of its Subsidiaries is terminated for any reason, then those Restricted Shares for which the restrictions have not lapsed as of the date of termination shall become null and void and those Restricted Shares shall be forfeited to the Company.  The Restricted Shares for which the restrictions have lapsed as of the date of such termination shall not be forfeited to the Company.

 

(b)                                 Change in Control. Notwithstanding the vesting schedule set forth in Section 5 above, upon the occurrence of a Change in Control, 100% of the Restricted Shares for which the restrictions have not yet lapsed as of the date of the Change in Control shall become immediately vested.

 

(c)                                  Effect of Employment Agreement.  Notwithstanding any provision herein to the contrary, in the event of any inconsistency between this Section 6 and any employment agreement entered into by and between you and the Company, the terms of the employment agreement shall control.

 

7.                                      Leave of Absence.  With respect to the Award, the Company may, in its sole discretion, determine that if you are on leave of absence for any reason you will be considered to still be in the employ of, or providing services for, the Company, provided that rights to the Restricted Shares during a leave of absence will be limited to the extent to which those rights were earned or vested when the leave of absence began.

 

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8.                                      Delivery of Stock.  Promptly following the expiration of the restrictions on the Restricted Shares as contemplated in Section 5 of this Agreement, the Company shall cause to be issued and delivered to you or your designee a certificate or other evidence of the number of Restricted Shares as to which restrictions have lapsed, free of any restrictive legend relating to the lapsed restrictions, upon receipt by the Company of any tax withholding as may be requested pursuant to Section 9.  The value of such Restricted Shares shall not bear any interest owing to the passage of time.

 

9.                                      Payment of 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 required tax withholding, you may (a) direct the Company to withhold from the shares of Stock to be issued to you under this Agreement the number of shares necessary to satisfy the Company’s obligation to withhold taxes; which determination will be based on the shares’ Fair Market Value at the time such determination is made; (b) deliver to the Company shares of Stock sufficient to satisfy the Company’s tax withholding obligations, based on the shares’ Fair Market Value at the time such determination is made; (c) deliver cash to the Company sufficient to satisfy its tax withholding obligations; or (d) satisfy such tax withholding through any combination of (a), (b) and (c).  If you desire to elect to use the stock withholding option described in subparagraph (a), you must make the election at the time and in the manner the Company prescribes.  The Company, in its discretion, may deny your request to satisfy its tax withholding obligations using a method described under subparagraph (a) or (b).

 

10.                               Compliance with Securities Law.  Notwithstanding any provision of this Agreement to the contrary, the issuance of Stock (including Restricted Shares) will be subject to compliance with all applicable requirements of federal, state, or foreign law with respect to such securities and with the requirements of any stock exchange or market system upon which the Stock may then be listed.  No Stock will be issued hereunder if such issuance would constitute a violation of any applicable federal, state, or foreign securities laws or other law or regulations or the requirements of any stock exchange or market system upon which the Stock may then be listed.  In addition, Stock will not be issued hereunder unless (a) a registration statement under the Securities Act of 1933, as amended (the “Act”), is at the time of issuance in effect with respect to the shares issued or (b) in the opinion of legal counsel to the Company, the shares issued may be issued in accordance with the terms of an applicable exemption from the registration requirements of the Act.  The inability of the Company to obtain from any regulatory body having jurisdiction the authority, if any, deemed by the Company’s legal counsel to be necessary to the lawful issuance and sale of any shares subject to the Award will relieve the Company of any liability in respect of the failure to issue such shares as to which such requisite authority has not been obtained.  As a condition to any issuance hereunder, the Company may require you to satisfy any qualifications that may be necessary or appropriate to evidence compliance with any applicable law or regulation and to make any representation or warranty with respect to such compliance as may be requested by the Company.  From time to time, the Board and appropriate officers of the Company are authorized to take the actions necessary and appropriate to file required documents with governmental authorities, stock exchanges, and other appropriate Persons to make shares of Stock available for issuance.

 

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11.                               Legends.  The Company may at any time place legends referencing any restrictions imposed on the shares pursuant to Sections 4 or 10 of this Agreement on all certificates representing shares issued with respect to this Award.

 

12.                               Right of the Company and Subsidiaries to Terminate Services.  Nothing in this Agreement confers upon you the right to continue in the employ of or performing services for the Company or any Subsidiary, or interfere in any way with the rights of the Company or any Subsidiary to terminate your employment or service relationship at any time.

