Document:

EX 101_TUSA CF Amend_1

		

			Exhibit 10.1

		

		

			 

		

		
			 
		

		
			AMENDMENT NO. 1 TO SECOND AMENDED AND RESTATED
CREDIT AGREEMENT
		

		
			This Amendment No. 1 to Second Amended and Restated Credit Agreement (this “Agreement”) dated as of April 30, 2015 (the “Effective Date”) is among Triangle USA Petroleum Corporation, a Colorado corporation  (the “Borrower”), Foxtrot Resources LLC, a Colorado limited liability company (“Foxtrot”), Leaf Minerals, LLC, a Colorado limited liability company  (together with Foxtrot, the “Guarantors”), the undersigned 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 “Lenders”), the Issuing Lender, and the Administrative Agent have entered into the Second Amended and Restated Credit Agreement dated as of November 25, 2014 (as may be amended, restated, or modified from time to time, the “Credit Agreement”).

			
	
			
				 B.
			The Guarantors have entered into the Second Amended and Restated Guaranty Agreement dated as of November 25, 2014  (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.

		
			THEREFORE, in fulfillment of the foregoing, the Borrower, the Guarantors, the Administrative Agent, the Issuing Lender,  and 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.  Upon the satisfaction of the conditions specified in Section 6 of this Agreement, and effective as of the Effective Date, 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:

		
			"Amendment No. 1" means the Amendment No. 1 to Second Amended and Restated Credit Agreement dated as of April 30, 2015 by and among the Borrower, the Guarantors, the Lenders party thereto, the Administrative Agent and the Issuing Lender.
		

		
			"Amendment No. 1 Effective Date" means April 30, 2015.
		

		

		

		 

 

		"Cure Period" has the meaning set forth in Section 7.7.
		

		
			"Cure Quarter" has the meaning set forth in Section 7.7.
		

		
			"Cure Right" has the meaning set forth in Section 7.7.
		

		
			"Financial Covenants" has the meaning set forth in Section 7.7.
		

		
			"Senior Secured Debt" means the consolidated Debt of the Borrower minus that portion of the consolidated Debt of the Borrower that is not secured by a Lien on any assets of the Borrower or any Subsidiary of the Borrower.
		

		
			"Senior Secured Leverage Ratio" means, as of the end of each fiscal quarter, the ratio of (a) the consolidated Senior Secured Debt of the Borrower (other than obligations under permitted Hedging Arrangements) as of the last day of such fiscal quarter to (b) the consolidated EBITDAX of the Borrower for the four-fiscal quarter period then ended.
		

		
			"Specified Equity Contribution" means at any time, without duplication, the amount of cash proceeds received by the Borrower from an issuance of Equity Interests to a Person other than a Credit Party or as a cash capital contribution from an owner of its Equity Interests (other than a Credit Party), which is made for the purpose of curing a failure to comply with Section 6.16,  Section 6.17,  and/or Section 6.21 that would otherwise occur, pursuant to the exercise of a Cure Right pursuant to Section 7.7.  
		

			
	
			
				 (b)
			Section 1.1 of the Credit Agreement is amended to replace each of the following definitions to read in their entireties as follows:

		
			"Agreement" means this Second Amended and Restated Credit Agreement among the Borrower, the Lenders, the Issuing Lenders and the Administrative Agent, as amended by the Amendment No. 1.
		

		
			"Interest Expense" means, for the Borrower and its Subsidiaries, on a consolidated basis for any period, the sum of (a) interest expense as determined in conformity with GAAP, plus (b) capitalized interest expenses, plus (c) without duplication and to the extent deducted in determining Net Income (i) letter of credit fees and other fees and expenses incurred by such Person in connection with any Debt (including but not limited to Debt under this Agreement) for such period, whether paid or accrued (including that attributable to obligations which have been or should be, in accordance with GAAP, recorded as Capital Leases), including, without limitation, all commissions, discounts, and other fees and charges owed with respect to letters of credit and bankers' acceptance financing, (ii) fees owed with respect to the Secured Obligations, and (iii) net costs under Hedging Arrangements entered into addressing interest 
		

		 

		

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		rates, minus  (d) write-downs of deferred loan costs associated with a reduction to the Borrowing Base.
		

			
	
			
				 (c)
			Section 1.1 of the Credit Agreement is amended to delete the definition of “Funded Debt” and “Leverage Ratio”.

			
	
			
				 (d)
			The definition of “Subordinated Debt” in Section 1.1 of the Credit Agreement is amended to add “, (i)” immediately after “(f)” in the text of such definition.

			
	
			
				 (e)
			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 Amendment No. 1 Effective Date has been set by the Administrative Agent and the Lenders and acknowledged by the Borrower as $350,000,000.  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 2.2(c) and reductions pursuant to Section 2.2(e).”
		

