Document:

exv10w2

Exhibit 10.2

June
22, 2010

Jan H. Hollar

Yadkin Valley Financial Corporation

209 North Bridge Street

Elkin, North Carolina 28621

Dear Jan,

     Yadkin Valley Financial Corporation (the “Company”) has entered into a Securities Purchase
Agreement (the “Participation Agreement”) with the United States Department of Treasury (the
“Treasury”) that provides, among other things, for the purchase by the Treasury of securities
issued by the Company. This purchase occurred as part of the Company’s participation in the
Treasury’s Troubled Asset Relief Program — Capital Purchase Program (the “CPP”).

     As a condition to the investment under the Participation Agreement, the Company is required to
take certain actions with respect to compensation arrangements of its senior executive officers,
including senior executive officers of its wholly owned subsidiary, Yadkin Valley Bank and Trust
Company. The Company recently determined that you are or may be a senior executive officer for
purposes of the CPP. To comply with the requirements of the CPP, and in consideration of the
benefits that you will receive as a result of the Company’s participation in the CPP and for other
good and valuable consideration, the sufficiency of which you hereby acknowledge, you agree as
follows:

	 	(1)	 	No Golden Parachute Payments. You will not be entitled to receive from the
Company any golden parachute payment (as defined below) during any period in which the
Treasury holds an equity or debt position acquired from the Company in the CPP, as
defined by Section 111(a)(5) of EESA (as defined below) (the “CPP Covered Period”) (or
during the year following any acquisition of the Company, to the extent required by the
CPP Limitations (as defined below)).
	 
	 	(2)	 	No Bonus, Retention Award, or Incentive Compensation. At any time at which you
are one of the Company’s top five most highly compensated employees, as such term is
defined in Q&A 1 of the Interim Final Rule, you will not be entitled to receive from
the Company any bonus, retention award, or incentive compensation during the CPP
Covered Period, except for certain long term restricted stock payments and previously
determined bonus payments to the extent permitted by Section 111(b)(3)(D) of EESA (as
defined below).
	 
	 	(3)	 	No Tax Gross-Up Payments. You will not be entitled to receive from the Company
any tax gross-up (as defined below), including a right to a payment of such gross-up at
a date following the CPP Covered Period, or other reimbursements for the payment of
taxes during the CPP Covered Period.
	 
	 	(4)	 	Recovery of Bonus and Incentive Compensation. You will be required to and shall
return to the Company any bonus or incentive compensation paid to you by the Company
during the CPP Covered Period if such bonus or incentive compensation is paid to you
based on materially inaccurate financial statements or any other materially inaccurate
performance metric criteria.

 

 

	 	(5)	 	Compensation Program Amendments. Each of the Company’s compensation, bonus,
incentive and other benefit plans, arrangements and agreements, including your
Employment Agreement (all such plans, arrangements and agreements, the “Benefit Plans”)
are hereby amended to the extent necessary to give effect to provisions (1)-(4) of this
letter.

     The Company is also required as a condition to participation in the CPP to review the Benefit
Plans to ensure that the Benefit Plans do not encourage its senior executive officers to take
unnecessary and excessive risks that threaten the value of the Company. To the extent that the
Company determines that the Benefit Plans must be revised as a result of such review, or determines
that the Benefit Plans must otherwise be revised to comply with Section 111(b) of the EESA (as
defined below) as implemented by any guidance or regulation thereunder that has been issued and is
in effect as of the closing date of the Company’s issuance of preferred stock and warrants to
acquire common stock to the Treasury pursuant to the CPP (the “CPP Limitations”), you and the
Company agree to negotiate and effect such changes promptly and in good faith.

	 	(6)	 	Definitions and Interpretation. This letter shall be interpreted as follows:

	 	•	 	“Senior executive officer” means the Company’s “senior executive
officers” as defined under Q&A 1 of the Interim Final Rule issued by the Treasury
at 31 CFR Part 30, effective on June 15, 2009 (the “Interim Final Rule”).
	 
