Document:

SETTLEMENT
AGREEMENT

 

SETTLEMENT
AGREEMENT dated as of August 30, 2014, by and between Osage Exploration & Development Inc., a Delaware corporation (“Osage”),
and Raven Pipeline Company LLC, a Delaware limited liability company (“Raven”).

 

RECITALS

 

	 	1.	WHEREAS, the Parties
    entered into a Membership Interest Purchase Agreement (“MIPA”) on September 30, 2013, by which Osage sold to Raven
    all the Capital Interests Cimarrona Limited Liability Company, an Oklahoma limited liability company, including its Colombian
    branch (“Cimarrona”)
	 	 	 
	 	2.	WHEREAS the MIPA
    included the opening of an Escrow Account, with an amount equal to US$250,000, to secure the post-Closing purchase price adjustments
    and any indemnity obligations of Osage pursuant the MIPA.
	 	 	 
	 	3.	WHEREAS pursuant
    MIPA article 2.7, Raven should paid to Osage US$1,000,000 if the per barrel transportation rate charged with respect to the
    pipeline included in the MIPA was not adjusted during the period between the Closing Date and March 31, 2014.
	 	 	 
	 	4.	WHEREAS, Raven
    owes the aforementioned amount to Osage, as the rate was not adjusted in such period.
	 	 	 
	 	5.	WHEREAS, Raven
    has found some inconsistencies in Cimarrona Colombian branch accounting and tax information, specifically, in relation with
    tax losses reported Branch before and after Closing of the MIPA, and in relation with treatment of 2013 income tax and use
    of carryforwards.
	 	 	 
	 	6.	WHEREAS, Raven
    has informed such inconsistencies and misleading information to Osage, on July 23, 2014.
	 	 	 
	 	7.	WHEREAS, Parties
    have agreed to enter into this Settlement Agreement, and terminate any possible dispute regarding the inconsistencies and
    misleading information detailed by Raven on July 23, 2014.

 

NOW,
THEREFORE, in consideration of the mutual covenants, concessions and agreements contained
herein, the Parties, intending to be legally bound, enter into this Agreement on the terms
set forth below 

 

1.
Settlement of Disputes:

 

For
purposes hereof, the “Disputes” means all the findings detailed by Raven on the communication of July 23, 2014
(Appendix No. 1), in relation Colombian Branch during negotiation process
of the MIPA; and (ii) treatment of 2013 income Tax, use of carryforwards and the corresponding reimburse by Osage.

 

    	 

    	 

    

 

The
Parties declare that they have settled any differences related to such Disputes as defined hereby, subject matter under this Agreement,
and consequently, Raven waives any possible current, past or future claim against Osage in relation to the Disputes.

 

2.
Obligations and offset

 

Parties
agree as follows:

 

	 	 ●	Osage
    will reimburse to Raven the CREE tax and Equity tax, paid by Raven in 2014, in a settled sum of USD$250,000, corresponding
    to the available amount of the Escrow Account as defined in the MIPA. Therefore, this Agreement will fulfill the “joint
    written instruction” as required by clause 2.2 of the MIPA, in order to disburse the Escrow Account in favor of Raven.
	 	 	 
	 	 ●	Osage
    recognizes in favor of Raven, a sum of USD$1,000,000 in order to settle the Disputes. The Parties agree to offset this amount
    with the USD$1,000,000 owed by Raven to Osage, as described on Recitals 3 and 4 of this Agreement.

 

3.
Miscellaneous

 

The
MIPA and its obligations remain in force, in accordance with the MlPA terms. This Agreement is related exclusively to the Disputes,
and is not intended to modify, or suspend any obligation of the Parties stablished in the MIPA, including but not limited to the
Osage liability in relation to Ecopetrol production Dispute, as described on Appendix 2 (Letter January 1, 2014).

 

This
Settlement Agreement is a final and binding agreement between the Parties in relation to the Disputes.

 

In
witness whereof the Parties have executed this document in two (2) counterparts, on          ,
         , 2014Ex. 10.1 Amendment to Advisory Agreement

EXHIBIT 10.1

AMENDMENT NO. 1
TO THE
ADVISORY AGREEMENT

This Amendment No. 1 to the Advisory Agreement (this “Amendment”) is made and entered into as of November 11, 2014 by and among Steadfast Apartment REIT, Inc., a Maryland corporation (the “Company”), Steadfast Apartment REIT Operating Partnership, L.P., a Delaware limited partnership (the “Operating Partnership”), and Steadfast Apartment Advisor, LLC, a Delaware limited liability company (the “Advisor”). The Company, the Operating Partnership and the Advisor are collectively referred to herein as the “Parties.” Capitalized terms used but not defined herein shall have the meaning set forth in the Advisory Agreement (as defined below).

