Document:

Exhibit 10.9

 

ZAZA ENERGY CORPORATION

 

REIMBURSEMENT AGREEMENT

 

THIS REIMBURSEMENT AGREEMENT (this “Agreement”) is made and entered into as of September 11, 2012, by BLACKSTONE OIL & GAS, LLC (“Blackstone”) and ZaZa Energy Corporation, a Delaware corporation (the “Company”), in consideration for Blackstone’s aggregate grant (“Grant”) of 1,727,083 shares of restricted Common Stock, par value $0.01 per share, of the Company (“Restricted Stock”), which Grant consisted of the following individual grants of Restricted Stock to the recipients and in the amounts set forth on Exhibit A hereto.

 

1.                                       The Company agrees to reimburse Blackstone for the value of the tax benefit(s) received by the Company for the Restricted Stock within 30 days of such time(s) when the Company is able to make use of the expense(s) relating thereto to reduce its federal income tax withholding or payments (the “Reimbursement”), provided, however, that if the Company has not yet been able to make use of any or all of such expenses to reduce its federal income tax withholding or payments, at such time as Blackstone, Omega Energy LLC and Lara Energy, Inc. no longer control a majority of the common stock of the Company, then the Company shall pay to Blackstone an amount equal to 35% of the value of any Restricted Stock (determined at the time of vesting) with respect to which the Company had not previously become obligated to pay a Reimbursement pursuant to this Section 1.  For example, if the value of the Restricted Stock at the time of vesting is $10 million, and the Company has $5 million of taxable income at 35% in 2012, $2.5 million of taxable income at 35% in 2013 and $2.5 million of taxable income at 35% in 2014, then the Company would make payments to Blackstone of $1.75 million in 2012, $875,000 in 2013 and $875,000 in 2014.

 

2.                                       The tax characterization of such Reimbursement and its reporting shall be determined by a third party tax advisor to the Company.  The third party tax advisor shall be reasonably acceptable to Blackstone.

 

3.                                       Blackstone shall be solely responsible and liable for any tax consequences (including, but not limited to, any interest or penalties) as a result of the Reimbursement hereunder.  The Company (a) makes no commitment or guarantee that any federal, state or local tax treatment will apply or be available to Blackstone with respect to the Reimbursement, and (b) assumes no liability or obligation whatsoever for the tax consequences to Blackstone of the Reimbursement.

 

4.                                       This Agreement contains the entire agreement between the parties hereto with respect to the subject matter hereof, and supersedes all prior agreements or understandings, whether written or oral, between the parties relating to such Reimbursement.  This Agreement may not be modified or amended, except by a writing signed by Blackstone and the Company.

 

5.                                       All questions concerning the construction, validity and interpretation of this Agreement shall be governed by, and construed in accordance with, the laws of the State of Delaware, without regard to the choice of law principles thereof.

 

 

IN WITNESS WHEREOF, the undersigned parties have executed this Agreement as of the date set forth above.

 

 

	
 
    	
ZaZa   Energy Corporation
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    
	
 
    	
Date:
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Blackstone   Oil & Gas, LLC
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:   Todd A. Brooks
    
	
 
    	
Title:   President
    

 

2

 

ZAZA ENERGY CORPORATION

 

REIMBURSEMENT AGREEMENT

 

THIS REIMBURSEMENT AGREEMENT (this “Agreement”) is made and entered into as of September 11, 2012, by OMEGA ENERGY, LLC (“Omega”) and ZaZa Energy Corporation, a Delaware corporation (the “Company”), in consideration for Omega’s aggregate grant (“Grant”) of 1,727,084 shares of restricted Common Stock, par value $0.01 per share, of the Company (“Restricted Stock”), which Grant consisted of the following individual grants of Restricted Stock to the recipients and in the amounts set forth on Exhibit A hereto.