	 	•	 	“Golden parachute payment” shall have the meaning set forth under Q&A
1 of the Interim Final Rule.
	 
	 	•	 	“Gross-up” shall have the meaning set forth under Q&A 1 of the
Interim Final Rule.
	 
	 	•	 	The term “Company” includes any entities treated as a single
employer with the Company under Q&A 1 of the Interim Final Rule.
	 
	 	•	 	This letter is intended to, and shall be interpreted, administered
and construed to comply with Section 111 of the Emergency Economic Stabilization
Act of 2008 (the “EESA”), as amended by the American Recovery and Reinvestment Act
of 2009 and the regulations and guidance promulgated thereunder (and, to the
maximum extent consistent with the preceding, to permit operation of the Benefit
Plans in accordance with their terms before giving effect to this letter).

	 	(7)	 	Miscellaneous. To the extent not subject to federal law, this letter will be
governed by and construed in accordance with the laws of the State of North Carolina.
This letter may be executed in two or more counterparts, each of which will be deemed
to be an original. A signature transmitted by facsimile will be deemed an original
signature.
	 
	 	(8)	 	In addition, upon such time as the Treasury no longer holds securities or debt
of the Company acquired under the CPP, this letter shall be of no further force or
effect, except to the extent required by the CPP Limitations. If you cease to be a
senior executive officer of the Company for purposes of the CPP, you shall be released
from the restrictions and obligations set forth in this letter to the extent
permissible under the CPP. If it is determined that you are not a senior executive
officer of the Company as of the date hereof, this letter shall be of no force or
effect.

 

 

     The Company appreciates the concessions you are making and looks forward to your continued
leadership during these financially turbulent times.

[Signature page follows]

 

 

	 	 	 	 	 	 	 
	 

	 	 	 	Sincerely,
	 
	 	 	 	 	 	 
	 

	 	 	 	YADKIN VALLEY FINANCIAL CORPORATION
	 
	 	 	 	 	 	 
	 

	 	 	 	By:	 	/s/ William A. Long 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name:
	 	William A. Long
	 

	 	 	 	Title:
	 	President and Chief Executive Officer
	 
	 	 	 	 	 	 
	Intending to be legally bound,
I agree with and accept the

foregoing terms on the date
set forth below.	 	 	 	 
	 
	 	 	 	 	 	 
	By:
	 	/s/ Jan H. Hollar 	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	Name:

	 	Jan H. Hollar	 	 	 	 
	Title:

	 	Chief Financial Officer	 	 	 	 
	Date:

	 	June 22, 2010exv10w1

Exhibit 10.1

Execution Version

CONTRIBUTION AGREEMENT

By and Among

OASIS PETROLEUM INC.

OASIS PETROLEUM LLC

OAS HOLDING COMPANY LLC

OAS MERGERCO LLC

And

ENCAP ENERGY CAPITAL FUND VI, L.P.

Dated as of June 15, 2010

 

 

CONTRIBUTION AGREEMENT

     This Contribution Agreement, dated as of June 15, 2010 (this “Agreement”), is by and among
Oasis Petroleum Inc., a Delaware corporation (“Oasis”), Oasis Petroleum LLC, a Delaware limited
liability company (“Oasis LLC”), OAS Holding Company LLC, a Delaware limited liability company
(“Oasis Holdings”), OAS Mergerco LLC, a Delaware limited liability company (“Merger LLC”) and Encap
Energy Capital Fund VI, L.P., a Delaware limited partnership (“Encap”). The above-named entities
are sometimes referred to in this Agreement each as a “Party” and collectively as the “Parties.”
Capitalized terms used herein shall have the meanings assigned to such terms in Article I.

RECITALS

     WHEREAS, Oasis LLC formed Oasis Holdings as a limited liability company under the Delaware
Limited Liability Company Act, as amended (the “Act”) and owns all of the equity interests in Oasis
Holdings.