 

13.                               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.

 

14.                               Remedies.  The parties to this Agreement shall be entitled to recover from each other reasonable attorneys’ fees incurred in connection with the successful enforcement of the terms and provisions of this Agreement whether by an action to enforce specific performance or for damages for its breach or otherwise.

 

15.                               No Liability for Good Faith Determinations.  The Company 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 Restricted Shares granted hereunder.

 

16.                               Execution of Receipts and Releases.  Any payment of cash or any issuance or transfer of shares of Stock or other property 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 or issuance, to execute a release and receipt therefor in such form as it shall determine.

 

17.                               No Guarantee of Interests.  The Board and the Company do not guarantee the Stock of the Company from loss or depreciation.

 

18.                               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.

 

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

 

20.                               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

 

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grant of any future similar award to you, as a factor weighing against the advisability of granting any such future award to you.

 

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

 

22.                               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.

 

23.                               Company Action.  Any action required of the Company shall be by resolution of the Board or by a person or entity authorized to act by resolution of the Board.

 

24.                               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.

 

25.                               Governing Law.  All questions arising with respect to the provisions of this Agreement shall be determined by application of the laws of Delaware without giving any effect to any conflict of law provisions thereof, except to the extent Delaware state law is preempted by federal law.  The obligation of the Company to sell and deliver Stock hereunder is subject to applicable laws and to the approval of any governmental authority required in connection with the authorization, issuance, sale, or delivery of such Stock.

 

26.                               Amendment.  This Agreement may be amended the Board or by the Committee at any time (a) if the Board or the Committee determines, in its sole discretion, that amendment is necessary or advisable in light of any addition to or change in any federal or state, tax or securities law or other law or regulation, which change occurs after the Date of Grant and by its terms applies to the Award; or (b) other than in the circumstances described in clause (a) or provided in the Plan, with your consent.

 

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

 

[Signature Page to Follow]

 

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IN WITNESS WHEREOF, the Company has caused this Agreement to be executed by its officer thereunto duly authorized, and the Grantee has set his hand as to the date and year first above written.

 

 

	
 
    	
RSP PERMIAN, INC.
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Title:
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
[GRANTEE NAME]
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
GRANTEE
    
				

 

6Exhibit 10.1

 

Execution Version

 

AMENDMENT NO. 4 TO AMENDED AND RESTATED 
 CREDIT AGREEMENT AND JOINDER AGREEMENT

 

This Amendment No. 4 to Amended and Restated Credit Agreement and Joinder Agreement (this “Agreement”) dated as of May 9, 2014 (the “Fourth Amendment Effective Date”) is among Triangle USA Petroleum Corporation, a Colorado corporation (the “Borrower”), Foxtrot Resources LLC, a Colorado limited liability company (the “Guarantor”), the undersigned Existing Lenders (as defined below), the New Lenders (as defined below), and Wells Fargo Bank, National Association, as Administrative Agent for the Lenders (in such capacity, the “Administrative Agent”) and as Issuing Lender (the “Issuing Lender”).

 

INTRODUCTION

 

A.            The Borrower, financial institutions party thereto as Lenders (the “Existing Lenders”), the Issuing Lender, and the Administrative Agent have entered into the Amended and Restated Credit Agreement dated as of April 11, 2013, the Consent Agreement dated as of June 28, 2013, the Amendment No. 1 to Amended and Restated Credit Agreement and Master Assignment dated as of July 30, 2013, the Amendment No. 2 to Amended and Restated Credit Agreement and Master Assignment dated as of October 16, 2013, and the Amendment No. 3 to Amended and Restated Credit Agreement dated as of January 13, 2014 (as so amended and modified and as may be otherwise amended, restated, or modified from time to time, the “Credit Agreement”).

 

B.            The Guarantor has entered into the Amended and Restated Guaranty Agreement dated as of April 11, 2013 (as amended, restated, or otherwise modified from time to time, the “Guaranty”) in favor of the Administrative Agent for the benefit of the Secured Parties (as defined in the Credit Agreement).

 

C.            The Borrower has requested that the Lenders and the Administrative Agent amend the Credit Agreement as set forth herein.

 

D.            The Borrower has requested and the Lenders have agreed to increase the Borrowing Base simultaneously with the effectiveness of this Agreement.

