Document:

Exhibit 10.1

 

SECOND AMENDMENT

TO

FIFTH AMENDED AND RESTATED CREDIT AGREEMENT

 

This SECOND AMENDMENT TO FIFTH AMENDED AND RESTATED CREDIT AGREEMENT (this “Second Amendment”) dated as of December 10, 2014, is by and among SM ENERGY COMPANY, a corporation duly formed and existing under the laws of the State of Delaware (the “Borrower”); each of the Lenders that is a party hereto; and WELLS FARGO BANK, N.A., as administrative agent for the Lenders (in such capacity, together with its successors in such capacity, by operation of law or as otherwise provided herein, the “Administrative Agent”).

 

The parties hereto agree as follows:

 

RECITALS

 

(A)                               The Borrower, the Administrative Agent and the Lenders are party to that certain Fifth Amended and Restated Credit Agreement dated as of April 12, 2013 (as amended, supplemented, or otherwise modified, the “Credit Agreement”), pursuant to which the Lenders have made certain credit available to and on behalf of the Borrower; and

 

(B)                               The Borrower has requested, among other things, that (i) the Maturity Date be extended to December 10, 2019 effective as of the Second Amendment Effective Date (as defined below), (ii) the Borrowing Base be increased to $2,400,000,000.00 and (iii) certain other terms and provisions of the Credit Agreement be amended as more specifically provided for in this Second Amendment.

 

In consideration of the mutual covenants and agreements herein contained and of the loans, extensions of credit and commitments hereinafter referred to, the parties hereto agree as follows.

 

Section 1.                                           Defined Terms.  Each capitalized term that is defined in the Credit Agreement, but which is not defined in this Second Amendment, shall have the meaning ascribed such term in the Credit Agreement.  Unless otherwise indicated, all section references in this Second Amendment refer to the Credit Agreement.

 

Section 2.                                           Amendments.  In reliance on the representations, warranties, covenants and agreements contained in this Second Amendment, and subject to the satisfaction of the conditions precedent set forth in Section 4 hereof, the Credit Agreement shall be amended, effective as of the Second Amendment Effective Date in the manner provided in this Section 2.

 

2.1                               Additional Definitions.  Section 1.02 of the Credit Agreement shall be amended to add thereto, in alphabetical order, the definitions of “Anti-Corruption Laws”, “Sanctioned Country”, “Sanctioned Person” and “Sanctions” which shall read in full as follows:

 

 

“Anti-Corruption Laws”  means all laws, rules, and regulations of the United States of America that are applicable to Borrower or its Subsidiaries from time to time concerning or relating to bribery or corruption.

 

“Designated Jurisdiction” means any country or territory to the extent that such country or territory itself, or whose government, is the subject of any Sanction.

 

“Sanctioned Country” means, at any time, a country or territory which is the subject or target of any Sanctions.

 

“Sanctioned Person” means, at any time, (a) any Person listed in any sanctions-related list of designated Persons maintained by OFAC or the U.S. Department of State, (b) any Person operating, organized or resident in a Sanctioned Country or (c) any Person controlled by any such Person.

 

“Sanctions” means economic or financial sanctions or trade embargoes imposed, administered or enforced from time to time by the United States Government (including without limitation, OFAC), the United Nations Security Council, the European Union, Her Majesty’s Treasury or other relevant sanctions authority.

 

2.2                               Amended Definitions.  The definitions of “Applicable Margin”, “OFAC” and “Maturity Date”, contained in Section 1.02 of the Credit Agreement shall each be amended and restated in their entirety to read in full as follows:

 

“Applicable Margin” means, for any day, with respect to any ABR Loan or Eurodollar Loan, or with respect to any commitment fees payable hereunder, as the case may be, the rate per annum set forth in the Borrowing Base Utilization Grid below based upon the Borrowing Base Utilization Percentage then in effect:

 

Borrowing Base Utilization Grid

 

	
Borrowing Base
   Utilization
   Percentage
    	
 
    	
<25%
    	
 
    	
>25% <50%
    	
 
    	
>50% <75%
    	
 
    	
>75% <90%
    	
 
    	
>90%
    
	
Eurodollar   Loans
    	
 
    	
1.250%
    	
 
    	
1.500%
    	
 
    	
1.750%
    	
 
    	
2.000%
    	
 
    	
2.250%
    
	
ABR   Loans or Swingline Loans
    	
 
    	
0.250%
    	
 
    	
0.500%
    	
 
    	
.750%
    	
 
    	
1.000%
    	
 
    	
1.250%
    
	
Commitment   Fee Rate
    	
 
    	
0.300%
    	
 
    	
0.300%
    	
 
    	
0.350%
    	
 
    	
0.375%
    	
 
    	
0.375%
    

 

Each change in the Applicable Margin shall apply during the period commencing on the effective date of such change and ending on the date immediately preceding the effective date of the next such change, provided, however, that if at any time the Borrower fails to deliver a Reserve Report pursuant to Section 8.12(a), then until such time as the Reserve 

 

Second Amendment

To

SM Energy Company Fifth Amended and Restated Credit Agreement

 

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Report is delivered the “Applicable Margin” means the rate per annum set forth on the grid when the Borrowing Base Utilization Percentage is at its highest level.

 

“Maturity Date” means December 10, 2019.

 

“OFAC” means the Office of Foreign Assets Control of the United States Department of the Treasury.

 

2.3                               Amendment to Section 2.03 of the Credit Agreement.  Section 2.03 of the Credit Agreement shall be amended by inserting “(or transmit by electronic communication, if arrangements for doing so have been approved by the Administrative Agent)” immediately after “telephone”.

 

2.4                               Amendment to Section 2.09(b) of the Credit Agreement.  Section 2.09(b) of the Credit Agreement shall be amended by inserting “(or transmit by electronic communication, if arrangements for doing so have been approved by the Administrative Agent)” immediately after “telephone”.

 

2.5                               Amendment to Section 3.04(b) of the Credit Agreement.  Section 3.04(b) of the Credit Agreement shall be amended by inserting “(or transmit by electronic communication, if arrangements for doing so have been approved by the Administrative Agent)” immediately after “telephone (confirmed by telecopy or electronic mail)”.

 

2.6                               Amendment to Article VII of the Credit Agreement.  Article VII of the Credit Agreement shall be amended by inserting a new Section 7.21 which shall read in full as follows:

 

Section 7.21                             Anti-Corruption Laws and Sanctions.  Borrower and its Subsidiaries have implemented and maintain in effect policies and procedures designed to ensure compliance by the Borrower, its Subsidiaries and their respective directors, officers, employees and agents with Anti-Corruption Laws and applicable Sanctions, and Borrower, its Subsidiaries and their respective officers and employees and its Subsidiaries and their respective directors, officers, employees and agents, are in compliance with (i) the Trading with the Enemy Act, as amended, and each of the foreign assets control regulations of the United States Treasury Department (31 CFR, Subtitle B, Chapter V, as amended), and any other enabling legislation or executive order relating thereto, (ii) Anti-Corruption Laws and (iii) the PATRIOT Act in all material respects and have not violated any applicable Sanctions.  None of (a) any Loan Party, any Subsidiary or any of their respective directors, officers or employees, or (b) any agent of such Loan Party or any such Subsidiary that will act in any capacity in connection with or benefit from the credit facility established hereby, is a Sanctioned Person.  No Borrowing or Letter of Credit, and no use of the proceeds thereof by any Loan Party or any Subsidiary, will violate Anti-Corruption Laws or applicable Sanctions.

