Document:

Exhibit

Exhibit 10.2
SECOND AMENDMENT TO CREDIT AGREEMENT 

THIS SECOND AMENDMENT TO CREDIT AGREEMENT, dated as of October 4, 2019 (this “Amendment”), is entered into among Phillips Edison Grocery Center Operating Partnership I, L.P., a Delaware limited partnership (the “Borrower”), Phillips Edison & Company, Inc., a Maryland corporation (the “Parent Entity”), the Lenders party hereto and KeyBank National Association, as Administrative Agent (in such capacity, the “Administrative Agent”).  Capitalized terms used herein and not otherwise defined shall have the meanings ascribed thereto in the Credit Agreement (as defined below).

RECITALS

A.    The Borrower, the Parent Entity, the Lenders and the Administrative Agent entered into that certain Credit Agreement, dated as of October 4, 2017 (as amended by that certain First Amendment, dated as of November 16, 2018, and as otherwise amended, restated, extended, supplemented or otherwise modified in writing from time to time, the “Credit Agreement”).

B.    The Borrower has requested that the Credit Agreement be amended as set forth below.

C.    The parties hereto have agreed to amend the Credit Agreement as set forth herein.
D.    In consideration of the agreements hereinafter set forth, and for other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the parties hereto agree as follows.

AGREEMENT

1.    Amendment.  The definition of Applicable Rate set forth Section 1.01 of the Credit Agreement is amended as follows:

(a) The pricing grid set forth in clause (a) of the definition of Applicable Rate is amended and restated in its entirety as follows:
	
				
	

	Leverage Ratio
	Applicable Rate for Eurodollar Rate Loans/ LIBOR Daily Floating Rate Loans
	Applicable Rate for Base Rate Loans

	1
	≤ 40%
	1.20%
	0.20%

	2
	> 40% - ≤ 45%
	1.25%
	0.25%

	3
	> 45% - ≤ 50%
	1.35%
	0.35%

	4
	> 50% - ≤ 55%
	1.50%
	0.50%

	5
	> 55% - ≤ 60%
	1.70%
	0.70%

	6
	> 60%
	1.90%
	0.90%

        
(b)    The pricing grid set forth in clause (b) of the definition of Applicable Rate is amended and restated in its entirety as follows:

	
				
	Pricing Level
	Debt Rating of Parent Entity
	Applicable Rate for Eurodollar Rate Loans/LIBOR Daily Floating Rate Loans
	Applicable Rate for Base Rate Loans

	1
	> A-/ A-/A3
	0.85%
	0.00%

	2
	< A-/ A-/A3
> BBB+ / BBB+ Baa1
	0.90%
	0.00%

	3
	< BBB+ / BBB+ Baa1
> BBB / BBB / Baa2
	1.00%
	0.00%

	4
	< BBB / BBB / Baa2
> BBB- / BBB- / Baa3
	1.25%
	0.25%

	5
	< BBB- / BBB- / Baa3 or unrated
	1.65%
	0.65%

(c)    The following language is added as a new Section 11.20, immediately following the existing Section 11.19:

Section 11.20.  Acknowledgement Regarding Any Supported QFCs. To the extent that the Loan Documents provide support, through a guarantee or otherwise, for any Swap Contract or any other agreement or instrument that is a QFC (such support, “QFC Credit Support”, and each such QFC, a “Supported QFC”), the parties acknowledge and agree as follows with respect to the resolution power of the Federal Deposit Insurance Corporation under the Federal Deposit Insurance Act and Title II of the Dodd-Frank Wall Street Reform and Consumer Protection Act (together with the regulations promulgated thereunder, the “U.S. Special Resolution Regimes”) in respect of such Supported QFC and QFC Credit Support (with the provisions below applicable notwithstanding that the Loan Documents and any Supported QFC may in fact be stated to be governed by the laws of the State of New York and/or of the United States or any other state of the United States): 