			
	
			
				 (f)
			Section 6.1(i) of the Credit Agreement is amended to read in its entirety as follows:

		
			“(i)Debt consisting of the senior unsecured notes outstanding on the Amendment No. 1 Effective Date and refinancings thereof in the form of senior unsecured notes (the “Permitted Notes”); provided that with respect to any such refinancing: 
		

		
			(i)the principal amount of such Debt after giving effect to such refinancing shall not exceed the principal amount of the Debt being refinanced plus an amount equal to the unpaid accrued interest and premium thereon plus other amounts paid and fees and expenses incurred in connection with such refinancing;
		

		
			(ii)the Borrower is in pro forma compliance with Sections 6.16, 6.17 and 6.21 after giving effect to any such refinancing;
		

		
			(iii)such Debt is not secured by any Lien;
		

		
			(iv)no principal amount of such Debt matures earlier than six months after the Maturity Date;
		

		
			(v)no Default or Event of Default is occurring at the time of, or would occur as a result of, any such refinancing;
		

		
			(vi)the agreement or indenture governing any such Debt shall have covenants and restrictions that are no more restrictive than those set forth in the Credit Documents; and
		

		

		

		 

		

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		(vii)the agreement or indenture governing any such debt shall not have any restriction on the ability of the Borrower or any of its Subsidiaries to guarantee the Secured Obligations or to pledge assets as Collateral for the Secured Obligations;”
		

			
	
			
				 (g)
			Section 6.9 of the Credit Agreement is amended by deleting the text “or (h)” in clause (a)(ii) and replacing clauses (d) and (e) to read in their entireties as follows:

		
			“(d)[Reserved]; and
		

		
			(e)the Borrower may make Restricted Payments in an aggregate amount not to exceed the lesser of (A) the net amount of any cash contribution or equity proceeds received from the Parent since the Closing Date and not previously distributed by the Borrower as a Restricted Payment (provided however that this net amount shall not include any Specified Equity Contribution) and (B) $80,000,000; provided that (i) no Default, Event of Default or Borrowing Base Deficiency exists or would result from such Restricted Payment, (ii) Availability would not be less than 20% of the lesser of the then effective Borrowing Base and the aggregate Commitments after giving effect to such Restricted Payment, and (iii) the Senior Secured Leverage Ratio is no greater than 2.25 to 1.00 on a pro forma basis after giving effect to such Restricted Payment.”
		

			
	
			
				 (h)
			Section 6.16 of the Credit Agreement is amended to read in its entirety as follows:

		
			“Section 6.16Senior Secured Leverage Ratio.  The Borrower shall not permit the Senior Secured Leverage Ratio as of each fiscal quarter end, beginning with the fiscal quarter ending April 30, 2015, to be more than 2.75 to 1.00.”
		

			
	
			
				 (i)
			Section 6.19 of the Credit Agreement is amended by deleting the text “, or Section 6.21, as applicable”.

			
	
			
				 (j)
			A new Section 6.21 of the Credit Agreement is added to read in its entirety as follows:

		
			“Section 6.21Interest Coverage Ratio.  Borrower shall not, as of each fiscal quarter end, beginning with the fiscal quarter ending April 30, 2015, permit the ratio of (a) EBITDAX for the four-fiscal quarter period then ended to (b) Interest Expense for such period to be less than 2.50 to 1.00.”
		

			
	
			
				 (k)
			A new Section 7.7 of the Credit Agreement is added to read in its entirety as follows:

		
			“Section 7.7Right to Cure Financial Covenant Defaults.  In the event that the Borrower fails to comply with the requirements of Section 6.16, Section 6.17 and/or Section 6.21 (collectively, the “Financial Covenants”) for any fiscal quarter (the “Cure Quarter”), then for the period beginning on the first day following the end of the Cure Quarter and ending on the expiration of the tenth 
		

		 

		

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		Business Day following the date the Compliance Certificate for calculating the Financial Covenants is required to be delivered pursuant to Section 5.2(e) (the “Cure Period”), the Borrower shall be permitted to cure such failure or failures to comply (the “Cure Right”) by requesting that the Financial Covenants be recalculated by allocating the Specified Equity Contribution received by the Borrower during the Cure Period  to either (a) increase EBITDAX (in the case of Section 6.16 or Section 6.21), (b) increase consolidated current assets (in the case of Section 6.17), or (c) combine the options in the foregoing clauses (a) and (b) so that a portion of the Specified Equity Contribution is separately allocated to each such option.  If, after giving effect to the foregoing recalculations, the Borrower shall then be in compliance with the requirements of the Financial Covenants, the Borrower shall be deemed to have satisfied the requirements of the Financial Covenants as of the relevant earlier required date of determination with the same effect as though there had been no failure to comply therewith at such date, and the applicable Default or Event of Default with respect to the Financial Covenants that had occurred shall be deemed not to have occurred for purposes of this Agreement and the other Credit Documents; provided that:
		

		
			(a)in each period of four consecutive fiscal quarters there shall be at least two fiscal quarters in which no Cure Right is exercised;
		

		
			(b)Cure Rights shall not be exercised (i) more than five times in the aggregate nor (ii) after October 16, 2018;
		