 

E.            In connection with the increase in the Borrowing Base provided in this Agreement, each of Capital One, N.A., Citibank, N.A. and Comerica Bank (each a “New Lender”) desires to become a Lender party to the Credit Agreement and the Administrative Agent shall adjust the Commitments of the Lenders such that, after giving effect to the joinder of the New Lenders, the Commitments of the Lenders are as set forth on Schedule I hereto.

 

THEREFORE, in fulfillment of the foregoing, the Borrower, the Guarantor, the Administrative Agent, the Issuing Lender, each Existing Lender and each New Lenders hereby agree as follows:

 

Section 1.              Definitions; References.  Unless otherwise defined in this Agreement, each term used in this Agreement which is defined in the Credit Agreement has the meaning assigned to such term in the Credit Agreement.

 

 

Section 2.              Joinder of New Lenders and Adjustment to Commitments.

 

(a)           The Commitment of each Existing Lender is adjusted to the amount set forth opposite its name on Schedule I hereto.

 

(b)           Each New Lender is hereby added to the Credit Agreement as a Lender with the Commitment set forth opposite its name on Schedule I hereto, and each such New Lender agrees to be bound by all of the terms and provisions of the Credit Agreement binding on each Lender.

 

(c)           Each Lender acknowledges that it has, independently and without reliance upon the Administrative Agent or any other Lender and based on the financial statements referred to in Section 5.2 of the Credit Agreement and such other documents and information as it has deemed appropriate, made its own credit analysis and decision to enter into this Agreement and to agree to the various matters set forth herein.  Each Lender also acknowledges that it will, independently and without reliance upon the Administrative Agent or any other Lender and based on such documents and information as it shall deem appropriate at the time, continue to make its own credit decisions in taking or not taking action under the Credit Agreement.

 

(d)           The Administrative Agent, the Issuing Lender and the Borrower each hereby consents to the joinder of the New Lenders made under this Section 2.

 

Section 3.              Amendments to Credit Agreement.  Upon the satisfaction of the conditions specified in Section 7 of this Agreement, and effective as of the date set forth above, the Credit Agreement is amended as follows:

 

(a)           Section 1.1 of the Credit Agreement is amended to add the following definitions in alphabetical order:

 

“Fourth Amendment” means the Amendment No. 4 to Amended and Restated Credit Agreement and Joinder Agreement dated as of the Fourth Amendment Effective Date the Borrower, the Guarantor, the Lenders party thereto, the Administrative Agent and the Issuing Lender.

 

“Fourth Amendment Effective Date” means May 9, 2014.

 

“Acquisition No. 1” means the acquisition of the Acquisition No. 1 Assets by the Borrower prior to August 1, 2014.

 

“Acquisition No. 1 Assets” means the Oil and Gas Properties, evaluated in the Engineering Report dated as of March 1, 2014 provided to the Administrative Agent and the Lenders on April 7, 2014, which Engineering Report covers properties solely in Williams County, North Dakota and which the Borrower intends to acquire from a third party identified to the Administrative Agent and the Lenders.

 

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“Acquisition No. 1 Effective Date” means the date on which each of the following conditions has been satisfied: (a) the Borrower has acquired (or substantially simultaneously therewith shall have acquired) the Acquisition No. 1 Assets, with such reductions or modifications to the Acquisition No. 1 Assets as may be acceptable to the Administrative Agent, including any reduction of the Acquisition No. 1 Assets that may be subject to a Acquisition No. 1 Reduction Amount, and (b) the Borrower shall have paid to the Administrative Agent for the account of each Lender a Borrowing Base increase fee in an amount equal to 0.45% of the excess (if any) of (x) each Lender’s Pro Rata Share of the Borrowing Base immediately after the Acquisition No. 1 Effective Date over (y) such Lender’s Pro Rata Share of the Borrowing Base immediately prior to the Acquisition No. 1 Effective Date; provided that the Acquisition No. 1 Effective Date must occur prior to August 1, 2014.

 

“Acquisition No. 1 Reduction Amount” means, with respect to any Acquisition No. 1 Assets that either (a) will not be acquired by the Borrower, or (b) will be acquired by the Borrower, but are subject to title defects that are not acceptable to the Administrative Agent in its reasonable business judgment, an amount corresponding to the BB Value of such Acquisition No. 1 Assets, had such Acquisition No. 1 Assets been included in the most recently determined Borrowing Base.

