Document:

Exhibit

Exhibit 10.18
PERFORMANCE SHARE AGREEMENT

This Performance Share Agreement (the “Agreement”) is entered into as of _____, 20__, by and between Valero Energy Corporation, a Delaware corporation (“Valero”), and __________, a participant (the “Participant”) in Valero’s 2011 Omnibus Stock Incentive Plan (as may be amended, the “Plan”), pursuant to and subject to the provisions of the Plan.

		
	1.
	Grant of Performance Shares.  Valero hereby grants to Participant _______ Performance Shares pursuant to Section 6.7 of the Plan.  The Performance Shares represent rights to receive shares of Common Stock of Valero, subject to the terms and conditions of this Agreement and the Plan.

		
	2.
	Vesting and Delivery of Shares.

		
	A.
	Vesting.  The Performance Shares granted hereunder shall vest over a period of three years in equal, one-third increments with the first increment vesting on the date of the regularly scheduled meeting of the Board’s Compensation Committee in January 2019, and the second and third increments vesting on the Committee’s meeting dates in January 2020 and January 2021, respectively (each of these vesting dates is referred to as a “Normal Vesting Date”); any award(s) of shares of Common Stock resulting in connection with such vesting shall be subject to verification of attainment of the Performance Objectives described in Section 4 below by the Compensation Committee.  If the Committee is unable to meet in January of a given year, then the Normal Vesting Date for that year will be the date not later than March 31 of that year as selected by the Compensation Committee.

		
	B.
	Rights.  Until shares of Common Stock are actually issued to Participant (or his or her estate) in settlement of the Performance Shares, neither Participant nor any person claiming by, through or under Participant shall have any rights as a stockholder of Valero (including, without limitation, voting rights or any right to receive dividends or other distributions) with respect to such shares.

		
	C.
	Distribution.  Any shares of Common Stock to be distributed under the terms of this Agreement shall be distributed as soon as administratively practicable after Performance Objectives described in Section 4 below have been verified by the Compensation Committee, but not later than two-and-one-half months following the end of the year in which such verification occurred.

		
	3.
	Performance Period.  Except as provided below with respect to a Change of Control (as defined in the Plan), the “Performance Period” for any Performance Shares eligible to vest on any Normal Vesting Date shall be as follows: 

		
	A.
	First Segment.  The Performance Period for the first one-third vesting of Performance Shares (those vesting on the Normal Vesting Date in January 2019) shall be the calendar year ending on December 31, 2018.  

		
	B.
	Second Segment.  The Performance Period for the second one-third vesting of Performance Shares (those vesting on the Normal Vesting Date in January 2020) shall be the two calendar years ending December 31, 2019.

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	C.
	Third Segment.  The Performance Period for the final one-third vesting of Performance Shares (those vesting on the Normal Vesting Date in January 2021) shall be the three calendar years ending December 31, 2020.

		
	4.
	Performance Objectives.

		
	A.
	Total Shareholder Return.  Total Shareholder Return (“TSR”) will be compiled for a peer group of companies (the “Target Group”) for the Performance Period immediately preceding each Normal Vesting Date.  TSR for each such company is measured by dividing (A) the sum of (i) the dividends on the common stock of such company during the Performance Period, assuming dividend reinvestment, and (ii) the difference between the average closing price of a share of such company’s common stock for the 30 days of December 2 to December 31 at the end of the Performance Period and the average closing price of such shares for the 30 days of December 2 to December 31 immediately prior to the beginning of the Performance Period (appropriately adjusted for any stock dividend, stock split, spin-off, merger or other similar corporate events), by (B) the average closing price of a share of such company’s common stock for the 30 days of December 2 to December 31 immediately prior to the beginning of the Performance Period.

		
	B.
	Target Group.  The applicable Target Group shall be selected by the Compensation Committee, acting in its sole discretion, each year not later than 90 days after the commencement of the calendar year preceding each Normal Vesting Date.  The same Target Group shall be used to measure TSR with regard to all Performance Shares vesting under all Performance Award Agreements of Valero having a similar Normal Vesting Date.

		
	C.
	Performance Ranking and Award of Common Shares.  For each Performance Period, the TSR for Valero and each company in the Target Group shall be arranged by rank from highest performer to lowest performer according to the TSR achieved by each company.  Shares of Common Stock will be awarded to Participant in accordance with Valero’s percentile ranking within the Target Group.  The number of shares of Common Stock, if any, that Participant will be entitled to receive in settlement of the vested Performance Shares will be determined on each Normal Vesting Date and, subject to the provisions of the Plan and this Agreement, on such Normal Vesting Date, the following percentage of the vested Performance Shares will be awarded as shares of Common Stock to the Participant when Valero’s TSR during the Performance Period falls within the following percentiles (“Percentiles”):

	
			
	Ranking
	Percentile
	Payout

	1
	100.0%
	200.0%

	2
	88.9%
	200.0%

	3
	77.8%
	171.4%

	4
	66.7%
	142.9%

	5
	55.6%
	114.3%

	6
	44.4%
	85.7%

	7
	33.3%
	57.1%

	8
	22.2%
	28.6%

	9
	11.1%
	0.0%

	10
	0.0%
	0.0%

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	D.
	Unearned Shares.  Any Performance Shares not awarded as shares of Common Stock on a Normal Vesting Date will expire and be forfeited; such Performance Shares may not be carried forward for any additional Performance Period.