W I T N E S S E T H

WHEREAS, the Parties previously entered into that certain Advisory Agreement, dated as of December 13, 2013 (the “Advisory Agreement”), which provided for, among other matters, the management of the Company’s and the Operating Partnership’s day-to-day activities by the Advisor;

WHEREAS, the initial term of the Advisory Agreement is for a one-year term which may be renewed for an unlimited number of successive one-year terms; 

WHEREAS, pursuant to Section 18 (Term of the Agreement), the Parties desire to amend the Advisory Agreement pursuant to this Amendment in order to renew the term of the Advisory Agreement for an additional one-year term.

NOW, THEREFORE, in consideration of the foregoing and of the mutual covenants and agreements contained herein, the Parties, intending to be legally bound, hereby agree as follows:

ARTICLE I
AMENDMENT

In order to give effect to the Parties’ agreement to renew the term of the Advisory Agreement for an additional one-year term, the Parties agree as follows:

Section 1.1    Renewal of Advisory Agreement.  Pursuant to Section 18 of the Advisory Agreement, the Parties hereby renew the term of the Advisory Agreement effective as of December 13, 2014 for an additional one-year term ending on December 13, 2015. 

ARTICLE II
MISCELLANEOUS 

Section 2.1    Continued Effect.   Except as specifically set forth herein, all other terms and conditions of the Advisory Agreement shall remain unmodified and in full force and effect, the same being confirmed and republished hereby.  In the event of any conflict between the terms of the Advisory Agreement and the terms of this Amendment, the terms of this Amendment shall control.

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Section 2.2    Counterparts.  The Parties may sign any number of copies of this Amendment.  Each signed copy shall be an original, but all of them together represent the same agreement.  Delivery of an executed counterpart of a signature page of this Amendment or any document or instrument delivered in connection herewith by telecopy or other electronic method shall be effective as delivery of a manually executed counterpart of this Amendment or such other document or instrument, as applicable.  

Section 2.3    Governing Law.  This Amendment shall be governed by, and construed in accordance with, the internal laws of the State of Delaware.

[Signatures on following page]

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

    	
			
	STEADFAST APARTMENT REIT, INC.

	 
	 
	 

	By:
	 
	/s/ Rodney F. Emery

	Name:
	 
	Rodney F. Emery

	Title:
	 
	Chief Executive Officer

STEADFAST APARTMENT REIT OPERATING PARTNERSHIP, L.P.

    	
					
	By:
	 
	STEADFAST APARTMENT REIT, INC., its General Partner

	 
	 
	 
	 
	 

	 
	 
	By:
	 
	/s/ Rodney F. Emery

	 
	 
	Name:
	 
	Rodney F. Emery

	 
	 
	Title:
	 
	Chief Executive Officer

    	
			
	STEADFAST APARTMENT ADVISOR, LLC

	 
	 
	 

	By:
	 
	/s/ Ella S. Neyland

	Name:
	 
	Ella S. Neyland

	Title:
	 
