Document:

Document

Exhibit 10.1

Execution Version

AMENDMENT NO. 8 TO
WARRANT EXERCISABLE FOR JUNIOR SECURITIES
This Amendment No. 8 (this “Amendment”) to Warrant Exercisable for Junior Securities is entered into effective as of August 1, 2022 by Evolve Transition Infrastructure LP, a Delaware limited partnership (the “Partnership”), and Stonepeak Catarina Holdings LLC, a Delaware limited liability company (the “Holder”). Capitalized terms used but not defined herein have the meanings ascribed to them in the Third Amended and Restated Agreement of Limited Partnership of the Partnership, dated as of August 2, 2019, as amended by the Letter Agreement (as defined below) and Amendment No. 1 thereto, dated as of February 26, 2021.
RECITALS
WHEREAS, on August 2, 2019, the Partnership issued to the Holder that certain Warrant Exercisable for Junior Securities, dated August 2, 2019 (the “Original Warrant”);
WHEREAS, on February 24, 2021, the Partnership and the Holder entered into Amendment No.1 to Warrant Exercisable for Junior Securities (the “First Amendment”);
WHEREAS, on May 4, 2021, the Partnership and the Holder entered into Amendment No. 2 to Warrant Exercisable for Junior Securities (the “Second Amendment”);
WHEREAS, on August 2, 2021, the Partnership and the Holder entered into Amendment No. 3 to Warrant Exercisable for Junior Securities (the “Third Amendment”);
WHEREAS, on November 5, 2021, the Partnership and the Holder entered into Amendment No. 4 to Warrant Exercisable for Junior Securities (the “Fourth Amendment”);
WHEREAS, on November 9, 2021, the Partnership and the Holder entered into Amendment No. 5 to Warrant Exercisable for Junior Securities (the “Fifth Amendment”);
WHEREAS, on February 1, 2022, the Partnership and the Holder entered into Amendment No. 6 to Warrant Exercisable for Junior Securities (the “Sixth Amendment”);
WHEREAS, on May 2, 2022, the Partnership and the Holder entered into Amendment No. 7 to Warrant Exercisable for Junior Securities (the “Seventh Amendment”);
WHEREAS, the Original Warrant entitles the Holder to receive from the Partnership a number of each class of Junior Securities (including Common Units but excluding Excluded Junior Securities) representing ten percent (10%) of the Junior Securities Deemed Outstanding (as defined in the Original Warrant) of such class as of the Exercise Date (as defined in the Original Warrant);
WHEREAS, Junior Securities Deemed Outstanding includes, among other things, the number of such class of Junior Securities reserved for issuance at such time under the stock option or other equity incentive plans approved by the Board of Directors (the “Board”) of Evolve Transition Infrastructure GP LLC, the sole general partner of the Partnership (the “General Partner”), regardless of whether such Junior Securities are actually subject to outstanding Options at such time or whether any outstanding Options are actually exercisable at such time;
WHEREAS, the Partnership’s Long-Term Incentive Plan, effective March 6, 2015 (the “LTIP”), is such an equity incentive plan approved by the Board;