		
	5.
	Dividend Equivalent Award.  In addition to the Performance Shares granted in Section 1, the Participant is granted a Dividend Equivalent Award payable in shares of Common Stock, as provided herein.  On each Normal Vesting Date, the amount of dividends paid to holders of Common Stock during the applicable Performance Period shall be determined with respect to the Participant’s Performance Shares that are vesting on that Normal Vesting Date—calculated as if the Performance Shares were outstanding shares of Common Stock (the resulting value being hereafter referred to as the “Target Dividend Equivalent Value”).  The Target Dividend Equivalent Value shall then be subject to further calculation according to Valero’s TSR ranking during the Performance Period as prescribed in Section 4.C. above (i.e., payout from 0% to 200% depending on Valero’s TSR ranking).  The number of shares of Common Stock payable to Participant with respect to the Dividend Equivalent Award is equal to (x) the Target Dividend Equivalent Value multiplied by the Performance Period’s payout percentage calculated per Section 4.C., divided by (y) the Fair Market Value of the Common Stock on the Normal Vesting Date (the resulting number being rounded up to the nearest whole number of shares).  See Exhibit A for an example of this calculation.

		
	6.
	Termination of Employment.  

		
	A.
	Voluntary Termination, Termination for “Cause,” and Early Retirement.  If Participant’s employment is

(i) voluntarily terminated by the Participant (other than through normal retirement, death or disability), including termination in connection with Participant’s voluntary early retirement (i.e., prior to age 62),
(ii) terminated by Valero for “cause” (as defined pursuant to the Plan),
then those Performance Shares that are outstanding and have not vested as of the effective date of termination shall thereupon be forfeited.
		
	B.
	Retirement.  If a Participant’s employment is terminated through his or her normal retirement (i.e., age 62+ retirement), then any Performance Shares that (i) have not theretofore vested or been forfeited, and (ii) were granted at least one year prior to the Participant’s effective date of retirement, shall continue to remain outstanding and shall vest on the Normal Vesting Dates according to their original vesting schedule.  

But any outstanding Performance Shares that were granted within one year of the Participant’s effective date of retirement shall be prorated as follows.  The outstanding Performance Shares shall be prorated based on the number of months worked from the date of grant to the Participant’s retirement date (rounding upward), and the prorated number of Performance Shares shall thereafter vest on the Normal Vesting Dates according to their original vesting schedule.  Example:
		
	•
	25,530 Performance Shares granted on November 1, 2017,

		
	•
	normal retirement date of Participant is effective April 15, 2018,

		
	•
	working period is calculated as 6 months (5 full months plus partial month rounding upward to 6 months),

		
	•
	original grant is adjusted by 6/12ths (50%) resulting in 12,765 Performance Shares to vest according to their original vesting schedule.

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	C.
	Death, Disability, Involuntary Termination Other Than for “Cause,” and Change of Control.  If a Participant’s employment is terminated (i) through death or disability, or (ii) by Valero other than for cause (as determined pursuant to the Plan), or (iii) as a result of a Change of Control (as described in the Plan) (each of the foregoing is hereafter referred to as a “Trigger Date”), then each Performance Period with respect to any Performance Shares that have not vested or been forfeited shall be terminated effective as of such Trigger Date; the TSR for Valero and for each company in the Target Group shall be determined for each such shortened Performance Period and the percentage of Performance Shares to be awarded as shares of Common Stock for each such shortened Performance Period shall be determined in accordance with Section 4 and shall be distributed as soon as administratively practicable thereafter.

		
	(i)
	For purposes of determining the number of Performance Shares to be received as of any Trigger Date, the Target Group as most recently determined by the Compensation Committee prior to the Trigger Date shall be used.

		
	(ii)
	If the Trigger Date is the result of a Change of Control, then the number of shares of Common Stock to be awarded to the Participant shall be prorated commensurate with the length of service of the Participant during each Performance Period.  See Exhibit B for an example of this calculation.

		
	7.
	Cash Payment Election.  Effective on any Normal Vesting Date (or Trigger Date under Section 6.C), the Participant (or the Participant’s estate under Section 6.C) may elect to receive up to 50% of the after-tax value of the aggregate number of shares of Common Stock earned on such Normal Vesting Date (or Trigger Date) in cash, with the remainder paid in shares of Common Stock. Example:

		
	•
	following the calculation of Valero’s performance against the Target Group for the two-year performance period ending December 31, 2019, it is determined that the Participant is entitled to receive 4,000 shares of Common Stock on the Normal Vesting Date occurring in January 2020 (the “2020 Normal Vesting Date”),

		
	•
	the 4,000 shares have an aggregate tax value of $300,000 (4,000 shares times an assumed $75 FMV per share on the 2020 Normal Vesting Date), and the Participant has made a tax withholding election of 39.6%,

		
	•
	the after-tax value of the 4,000 shares of Common Stock awarded on the Normal Vesting Date is $181,200 ($300,000 times 60.4%),

		
	•
	the Participant may elect to receive up to $90,600 ($181,200 times 50%) in cash on the 2020 Normal Vesting Date.