		
			(c)each Specified Equity Contribution shall be no greater than the amount required to cause the Borrower to be in compliance with the Financial Covenants for the Cure Quarter; provided that any cash proceeds received by the Borrower in excess of the amount required to cause the Borrower to be in compliance with the Financial Covenants for the Cure Quarter will not constitute a Specified Equity Contribution but will, to the extent received from the Parent, constitute a cash contribution or equity proceeds received by the Borrower for purposes of Section 6.9(e);
		

		
			(d)no proceeds of any Specified Equity Contribution shall be permitted to reduce Debt or current liabilities included in the calculation of Debt or consolidated current liabilities, as applicable, for purposes of determining compliance with the Financial Covenants during the Cure Quarter; provided, however, that such proceeds from such Specified Equity Contribution shall be permitted to reduce Debt or current liabilities included in the calculation of Debt or consolidated current liabilities, as applicable, for purposes of determining compliance with the Financial Covenants during fiscal quarters subsequent to the Cure Quarter so long as the proceeds of such Specified Equity Contributions are actually applied to pay any current liability or Debt during any fiscal quarter subsequent to the Cure Quarter;
		

		

		

		 

		

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		(e)(i) in the case of Section 6.16 and Section 6.21, the Specified Equity Contribution shall be credited only to the Cure Quarter; provided that, for subsequent fiscal quarters, the Specified Equity Contribution shall be credited for the Cure Quarter and any subsequent periods that include the Cure Quarter in the compliance calculation, and (ii) in the case of Section 6.17, the Specified Equity Contribution shall be credited only to the Cure Quarter; and
		

		
			(f)the Specified Equity Contribution shall not be credited for purposes of determining compliance with any covenants other than the Financial Covenants.
		

		
			Upon receipt by the Administrative Agent of written notice, on or prior to the expiration of the Cure Period, that the Borrower intends to exercise a Cure Right in respect of a fiscal quarter, the Lenders shall not be permitted to accelerate payment of any Obligations owed to them or to exercise remedies, in each case, on the basis of a failure to comply with the requirements of the Financial Covenants, unless such failure is not cured pursuant to the exercise of the Cure Right on or prior to the expiration of the Cure Period; provided that, for the avoidance of doubt, the foregoing Cure Right shall not affect in any way the rights and remedies of the Lenders, the Administrative Agent, the Collateral Agent or the Issuing Lender with respect to any other Default or Event of Default.”
		

			
	
			
				 (l)
			Exhibit C to the Credit Agreement is replaced with Exhibit C hereto.

			
	
			
				 Section 3.
			Reaffirmation of Liens.   

			
	
			
				 (a)
			Each of the Borrower and each Guarantor (i) is party to certain Security Documents securing and supporting the Borrower's  and such 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 such 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 Guarantors’ approval of amendments to the Credit Agreement.

			
	
			
				 Section 4.
			Reaffirmation of Guaranty.  Each 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 such 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 
		

		 

		

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			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 the Guarantors 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 5.
			Representations and Warranties.   Each of the Borrower and each 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 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 6.
			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 each of the following:

			
	
			
				 (1)
			this Agreement, duly and validly executed by the Borrower, the Guarantors, the Administrative Agent, the Issuing Bank and the Required Lenders, in form and substance reasonably satisfactory to the Administrative Agent and the Required Lenders; and

			
	
			
				 (2)
			the fee letter (the “Fee Letter”), duly and validly executed by the Borrower and the Administrative Agent in form and substance reasonably satisfactory to the Administrative Agent.

			
	
			
				 (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 
		

		 

		

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			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’s having paid (i) to the Administrative Agent, for the account of each Lender executing this Agreement, an amendment fee equal to 0.15% of such Lender’s Pro Rata Share of the Borrowing Base in effect after the effectiveness of this Agreement and (ii) the fees set forth in the Fee Letter, in accordance with the terms thereof. 

			
	
			
				 (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.

			
	
			
				 Section 7.
			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 8.
			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 9.
			Counterparts.  This Agreement may be signed in any number of counterparts, each of which shall be an original.

			
	
			
				 Section 10.
			FATCA.  For purposes of determining withholding Taxes imposed under FATCA, from and after the Effective Date, the Borrower and the Administrative Agent shall treat (and the Lenders hereby authorize the Borrower and the Administrative Agent to treat) the Credit Agreement as not qualifying as a “grandfathered obligation” within the meaning of Treasury Regulation Section 1.1471-2(b)(2)(i). 

		
			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. 
		

		
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		EXECUTED as of the date first set forth above.
		