 

“Permitted Distribution Amount” means an amount not to exceed the amount of cash contributions received from the Parent after the Fourth Amendment Effective Date and applied as consideration for Acquisition No. 1 or other acquisitions of Oil and Gas Properties acceptable to the Administrative Agent occurring prior to August 1, 2014; provided that such amounts of cash contributions are used for no purposes other than as consideration for Acquisition No. 1 or such other acquisitions of Oil and Gas Properties acceptable to the Administrative Agent.

 

(b)           Section 2.2(a) of the Credit Agreement is amended to read in its entirety as follows:

 

“(a)         Borrowing Base.  The Borrowing Base in effect as of the Fourth Amendment Effective Date has been set by the Administrative Agent and the Lenders and acknowledged by the Borrower as $355,000,000.  Such Borrowing Base shall remain in effect until the next redetermination or reduction made pursuant to this Section 2.2.  The Borrowing Base shall be determined in accordance with the standards set forth in Section 2.2(d) and is subject to periodic redetermination pursuant to Sections 2.2(b), and

 

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2.2(c), reductions pursuant to Section 2.2(e) and increases pursuant to Section 2.2(f).”

 

(c)           Section 2.2(b)(i) of the Credit Agreement is amended to read in its entirety as follows:

 

“(i)          The Borrower shall deliver to the Administrative Agent on or before July 1, 2013 and July 1, 2014, an Internal Engineering Report dated effective as of June 1, 2013 or June 1, 2014, as applicable, and such other information as may be reasonably requested by any Lender with respect to the Oil and Gas Properties included or to be included in the Borrowing Base.  Within 30 days after the Administrative Agent’s receipt of such Internal Engineering Report and other information, (A) the Administrative Agent shall deliver to each Lender the Administrative Agent’s recommendation for the redetermined Borrowing Base, (B) the Administrative Agent and the Lenders shall redetermine the Borrowing Base in accordance with Section 2.2(d), and (C) the Administrative Agent shall promptly notify the Borrower in writing of the amount of the Borrowing Base as so redetermined.”

 

(d)           A new Section 2.2(f) of the Credit Agreement is added to read in its entirety as follows:

 

“(f)          Increases to Borrowing Base and Reallocation of Commitments.

 

(i)            Acquisition No. 1.  Effective on the Acquisition No. 1 Effective Date, the Borrowing Base shall be increased by an amount equal to $10,000,000 minus the Acquisition No. 1 Reduction Amount, if any (the “Acquisition No. 1 Increase Amount”).  The Acquisition No. 1 Increase Amount shall be allocated equally to each of (A) Capital One, N.A., (B) Citibank, N.A. and (C) Comerica Bank. Upon the effectiveness of the increase in the Borrowing Base described in this Section 2.2(f)(i), the Administrative Agent shall adjust the Commitments of the Lenders to correspond to the non-pro rata increase in the Borrowing Base and shall notify the Lenders and the Borrower of such adjusted Commitments and shall provide the Borrower and the Lenders a revised Schedule I reflecting such adjusted Commitments. Each Lender shall be deemed to have entered into an Assignment and Acceptance such that after giving effect to such Assignment and Acceptance the Commitment of each Lender shall equal the adjusted Commitments provided by the Administrative Agent hereunder.

 

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(e)           Section 5.2(c)(i) is amended to read in its entirety as follows:

 

“(i)          As soon as available but in any event on or before July 1, 2013 and July 1, 2014, an Internal Engineering Report dated effective as of June 1, 2013 or June 1, 2014, as applicable;”

 

(f)            Section 5.14 is amended to read in its entirety as follows:

 

“Section 5.14        Post-Closing Covenant.

 

(a) within 10 Business Days (or such longer period to which the Administrative Agent may agree in its sole discretion) after the Acquisition No. 1 Effective Date, the Borrower shall provide Mortgages causing the Administrative Agent to have an Acceptable Security Interest in the Acquisition No. 1 Assets acquired by the Credit Parties.”