		
	8.
	Plan Incorporated by Reference.  The Plan is incorporated into this Agreement by this reference and is made a part hereof for all purposes.  Capitalized terms not otherwise defined in this Agreement shall have the meaning specified in the Plan.

		
	9.
	No Assignment.  This Agreement and the Participant’s interest in the Performance Shares granted by this Agreement are of a personal nature, and, except as expressly permitted under the Plan, Participant’s rights with respect thereto may not be sold, mortgaged, pledged, assigned, transferred, conveyed or disposed of in any manner by Participant, except by an executor or beneficiary pursuant to a will or pursuant to the laws of descent and distribution.  Any such attempted sale, mortgage, pledge, assignment, transfer, conveyance or disposition is void, and Valero will not be bound thereby.

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	10.
	Integration.  This Agreement constitutes the entire agreement of the parties relating to the transactions contemplated hereby, and supersedes all provisions and concepts contained in all prior contracts or agreements between the Participant and Valero, including that certain Change of Control Severance Agreement (“COC Agreement”) between Participant and Valero.  For avoidance of doubt, Participant acknowledges that in the context of a Change of Control of Valero, the terms of this Agreement shall prevail over the terms of the COC Agreement with respect to the vesting of the Performance Shares granted under this Agreement.

		
	11.
	Successors.  This Agreement shall be binding upon any successors of Valero and upon the beneficiaries, legatees, heirs, administrators, executors, legal representatives, successors and permitted assigns of Participant.

		
	12.
	Code Section 409A.  This Agreement is intended to comply, and shall be administered consistently in all respects, with Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”), and the regulations and additional guidance promulgated thereunder to the extent applicable.  Accordingly, Valero shall have the authority to take any action, or refrain from taking any action, with respect to this Agreement that is reasonably necessary to ensure compliance with Code Section 409A (provided that Valero shall choose the action that best preserves the value of payments and benefits provided to Participant under this Agreement that is consistent with Code Section 409A), and the parties agree that this Agreement shall be interpreted in a manner that is consistent with Code Section 409A.  In furtherance, but not in limitation of the foregoing: 

		
	(a)
	in no event may Participant designate, directly or indirectly, the calendar year of any payment to be made hereunder; 

		
	(b)
	to the extent the Participant is a “specified employee” within the meaning of Code Section 409A, payments, if any, that constitute a “deferral of compensation” under Code Section 409A and that would otherwise become due during the first six months following Participant’s termination of employment shall be delayed and all such delayed payments shall be paid in full in the seventh month after such termination date, provided that the above delay shall not apply to any payment that is excepted from coverage by Code Section 409A, such as a payment covered by the short-term deferral exception described in Treasury Regulations Section 1.409A-1(b)(4); 

		
	(c)
	notwithstanding any other provision of this Agreement, a termination, resignation or retirement of Participant’s employment hereunder shall mean and be interpreted consistent with a “separation from service” within the meaning of Code Section 409A;

		
	(d)
	terms defined in this section will have the meanings given such terms under Section 409A if and to the extent required to comply with Section 409A.  Notwithstanding any other provision hereof, Valero makes no representations or warranties and will have no liability to Participant or any other person if any provision of or payment under this Agreement is determined to constitute deferred compensation subject to Section 409A but does not satisfy the conditions of Section 409A.

Page 5

Executed effective as of the date first written above.

VALERO ENERGY CORPORATION

by: ___________________________________
Julia Rendon Reinhart, 
Vice President-Human Resources

______________________________________
[name of Participant]

Page 6

Exhibit A

Example of Potential Payout of Dividend Equivalent Award in Shares of Common Stock
(per Section 5 of the Agreement)

Assumptions and Calculations (for illustration purposes only):

		
	1.
	Assume the Participant was granted 12,000 Performance Shares on November 1, 2017.

		
	2.
	Assume the Normal Vesting Date for the second segment of these Performance Shares is January 22, 2020.  On that date 4,000 Performance Shares (12,000 / 3 = 4,000) vest with respect to the two-year Performance Period ending December 31, 2019.

		
	3. 
	Assume the cumulative amount of dividends paid to holders of Common Stock during the Performance Period is $5.80 per share (determined as follows).

	
			
	dividends paid in 1Q18
	 
	$0.70

	2Q18
	 
	$0.70

	3Q18
	 
	$0.70

	4Q18
	 
	$0.70

	1Q19
	 
	$0.75

	2Q19
	 
	$0.75

	3Q19
	 
	$0.75

	4Q19
	 
	$0.75

	 
	 
	$5.80 per share

		
	4.
	The “Target Dividend Equivalent Value” is $23,200.00 (4,000 Performance Shares vesting, multiplied by $5.80 accumulated dividends per share, equals $23,200.00).