		
			BORROWER:
		

		
			TRIANGLE USA PETROLEUM CORPORATION
		

		
			 
		

		
			 
		

		
			 
		

		
			By:  /s/ Justin Bliffen
		

		
			Name: Justin Bliffen
		

		
			Title:   Chief Financial Officer
		

		
			 
		

		
			GUARANTOR:
		

		
			foxtrot resources llc
		

		
			 
		

		
			 
		

		
			 
		

		
			By:  /s/ Justin Bliffen
		

		
			Name: Justin Bliffen
		

		
			Title:   Chief Financial Officer
		

		
			 
		

		
			Leaf Minerals, llc
		

		
			 
		

		
			 
		

		
			 
		

		
			By:  /s/ Justin Bliffen
		

		
			Name: Justin Bliffen
		

		
			Title:   Chief Financial Officer
		

		

		

		 

		

			[SIGNATURE PAGE TO AMENDMENT NO. 1 TO 2ND 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. 1 TO 2ND A&R CREDIT AGREEMENT – TRIANGLE USA PETROLEUM]

		

 

		

			 

		

		LENDERS:
		

		
			BANK OF AMERICA, N.A.,
		

		
			as a Lender
		

		
			 
		

		
			 
		

		
			By:  /s/ Joseph Scott
		

		
			Name: Joseph Scott
		

		
			Title:   Managing Director
		

		
			 
		

		
			 
		

		
			 
		

		

		

		 

		

			[SIGNATURE PAGE TO AMENDMENT NO. 1 TO 2ND 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. 1 TO 2ND A&R CREDIT AGREEMENT – TRIANGLE USA PETROLEUM]

		

 

		

			 

		

		THE BANK OF NOVA SCOTIA,
		

		
			as a Lender
		

		
			 
		

		
			 
		

		
			By:  /s/ Alan Dawson
		

		
			Name: Alan Dawson
		

		
			Title:   Director
		

		

		

		 

		

			[SIGNATURE PAGE TO AMENDMENT NO. 1 TO 2ND A&R CREDIT AGREEMENT – TRIANGLE USA PETROLEUM]

		

 

		KEYBANK NATIONAL ASSOCIATION,
		

		
			as a Lender
		

		
			 
		

		
			 
		

		
			By:  /s/ John Dravenstott
		

		
			Name: John Dravenstott
		

		
			Title:   Vice President
		

		
			 
		

		

		

		 

		

			[SIGNATURE PAGE TO AMENDMENT NO. 1 TO 2ND A&R CREDIT AGREEMENT – TRIANGLE USA PETROLEUM]

		

 

		COMERICA BANK,
		

		
			as a Lender
		

		
			 
		

		
			 
		

		
			By:  /s/ Devin S. Eaton
		

		
			Name: Devin S. Eaton
		

		
			Title:   Relationship Manager
		

		
			 
		

		

		

		 

		

			[SIGNATURE PAGE TO AMENDMENT NO. 1 TO 2ND A&R CREDIT AGREEMENT – TRIANGLE USA PETROLEUM]

		

 

		CITIBANK, N.A.,
		

		
			as a Lender
		

		
			 
		

		
			 
		

		
			By:  /s/ Dustin S. Hansen
		

		
			Name: Dustin S. Hansen
		

		
			Title:   Senior Vice President
		

		
			 
		

		
			 
		

		

		

		 

		

			[SIGNATURE PAGE TO AMENDMENT NO. 1 TO 2ND A&R CREDIT AGREEMENT – TRIANGLE USA PETROLEUM]

		

 

		BOKF, NA,
		

		
			as a Lender
		

		
			 
		

		
			 
		

		
			By:  /s/ Parker Heikes
		

		
			Name: Parker Heikes
		

		
			Title:   Vice President
		

		
			 
		

		

		

		 

		

			[SIGNATURE PAGE TO AMENDMENT NO. 1 TO 2ND A&R CREDIT AGREEMENT – TRIANGLE USA PETROLEUM]

		

 

		

			 

		

		TORONTO DOMINION (NEW YORK) LLC,
		

		
			as a Lender
		

		
			 
		

		
			 
		

		
			By:  /s/ Marie Fernandes
		

		
			Name: Marie Fernandes
		

		
			Title:   Authorized Signatory
		

		

		

		 

		

			[SIGNATURE PAGE TO AMENDMENT NO. 1 TO 2ND A&R CREDIT AGREEMENT – TRIANGLE USA PETROLEUM]

		

 

		CREDIT SUISSE AG, CAYMAN ISLANDS BRANCH,
		

		
			as a Lender
		

		
			 
		

		
			 
		

		
			By:  /s/ Doreen Barr
		

		
			Name: Doreen Barr
		

		
			Title:   Authorized Signatory
		

		
			 
		

		
			 
		

		
			By:  /s/ Franziska Schoch
		

		
			Name: Franziska Schoch
		

		
			Title:   Authorized Signatory
		

		
			 
		

		

		

		 

		

			[SIGNATURE PAGE TO AMENDMENT NO. 1 TO 2ND A&R CREDIT AGREEMENT – TRIANGLE USA PETROLEUM]

		

 

		IBERIABANK,
		

		
			as a Lender
		

		
			 
		

		
			 
		

		
			By:  /s/ Cameron D. Jones
		

		
			Name: Cameron D. Jones
		

		
			Title:   Senior Vice President
		

		
			 
		

		
			 