 

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2.7                               Amendment to Section 8.13(c) of the Credit Agreement.  Section 8.13(c) of the Credit Agreement shall be amended to insert “in Section 8.14(a)” immediately after the words “75% requirement”.

 

2.8                               Amendment to Section 9.05(g) of the Credit Agreement.  Section 9.05(g) of the Credit Agreement shall be amended and restated in its entirety to read in full as follows:

 

(g)                                          Investments (i) made by the Borrower in or to the other Loan Parties, and (ii) made by a Loan Party in or to the Borrower or any other Loan Party (or, in each case in the foregoing clauses (i) and (ii), in any Person which becomes, or is merged into, a Restricted Subsidiary and complies with Section 8.14(b) no later than five (5) Business Days after the date on which such Investment is made).

 

2.9                               Amendment to Article IX of the Credit Agreement.  Article IX of the Credit Agreement shall be amended by inserting new Sections 9.21  and 9.22 which shall read in full as follows:

 

Section 9.21 Sanctions. No Loan Party shall, directly or indirectly, use the proceeds of any Loan or Letter of Credit, or lend, contribute or otherwise make available such proceeds to any Subsidiary, joint venture partner or other individual or entity, to knowingly fund any activities of or business with any individual or entity, or in any Designated Jurisdiction that, at the time of such funding, is the subject of Sanctions, or in any other manner that will result in a violation by any individual or entity (including any individual or entity participating in the transaction, whether as Lender, Administrative Agent, Issuing Bank, or otherwise) of Sanctions or Anti-Corruption Laws.

 

Section 9.22 Anti-Corruption Laws. No Loan Party shall fail to conduct its businesses in compliance with applicable Anti-Corruption Laws in all material respects.

 

2.10                        Amendment to Section 11.04 of the Credit Agreement.  Section 11.04 of the Credit Agreement shall be amended by inserting “or by electronic communication” immediately after “telephone”.

 

2.11                        Amendment to Annex I.  Annex I to the Credit Agreement is hereby replaced in its entirety with Annex I attached hereto and Annex I attached hereto shall be deemed to be attached as Annex I to the Credit Agreement.  After giving effect to this Second Amendment and any Borrowing made on the Second Amendment Effective Date, (a) each Lender who holds Loans in an aggregate amount less than its Applicable Percentage (after giving effect to this Second Amendment) of all Loans shall advance new Loans which shall be disbursed to the Administrative Agent and used to repay Loans outstanding to each Lender who holds Loans in an aggregate amount greater than its Applicable Percentage of all Loans, (b) each Lender’s participation in each Letter of Credit, if any, shall be automatically adjusted to equal its Applicable Percentage (after giving effect to this Second Amendment) of the Aggregate Revolving Exposure and (c) such other adjustments shall be made as the Administrative Agent shall specify so that the Revolving Credit Exposure applicable to each Lender equals its Applicable Percentage (after giving effect to this Second Amendment) of the Aggregate

 

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Revolving Exposure of all Lenders.  The Administrative Agent may make such reallocations, disbursements and fund transfers amongst the Lenders as it deems appropriate to effectuate the amendments and other terms of this Second Amendment, including, without limitation, the replacement of Annex I to the Credit Agreement, and to otherwise adjust and/or reconcile their respective allocations of the Loans resulting therefrom; provided, that in no event shall any such disbursement, reallocation or fund transfer be considered an extinguishment, novation or retirement of the Indebtedness under the Loan Documents.  The Borrower hereby confirms and agrees that it shall be required to make any break-funding payments which may be required under Section 5.02 of the Credit Agreement resulting from the Loans and adjustments described in this Section 2.10.

 

Section 3.                                           Borrowing Base Redetermination.  For the period from and including the Second Amendment Effective Date to but excluding the next Redetermination Date, the amount of the Borrowing Base shall be equal to $2,400,000,000.00.  Notwithstanding the foregoing, the Borrowing Base may be subject to further adjustments from time to time pursuant to Section 2.07, Section 8.13(c), Section 9.02(i), Section 9.12, Section 9.17 or Section 9.18 of the Credit Agreement.  For the avoidance of doubt, the redetermination herein shall not constitute a Scheduled Redetermination or Interim Redetermination.

 

Section 4.                                           Conditions Precedent.  This Second Amendment shall be effective upon the date of the receipt by the Administrative Agent of the following documents and satisfaction of the other conditions provided in this Section 4, each of which shall be reasonably satisfactory to the Administrative Agent in form and substance (the “Second Amendment Effective Date”):

 

4.1                               Counterparts.  The Administrative Agent shall have received counterparts hereof duly executed by the Borrower and each Lender (or, in the case of any party as to which an executed counterpart shall not have been received, telegraphic, telex or other written confirmation from such party of execution of a counterpart hereof by such party).

 

4.2                               Upfront Fees.  The Borrower shall have paid to the Administrative Agent for the account of each Lender a one-time upfront fee in an aggregate amount equal to the sum of (a) with regards to each existing Lender under the Credit Agreement immediately prior to the Second Amendment Effective Date, 0.15% of the Commitment of such Lender to the extent such Commitment is less than or equal to each such Lender’s Commitment under the Credit Agreement immediately prior to the Second Amendment Effective Date plus (b) 0.50% of the Commitment of each Lender under the Credit Agreement solely on that portion of the Commitment of each such Lender under the Credit Agreement that exceeds each such Lender’s Commitment, if any, under the Credit Agreement immediately prior to the Second Amendment Effective Date.

 

4.3                               Fees and Expenses.  The Borrower shall have paid to the Administrative Agent any and all fees and expenses payable to the Administrative Agent pursuant to or in connection with this Second Amendment.

 

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4.4                               No Event of Default or Deficiency.  No Event of Default shall have occurred which is continuing and the Aggregate Revolving Credit Exposures shall not exceed the Aggregate Commitments.

 

4.5                               Organization/Existence/Authority Documents.  The Administrative Agent shall have received such documents and certificates as the Administrative Agent or its counsel may request relating to the organization, existence and good standing of the Borrower, the authorization of this Second Amendment and the transactions contemplated hereby, and any other legal matters relating to the Borrower and this Second Amendment.

 

4.6                               Opinions.  The Administrative Agent shall have received opinions of counsel to the Borrower favorably opining as to such matters as the Administrative Agent may reasonably request.