		
	5.
	Valero’s TSR ranking for the Performance Period is determined (per Section 4.C.) to generate a payout of 142.9%.

		
	6.
	The Fair Market Value of the Common Stock on the vesting date is $72.00.

		
	7.
	Based on the foregoing, the total number of shares of Common Stock earned by the Participant on the vesting date is 6,177.  The calculation is illustrated below.

	
							
	Section 4.C.
	 
	4,000
	

	 
	Performance Shares vesting

	 
	 
	x  142.9%
	

	 
	multiply by TSR ranking payout percentage

	 
	 
	5,716
	

	 
	 

	 
	 
	 
	 
	 

	Section 5.
	 
	

	$23,200.00
	

	 
	Target Dividend Equivalent Value

	 
	 
	x  142.9%
	

	 
	multiply by TSR ranking payout percentage

	 
	 
	

	$33,152.80
	

	 
	dividend equivalent based on segment performance

	 
	 
	 /  $72.00
	

	 
	divided by FMV per share

	 
	 
	461
	

	 
	common shares earned for Dividend Equivalent Award (rounded up)

	 
	 
	 
	 
	 

	 
	 
	6,177
	

	 
	total common shares earned on vesting date

Exhibit A

Exhibit B

Example of Potential Payout in a Change of Control Context
(per Section 6.C.(ii) of the Agreement)

Assumptions and Calculations (for illustration purposes only):

		
	1.
	Assume the Participant was granted 15,000 Performance Shares on November 1, 2017.

		
	2.
	Assume Participant’s employment is terminated on June 30, 2018 as a result of a Change of Control.

		
	3.
	Per Section 6.C. of the Agreement, all Performance Periods for all segments (First Segment, Second Segment, Third Segment (See Section 3)) are shortened to end on June 30, 2018.

		
	4.
	As a result of the TSR calculations of Section 4.C., Valero is ranked in the 88.9 percentile for each shortened Performance Period, resulting in a 200% payout of common shares in each instance.

		
	5.
	Payout of common shares to the Participant is prorated based on the Participant’s length of service during the original Performance Periods.

	
						
	First Segment calculation.
	 
	 
	 
	 

	15,000 / 3 = 5,000 performance shares.
	 
	 
	 
	 

	6 months of service in the 12-month Performance Period.
	 
	 
	 
	 

	5,000 perf. shares
	 
	 
	 
	 

	x  200% payout
	 
	 
	 
	 

	10,000 common shares  x  6 / 12 =
	 
	 
	5,000
	

	common shares

	 
	 
	 
	 
	 

	Second Segment calculation.
	 
	 
	 
	 

	15,000 / 3 = 5,000 performance shares.
	 
	 
	 
	 

	6 months of service in the 24-month Performance Period.
	 
	 
	 
	 

	5,000 perf. shares
	 
	 
	 
	 

	x  200% payout
	 
	 
	 
	 

	10,000 common shares  x  6 / 24 =
	 
	 
	2,500
	

	common shares

	 
	 
	 
	 
	 

	Third Segment calculation.
	 
	 
	 
	 

	15,000 / 3 = 5,000 performance shares.
	 
	 
	 
	 

	6 months of service in the 36-month Performance Period.
	 
	 
	 
	 

	5,000 perf. shares
	 
	 
	 
	 

	x  200% payout
	 
	 
	 
	 

	10,000 common shares  x  6 / 36 =
	 
	 
	1,667
	

	common shares

	 
	 
	 
	 
	 

	Total payout
	 
	 
	9,167
	

	common shares

Exhibit BExhibit

Exhibit 10.4
EXECUTION COPY
FIRST AMENDMENT
TO
FOURTH AMENDED AND RESTATED
CREDIT AGREEMENT
DATED AS OF FEBRUARY 7, 2018
AMONG
BLACK STONE MINERALS COMPANY, L.P.,
AS BORROWER,
BLACK STONE MINERALS, L.P.,
AS PARENT MLP,
WELLS FARGO BANK, NATIONAL ASSOCIATION,
AS ADMINISTRATIVE AGENT,
AND
THE LENDERS PARTY HERETO
SOLE BOOK RUNNER AND SOLE LEAD ARRANGER
WELLS FARGO SECURITIES, LLC