 

(g)           Section 6.1(j)(i) is amended to read in its entirety as follows:

 

“(i)          the aggregate principal amount of all such Second Lien Debt may not exceed $100,000,000 at any time;”

 

(h)           Section 6.9 of the Credit Agreement is amended to read in its entirety as follows:

 

“Section 6.9          Restricted Payments.  No Credit Party shall make, nor shall it permit any of its Subsidiaries to make any Restricted Payments except that:

 

(a)           so long as no Default, Event of Default or Borrowing Base Deficiency exists or would result therefrom (i) the Subsidiaries of the Borrower may make Restricted Payments to the Borrower or any other Credit Party that is a Subsidiary of the Borrower, and (ii) the Credit Parties may make Restricted Payments in respect of subordinated Debt permitted pursuant to Section 6.1(b) or (h);

 

(b)           so long as (i) no Default, Event of Default or Borrowing Base Deficiency exists or would result therefrom, (ii) after giving effect to such Restricted Payment, the Leverage Ratio calculated on a pro forma basis measuring EBITDAX as of the most recent fiscal quarter end for which financial statements have been delivered pursuant to Section 5.2(a) or (b), and measuring Debt as of the date such Restricted Payment is made (including the incurrence of Debt described in clause (iii) below incurred on the date such Restricted Payment is made) shall not be more than 3.50 to 1.00, and (iii) the sum of net cash proceeds received by the Borrower from (1) the incurrence of Debt issued pursuant to Section 6.1(i) (in excess of any amount applied to repay Debt issued pursuant to Section 6.1(j))

 

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plus (2) the incurrence of Debt issued pursuant to Section 6.1(j) in excess of $60,000,000, collectively, equals or exceeds the Permitted Distribution Amount, the Borrower may make a single cash Restricted Payment to Parent within 30 Business Days after the condition in clause (iii) above has been satisfied, in an amount not to exceed the Permitted Distribution Amount; and

 

(c) the Borrower and any Subsidiary may pay any management fee or similar fee to any Affiliate of the Borrower or its Subsidiaries pursuant to the Management Agreement; provided that any amendments, modifications, or side letters with respect to the Management Agreement after the Closing Date are acceptable to the Administrative Agent.”

 

(i)            Schedule I to the Credit Agreement is amended to read in its entirety as set forth on Schedule I hereto.

 

Section 4.              Reaffirmation of Liens.

 

(a)           Each of the Borrower and the Guarantor (i) is party to certain Security Documents securing and supporting the Borrower’s and Guarantor’s obligations under the Credit Documents, (ii) represents and warrants that it has no defenses to the enforcement of the Security Documents and that according to their terms the Security Documents will continue in full force and effect to secure the Borrower’s and Guarantor’s obligations under the Credit Documents, as the same may be amended, supplemented, or otherwise modified, and (iii) acknowledges, represents, and warrants that the liens and security interests created by the Security Documents are valid and subsisting and create a first and prior Lien (subject only to Permitted Liens) in the Collateral to secure the Secured Obligations.

 

(b)           The delivery of this Agreement does not indicate or establish a requirement that any Credit Document requires the Guarantor’s approval of amendments to the Credit Agreement.

 

Section 5.              Reaffirmation of Guaranty.  The Guarantor hereby ratifies, confirms, and acknowledges that its obligations under the Guaranty and the other Credit Documents are in full force and effect and that the Guarantor continues to unconditionally and irrevocably guarantee the full and punctual payment, when due, whether at stated maturity or earlier by acceleration or otherwise, of all of the Guaranteed Obligations (as defined in the Guaranty), as such Guaranteed Obligations may have been amended by this Agreement.  The Guarantor hereby acknowledges that its execution and delivery of this Agreement do not indicate or establish an approval or consent requirement by the Guarantor under the Credit Agreement in connection with the execution and delivery of amendments, modifications or waivers to the Credit Agreement, the Notes or any of the other Credit Documents.

 

Section 6.              Representations and Warranties.  Each of the Borrower and the Guarantor represents and warrants to the Administrative Agent and the Lenders  that:

 

(a)           the representations and warranties set forth in the Credit Agreement and in the other Credit Documents are true and correct in all material respects as of the date of this

 

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Agreement (except to the extent such representations and warranties relate to an earlier date, in which case such representations and warranties shall be true and correct in all material respects as of such earlier date); provided that such materiality qualifier shall not apply if such representation or warranty is already subject to a materiality qualifier in the Credit Agreement or such other Credit Document;

 

(b)           (i) the execution, delivery, and performance of this Agreement are within the corporate, limited partnership or limited liability company power, as appropriate, and authority of the Borrower and Guarantors and have been duly authorized by appropriate proceedings and (ii) this Agreement constitutes a legal, valid, and binding obligation of the Borrower and Guarantors, enforceable against the Borrower and Guarantors in accordance with its terms, except as limited by applicable bankruptcy, insolvency, reorganization, moratorium, or similar laws affecting the rights of creditors generally and general principles of equity; and

 

(c)           as of the effectiveness of this Agreement and after giving effect thereto, no Default or Event of Default has occurred and is continuing.

