Document:

jpep_Ex10_1

		
			Exhibit 10.1
		

		
			Executed Version
		

		
			 
		

		
			AMENDMENT NO. 4 TO CREDIT AGREEMENT
		

		
			This Amendment No. 4 to Credit Agreement (this “Agreement”) dated as of November 6, 2015 (the “Effective Date”) is among JP Energy Partners LP, a Delaware limited partnership (the “Borrower”), JP Energy Refined Products, LLC, a Delaware limited liability company, JP Energy ATT, LLC, a Delaware limited liability company, JP Energy Caddo, LLC, a Delaware limited liability company, Pinnacle Propane, LLC, a Texas limited liability company, Pinnacle Propane Express, LLC, a Delaware limited liability company, Alliant Gas, LLC, a Texas limited liability company, JP Energy Crude Oil Services, LLC, a Delaware limited liability company. JP Falco, LLC, a Delaware limited liability company, JP Energy Storage, LLC, a Oklahoma limited liability company, JP Energy Permian, LLC, a Delaware limited liability company, JP Energy Products Supply, LLC, a Delaware limited liability company, and JP Liquids, LLC, a Delaware limited liability company, (each a “Guarantor”), the undersigned Lenders (as defined below) and Bank of America, N.A., as Administrative Agent for the Lenders (in such capacity, the “Administrative Agent”), Swing Line Lender and L/C Issuer.
		

		
			INTRODUCTION
		

		
			A.The Borrower, the financial institutions party thereto as Lenders (the “Lenders”), and the Administrative Agent have entered into the Credit Agreement dated as of February 12, 2014 (as amended, restated, or modified from time to time, the “Credit Agreement”).
		

		
			B.The Borrower has notified the Administrative Agent that the Borrower is party to certain financial Swap Contracts with a Lender or one of its Affiliates that do not fully comply with the current requirements of Section 7.17 of the Credit Agreement, which would constitute an Event of Default under Section 8.01(b) of the Credit Agreement with respect to Section 7.17 (the “Swap Contract Default” and together with any Default or Event of Default that would arise solely (a) from any failure of the Borrower to give notice of the Swap Contract Default pursuant to Section 6.03(a) of the Credit Agreement or (b) from any breach of the representation and warranty contained in Section 5.07 of the Credit Agreement that would arise solely from the existence of the Swap Contract Default, the “Subject Default”).
		

		
			C.The Borrower has requested that the Administrative Agent, the Lenders, the L/C Issuer and the Swing Line Lender agree to make certain amendments to the Credit Agreement and grant certain waivers with respect to the Subject Default, as set forth herein.
		

		
			THEREFORE, in fulfillment of the foregoing, the Borrower, the Administrative Agent, the L/C Issuer, the Swing Line Lender and each of the undersigned 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.Amendments to Credit Agreement.  
		

		
			(a)The definition of “Change in Control” in Section 1.01 of the Credit Agreement is hereby amended by deleting the parenthetical in clause (b) in its entirety.
		

		
			 
		

		
			

		 

 

 
		

		
			(b)The definition of “Eurodollar Rate” in Section 1.01 of the Credit Agreement is hereby amended by (i) replacing “Reuters” with “Bloomberg”, (ii) adding “(i)” immediately after “provided that” in the proviso therein, and (iii) adding the following phrase immediately after “reasonably determined by the Administrative Agent” in such proviso: 
		

		
			“and (ii) if the Eurodollar Rate shall be less than zero, such rate shall be deemed zero for purposes of this Agreement.”
		

		
			(c)The definition of “Swap Contract” in Section 1.01 of the Credit Agreement is hereby amended by adding the following phrase immediately after “under any Master Agreement” in clause (b) therein:
		

		
			“; provided that no (i) phantom stock or similar plan providing for payments only on account of services provided by current or former directors, officers, employees or consultants of the Borrower or its Subsidiaries or (ii) near term spot market purchase or sale of a commodity in the ordinary course of business based on a price determined by a rate quoted on an organized exchange or a widely recognized posted price, in either case, for actual physical delivery, and entered into in connection with the management of the Open Position of the Borrower and its Restricted Subsidiaries in accordance with Section 7.17, shall be a Swap Contract”
		

		
			(d)The Credit Agreement is hereby amended by adding the following new Section 5.23:  
		

		
			5.23.Anti-Corruption Laws.  The Borrower and its Subsidiaries have conducted their business in compliance with the United States Foreign Corrupt Practices Act of 1977, the UK Bribery Act of 2010, and other similar anti-corruption legislation in other jurisdictions and have instituted and maintained policies and procedures designed to promote and achieve compliance with such laws.
		