FIRST AMENDMENT TO FOURTH AMENDED
AND RESTATED CREDIT AGREEMENT
THIS FIRST AMENDMENT TO FOURTH AMENDED AND RESTATED CREDIT AGREEMENT (this “First Amendment”) dated as of February 7, 2018, is among: BLACK STONE MINERALS COMPANY, L.P., a Delaware limited partnership (the “Borrower”); BLACK STONE MINERALS, L.P., a Delaware limited partnership (the “Parent MLP”); each of the lenders party to the Credit Agreement referred to below (collectively, the “Lenders”); and WELLS FARGO BANK, NATIONAL ASSOCIATION, as administrative agent for the Lenders (in such capacity, together with its successors in such capacity, the “Administrative Agent”).
R E C I T A L S
A. The Borrower, the Parent MLP, the Administrative Agent and the Lenders are parties to that certain Fourth Amended and Restated Credit Agreement dated as of November 1, 2017 (as amended, modified or supplemented to date, the “Credit Agreement”), pursuant to which the Lenders have made certain credit available to and on behalf of the Borrower.
B. The Borrower, the Parent MLP, the Administrative Agent and the Lenders desire to amend the Credit Agreement in connection with Parent MLP’s issuance of Series B Preferred Stock as provided herein.
C. Now, therefore, to induce the Administrative Agent and the Lenders to enter into this First Amendment and in consideration of the premises and the mutual covenants herein contained, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:
Section 1. Defined Terms. Each capitalized term used herein but not otherwise defined herein has the meaning given such term in the Credit Agreement, as amended by this First Amendment. Unless otherwise indicated, all section references in this First Amendment refer to sections of the Credit Agreement.
Section 2. Amendments to Credit Agreement.
2.1 Amendments to Section 1.02. Section 1.02 is hereby amended by deleting the following definitions in their entirety and replacing them with the following:
“Agreement” means this Fourth Amended and Restated Credit Agreement, as amended by the First Amendment to Fourth Amended and Restated Credit Agreement dated as of February 7, 2018, as the same may be amended or supplemented from time to time.
“Change of Control” means:
(i) the Parent MLP shall cease to own, directly or indirectly, all of the outstanding equity interests of (a) the Borrower and (b) the General Partner; (ii) any Person or two or more Persons acting as a group (as defined in Section

1

13(d)(3) of the Securities Exchange Act of 1934), other than the Parent MLP or any Wholly-Owned Subsidiary of the Parent MLP, shall have acquired beneficial ownership (within the meaning of Rule 13d-3 of the SEC under the Securities Exchange Act of 1934) of 35% or more of the outstanding membership interests of the Parent MLP GP; (iii) individuals who, as of the Closing Date, constitute the board of directors of the Parent MLP GP (the “Parent MLP GP Incumbent Board”) cease for any reason to constitute at least a majority of the board of directors of the Parent MLP GP; provided, however, that any individual becoming a director of the Parent MLP GP subsequent to such date whose election, or nomination for election by the Parent MLP GP’s board of directors or committee thereof, was approved by a vote of at least a majority of the directors then comprising the Parent MLP GP Incumbent Board, shall be considered as though such individual were a member of the Parent MLP GP Incumbent Board; or (iv) a Series B Change of Control occurs pursuant to the terms of the Series B Preferred Stock.
Section 1.02 is hereby amended by adding the following definitions where alphabetically appropriate to read as follows:
“Parent MLP LPA” shall mean that certain First Amended and Restated Agreement of Limited Partnership Agreement, dated as of May 6, 2015, as amended by Amendment No. 1 thereto, effective as of May 6, 2015, and by Amendment No. 2 thereto, effective November 28, 2017, and as may be further amended, restated, amended and restated, supplemented or otherwise modified from time to time.
“Series B Change of Control Cash Redemption Election” shall mean a notice issued in connection with a Series B Change of Control by a holder of Series B Preferred Stock to Parent MLP pursuant to paragraph 11(b) of Annex B of the Parent MLP LPA electing to require Parent MLP to redeem such holder’s Series B Preferred Stock for cash pursuant to paragraph 11(b)(iv) of such Annex B of the Parent MLP LPA.
“Series B Change of Control” shall have the meaning assigned such term in the Parent MLP LPA.
“Series B Change of Control Notice” shall mean a notice issued by Parent MLP to the holders of Series B Preferred Stock pursuant to paragraph 11(b) of Annex B of the Parent MLP LPA) of a Series B Change of Control.
“Series B Preferred Stock” shall mean (i) (x) $300,000,000 of Parent MLP’s Series B Cumulative Convertible Preferred Units (as defined in the Parent MLP LPA) issued pursuant to Amendment No. 2 to the Parent MLP LPA and (y) any Series B PIK Units (as defined in the Parent MLP LPA) issued in connection with the same and (ii) (x) up to $200,000,000 of Series B Parity Securities (as defined in the Parent MLP LPA) and (y) any equity interests of the same type as the Series B Parity Securities issued as “payment-in-kind” with respect to such Series B Parity Securities.

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2.2 Amendment to Section 8.01(i). Section 8.01(i) is hereby amended to read as follows:
(i) Series B Preferred Stock. (i) contemporaneous with the issuance thereof by Parent MLP (and in any event not less than ten (10) Business Days prior to any Series B Change of Control), any Series B Change of Control Notice and (ii) promptly upon receipt thereof by Parent MLP, a copy of any Series B Change of Control Cash Redemption Election.
2.3 Amendment to Section 9.01(a). The parenthetical in Section 9.01(a) is hereby amended to read as follows:
(excluding the Preferred Stock and the Series B Preferred Stock)
2.4 Amendment to Section 9.02(m). Section 9.02(m) is hereby amended to read as follows:
 
		
	(m)
	the Preferred Stock and the Series B Preferred Stock.