WHEREAS, on November 16, 2020, the Holder entered into a letter agreement with the Partnership and the General Partner (the “Letter Agreement”), pursuant to which the Holder was provided the option to elect to receive the Class C Preferred Quarterly Distribution in Common Units for any Quarter following the Quarter ended September 30, 2020, by providing written notice to the Partnership no later than the last day of the calendar month following the end of such Quarter;
WHEREAS, on July 29, 2022, pursuant to the Letter Agreement, the Holder provided its notice of election to receive 27,442,638 Common Units in lieu of receiving Class C Preferred PIK Units with respect to the Class C Preferred Quarterly Distribution for the Quarter ended June 30, 2022 (the “Second Quarter Units”);
WHEREAS, Section 4(a) of the LTIP, provides that upon the issuance of additional Units from time to time, the maximum number of Units that may be delivered or reserved for delivery with respect to the LTIP shall be automatically increased by a number of Units equal to the lesser of (i) fifteen percent (15%) of such additional Units, or (ii) such lesser number of Units as determined by the Board (such increase, the “LTIP Increase”);
WHEREAS, the maximum LTIP Increase resulting from the issuance of the Second Quarter Units is 4,116,396 Units (the “Second Quarter LTIP Units”);
WHEREAS, the Second Quarter LTIP Units are Junior Securities Deemed Outstanding for purposes of the Original Warrant; and
WHEREAS, the Partnership and the Holder desire to amend the Original Warrant to include the Second Quarter LTIP Units in the definition of Excluded Junior Securities.
NOW, THEREFORE, in consideration of the covenants, conditions and agreements contained herein, the General Partner does hereby amend the Partnership Agreement as follows:
1.Amendments. The Original Warrant is hereby amended as follows:
a.The definition of “Excluded Junior Securities” in Section 1 of the Original Warrant is hereby amended and restated in its entirety as follows:
“Excluded Junior Securities” means (i) any class or series of Junior Security that, with respect to distributions on such Junior Securities of cash or property and distributions upon liquidation of the Partnership (taking into account the intended effects of the allocation of gain and losses as provided in this Agreement), ranks junior to the Class C Preferred Units and senior to the Common Units, the proceeds from the sale of which are used to redeem the Class C Preferred Units, (ii) 1,866,823 Common Units reserved for issuance under the LTIP on February 25, 2021, so long as such Common Units are so reserved or issued pursuant to the LTIP, (iii) 2,064,487 Common Units reserved for issuance under the LTIP on May 20, 2021, so long as such Common Units are so reserved or issued pursuant to the LTIP, (iv) 1,201,928 Common Units reserved for issuance under the LTIP on August 20, 2021, so long as such Common Units are so reserved or issued pursuant to the LTIP, (v) 17,700,000 Common Units issued to Randall Gibbs, Mike Keuss and Jonathan Hartigan on November 3, 2021, so long as such Common Units vest and are not otherwise forfeited, (vi) 2,655,000 Common Units reserved for issuance under the LTIP on November 3, 2021, so long as such Common Units are so reserved or issued pursuant to the LTIP, (vii) 1,624,828 Common Units reserved for issuance under the LTIP on November 22, 2021, so long as such Common Units are so reserved or issued pursuant to the LTIP, (viii) 3,675,353 Common Units reserved for issuance under the LTIP on February 21, 2022, so long as such Common Units are so reserved for issuance under the LTIP, (ix) 3,708,287 Common Units 
			
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reserved for issuance under the LTIP on May 20, 2022, so long as such Common Units are so reserved or issued pursuant to the LTIP, and (x) 4,116,396 Common Units reserved for issuance under the LTIP on August 22, 2022, so long as such Common Units are so reserved or issued pursuant to the LTIP.
2.Agreement in Effect. Except as amended by this Amendment, the First Amendment, the Second Amendment, the Third Amendment, the Fourth Amendment, the Fifth Amendment, the Sixth Amendment and the Seventh Amendment, the Original Warrant shall remain in full force and effect.
3.Applicable Law. This Amendment shall be construed in accordance with and governed by the laws of the State of Delaware, without regard to principles of conflicts of laws.
4.Severability. Each provision of this Amendment shall be considered severable and if for any reason any provision or provisions herein are determined to be invalid, unenforceable or illegal under any existing or future law, such invalidity, unenforceability or illegality shall not impair the operation of or affect those portions of this Amendment that are valid, enforceable and legal.
5.Electronic Signature. This Amendment may be executed via facsimile or other electronic transmission (including portable document format (.pdf)), and any such executed facsimile or electronic copy shall be treated as an original.
[Signature Pages Follow]
			
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IN WITNESS WHEREOF, this Amendment has been executed as of the effective date written above.