	PresidentExhibit for Amendment No. 6 to Loan Agreement

AMENDMENT NO. 6
TO
LOAN AGREEMENT
THIS AMENDMENT NO. 6 TO LOAN AGREEMENT (this “Amendment”) is entered into as of November 11, 2014, by and among SQUARETWO FINANCIAL CORPORATION, a Delaware corporation (in its individual capacity, “US Borrower”), and as borrowing agent (in such capacity, “Borrowing Agent”), PREFERRED CREDIT RESOURCES LIMITED, an Ontario corporation (“Canadian Borrower”) (US Borrower and Canadian Borrower are sometimes collectively referred to herein as “Borrowers” and individually as a “Borrower”), the other persons designated as “Loan Parties”, certain of the Lenders party to the Loan Agreement (as defined below), and ALLY BANK, a Utah state bank (successor to Ally Commercial Finance LLC, a Delaware limited liability company) (in its individual capacity, “Ally”), as administrative and collateral agent (in such capacity, “Agent”) and as funding and disbursement agent with respect to the Canadian Revolving Loans (in such capacity, “Canadian Agent”).
BACKGROUND
WHEREAS, Borrowers, the other Loan Parties, Agent, Canadian Agent, and Lenders are parties to a Loan Agreement dated as of April 7, 2010 (as amended, restated, supplemented or otherwise modified from time to time, the “Loan Agreement”) pursuant to which Agent and Lenders provide Borrowers with certain financial accommodations;
WHEREAS, Borrowing Agent has requested that Agent, Canadian Agent, and Required Lenders make certain amendments to the Loan Agreement, and Agent, Canadian Agent, and the Required Lenders party hereto are willing to amend the Loan Agreement on the terms and conditions hereafter set forth.
NOW, THEREFORE, in consideration of any loan or advance or grant of credit heretofore or hereafter made to or for the account of Borrowers by Agent, Canadian Agent,  and Lenders, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows:
1.Definitions.  All capitalized terms not otherwise defined herein shall have the meanings given to them in the Loan Agreement.
2.    Amendment to Loan Agreement. Subject to satisfaction of the conditions precedent set forth in Section 3 below, the Loan Agreement is hereby amended as follows:
(a)    Paragraph (A) to the Financial Covenants Rider shall be amended by deleting such Paragraph (A) and substituting therefor the following:
A.    Minimum Adjusted EBITDA.  Commencing with the Fiscal Quarter ending June 30, 2010, US Borrower and its Subsidiaries on a consolidated basis shall have Adjusted EBITDA of not less than the amounts set forth below for the applicable 

214516/135-4721462.6

Fiscal Quarter set forth below ending on the last day of each such Fiscal Quarter, tested on a rolling four Fiscal Quarter basis:
	
		
	Period
	Adjusted EBITDA

	June 30, 2010
	$155,000,000

	September 30, 2010
	$165,000,000

	December 31, 2010
	$170,000,000

	March 31, 2011
	$170,000,000

	June 30, 2011
	$180,000,000

	September 30, 2011
	$190,000,000

	December 31, 2011
	$195,000,000

	March 31, 2012 through and
including September 30, 2014
	$200,000,000

	December 31, 2014 and each Fiscal Quarter ending thereafter
	$165,000,000

(b)    Section 5.11 of the Loan Agreement shall be amended by deleting such Section in its entirety and by substituting therefor the following:
		
	5.11
	Inspection; Field Review; Independent Determination Report; Lender Meeting.  Upon three (3) Business Days’ prior written notice to the Loan Parties, each Loan Party shall permit any authorized representatives of Agent to visit, audit and inspect any of the properties of such Loan Party and its Subsidiaries, during regular business hours, including its and their financial and accounting records, and to make copies and take extracts therefrom, and to discuss its and their Financial Statements, affairs, finances, operations and business with its and their officers and management and use reasonable efforts to arrange for discussions with their certified public accountants, at such reasonable times during normal business hours and as often as may be reasonably requested (collectively a “Field Review”); provided, that, upon the occurrence and continuance of an Event of Default, Agent shall not be required to provide any notice to the Loan Parties prior to the performance of a Field Review; provided further, that, so long as no Default or Event of Default has occurred and is continuing, Borrowers shall only be obligated to reimburse Agent for two (2) Field Reviews during any calendar year.  Upon the occurrence and continuance of an Event of Default, representatives of each Lender will be permitted to accompany representatives of Agent during each Field Review at the expense of Borrowers. Borrowers agree to pay all 