2.5 Amendments to Section 9.04. Section 9.04 is hereby amended to read as follows:
Section 9.04. Dividends, Distributions and Redemptions. The Parent MLP and the Borrower will not, and will not permit any Restricted Subsidiary to, declare or pay any dividend, purchase, redeem or otherwise acquire for value any of its capital or partnership interests now or hereafter outstanding, return any capital to its Partners or make any distribution of its assets to its Partners, except for any such dividend, distribution or redemption (collectively, “Distributions”)
(a) by any Restricted Subsidiary to the Parent MLP or to any other Restricted Subsidiary;
(b) by the Parent MLP, other than a redemption of the Preferred Stock or the Series B Preferred Stock, so long as no Default, Event of Default or Deficiency has occurred and is continuing or would result therefrom;
(c) by the Parent MLP of a redemption of the Preferred Stock, so long as (i) no Default, Event of Default or Deficiency has occurred and is continuing or would result therefrom, (ii) after giving effect to such redemption of Preferred Stock on a pro forma basis, the Parent MLP shall be in compliance with the covenants set forth in Section 9.01 as of the last day of the applicable period covered by the certificate most recently delivered pursuant to Section 8.01(f) (for purposes of Section 9.01, as if such redemption of the Preferred Stock, and all other redemption of Preferred Stock and Series B Preferred Stock since the first day of such applicable period, had been redeemed on the first day of such applicable period), and (iii) after giving effect to such redemption of Preferred Stock, the Parent MLP shall have demonstrated that it will have unrestricted cash

3

liquidity (including, for purposes of this computation, the Unused Amount that is then available for borrowing) in an amount not less than 10% of the Aggregate Elected Revolving Commitment Amount;
(d) by the Parent MLP of a redemption of the Series B Preferred Stock in connection with a mandatory redemption upon a Series B Change of Control, so long as all Loans, all interest thereon and all other amounts payable by the Borrower hereunder and under the other Loan Documents that have become due and payable as a result of such Series B Change of Control have first been paid in full or such required payments have been waived in accordance with Section 12.04; and
(e) by the Parent MLP of a redemption of the Series B Preferred Stock (other than a redemption described in clause (d) above), so long as (i) no Default, Event of Default or Deficiency has occurred and is continuing or would result therefrom, (ii) after giving effect to such redemption of Series B Preferred Stock on a pro forma basis (x) the Parent MLP shall be in compliance with the covenant set forth in Section 9.01(b) and (y) the ratio of Total Debt (excluding the Preferred Stock and the Series B Preferred Stock) as of such time to EBITDAX for the four fiscal quarters ending on the last day of the fiscal quarter immediately preceding the date of determination for which financial statements are available shall be less than or equal to 2.5 to 1.0, in each case as of the last day of the applicable period covered by the certificate most recently delivered pursuant to Section 8.01(f) (for purposes hereof, as if such redemption of the Series B Preferred Stock, and all other redemption of Preferred Stock and Series B Preferred Stock since the first day of such applicable period, had been redeemed on the first day of such applicable period), and (iii) after giving effect to such redemption of Series B Preferred Stock, the Parent MLP shall have demonstrated that it will have unrestricted cash liquidity (including, for purposes of this computation, the Unused Amount that is then available for borrowing) in an amount not less than 20% of the Aggregate Elected Revolving Commitment Amount.
Parent MLP shall not amend or modify the terms of Annex B of the Parent MLP LPA, if such amendment or modification would (x) amend or modify the requirement set forth in paragraph 11(b)(iv) of such Annex B such that any redemption payable in cash pursuant thereto shall be subject to the prior payment of any Indebtedness then due as a result of the event resulting in the Series B Change of Control triggering such redemption or (y) provide for the mandatory redemption of the Series B Preferred Stock for any consideration other than capital stock or other equity interests upon the happening of any event other than a Series B Change of Control.
2.6 Amendments to Section 10.02. Section 10.02(a) is hereby amended to read as follows:
(a) In the case of an Event of Default other than one referred to in Section 10.01 (e), (f) or (g) (or in Section 10.01(j) that is a Series B Change of Control pursuant to which a holder of Series B Preferred Stock has issued a Series B Change of Control Cash Redemption Notice), the Administrative Agent shall, upon request of the Majority Lenders, by notice to the Borrower, cancel the Revolving Commitments and/or declare the principal amount then outstanding of, and the accrued interest on, the Loans and all