 

Section 7.              Effectiveness.  This Agreement shall become effective as of the date hereof upon the occurrence of all of the following:

 

(a)           Documentation. The Administrative Agent shall have received the following, duly executed by all the parties thereto, in form and substance reasonably satisfactory to the Administrative Agent and the Lenders:

 

(1)           this Agreement, duly and validly executed by each party hereto;

 

(2)           A Note, if requested by any New Lender, in the amount of such New Lender’s pro forma Commitment after giving effect to each of the Borrowing Base increases provided herein.

 

(b)           Representations and Warranties.  The representations and warranties in this Agreement being true and correct in all material respects before and after giving effect to this Agreement (except to the extent such representations and warranties relate to an earlier date, in which case such representations and warranties shall be true and correct in all material respects as of such earlier date); provided that such materiality qualifier shall not apply if such representation or warranty is already subject to a materiality qualifier in the Credit Agreement or such other Credit Document.

 

(c)           No Default or Event of Default. There being no Default or Event of Default which has occurred and is continuing.

 

(d)           Fees. The Borrower shall have paid to the Administrative Agent for the account of each Lender a Borrowing Base increase fee in an amount equal to 0.45% of the excess (if any) of (x) each Lender’s Pro Rata Share of the Borrowing Base immediately after the Fourth Amendment Effective Date over (y) such Lender’s Pro Rata Share of the Borrowing Base immediately prior to the Fourth Amendment Effective Date.

 

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(e)           Expenses.  The Borrower’s having paid all costs, expenses, and fees which have been invoiced and are payable pursuant to Section 9.1 of the Credit Agreement or any other agreement, including, without limitation, any upfront fee paid in connection with any increase to the Borrowing Base agreed to among the parties hereto.

 

Section 8.              Effect on Credit Documents.  Except as amended herein, the Credit Agreement and the Credit Documents remain in full force and effect as originally executed, and nothing herein shall act as a waiver of any of the Administrative Agent’s or Lenders’ rights under the Credit Documents.  This Agreement is a Credit Document for the purposes of the provisions of the other Credit Documents.  Without limiting the foregoing, any breach of representations, warranties, and covenants under this Agreement is a Default or Event of Default under other Credit Documents.

 

Section 9.              Choice of Law.  This Agreement shall be governed by and construed and enforced in accordance with the laws of the State of New York without regard to conflicts of laws principles (other than Sections 5-1401 and 5-1402 of the General Obligations Law of the State of New York).

 

Section 10.            Counterparts.  This Agreement may be signed in any number of counterparts, each of which shall be an original.

 

THIS WRITTEN AGREEMENT AND THE CREDIT DOCUMENTS, AS DEFINED IN THE CREDIT AGREEMENT, REPRESENT THE FINAL AGREEMENT AMONG THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES.  THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.

 

[The remainder of this page has been left blank intentionally.]

 

8

 

EXECUTED as of the date first set forth above.

 

	
 
    	
BORROWER:
    
	
 
    	
 
    
	
 
    	
 
    	
TRIANGLE USA PETROLEUM CORPORATION
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:   
    	
/s/   Jonathan Samuels
    
	
 
    	
 
    	
Name:
    	
Jonathan   Samuels
    
	
 
    	
 
    	
Title:
    	
President
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
GUARANTOR:
    
	
 
    	
 
    
	
 
    	
 
    	
FOXTROT   RESOURCES LLC
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:   
    	
/s/   Jonathan Samuels
    
	
 
    	
 
    	
Name:
    	
Jonathan   Samuels
    
	
 
    	
 
    	
Title:
    	
President
    

 

[SIGNATURE PAGE TO AMENDMENT NO. 4 TO A&R CREDIT AGREEMENT — TRIANGLE USA PETROLEUM]

 

 

	
 
    	
 
