Document:

Exhibit

Exhibit 10.2
July 21, 2016
Copart, Inc. 
14185 Dallas Parkway 
Dallas, TX 75254 

		
	Re:
	Amendment No. 1 to Note Purchase Agreement

Ladies and Gentlemen:
Reference is made to that certain Note Purchase Agreement, dated as of December 3, 2014 (the “Note Agreement”), among Copart, Inc., a Delaware corporation (the “Company”), on the one hand, and the Purchasers named on Schedule B attached thereto, on the other hand.  Capitalized terms used herein and not otherwise defined herein shall have the meanings assigned to such terms in the Note Agreement.
The Company has requested that the Required Holders make certain amendments to the Note Agreement as set forth below.  Subject to the terms and conditions hereof, and effective upon the satisfaction of the conditions set forth herein, the Required Holders are willing to agree to the Company’s request as set forth below.  Accordingly, and in accordance with the provisions of Section 17.1 of the Note Agreement, the parties hereto agree as follows:
SECTION 1.    Amendments.  From and after the Effective Date (as defined in Section 3 below), the Note Agreement is amended as follows: 
1.1.    Section 7.2(a) of the Note Agreement is hereby amended and restated in its entirety to read as follows: 
(a)     at each time financial statements are delivered pursuant to Sections 7.1(a) or (b), (i) a duly completed Officer’s Compliance Certificate signed by the chief executive officer, chief financial officer, vice president of finance treasurer or controller of the Company, (ii) a report containing management’s discussion and analysis of such financial statements and (iii) a calculation of the Available Amount; provided, however, that such calculation of the Available Amount shall only be required annually (with financial statements delivered pursuant to Section 7.1(a));
1.2.    Section 10.1(i) of the Note Agreement is hereby amended and restated in its entirety to read as follows: 

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(i)    Additional Pari Passu Debt, provided that the total aggregate principal amount for all such Additional Pari Passu Debt when combined with the aggregate outstanding amount of any Incremental Loan Commitments (under and as defined in the Credit Agreement) shall not (as of any date of incurrence thereof) exceed $250,000,000 or, if greater, an amount equal to the amount of additional Indebtedness that would not cause the Consolidated Total Net Leverage Ratio as of the four consecutive fiscal quarter period most recently ended prior to the incurrence of such additional Indebtedness, calculated on a Pro Forma Basis after giving effect to the incurrence of such additional Indebtedness (assuming any Incremental Revolving Credit Commitment (as defined in the Credit Agreement is fully drawn but without netting the cash proceeds of such Indebtedness), to exceed 3.25 to 1.00;
1.3.    Section 10.1(o) of the Note Agreement is hereby amended and restated in its entirety to read as follows:
(o)    other unsecured Indebtedness of the Transaction Parties so long as (i) no Default or Event of Default shall exist or result therefrom and (ii) before and after giving effect thereto on a Pro Forma Basis the Consolidated Total Net Leverage Ratio of the Company and its Subsidiaries (without any deductions with respect to the cash proceeds of any such Indebtedness in calculating net Indebtedness) is less than 3.50 to 1.00.  
1.4.    Section 10.2(y) of the Note Agreement is hereby amended and restated in its entirety to read as follows: 
(y)    other Liens securing Indebtedness or other obligations permitted hereunder in an aggregate principal amount at any time outstanding not exceeding $15,000,000.
1.5.    Clauses (n) and (o) of Section 10.3 of the Note Agreement are hereby amended and restated in their entirety to read as follows: 
(n)    Investments so long as the Consolidated Total Net Leverage Ratio both before and after giving effect to any such Investment on a Pro Forma Basis is less than 3.25 to 1.00; provided, that, (i) both before and after giving effect to any such Investment pursuant to this clause on a Pro Forma Basis (A) Minimum Liquidity shall be not less than $75,000,000 and (B) no Default or Event of Default shall have occurred and be continuing and (ii) this clause (n) shall not be used to consummate Acquisitions; and
(o)    Investments so long as the Consolidated Total Net Leverage Ratio both before and after giving effect to any such Investment on a Pro Forma Basis is less than 3.50 to 1.00, in an aggregate amount not to exceed the Available Amount; provided, that, (i) both before and after giving effect to any such Investment pursuant to this clause on a Pro Forma Basis (A) Minimum Liquidity shall be not less than $75,000,000 and (B) no Default or Event of Default shall have occurred and be continuing and (ii) this clause (o) shall not be used to consummate Acquisitions.   

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1.6.    Section 10.5(f) of the Note Agreement is hereby amended and restated in its entirety to read as follows: 
(f)    Asset Dispositions not otherwise permitted pursuant to this Section; provided that (i) at the time of such Asset Disposition, no Default or Event of Default shall exist or would result from such Asset Disposition, (ii) such Asset Disposition is made for fair market value and the consideration received shall be no less than 75% in cash or Cash Equivalents, and (iii) the aggregate fair market value of all property disposed of in reliance on this clause (f) shall not exceed 15.0% of Consolidated Total Assets of the Company and its Subsidiaries (measured as of the end of the most recent fiscal quarter) during any Fiscal Year.
1.7.    Section 10.6(e) of the Note Agreement is hereby amended and restated in its entirety to read as follows: 
(e)    so long as no Default or Event of Default has occurred and is continuing or would result therefrom, the Company may declare and make (and each Subsidiary of the Company may declare and make to enable the Company to do the same) Restricted Payments not otherwise permitted by this Section, (i) so long as the Consolidated Total Net Leverage Ratio both before and after giving effect to any such Restricted Payment on a Pro Forma Basis is less than 3.25 to 1.00, in an unlimited amount, (ii) if clause (i) is not available, so long as the Consolidated Total Net Leverage Ratio both before and after giving effect to any such Restricted Payment on a Pro Forma Basis is less than 3.50 to 1.00, in an aggregate amount not to exceed the Available Amount and (iii) if neither clause (i) or clause (ii) is available, in an aggregate amount not to exceed $50,000,000; provided, that, Minimum Liquidity shall be not less than $75,000,000 both before and after giving effect to any such Restricted Payment pursuant to this clause (e) on a Pro Forma Basis;
1.8.    Section 10.15(a) of the Note Agreement is hereby amended and restated in its entirety to read as follows: 
(a)    Consolidated Total Net Leverage Ratio.  As of the last day of any fiscal quarter, the Transaction Parties will not permit the Consolidated Total Net Leverage Ratio to be greater than 3.75 to 1.00.
1.9.    Section 11(i) of the Note Agreement is hereby amended and restated in its entirety to read as follows: 
(i)    one or more final judgments or orders for the payment of money (net of any amounts paid or fully covered by independent third party insurance as to which the relevant insurance company does not dispute coverage) aggregating in excess of the Threshold Amount, including, without limitation, any such final order enforcing a binding arbitration decision, are rendered against one or more of the Company and its Subsidiaries and which judgments are not, within 60 days after entry thereof, satisfied in full, paid in full, bonded, discharged or stayed pending appeal, or are not discharged within 60 days after the expiration of such stay; or