		
			(e)Section 6.02(g) of the Credit Agreement is hereby amended by adding “(i)” immediately after “in appropriate detail” and the following phrase immediately after “each such fiscal quarter”:  
		

		
			“and (ii) the Borrower’s computations of its and its Restricted Subsidiaries’ aggregate Open Position calculated in accordance with Section 7.17 as of the close of business on the last Business Day of each such fiscal quarter”
		

		
			(f)Section 7.02(a) of the Credit Agreement is hereby amended by replacing “permitted” with “not prohibited” in clause (iii) therein. 
		

		
			(g)Section 7.17 of the Credit Agreement is hereby amended and restated in its entirety as follows:
		

		
			7.17.Prohibited Commodity Transactions.  Directly or indirectly purchase or sell any commodities futures contracts or otherwise be a party 
		

		
			
		

		
			

		 

		

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to or in any manner liable on any forward commodity contract in connection with the Borrower’s Crude Oil Logistics Business unless (a) such transactions are entered into in the ordinary course of the business of the Borrower and its Restricted Subsidiaries and not for speculative purposes and consistent with the then current risk management policy of the Borrower with respect to its Crude Oil Logistics Business which has been delivered to the Administrative Agent, (b) such transactions are (i) economically appropriate and consistent with the Borrower’s and such Restricted Subsidiary’s business; (ii) used to offset price risks incidental to the Borrower’s or such Restricted Subsidiary’s cash or spot transactions in Petroleum Product; and (iii) established and liquidated in accordance with sound commercial practices, (c) the aggregate Open Position of the Borrower and its Restricted Subsidiaries (calculated by adding the Open Positions of the Borrower and its Restricted Subsidiaries for each type of Petroleum Product and each market and any separate Open Positions determined pursuant to the last sentence of paragraph (y) of the definition of “Open Position”) does not exceed 50,000 barrels of Petroleum Product at any one time, and (d) such transactions are permitted under Section 7.02(a).
		

		
			(h)The Credit Agreement is hereby amended by adding the following new Section 7.19:  
		

		
			7.19.Anti-Corruption Laws.  Directly or indirectly, use the proceeds of any Credit Extension for any purpose which would breach the United States Foreign Corrupt Practices Act of 1977, the UK Bribery Act of 2010, and other similar anti-corruption legislation in other jurisdictions.  
		

		
			Section 3.Waiver. The Lenders hereby waive the Subject Default, which waiver shall, upon effectiveness of this Agreement, be effective as of the date of occurrence of the Subject Default.  This waiver is limited to the extent described herein and shall not be construed to be a waiver of any other terms, provisions, covenants, warranties or agreements contained in the Credit Agreement or any of the Loan Documents or a waiver of any Default or Event of Default that may have occurred (other than the Subject Default) or may hereafter occur.  Without limiting the foregoing, failure to observe or perform any agreement contained in Section 7.17 of the Credit Agreement, including entry after the date of this Agreement into any Swap Contracts that do not comply with the requirements of the Credit Agreement as amended hereby, shall constitute a Default and Event of Default. The Administrative Agent and the Lenders reserve the right to exercise any rights and remedies available to them in connection with any present or future defaults under the Credit Agreement or any other provision of any Loan Document other than the Subject Default.
		

		
			Section 4.Reaffirmation of Liens; Reaffirmation of Guaranty.  
		

		
			(a)Each of the Borrower and each Guarantor (i) is party to certain Collateral Documents securing and supporting the Borrower’s obligations under the Loan Documents, (ii) represents and warrants that it has no defenses to the enforcement of the Collateral Documents 
		

		
			
		

		 

		

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			and that according to their terms the Collateral Documents will continue in full force and effect to secure the Borrower’s obligations under the Loan 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 Collateral Documents are valid and subsisting and create a perfected Lien in the Collateral to the extent, and with the priority, contemplated by the Collateral Documents to secure the Borrower’s obligations under the Loan Documents, as the same may be amended, supplemented, or otherwise modified.
		

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

		
			Section 5.Representations and Warranties.  The Borrower 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 Loan Documents are true and correct in all material respects (except for such representations and warranties that have a materiality or Material Adverse Effect qualification, which shall be true and correct in all respects) as of the date of this Agreement 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 (except for such representations and warranties that have a materiality or Material Adverse Effect qualification, which shall be true and correct in all respects) as of such earlier date; 
		

		
			(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 the Guarantors and have been duly authorized by appropriate proceedings and (ii) this Agreement constitutes a legal, valid, and binding obligation of the Borrower and each Guarantor, enforceable against the Borrower and each such Guarantor 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 6.FATCA.  For purposes of determining withholding Taxes imposed under FATCA, from and after the effective date of the Amendment, the Borrower and the Administrative Agent shall treat (and the Lenders hereby authorize the Administrative Agent to treat) the Loans as not qualifying as a “grandfathered obligation” within the meaning of Treasury Regulation Section 1.1471-2(b)(2)(i).  
		