    	
ADMINISTRATIVE   AGENT/ISSUING LENDER/LENDER:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
WELLS   FARGO BANK, NATIONAL ASSOCIATION,
    
	
 
    	
 
    	
as   Administrative Agent, Issuing Lender and a Lender
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:   
    	
/s/   Joseph T. Rottinghaus
    
	
 
    	
 
    	
Name:   
    	
Joseph   T. Rottinghaus
    
	
 
    	
 
    	
Title:
    	
Vice   President
    

 

[SIGNATURE PAGE TO AMENDMENT NO. 4 TO A&R CREDIT AGREEMENT — TRIANGLE USA PETROLEUM]

 

 

	
 
    	
EXISTING   LENDERS:
    
	
 
    	
 
    
	
 
    	
BANK   OF AMERICA, N.A.,
    
	
 
    	
as   a Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:   
    	
/s/   Joseph Scott
    
	
 
    	
Name:   
    	
Joseph   Scott
    
	
 
    	
Title:
    	
Director
    

 

[SIGNATURE PAGE TO AMENDMENT NO. 4 TO A&R CREDIT AGREEMENT — TRIANGLE USA PETROLEUM]

 

 

	
 
    	
THE   BANK OF NOVA SCOTIA,
    
	
 
    	
as   a Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:   
    	
/s/   Mark Sparrow
    
	
 
    	
Name:   
    	
Mark   Sparrow
    
	
 
    	
Title:
    	
Director
    

 

[SIGNATURE PAGE TO AMENDMENT NO. 4 TO A&R CREDIT AGREEMENT — TRIANGLE USA PETROLEUM]

 

 

	
 
    	
IBERIABANK,
    
	
 
    	
 
    
	
 
    	
as   a Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:   
    	
/s/   Cameron Jones
    
	
 
    	
Name:   
    	
Cameron   Jones
    
	
 
    	
Title:
    	
Vice   President
    

 

[SIGNATURE PAGE TO AMENDMENT NO. 4 TO A&R CREDIT AGREEMENT — TRIANGLE USA PETROLEUM]

 

 

	
 
    	
JPMORGAN   CHASE BANK, N.A.,
    
	
 
    	
as   a Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:   
    	
/s/   David Morris
    
	
 
    	
Name:   
    	
David   Morris
    
	
 
    	
Title:
    	
Authorized   Officer
    

 

[SIGNATURE PAGE TO AMENDMENT NO. 4 TO A&R CREDIT AGREEMENT — TRIANGLE USA PETROLEUM]

 

 

	
 
    	
KEYBANK   NATIONAL ASSOCIATION,
    
	
 
    	
as   a Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:   
    	
/s/   John Dravenstott
    
	
 
    	
Name:   
    	
John   Dravenstott
    
	
 
    	
Title:
    	
Vice   President
    

 

[SCHEDULE I TO AMENDMENT NO. 4 TO A&R CREDIT AGREEMENT — TRIANGLE USA PETROLEUM]

 

 

	
 
    	
NEW   LENDERS:
    
	
 
    	
 
    
	
 
    	
CAPITAL   ONE, N.A.,
    
	
 
    	
as   a New Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:   
    	
/s/   Mack Lambert
    
	
 
    	
Name:   
    	
Mack   Lambert
    
	
 
    	
Title:
    	
Vice   President
    

 

[SIGNATURE PAGE TO AMENDMENT NO. 4 TO A&R CREDIT AGREEMENT — TRIANGLE USA PETROLEUM]

 

 

	
 
    	
CITIBANK,   N.A.,
    
	
 
    	
as   a New Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:   
    	
/s/   Dustin S. Hansen
    
	
 
    	
Name:   
    	
Dustin   S. Hansen
    
	
 
    	
Title:
    	
Senior   Vice President
    

 

[SIGNATURE PAGE TO AMENDMENT NO. 4 TO A&R CREDIT AGREEMENT — TRIANGLE USA PETROLEUM]

 

 

	
 
    	
COMERICA   BANK,
    
	
 
    	
as   a New Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:   
    	
/s/   Mark Fuqua
    
	
 
    	
Name:   
    	
Mark   Fuqua
    
	
 
    	
Title:
    	
Executive   Vice President
    

 

[SIGNATURE PAGE TO AMENDMENT NO. 4 TO A&R CREDIT AGREEMENT — TRIANGLE USA PETROLEUM]

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00231-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00231-of-00352.parquet"}]]