(a)    In the event a Covered Entity that is party to a Supported QFC (each, a “Covered Party”) becomes subject to a proceeding under a U.S. Special Resolution Regime, the transfer of such Supported QFC and the benefit of such QFC Credit Support (and any interest and obligation in or under such Supported QFC and such QFC Credit Support, and any rights in property securing such Supported QFC or such QFC Credit Support) from such Covered Party will be effective to the same extent as the transfer would be effective under the U.S. Special Resolution Regime if the Supported QFC and such QFC Credit Support (and any such interest, obligation and rights in property) were governed by the laws of the United States or a state of the United States. In the event a Covered Party or a BHC Act Affiliate of a Covered Party becomes subject to a proceeding under a U.S. Special Resolution Regime, Default Rights under the Loan Documents that might otherwise apply to such 

Supported QFC or any QFC Credit Support that may be exercised against such Covered Party are permitted to be exercised to no greater extent than such Default Rights could be exercised under the U.S. Special Resolution Regime if the Supported QFC and the Loan Documents were governed by the laws of the United States or a state of the United States. Without limitation of the foregoing, it is understood and agreed that rights and remedies of the parties with respect to a Defaulting Lender shall in no event affect the rights of any Covered Party with respect to a Supported QFC or any QFC Credit Support.  

(b)    As used in this Section 11.20, the following terms have the following meanings:

“BHC Act Affiliate” of a party means an “affiliate” (as such term is defined under, and interpreted in accordance with, 12 U.S.C. 1841(k)) of such party.

“Covered Entity” means any of the following:  (i) a “covered entity” as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 252.82(b); (ii) a “covered bank” as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 47.3(b); or (iii) a “covered FSI” as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 382.2(b).

“Default Right” has the meaning assigned to that term in, and shall be interpreted in accordance with, 12 C.F.R. §§ 252.81, 47.2 or 382.1, as applicable.

“QFC” has the meaning assigned to the term “qualified financial contract” in, and shall be interpreted in accordance with, 12 U.S.C. 5390(c)(8)(D).
 
2.    Effectiveness; Conditions Precedent.  This Amendment shall be effective as of the date hereof when all of the conditions set forth in this Section 2 shall have been satisfied in form and substance satisfactory to the Administrative Agent.

(a)    Execution and Delivery of Amendment.    The Administrative Agent shall have received copies of this Amendment duly executed by the Borrower, the Parent Entity, as Guarantor, the Lenders and the Administrative Agent.

(b)    Resolutions, Etc.  Receipt by the Administrative Agent of such certificates of resolutions or other action, incumbency certificates and/or other certificates of Responsible Officers of each Loan Party as the Administrative Agent may require evidencing the identity, authority and capacity of each Responsible Officer thereof authorized to act as a Responsible Officer in connection with this Amendment and the other Loan Documents to which such Loan Party is a party.

(c)    Closing Certificate.  Receipt by the Administrative Agent of a duly completed closing certificate setting forth such matters as reasonably requested by the Administrative Agent.

(d)    Fees/Expenses. Payment by the Borrower of (i) a non-refundable amendment fee, for the account of each Lender, in the amount of 0.10 % of such Lender’s outstanding principal amount of Term Loans as of the effective date of this Amendment, (ii) all other fees agreed to by the Borrower in connection with this Amendment and (iii) all other fees and expenses owed by the Borrower in connection with this Amendment and the Credit Agreement to the extent invoiced prior to or on the date hereof. 
3.    Ratification of Credit Agreement.  Each of the Loan Parties acknowledges and consents to the terms set forth herein and agrees that this Amendment does not impair, reduce or limit any of its obligations under the Loan Documents as amended hereby.  