 

4.7                               Amendments to Loan Documents.  Borrower shall have executed and delivered to the Administrative Agent amendments to any Loan Documents, including, without limitation, each Security Instrument executed by the Borrower prior to the date hereof, sufficient to evidence the extension of the Maturity Date and any other matters the Administrative Agent may require.

 

4.8                               Notes.  The Administrative Agent and each Lender shall have received duly executed Notes payable to each Lender that has requested a Note in a principal amount equal to its Commitment (after giving effect to this Second Amendment), dated as of the Second Amendment Effective Date.

 

4.9                               Other Documents.  The Administrative Agent shall have received such other documents as the Administrative Agent or its counsel may reasonably request.

 

For purposes of determining satisfaction of the conditions specified in this Section 4, each Lender that has signed this Second Amendment shall be deemed to have consented to, approved or accepted or to be satisfied with, each document or other matter required under this Section 4 to be consented to or approved by or acceptable or satisfactory to a Lender unless the Administrative Agent shall have received notice from such Lender prior to the Second Amendment Effective Date specifying its objection thereto.  The Administrative Agent shall notify Borrower and each Lender of the Second Amendment Effective Date and such notice shall be conclusive and binding.

 

Section 5.                                           Reaffirm Existing Representations and Warranties.  The Borrower hereby (a) acknowledges the terms of this Second Amendment; (b) ratifies and affirms its obligations under, and acknowledges its continued liability under, each Loan Document to which it is a party and agrees that each Loan Document to which it is a party remains in full force and effect as expressly amended hereby; and (c) represents and warrants to the Lenders that, as of the date hereof, after giving effect to the terms of this Second Amendment: (i) all of the representations and warranties contained in each Loan Document to which the Borrower is a party are true and correct in all material respects as though made on and as of the Second Amendment Effective Date (unless made as of a specific earlier date, in which case, such representation or warranty

 

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was true and correct in all material respects as of such date or qualified by materiality, in which case such representation or warranty shall be true and correct as of the applicable date); (ii) no Default or Event of Default has occurred and is continuing and the Aggregate Revolving Credit Exposures do not, and will not after giving effect to this Second Amendment, exceed the Borrowing Base; (iii) since the date of the most recent balance sheet delivered pursuant to Section 8.01(a) of the Credit Agreement, no event or events have occurred which individually or in the aggregate could reasonably be expected to have a Material Adverse Effect; (iv) the execution, delivery and performance by the Borrower of this Second Amendment are within Borrower’s corporate powers, have been duly authorized by all necessary corporate action, require no consent or approval of, or filing with, any governmental body, agency or official and do not violate any provision of applicable law or any material agreement binding upon Borrower or any other Loan Party; and (v) this Second Amendment constitutes the valid and binding obligation of the Borrower enforceable in accordance with its terms, except as (A) the enforceability thereof may be limited by bankruptcy, insolvency, reorganization, moratorium or similar laws affecting creditor’s rights generally, and (B) the availability of equitable remedies may be limited by equitable principles of general application, regardless of whether considered in a proceeding in equity or at law.

 

Section 6.                                           Post-Closing Covenant.

 

6.1                               No later than the date which is sixty (60) days after the Second Amendment Effective Date, the Administrative Agent shall have received from the Borrower (i) such duly executed counterparts (in such number as may be requested by the Administrative Agent) of amendments to existing Mortgages (and such other amendments, agreements, and other writings including, without limitation, UCC-1 financing statements, and tax affidavits, if any, required) which shall be sufficient to evidence the extension of the Maturity Date and (ii) any other documents, notices, correspondence, agreements and instruments reasonably requested by the Administrative Agent with respect to such amendments.

 

6.2                               At the request of the Borrower, the Administrative Agent and the Lenders hereby agree that, in connection with the documents required to be delivered to the Administrative Agent pursuant to Section 6.1 of this Second Amendment, (i) the Borrower shall be required to deliver local counsel legal opinions with respect to such documents which are to be recorded in the States of North Dakota, New Mexico and Montana, and (ii) the Borrower shall not be required to provide any local counsel legal review of such documents which are to be recorded in the States of Arkansas, Louisiana, Texas, Oklahoma or Wyoming.  The agreement in this Section 6.2 is a one-time agreement and neither the Lenders nor the Administrative Agent shall be obligated to grant any other agreements with respect to the Credit Agreement or any other Loan Document.

 

Section 7.                                           Miscellaneous.

 

7.1                               Confirmation.  The provisions of the Credit Agreement (as amended by this Second Amendment) shall remain in full force and effect in accordance with its terms following the effectiveness of this Second Amendment.  This Second Amendment shall constitute a Loan Document.

 

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7.2                               FATCA.  For purposes of determining withholding Taxes imposed under FATCA, from and after the Second Amendment Effective Date, Borrower and the Administrative Agent shall treat (and Lenders hereby authorize 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).

 

7.3                               No Waiver.  Neither the execution by the Administrative Agent or the Lenders of this Second Amendment, nor any other act or omission by the Administrative Agent or the Lenders or their officers in connection herewith, shall be deemed a waiver by the Administrative Agent or the Lenders of any Defaults or Events of Default which may exist, which may have occurred prior to the date of the effectiveness of this Second Amendment or which may occur in the future under the Credit Agreement and/or the other Loan Documents.  Similarly, nothing contained in this Second Amendment shall directly or indirectly in any way whatsoever either: (a) impair, prejudice or otherwise adversely affect the Administrative Agent’s or the Lenders’ right at any time to exercise any right, privilege or remedy in connection with the Loan Documents with respect to any Default or Event of Default, (b) except as provided herein, amend or alter any provision of the Credit Agreement, the other Loan Documents, or any other contract or instrument, or (c) constitute any course of dealing or other basis for altering any obligation of the Borrower or any right, privilege or remedy of the Administrative Agent or the Lenders under the Credit Agreement, the other Loan Documents, or any other contract or instrument.  Nothing in this Second Amendment shall be construed to be a consent by the Administrative Agent or the Lenders to any Default or Event of Default.  Each reference in the Credit Agreement to “this Agreement”, “hereunder”, “hereof”, “herein” or any other word or words of similar import shall mean and be a reference to the Credit Agreement as amended hereby, and each reference in any other Loan Document to the Credit Agreement or any word or words of similar import shall be and mean a reference to the Credit Agreement as amended hereby.

 

7.4                               Counterparts.  This Second Amendment may be executed in counterparts (and by different parties hereto on different counterparts), each of which shall constitute an original, but all of which when taken together shall constitute a single contract.  Delivery of an executed signature page to this Second Amendment by facsimile transmission or other electronic transmission shall be as effective as delivery of a manually executed counterpart of this Second Amendment.

 

7.5                               Successors and Assigns.  This Second Amendment shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns.

 

7.6                               Payment of Expenses.  In accordance with Section 12.03 of the Credit Agreement, the Borrower agrees to pay or reimburse the Administrative Agent for all of its reasonable out-of-pocket expenses incurred in connection with this Second Amendment, any other documents prepared in connection herewith and the transactions contemplated hereby, including, without limitation, the reasonable and documented fees and disbursements of counsel to the Administrative Agent.