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fees and expenses of the firm or individual(s) engaged by Agent to perform audits of Borrowers’ assets and/or operations (to the extent relating to Borrowers’ Financial Statements or Collateral).  Notwithstanding the foregoing, if Agent uses its internal auditors to perform any such audit, Borrowers agree to pay to Agent, for its own account, an audit fee with respect to each such audit equal to $1,000 per internal auditor per day or any portion thereof together with all out of pocket expenses. In addition to Field Reviews, and the other items described above, upon the election of Agent, Agent may obtain, at Borrowers’ expense, a Fiscal Quarterly determination report (“Independent Determination Report”) by an independent third-party firm, that has reasonable industry or collateral experience, retained by Agent and satisfactory to Agent after consultation with Borrowing Agent, to confirm that the determination of Estimated Remaining Proceeds included in the Borrowing Base for the last Fiscal Month in such Fiscal Quarter is not unreasonable in any material respect, which Independent Determination Report shall be in a form reasonably satisfactory to Agent; provided, that, upon the occurrence and continuance of an Event of Default, Agent shall be entitled to obtain, at Borrowers’ expense, such Independent Determination Reports from time to time as frequently as requested by Agent.  Agent shall provide Borrowing Agent the opportunity to review, comment and confer with the subject third-party firm on drafts of each Independent Determination Report and to discuss same with Agent prior to finalization of such Independent Determination Report.  Each Loan Party shall reasonably cooperate with Agent and the subject firm in preparing each Field Review and Independent Determination Report requested by Agent. In addition to the foregoing, key management personnel of US Borrower shall participate in a meeting with Agent and Lenders at least once during each calendar year and upon the occurrence and continuance of an Event of Default, at such other times as are requested by Agent and Lenders, which meeting shall be held at such time and such place as may be reasonably requested by Agent and Lenders.  In addition to the foregoing, the Loan Parties shall deliver to Agent, (x) no later than January 31, 2015, a liquidation analysis of the Asset Pools (an “AP Analysis”) prepared by a third-party reasonably acceptable to Agent; and (y) additional AP Analyses as may be requested by the Agent from time to time; provided, however, that so long as no Default or Event of Default shall be in existence, Agent may not require more than one AP Analysis in any calendar year.  
3.    Conditions of Effectiveness.  This Amendment shall become effective on the date that Agent shall have received:
(a)    ten (10) copies of this Amendment executed by Borrowing Agent, Agent and the Required Lenders, and consented and agreed to by Borrowers and Guarantors; 

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(b)    Evidence satisfactory to Agent that the execution, delivery and performance of this Amendment has been duly authorized and executed by each Loan Party; and
(c)    Payment of a an amendment fee to Agent for the benefit of each Lender that executes and delivers their signature page to this Amendment on or before November 10, 2014, in an amount equal to 20 bps (0.20%) of each such Lender’s Revolving Loan Commitment.   
4.    Representations and Warranties.  Each Loan Party hereby represents and warrants as follows:
(a)    This Amendment and the Loan Agreement, as amended hereby, constitute legal, valid and binding obligations of each Loan Party and are enforceable against each Loan Party in accordance with their respective terms.
(b)    Upon the effectiveness of this Amendment, each Loan Party hereby reaffirms all covenants, representations and warranties made in the Loan Agreement to the extent the same are not amended hereby and agree that all such covenants, representations and warranties shall be deemed to have been remade as of the effective date of this Amendment.
(c)    No Event of Default or Default has occurred and is continuing or would exist after giving effect to this Amendment.
(d)    No Loan Party has any defense, counterclaim or offset with respect to the Loan Agreement.
5.    Effect on the Loan Agreement.
(a)    Upon the effectiveness of Section 2 hereof, each reference in the Loan Agreement to “this Agreement,” “hereunder,” “hereof,” “herein” or words of like import shall mean and be a reference to the Loan Agreement as amended hereby.
(b)    Except as specifically amended herein, the Loan Agreement, and all other documents, instruments and agreements executed and/or delivered in connection therewith, shall remain in full force and effect, and are hereby ratified and confirmed.
(c)    The execution, delivery and effectiveness of this Amendment shall not operate as a waiver of any right, power or remedy of Agent or Lenders, nor constitute a waiver of any provision of the Loan Agreement, or any other documents, instruments or agreements executed and/or delivered under or in connection therewith.
6.    Governing Law.  This Amendment shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns and shall be governed by and construed in accordance with the laws of the State of New York.
7.    Headings.  Section headings in this Amendment are included herein for convenience of reference only and shall not constitute a part of this Amendment for any other purpose.

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8.    Counterparts; Facsimile.  This Amendment may be executed by the parties hereto in one or more counterparts, each of which shall be deemed an original and all of which when taken together shall constitute one and the same agreement.  Any signature delivered by a party by facsimile transmission shall be deemed to be an original signature hereto.