 

1.                                       The Company agrees to reimburse Omega for the value of the tax benefit(s) received by the Company for the Restricted Stock within 30 days of such time(s) when the Company is able to make use of the expense(s) relating thereto to reduce its federal income tax withholding or payments (the “Reimbursement”), provided, however, that if the Company has not yet been able to make use of any or all of such expenses to reduce its federal income tax withholding or payments, at such time as Omega, Blackstone Oil & Gas, LLC and Lara Energy, Inc. no longer control a majority of the common stock of the Company, then the Company shall pay to Omega an amount equal to 35% of the value of any Restricted Stock (determined at the time of vesting) with respect to which the Company had not previously become obligated to pay a Reimbursement pursuant to this Section 1.  For example, if the value of the Restricted Stock at the time of vesting is $10 million, and the Company has $5 million of taxable income at 35% in 2012, $2.5 million of taxable income at 35% in 2013 and $2.5 million of taxable income at 35% in 2014, then the Company would make payments to Omega of $1.75 million in 2012, $875,000 in 2013 and $875,000 in 2014.

 

2.                                       The tax characterization of such Reimbursement and its reporting shall be determined by a third party tax advisor to the Company.  The third party tax advisor shall be reasonably acceptable to Omega.

 

3.                                       Omega shall be solely responsible and liable for any tax consequences (including, but not limited to, any interest or penalties) as a result of the Reimbursement hereunder.  The Company (a) makes no commitment or guarantee that any federal, state or local tax treatment will apply or be available to Omega with respect to the Reimbursement, and (b) assumes no liability or obligation whatsoever for the tax consequences to Omega of the Reimbursement.

 

4.                                       This Agreement contains the entire agreement between the parties hereto with respect to the subject matter hereof, and supersedes all prior agreements or understandings, whether written or oral, between the parties relating to such Reimbursement.  This Agreement may not be modified or amended, except by a writing signed by Omega and the Company.

 

5.                                       All questions concerning the construction, validity and interpretation of this Agreement shall be governed by, and construed in accordance with, the laws of the State of Delaware, without regard to the choice of law principles thereof.

 

 

IN WITNESS WHEREOF, the undersigned parties have executed this Agreement as of the date set forth above.

 

 

	
 
    	
ZaZa   Energy Corporation
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    
	
 
    	
Date:
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Omega   Energy, LLC
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:  Gaston L. Kearby
    
	
 
    	
Title:  President
    

 

2

 

ZAZA ENERGY CORPORATION

 

REIMBURSEMENT AGREEMENT

 

THIS REIMBURSEMENT AGREEMENT (this “Agreement”) is made and entered into as of September 11, 2012, by LARA ENERGY, INC. (“Lara”) and ZaZa Energy Corporation, a Delaware corporation (the “Company”), in consideration for Lara’s aggregate grant (“Grant”) of 1,727,083 shares of restricted Common Stock, par value $0.01 per share, of the Company (“Restricted Stock”), which Grant consisted of the following individual grants of Restricted Stock to the recipients and in the amounts set forth on Exhibit A hereto.

 

1.                                       The Company agrees to reimburse Lara for the value of the tax benefit(s) received by the Company for the Restricted Stock within 30 days of such time(s) when the Company is able to make use of the expense(s) relating thereto to reduce its federal income tax withholding or payments (the “Reimbursement”), provided, however, that if the Company has not yet been able to make use of any or all of such expenses to reduce its federal income tax withholding or payments, at such time as Lara, Omega Energy LLC and Blackstone Oil & Gas, LLC no longer control a majority of the common stock of the Company, then the Company shall pay to Lara an amount equal to 35% of the value of any Restricted Stock (determined at the time of vesting) with respect to which the Company had not previously become obligated to pay a Reimbursement pursuant to this Section 1.  For example, if the value of the Restricted Stock at the time of vesting is $10 million, and the Company has $5 million of taxable income at 35% in 2012, $2.5 million of taxable income at 35% in 2013 and $2.5 million of taxable income at 35% in 2014, then the Company would make payments to Lara of $1.75 million in 2012, $875,000 in 2013 and $875,000 in 2014.

 

2.                                       The tax characterization of such Reimbursement and its reporting shall be determined by a third party tax advisor to the Company.  The third party tax advisor shall be reasonably acceptable to Lara.

 

3.                                       Lara shall be solely responsible and liable for any tax consequences (including, but not limited to, any interest or penalties) as a result of the Reimbursement hereunder.  The Company (a) makes no commitment or guarantee that any federal, state or local tax treatment will apply or be available to Lara with respect to the Reimbursement, and (b) assumes no liability or obligation whatsoever for the tax consequences to Lara of the Reimbursement.