		

		 

		

			[SIGNATURE PAGE TO AMENDMENT NO. 1 TO 2ND A&R CREDIT AGREEMENT – TRIANGLE USA PETROLEUM]WRB 3.31.2015 EX10.1

2015 Performance Unit Award Agreement
Under the W. R. Berkley Corporation 2014 Long-Term Incentive Plan
This 2015 Performance Unit Award Agreement (this “Agreement”), effective January 1, 2015, represents an Award of Performance Units by W. R. Berkley Corporation (the “Company”), to the Participant named below, pursuant to the provisions of the W. R. Berkley Corporation 2014 Long-Term Incentive Plan (the “Plan”). The value of the Performance Units will be determined based on the increase in the Company’s Book Value Per Share during the Performance Period, as determined below.
The Plan provides a complete description of the terms and conditions governing the Performance Units. If there is any inconsistency between the terms of this Agreement and the terms of the Plan, the Plan’s terms shall completely supersede and replace the conflicting terms of this Agreement. All capitalized terms shall have the meanings ascribed to them in the Plan, unless specifically set forth otherwise herein. The parties hereto agree as follows:
1.    General Grant Information. The individual named below has been selected to be a Participant in the Plan and receive a grant of Performance Units, as specified below:
(a)  Participant:
(b)  Number of Performance Units Granted:
(c)  Initial Value of Performance Units: $0.00
(d)  Date of Grant: January 1, 2015
(e)  Performance Measure: Increase in Book Value Per Share, as set forth in Section 3 below.
2.    Performance Period. The Performance Period commences on January 1, 2015, and ends on December 31, 2019; provided, however, that, in the event that the Participant dies or experiences a Qualifying Termination, the Performance Period for such Participant shall be deemed to end on December 31 of the fiscal year immediately prior to the fiscal year in which such death or Qualifying Termination occurred.
3.    Value of a Performance Unit. Each Performance Unit shall have a value determined by multiplying the Increase in Book Value Per Share by three and fifty-nine hundredths (3.59), subject to a maximum value of one hundred dollars ($100.00) per Performance Unit.
4.    Eligibility for Earned Performance Units. The Participant shall only be eligible for payment of earned Performance Units. Performance Units will be earned only if the Participant’s employment with the Company continues through the end of the Performance Period. Notwithstanding anything herein to the contrary, the Performance Units shall not be earned and shall not become payable unless and until the Participant has complied with the Competitive Action restriction set forth in Section 5(d) below on or prior to the Settlement Date.
5.    Payout of Performance Units. (a) Except as set forth in Section 5(b) or 8 below, the aggregate positive value, if any, of the earned Performance Units, based on the value of the earned Performance Units on the last day of the Performance Period as determined in accordance with this Agreement and 

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subject to the maximum value set forth in Section 3 hereof, shall be paid to the Participant in cash following the last day of the Performance Period but in no event later than March 31, 2020.
(b)    In the event of the death or Qualifying Termination of the Participant, payment of the value, if any, of the earned Performance Units in accordance with the terms of this Agreement shall extinguish the Company’s obligation hereunder, and the Participant shall not be entitled to any further payment or appreciation in the value of the Performance Units. In the event such payment is made due to the Participant’s death, such payment shall be made to the Participant’s beneficiary (or the Participant’s estate if no beneficiary has been chosen or if such beneficiary has predeceased the Participant).  Any payment upon death or any Qualifying Termination shall be made within ninety (90) calendar days following such death or Qualifying Termination; provided, however, that if such ninety (90) day period spans two separate taxable years, such payment shall be made in the later taxable year; provided further, however, that any payment hereunder (calculated as of the end of the fiscal year immediately prior to the fiscal year in which such Qualifying Termination occurred) upon a Qualifying Termination shall be delayed until the earlier of (x) March 31, 2020 and (y) such time as the Participant has also undergone a “separation from service” as defined in Treas. Reg. 1.409A-1(h), at which time such payment shall be made to the Participant according to the schedule set forth in this Section 5(b) as if the Participant had undergone such Qualifying Termination (under the same circumstances) on the date of such “separation from service.” Notwithstanding anything herein to the contrary, to the extent the Participant is a “specified employee” as defined in Treas. Reg. 1.409A-1(i), any payment to be made upon the Participant’s “separation from service” shall be delayed until and made upon the earlier of (i) the six (6) month anniversary of the Participant’s “separation from service” and (ii) the Participant’s death.
(c)    This Award shall expire and the Company shall have no further obligation to make any payment hereunder once a payment is made pursuant to Section 5(a) or (b) above or Section 8 below.
(d)    If on or prior to the Settlement Date, the Participant engages in a Competitive Action or enters into, or has entered into, an agreement (written, oral or otherwise) to engage in Competitive Action or has engaged in Misconduct, all of the Performance Units, whether earned or unearned, shall be immediately forfeited, and the Participant shall have no further rights with respect to such Performance Units. In the event that the Participant engages in any Competitive Action or enters into, or has entered into, an agreement (written, oral or otherwise) to engage in Competitive Action or engages in Misconduct after the Settlement Date but on or prior to the second anniversary of the Settlement Date, the Participant shall pay to the Company, upon demand by the Company, an amount equal to the amount paid to the Participant in respect of the Performance Units on the Settlement Date. The determination as to whether the Participant has engaged in any Competitive Action or Misconduct shall be made by the Committee in its sole and absolute discretion.  The Committee has sole and absolute discretion to determine whether, notwithstanding its determination that the Participant has engaged in a Competitive Action or Misconduct, recapture or forfeiture as provided herein shall not occur. The Committee’s exercise or nonexercise of such discretion with respect to any particular event or occurrence by or with respect to the Participant or any other recipient of Performance Units under the Plan shall not in any way reduce or eliminate the authority of the Committee to (i) determine that any event or occurrence by or with respect to the Participant constitutes engaging in Competitive Action or Misconduct, or (ii) determine the related Competitive Action or Misconduct date. The Participant acknowledges that the restriction with respect to engaging in a Competitive Action, in view of the nature of the business in which the Company is engaged, is reasonable in scope (as to both the temporal and geographical limits) and necessary in order to protect the legitimate business interests of the Company. The Participant acknowledges further that engaging in a Competitive Action or Misconduct would result in irreparable injuries to the Company and would cause loss in an amount that cannot be readily quantified. The Participant acknowledges further the amounts required to be paid to the Company pursuant to this provision are reasonable and are not liquidated damages nor shall they be characterized as such.