4.    Representations and Warranties.  Each of the Loan Parties represents and warrants to the Lenders as follows:

(a)    It has taken all necessary action to authorize the execution, delivery and performance of this Amendment;

(b)    This Amendment has been duly executed and delivered by such Person and constitutes such Person's legal, valid and binding obligations, enforceable in accordance with its terms, except as such enforceability may be limited by bankruptcy, insolvency or similar laws affecting creditor’s rights generally;

(c)    No material consent, approval, authorization or order of, or filing, registration or qualification with, any court or governmental authority or third party is required in connection with the execution, delivery or performance by such Person of this Amendment;

(d)    The execution and delivery of this Amendment does not (i) violate, contravene or conflict with any provision of such Person’s Organization Documents or (ii) violate, contravene or conflict with any Laws applicable to such Person except, in the case referred to in this clause (ii), to the extent that failure to do so could not reasonably be expected to have a Material Adverse Effect;

(e)    After giving effect to this Amendment, the representations and warranties of the Borrower and each other Loan Party set forth in Article VI of the Credit Agreement and the other Loan Documents are true and correct in all material respects (unless already qualified by materiality or Material Adverse Effect, in which case they shall be true and correct in all respects) as of the date hereof, except to the extent that such representations and warranties specifically refer to an earlier date, in which case they shall be true and correct in all material respects (unless already qualified by materiality or Material Adverse Effect, in which case they shall be true and correct in all respects) as of such earlier date, and except that for purposes of this Section 4, the representations and warranties contained in subsections (a) and (b) of Section 6.05 of the Credit Agreement shall be deemed to refer to the most recent statements furnished pursuant to clauses (a) and (b), respectively, of Section 7.01 of the Credit Agreement; and

(f)    After giving effect to this Amendment, no event has occurred and is continuing which constitutes a Default or an Event of Default.

5.    Counterparts/Telecopy.  This Amendment may be executed in any number of counterparts, each of which when so executed and delivered shall be an original, but all of which shall constitute one and the same instrument.  Delivery of executed counterparts of this Amendment by telecopy or .pdf shall be effective as an original.

6.    GOVERNING LAW.  THIS AMENDMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE GOVERNED BY AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.

7.    Reference to and Effect on Credit Agreement.  Except as specifically modified herein, the Credit Agreement and the other Loan Documents shall remain in full force and effect and are each hereby ratified and confirmed.  This Amendment shall be considered a Loan Document from and after the date hereof.  The Loan Parties intend for the amendments to the Loan Documents set forth herein to evidence an amendment to the terms of the existing indebtedness of the Loan Parties to the Administrative Agent and the Lenders and do not intend for such amendments to constitute a novation in any manner whatsoever.  

[remainder of page intentionally left blank]

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

BORROWER:                                        PHILLIPS EDISON GROCERY CENTER OPERATING PARTNERSHIP I, L.P.,
a Delaware limited partnership
By:     PE Grocery Center OP GP I LLC, 
a Delaware limited liability company,
its General Partner

By:           /s/ John Caulfield
Name:    John Caulfield
Title:  CFO, SVP & Treasurer

PARENT ENTITY:                               PHILLIPS EDISON & COMPANY, INC.,
                                                                 a Maryland corporation

By:           /s/ John Caulfield
Name:    John Caulfield
Title:  CFO, SVP & Treasurer

ADMINISTRATIVE
AGENT:            KEYBANK NATIONAL ASSOCIATION,
as Administrative Agent

By: /s/ Michael P. Szuba            
Name: Michael P. Szuba
Title: Senior Vice President

LENDERS:            KEYBANK NATIONAL ASSOCIATION,
as a Lender

By: /s/ Michael P. Szuba            
Name: Michael P. Szuba
Title: Senior Vice President 

PNC BANK, NATIONAL ASSOCIATION

By: /s/ Brian B. Fagan                
Name: Brian B. Fagan
Title: Senior Vice President

U.S. BANK, NATIONAL ASSOCIATION

By: /s/ Curt M. Steiner                
Name: Curt M. Steiner
Title: Senior Vice President

CAPITAL ONE, NATIONAL ASSOCIATION

By: /s/ Jessica Phillips                

Name: Jessica Phillips
Title: Authorized Signatory

FIFTH THIRD BANK

By: /s/ Michael P. Perillo            
Name: Michael P. Perillo
Title: Director

REGIONS BANK

By: /s/ William Chalmers            
Name: William Chalmers
Title: Assistant Vice President

BRANCH BANKING AND TRUST COMPANY

By: /s/ Ken Blackwell                
Name: Ken Blackwell
Title: Senior Vice President

FIRST MERCHANTS BANK

By: /s/ Tanner Trosell                
Name: Tanner Trosell
Title: Vice President

BMO HARRIS BANK, N.A.