 

7.7                               Severability.  Any provision of this Second Amendment held to be invalid, illegal or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of

 

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such invalidity, illegality or unenforceability without affecting the validity, legality and enforceability of the remaining provisions hereof or thereof; and the invalidity of a particular provision in a particular jurisdiction shall not invalidate such provision in any other jurisdiction.

 

7.8                               No Oral Agreement.  This Second Amendment, the Credit Agreement and the other Loan Documents and any separate letter agreements with respect to fees payable to the Administrative Agent constitute the entire contract among the parties hereto relating to the subject matter hereof and thereof and supersede any and all previous agreements and understandings, oral or written, relating to the subject matter hereof and thereof.  This Second Amendment, the Credit Agreement and the other Loan Documents represent the final agreement among the parties hereto and thereto 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.

 

7.9                               Governing Law.  THIS SECOND AMENDMENT (INCLUDING, BUT NOT LIMITED TO, THE VALIDITY AND ENFORCEABILITY HEREOF) SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

 

[Signature Pages to Follow]

 

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

 

	
BORROWER:
    	
SM   ENERGY COMPANY
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   A. Wade Pursell
    
	
 
    	
 
    	
A.   Wade Pursell
    
	
 
    	
 
    	
Executive   Vice President and Chief
    
	
 
    	
 
    	
Financial   Officer
    

 

[SIGNATURE PAGE TO SECOND AMENDMENT TO 
 FIFTH AMENDED AND RESTATED CREDIT AGREEMENT — SM ENERGY COMPANY]

 

 

	
AGENTS   AND LENDERS:
    	
WELLS   FARGO BANK, NATIONAL
    
	
 
    	
ASSOCIATION,   Individually and as
    
	
 
    	
Administrative   Agent
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Sarah Thomas
    
	
 
    	
Name:
    	
Sarah   Thomas
    
	
 
    	
Title:
    	
Vice   President
    

 

[SIGNATURE PAGE TO SECOND AMENDMENT TO

FIFTH AMENDED AND RESTATED CREDIT AGREEMENT — SM ENERGY COMPANY]

 

 

	
 
    	
BANK   OF AMERICA, N.A., Individually and as
    
	
 
    	
Co-Syndication   Agent
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Ronald E. McKaig
    
	
 
    	
Name:
    	
Ronald   E. McKaig
    
	
 
    	
Title:
    	
Managing   Director
    

 

[SIGNATURE PAGE TO SECOND AMENDMENT TO

FIFTH AMENDED AND RESTATED CREDIT AGREEMENT — SM ENERGY COMPANY]

 

 

	
 
    	
JPMORGAN   CHASE BANK, N.A., Individually
   and as Co-Syndication Agent
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Ryan Fuessel
    
	
 
    	
Name:
    	
Ryan   Fuessel
    
	
 
    	
Title:
    	
Authorized   Signor
    

 

[SIGNATURE PAGE TO SECOND AMENDMENT TO

FIFTH AMENDED AND RESTATED CREDIT AGREEMENT — SM ENERGY COMPANY]

 

 

	
 
    	
COMPASS   BANK, Individually and as
    
	
 
    	
Co-Documentation   Agent
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Ann Van Wagener
    
	
 
    	
Name:
    	
Ann   Van Wagener
    
	
 
    	
Title:
    	
Senior   Vice President
    

 

[SIGNATURE PAGE TO SECOND AMENDMENT TO

FIFTH AMENDED AND RESTATED CREDIT AGREEMENT — SM ENERGY COMPANY]

 

 

	
 
    	
COMERICA   BANK, Individually and as
    
	
 
    	
Co-Documentation   Agent
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Brandon M. White
    
	
 
    	
Name:
    	
Brandon   M. White
    
	
 
    	
Title:
    	
Assistant   Vice President
    

 

[SIGNATURE PAGE TO SECOND AMENDMENT TO

FIFTH AMENDED AND RESTATED CREDIT AGREEMENT — SM ENERGY COMPANY]

 

 

	
 
    	
BARCLAYS   BANK PLC
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Ronnie Glenn
    
	
 
    	
Name:
    	
Ronnie   Glenn
    
	
 
    	
Title:
    	
Vice   President
    

 

[SIGNATURE PAGE TO SECOND AMENDMENT TO

FIFTH AMENDED AND RESTATED CREDIT AGREEMENT — SM ENERGY COMPANY]

 

 

	
 
    	
ROYAL   BANK OF CANADA
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Evans Swann, Jr.
    
	
 
    	
Name:
    	
Evans   Swann, Jr.
    
	
 
    	
Title:
    	
Authorized   Signatory
    

 

[SIGNATURE PAGE TO SECOND AMENDMENT TO

FIFTH AMENDED AND RESTATED CREDIT AGREEMENT — SM ENERGY COMPANY]

 

 

	
 
    	
BOKF, NA DBA BANK OF OKLAHOMA
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Parker Heikes
    
	
 
    	
Name:
    	
Parker   Heikes
    
	
 
    	
Title:
    	
Vice   President
    

 

[SIGNATURE PAGE TO SECOND AMENDMENT TO

FIFTH AMENDED AND RESTATED CREDIT AGREEMENT — SM ENERGY COMPANY]

 

 

	
 
    	
SANTANDER   BANK, N.A.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Aidan Lanigan
    
	
 
    	
Name:
    	
Aidan   Lanigan
    
	
 
    	
Title:
    	
Senior   Vice President
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Puiki Lok
    
	
 
    	
Name:
    	
Puiki   Lok
    
	
 
    	
Title:
    	
Vice   President
    

 

[SIGNATURE PAGE TO SECOND AMENDMENT TO

FIFTH AMENDED AND RESTATED CREDIT AGREEMENT — SM ENERGY COMPANY]

 

 

	
 
    	
CAPITAL   ONE, NATIONAL ASSOCIATION
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Victor Ponce de Leon
    
	
 
    	
Name:
    	
Victor   Ponce de Leon
    
	
 
    	
Title:
    	
Vice   President
    

 

[SIGNATURE PAGE TO SECOND AMENDMENT TO

FIFTH AMENDED AND RESTATED CREDIT AGREEMENT — SM ENERGY COMPANY]

 

 

	
 
    	
DEUTSCHE   BANK TRUST COMPANY
   AMERICAS
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Juan-Jose Mejia
    
	
 
    	
Name:
    	
Juan-Jose   Mejia
    
	
 
    	
Title:
    	
Director
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Laureline DeLichana
    
	
 
    	
Name:
    	
Laureline   DeLichana
    
	
 
    	
Title:
    	
Vice   President
    

 

[SIGNATURE PAGE TO SECOND AMENDMENT TO

FIFTH AMENDED AND RESTATED CREDIT AGREEMENT — SM ENERGY COMPANY]