     WHEREAS, pursuant to the terms of the Limited Liability Company Agreement of Oasis Holdings
dated as of February 26, 2010 (the “New Holdings Agreement”), the various parties to the New
Holdings Agreement agreed that the transactions and actions being consummated by the terms of this
Agreement were transactions that the parties were obligated to consummate subsequent to the
formation of Oasis Holdings and, as a consequence, this Agreement is in furtherance of the terms
and obligations of the parties under the New Holdings Agreement;

     WHEREAS, Oasis Holdings formed Merger LLC as a limited liability company under the Act and
owns all of the equity interests in Merger LLC.

     WHEREAS, Oasis Holdings incorporated Oasis as a corporation under the Delaware General
Corporation Law, as amended, and contributed $10.00 to Oasis in exchange for 1,000 shares of Common
Stock (the “Initial Shares”).

     WHEREAS, as contemplated by that certain Registration Statement on Form S-1 (Registration No.
333-165212) filed by Oasis with the Securities and Exchange Commission to register the public
offering and sale of common stock of Oasis (the “IPO”), the Parties intend to cause various
transactions to occur at or prior to the initial closing of the IPO.

     WHEREAS, concurrently with the consummation of the transactions contemplated hereby, each of
the following transactions shall occur:

	 	1.	 	Oasis LLC will contribute to Oasis Holdings cash in an amount equal to 0.001%
of the product of (x) the price at which the Company’s Common Stock is offered to the
public pursuant to the Underwriting Agreement and (y) the number of outstanding shares
of the Company’s Common Stock following the closing of the Underwriting Agreement (the
“Holdings Contribution”), in exchange for a 10% membership interest in Oasis Holdings.

 

 

	 	2.	 	Encap will contribute to Oasis Holdings membership interests in Oasis LLC
representing a 0.01% interest in Oasis LLC in exchange for a 90% membership interest in
Oasis Holdings.
	 
	 	3.	 	Merger LLC will, pursuant to the Agreement and Plan of Merger, dated the date
hereof (the “Merger Agreement”), merge with and into Oasis LLC, the separate
organizational existence of Merger LLC shall cease, and Oasis LLC shall continue as the
surviving entity (the “Merger”).
	 
	 	4.	 	By virtue of the Merger, all of the membership interests in Oasis LLC shall be
converted into membership interests in Oasis Holdings, whereby Oasis LLC will become a
wholly-owned subsidiary of Oasis Holdings and the former members of Oasis LLC will be
admitted to and become the members of Oasis Holdings, owning the same percentage
interests in Oasis Holdings that were owned in Oasis LLC (the “Conversion”).
	 
	 	5.	 	Oasis Holdings will contribute to Oasis all of the membership interests in
Oasis LLC in exchange for 61,630,000 shares of Common Stock, representing 100% of the
outstanding capital stock of Oasis.
	 
	 	6.	 	Oasis will redeem the Initial Shares from Oasis Holdings.
	 
	 	7.	 	The limited liability company agreements of Oasis Holdings and Oasis LLC will
be amended and restated to the extent necessary to reflect the applicable matters set
forth above and contained in this Agreement.

     NOW, THEREFORE, in consideration of the mutual covenants, representations, warranties and
agreements herein contained, the parties hereto agree as follows:

ARTICLE I

DEFINITIONS

     The terms set forth below in this Article I shall have the meanings ascribed to them below or
in the part of this Agreement referred to below:

     “Common Stock” means the common stock of Oasis, par value $0.01 per share.

     “Effective Time” means 12:01 a.m. Central Standard Time on the date of the closing of
the IPO.

     “Underwriters” means those underwriters listed in the Underwriting Agreement.

     “Underwriting Agreement” means that certain Underwriting Agreement to be entered into
among Morgan Stanley and UBS Securities LLC, as representatives of the Underwriters, Oasis and
Oasis Holdings.

2

 

ARTICLE II

CONTRIBUTIONS AND ACKNOWLEDGEMENTS

     Section 2.1 Contribution to Oasis Holdings by Oasis LLC. Effective immediately
following the Effective Time, Oasis LLC hereby contributes to Oasis Holdings, as a capital
contribution, cash in an amount equal to the Holdings Contribution, in exchange for a 10%
membership interest in Oasis Holdings.