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(e)    The Participant’s employment will not be considered to continue if his or her employment has been terminated (regardless of the reason for such termination and whether or not later found to be invalid or in breach of employment laws in the jurisdiction where the Participant is employed or the terms of the Participant’s employment agreement, if any), and unless otherwise expressly provided in this Agreement or determined by the Company, the Participant’s right to continue to earn pursuant to the Performance Units awarded hereunder, if any, will terminate as of such date and will not be extended by any notice period arising under local law or contract (e.g., unless the Participant is actively providing substantial services as required by the Company during any notice period. However, the Participant’s period of service would not include any contractual notice period or any period of “garden leave” or similar period arising under employment laws in the jurisdictions where the Participant is employed or the terms of Participant’s employment agreement, if any).
6.    Nontransferability. The Performance Units granted hereunder may not be sold, transferred, pledged, assigned, or otherwise alienated or hypothecated, other than by will or by the laws of descent and distribution.
7.    Administration. This Agreement and the rights of the Participant hereunder are subject to all the terms and conditions of the Plan, as the same may be amended from time to time, as well as to such rules and regulations as the Committee may adopt for administration of the Plan. It is expressly understood that the Committee is authorized to administer, construe, and make all determinations necessary or appropriate to the administration of the Plan and this Agreement, all of which shall be final and binding upon the Participant, including without limitation any determination concerning a Competitive Action. Any inconsistency between the Agreement and the Plan shall be resolved in favor of the Plan.
8.    Change in Control.  In the event of a Change in Control, unless otherwise specifically prohibited under applicable laws or by the rules and regulations of any governing governmental agencies or national securities exchanges: 
(a)    With respect to each outstanding Performance Unit that is assumed or substituted in connection with a Change in Control, in the event that the Participant’s employment with the Company is terminated (i) by the Company or a Subsidiary or Affiliate, as applicable, without Cause or (ii) by the Participant for Good Reason, in each case during the eighteen (18) month period following such Change in Control, the value of all Performance Units shall be determined and fixed as of the end of the fiscal year immediately preceding the fiscal year in which such termination occurs, and such value shall be paid to the Participant in accordance with, and subject to, the provisions of Sections 4 and 5 hereof.  Following such termination, Performance Units shall not accrue any additional value for the fiscal year in which such termination occurs or for any subsequent fiscal years.
(b)    With respect to each outstanding Performance Unit that is not assumed or substituted in connection with a Change in Control, immediately upon the occurrence of the Change in Control, which shall be deemed the end of the Performance Period, the value of all Performance Units shall be determined and fixed as of the end of the fiscal year immediately preceding the fiscal year in which such Change in Control occurs, and such value shall be paid to the Participant within ninety (90) calendar days following the date of such Change in Control; provided, however, that if such ninety (90) day period spans two separate taxable years, such payment shall be made in the later taxable year. Following such Change in Control, Performance Units shall not accrue any additional value for the fiscal year in which such Change in Control occurs or for any subsequent fiscal years.
(c)    For purposes of this Section 8, a Performance Unit shall be considered assumed or substituted for if, following the Change in Control, the Performance Unit is assumed or substituted for 