4

other amounts payable by the Borrower hereunder and under the Notes (including, without limitation, the payment of cash collateral to secure the LC Exposure as provided in Section 2.10(b)) to be forthwith due and payable, whereupon such amounts shall be immediately due and payable without presentment, demand, protest, notice of intent to accelerate, notice of acceleration or other formalities of any kind, all of which are hereby expressly waived by the Borrower.
Section 10.02(b) is hereby amended by adding a new sentence at the end thereof, to read as follows:
In the case of an Event of Default referred to in Section 10.01(j) that is a Series B Change of Control pursuant to which a holder of Series B Preferred Stock has issued a Series B Change of Control Cash Redemption Notice, the principal amount then outstanding of, and the accrued interest on, the Loans and all other amounts payable by the Borrower hereunder and under the Notes (including, without limitation, the payment of cash collateral to secure the LC Exposure as provided in Section 2.10(b)) shall become automatically immediately due and payable upon the consummation of such Series B Change of Control, without presentment, demand, protest, notice of intent to accelerate, notice of acceleration or other formalities of any kind, all of which are hereby expressly waived by the Borrower; provided, such acceleration may at any time prior to the payment in full of such amounts by the Borrower be rescinded by Majority Lenders.
2.7 Amendments to Section 12.04. Section 12.04(a) is hereby amended by adding the following at the end thereof:
; provided, the rescission of any acceleration of the Loans and other amounts payable by the Borrower hereunder and under the Notes pursuant to the last sentence of Section 10.02(b) shall as provided therein be effective upon consent of Majority Lenders:
Section 3. Conditions Precedent. This First Amendment shall become effective on the date (such date, the “First Amendment Effective Date”), when each of the following conditions is satisfied (or waived in accordance with Section 12.04):
3.1 The Administrative Agent shall have received from the Majority Lenders, the Parent MLP, and the Borrower, counterparts (in such number as may be requested by the Administrative Agent) of this First Amendment signed on behalf of such Person.
3.2 The Administrative Agent shall have received the Consent and Agreement attached to this First Amendment executed by the Guarantors (in such numbers as may be requested by the Administrative Agent).
3.3 The Administrative Agent and the Lenders shall have received all fees and other amounts due and payable on or prior to the date hereof, including, to the extent invoiced, reimbursement or payment of all documented out-of-pocket expenses required to be reimbursed or paid by the Borrower under the Credit Agreement.
3.4 No Default or Event of Default shall have occurred and be continuing as of the date hereof, immediately after giving effect to the terms of this First Amendment.

5

The Administrative Agent is hereby authorized and directed to declare this First Amendment to be effective when it has received documents confirming or certifying, to the satisfaction of the Administrative Agent, compliance with the conditions set forth in this Section 3 of this Amendment or the waiver of such conditions as permitted in Section 12.04. Such declaration shall be final, conclusive and binding upon all parties to the Credit Agreement for all purposes.
Section 4. Miscellaneous.
4.1 Confirmation. The provisions of the Credit Agreement, as amended and waived by this First Amendment, shall remain in full force and effect following the effectiveness of this First Amendment.
4.2 Ratification and Affirmation; Representations and Warranties. Each of the Borrower and the Parent MLP hereby (a) ratifies and affirms its obligations under, and acknowledges its continued liability under, each Loan Document to which it is a party and agrees that each Loan Document to which it is a party remains in full force and effect as expressly amended or waived hereby and (b) represents and warrants to the Lenders that as of the date hereof, after giving effect to the terms of this First Amendment:
(i) all of the representations and warranties contained in each Loan Document to which it is a party are true and correct in all material respects, except to the extent any such representations and warranties are expressly limited to an earlier date, in which case, such representations and warranties shall continue to be true and correct as of such specified earlier date,
(ii) no Default or Event of Default has occurred and is continuing, and
(iii) no event or events have occurred which individually or in the aggregate could reasonably be expected to have a Material Adverse Effect.
4.3 Counterparts. This First Amendment may be executed by one or more of the parties hereto in any number of separate counterparts, and all of such counterparts taken together shall be deemed to constitute one and the same instrument. Delivery of this First Amendment by facsimile transmission shall be effective as delivery of a manually executed counterpart hereof.
4.4 NO ORAL AGREEMENT. THIS FIRST AMENDMENT, THE CREDIT AGREEMENT AND THE OTHER LOAN DOCUMENTS EXECUTED IN CONNECTION HEREWITH AND THEREWITH REPRESENT THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT UNWRITTEN ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.
4.5 GOVERNING LAW. THIS FIRST AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF TEXAS.

6

4.6 Payment of Expenses. In accordance with Section 12.03, the Borrower agrees to pay or reimburse the Administrative Agent for all of its reasonable out-of-pocket expenses incurred in connection with this First Amendment, any other documents prepared in connection herewith and the transactions contemplated hereby, including, without limitation, the reasonable fees, charges and disbursements of counsel to the Administrative Agent.
4.7 Severability. Any provision of this First Amendment which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.
4.8 Successors and Assigns. This First Amendment shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns.
4.9 Loan Document. This First Amendment is a Loan Document.
[SIGNATURES BEGIN NEXT PAGE]

7

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

	 
	BLACK STONE MINERALS COMPANY, L.P., as Borrower

	 
	 
	 

	 
	By:
	 
	BSMC GP, L.L.C.,
its General Partner

	 
	 
	 

	 
	By:
	 
	Black Stone Minerals, L.P.,
its Sole Member

	 
	 
	 

	 
	By:
	 
	Black Stone Minerals GP, L.L.C.,
its General Partner

	 
	 
	 

	 
	By:
	 
	/s/ Jeffrey P. Wood

	 
	 
	 
	Jeffrey P. Wood

	 
	 
