Document:

FIRST AMENDMENT

 

TO

 

CREDIT AGREEMENT

 

DATED AS OF FEBRUARY 18, 2013

 

AMONG

 

EMERALD
OIL, INC.,

as Borrower,

 

The
guarantors PARTY HERETO,

 

Wells
Fargo Bank, N.A.,

as Administrative Agent,

 

and

 

The
Lenders Party Hereto

 

 

 

 

SOLE
BOOKRUNNER AND SOLE LEAD ARRANGER

 

WELLS
FARGO SECURITIES LLC

 

    	 

    	 

    

 

FIRST AMENDMENT TO CREDIT AGREEMENT

 

This First Amendment
to Credit Agreement (this “First Amendment”) dated as of February 18, 2013, is among Emerald Oil, Inc., a Montana
corporation (the “Borrower”), each of the undersigned guarantors (the “Guarantors”), each
Lender (as defined below) party hereto, and Wells Fargo Bank, N.A., as administrative agent for the Lenders (in such capacity,
together with its successors and assigns, the “Administrative Agent”).

 

RECITALS

 

A.The Borrower,
the Administrative Agent and the banks and other financial institutions from time to time party thereto (together with their respective
successors and assigns in such capacity, each as a “Lender”) have entered into that certain Credit Agreement
dated as of November 20, 2012 (as amended, restated, modified or supplemented from time to time until the date hereof, the “Credit
Agreement”).

 

B.The Borrower
has requested and each Lender has agreed to amend certain provisions of the Credit Agreement.

 

C.NOW, THEREFORE,
to induce the Administrative Agent and the Lenders to enter into this First Amendment and in consideration of the premises and
the mutual covenants herein contained, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged,
the parties hereto agree as follows:

 

Section
1.Definitions. Unless otherwise defined in this First Amendment, each capitalized term used in this First Amendment
has the meaning assigned to such term in the Credit Agreement. Unless otherwise indicated, all section references in this First
Amendment refer to sections of the Credit Agreement.

 

Section
2.Amendments to Credit Agreement.

 

2.1Section
1.02.

 

(a)Section
1.02 is hereby amended by deleting the defined terms “Agreement”, “Change of Control”, “Debt”
and “Preferred Stock Agreement” in their entirety and replacing them with the following respective terms:

 

‘“Agreement’
means this Credit Agreement, including the Schedules and Exhibits hereto, as amended by the First Amendment to Credit Agreement
dated as of February 18, 2013, as the same may be amended, amended and restated, supplemented or modified from time to time.

 

‘Change
in Control’ means (a) the acquisition of ownership, directly or indirectly, beneficially or of record, by any Person
or group (within the meaning of the Securities Exchange Act of 1934 and the rules of the SEC thereunder as in effect on the date
hereof), of Equity Interests representing more than 35% of the ordinary voting power represented by the issued and outstanding
Equity Interests of the Borrower (determined on a fully diluted basis), (b) the board of directors of the Borrower shall cease
to consist of a majority of Continuing Directors or (c) a “Change of Control” as such term is defined in the Preferred
Stock Agreement.

 

    	1

    	 

    
 