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with one of comparable value and remains subject to the same terms and conditions that were applicable to the Performance Units immediately prior to the Change in Control.
(d)    For purposes of this Section 8, an event shall only constitute a Change in Control if the event constituting a Change in Control also constitutes “a change in the ownership or effective control of the Company, or in the ownership of a substantial portion of the assets of the Company” within the meaning of Section 409A(a)(2)(A)(v) of the Code and the regulations promulgated thereunder.
9.    Miscellaneous.
(a)    This Agreement shall not confer upon the Participant any right to continuation of employment by the Company, nor shall this Agreement interfere in any way with the Company’s right to terminate the Participant’s employment at any time.
(b)    The Committee may terminate, amend, or modify the Plan; provided, however, that no such termination, amendment, or modification of the Plan may in any material way adversely affect the Participant’s rights under this Agreement. 
(c)    The Company or a Subsidiary or Affiliate, as applicable, shall have the authority to deduct or withhold from any payment hereunder or from any other source of the Participant’s compensation from the Company or a Subsidiary or Affiliate, as applicable, or may require the Participant to remit to the Company or a Subsidiary or Affiliate, as applicable, before payment hereunder, an amount sufficient to satisfy federal, state, and local taxes (including Participant’s FICA obligation) required by law to be withheld with respect to any taxable event arising out of this Agreement. 
(d)    This Agreement shall be subject to all applicable laws, rules, and regulations, and to such approvals by any governmental agencies or national securities exchanges as may be required. 
(e)    To the extent not preempted by federal law, this Agreement shall be governed by, and construed in accordance with, the laws of the State of Delaware, regardless of its conflicts of laws principles.
(f)    All obligations of the Company under the Plan and this Agreement with respect to the Performance Units shall be binding on any successor to the Company, whether the existence of such successor is the result of a direct or indirect purchase, merger, consolidation, or otherwise, of all or substantially all of the business and/or assets of the Company.
(g)    The provisions of this Agreement are severable and if any one or more provisions are determined to be illegal or otherwise unenforceable, in whole or in part, the remaining provisions shall nevertheless be binding and enforceable.
(h)    By accepting this Award or other benefit under the Plan, the Participant and each person claiming under or through the Participant shall be conclusively deemed to have indicated their acceptance and ratification of, and consent to, any action taken under the Plan by the Company, the Board or the Committee.
(i)    The Participant, every person claiming under or through the Participant, and the Company hereby waive to the fullest extent permitted by applicable law any right to a trial by jury with respect to any litigation directly or indirectly arising out of, under, or in connection with the Plan or this Award Agreement issued pursuant to the Plan.

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(j)    Definitions. The following terms shall have the meanings ascribed to them when used in this Agreement:
(i)    “Beginning Book Value Per Share” means $34.76.
(ii)    “Book Value Per Share” as of the end of any fiscal year shall be equal to the quotient of X divided by Z, where X is equal to the sum of A, B, C, D and E minus F, and Z is equal to the sum of W plus Y:  [(A+B+C+D+E-F) ÷ (W+Y)].  For purposes of this calculation, 
(A) shall be equal to the Company’s total common stockholders’ equity as of the end of such fiscal year, as determined in accordance with generally accepted accounting principles and reported in the Company’s audited financial statements, 
(B) shall be equal to the cumulative after-tax expense of the Company from January 1, 2015 through the end of such fiscal year arising from all the Awards made under the Plan, 
(C) shall be equal to the cumulative cash dividends on the Company’s common stock declared from January 1, 2015 through the end of such fiscal year, 
(D) shall be equal to the cumulative cost of the Company’s common stock repurchased by the Company from January 1, 2015 through the end of such fiscal year, 
(E) shall represent imputed interest on the cost of the Company’s common stock repurchased by the Company and the amount of special dividends (any dividend other than the regular quarterly cash dividend) paid by the Company during the Performance Period.  Such interest shall be imputed on such repurchases and special dividends from the first day of the quarter following such repurchases and special dividends to the end of the Performance Period.  The imputed interest rate shall be equal to the average annual Increase in Book Value Per Share for the Performance Period, before consideration of this subsection E,
(F) shall be equal to the Company’s accumulated other comprehensive income as of the end of such fiscal year, 
(W) shall be equal to the number of shares of the Company’s common stock issued and outstanding, net of treasury shares, as of the end of such fiscal year, and 
(Y) shall be the cumulative number of shares of the Company’s common stock repurchased by the Company from January 1, 2015 through the end of such fiscal year.  
Book Value Per Share shall be calculated without taking into account any forward or reverse split of the Company’s common stock or any stock dividend declared on the Company’s common stock and there shall be no adjustment to the number of Performance Units awarded hereunder in either event.  Notwithstanding anything herein to the contrary the formula to determine Book Value Per Share may be further modified to take into account any factor set forth in Section 7.2 of the Plan.
(iii)    “Cause” means “Cause” as defined in any active employment agreement between the Participant and the Company or any Subsidiary or Affiliate, as applicable, or, in the absence of any such definition, means the occurrence of any one of the following events: (i) fraud, personal dishonesty, embezzlement or acts of gross negligence or gross misconduct on the part of the Participant in the course of his or her employment or services, (ii) the Participant’s engagement in conduct that is materially injurious to the Company, a Subsidiary or an Affiliate, (iii) the Participant’s conviction by a 