		
			
		

		 

		

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			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 this Agreement, duly and validly executed by the Required Lenders and the Borrower and delivered to the Administrative Agent, in form and substance satisfactory to the Administrative Agent and the Required Lenders, in sufficient copies for each Lender; 
		

		
			(b)Representations and Warranties.  The representations and warranties in this Agreement and the other Loan Documents being true and correct in all material respects (except for such representations and warranties that have a materiality or Material Adverse Effect qualification, which shall be true and correct in all respects) as of the date of this Agreement 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 (except for such representations and warranties that have a materiality or Material Adverse Effect qualification, which shall be true and correct in all respects) as of such earlier date, and except that the representations and warranties contained in Sections 5.05(a) and (b) of the Credit Agreement shall be deemed to refer to the most recent statements furnished pursuant to clauses (a) and (b), respectively, of Sections 6.01 of the Credit Agreement.
		

		
			(c)No Default or Event of Default. After giving effect to this Agreement, there being no Default or Event of Default which has occurred and is continuing.
		

		
			(d)Expenses.  The Borrower having paid all costs, expenses, and fees which have been invoiced and are payable pursuant to Section 10.04 of the Credit Agreement or any other written agreement.
		

		
			Section 8.Effect on Loan Documents.  Except as amended and waived herein, the Credit Agreement and the Loan 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 Loan Documents, as amended.  This Agreement is a Loan Document for the purposes of the provisions of the other Loan Documents.  Without limiting the foregoing, any breach of representations, warranties, and covenants under this Agreement may be a Default or Event of Default under other Loan 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.
		

		
			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 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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			EXECUTED as of the date first set forth above.
		

		
			 
		

		
			 
		

			
					
						 

					
					
						 

					
					
						BORROWER:

				
	
					
						 

					
					
						 

					
					
						JP ENERGY PARTNERS LP

				
	
					
						 

					
					
						 

					
					
						By:  JP Energy GP II LLC, its general partner

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						By: 

					
					
						/s/ Patrick Welch

				
	
					
						 

					
					
						 

					
					
						Name: 

					
					
						 Patrick Welch

				
	
					
						 

					
					
						 

					
					
						Title: 

					
					
						Chief Financial Officer

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						GUARANTORS:  

				
	
					
						 

					
					
						 

					
					
						JP ENERGY REFINED PRODUCTS, LLC

				
	
					
						 

					
					
						 

					
					
						JP ENERGY ATT, LLC

				
	
					
						 

					
					
						 

					
					
						JP ENERGY CADDO, LLC

				
	
					
						 

					
					
						 

					
					
						JP ENERGY CRUDE OIL SERVICES, LLC

				
	
					
						 

					
					
						 

					
					
						JP FALCO, LLC

				
	
					
						 

					
					
						 

					
					
						JP ENERGY STORAGE, LLC

				
	
					
						 

					
					
						 

					
					
						JP ENERGY PERMIAN, LLC

				
	
					
						 

					
					
						 

					
					
						JP ENERGY PRODUCTS SUPPLY, LLC

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						By:

					
					
						/s/ Patrick Welch

				
	
					
						 

					
					
						 

					
					
						Name: 

					
					
						 Patrick Welch

				
	
					
						 

					
					
						 

					
					
						Title: 

					
					
						Chief Financial Officer

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						PINNACLE PROPANE, LLC

				
	
					
						 

					
					
						 

					
					
						PINNACLE PROPANE EXPRESS, LLC

				
	
					
						 

					
					
						 

					
					
						ALLIANT GAS, LLC

				
	
					
						 

					
					
						 

					
					
						JP LIQUIDS, LLC

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						By:

					
					
						/s/ Patrick Welch

				
	
					
						 

					
					
						 

					
					
						Name: 

					
					
						 Patrick Welch

				
	
					
						 

					
					
						 

					
					
						Title:

					
					
						Chief Financial Officer

				

		
			 
		

		
			 
		

		
			
		

		
			

		 

		

			SIGNATURE PAGE TO AMENDMENT NO. 4 TO CREDIT AGREEMENT

		

		

			JP ENERGY PARTNERS LP

		

 

 
		

			
					
						 

					
					
						 

					
					
						ADMINISTRATIVE AGENT:

				
	
					
						 

					
					
						 

					
					
						BANK OF AMERICA, N.A.,

				
	
					
						 

					
					