‘Debt’
means, for any Person, the sum of the following (without duplication): (a) all obligations of such Person for borrowed money or
evidenced by bonds, bankers’ acceptances, debentures, notes or other similar instruments; (b) all obligations of such Person
(whether contingent or otherwise) in respect of letters of credit, surety or other bonds and similar instruments; (c) all accounts
payable and all accrued expenses, liabilities or other obligations of such Person to pay the deferred purchase price of Property
or services (excluding accounts payable and accrued expenses, liabilities or other obligations to pay the deferred purchase price
of Property or services, from time to time incurred in the ordinary course of business which are not greater than ninety (90) days
past the date of invoice or delinquent or which are being contested in good faith by appropriate action and for which adequate
reserves have been maintained in accordance with GAAP); (d) all obligations under Capital Leases; (e) all obligations under Synthetic
Leases; (f) all Debt (as defined in the other clauses of this definition) of others secured by (or for which the holder of such
Debt has an existing right, contingent or otherwise, to be secured by) a Lien on any Property of such Person, whether or not such
Debt is assumed by such Person; (g) all Debt (as defined in the other clauses of this definition) of others guaranteed by such
Person or in which such Person otherwise assures a creditor against loss of the Debt (howsoever such assurance shall be made) to
the extent of the lesser of the amount of such Debt and the maximum stated amount of such guarantee or assurance against loss;
(h) all obligations or undertakings of such Person to maintain or cause to be maintained the financial position or covenants of
others or to purchase the Debt or Property of others; (i) obligations to deliver commodities, goods or services, including Hydrocarbons,
in consideration of one or more advance payments, other than gas balancing arrangements in the ordinary course of business; (j)
obligations to pay for goods or services even if such goods or services are not actually received or utilized by such Person; (k)
any Debt of a partnership for which such Person is liable either by agreement, by operation of law or by a Governmental Requirement
but only to the extent of such liability; (l) Disqualified Capital Stock; and (m) the undischarged balance of any production payment
created by such Person or for the creation of which such Person directly or indirectly received payment; provided however, that
any portion of the Preferred Stock and the Warrant Shares required by GAAP (as in effect on the First Amendment Effective Date)
to be classified as debt on the balance sheet of the Borrower shall not be “Debt”. The Debt of any Person shall include
all obligations of such Person of the character described above to the extent such Person remains legally liable in respect thereof
notwithstanding that any such obligation is not included as a liability of such Person under GAAP.

 

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‘Preferred
Stock Agreement’ means that certain securities purchase agreement entered into among the Borrower, WDE Emerald Holdings
LLC and White Deer Energy Fl L.P. dated as of February 1, 2013.”

 

(b)Section
1.02 is hereby amended by amending the defined term “Disqualified Capital Stock” by inserting the phrase “and
the Warrant Shares” after the phrase “the Preferred Stock” in the last sentence of such definition.

 

(c)Section
1.02 is hereby amended by adding the following defined term in the appropriate alphabetical order:

 

“First
Amendment” means that certain First Amendment to Credit Agreement among the Borrower, the Administrative Agent and the
Lenders dated as of February 18, 2013.

 

“First
Amendment Effective Date” has the meaning assigned such term in the First Amendment.

 

‘Warrant
Agreement’ means that certain Warrant to purchase 5,114,633 shares of Common Stock at an initial price of $5.77 per share,
issued by the Borrower to WDE Emerald Holdings LLC and White Deer Energy Fl L.P.

 

‘Warrant
Shares’ means shares issued or issuable upon exercise of the Warrant Agreement.”

 

2.2Section
8.17. Section 8.17 is hereby amended and restated in its entirety to read as follows:

 

“Section
8.17Preferred Stock. The Borrower may amend the Preferred Stock Agreement the Warrant Agreement or any other agreement
or condition relating to any such Preferred Stock or Warrant Shares or contained in any instrument or agreement relating thereto
from time to time provided that any such amendment which would (a) increase the number of Preferred Shares or Warrants issuable
thereunder, (b) alter any redemption requirement or (c) materially affect the Loans, the priority of the Liens and security interests
of the Administrative Agent in the collateral and Oil and Gas Properties, the Credit Documents or any Credit Party, must be approved
by all of the Lenders.”

 

2.3Section
9.02. Section 9.02(f) is hereby amended and restated in its entirety to read as follows:

 

“(f)
[Reserved].”

 

2.4Section
9.04. Section 9.04(iv) is hereby amended and restated in its entirety to read as follows:

 

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“(iv)
so long as no Default, Event of Default or Borrowing Base Deficiency is occurring or would result therefrom, the Borrower may make
dividends with respect to the Preferred Stock at a rate of no more than 10% per annum either by (A) issuing additional Preferred
Stock or (B) in cash.”