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1.10.    The definition of “Asset Disposition” contained in Schedule A to the Note Agreement is hereby amended by deleting the reference to “$5,000,000” contained therein and inserting “$10,000,000” in lieu thereof. 
1.11.    Clause (c) of the definition of “Cash Equivalents” contained in Schedule A to the Note Agreement is hereby amended by deleting the reference to “six months” contained therein and inserting “two years” in lieu thereof. 
1.12.    The definition of “Minimum Liquidity” contained in Schedule A to the Note Agreement is hereby amended by deleting the reference to “66 2/3%” contained therein and inserting “85%” in lieu thereof.
1.13.    Schedule A to the Note Agreement is amended by inserting or amending and restating, as applicable, the following definitions:  
“Additional Pari Passu Debt” means any Indebtedness incurred by any Transaction Party so long as (a) such Indebtedness is secured equally and ratably by the Collateral and the holders of such Indebtedness or a collateral agent for such holders shall have become parties to the Intercreditor Agreement as “Additional Pari Passu Lenders” in accordance with the terms thereof, (b) the representations, covenants and events of default in respect of such Indebtedness shall be no more restrictive (taken as a whole) on the applicable Transaction Party than the representations, covenants and Events of Default contained in this Agreement (as determined by the Company in good faith), (c) the final maturity date of such Indebtedness shall be no earlier than July 21, 2021 and (d) such Indebtedness shall constitute Additional Pari Passu Debt (under and as defined in the Credit Agreement (as in effect of the Closing Date)).
“Available Amount” means, on any date of determination, an aggregate amount equal to the sum of (a) $200,000,000 plus (b) 50% of cumulative Consolidated Net Income for each fiscal quarter (beginning with the fiscal quarter ended July 31, 2016) plus (c) to the extent not already included in the calculation of Consolidated Net Income, the aggregate amount of all dividends, returns, interest, profits, distributions, income and similar amounts (in each case, to the extent made in cash or Cash Equivalents) received by the Company or any Subsidiary from any Investment to the extent such Investment was made pursuant to Section 10.3(o) during the period from and including the Business Day immediately following the First Amendment Effective Date through and including the date of any determination of the Available Amount minus (d) the amount of any Investments made pursuant to Section 10.3(o) and Restricted Payments made pursuant to Section 10.6(e)(ii).
“Bank Agent” means Bank of America, N.A. (as successor to Wells Fargo Bank, National Association), as agent for the lenders under the Credit Agreement, and its successors and assigns in that capacity 
“Collateral Agent” means Bank of America, N.A. (as successor to Wells Fargo Bank, National Association), in its capacity as Collateral Agent under the Intercreditor Agreement and the Security Documents, or any successor Collateral Agent.  

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“Consolidated EBITDA” means, for any period, the sum of the following determined on a Consolidated basis, without duplication, for the Company and its Subsidiaries in accordance with GAAP: (a) Consolidated Net Income for such period plus (b) the sum of the following, without duplication, to the extent deducted in determining Consolidated Net Income for such period: (i) the provision for federal, state, local and foreign income taxes payable by the Company and its Subsidiaries for such period, including, without limitation, any franchise taxes or other taxes based on income, profits or capital and all other taxes that are included in the provision for income tax line item on the consolidated income statement of the Company and its Subsidiaries for such period, (ii) Consolidated Interest Expense, (iii) amortization, depreciation and other non-cash charges or expenses (except to the extent that such non-cash charges are reserved for cash charges to be taken in the future), (iv) extraordinary losses (excluding extraordinary losses from discontinued operations), (v) unusual or nonrecurring losses in an aggregate amount for all add-backs pursuant to this clause (v) not to exceed an amount equal to 15% of Consolidated EBITDA for the period of four consecutive fiscal quarters most recently ended prior to the date of determination for which financial statements have been provided pursuant to this Agreement (determined after giving effect to any increase thereto pursuant to this clause (v)), (vi) cash acquisition related expenses, whether or not any acquisition is successful, and cash restructuring, integration and related charges or expenses (which for the avoidance of doubt, include retention, severance, systems establishment costs, contract termination costs, future lease commitments, and costs to consolidate facilities and relocate employees) in an aggregate amount or all add-backs pursuant to this clause (vi) not to exceed an amount equal to 10% of Consolidated EBITDA for the period of four consecutive fiscal quarters most recently ended prior to the date of determination for which financial statements have been provided pursuant to this Agreement and (vii) Transaction Costs, less (c) the sum of the following, without duplication, to the extent included in determining Consolidated Net Income for such period: (i) any unusual, non-recurring or extraordinary gains and (ii) non-cash gains or non-cash items increasing Consolidated Net Income.  For purposes of this Agreement, Consolidated EBITDA shall be adjusted on a Pro Forma Basis.
“Consolidated Interest Expense” means, for any period, the sum of the following determined on a Consolidated basis, without duplication, for the Company and its Subsidiaries in accordance with GAAP, (a) cash interest expense (including, without limitation, cash interest expense attributable to Capital Lease Obligations and all net cash payment obligations pursuant to Hedge Agreements), premium payments, debt fees, charges and related expenses incurred in connection with the deferred purchase price of assets, for such period less (b) cash interest income.
“Consolidated Net Income” means, for any period, the net income (or loss) of the Company and its Subsidiaries for such period, determined on a Consolidated basis, without duplication, in accordance with GAAP; provided, that in calculating Consolidated Net Income of the Company and its Subsidiaries for any period, there shall be excluded (a) the net income (or loss) of any Person (other than a Subsidiary which shall be subject to clause (c) below), in which the Company or any of its Subsidiaries has a joint interest with a third party, except to the extent such net income is actually paid in cash to the Company or any 

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of its Subsidiaries by dividend or other distribution during such period, (b) the net income (or loss) of any Person accrued prior to the date it becomes a Subsidiary of the Company or any of its Subsidiaries or is merged into or consolidated with the Company or any of its Subsidiaries or that Person’s assets are acquired by the Company or any of its Subsidiaries except to the extent included pursuant to the foregoing clause (a), (c) the net income (if positive) of any Subsidiary (other than any Subsidiary Guarantor) to the extent that the declaration or payment of dividends or similar distributions by such Subsidiary to the Company or any of its Subsidiaries of such net income is not at the time permitted by operation of the terms of its charter or any agreement, instrument, judgment, decree, order, statute, rule or governmental regulation applicable to such Subsidiary and (d) any gain or loss from Asset Dispositions during such period.
“Consolidated Total Net Leverage Ratio” means, as of any date of determination, the ratio of (a) Consolidated Total Indebtedness on such date minus the sum of (i) 100% of the amount of unrestricted cash and Cash Equivalents on the balance sheet of the Company on such date with respect to the Company and its Domestic Subsidiaries and (ii) 85% of the amount of unrestricted cash and Cash Equivalents on the balance sheet of the Company on such date with respect to its Foreign Subsidiaries to (b) Consolidated EBITDA for the period of four consecutive fiscal quarters ending on or immediately prior to such date.
“Credit Agreement” means the Credit Agreement dated as of December 3, 2014, by and among the Company, the financial institutions party thereto as lenders and the Bank Agent, as amended by the First Amendment dated as of March 15, 2016 and the Second Amendment dated as of July 21, 2016 and as further amended, restated, supplemented, modified, refinanced or replaced from time to time.
“First Amendment Effective Date” means July 21, 2016.
“Pari Passu Lien Indebtedness” means any Indebtedness that is incurred under clauses (i) or (j) of Section 10.1 and any refinancings, renewals, refundings or extensions thereof which are permitted by the terms of this Agreement.
“Permitted Acquisition” means any acquisition by the Company or any Subsidiary in the form of the acquisition of all or substantially all of the assets, business or a line of business, or at least a majority of the outstanding Equity Interests which have the ordinary voting power for the election of directors of the board of directors (or equivalent governing body) (whether through purchase, merger or otherwise), of any other Person (each, an “Acquisition”) if each such acquisition meets all of the following requirements:
(a)    such Acquisition has been approved by the board of directors (or equivalent governing body) of the Person to be acquired;
(b)    the Person or business to be acquired shall be in a line of business permitted pursuant to Section 10.11; 