 

 

	
 
    	
GOLDMAN   SACHS BANK USA
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Rebecca Kratz
    
	
 
    	
Name:
    	
Rebecca   Kratz
    
	
 
    	
Title:
    	
Authorized   Signatory
    

 

[SIGNATURE PAGE TO SECOND AMENDMENT TO

FIFTH AMENDED AND RESTATED CREDIT AGREEMENT — SM ENERGY COMPANY]

 

 

	
 
    	
KEYBANK   NATIONAL ASSOCIATION
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   George McKean
    
	
 
    	
Name:
    	
George   McKean
    
	
 
    	
Title:
    	
Senior   Vice President
    

 

[SIGNATURE PAGE TO SECOND AMENDMENT TO

FIFTH AMENDED AND RESTATED CREDIT AGREEMENT — SM ENERGY COMPANY]

 

 

	
 
    	
THE   BANK OF NOVA SCOTIA
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Alan Dawson
    
	
 
    	
Name:
    	
Alan   Dawson
    
	
 
    	
Title:
    	
Director
    

 

[SIGNATURE PAGE TO SECOND AMENDMENT TO

FIFTH AMENDED AND RESTATED CREDIT AGREEMENT — SM ENERGY COMPANY]

 

 

	
 
    	
U.S.   BANK NATIONAL ASSOCIATION
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   John C. Lozano
    
	
 
    	
Name:
    	
John   C. Lozano
    
	
 
    	
Title:
    	
Vice   President
    

 

[SIGNATURE PAGE TO SECOND AMENDMENT TO 
 FIFTH AMENDED AND RESTATED CREDIT AGREEMENT — SM ENERGY COMPANY]

 

 

ANNEX I

LIST OF COMMITMENTS

 

	
Name of Lender
    	
 
    	
Applicable Percentage
    	
 
    	
Commitment
    	
 
    
	
Wells Fargo Bank, National Association 
    	
 
    	
9.666666667
    	
%
    	
$
    	
145,000,000.01
    	
 
    
	
Bank of America, N.A. 
    	
 
    	
9.666666667
    	
%
    	
$
    	
145,000,000.00
    	
 
    
	
JP Morgan Chase Bank, N.A. 
    	
 
    	
9.666666667
    	
%
    	
$
    	
145,000,000.00
    	
 
    
	
Compass Bank 
    	
 
    	
8.222222222
    	
%
    	
$
    	
123,333,333.33
    	
 
    
	
Barclays Bank PLC
    	
 
    	
8.222222222
    	
%
    	
$
    	
123,333,333.33
    	
 
    
	
Royal Bank of Canada 
    	
 
    	
8.222222222
    	
%
    	
$
    	
123,333,333.33
    	
 
    
	
Comerica Bank
    	
 
    	
6.666666667
    	
%
    	
$
    	
100,000,000.00
    	
 
    
	
BOKF, NA dba Bank of Oklahoma
    	
 
    	
5.333333333
    	
%
    	
$
    	
80,000,000.00
    	
 
    
	
Santander Bank, N.A.
    	
 
    	
5.333333333
    	
%
    	
$
    	
80,000,000.00
    	
 
    
	
Capital One, National Association
    	
 
    	
5.333333333
    	
%
    	
$
    	
80,000,000.00
    	
 
    
	
Deutsche Bank Trust Company Americas
    	
 
    	
5.333333333
    	
%
    	
$
    	
80,000,000.00
    	
 
    
	
KeyBank National Association 
    	
 
    	
5.333333333
    	
%
    	
$
    	
80,000,000.00
    	
 
    
	
The Bank of Nova Scotia 
    	
 
    	
5.333333333
    	
%
    	
$
    	
80,000,000.00
    	
 
    
	
U.S. Bank National Association 
    	
 
    	
5.333333333
    	
%
    	
$
    	
80,000,000.00
    	
 
    
	
Goldman Sachs Bank USA
    	
 
    	
2.333333333
    	
%
    	
$
    	
35,000,000.00
    	
 
    
	
TOTAL
    	
 
    	
100.00
    	
%
    	
$
    	
1,500,000,000
    	
 
    

 

[ANNEX I TO SECOND AMENDMENT TO 
 FIFTH AMENDED AND RESTATED CREDIT AGREEMENT — SM ENERGY COMPANY]Exhibit 10.1

 

December 16, 2014

 

 

 

Dear David:

 

This letter (this “Letter”) is intended to
confirm our discussions regarding your separation from service as an employee of XO Group Inc. (the “Company”)
as a result of the successful completion of your transitional duties and anticipated resignation from your position as Co-Founder,
all as identified in that certain employment letter agreement with the Company dated April 16, 2014 (the “Prior Agreement”).

 

1.                 
Separation from Service as Employee; Continued Service as Director.

 

(a)               
Separation from Service as Employee. As discussed, effective as of December 15, 2014 (the “Separation Date”),
you will step down as Co-Founder, and will separate from service as an employee of the Company and from all other officer and employee
positions with the Company and any of its affiliates. In connection with the foregoing, you will be entitled to the payments identified
in Paragraph 2 below.

 

(b)              
Continued Service as a Director. As also discussed, your resignation as an employee shall not also constitute a resignation
from the Board of Directors of the Company (the “Board”), and as such, effective as of the Separation Date you
will be a non-employee member of the Board. Accordingly, this Letter confirms that beginning immediately upon your Separation Date,
you will be compensated in the same amount and in the manner as all other current non-employee members of the Board are compensated
(e.g., quarterly fees paid in arrears, including a prorated portion of such fees for the calendar quarter in which the Separation
Date occurs). In connection with your Board membership, you shall continue to have access to your “the Knot” and “XO
Group” email accounts, and any other intellectual property that is relevant to your position in your capacity as a member
of the Board.

 

2.                 
Separation Payments and Benefits.

 

(a)               
Separation Payments and Benefits. In consideration for your successful completion of your transition duties and for
your execution, delivery, and non-revocation of a release of claims in the form attached hereto as Exhibit 1 (the “Release”),
you will be entitled to the following payments and benefits:

 

(i)                
Notwithstanding any provision of the Company’s annual bonus plan for 2014 requiring participants therein to remain
employed through the date annual bonuses would be paid, in 2015, 75% in shares of Common Stock of the Company (“Company
Stock”), and 25% in cash, you will be entitled to receive the full amount of the annual bonus the Company has estimated
in good faith you would otherwise be paid in 2015, equal to $443,113 (the “2014 Bonus Payment”). The 2014 Bonus
Payment will be paid to you, in cash, within ten (10) business days following your Separation Date.

 

    	

    	 

    

 

 

(ii)              
Notwithstanding any provision of the Company’s 2009 Stock Incentive Plan and the applicable restricted stock award
agreement granted thereunder, effective on the Separation Date, (x) 6,875 shares of restricted Company Stock that otherwise would
have become vested in February 2015, and (y) 8,333 shares of restricted Company Stock that otherwise would have become vested in
March 2015, shall in each case become immediately vested. For the avoidance of doubt, except as provided in the immediately preceding
sentence, all unvested and outstanding awards of restricted Company Stock that you currently hold shall terminate immediately upon
your Separation Date.