						 

					
					
						as Administrative Agent 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						By:

					
					
						/s/ Don B. Pinzon

				
	
					
						 

					
					
						 

					
					
						Name:

					
					
						Don B. Pinzon

				
	
					
						 

					
					
						 

					
					
						Title:

					
					
						Vice President

				

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			
		

		
			

		 

		

			SIGNATURE PAGE TO AMENDMENT NO. 4 TO CREDIT AGREEMENT

		

		

			JP ENERGY PARTNERS LP

		

 

 
		

		
			 
		

		
			 
		

		
			 
		

			
					
						 

					
					
						 

					
					
						LENDERS:

				
	
					
						 

					
					
						 

					
					
						BANK OF AMERICA, N.A., as a Lender, L/C 
Issuer, and Swing Line Lender

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						By:

					
					
						/s/ Julie Castano

				
	
					
						 

					
					
						 

					
					
						Name:

					
					
						Julie Castano

				
	
					
						 

					
					
						 

					
					
						Title:

					
					
						Senior Vice President

				

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			
		

		
			

		 

		

			SIGNATURE PAGE TO AMENDMENT NO. 4 TO CREDIT AGREEMENT

		

		

			JP ENERGY PARTNERS LP

		

 

 
		

		
			 
		

			
					
						 

					
					
						 

					
					
						BANK OF MONTREAL, as a Lender

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						By:

					
					
						/s/ Kevin Utsey

				
	
					
						 

					
					
						 

					
					
						Name:

					
					
						Kevin Utsey

				
	
					
						 

					
					
						 

					
					
						Title:

					
					
						Director

				

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			
		

		
			

		 

		

			SIGNATURE PAGE TO AMENDMENT NO. 4 TO CREDIT AGREEMENT

		

		

			JP ENERGY PARTNERS LP

		

 

 
		

		
			 
		

			
					
						 

					
					
						 

					
					
						DEUTSCHE BANK AG NEW YORK 
BRANCH, as a Lender

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						By:

					
					
						 

				
	
					
						 

					
					
						 

					
					
						Name:

					
					
						 

				
	
					
						 

					
					
						 

					
					
						Title:

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						By:

					
					
						 

				
	
					
						 

					
					
						 

					
					
						Name:

					
					
						 

				
	
					
						 

					
					
						 

					
					
						Title:

					
					
						 

				

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			
		

		
			

		 

		

			SIGNATURE PAGE TO AMENDMENT NO. 4 TO CREDIT AGREEMENT

		

		

			JP ENERGY PARTNERS LP

		

 

 
		

		
			 
		

			
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						AMEGY BANK NATIONAL ASSOCIATION,  
as a Lender

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						By:

					
					
						/s/ Jill McSorley

				
	
					
						 

					
					
						 

					
					
						Name:

					
					
						Jill McSorley

				
	
					
						 

					
					
						 

					
					
						Title:

					
					
						Senior Vice President

				

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			
		

		
			

		 

		

			SIGNATURE PAGE TO AMENDMENT NO. 4 TO CREDIT AGREEMENT

		

		

			JP ENERGY PARTNERS LP

		

 

 
		

		
			 
		

			
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						ROYAL BANK OF CANADA,
 as a Lender

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						By:

					
					
						 

				
	
					
						 

					
					
						 

					
					
						Name:

					
					
						 

				
	
					
						 

					
					
						 

					
					
						Title:

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						By:

					
					
						 

				
	
					
						 

					
					
						 

					
					
						Name:

					
					
						 

				
	
					
						 

					
					
						 

					
					
						Title:

					
					
						 

				

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			
		

		
			

		 

		

			SIGNATURE PAGE TO AMENDMENT NO. 4 TO CREDIT AGREEMENT

		

		

			JP ENERGY PARTNERS LP

		

 

		

			
					
						 

					
					
						 

					
					
						CADENCE BANK, N.A. , as a Lender

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						By:

					
					
						/s/ William W. Brown

				
	
					
						 

					
					
						 

					
					
						Name:

					
					
						William W. Brown

				
	
					
						 

					
					
						 

					
					
						Title:

					
					
						Senior Vice President

				

		
			 
		

		
			
		

		
			

		 

		

			SIGNATURE PAGE TO AMENDMENT NO. 4 TO CREDIT AGREEMENT

		

		

			JP ENERGY PARTNERS LP

		

 

 
		

		
			 
		

			
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						BARCLAYS BANK PLC,  
as a Lender

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						By:

					
					
						/s/ Vanessa A. Kurbatskiy

				
	
					
						 

					
					
						 

					
					
						Name:

					
					
						Vanessa A. Kurbatskiy

				
	