						
	PARTNERSHIP:

EVOLVE TRANSITION INFRASTRUCTURE LP

By: Evolve Transition Infrastructure GP LLC, its general partner

		
	By:	/s/ Charles C. Ward    

	Name:	Charles C. Ward

	Title:	Chief Financial Officer and Secretary

		
	HOLDER:
	STONEPEAK CATARINA HOLDINGS, LLC

	By:	Stonepeak Texas Midstream Holdco LLC,  its managing member

	By:	Stonepeak Catarina Upper Holdings, LLC,  its managing member

	By:	Stonepeak Infrastructure Fund (Orion AIV) LP, its managing member
	By:	Stonepeak Associates LLC, its general partner
	By:	Stonepeak GP Holdings LP, its sole Member
	By:	Stonepeak GP Investors LLC, its general partner
	By:	Stonepeak GP Investors Manager LLC, its managing member
	

By:
	

/s/ Jack Howell     

		Name: Jack Howell

		Title:    Senior Managing Director

Signature Page to Amendment No. 8 to
Warrant Exercisable for Junior SecuritiesExhibit 4.1

      

      
        
          

          

          Second Supplemental Indenture (this “Supplemental Indenture”), dated as of August 1, 2022, among FTAI Infrastructure Inc., a Delaware corporation (the “Issuer”), the guarantors party hereto (the “Guarantors”)

            and U.S. Bank Trust Company, National Association, as trustee (the “Trustee”) and as notes collateral agent (the “Notes Collateral Agent”).

           

          W I T N E S S E T H

           

          WHEREAS, FTAI Infra Escrow Holdings, LLC, a Delaware limited liability company (the “Escrow Issuer”), the Trustee and the Notes Collateral Agent have heretofore executed and delivered an indenture dated as
            of July 7, 2022 (as amended, supplemented or otherwise modified from time to time, the “Initial Indenture”), providing for the issuance of an unlimited aggregate principal amount of 10.500% Senior Secured Notes due 2027 (the “Notes”).

           

          WHEREAS, as of the Escrow Release Date (as defined in the Initial Indenture), the Escrow Issuer has merged with and into the Issuer, with the Issuer surviving, assuming and succeeding the obligations of the Escrow
            Issuer by operation of law, including the obligations of the Escrow Issuer under the Notes and the Indenture;

           

          WHEREAS, the Initial Indenture permits each of the foregoing the transactions (including, without limitation, the merger of the Escrow Issuer with and into the Issuer), provided that, on the consummation of the
            merger on the Escrow Release Date, the Issuer and the Guarantors shall execute and deliver to the Trustee a supplemental indenture pursuant to which (x) the Issuer shall expressly and unconditionally assume the Escrow Issuer’s obligations under
            the Notes and the Initial Indenture and (y) each of the Guarantors shall expressly and unconditionally guarantee, on a joint and several basis, all of the Escrow Issuer’s obligations (as assumed by the Issuer) under the Notes and the Initial
            Indenture on the terms and conditions set forth herein and under the Indenture (the “Guarantee”); and

           

          WHEREAS, Section 9.01 of the Initial Indenture provides that, among other things, the Escrow Issuer, the Guarantors, the Trustee and the Notes Collateral Agent may amend or supplement the Initial Indenture without
            the consent of any Holder of the Notes.

           

          NOW THEREFORE, in consideration of the foregoing and for other good and valuable consideration, the receipt of which is hereby acknowledged, the parties mutually covenant and agree for the equal and ratable benefit
            of the Holders of the Notes as follows:

           

          (1)          Capitalized Terms.  Capitalized terms used herein without definition shall have the meanings assigned to them in the Initial Indenture.

           

          (2)          Agreement to be Bound; Guarantee.

           

          (a)          On the merger of the Escrow Issuer with and into the Issuer on the Escrow Release Date, the Issuer hereby agrees to unconditionally assume the Escrow Issuer’s obligations with
            respect to the Notes and the Initial Indenture and to be bound by all other applicable provisions of the Notes and the Initial Indenture and to perform all of the obligations and agreements of the “Issuer” under the Notes and the Initial
            Indenture as if it was in effect with respect to the Issuer since the Escrow Release Date.