 

2.5Section
10.01(l). Section 10.01(l) is hereby amended and restated in its entirety to read as follows:

 

“(l)the
Borrower or any other Loan Party shall (i) fail to make any payment in an amount of $250,000 or more (whether in the form of an
exchange or redemption or a dividend) in respect of any Preferred Stock or Warrant Shares, when and as the same shall become due
and payable or (ii) default in the observance or performance of any material covenant or agreement in the Preferred Stock Agreement,
the Warrant Agreement or any other agreement or condition relating to any such Preferred Stock or Warrant Shares or contained in
any instrument or agreement relating thereto and such failure shall continued unremedied for any applicable grace period contained
in the Preferred Stock Agreement, the Warrant Agreement or such other instrument or agreement relating thereto, as applicable.”

 

2.6Section
12.02. Section 12.02(a) is hereby amended by numbering the second paragraph thereof 12.02(b) and deleting the last sentence
of such paragraph and replacing in its entirety to read as follows:

 

“Notwithstanding
the foregoing, the Borrower and the Administrative Agent may amend this Agreement or any other Loan Document without the consent
of the Lenders in order to correct, amend or cure any ambiguity, inconsistency or defect or correct any typographical error or
other manifest error in any Loan Document.”

 

Section
3.Effectiveness. This First Amendment shall become effective on the first date on which each of the conditions
set forth in this Section 3 is satisfied (the “First Amendment Effective Date”):

 

3.1The Administrative
Agent shall have received duly executed counterparts (in such number as may be requested by the Administrative Agent) of this First
Amendment from the Borrower, each Guarantor and each Lender.

 

3.2The Borrower
shall have paid all fees and other amounts due and payable on or prior to the First Amendment Effective Date to the extent invoiced,
all reasonable out-of-pocket expenses required to be reimbursed or paid by the Borrower under the Credit Agreement.

 

3.3The Administrative
Agent shall be reasonably satisfied with the terms and conditions of the Preferred Stock Agreement.

 

3.4No Default
or Event of Default shall have occurred and be continuing as of the date hereof, after giving effect to the terms of this First
Amendment.

 

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Section
4.Governing Law. THIS FIRST AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE
STATE OF NEW YORK.

 

Section
5.Miscellaneous. (a) On and after the effectiveness of this First Amendment, each reference in the Credit Agreement
to “this Agreement”, “hereunder”, “hereof” or words of like import referring to the Credit
Agreement, and each reference in each other Loan Document to “the Credit Agreement”, “thereunder”, “thereof”
or words of like import referring to the Credit Agreement, shall mean and be a reference to the Credit Agreement as amended or
otherwise modified by this First Amendment; (b) the execution, delivery and effectiveness of this First Amendment shall not, except
as expressly provided herein, operate as a waiver of any default of the Borrower or any right, power or remedy of the Administrative
Agent or the Lenders under any of the Loan Documents, nor constitute a waiver of any provision of any of the Loan Documents; (c)
this First Amendment may be executed in any number of counterparts, all of which taken together shall constitute one and the same
instrument and any of the parties hereto may execute this Agreement by signing any such counterpart; and (d) delivery of an executed
counterpart of a signature page to this First Amendment by telecopier or electronic mail shall be effective as delivery of a manually
executed counterpart of this First Amendment.

 

Section
6.Ratification and Affirmation; Representations and Warranties.The Borrower and each Guarantor hereby (a)
acknowledges the terms of this First Amendment; (b) ratifies and affirms its obligations under, and acknowledges, renews and extends
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, except as expressly amended or modified hereby and (c) represents and warrants to the Lenders
that as of the First Amendment Effective Date, after giving effect to the terms of this First Amendment: (i) all of the representations
and warranties contained in each Loan Document to which it is a party are true and correct in all material respects (unless already
qualified by materiality in which case such applicable representation and warranty shall be true and correct), except to the extent
any such representations and warranties are expressly limited to an earlier date, in which case, such representations and warranties
shall continue to be true and correct in all material respects (unless already qualified by materiality in which case such applicable
representation and warranty shall be true and correct) as of such specified earlier date, and (ii) no Default or Event of Default
has occurred and is continuing.