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(c)    if such transaction is a merger or consolidation involving the Company or a Subsidiary Guarantor, the Company or a Subsidiary Guarantor (or, in the case of a transaction not involving the Company, a Person that will become a Subsidiary Guarantor upon such merger or consolidation) shall be the surviving Person and no Change of Control shall have been effected thereby;
(d)    (i) the Company is in compliance on a Pro Forma Basis (as of the date of the Acquisition and after giving effect thereto and any Indebtedness incurred in connection therewith) with each covenant contained in Section 10.15 and (ii) the Consolidated Total Net Leverage Ratio calculated on a Pro Forma Basis (as of the proposed closing date of the Acquisition and after giving effect thereto and any Indebtedness incurred in connection therewith (but without deduction for cash proceeds of any such Indebtedness)) shall be no greater than 3.50 to 1.00;
(e)    the holders of Notes shall have received, for any such Acquisition with total consideration in excess of $50,000,000, (1) audited financial statements (or, if unavailable, management-prepared financial or pro forma financial statements) of the target for its two most recent fiscal years and for any fiscal quarters ended within the fiscal year to date and (2) an Officer’s Compliance Certificate for the most recent fiscal quarter end preceding such Acquisition for which financial statements are available demonstrating compliance with clause (d) above;
(f)    no Default or Event of Default shall have occurred and be continuing both before and after giving effect to such Acquisition and any Indebtedness incurred in connection therewith; and
(g)    both before and after giving effect to the Acquisition on a Pro Forma Basis, Minimum Liquidity shall be at least $75,000,000.
“Threshold Amount” means $50,000,000.
1.14.    Schedule A to the Note Agreement is amended by deleting the following definitions in their entirety: 
“Excess Cash Flow”
“Working Capital”
SECTION 2.    Representations and Warranties.  The Company and each Subsidiary Guarantor represents and warrants that (a) the execution and delivery of this letter agreement has been duly authorized by all necessary corporate or limited liability company action on behalf of the Company and each Subsidiary Guarantor and this letter has been executed and delivered by a duly authorized officer of the Company and each Subsidiary Guarantor, (b) each representation and warranty set forth in Section 5 of the Note Agreement and the other Transaction Documents to which it is a party, is true and correct as of the date of execution and delivery of this letter by the Company and each Subsidiary Guarantor with the same effect as if made on such date (except to 

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the extent such representations and warranties expressly refer to an earlier date, in which case they were true and correct as of such earlier date), (c) no Default or Event of Default exists or has occurred and is continuing on the date hereof, and (d) neither the Company nor any Subsidiary has paid or agreed to pay, and neither the Company nor any Subsidiary will pay or agree to pay, any fees or other consideration for or with respect to the amendment to the Credit Agreement described in Section 3.1(ii) hereof, other than upfront fees, arrangement fees and commitment fees relating to the revolving commitments thereunder and reimbursement of out-of-pocket fees and expenses of legal counsel.
SECTION 3.    Conditions Precedent.  The amendments set forth in Section 1 of this letter shall become effective upon satisfaction of each of the following conditions (the “Effective Date”):
3.1.    Documents.  Each holder of a Note shall have received original counterparts or, if satisfactory to such holders, certified or other copies of all of the following, each duly executed and delivered by the party or parties thereto, in form and substance satisfactory to such holders, dated the date hereof unless otherwise indicated, and on the date hereof in full force and effect with no event having occurred and being then continuing that would constitute a default thereunder or constitute or provide the basis for the termination thereof:
(i)    counterparts of this letter executed by the Company, each Subsidiary Guarantor and the Required Holders; 
(ii)    a copy of the executed amendment to the Credit Agreement providing for amendments under the Credit Agreement substantially the same as provided in this letter, and such amendment shall be in full force and effect; and
(iii)    a copy of the executed Appointment Agreement of Successor Collateral Agent, which shall be in form and substance satisfactory to the Required Holders and in full force and effect.
3.2.    Fees and Expenses.  Without limiting the provisions of Section 15 of the Note Agreement, the Company shall have paid the reasonable and documented fees, charges and disbursements of Schiff Hardin LLP, special counsel to the holders of the Notes.
3.3.    Proceedings.  All corporate and other proceedings taken or to be taken in connection with the transactions contemplated hereby and all documents incident thereto shall be reasonably satisfactory in substance and form to the holders of the Notes, and the holders of the Notes shall have received all such counterpart originals or certified or other copies of such documents as it may reasonably request.
SECTION 4.    Reference to and Effect on Note Agreement; Ratification of Transaction Documents.  Upon the effectiveness of the amendments in Section 1 of this letter, each reference to the Note Agreement in any other document, instrument or agreement shall mean and be a reference to the Note Agreement as modified by this letter agreement.  Except as specifically set forth in Section 1 hereof, the Note Agreement shall remain in full force and effect and is hereby ratified and confirmed in all respects.  Except as expressly amended hereby, the Note Agreement and the 