 

(iii)            
If you timely elect continuation coverage (with respect to your coverage and/or any eligible dependent coverage) under the
Consolidated Omnibus Budget Reconcili-ation Act of 1986 (“COBRA Continuation Coverage”) with respect to the
Company’s group health insurance plan, then the Company shall pay you, on a monthly basis, the monthly cost of COBRA Continuation
Coverage during the twenty-four (24)-month period following the Separation Date (or until such earlier date, if any, on which you
obtain comparable health insurance coverage from another employer).

 

(b)              
Accrued Rights. Within ten (10) business days after your Separation Date you will receive payment of all unpaid base
salary accrued through the Separation Date, and shall receive reimbursement of all business expenses, if any, you may have incurred
in accordance with the Company’s policy as currently in effect, and such reimbursements shall be paid in accordance with
the applicable provisions of your Prior Agreement as set forth therein under the heading “Compliance With Section 409A
of the Internal Revenue Code.”

 

3.                 
Indemnification. As a former officer of the Company, you shall be entitled to all rights to indemnification that
currently apply to officers under the Company’s charter and bylaws with respect to your period of service with the Company
as an officer and, without limiting the generality of the foregoing, the Company shall maintain rights to indemnification and coverage
under officers’ liability insurance for actions and omissions occurring prior to the Separation Date on terms no less favorable
than those in effect from time to time for officers of the Company generally.

 

4.                 
Non-Disclosure, Non-Competition and Non-Solicitation Agreement. You hereby acknowledge and agree that you shall continue
to bound by the terms of the Non-Disclosure, Non-Competition and Non-Solicitation Agreement dated November 5, 2008 between you
and the Company (the “Restrictive Covenants Agreement”). This Paragraph 4 and the Restrictive Covenants
Agreement shall survive the termination or expiration of this Letter. For the avoidance of doubt, the two (2)-year periods referenced
in Sections 3, 4 and 5 of the Restrictive Covenants Agreement shall begin to run beginning on the Separation Date. For the avoidance
of doubt, however, you shall be free to (x) pursue and perform other business opportunities and develop other projects outside
of your duties under this Letter and (y) make reference to yourself as a co-founder of the Company, the knot, the bump and/or the
nest; subject at all times to your continued compliance with the Restrictive Covenants Agreement.

 

    	-2-

    	 

    

 

 

5.                 
Withholding. The Company may withhold from any amounts payable to you such federal, state, local, or foreign taxes
as shall be required to be withheld pursuant to any applicable law or regulation. No additional deductions shall be made from such
payments for any 401(k) plan or deferred compensation plan.

 

6.                 
Governing Law. This Letter shall be construed and enforced in accordance with, and governed by, the laws of the State
of New York, without regard to its choice of law rules. You and the Company hereby irrevocably consent to exclusive personal jurisdiction
and venue in the state and federal courts in the State of New York, County of New York. For the purpose of any legal proceeding
relating to or arising under this Release or relating to the termination of your employment with the Company, as contemplated under
this Letter.

 

7.                 
Entire Agreement. This Letter, together with the Release and the Restrictive Covenants Agreement, constitutes the
entire understanding between you and the Company with respect to the subject matter hereof.

 

8.                 
Amendments. The terms of this Letter may be changed, modified, or discharged only by an instrument in writing signed
by the parties hereto.

 

9.                 
Severability. If any section of this Letter is determined to be void, voidable, or unenforceable, it shall have no
effect on the remainder of this Letter, which shall remain in full force and effect.

 

10.             
No Assignment. This Letter may not be assigned by either party, and shall be binding on the parties and their successors.

 

11.             
Counterparts. This Letter may executed in any number of counterparts, each of which shall be deemed an original,
and all of which together shall constitute one and the same instrument.

 

12.             
Code Section 409A. The provisions of your Prior Agreement as set forth therein under the heading “Compliance
With Section 409A of the Internal Revenue Code,” to the extent applicable to the provisions of this Letter, are incorporated
by reference and made a part hereof.

 

[Signature Page Follows]

 

    	-3-

    	 

    

 

 

Very truly yours,

 

XO GROUP INC.

 

 

By:  /s/ Michael Steib

Name: Michael Steib

Title: Chief Executive Officer

 

 

Accepted and agreed:

 

 

 

/s/ David Liu____________________

David Liu

 

    [Signature Page to
    Liu Separation Letter]	 

    	 

    

 

Exhibit 1

 

Form of Release

 

RELEASE

 

This release (this “Release”)
is being delivered by you pursuant to the letter agreement between you and XO Group Inc. (collectively with its current or future
subsidiaries, affiliates, and/or successors, the “Company”) dated December 16, 2014 (the “Separation
Letter”).

 

1.                 
Termination of Employment. You acknowledge that your employment with the Company terminated effective as of the close
of business on December 15, 2014 (the “Separation Date”). The Separation Date shall be the termination date
of your employment for purposes of participation in and coverage under all employee benefit plans and programs sponsored by or
through the Company and its partnerships, joint ventures, and related business entities, and with respect to each of them, their
predecessors, successors and assigns, employee benefit plans or funds, and with respect to each such entity, all of its or their
past, present and/or future directors, officers, attorneys, fiduciaries, agents, trustees, administrators, employees and assigns,
whether acting on behalf of the Company or in their individual capacities (collectively the “Company Entities”),
except as otherwise provided herein, or under the terms of the benefit plans, or as required by law. As soon as practicable following
the Separation Date, but in no event later than the time period required under applicable law, you will be paid for all of your
earned but unpaid salary as of the Separation Date and for any business expenses incurred as of the Separation Date and properly
submitted in accordance with Company policy. In addition, you may be entitled to continue medical and health benefits under the
Consolidated Omnibus Budget Reconciliation Act of 1985 (“COBRA”), subject to the eligibility and other requirements
of COBRA.

 

2.                 
Severance Compensation. In consideration of your executing this Release and your satisfaction of such terms and conditions
set forth herein and in the Separation Letter, the Company shall compensate you as described in paragraph 2(a) of the Separation
Letter. As a condition to receiving such compensation, you must (a) complete an orderly, satisfactory and thorough turnover
of all the Company’s files, data and information pertaining to all deals, business and financial models, data and tools you
worked on while employed by the Company through the Separation Date (except for any information reasonably required for your to
retain in order to perform your duties as identified in the Separation Letter, subject at all times to your continued compliance
with your obligations to maintain all confidential information pursuant to the Separation Letter and the other agreements referenced
therein) and (b) return to the Company all property in any form whatsoever (including but not limited to files, data, discs, drives,
laptops, or any storage device for any data) containing information that pertains in any manner to the Company Entities’
business, whether stored on Company equipment or otherwise, which is or was under your custody or control. You hereby acknowledge
and agree that, other than as specifically set forth in this Release, you are not due any compensation from the Company, including
compensation for unpaid salary, bonus, unpaid commission, severance, accrued or unused vacation or sick time. You affirm that you
have been provided with any and all leave requested under the Family and Medical Leave Act. You further affirm that you have disclosed
to the Company any information you have concerning any conduct involving the Company, and any of its affiliates or any of their
respective employees that you have any reason to believe may be fraudulent or unlawful.