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IN WITNESS WHEREOF, this Amendment has been duly executed as of the day and year first written above.
Borrowing Agent:

SQUARETWO FINANCIAL CORPORATION, as Borrowing Agent

	
		
	By:
	/s/ Paul A. Larkins

	Name:
	Paul A. Larkins

	Title:
	President & CEO

Agent:

ALLY BANK (successor to Ally Commercial Finance LLC), as Agent and Canadian Agent

	
		
	By:
	/s/ George Grieco

	Name:
	George Grieco

	Title:
	Senior Managing Director - Ally Corporate Finance

Lenders: 

ALLY BANK (successor to Ally Commercial Finance LLC), as a Lender 

	
		
	By:
	/s/ George Grieco

	Name:
	George Grieco

	Title:
	Senior Managing Director - Ally Corporate Financce

BANK OF AMERICA, N.A., as a Lender

	
		
	By:
	/s/ Laura Warner

	Name:
	Laura Warner

	Title:
	Director

	
		
	By:
	/s/ Sylwia Durkiewicz

	Name:
	Sylwia Durkiewicz

	Title:
	Vice President

Signature Page to Amendment No. 6 

ING CAPITAL LLC, as a Lender

	
		
	By:
	/s/ Bill Beddingfield

	Name:
	Bill Beddingfield

	Title:
	Managing Director

	
		
	By:
	/s/ Lia Cornejo

	Name:
	Lia Cornejo

	Title:
	Vice President

U.S. BANK NATIONAL ASSOCIATION, as a Lender

	
		
	By:
	/s/ Juli K. Van Hook

	Name:
	Juli K. Van Hook

	Title:
	Senior Vice President

FIFTH THIRD BANK, as a Lender

	
		
	By:
	/s/ Greg Vollmer

	Name:
	Greg Vollmer

	Title:
	Vice President

SIEMENS FINANCIAL SERVICES, INC., as a Lender

	
		
	By:
	/s/ Maria Levy

	Name:
	Maria Levy

	Title:
	Vice President

	
		
	By:
	/s/ Michael Zion

	Name:
	Michael Zion

	Title:
	Vice President

Signature Page to Amendment No. 6 

FIRSTMERIT BANK, as a Lender

	
		
	By:
	/s/ Tim Daniels

	Name:
	Tim Daniels

	Title:
	Senior Vice President

AMALGAMATED BANK, as a Lender

	
		
	By:
	/s/ Michael LaManes

	Name:
	Michael LaManes

	Title:
	First Vice President

    

TRANSPORTATION ALLIANCE BANK INC., DBA TAB BANK, as a Lender

	
		
	By:
	/s/ Curt Queyrouze

	Name:
	Curt Queyrouze

	Title:
	Chief Credit Officer

Signature Page to Amendment No. 6 

Acknowledged, agreed and consented to by the following Loan Parties:

SQUARETWO FINANCIAL CORPORATION, 
as US Borrower and as a US Guarantor

	
		
	By:
	/s/ Paul A. Larkins

	Name:
	Paul A. Larkins

	Title:
	President & CEO

CACH, LLC
CACH OF NJ, LLC
COLLECT AMERICA OF CANADA LLC
CACV OF COLORADO, LLC
CACV OF NEW JERSEY, LLC
HEALTHCARE FUNDING SOLUTIONS, LLC
ORSA, LLC
CANDEO, LLC
AUTUS, LLC, each as a US Guarantor

	
		
	By:
	/s/ Paul A. Larkins

	Name:
	Paul A. Larkins

	Title:
	Manager

REFINANCE AMERICA, LTD., as a US Guarantor

	
		
	By:
	/s/ Paul A. Larkins

	Name:
	Paul A. Larkins

	Title:
	President

METROPOLITAN LEGAL ADMINISTRATION SERVICES INC., 
as a Canadian Guarantor

	
		
	By:
	/s/ Christopher Walker

	Name:
	Christopher Walker

	Title:
	President & CEO

Signature Page to Amendment No. 6 

PREFERRED CREDIT RESOURCES LIMITED, 
as Canadian Borrower and as a Canadian Guarantor

	
		
	By:
	/s/ Christopher Walker

	Name:
	Christopher Walker

	Title:
	President & CEO

CA HOLDING, INC., as a US Guarantor

	
		
	By:
	/s/ Paul A. Larkins

	Name:
	Paul A. Larkins

	Title:
	President & CEO

CCL FINANCIAL INC., as a Canadian Guarantor

	
		
	By:
	/s/ Christopher Walker

	Name:
	Christopher Walker

	Title:
	President & CEO

    
SQUARE TWO FINANCIAL CANADA CORPORATION, as a Canadian Guarantor

	
		
	By:
	/s/ Christopher Walker

	Name:
	Christopher Walker

	Title:
	President & CEO

SQUARETWO FINANCIAL SERVICES CORPORATION, as a US Guarantor

	
		
	By:
	/s/ Paul A. Larkins

	Name:
	Paul A. Larkins

	Title:
	President

Signature Page to Amendment No. 6

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