     Section 2.2 Contribution to Oasis Holdings by Encap. Effective immediately following
the Effective Time, Encap hereby contributes to Oasis Holdings, as a capital contribution,
membership interests in Oasis LLC representing a 0.01% interest in Oasis LLC, in exchange for a 90%
membership interest in Oasis Holdings.

     Section 2.3 Acknowledgement of Merger and Conversion. Effective immediately following
the consummation of the transaction described in Section 2.2, the Parties hereto hereby
acknowledge, pursuant to the Merger Agreement, the completion of the Merger and the Conversion.

     Section 2.4 Contribution of Oasis LLC by Oasis Holdings to Oasis. Effective
immediately following the consummation of the transaction described in Section 2.3, Oasis Holdings
hereby contributes, conveys, assigns and transfers to Oasis all of the membership interests in
Oasis LLC, in exchange for 61,630,000 shares of Common Stock.

     Section 2.5 Redemption of the Initial Shares. Effective simultaneously with the
consummation of the transaction described in Section 2.4, Oasis hereby redeems the Initial Shares
in exchange for the repayment to Oasis Holdings of the $10.00 contribution made by Oasis Holdings
to Oasis in connection with the incorporation of Oasis, along with any interest or other profit
that may have resulted from the investment or other use of such contribution.

     Section 2.6 Amended and Restated Limited Liability Company Agreement of Oasis LLC.
Effective immediately following the consummation of the transactions described in Section 2.4 and
Section 2.5, Oasis shall enter into an Amended and Restated Limited Liability Company Agreement of
Oasis LLC to admit Oasis as the sole member of Oasis LLC.

ARTICLE III

FURTHER ASSURANCES

     From time to time after the Effective Time, and without any further consideration, the Parties
agree to execute, acknowledge and deliver all such additional, assignments, conveyances,
instruments, notices and other documents, and to do all such other acts and things, all in
accordance with applicable law, as may be necessary or appropriate (a) more fully to assure that
the applicable Parties own all of the properties, rights, titles, interests, estates, remedies,
powers and privileges granted by this Agreement, or which are intended to be so granted, (b) more
fully and effectively to vest in the applicable Parties and their respective successors and assigns
beneficial and record title to the interests contributed and assigned by this Agreement or intended
to be so and (c) more fully and effectively to carry out the purposes and intent of this Agreement.

3

 

ARTICLE IV

EFFECTIVE TIME

     Notwithstanding anything contained in this Agreement to the contrary, the provisions of
Article II and Article III shall not be binding or have any effect until Oasis and Oasis Holdings
execute the Underwriting Agreement, at which time all such provisions shall be effective and
operative without further action by any Party hereto.

ARTICLE V

MISCELLANEOUS

     Section 5.1 Order of Completion of Transactions. The transactions provided for in
Article II of this Agreement shall be completed in the order and at the times set forth in Article
II.

     Section 5.2 Headings; References; Interpretation. All Article and Section headings in
this Agreement are for convenience only and shall not be deemed to control or affect the meaning or
construction of any of the provisions hereof. The words “hereof,” “herein” and “hereunder” and
words of similar import, when used in this Agreement, shall refer to this Agreement as a whole, and
not to any particular provision of this Agreement. All references herein to Articles and Sections
shall, unless the context requires a different construction, be deemed to be references to the
Articles and Sections of this Agreement. All personal pronouns used in this Agreement, whether used
in the masculine, feminine or neuter gender, shall include all other genders, and the singular
shall include the plural and vice versa. The use herein of the word “including” following any
general statement, term or matter shall not be construed to limit such statement, term or matter to
the specific items or matters set forth immediately following such word or to similar items or
matters, whether or not non-limiting language (such as “without limitation”, “but not limited to”,
or words of similar import) is used with reference thereto, but rather shall be deemed to refer to
all other items or matters that could reasonably fall within the broadest possible scope of such
general statement, term or matter.