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court of competent jurisdiction of, or pleading “guilty” or “no contest” to, (x) a felony or (y) any other criminal charge (other than minor traffic violations) which could reasonably be expected to have a material adverse impact on the Company’s or a Subsidiary’s or an Affiliate’s reputation or business; (iv) public or consistent drunkenness by the Participant or his or her illegal use of narcotics which is, or could reasonably be expected to become, materially injurious to the reputation or business of the Company, a Subsidiary or an Affiliate or which impairs, or could reasonably be expected to impair, the performance of the Participant’s duties to the Company, a Subsidiary or an Affiliate; (v) willful failure by the Participant to follow the lawful directions of a superior officer; or (vi) the Participant’s continued and material failure to fulfill his or her employment obligations to the Company or any Subsidiary or Affiliate.
(iv)    “Competitive Action” means, either directly or indirectly, whether as an employee, consultant, independent contractor, partner, joint venturer or otherwise, (i) in any geographical area where the Company is engaged in business, engaging in or directing any business activities which are competitive with any business activities conducted by the Company in such geographical area, (ii) on behalf of any person or entity engaged in business activities competitive with the business activities of the Company, soliciting or inducing, or in any manner attempting to solicit or induce, any person employed by, or as an agent or producer of, the Company to terminate such person's employment or agency or producer relationship, as the case may be, with the Company, (iii) diverting, or attempting to divert, any person, concern or entity from doing business with the Company or attempting to induce any such person, concern or entity to cease being a customer of the Company, (iv) soliciting the business of the Company or (v) making use of, or attempting to make use of, the Company’s property or proprietary information, other than in the course of the performance of services to the Company or at the direction of the Company.  References to the Company in this definition shall include the Company and all Subsidiaries and Affiliates.
(v)    “Disability” means the inability of the Participant to continue to perform services for the Company or any Subsidiary or Affiliate, as applicable, on account of his or her total and permanent disability as determined by the Committee.
(vi)    “Ending Book Value Per Share” means the highest Book Value Per Share determined as of the end of each fiscal year in the Performance Period.
(vii)    “Good Reason” means “Good Reason” as defined in any active employment agreement between the Participant and the Company or any Subsidiary or Affiliate, as applicable, or, in the absence of any such definition, means the occurrence of any one of the following events, unless the Participant agrees in writing that such event shall not constitute Good Reason: (i) a material reduction in the Participant’s duties or responsibilities from those in effect immediately prior to a Change in Control; (ii) a material reduction in the Participant’s base salary below the levels in effect immediately prior to a Change in Control; or (iii) relocation of the Participant’s primary place of employment to a location more than fifty (50) miles from its location, and further from the Participant’s primary residence, immediately prior to a Change in Control; provided, however, that with respect to any Good Reason termination, the Company will be given not less than thirty (30) days’ written notice by the Participant (within sixty (60) days of the occurrence of the event constituting Good Reason) of the Participant’s intention to terminate the Participant’s employment for Good Reason, such notice to state in detail the particular act or acts or failure or failures to act that constitute the grounds on which the proposed termination for Good Reason is based, and such termination shall be effective at the expiration of such thirty (30) day notice period only if the Company has not fully cured such act or acts or failure or failures to act that give rise to Good Reason during such period.  Further notwithstanding any provision in this definition to the contrary, in order to constitute a termination for Good Reason, such termination must occur within six (6) months of the initial existence of the applicable condition.

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(viii)    “Increase in Book Value Per Share” means the amount, if any, by which the Ending Book Value Per Share exceeds Beginning Book Value Per Share for the Performance Period.
(ix)    “Misconduct” means the Participant’s engagement, during the Participant’s employment with the Company or any Subsidiary or any Affiliate, in an act which would, in the judgment of the Committee, constitute fraud that could be punishable as a crime, or embezzlement against either the Company, any Subsidiary or any Affiliate.
(x)    “Qualifying Termination” means the termination of the Participant’s employment with the Company and all Subsidiaries and Affiliates prior to the end of the Performance Period as a result of: (i) Disability or Retirement; (ii) an action by the Company or a Subsidiary or Affiliate, as applicable, for any reason other than Cause; or, (iii) following a Change in Control, an action by the Participant for Good Reason.
(xi)    “Retirement” means the Participant’s retirement from service with the Company and all Subsidiaries and Affiliates with the written consent of the Chairman of the Board of the Company or the Committee.
(xii)    “Settlement Date” means the date on which the value of the Performance Units is actually paid to the Participant.
[Signatures to appear on following page]
IN WITNESS WHEREOF, the parties have caused this Agreement to be executed effective as of January 1, 2015.
W. R. Berkley Corporation

By:__________________________
Name:
Title:

______________________________
Participant

Please indicate the name of the Participant’s beneficiary:

    
Name

The Participant may change his or her beneficiary hereunder only by written notice to the Company, which change will become effective only upon receipt by the Company during the Participant’s lifetime.

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