 

Section
7.Loan Document.This First Amendment is a Loan Document as defined and described in the Credit Agreement
and all of the terms and provisions of the Credit Agreement relating to Loan Documents shall apply hereto.

 

Section
8. No Oral Agreements. THE CREDIT AGREEMENT AND THE OTHER LOAN DOCUMENTS,
INCLUDING THIS FIRST AMENDMENT, embody the entire agreement and understanding between the parties and supersede all other agreements
and understandings between such parties relating to the subject matter hereof and thereof 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.

 

[Signature Pages Follow]

 

    	5

    	 

    

 

IN WITNESS WHEREOF,
the parties hereto have caused this First Amendment to be executed by their officers thereunto duly authorized as of the date first
above written.

 

	BORROWER:	EMERALD OIL, INC., a Montana corporation
	 	 
	 	By:	/s/ Paul Wiesner
	 	 	Name:	Paul Wiesner
	 	 	Title:	Chief Financial Officer

 

	GUARANTOR:	EMERALD OIL NORTH AMERICA, INC., f/k/a Emerald Oil, Inc., a Delaware corporation
	 	EMERALD WB LLC
	 	EMERALD GRB LLC
	 	EMERALD TR LLC
	 	EMERALD HEATH LLC
	 	 
	 	By:	/s/ Paul Wiesner
	 	 	Name:	Paul Wiesner
	 	 	Title:	Chief Financial Officer, for and on behalf of each of the foregoing Guarantors

 

Signature Page

Emerald
oil, inc – First Amendment

    	 

    	 

    
 

	ADMINISTRATIVE AGENT AND LENDER:	WELLS FARGO BANK, N.A., as Administrative
    Agent and as a Lender
	 	 
	 	By:	/s/ Suzanne F. Ridenhour
	 	 	Name:	Suzanne F. Ridenhour
	 	 	Title: 	Director

 

Signature Page

Emerald
oil, inc – First AmendmentEXHIBIT 10.12

 

M
line holdings, inc.

Employee
Agreement

 

This Executive Employment Agreement ("Agreement")
is made and effective this July 1, 2011 by and between M Line Holdings, Inc., a California Corporation ("The Company")
and Anthony L Anish ("Executive").

 

NOW, THEREFORE, the parties hereto agree as follows:

 

1. Employment.

 

“The Company” hereby agrees to initially employ
Anthony L. Anish “Executive” as its Chief Operating Officer and a member of the board of directors of M Line
Holdings, Inc., (formerly Gateway International Holdings Inc.) and Executive hereby accepts such employment in accordance with
the terms of this Agreement and the terms of employment applicable to regular employees of the Company. In the event of any conflict
or ambiguity between the terms of this Agreement and terms of employment applicable to regular employees, the terms of this Agreement
shall control. Election or appointment of Executive to another office or position, regardless of whether such office or position
is inferior to Executive's initial office or position, shall not be a breach of this Agreement.

 

2. Duties of Executive.

 

The duties of Executive shall include the performance of all
of the duties typical of the office held by Executive as described in the bylaws of the Company and such other duties and projects
as may be assigned by a superior officer of the Company, if any, and/or the board of directors of the Company. Executive shall
devote his entire productive time, ability and attention to the business of the Company and shall perform all duties in a professional,
ethical and businesslike manner. Executive may during the term of this Agreement, directly or indirectly engage in any other business,
either as an employee, employer, consultant, principal, officer, director, advisor, or in any other capacity, either with or without
compensation.

 

3. Compensation.

 

Executive will be paid compensation during this Agreement as
follows:

 

A. A base salary of $210,000 (Two Hundred and ten thousand
dollars) per year, payable in installments according to the Company's regular payroll schedule. The base salary may be adjusted
at the end of each year of employment at the discretion of the Board of Directors.

 

B. An incentive salary

 

Executive shall be entitled to an incentive salary, the details
of which will be agreed to shortly.