           

          
            
              

          

          (b)          Each Guarantor by executing this Supplemental Indenture agrees to be a Guarantor (as defined in the Initial Indenture referred to above) under the Indenture for all purposes thereof
            and as such will have all of the rights and be subject to all of the obligations and agreements of a “Guarantor” under the Indenture, including but not limited to the obligations and agreements in Article X thereof.

           

          (3)          Governing Law.  THIS SUPPLEMENTAL INDENTURE WILL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO CONFLICTS OF LAWS PRINCIPLES THEREOF TO THE
            EXTENT THAT THE APPLICATION OF THE LAW OF ANOTHER JURISDICTION WOULD BE REQUIRED THEREBY.

           

          (4)          Counterparts.  This Supplemental Indenture may be signed in counterparts (which may include counterparts delivered by any standard form of telecommunication), each of which shall be an original
            and all of which together shall constitute one and the same instrument.  Any signature to this Supplemental Indenture may be delivered by facsimile, electronic mail (including pdf) or any electronic signature complying with the U.S. Federal
            ESIGN Act of 2000 or the New York Electronic Signature and Records Act or other transmission method and any counterpart so delivered shall be deemed to have been duly and validly delivered and be valid and effective for all purposes to the
            fullest extent permitted by applicable law. Each of the parties hereto represents and warrants to the other parties that it has the corporate or other capacity and authority to execute this Supplemental Indenture through electronic means and
            there are no restrictions for doing so in that party’s constitutive documents.

           

          (5)          Effect of Headings.  The Section headings herein are for convenience of reference only, and are not to be considered part of this Supplemental Indenture and shall in no way modify or restrict
            any of the terms or provisions.

           

          (6)          The Trustee and the Notes Collateral Agent.  Neither the Trustee nor the Notes Collateral Agent shall be responsible in any manner whatsoever for or in respect of the validity or sufficiency of
            this Supplemental Indenture or for or in respect of the recitals contained herein, all of which recitals are made solely by the Issuer and the Guarantors.

           

          (7)          Effectiveness of Supplemental Indenture.  This Supplemental Indenture shall become effective immediately upon its execution and delivery by the Issuer, the Guarantors, the Trustee and the Notes
            Collateral Agent.

           

          (8)          Benefits Acknowledged.  The Guarantors’ Guarantees are subject to the terms and conditions set forth in the Initial Indenture.  The Issuer acknowledges that it will receive direct and indirect
            benefits from the financing arrangements contemplated by the Initial Indenture and this Supplemental indenture and that the assumption made by it pursuant to this Supplemental Indenture is knowingly made in contemplation of such benefits.  Each
            Guarantor acknowledges that it will receive direct and indirect benefits from the financing arrangements contemplated by the Initial Indenture and this Supplemental Indenture and that the guarantee and waivers made by it pursuant to this
            Guarantee are knowingly made in contemplation of such benefits.

           

          (9)          Ratification of Initial Indenture; Supplemental Indentures Part of Indenture.  Except as expressly amended hereby, the Initial Indenture is in all respects ratified and confirmed, and all the
            terms, conditions and provisions thereof shall remain in full force and effect.  This Supplemental Indenture shall form a part of the Initial Indenture for all purposes, and each Holder of Notes heretofore or hereafter authenticated and
            delivered shall be bound hereby and entitled to the benefits hereof.

           

          
            
              

          

          IN WITNESS WHEREOF, the parties hereto have caused this Supplemental Indenture to be duly executed, all as of the date first above written.

           

          	 	
                  FTAI INFRASTRUCTURE INC.

                
	 	 
	 	
                  By

                	
                  /s/ Kenneth Nicholson

                
	 	 	
                  Name: 

                  

                	
                  Kenneth Nicholson

                
	 	 	
                  Title:

                	
                  Chief Executive Officer and President

                
	 	 	 
	 	
                  PERCY ACQUISITION LLC

                
	 	 
	 	
                  By:

                	
                  /s/ Joseph P. Adams, Jr.