8

other Transaction Documents are hereby ratified and confirmed in all respects and shall continue in full force and effect.  Except as specifically stated in this letter agreement, the execution, delivery and effectiveness of this letter agreement shall not (a) amend the Note Agreement, any Note or any other Transaction Document, (b) operate as a waiver of any right, power or remedy of any holder of the Notes or (c) constitute a waiver of, or consent to any departure from, any provision of the Note Agreement, any Note or any other Transaction Document at any time.  The execution, delivery and effectiveness of this letter agreement shall not be construed as a course of dealing or other implication that any holder of the Notes has agreed to or is prepared to grant any consents or agree to any amendments to the Note Agreement or any other Transaction Document in the future, whether or not under similar circumstances.  The Company and each Subsidiary Guarantor acknowledges that the holders of the Notes shall not be obligated to agree to any amendments of the Note Agreement other than as expressly provided herein, or to enter into any waivers or other amendments on any future occasion. 
SECTION 5.    Reaffirmation.  Each Subsidiary Guarantor hereby consents to the foregoing amendments to the Note Agreement and hereby ratifies and reaffirms all of its payment and performance obligations, contingent or otherwise, under each Subsidiary Guaranty and each other Transaction Document, after giving effect to such amendments.  Each Subsidiary Guarantor hereby acknowledges that, notwithstanding the foregoing amendments, each Subsidiary Guaranty and each other Transaction Document remains in full force and effect and is hereby ratified and confirmed.  Without limiting the generality of the foregoing, each Subsidiary Guarantor agrees and confirms that each Subsidiary Guaranty continues to guaranty the Guarantied Obligations (as defined in the Subsidiary Guaranty) arising under or in connection with the Note Agreement, as amended by this letter agreement, or any of the Notes.  
SECTION 6.    Expenses.  The Company hereby confirms its obligations under the Note Agreement, whether or not the transactions hereby contemplated are consummated, to pay, promptly after request by any holder of the Notes, all reasonable out-of-pocket costs and expenses, including attorneys’ fees and expenses, incurred by any holder of Notes in connection with this letter agreement or the transactions contemplated hereby, in enforcing any rights under this letter agreement, or in responding to any subpoena or other legal process or informal investigative demand issued in connection with this letter agreement or the transactions contemplated hereby.  The obligations of the Company under this Section 6 shall survive transfer by any holder of any Note and payment of any Note.
SECTION 7.    Governing Law.  THIS LETTER AGREEMENT SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH, AND THE RIGHTS OF THE PARTIES SHALL BE GOVERNED BY, THE LAW OF THE STATE OF NEW YORK (EXCLUDING ANY CONFLICTS OF LAW RULES WHICH WOULD OTHERWISE CAUSE THIS LETTER AGREEMENT TO BE CONSTRUED OR ENFORCED IN ACCORDANCE WITH, OR THE RIGHTS OF THE PARTIES TO BE GOVERNED BY, THE LAWS OF ANY OTHER JURISDICTION).
SECTION 8.    Counterparts; Section Titles.  This letter agreement may be executed in any number of counterparts and by different parties hereto in separate counterparts, each of which 

9

when so executed and delivered shall be deemed to be an original and all of which when taken together shall constitute but one and the same instrument.  Delivery of an executed counterpart of a signature page to this letter agreement by facsimile or electronic transmission shall be effective as delivery of a manually executed counterpart of this letter agreement. The section titles contained in this letter agreement are and shall be without substance, meaning or content of any kind whatsoever and are not a part of the agreement between the parties hereto.
[signature page follows]

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Very truly yours,
THE PRUDENTIAL INSURANCE COMPANY
  OF AMERICA

By:  /s/ Tim Laczkowski____________________
Vice President

THE GIBRALTAR LIFE INSURANCE CO.,
  LTD.

By:    Prudential Investment Management Japan
Co., Ltd., as Investment Manager

By:    PGIM, Inc.,
as Sub-Adviser

By:  /s/ Tim Laczkowski_______________
Vice President

THE PRUDENTIAL LIFE INSURANCE
  COMPANY, LTD.

By:    Prudential Investment Management (Japan),
Inc., as Investment Manager

By:    PGIM, Inc.,
as Sub-Adviser

By:  _/s/ Tim Laczkowski_______________
Vice President

Amendment No. 1 to Note Purchase Agreement  
(Copart, Inc.)

 

UNITED OF OMAHA LIFE INSURANCE
  COMPANY

By:    Prudential Private Placement Investors,
L.P. (as Investment Advisor)

By:    Prudential Private Placement Investors, Inc.
(as its General Partner)

By:  /s/ Tim Laczkowski_______________
Vice President

FARMERS INSURANCE EXCHANGE

By:    Prudential Private Placement Investors,
L.P. (as Investment Advisor)

By:    Prudential Private Placement Investors, Inc.
(as its General Partner)

By:  /s/ Tim Laczkowski________________
Vice President

MID CENTURY INSURANCE COMPANY

By:    Prudential Private Placement Investors,
L.P. (as Investment Advisor)

By:    Prudential Private Placement Investors, Inc.
(as its General Partner)

By:  /s/ Tim Laczkowski________________
Vice President

Amendment No. 1 to Note Purchase Agreement  
(Copart, Inc.)

 

PRUDENTIAL ARIZONA REINSURANCE
  TERM COMPANY

By:    PGIM, Inc.,
as investment manager

    
By:  /s/ Tim Laczkowski_______________
Vice President

THE LINCOLN NATIONAL LIFE INSURANCE
  COMPANY

By:    Prudential Private Placement Investors,
L.P. (as Investment Advisor)

By:    Prudential Private Placement Investors, Inc.
(as its General Partner)

By:  /s/ Tim Laczkowski________________
Vice President

ZURICH AMERICAN INSURANCE COMPANY

By:    Prudential Private Placement Investors,
L.P. (as Investment Advisor)

By:    Prudential Private Placement Investors, Inc.
(as its General Partner)

By:  /s/ Tim Laczkowski________________
Vice President

Amendment No. 1 to Note Purchase Agreement  
(Copart, Inc.)

 

FARMERS NEW WORLD LIFE INSURANCE
  COMPANY

By:    Prudential Private Placement Investors,
L.P. (as Investment Advisor)

By:    Prudential Private Placement Investors, Inc.
(as its General Partner)

By:  /s/ Tim Laczkowski_______________
Vice President

METROPOLITAN LIFE INSURANCE COMPANY 

FIRST METLIFE INVESTORS INSURANCE COMPANY

		
	By:
	Metropolitan Life Insurance Company, its Investment Manager

GENERAL AMERICAN LIFE INSURANCE COMPANY

		
	By:
	Metropolitan Life Insurance Company, its Investment Manager

METLIFE INSURANCE COMPANY USA

		
	By:
	Metropolitan Life Insurance Company, its Investment Manager

		
	By:
	/s/ John Willis     _______________

Name: John Willis
Title: Managing Director

Amendment No. 1 to Note Purchase Agreement  
(Copart, Inc.)

 

METROPOLITAN LIFE INSURANCE COMPANY, on behalf of its Separate Account 733

		
	By:
	MetLife Investment Management, LLC, Its Investment Manager

METROPOLITAN LIFE INSURANCE COMPANY, on behalf of its Separate Account 575

		
	By:
	MetLife Investment Management, LLC, Its Investment Manager

SYMETRA LIFE INSURANCE COMPANY

		
	By:
	White Mountains Advisors, LLC, as Investment Manager

		
	By:
	MetLife Investment Management, LLC, Its Sub-Investment Manager

UNION FIDELITY LIFE INSURANCE COMPANY

		
	By:
	MetLife Investment Management, LLC, Its Investment Adviser

		
	By:
	/s/ C. Scott Inglis__________________

Name:  C. Scott Inglis
Title:  Managing Director

Amendment No. 1 to Note Purchase Agreement  
(Copart, Inc.)

 

The foregoing Agreement is  
hereby accepted as of the  
date first above written. 

COPART, INC. 
 
 
By: /s/ Jeff Liaw_____________________________ 
Name:  Jeff Liaw     
Title:    Chief Financial Officer

COPART OF ARIZONA, INC.

By: /s/ William E. Franklin____________________
Name:    William E. Franklin                            
Title:     Chief Financial Officer                    

COPART OF ARKANSAS, INC.

By: /s/ William E. Franklin____________________
Name:    William E. Franklin                            
Title:     Chief Financial Officer                    

COPART OF CONNECTICUT, INC.