 

    	

    	 

    

 

 

3.                 
Release of Claims. By signing this Release, you, for yourself and for your heirs, executors, administrators, trustees,
legal representatives and assigns (hereinafter referred to collectively as “Releasors”), forever release and
discharge the Company Entities from any and all claims, demands, causes of action, fees and liabilities of any kind whatsoever,
whether known or unknown, which you ever had, now have, or may have against any of the Company Entities by reason of any act, omission,
transaction, practice, plan, policy, procedure, conduct, occurrence, or other matter, up to and including the date hereof, including
but not limited to claims for, under or based on:

 

(a)               
any claims for wrongful termination, retaliation, detrimental reliance, defamation, invasion of privacy, intentional infliction
of emotional distress, or any other common law claims;

 

(b)              
any claims for the breach of any written, implied or oral contract between Employee and Company, including but not limited
to any contract of employment or investment;

 

(c)               
any claims of discrimination, harassment or retaliation based on such things as age, national origin, ancestry, race, religion,
sex, sexual orientation, marital status, or physical or mental disability or medical condition;

 

(d)              
any claims for payments of any nature, including but not limited to wages, overtime pay, vacation pay, severance pay, commissions,
bonuses and benefits or the monetary equivalent of benefits, but not including any claims for unemployment or workers’ compensation
benefits (it being understood that the Company shall not contest your application for unemployment insurance or workers’
compensation benefits), or for the consideration being provided to you pursuant to paragraph 2 of this Release;

 

(e)               
all claims that you have or that may arise under the common law and all federal, state and local statutes, ordinances, rules,
regulations and orders, including but not limited to any claim or cause of action based on the Fair Labor Standards Act, the Equal
Pay Act, the Sarbanes Oxley Act of 2002, Title VII of the Civil Rights Act of 1964, the Age Discrimination in Employment Act (“ADEA”),
the Family and Medical Leave Act, the Americans with Disabilities Act, the Civil Rights Acts of 1866, 1871 and 1991, the Rehabilitation
Act of 1973, the National Labor Relations Act, the Employee Retirement Income Security Act of 1974, the Worker Adjustment and Retraining
Notification Act, the Vietnam Era Veterans’ Readjustment Assistance Act of 1974, the Uniformed Services Employment and Reemployment
Rights Act, Executive Order 11246, the New York Labor Law, the New York Occupational Safety and Health Laws, the New York Equal
Pay Law, the New York State Human Rights Law, the New York Civil Rights Act, the New York Worker Adjustment and Retraining Notification
Act, the New York Worker’s Compensation Retaliation Law, the New York City Administrative Code, including the New York City
Human Rights Act, any and all New York “Whistleblower” statutes and laws, and any other state laws governing employee
rights, as each of them has been or may be amended; and

 

    	-2-

    	 

    

 

 

(f)               
any claims for attorneys’ fees, costs, disbursements or the like.

 

(g)              
Notwithstanding the foregoing, the release set forth in this paragraph 3 shall not extend to: (i) those rights which as
a matter of law cannot be waived; (ii) claims, causes of action or demands of any kind that may arise after the date hereof
and that are based on acts or omissions occurring after such date; (iii) claims for indemnification or contribution under any operative
documents of the Company Entities, or claims for coverage under any directors and officers insurance policy applicable to you;
(iv) claims under COBRA; (v) claims with respect to accrued, vested benefits or payments under any employee benefit or equity plan
of the Company; and (vi) claims to enforce the terms of this Release.

 

4.                 
Cooperation. You agree to make yourself reasonably available to cooperate with the Company’s and its attorneys’
reasonable requests for cooperation in connection with any matter that you worked on during your employment with the Company or
with any investigation of any claims against the Company. You understand and agree that such reasonable cooperation may include,
but shall not be limited to, making yourself available to the Company and its attorneys upon reasonable notice for interviews and
factual investigations; appearing at the Company’s request to give testimony; volunteering to the Company pertinent information;
and turning over all relevant documents to the Company that are or may come into your possession. The Company will reimburse you
for all reasonable out-of-pocket expenses incurred by you in connection with such cooperation. Without limiting the generality
of the foregoing, to the extent that the Company seeks your assistance, the Company will provide you with reasonable advance notice
of its need for you and will coordinate with you the time and place at which your assistance will be provided with the goal of
minimizing the impact of such assistance on any other pre-scheduled business or personal commitment that you may have. Further,
the Company will reimburse you, in accordance with the Company’s policy, for all reasonable out-of-pocket travel and other
expenses that you incur as a result of your cooperation pursuant to this paragraph 4, including reasonable attorneys’ fees,
if necessary. Your cooperation described in this paragraph 4 shall be subject to the maintenance of the indemnification and directors’
and officers’ liability insurance policy described in your Separation Letter.

 

5.                 
No Legal Action. You agree, to the maximum extent permitted by law, that you will not, at any time hereafter, commence,
maintain, prosecute in as a party, or permit to be filed by any other person on your behalf, any action or proceeding of any kind
(judicial or administrative) (on your own behalf and/or on behalf of any other person and/or on behalf of or as a member of any
alleged class of person) in any court or agency, or participate in any action, suit or proceeding (unless compelled by legal process
or court order), against the Company Entities with respect to any claim released pursuant to this Release. You also warrant and
represent that as of the date you sign this Release, you have not taken or engaged in any of the acts described in the foregoing
sentence. If, notwithstanding the foregoing promises, you violate this paragraph, you shall be required, to the maximum extent
permitted by law, to indemnify and hold harmless the Company Entities from and against any and all demands, assessments, judgments,
reasonable costs, damages, losses and liabilities, and reasonable attorneys’ fees and other expenses which directly result
from, or are incident to, such violation. Nothing in this Release shall be construed to prevent you from responding truthfully
to a valid subpoena, from filing a charge with, or participating in, any investigation conducted by a governmental agency including
EEOC, NLRB, and/or any state or local human rights agency, and/or responding as otherwise required by law. Nevertheless, by virtue
of the foregoing, you have waived any relief available to you under any of the claims or causes of action waived and released pursuant
to this Release. Nothing in this paragraph is intended or should be construed to apply to any legal action by you challenging the
validity of this Release under the Older Workers Benefit Protection Act with respect to your release of claims under the ADEA.