					
						 

					
					
						 

					
					
						Title:

					
					
						Vice President

				

		
			 
		

		
			 
		

		
			 
		

		 

		

			SIGNATURE PAGE TO AMENDMENT NO. 4 TO CREDIT AGREEMENT

		

		

			JP ENERGY PARTNERS LPExhibit

EXHIBIT 10.2

FIRST AMENDMENT TO CREDIT AGREEMENT

THIS FIRST AMENDMENT TO CREDIT AGREEMENT (this “Amendment”) is entered into as of September 30, 2015, among ASHFORD HOSPITALITY PRIME LIMITED PARTNERSHIP, a Delaware limited partnership (the “Borrower”), ASHFORD HOSPITALITY PRIME, INC., a Maryland corporation (the “Parent”), each Lender (defined below) party hereto, and BANK OF AMERICA, N.A., as Administrative Agent (the “Administrative Agent”), Swing Line Lender, and L/C Issuer (the Administrative Agent, the Swing Line Lender, the L/C Issuer, and Lenders are each a “Credit Party” and collectively “Credit Parties”).

R E C I T A L S

A.    The Borrower, the Parent, the Administrative Agent, the Swing Line Lender, the L/C Issuer, and certain lenders (each, a “Lender” and collectively, “Lenders”) are parties to that certain Credit Agreement dated as of November 19, 2013 (as modified, amended, renewed, extended, or restated from time to time, the “Credit Agreement”).

B.    The Borrower, the Parent, and certain Subsidiaries of the Parent party hereto (each, a “Loan Party” and collectively, the “Loan Parties”) have requested that Credit Parties modify certain provisions contained in the Credit Agreement, and each Credit Party that is a party hereto has agreed to such modifications, subject to the terms and conditions set forth herein.

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

1.    Terms and References.  Unless otherwise stated in this Amendment (a) terms defined in the Credit Agreement have the same meanings when used in this Amendment, and (b) references to “Sections” are to the Credit Agreement’s sections.

2.    Amendment to the Credit Agreement.

(a)Section 1.01 of the Credit Agreement is hereby amended to add the following definitions in the appropriate alphabetical order:

“AH REHE Investment” means, as of the last day of any fiscal quarter, the ownership of the Parent or its Subsidiaries of the equity interests in AIM Real Estate Hedged Equity (U.S.) Fund, LP.  For purposes of covenant compliance, the amount of any AH REHE Investment shall be the value of such investment, determined in accordance with GAAP, as shown on the most recent financial statement of the Consolidated Parties and the Controlled JV Subsidiaries delivered in accordance with Section 6.01 hereof. 

“AINC Investment” means, as of the last day of any fiscal quarter, the ownership of the Parent or its Subsidiaries of the publicly traded shares in Ashford, Inc.  For purposes of covenant compliance, the amount of any AINC Investment shall be valued at the then current market value, calculated by taking the product of the Ashford, Inc. share price as of the last day of such fiscal quarter and the number of shares owned by Parent and its Subsidiaries as of the last day of such fiscal quarter.

First Amendment to Credit Agreement

“First Amendment Effective Date” means September 30, 2015, the effective date of the First Amendment to Credit Agreement, executed by the Borrower, the Parent, the Administrative Agent, the Swing Line Lender, the L/C Issuer, and certain Lenders.

(b)Section 1.01 of the Credit Agreement is hereby amended to delete the definition of “Unrestricted Cash” in its entirety and replace such definition with the following:

“Unrestricted Cash” means, as of any date of determination, without duplication, (a) all “cash and cash equivalents” (as set forth on the balance sheet of the Parent), (b) the AH REHE Investment, (c) the AINC Investment, (d) cash held by property managers, (e) amounts representing “Restricted Cash,” “Marketable Securities,” and “Due From Third Party Hotel Managers” (each as set forth on the balance sheet of the Parent) of the Parent and its Subsidiaries, including its pro rata share of such amounts of any JV Subsidiaries; provided that, “Unrestricted Cash” shall exclude the items set forth in clauses (b), (c), (d), and (e) above to the extent such items exceed $100,000,000 in the aggregate.