By: /s/ William E. Franklin____________________
Name:    William E. Franklin                            
Title:     Chief Financial Officer                    

COPART OF KANSAS, INC.

By: /s/ William E. Franklin____________________
Name:    William E. Franklin                            
Title:     Chief Financial Officer                    

COPART OF LOUISIANA, INC.

By: /s/ William E. Franklin____________________
Name:    William E. Franklin                            
Title:     Chief Financial Officer                    

Amendment No. 1 to Note Purchase Agreement  
(Copart, Inc.)

 

COPART OF MISSOURI, INC.

By: /s/ William E. Franklin____________________
Name:    William E. Franklin                            
Title:     Chief Financial Officer                    

COPART OF OKLAHOMA, INC.

By: /s/ William E. Franklin____________________
Name:    William E. Franklin                            
Title:     Chief Financial Officer                    

COPART OF TENNESSEE, INC.

By: /s/ William E. Franklin____________________
Name:    William E. Franklin                            
Title:     Chief Financial Officer                    

COPART OF WASHINGTON, INC.

By: /s/ William E. Franklin____________________
Name:    William E. Franklin                            
Title:     Chief Financial Officer                    

DALLAS COPART SALVAGE AUTO  
  AUCTIONS LIMITED PARTNERSHIP

By:     Copart of Texas, Inc., its general partner 

By: /s/ William E. Franklin____________________
Name:    William E. Franklin                            
Title:     Chief Financial Officer                    

Amendment No. 1 to Note Purchase Agreement  
(Copart, Inc.)

 

HOUSTON COPART SALVAGE AUTO 
  AUCTIONS LIMITED PARTNERSHIP

By:    Copart of Houston, Inc., its general partner 
 

By: /s/ William E. Franklin____________________
Name:    William E. Franklin                            
Title:     Chief Financial Officer                    

VB2, INC.

By: /s/ William E. Franklin____________________
Name:    William E. Franklin                            
Title:     Chief Financial Officer                    

Amendment No. 1 to Note Purchase Agreement  
(Copart, Inc.)EX-10.1

 Exhibit 10.1 

AMENDED AND RESTATED 

PARTICIPATION AGREEMENT 

BY AND AMONG 

ADMIRAL A HOLDING L.P., 

TE ADMIRAL A HOLDING L.P., 

COLT ADMIRAL A HOLDING L.P. 

AND 
 EXCO
OPERATING COMPANY, LP 
 DATED JULY 25, 2016 

			
	 Table of Contents
  
	  	
	ARTICLE 1 DEFINITIONS	  	1
		
	ARTICLE 2 TRANSFERS; TERM	  	3
	 2.1      Settlement Transfer
	  	3
	 2.2      EXCO Settlement Obligations
	  	3
	 2.3      KKR Settlement Obligations
	  	3
	 2.4      Term; Termination
	  	4
		
	ARTICLE 3 INTENTIONALLY OMITTED	  	4
		
	ARTICLE 4 INTENTIONALLY OMITTED	  	4
		
	ARTICLE 5 OPERATIONS	  	4
	 5.1      Operating Agreement
	  	4
		
	ARTICLE 6 INTENTIONALLY OMITTED	  	4
		
	ARTICLE 7 INTENTIONALLY OMITTED	  	4
		
	ARTICLE 8 INTENTIONALLY OMITTED	  	4
		
	ARTICLE 9 INTENTIONALLY OMITTED	  	4
		
	ARTICLE 10 INTENTIONALLY OMITTED	  	4
		
	ARTICLE 11 INTENTIONALLY OMITTED	  	5
		
	ARTICLE 12 NOTICES	  	5
	 12.1    Notices
	  	5
		
	ARTICLE 13 MISCELLANEOUS	  	6
	 13.1    Entire Agreement
	  	6
	 13.2    Amendments
	  	6
	 13.3    Waiver
	  	6
	 13.4    KKR Representative
	  	6
	 13.5    Applicable Law; Venue
	  	7
	 13.6    Jury Waiver
	  	7
	 13.7    Expenses
	  	8
	 13.8    Limitation on Damages
	  	8
	 13.9    Relationship of Parties
	  	8
	 13.10 Severability
	  	8
	 13.11 Successors and Assigns
	  	8
	 13.12 Announcements
	  	8
	 13.13 Confidentiality
	  	9
	 13.14 Further Assurances
	  	9
	 13.15 Counterpart Execution
	  	9
	 13.16 References and Construction
	  	9

  
 i 

 Exhibits and Schedules 

 

					
	Exhibit A	  	–	  	Leasehold Leases
	Exhibit B-1	  	–	  	Wells
	Exhibit B-2	  	–	  	Wellbore Leases
	Exhibit C-1	  	–	  	Leasehold Assignment
	Exhibit C-2	  	–	  	Wellbore Assignment
	Exhibit D	  	–	  	Operating Agreement

  
 ii 

 AMENDED AND RESTATED PARTICIPATION AGREEMENT 

THIS AMENDED AND RESTATED PARTICIPATION AGREEMENT is made and entered into this 25th day of July, 2016 (the “Execution
Date”), by and between Admiral A Holding L.P., a Delaware limited partnership (“Admiral A”), TE Admiral A Holding L.P., a Delaware limited partnership (“Admiral TE”), Colt Admiral A Holding L.P., a Delaware
limited partnership (“Admiral Colt”), and EXCO Operating Company, LP, a Delaware limited partnership (“EXCO”). Capitalized terms used herein that are not defined in the other provisions of this Agreement have
the respective meanings set forth in Article 1. EXCO, Admiral A, Admiral TE and Admiral Colt, may be referred to herein collectively as the “Parties” or individually as a “Party.”

RECITALS 
 A.
Admiral A, Admiral B Holding L.P., a Delaware limited partnership (“Admiral B”), and EXCO entered into that certain Participation Agreement, dated July 31, 2013 (as amended by Amendment No. 1 to the Participation Agreement,
effective July 31, 2013, and Amendment No. 2 to the Participation Agreement, effective June 1, 2015, the “Original PA”) to govern their rights and obligations with respect to the acquisition and development of certain oil and gas
leases. 
 B. Pursuant to (i) that certain assignment dated effective January 1, 2014, Admiral A assigned, among other assets, 3.19529% of
its interest in and to the Original PA to Admiral TE and 50.00000% of its interest in and to the Original PA to Admiral Colt and (ii) that certain Certificate of Merger dated effective July 1, 2014, Admiral Colt merged with and into Admiral B with
Admiral Colt being the sole surviving entity. 
 C. Admiral A, Admiral TE, Admiral Colt and EXCO have entered into that certain Confidential
Settlement Agreement and Release, dated as of the Execution Date (the “Settlement Agreement”), pursuant to which, among other things, the Parties desire to amend and restate the Original PA in its entirety as provided herein (as so
amended and restated, and as amended from time to time, this “Agreement”).
 NOW, THEREFORE, in consideration of the mutual
promises and covenants contained herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties hereby agree as follows: 

AGREEMENT 

ARTICLE 1 
 DEFINITIONS

 When not otherwise defined in the body of this Agreement, the following terms will have the below defined meaning: 

“Admiral A” has the meaning set forth in the Preamble. 