 

    	 

    	 

    

 

4. Benefits.

 

A. Holidays. Executive will be entitled to at least 3
weeks paid holidays each calendar year and no Personal days. The Company will notify Executive on or about the beginning of each
calendar year with respect to the holiday schedule for the coming year. Personal days, if any, will be scheduled in advance subject
to requirements of Company. Such days must be taken during the calendar year and cannot be carried forward into the next year.  Additional
Personal days or emergency leave over and above paid Personal days provided by the Company, if any, shall be unpaid and shall be
granted at the discretion of the Board of Directors. The parties intend Personal days to include vacation time. As such, the parties
agree that no separate vacation time shall be allowed.

 

B. Medical and Group Life Insurance. The Company agrees
to include Executive only  in the group medical and hospital plan of the Company, and provide group life insurance for
Executive only at no charge, in the coverage amount of $15,000.00,(Fifteen Thousand Only) during this Agreement. Family members
may be included in group medical and hospital plan at normal family rates. Executive shall be responsible for payment of any federal
or state income tax imposed upon these benefits.

 

C. Pension and Profit Sharing Plans. Executive shall
be entitled to participate in any pension or profit sharing plan or other type of plan if adopted by the Company for the benefit
of its officers and/or regular employees.

 

D. Expense Reimbursement. Executive shall be entitled
to reimbursement for all reasonable expenses, including travel and entertainment, incurred by Executive in the performance of Executive's
duties. The Company will pay Executive an auto allowance of $900.00 per month to cover all costs related to his automobile, such
as insurance, gas and repair bills. Executive will maintain records and written receipt as required by the Company policy and reasonably
requested by the Board of Directors to substantiate such expenses. Reimbursement for reasonable expenses incurred in the performance
of the Executives’ duties are subject to the approval of the Company.

 

E. Stock Options. Executive is entitled to participate
in the company’s stock option plan as soon as it is implemented by the company.

 

5. Trade Secrets and Proprietary Rights.

 

A. Executive shall not at any time or in any manner, even if
this agreement has been terminated, either directly or indirectly, divulge, disclose or communicate to any person, firm, corporation,
or other entity in any manner whatsoever any information concerning any matters affecting or relating to the business of the Company,
including without limitation, any of its customers, the prices it obtains or has obtained from the sale of, or at which it sells
or has sold, its products, or any other information concerning the business of the Company, its manner of operation, its plans,
processes, or other data, including confidential information, irrespective of whether any or all of the above-stated matters will
be deemed confidential, material, or important by others. The Company and Executive specifically and expressly stipulate that as
between them, such matters are important, material, and confidential and gravely affect the effective and successful conduct of
the business of the Company, and the Company's good will, and that any breach of the terms of this section shall be a material
breach of this agreement.

 

    	 

    	 

    

 

B. During the course of his employment with the Company, Executive
may be producing software code(s) and other items related to computers and/or their peripherals. All inventions, designs, developments,
formulas, patterns, devices, compilations of information, records and specifications, computer programs, hardware, software code
and/or marketing programs (and any portions thereof) produced and/or conceived by the Executive while employed with the Company
and/or that were conceived from the use of equipment, facilities, or other resources of the Company or which the Company possessed
at the time of the execution of this agreement (all of the foregoing shall be collectively referred to as "Intellectual Property"),
shall remain the sole and exclusive property of the Company. Intellectual Property shall also include any inventions, designs,
developments, formulas, patterns, devices, compilations of information, records and specifications, computer programs, hardware,
software code and/or marketing programs produced by Executive after the termination of the Executive-Company relationship to the
extent such items relate in any fashion to an idea, concept or program which was originally conceived or produced while Executive
was employed with the Company. The Executive shall promptly disclose and fully inform to the Company the details of all such Intellectual
Property as soon as the same becomes known to Executive. For purposes of this agreement the terms "conceived" and "produced"
shall be given the broadest possible interpretation and shall include any thought process during which an idea is created regardless
of whether the idea as originally conceived or produced requires alteration to become practical or useful.