(c)Section 1.01 of the Credit Agreement is hereby amended to delete the definition of “Change of Control” in its entirety and replace such definition with the following:

“Change of Control” means an event or series of events by which:
(a)    any “person” or “group” (as such terms are used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, but excluding any employee benefit plan of such person or its subsidiaries, and any person or entity acting in its capacity as trustee, agent or other fiduciary or administrator of any such plan) becomes the “beneficial owner” (as defined in Rules 13d‐3 and 13d‐5 under the Securities Exchange Act of 1934, except that a person or group shall be deemed to have “beneficial ownership” of all securities that such person or group has the right to acquire, whether such right is exercisable immediately or only after the passage of time (such right, an “option right”)), directly or indirectly, of 35% or more of the equity securities of the Parent entitled to vote for members of the board of directors or equivalent governing body of the Parent on a fully-diluted basis (and taking into account all such securities that such “person” or “group” has the right to acquire pursuant to any option right); or

(b)    during any period of 12 consecutive months, a majority of the members of the board of directors or other equivalent governing body of the Parent cease to be composed of individuals (i) who were members of that board or equivalent governing body on the first day of such period, (ii) whose election or nomination to that board or equivalent governing body was approved by individuals referred to in clause (i) above constituting at the time of such election or nomination at least a majority of that board or equivalent governing body or (iii) whose election or nomination to that board or other equivalent governing body was approved by individuals referred to in clauses (i) and (ii) above constituting at the time of such election or nomination at least a majority of that board or equivalent governing body; or

(c)    The Parent shall cease, directly or indirectly, to Control the Borrower.

(d)Section 1.01 of the Credit Agreement is hereby amended to delete the definition of “JV Subsidiary” in its entirety and replace such definition with the following:

“JV Subsidiary” means any entity in which Borrower owns, directly and indirectly, less than 100% of the equity interests, excluding (i) any investment in the securities of any publicly 

2    First Amendment to Credit Agreement

traded company constituting less than 5% of the outstanding class of such securities and (ii) with respect to the calculation of the financial covenants set forth in Section 7.11 hereof, the related definitions, and Section 7.03, Ashford, Inc. and AIM Real Estate Hedged Equity (U.S.) Fund, LP.

(e)Section 3.01(e)(ii)(D) of the Credit Agreement is hereby amended by adding the following at the end thereof:

For purposes of determining withholding Taxes imposed under FATCA, from and after the First Amendment Effective Date, the Borrower and the Administrative Agent shall treat (and the Lenders hereby authorize the Administrative Agent to treat) the Obligations as not qualifying as a “grandfathered obligation” within the meaning of Treasury Regulation Section 1.1471-2(b)(2)(i).
(f)Section 7.03 of the Credit Agreement is hereby amended and restated in its entirety as follows:

7.03    Investments.  Make or hold any Investment, other than those which are in the lines of businesses of the Parent, the Borrower and the Guarantors as of the date hereof, or those substantially related or incidental thereto (for the sake of clarity, acquiring and owning retail and/or commercial space acquired as part of an acquisition consisting primarily of assets otherwise permitted to be acquired or held pursuant to this Section 7.03 shall be considered substantially related or incidental to the lines of businesses of the Parent, the Borrower and the Guarantors as of the date hereof), and unless immediately prior to making such Investment, and immediately thereafter and after giving effect thereto, no Default is or would be in existence, subject to the following additional restrictions:
(a)    The Borrower and the Guarantors shall not make or hold: 
(i)    Investments in real properties consisting of undeveloped or speculative land (valued at cost for purposes of this clause) with an aggregate value greater than 5% of Total Asset Value;
(ii)    Investments in development properties (valued at cost for purposes of this clause) with an aggregate value greater than 5% of Total Asset Value;
(iii)    Investments in JV Subsidiaries that are not consolidated with Parent under GAAP (valued at cost for purposes of this clause) with an aggregate value greater than 25% of Total Asset Value; 
(iv)    Investments in mortgage and mezzanine loans and notes receivables (valued at cost for purposes of this clause) with an aggregate value greater than 10% of Total Asset Value; 
(v)    the AH REHE Investment and the AINC Investment with an aggregate value greater than 10% of Total Asset Value; and
(vi)    Investments such that the collective aggregate value of the Investments owned pursuant to items (i) through (v) of this clause (a) at any time exceeds 25% of Total Asset Value.
3.    Amendments to other Loan Documents.

3    First Amendment to Credit Agreement

(a)    All references in the Loan Documents to the Credit Agreement shall henceforth include references to the Credit Agreement, as modified and amended hereby, and as may, from time to time, be further amended, modified, extended, renewed, and/or increased. 

(b)    Any and all of the terms and provisions of the Loan Documents are hereby amended and modified wherever necessary, even though not specifically addressed herein, so as to conform to the amendments and modifications set forth herein.