“Admiral B” has the meaning set forth in the Recitals. 

  
 1 

 “Admiral Colt” has the meaning set forth in the Preamble. 

“Admiral TE” has the meaning set forth in the Preamble. 

“Affiliate” means, with respect to any Person, any other Person that directly or indirectly Controls, is Controlled by or is
under common Control with such specified Person through one or more intermediaries or otherwise. 
 “Agreement” has the
meaning set forth in the Recitals. 
 “Assets” means the Leases and the Wells. 

“Business Day” means any calendar day except Saturdays, Sundays and U.S. federal holidays. 

“Control” and “Controlled by” mean the ability (directly or indirectly through one or more intermediaries)
to direct or cause the direction of the management or affairs of a Person, whether through the ownership of voting interests, by contract or otherwise. 

“Conveyed Properties” has the meaning set forth in the Settlement Agreement. 

“Delegated Matters” has the meaning set forth in Section 13.4. 

“EXCO” has the meaning set forth in the Preamble. 

“Execution Date” has the meaning set forth in the Preamble. 

“Governmental Authority” means any nation or state and any political subdivision thereof and any governmental, regulatory or
administrative agency, commission, body or other authority exercising or entitled to exercise any administrative, executive, judicial, legislative, police, regulatory or taxing authority or power; and any court or governmental tribunal. 

“KKR” means Kohlberg Kravis Roberts & Co. L.P., a limited partnership formed and existing under the Laws of Delaware.

 “KKR Parties” means Admiral A, Admiral TE and Admiral Colt, and “KKR Party” means any of them. 

“KKR Representative” has the meaning set forth in Section 13.4. 

“Laws” means all applicable statutes, writs, laws, rules, regulations, ordinances, orders, judgments, injunctions, awards,
determinations or decrees of a Governmental Authority. 
 “Leases” means any lease listed on Exhibit A or Exhibit
B-2. 
 “Operating Agreement” has the meaning set forth in Section 5.1. 

“Original PA” has the meaning set forth in the Recitals. 

  
 2 

 “Party” means EXCO, on the one hand, or the KKR Investors, on the other hand,
and “Parties” means all of them. 
 “Person” means any person, entity, partnership, joint venture, limited
liability company, corporation or other form of enterprise. 
 “Settlement Agreement” has the meaning set forth in the
Recitals. 
 “Termination Date” has the meaning set forth in Section 2.4. 

“Third Party Agreement” has the meaning set forth in Section 5.1. 

“Third Party” means any Person other than a Party or an Affiliate of a Party. 

“Well” means any well listed on Exhibit B-1. 

ARTICLE 2 
 TRANSFERS;
TERM 
 2.1 Settlement Transfer. The Parties acknowledge and agree that in connection (and contemporaneously)
with the execution of the Settlement Agreement and the amending and restating of the Original PA, EXCO has transferred the Conveyed Properties to KKR as provided herein. 

2.2 EXCO Settlement Obligations. On the Execution Date, EXCO has executed and acknowledged, where applicable, and
delivered (or caused to be delivered) to KKR Representative the following: 
 (a) the Leasehold Assignment in sufficient
counterparts to facilitate recording; 
 (b) the Wellbore Assignment in sufficient counterparts to facilitate recording; 

(c) the Operating Agreement; and 

(d) recording memoranda of the Operating Agreement in sufficient counterparts to facilitate recording. 

2.3 KKR Settlement Obligations. On the Execution Date, KKR or KKR Representative has executed and acknowledged,
where applicable, and delivered (or caused to be delivered) to EXCO, unless waived by EXCO, the following: 
 (a) the
Leasehold Assignment in sufficient counterparts to facilitate recording; 
 (b) the Wellbore Assignment in sufficient
counterparts to facilitate recording; 
 (c) the Operating Agreement; and 

(d) recording memoranda of the Operating Agreement in sufficient counterparts to facilitate recording. 

  
 3 

 2.4 Term; Termination. Unless otherwise agreed in writing by the
Parties, this Agreement shall terminate without further action of the Parties upon the date that is the 30th day following the Parties’ agreement (or deemed agreement) upon the Final
Settlement Statement (such date, the “Termination Date”). On or before the Termination Date, each Party shall execute, acknowledge and deliver in sufficient counterparts to facilitate recording, a termination of memorandum of
Participation Agreement. Following the Termination Date, this Agreement shall be void and have no further force and effect. 

ARTICLE 3 
 INTENTIONALLY
OMITTED 
 ARTICLE 4 

INTENTIONALLY OMITTED 

ARTICLE 5 
 OPERATIONS

 5.1 Operating Agreement. The Assets shall be subject to and governed by an operating agreement substantially in
the form attached as Exhibit D (the “Operating Agreement”); provided that in the event any portion of the Leases and/or the Wells is governed by a Third Party operating agreement (a “Third Party
Agreement”), then such portion of the Leases and/or the Wells shall be governed by such Third Party Agreement in lieu of the Operating Agreement as between the Parties, on one hand, and the Third Party, on the other
hand. Notwithstanding the foregoing, the Operating Agreement shall apply between the Parties irrespective of whether a Third Party Agreement affects any portion of the Leases and/or the Wells. In the event of any conflict or inconsistency
between the terms of this Agreement and any Operating Agreement, this Agreement shall prevail to the extent of such conflict; provided that the inclusion in any Operating Agreement of terms and provisions not addressed in this Agreement shall
not be deemed a conflict, and all such additional provisions shall be given full force and effect, subject to the provisions of this Section 5.1. 

ARTICLE 6 
 INTENTIONALLY
OMITTED 
 ARTICLE 7 

INTENTIONALLY OMITTED 

ARTICLE 8 
 INTENTIONALLY
OMITTED 
 ARTICLE 9 

INTENTIONALLY OMITTED 

ARTICLE 10 

INTENTIONALLY OMITTED 

  
 4 

 ARTICLE 11 

INTENTIONALLY OMITTED 

ARTICLE 12 
 NOTICES

 12.1 Notices. All notices and communications required or permitted under this Agreement shall be in writing and
addressed as indicated below, and any communication or delivery hereunder shall be deemed to have been duly delivered and received upon the earliest of: (i) if by personal delivery, then upon actual receipt by the Party to be notified if received
during business hours on a Business Day or, if not received during business hours on a Business Day, then on the next Business Day; (ii) if delivered by U.S. Postal Service, certified mail, postage prepaid, return receipt requested, then upon the
date shown as received on the return notice; (iii) if by facsimile transmission, then upon confirmation by the recipient of receipt (including electronic confirmation) if received during business hours on a Business Day or, if not received during
business hours on a Business Day, then on the next Business Day, or (iv) if by Federal Express overnight delivery (or other reputable overnight delivery service), then the date shown on the date of delivery if such date is a Business Day or if such
date is not a Business Day, then on the next Business Day. Addresses for all such notices and communication shall be as follows: 
  

			
	To EXCO:	 	EXCO Resources, Inc.
		 	12377 Merit Drive
		 	Dallas, Texas 75251
		 	Attention: Chief Financial Officer
		 	Facsimile: 214-368-2087
		