By: /s/ Jonas L. Robinson            
Name: Jonas L. Robinson
Title: Vice PresidentExhibit

Exhibit 10.1

November 4, 2019
Extraction Oil & Gas, Inc.
370 17th Street, Suite 5300
Denver, CO 80202
Attn: Ms. Marianella Foschi

and

The Lenders (as defined below)    

Re:    Borrowing Base Redetermination - Fall 2019
Ladies and Gentlemen:
We refer to the Amended and Restated Credit Agreement dated as of August 16, 2017 (as amended, supplemented, or otherwise modified from time to time, the "Credit Agreement") among Extraction Oil & Gas, Inc., a Delaware corporation (the "Borrower"), the lenders party thereto (the "Lenders"), and Wells Fargo Bank, National Association, as administrative agent (in such capacity, the "Administrative Agent") and as Issuing Lender.  All terms defined in the Credit Agreement shall have the same meanings when used herein unless otherwise defined herein.

Borrowing Base and Maximum Cap Reduction

In connection with the Internal Reserve Report dated effective July 1, 2019 and in accordance with Section 2.2 of the Credit Agreement, the Administrative Agent (on behalf of itself and the Required Tier I Lenders) hereby notifies you that the Borrowing Base shall be decreased from $1,100,000,000 to $950,000,000 effective as of the date hereof. Such Borrowing Base redetermination shall constitute the Borrowing Base redetermination to occur on or about November 1, 2019 in accordance with Section 2.2(b)(ii) of the Credit Agreement.  The new $950,000,000 Borrowing Base described herein shall remain in effect until the Borrowing Base is redetermined or reduced in accordance with Section 2.2 of the Credit Agreement.  Nothing in this letter shall prejudice the Administrative Agent’s and the Lenders’ rights to (i) redetermine the Borrowing Base in the future in accordance with Section 2.2 of the Credit Agreement, including without limitation pursuant to interim redeterminations pursuant to Section 2.2(c) of the Credit Agreement, or (ii) require future reductions of the Borrowing Base pursuant to Section 2.2(e) of the Credit Agreement.    

In addition to the foregoing, the Administrative Agent hereby notifies you that the Maximum Cap shall be deemed to be decreased from $1,000,000,000 to $950,000,000 effective upon receipt by the Administrative Agent of counterparts of this Letter Agreement duly executed by the Borrower and the Administrative Agent. Upon receipt of countersigned copies of this Letter Agreement, each individual Lender’s Pro Rata Share of the Maximum Cap shall be deemed to be reduced.

Each Lender's Pro Rata Share of the resulting Borrowing Base, after giving effect to the decrease in the Borrowing Base set forth herein, is set forth next to its name in Schedule I attached hereto.  Each Lender's Pro Rata Share of the resulting Maximum Cap, after giving effect the decrease in the Maximum Cap as set forth herein, is set forth next to its name in Schedule I attached hereto.

The Borrower hereby acknowledges and agrees that (i) the redetermination set forth herein is the Borrowing Base redetermination to occur on or about November 1, 2019 that is provided for in Section 2.2(b)(ii) of the Credit Agreement and (ii) the Maximum Cap shall be deemed to be reduced as set forth herein.