4.    Conditions Precedent.  This Amendment shall not be effective unless and until: (a) the Administrative Agent receives fully executed counterparts of this Amendment signed by the Loan Parties, the Administrative Agent, and the Required Lenders; (b) the representations and warranties in the Credit Agreement, as amended by this Amendment, and each other Loan Document are true and correct on and as of the date of this Amendment as though made as of the date of this Amendment except to the extent that any of them speak to a different specific date, in which case they shall be true and correct in on and as such earlier date; provided, that for purposes of this Amendment, the representations and warranties contained in subsections (a) and (b) of Section 5.05 of the Credit Agreement shall be deemed to refer to the most recent statements furnished pursuant to clauses (a) and (b), respectively, of Section 6.01 of the Credit Agreement; (c) the Administrative Agent receives payment of all reasonable fees and expenses of the Administrative Agent in connection with this Amendment; and (d) after giving effect to this Amendment, no Default exists. 

5.    Ratifications.  Each Loan Party (a) ratifies and confirms all provisions of the Loan Documents as amended by this Amendment, (b) ratifies and confirms that all guaranties, assurances, and liens granted, conveyed, or assigned to or for the benefit of the Credit Parties under the Loan Documents are not released, reduced, or otherwise adversely affected by this Amendment and continue to guarantee, assure, and secure full payment and performance of the present and future obligations of the Borrower under the Credit Agreement and the other Loan Documents, and (c) agrees to perform such acts and duly authorize, execute, acknowledge, deliver, file, and record such additional documents, and certificates as the Administrative Agent may request in order to create, perfect, preserve, and protect those guaranties, assurances, and liens.

6.    Representations.  Each Loan Party represents and warrants to the Credit Parties that as of the date of this Amendment: (a) this Amendment has been duly authorized, executed, and delivered by each Loan Party; (b) no action of, or filing with, any governmental authority is required to authorize, or is otherwise required in connection with, the execution, delivery, and performance by any Loan Party of this Amendment except for those which have been obtained; (c) the Loan Documents, as amended by this Amendment, are valid and binding upon each Loan Party and are enforceable against each Loan Party in accordance with their respective terms, except as limited by Debtor Relief Laws; (d) the execution, delivery, and performance by each Loan Party of this Amendment does not require the consent of any other Person and do not and will not constitute a violation of any laws, agreements, or understandings to which any Loan Party is a party or by which any Loan Party is bound except for those which have been obtained; (e) all representations and warranties in the Loan Documents are true and correct except to the extent that any of them speak to a different specific date, in which case they shall be true and correct in all material respects on and as of such earlier date; provided, that for purposes of this Amendment, the representations and warranties contained in subsections (a) and (b) of Section 5.05 of the Credit Agreement shall be deemed to refer to the most recent statements furnished pursuant to clauses (a) and (b), respectively, of Section 6.01 of the Credit Agreement; and (f) no Default exists.

7.    Continued Effect.  Except to the extent amended hereby, all terms, provisions and conditions of the Credit Agreement and the other Loan Documents, and all documents executed in connection therewith, 

4    First Amendment to Credit Agreement

shall continue in full force and effect and shall remain enforceable and binding in accordance with their respective terms.

8.    Miscellaneous.  Unless stated otherwise (a) the singular number includes the plural and vice versa and words of any gender include each other gender, in each case, as appropriate, (b) headings and captions may not be construed in interpreting provisions, (c) this Amendment must be construed -- and its performance enforced -- under New York law, (d) if any part of this Amendment is for any reason found to be unenforceable, all other portions of it nevertheless remain enforceable, and (e) this Amendment may be executed in any number of counterparts (originals or facsimile copies followed by originals) with the same effect as if all signatories had signed the same document, and all of those counterparts must be construed together to constitute the same document.