                
	 	 	
                  Name:

                	
                  Joseph P. Adams, Jr.

                
	 	 	
                  Title:

                	
                  President

                
	 	 	 
	 	
                  TRANSTAR, LLC

                
	 	 
	 	
                  By:

                	
                  /s/ Matthew Fearing

                
	 	 	
                  Name:

                	
                  Matthew Fearing

                
	 	 	
                  Title:

                	
                  Secretary

                
	 	 	 
	 	
                  DELRAY CONNECTING RAILROAD COMPANY

                
	 	 
	 	
                  By:

                	
                  /s/ Matthew Fearing

                
	 	 	
                  Name:

                	
                  Matthew Fearing

                
	 	 	
                  Title:

                	
                  Secretary

                
	 	 	 
	 	
                  GARY RAILWAY COMPANY

                
	 	 
	 	
                  By:

                	
                  /s/ Matthew Fearing

                
	 	 	
                  Name:

                	
                  Matthew Fearing

                
	 	 	
                  Title:

                	
                  Secretary

                

          

          

          
            [Signature Page to Second Supplemental Indenture]

          

          
            
              

          

          	 	
                  TRACKS TRAFFIC AND MANAGEMENT SERVICES, INC.

                
	 	 
	 	
                  By:

                	
                  /s/ Matthew Fearing

                
	 	 	
                  Name:

                	
                  Matthew Fearing

                
	 	 	
                  Title:

                	
                  Secretary

                
	 	 	 
	 	
                  TEXAS & NORTHERN RAILWAY COMPANY

                
	 	 
	 	
                  By:

                	
                  /s/ Matthew Fearing

                
	 	 	
                  Name:

                	
                  Matthew Fearing

                
	 	 	
                  Title:

                	
                  Secretary

                
	 	 	 
	 	
                  BIRMINGHAM SOUTHERN RAILROAD COMPANY

                
	 	 
	 	
                  By:

                	
                  /s/ Matthew Fearing

                
	 	 	
                  Name:

                	
                  Matthew Fearing

                
	 	 	
                  Title:

                	
                  Secretary

                
	 	 	 
	 	
                  FAIRFIELD SOUTHERN COMPANY, INC.

                
	 	 
	 	
                  By:

                	
                  /s/ Matthew Fearing

                
	 	 	
                  Name:

                	
                  Matthew Fearing

                  

                
	 	 	
                  Title:

                	
                  Secretary

                
	 	 	 
	 	
                  UNION RAILROAD COMPANY, LLC

                
	 	 
	 	
                  By:

                	
                  /s/ Matthew Fearing

                
	 	 	
                  Name:

                	
                  Matthew Fearing

                
	 	 	
                  Title:

                	
                  Secretary

                

          

          

          
            [Signature Page to Second Supplemental Indenture]

          

          
            
              

          

          	 	
                  THE LAKE TERMINAL RAILROAD COMPANY

                
	 	 
	 	
                  By:

                	
                  /s/ Matthew Fearing

                
	 	 	
                  Name:

                	
                  Matthew Fearing

                
	 	 	
                  Title:

                	
                  Secretary

                
	 	 	 
	 	
                  LORAIN NORTHERN COMPANY

                
	 	 
	 	
                  By:

                	
                  /s/ Matthew Fearing

                
	 	 	
                  Name:

                	
                  Matthew Fearing

                
	 	 	
                  Title:

                	
                  Secretary

                

           

          

          
            [Signature Page to Second Supplemental Indenture]

          

          
            
              

          

          	 	
                  U.S. BANK TRUST COMPANY, NATIONAL ASSOCIATION, as Trustee and as Notes Collateral Agent

                
	 	 
	 	
                  By

                	
                  /s/ Joshua A. Hahn

                
	 	 	
                  Name:

                	
                  Joshua A. Hahn

                
	 	 	
                  Title:

                	
                  Vice President

                

          

          

          
            [Signature Page to Second Supplemental Indenture]

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