 

4.                                       This Agreement contains the entire agreement between the parties hereto with respect to the subject matter hereof, and supersedes all prior agreements or understandings, whether written or oral, between the parties relating to such Reimbursement.  This Agreement may not be modified or amended, except by a writing signed by Lara and the Company.

 

5.                                       All questions concerning the construction, validity and interpretation of this Agreement shall be governed by, and construed in accordance with, the laws of the State of Delaware, without regard to the choice of law principles thereof.

 

 

IN WITNESS WHEREOF, the undersigned parties have executed this Agreement as of the date set forth above.

 

 

	
 
    	
ZaZa   Energy Corporation
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    
	
 
    	
Date:
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Lara   Energy, Inc.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:  John E. Hearn, Jr.
    
	
 
    	
Title:  President
    

 

2Exhibit 10.10

 

September 11, 2012

 

ZaZa Energy Corporation

1301 McKinney Street, Suite 2850

Houston, Texas 77010

 

Re: Subordinated Promissory Notes

 

Dear Sirs;

 

Reference is hereby made to those Subordinated Promissory Notes issued by ZaZa Energy Corporation (the “Company”) on February 21, 2012 and referred to on Schedule I to which the undersigned are payees thereunder (the “Notes”).  Said interest is due and payable at the end of each month from the issue date.  The Company has been accruing payments of interest on the Notes since the issue date.  A partial interest payment has been made on the date hereof.  Each of the undersigned acknowledges and agrees that any remaining accrued interest on the Notes as of the date hereof, as well as any interest accruing after the date hereof, shall not be required to be paid until the earlier of (i) the occurrence of an event providing the Company with liquidity sufficient to make such payments or (ii) February 21, 2013.  It is the understanding of the undersigned that interest will accrue on accrued and unpaid interest from the date such interest payment was originally due.  Each of the Notes remain in full force and effect in accordance with the terms thereof, except as may be expressly amended or waived hereby.  The foregoing waiver and amendment to the Notes by the undersigned is expressly conditioned upon the approval of this letter by the Board of Directors of the Company.

 

[The remainder of this page is left intentionally blank.]

 

 

The undersigned, for the benefit of the Company, hereby confirm the following is acceptable as of the date first written above.

 

	
 
    	
Omega   Energy LLC
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Gaston L. Kearby
    
	
 
    	
 
    	
Gaston   L. Kearby
    
	
 
    	
 
    	
Manager
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
/s/   Gaston L. Kearby
    
	
 
    	
Gaston   L. Kearby
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Lara   Energy, Inc.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   John E. Hearn, Jr.
    
	
 
    	
 
    	
John   E. Hearn, Jr.
    
	
 
    	
 
    	
President
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
/s/   John E. Hearn, Jr.
    
	
 
    	
John   E. Hearn, Jr.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Blackstone   Oil & Gas, LLC
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Todd Alan Brooks
    
	
 
    	
 
    	
Todd   Alan Brooks
    
	
 
    	
 
    	
President
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
/s/   Todd Alan Brooks
    
	
 
    	
Todd   Alan Brooks
    

 

2

 

Schedule I-Subordinated Notes

 

Subordinated Promissory Note dated as of February 21, 2012, issued to Blackstone Oil & Gas, LLC, in the aggregate principal amount of $12,750,000

 

Subordinated Promissory Note dated as of February 21, 2012, issued to Lara Energy, Inc., in the aggregate principal amount of $12,750,000

 

Subordinated Promissory Note dated as of February 21, 2012, issued to Omega Energy Corp., in the aggregate principal amount of $12,750,000

 

Subordinated Promissory Note dated as of February 21, 2012, issued to Todd Alan Brooks, in the aggregate principal amount of $3,026,666

 

Subordinated Promissory Note dated as of February 21, 2012, issued to John E. Hearn, Jr., in the aggregate principal amount of $3,026,666

 

Subordinated Promissory Note dated as of February 21, 2012, issued to Gaston L. Kearby, in the aggregate principal amount of $3,026,666

 

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