	With a copy to:	 	EXCO Resources, Inc.
		 	12377 Merit Drive
		 	Dallas, Texas 75251
		 	Attention: General Counsel
		 	Facsimile: 214-368-2087
		
	To KKR Parties:	 	Admiral A Holding L.P.
		 	Admiral B Holding L.P.
		 	600 Travis Street, Suite 7200
		 	Houston, TX 77002
		 	Attention: Dash Lane
		 	Facsimile: (713) 583-9430
		
	With a copy to:	 	RPM Energy Management LLC
		 	600 Travis Street, Suite 7225
		 	Houston, Texas 77002
		 	Attention: Land Department
		 	Email: admiral_notices@rpm-energy.com

  
 5 

			
	With a copy to:	  	Kirkland & Ellis LLP
		  	600 Travis Street
		  	Suite 3300
		  	Houston, TX 77002
		  	Attention: Anthony Speier, P.C.; David Castro Jr.
		  	Facsimile: (713) 835-3601

 Any Party may, upon written notice to the other Parties, change the address and Person to whom such
communications are to be directed. 
 ARTICLE 13 

MISCELLANEOUS 
 13.1
Entire Agreement. This Agreement, the Settlement Agreement and the Operating Agreement, together with the Exhibits, Schedules and Annexes attached hereto and thereto, constitute the entire agreement between the Parties, and
supersede all prior agreements, understandings, negotiations and discussions, whether oral or written, of the Parties. 
 13.2
Amendments. No supplement, amendment, alteration, modification, waiver or termination of this Agreement shall be binding unless executed in writing by both Parties. 

13.3 Waiver. No waiver of any of the provisions of this Agreement shall be deemed or shall constitute a waiver of any other
provision hereof (whether or not similar), nor shall such waiver constitute a continuing waiver, unless otherwise expressly provided. 

13.4 KKR Representative. For purposes of this Agreement, each KKR Party, without any further action, shall be deemed to
have consented to the appointment of RPM Energy Management, LLC, as its representative (in such capacity, the “KKR Representative”), as the attorney-in-fact for and on behalf of each such KKR Party, with respect to the exercise of
any election or other action that the KKR Parties are required or permitted to make or take on behalf of the KKR Parties, as the case may be, under the terms of this Agreement (the “Delegated Matters”). The KKR Parties (and
their respective successors and assigns) may terminate the appointment of the KKR Representative to act on their behalf under this Agreement by providing written notice to EXCO and the KKR Representative; provided that in the event of any
such termination prior to the expiration of the term, then prior to such termination, the KKR Parties (and/or their respective successors and assigns) must designate an alternative Person to serve as KKR Representative. Until the expiration of
the term, each KKR Party (and their respective successors and assigns) will be bound by all actions taken and decisions made by the KKR Representative in connection with this Agreement with respect to the Delegated Matters. The Parties
acknowledge and agree that (a) the KKR Representative’s actions and omissions with respect to the Delegated Matters are taken or made solely in its capacity as an agent and representative of the applicable KKR Parties, (b) EXCO shall be
entitled to rely upon the KKR Representative’s decisions with respect to the Delegated Matters and shall have no obligation to independently verify with any other KKR Party (or its respective successors and assigns) such decisions, and
(c) the KKR Representative is a third party beneficiary of this sentence. 

  
 6 

 13.5 Applicable Law; Venue. THIS AGREEMENT AND THE
LEGAL RELATIONS BETWEEN THE PARTIES SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF TEXAS, USA, WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAW. THE PARTIES AGREE THAT THE APPROPRIATE, EXCLUSIVE AND CONVENIENT
FORUM FOR ANY DISPUTES BETWEEN ANY OF THE PARTIES ARISING OUT OF THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY SHALL BE IN ANY STATE OR FEDERAL COURT IN HARRIS COUNTY, TEXAS, AND EACH OF THE PARTIES IRREVOCABLY SUBMITS TO THE JURISDICTION
OF SUCH COURTS SOLELY IN RESPECT OF ANY LEGAL PROCEEDING ARISING OUT OF OR RELATED TO THIS AGREEMENT. THE PARTIES FURTHER AGREE THAT THE PARTIES SHALL NOT BRING SUIT WITH RESPECT TO ANY DISPUTES ARISING OUT OF THIS AGREEMENT OR THE TRANSACTIONS
CONTEMPLATED HEREBY IN ANY COURT OR JURISDICTION OTHER THAN THE ABOVE SPECIFIED COURTS. THE PARTIES FURTHER AGREE, TO THE EXTENT PERMITTED BY LAW, THAT A FINAL AND NON-APPEALABLE JUDGMENT AGAINST A PARTY IN ANY ACTION OR PROCEEDING CONTEMPLATED
ABOVE SHALL BE CONCLUSIVE AND MAY BE ENFORCED IN ANY OTHER JURISDICTION WITHIN OR OUTSIDE OF THE UNITED STATES BY SUIT ON THE JUDGMENT, A CERTIFIED OR EXEMPLIFIED COPY OF WHICH SHALL BE CONCLUSIVE EVIDENCE OF THE FACT AND AMOUNT OF SUCH
JUDGMENT. EXCEPT TO THE EXTENT THAT A DIFFERENT DETERMINATION OR FINDING IS MANDATED DUE TO THE APPLICABLE LAW BEING THAT OF A DIFFERENT JURISDICTION, THE PARTIES AGREE THAT ALL JUDICIAL DETERMINATIONS OR FINDINGS BY A STATE OR FEDERAL COURT IN
HARRIS COUNTY, TEXAS WITH RESPECT TO ANY MATTER UNDER THIS AGREEMENT SHALL BE BINDING. 
 13.6 Jury
Waiver. TO THE MAXIMUM EXTENT PERMITTED BY LAW, EACH OF THE PARTIES TO THIS AGREEMENT HEREBY WAIVES ITS RESPECTIVE RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF THIS AGREEMENT OR ANY
DEALINGS BETWEEN THEM RELATING TO THE SUBJECT MATTER OF THIS AGREEMENT AND THE RELATIONSHIP THAT IS BEING ESTABLISHED. EACH PARTY ALSO WAIVES ANY BOND OR SURETY OR SECURITY UPON SUCH BOND WHICH MIGHT, BUT FOR THIS WAIVER, BE REQUIRED OF ANY OF
THE OTHER PARTIES. THE SCOPE OF THIS WAIVER IS INTENDED TO BE ALL-ENCOMPASSING OF ANY AND ALL DISPUTES THAT MAY BE FILED IN ANY COURT AND THAT RELATE TO THE SUBJECT MATTER OF THIS AGREEMENT, INCLUDING CONTRACT CLAIMS, TORT CLAIMS, BREACH OF DUTY
CLAIMS, AND ALL OTHER COMMON LAW AND STATUTORY CLAIMS. EACH PARTY ACKNOWLEDGES THAT THIS WAIVER IS A MATERIAL INDUCEMENT TO ENTER INTO A BUSINESS RELATIONSHIP, THAT EACH PARTY HAS ALREADY RELIED ON THE WAIVER IN ENTERING INTO THIS AGREEMENT AND
THAT EACH PARTY WILL CONTINUE TO RELY ON THE WAIVER IN THEIR RELATED FUTURE DEALINGS. EACH PARTY FURTHER WARRANTS AND REPRESENTS THAT IT HAS REVIEWED THIS WAIVER WITH ITS LEGAL COUNSEL, AND THAT