 

    	-3-

    	 

    

 

 

6.                 
Opportunity to Review. You are hereby advised to consult with an attorney prior to executing this Release. In that
connection, you acknowledge that you have had the opportunity to review this Release and, specifically, the release set forth in
paragraph 3, with an attorney of your choice prior to signing below. You also agree that you are under no obligation to consent
to the release and that you have entered into this Release freely and voluntarily.

 

7.                 
Time to Consider Release and Effective Date.

 

(a)               
You are also advised that you have twenty-one (21) days from the date this Release is delivered to you within which to consider
whether you will sign it; and that in the event you signed this Release prior to expiration of the 21st day, you did so of your
own free will and not as a result of any duress or coercion.

 

(b)              
If you sign this Release, you acknowledge that you understand that you may revoke this Release within seven (7) days after
you have signed it by notifying the Company in writing that you have revoked this Release. Such notice shall be addressed to the
Company’s General Counsel. This Release shall not be effective or enforceable in accordance with its terms until the seven
(7) day revocation period has expired. If you do not timely revoke it, this Release shall become effective automatically upon the
expiration of the revocation period (the “Effective Date”), which is the eighth (8th) calendar day after it
is executed.

 

(c)               
In the event that you do not accept this Release as set forth above, or in the event that you revoke this Release in the
manner set forth above, the terms of this Release shall immediately become null and void and the Company will have no obligation
to provide the payments and benefits set forth in paragraph 2 above.

 

8.                 
Non-Admission. This Release shall not in any way be construed as an admission by the Company or the Employee of any
liability for any reason, including, without limitation, based on any claim that the Company or the Employee has committed any
wrongful or discriminatory act.

 

9.                 
Non-Disclosure Agreement; Non-Disparagement.

 

(a)               
You hereby acknowledge, reaffirm and ratify your continuing obligations to the Company pursuant to the Employee Non-Disclosure,
Non-Competition and Invention Assignment Agreement (the “Non-Disclosure Agreement”).

 

    	-4-

    	 

    

 

 

(b)              
You covenant and agree that you shall not during the twelve (12) months after the Separation Date (the “Non-disparagement
Period”) make any communications with the intent to disparage the Company or interfere with the Company’s existing
or prospective business relationships that, in each case, is intended to, or can reasonably be expected to, materially damage the
Company. Notwithstanding the foregoing, nothing in this paragraph shall prevent you from (a) responding to incorrect, disparaging
or derogatory public statements to the extent necessary to correct or refute such public statements, or (b) making any truthful
statement (i) to the extent necessary in connection with any litigation, arbitration or mediation involving the Separation Letter,
including, but not limited to, the enforcement of this Release, or the Non-Disclosure Agreement, (ii) to the extent required by
law or by any court, arbitrator, mediator or administrative, judicial or legislative body (including any committee thereof) with
apparent jurisdiction or authority to order or require such person to disclose or make accessible such information, (iii) making
a normal comparative statement in the context of advertising, promotion or solicitation of customers, without reference to your
prior relationship with the Company, (iv) making any statements in the good faith performance of your duties to the Company, or
(v) rebutting any statements made by the Company Entities or any of their subsidiaries or their respective officers, directors,
employees or other service providers. In addition, during the Non-disparagement Period, the Company agrees that it will not, and
it will instruct its senior executive officers and directors not to, make any communications with the intent to disparage or encourage
or induce others to disparage you, provided, that the foregoing shall not prevent the Company or its officers, directors or employees
from: (a) responding to incorrect, disparaging or derogatory public statements to the extent necessary to correct or refute such
public statements, or (b) making any truthful statement (i) to the extent necessary in connection with any litigation, arbitration
or mediation involving the Separation, including, but not limited to, the enforcement of this Release, or the Non-Disclosure Agreement,
(ii) to the extent required by law or by any court, arbitrator, mediator or administrative, judicial or legislative body (including
any committee thereof) with apparent jurisdiction or authority to order or require such person to disclose or make accessible such
information, (iii) making a normal comparative statement in the context of advertising, promotion or solicitation of customers,
without reference to your prior relationship with the Company, or (iv) rebutting any statements made by you. For purposes of this
paragraph 9, the term “disparage” includes, without limitation, comments or statements to the press or to any individual
or entity with whom the Company or you have a business relationship, or any public statement, that in each case is intended to,
or can be reasonably expected to, damage the Company or you in connection with your then current or future employment or business
relationships.

 

The Company will make an internal and external
announcement about your departure in a form satisfactory to you (and mutually agreed to by you and the Company in form, substance,
and timing) that will be distributed by the Company (with drafts of such announcements attached hereto as Exhibit A). The internal
announcement will be distributed on the Separation Date and will be in the form contained in that certain press release dated as
of December 15, 2014, which release you and the Company mutually agreed upon prior to the Separation Date.

 

10.             
Disclaimer. Nothing in this Release shall preclude you from responding truthfully to a valid subpoena, a request
by a governmental agency in connection with any investigation it is conducting, or as otherwise required by law. You agree, however,
that in the event you are subpoenaed in any legal proceeding to give testimony or produce documents that in any way relate to your
employment with the Company you: (1) will provide prompt advance notice and a copy of any legal papers served on you to the Company’s
General Counsel, except as otherwise prohibited by law, and (2) will, except as required by law, make no disclosure until the Company
has had a reasonable opportunity to contest the disclosure, if it intends to do so.

 

    	-5-

    	 

    

 

 

11.             
Remedies For Breach Of Material Provisions Of Release. Any breach of the terms of paragraphs 3, 4, 5, or 9 of this
Release may constitute a material breach of this Release as to which the Company may seek all relief available under the law and
in equity (including but not limited to repayment of the severance paid to you under this Release) in a court of competent jurisdiction.
In addition, in the event of a material breach of paragraph 3, 4, 5, or 9 of this Release, or any of the provisions of the Non-Disclosure
Agreement (which shall continue in effect), all obligations of the Company to make payments or provide benefits pursuant to this
Release shall cease and become null and void.

 

12.             
Choice of Law and Forum. This Release shall be construed and enforced in accordance with, and governed by, the laws
of the State of New York, without regard to its choice of law provisions. You and the Company hereby irrevocably consent to exclusive
personal jurisdiction and venue in the state and federal courts in the State of New York, County of New York, for the purpose of
any legal proceeding relating to or arising under this Release or relating to the termination of your employment with the Company.

 

IN WITNESS WHEREOF, the undersigned has executed
this Release as of the 16th day of December, 2014.

 

CAUTION:

 

READ
BEFORE SIGNING. THIS RELEASE INCLUDES

A RELEASE OF ALL KNOWN AND UNKNOWN CLAIMS.

 

I HAVE READ ALL OF THIS RELEASE, INCLUDING, BUT NOT LIMITED
TO, THE RELEASE IN PARAGRAPH 3. I UNDERSTAND ALL PARAGRAPHS CONTAINED IN THIS RELEASE. I STATE THAT I AM SIGNING THIS RELEASE AS
MY OWN FREE ACT AND DEED.

 

_____________________________

David Liu

 

Dated: _______________________

 

 

    	-6-

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