Period for Mortgage and Title

On or before December 4, 2019 (or such later date as may be acceptable to the Administrative Agent in its sole discretion), the Borrower shall from time to time upon the reasonable request of the Administrative Agent, take such actions and execute and deliver such documents and instruments as the Administrative Agent shall require to ensure that the Administrative Agent shall, at all times, have received (a) satisfactory title evidence, which title evidence shall be in form and substance acceptable to the Administrative Agent in its sole reasonable discretion and shall include information regarding the before payout and after payout ownership interests held by the Borrower and the Borrower's Restricted Subsidiaries, for all wells located on the Oil and Gas Properties, covering at least (i) 80% of the present value of the Proven Reserves of the Borrower and its Restricted Subsidiaries or (ii) 95% of the present value of PDP Reserves of the Borrower and its Restricted Subsidiaries, in each case, as reasonably determined by the Administrative Agent, and (b) Mortgages and such other Security Documents to the extent necessary to cause the Administrative Agent to have an Acceptable Security Interest in at least 90% (by value) of the Loan Parties’ Proven Reserves and the Oil and Gas Properties relating thereto.

Miscellaneous

The Credit Agreement and the other Loan Documents remain in full force and effect and are hereby ratified and confirmed, and nothing herein shall act as a waiver of any of the Administrative Agent's or Lenders' rights under the Loan Documents.  This Letter Agreement is a Loan Document for the purposes of the provisions of the other Loan Documents.  

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).

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

THIS WRITTEN AGREEMENT AND THE LOAN 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. 

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 [Signature Page Follows]

Signature Page to Borrowing Base Redetermination - Extraction (Fall 2019)

Houston/2011768

If the foregoing terms of this Letter Agreement meet with your approval, please evidence your agreement with such terms by signing this Letter Agreement in the space indicated below.

Very truly yours,

WELLS FARGO BANK, NATIONAL ASSOCIATION, as Administrative Agent 

By: /s/ Zachary Kramer    
Name: Zachary Kramer
		
	Title: 
	Vice President

Agreed to and Accepted by:

BORROWER:

EXTRACTION OIL & GAS, INC.

By: /s/ Marianella Foschi    
		
	Name: 
	Marianella Foschi

		
	Title: 
	Vice President of Finance

 

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SCHEDULE I
MAXIMUM CAP AND BORROWING BASE
	
			
	Lender
	Pro Rata Share of Maximum Cap*
	Pro Rata Share of Borrowing Base**

	Wells Fargo Bank, National Association
	$90,250,000.00
	$90,250,000.00

	Barclays Bank PLC
	$71,725,000.00
	$71,725,000.00

	Credit Suisse AG, Cayman Islands Branch
	$71,725,000.00
	$71,725,000.00

	SunTrust Bank
	$71,725,000.00
	$71,725,000.00

	ABN AMRO Capital USA LLC
	$71,725,000.00
	$71,725,000.00

	KeyBank National Association
	$71,725,000.00
	$71,725,000.00

	Citibank, N.A.
	$62,700,000.00
	$62,700,000.00

	Goldman Sachs Bank USA
	$42,750,000.00
	$42,750,000.00

	Royal Bank of Canada
	$62,700,000.00
	$62,700,000.00

	Bank of America, N.A.
	$47,500,000.00
	$47,500,000.00

	Mercuria Eastern US Holdings LLC
	$5,700,000.00
	$5,700,000.00

	The Huntington National Bank
	$47,500,000.00
	$47,500,000.00

	PNC Bank, National Association 
	$71,725,000.00
	$71,725,000.00

	BMO Harris Bank N.A.
	$71,725,000.00
	$71,725,000.00

	Natixis, New York Branch
	$62,700,000.00
	$62,700,000.00

	Iberiabank
	$26,125,000.00
	$26,125,000.00

	Total:
	$950,000,000.00
	$950,000,000.00

* Maximum Cap in effect as of November 4, 2019.  Maximum Cap is subject to redetermination pursuant to the terms of the Credit Agreement.

** Borrowing Base in effect as of November 4, 2019.  Borrowing Base is subject to redetermination pursuant to the terms of the Credit Agreement.

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