  
 7 

 
EACH PARTY KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS FOLLOWING CONSULTATION WITH LEGAL COUNSEL. THIS WAIVER IS IRREVOCABLE, MEANING THAT IT MAY NOT BE MODIFIED EITHER ORALLY OR
IN WRITING, AND THE WAIVER SHALL APPLY TO ANY SUBSEQUENT AMENDMENTS, RENEWALS, SUPPLEMENTS OR MODIFICATIONS TO THIS AGREEMENT OR TO ANY OTHER DOCUMENTS OR AGREEMENTS RELATING TO THE TRANSACTION CONTEMPLATED HEREBY. IN THE EVENT OF LITIGATION,
THIS AGREEMENT MAY BE FILED AS A WRITTEN CONSENT TO A TRIAL BY THE COURT. 
 13.7 Expenses. All fees, costs and
expenses incurred by the Parties in negotiating this Agreement or in consummating the transactions contemplated hereunder shall be paid by the Party incurring same, including legal and accounting fees, costs and expenses. Any sales tax,
transfer tax, documentary tax or recording fees or other charges relating to an assignment made pursuant to this Agreement shall be paid for and borne by the assignee. 

13.8 Limitation on Damages. EACH PARTY HEREBY EXPRESSLY WAIVES, RELEASES AND DISCLAIMS ANY AND ALL
RIGHTS TO RECOVER FROM ANY OTHER PARTY ANY CONSEQUENTIAL, SPECIAL, INCIDENTAL, INDIRECT, PUNITIVE, EXEMPLARY OR LOSS OF PROFIT DAMAGES RESULTING FROM OR ARISING OUT OF THIS AGREEMENT OR ANY BREACH OF OR FAILURE TO PERFORM UNDER THIS AGREEMENT,
INCLUDING LOST SALES, INCOME, REVENUE, PRODUCTION, RESERVES OR OPPORTUNITY. 
 13.9 Relationship of Parties. This
Agreement is not intended to create, and shall not be construed to create, an association for profit, a trust, a joint venture, a mining partnership or other relationship of partnership, or entity of any kind between the Parties. 

13.10 Severability. It is the intent of the Parties that the provisions contained in this Agreement shall be
severable. If any provisions of this Agreement, in whole or in part, are held invalid as a matter of law, such holding shall not affect the other portions of this Agreement, and such portions that are not invalid shall be given effect without
the invalid portion; provided that if any such provision may be made enforceable by limitation thereof, then such provision shall be deemed to be so limited and shall be enforceable to the maximum extent permitted by Law. 

13.11 Successors and Assigns. This Agreement shall be binding upon and shall inure to the benefit of the Parties and their
respective successors and assigns. 
 13.12 Announcements. The Parties shall consult with each other with regard to all
press releases and other announcements concerning (i) this Agreement or (ii) the operations within the Leases to the extent such press releases or announcements make reference to the name of the other Party and, except (i) as may be required by Laws
or the applicable rules and regulations of any governmental agency or stock exchange, or (ii) disclosures to any Party’s potential or existing financing sources or institutional investors or as otherwise permitted pursuant to Section
13.13, neither Party shall issue any such press release or make any other announcement without the prior written consent of the other Party, which consent shall not be unreasonably withheld. 

  
 8 

 13.13 Confidentiality. The Parties shall keep the terms of this Agreement and
all Exhibits and Schedules hereto confidential and not disclose the same to any other Person without the prior written consent of the other Party; provided that the foregoing shall not apply to (i) disclosures required by Law, regulation,
securities exchange rules or order or decree of any Governmental Authority, or (ii) disclosures to a Party’s partners, members, directors, officers, employees, financial advisors, accountants, consultants, attorneys, banks and other potential
financing sources, institutional investors, agents, nominees, representatives, Persons to which a Party may transfer its rights and obligations under this Agreement and prospective purchasers of property, as well as their respective representatives,
advisors, attorneys and consultants (provided that such Persons (other than the KKR Parties’ or its Affiliates’ prospective investors) likewise agree to keep this Agreement and all Exhibits and Schedules hereto confidential). 

13.14 Further Assurances. From time to time after the Execution Date, the Parties shall each execute, acknowledge and
deliver to the other such further instruments and take such other action as may be reasonably requested in order to more effectively assure the other of the benefits and enjoyment intended to be conveyed under this Agreement, and otherwise to
accomplish the purposes of the transactions contemplated hereby. 
 13.15 Counterpart Execution. This Agreement may be
executed in counterparts, each of which shall be deemed an original, and both of which taken together shall constitute one agreement. 

13.16 References and Construction. In this Agreement: 

(a) References to any gender includes a reference to all other genders; 

(b) References to the singular includes the plural, and vice versa; 

(c) References to any Article or Section means an Article or Section of this Agreement; 

(d) References to any Exhibit or Schedule means an Exhibit or Schedule to this Agreement, all of which are incorporated into
and made a part of this Agreement; 
 (e) Unless expressly provided to the contrary, “hereunder”,
“hereof”, “herein” and words of similar import are references to this Agreement as a whole and not any particular Section or other provision of this Agreement; 

(f) “Include” and “including” shall mean include or including without limiting the generality of the
description preceding such term and are used in an illustrative sense and not a limiting sense; 
 (g) The headings contained
in this Agreement are for guidance and convenience of reference only, and shall not limit or otherwise affect any of the terms or provisions of this Agreement; and 

  
 9 

 (h) No consideration shall be given to the fact or presumption that one Party had
a greater or lesser hand in drafting this Agreement. 
 [Remainder of page intentionally blank.] 

  
 10 

 IN WITNESS WHEREOF, this Agreement is executed by the Parties on the Execution Date. 

 

									
	ADMIRAL A HOLDING L.P.	 		  	EXCO OPERATING COMPANY, LP
					
	By:	 	 Admiral A Holding GP LLC,
 its general
partner
	 		  	By:	  	 EXCO PARTNERS OLP GP, LLC,
 its
general partner

					
	By:	 	 /s/ David Rockecharlie
	 		  	By:	  	 /s/ Harold Hickey

	Name:	 	David Rockecharlie	 		  	Name:	  	 Harold Hickey

	Title:	 	Vice President	 		  	Title:	  	 Chief Executive Officer & President

  

									
	TE ADMIRAL A HOLDING L.P.	  		  	COLT ADMIRAL A HOLDING L.P.
			
	By: TE Admiral A Holding GP LLC,	  		  	By: Colt Admiral A Holding GP LLC,
	its general partner	  		  	its general partner
					
	By:	  	 /s/ David Rockecharlie
	  		  	By:	  	 /s/ David Rockecharlie

	Name:	  	David Rockecharlie	  		  	Name:	  	David Rockecharlie
	Title:	  	Vice President	  		  	Title:	  	Vice President

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