     Section 5.3 Assignment of Agreement; Successors and Assigns. Neither this Agreement
nor any of the rights, interests or obligations hereunder may be assigned by any Party without the
prior consent of each of the Parties. This Agreement shall be binding upon and inure to the
benefit of the Parties and their respective successors and assigns.

     Section 5.4 No Third Party Rights. The provisions of this Agreement are intended to
bind the Parties as to each other and are not intended to and do not create rights in any other
person or confer upon any other person any benefits, rights or remedies, and no person is or is
intended to be a third party beneficiary of any of the provisions of this Agreement.

     Section 5.5 Counterparts. This Agreement may be executed in any number of counterparts
with the same effect as if all signatory Parties had signed the same document. All counterparts
shall be construed together and shall constitute one and the same instrument.

     Section 5.6 Choice of Law. This Agreement shall be subject to and governed by the laws
of the State of Texas. Each Party hereby submits to the jurisdiction of the state and federal
courts in the State of Texas and to venue in Houston, Texas.

4

 

     Section 5.7 Severability. If any of the provisions of this Agreement are held by any
court of competent jurisdiction to contravene, or to be invalid under, the laws of any political
body having jurisdiction over the subject matter hereof, such contravention or invalidity shall not
invalidate the entire Agreement. Instead, this Agreement shall be construed as if it did not
contain the particular provisions or provisions held to be invalid and an equitable adjustment
shall be made and necessary provision added so as to give effect to the intention of the Parties as
expressed in this Agreement at the time of execution of this Agreement.

     Section 5.8 Amendment or Modification. This Agreement may be amended or modified from
time to time only by the written agreement of all the Parties. Each such instrument shall be
reduced to writing and shall be designated on its face as an amendment to this Agreement.

     Section 5.9 Integration. This Agreement and the instruments referenced herein
supersede all previous understandings or agreements among the Parties, whether oral or written,
with respect to the specific transactions effected pursuant to this Agreement and such instruments.

     Section 5.10 Deed; Bill of Sale; Assignment. To the extent required and permitted by
applicable law, this Agreement shall also constitute a “deed,” “bill of sale” or “assignment” of
the assets and interests referenced herein.

[Signature Pages Follow]

5

 

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

	 	 	 	 	 
	 	OASIS PETROLEUM INC.

 	 
	 	By:  	/s/ Thomas B. Nusz
 	 
	 	 	Name:  	Thomas B. Nusz 	 
	 	 	Title:  	President and Chief Executive Officer 	 
	 
	 	OASIS PETROLEUM LLC

 	 
	 	By:  	/s/ Thomas B. Nusz
 	 
	 	 	Name:  	Thomas B. Nusz 	 
	 	 	Title:  	President and Chief Executive Officer 	 
	 
	 	OASIS HOLDING COMPANY LLC

 	 
	 	By:  	/s/ Thomas B. Nusz
 	 
	 	 	Name:  	Thomas B. Nusz 	 
	 	 	Title:  	President and Chief Executive Officer 	 
	 
	 	OAS MERGERCO LLC

 	 
	 	By:  	 OAS HOLDING COMPANY LLC
its sole member
 	 
	 
	 	By:  	               /s/ Thomas B. Nusz
 	 
	 	 	Name:  	Thomas B. Nusz 	 
	 	 	Title:  	President and Chief Executive Officer 	 
	 

Signature Page to Contribution Agreement

 

 

	 	 	 	 	 	 	 

	 	 	ENCAP ENERGY CAPITAL FUND VI, L.P.
	 
	 	 	 	 	 	 
	 

	 	By:
	 	EnCap Equity Fund VI GP, L.P.,

General Partner of EnCap Energy Capital

Fund VI, L.P.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	EnCap Investments, L.P.,

General Partner of EnCap Equity Fund VI

GP, L.P.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	EnCap Investments GP, L.L.C.,

General Partner of EnCap Investments L.P.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ D. Martin Phillips	 	 
	 

	 	
	 	 

Name: D. Martin Phillips
	 	 
	 

	 	
	 	Title:   Senior Managing Director	 	 

Signature Page to Contribution Agreement

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