9.    RELEASE.  EACH LOAN PARTY HEREBY ACKNOWLEDGES THAT THE OBLIGATIONS UNDER THE LOAN DOCUMENTS ARE ABSOLUTE AND UNCONDITIONAL WITHOUT ANY RIGHT OF RECISSION, SETOFF, COUNTERCLAIM, DEFENSE, OFFSET, CROSS-COMPLAINT, CLAIM OR DEMAND OF ANY KIND OR NATURE WHATSOEVER THAT CAN BE ASSERTED TO REDUCE OR ELIMINATE ALL OR ANY PART OF ITS LIABILITY TO REPAY SUCH OBLIGATIONS OR TO SEEK AFFIRMATIVE RELIEF OR DAMAGES OF ANY KIND OR NATURE FROM ANY CREDIT PARTY.  EACH LOAN PARTY HEREBY VOLUNTARILY AND KNOWINGLY RELEASES AND FOREVER DISCHARGES EACH CREDIT PARTY AND EACH CREDIT PARTY’S PREDECESSORS, AGENTS, EMPLOYEES, SUCCESSORS, AND ASSIGNS (COLLECTIVELY, THE “RELEASED PARTIES”), FROM ALL POSSIBLE CLAIMS, DEMANDS, ACTIONS, CAUSES OF ACTION, DAMAGES, COSTS, EXPENSES, AND LIABILITIES WHATSOEVER ARISING FROM OR UNDER THE LOAN DOCUMENTS (AS AMENDED HEREBY) AND THE TRANSACTION EVIDENCED THEREBY, WHETHER KNOWN OR UNKNOWN, ANTICIPATED OR UNANTICIPATED, SUSPECTED OR UNSUSPECTED, FIXED, CONTINGENT, OR CONDITIONAL, AT LAW OR IN EQUITY, ORIGINATING IN WHOLE OR IN PART ON OR BEFORE THE DATE HEREOF WHICH ANY LOAN PARTY MAY NOW OR HEREAFTER HAVE AGAINST THE RELEASED PARTIES, IF ANY, AND IRRESPECTIVE OF WHETHER ANY SUCH CLAIMS ARISE OUT OF CONTRACT, TORT, VIOLATION OF LAW OR REGULATIONS, OR OTHERWISE, INCLUDING, WITHOUT LIMITATION, ANY CONTRACTING FOR, CHARGING, TAKING, RESERVING, COLLECTING, OR RECEIVING INTEREST IN EXCESS OF THE HIGHEST LAWFUL RATE APPLICABLE.

10.    ENTIRETIES.  THE CREDIT AGREEMENT AS AMENDED BY THIS AMENDMENT REPRESENTS THE FINAL AGREEMENT BETWEEN THE PARTIES ABOUT THE SUBJECT MATTER OF THE CREDIT AGREEMENT AS AMENDED BY THIS AMENDMENT 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.

11.    Parties.  This Amendment binds and inures to each Loan Party and each Credit Party, and their respective successors and permitted assigns.

[Remainder of Page Intentionally Left Blank; Signature Pages Follow]

5    First Amendment to Credit Agreement

EXECUTED as of the date first stated above.

ASHFORD HOSPITALITY PRIME LIMITED PARTNERSHIP

		
	By:
	Ashford Prime OP General Partner LLC, its general partner 

		
	By:
	/s/ DAVID A. BROOKS 
Name: David A. Brooks 
Title: Vice President

ASHFORD HOSPITALITY PRIME, INC.
		
	By:
	/s/ DAVID A. BROOKS 
Name: David A. Brooks 
Title: Chief Operating Officer and General Counsel

ASHFORD PRIME OP LIMITED PARTNER LLC
ASHFORD PRIME OP GENERAL PARTNER LLC
ASHFORD HHC III LLC

		
	By:
	/s/ DAVID A. BROOKS 
Name: David A. Brooks 
Title: Vice President

ASHFORD PRIME TRS CORPORATION

		
	By:
	/s/ DERIC S. EUBANKS 
Name: Deric S. Eubanks 
Title: President

Signature Page to First Amendment to Credit Agreement

BANK OF AMERICA, N.A., as the Administrative Agent

		
	By:
	/s/ SUZANNE E. PICKETT 
Name:  Suzanne E. Pickett 
Title:  Vice President

Signature Page to First Amendment to Credit Agreement

BANK OF AMERICA, N.A., as a Lender, the L/C Issuer, and the Swing Line Lender 

		
	By:
	/s/ SUZANNE E. PICKETT 
Name:  Suzanne E. Pickett 
Title:  Vice President

Signature Page to First Amendment to Credit Agreement

CREDIT AGRICOLE CORPORATE AND INVESTMENT BANK, as a Lender

		
	By:
	/s/ JOSEPH A. ASCIOLLA 
Name:  Joseph A. Asciolla 
Title:  Managing Director

		
	By:
	/s/ DAVID BOWERS 
Name:  David Bowers 
Title: Managing Director

Signature Page to First Amendment to Credit Agreement

CREDIT SUISSE AG, CAYMAN ISLANDS BRANCH, as a Lender

		
	By:
	/s/ MIKHAIL FAYBUSOVICH 
Name: Mikhail Faybusovich 
Title: Authorized Signatory

		
	By:
	/s/ GREGORY FANTONI 
Name: Gregory Fantoni 
Title: Authorized Signatory

Signature Page to First Amendment to Credit Agreement

KEYBANK NATIONAL ASSOCIATION, as a Lender

		
	By:
	/s/ ANGELA KARA 
Name: Angela Kara 
Title: Assistant Vice President

Signature Page to First Amendment to Credit Agreement

MORGAN STANLEY BANK, N.A., as a Lender

		
	By:
	/s/ EMANUEL MA 
Name: Emanuel Ma 
Title: Authorized Signatory

Signature Page to First Amendment to Credit Agreement

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