 

C. Executive agrees that he has no past, present or future claim
or right to ownership of any of the Intellectual Property, any current or future proceeds from the sale of any Intellectual Property
or profits derived from the Intellectual Property by the Company or Executive, and/or any Intellectual Property currently belonging
to the Company or Intellectual Property which is conceived of or produced by the Executive and which becomes property of the Company
pursuant to the terms hereof. To the extent that the Executive may in the future attempt to claim any ownership interest in or
legal right to the Intellectual Property or any portion thereof, any current or future proceeds from the sale of the Intellectual
Property or the use thereof, and/or any Intellectual Property currently belonging to the Company or Intellectual Property which
becomes property of the Company hereunder, Executive hereby expressly waives such claims regardless of whether such claims are
now known or of an unknown origin and nature.

 

6. Term and Termination.

 

A. The Initial Term of this Agreement shall commence on July
1, 2011, and it shall continue in effect for a period of three years (36 calendar months). Thereafter, the Agreement may
be renewed upon the mutual agreement of Executive and the Company. The Company and Executive also agree that either party may terminate
this Agreement upon thirty (30) days written notice to the other party.

 

    	 

    	 

    

 

B. In the event that Executive is in breach of any material
obligation owed the Company in this Agreement, neglects the duties to be performed under this Agreement, engages in any conduct
which is dishonest, damages the reputation or standing of the Company, or is convicted of any criminal act or engages in any act
of moral turpitude, then the Company may terminate this Agreement immediately.

 

In event of termination of the agreement pursuant to this subsection,
Executive shall be paid only at the then applicable base salary rate up to and including the date of termination. Executive shall
not be paid any incentive salary payments, stock options or other compensation, prorated or otherwise.

 

C. In the event the Company is acquired, or is the non-surviving
party in a merger, or sells all or substantially all of its assets, this Agreement shall be automatically terminated and the Company
shall have no further obligations under this Agreement.

 

D. All of the terms of article 5 of this agreement shall remain
in full force and effect for the period of one (1) year after the termination of this Agreement or Executive's employment
for any reason, and during such time period.

 

7. Notices

 

Any notice required by this Agreement or given in connection
with it, shall be in writing and shall be given to the appropriate party by personal delivery or by certified mail, postage prepaid,
or recognized overnight delivery services;

 

To Company:

 

M Line Holdings, Inc.

2672 Dow Avenue

Tustin, CA 92680

 

To Executive:

 

Anthony L Anish

1064 Spinaker Run

Costa Mesa, CA 92627

 

8. Final Agreement.

 

This Agreement terminates and supersedes all prior understandings
or agreements on the subject matter hereof. This Agreement may be modified only by a further writing that is duly executed by both
parties.

 

    	 

    	 

    

 

9. Governing Law.

 

This Agreement shall be construed and enforced in accordance
with the laws of the state of California; venue for any legal action shall be the Courts of Orange County.

 

10. Headings.

 

Headings used in this Agreement are provided for convenience
only and shall not be used to construe meaning or intent.

 

11. No Assignment

 

Neither this Agreement nor any or interest in this Agreement
may be assigned by Executive without the prior express written approval of the Company, which may be withheld by the Company at
the Company's sole and absolute discretion. Any such attempted assignment shall be null and void.

 

12. Severability.

 

If any term of this Agreement is held by a court of competent
jurisdiction to be invalid or unenforceable, then this Agreement, including all of the remaining terms, will remain in full force
and effect as if such invalid or unenforceable term had never been included.

 

13. Agreement Equally Drafted

 

The parties acknowledge that this Agreement was jointly drafted,
and that each party hereto has had an opportunity to consult with the legal counsel of his/it’s choice.

 

Executed In California, County of Orange, City of Tustin.

 

ANTHONY L ANISH

 

	/s/ Anthony L. Anish	 	July 1, 2011
	By : Anthony L Anish	 	Dated
	 	 	 
	M Line Holdings, Inc	 	 
	 	 	 
	/s/ George Colin	 	July 1, 2011
	By : GEORGE COLIN	 	Dated
	 	 	 
	/s/ Jitu Banker	 	July 1, 2011
	By: JITU BANKER	 	Dated

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