	 
	Senior Vice President and
Chief Financial Officer

	 
	 

	 
	BLACK STONE MINERALS, L.P., as Parent MLP

	 
	 
	 

	 
	By:
	 
	Black Stone Minerals GP, L.L.C.,
its General Partner

	 
	 
	 

	 
	By:
	 
	/s/ Jeffrey P. Wood

	 
	 
	 
	Jeffrey P. Wood

	 
	 
	 
	Senior Vice President
and Chief Financial Officer

 
SIGNATURE PAGE
FIRST AMENDMENT TO CREDIT AGREEMENT

	
				
	 
	 
	 
	 

	 
	WELLS FARGO BANK, NATIONAL ASSOCIATION,

	 
	as Administrative Agent, Issuing Bank and a Lender

	 
	 
	 

	 
	By:
	 
	/s/ Lila Jordan

	 
	Name:
	 
	Lila Jordan

	 
	Title:
	 
	Managing Director

 
SIGNATURE PAGE
FIRST AMENDMENT TO CREDIT AGREEMENT

	
				
	 
	 
	 
	 

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

	 
	 
	 

	 
	By:
	 
	/s/ Alia Qaddumi

	 
	Name:
	 
	Alia Qaddumi

	 
	Title:
	 
	Director

 
SIGNATURE PAGE
FIRST AMENDMENT TO CREDIT AGREEMENT

	
				
	 
	 
	 
	 

	 
	COMPASS BANK,
as a Lender

	 
	 
	 

	 
	By:
	 
	/s/ Gabriela Azcarate

	 
	Name:
	 
	Gabriela Azcarate

	 
	Title:
	 
	Vice President

 
SIGNATURE PAGE
FIRST AMENDMENT TO CREDIT AGREEMENT

	
				
	 
	 
	 
	 

	 
	JPMORGAN CHASE BANK N.A.,
as a Lender

	 
	 
	 

	 
	By:
	 
	/s/ Theresa M. Benson

	 
	Name:
	 
	Theresa M. Benson

	 
	Title:
	 
	Authorized Officer

 
SIGNATURE PAGE
FIRST AMENDMENT TO CREDIT AGREEMENT

	
				
	 
	 
	 
	 

	 
	NATIXIS, NEW YORK BRANCH,
as a Lender

	 
	 
	 

	 
	By:
	 
	/s/ Brice Le Foyer

	 
	Name:
	 
	Brice Le Foyer

	 
	Title:
	 
	Director

	 
	 
	 

	 
	By:
	 
	/s/ Ajay Prakash

	 
	Name:
	 
	Ajay Prakash

	 
	Title:
	 
	Vice President

 
SIGNATURE PAGE
FIRST AMENDMENT TO CREDIT AGREEMENT

	
				
	 
	 
	 
	 

	 
	ZB, N.A. DBA AMEGY BANK,
as a Lender

	 
	 
	 

	 
	By:
	 
	/s/ Sam Trail

	 
	Name:
	 
	Sam Trail

	 
	Title:
	 
	Senior Vice President

 
SIGNATURE PAGE
FIRST AMENDMENT TO CREDIT AGREEMENT

	
				
	 
	 
	 
	 

	 
	THE BANK OF NOVA SCOTIA, HOUSTON BRANCH, as a Lender

	 
	 
	 

	 
	By:
	 
	/s/ Alan Dawson

	 
	Name:
	 
	Alan Dawson

	 
	Title:
	 
	Director

 
SIGNATURE PAGE
FIRST AMENDMENT TO CREDIT AGREEMENT

	
				
	 
	 
	 
	 

	 
	IBERIABANK,

	 
	as a Lender

	 
	 
	 

	 
	By:
	 
	/s/ Blake Norris

	 
	Name:
	 
	Blake Norris

	 
	Title:
	 
	Vice President

 
SIGNATURE PAGE
FIRST AMENDMENT TO CREDIT AGREEMENT

	
				
	 
	 
	 
	 

	 
	ABN AMRO CAPITAL USA LLC,

	 
	as a Lender

	 
	 
	 

	 
	By:
	 
	/s/ Darrell Holley

	 
	Name:
	 
	Darrell Holley

	 
	Title:
	 
	Managing Director

	 
	 
	 

	 
	By:
	 
	/s/ Michaela Braun

	 
	Name:
	 
	Michaela Braun

	 
	Title:
	 
	Director

 
SIGNATURE PAGE
FIRST AMENDMENT TO CREDIT AGREEMENT

	
				
	 
	 
	 
	 

	 
	KEYBANK, NATIONAL ASSOCIATION,

	 
	as a Lender

	 
	 
	 

	 
	By:
	 
	/s/ George E. McKean

	 
	Name:
	 
	George E. McKean

	 
	Title:
	 
	Senior Vice President

 
SIGNATURE PAGE
FIRST AMENDMENT TO CREDIT AGREEMENT

	
				
	 
	 
	 
	 

	 
	TEXAS CAPITAL BANK, N.A.,

	 
	as a Lender

	 
	 
	 

	 
	By:
	 
	/s/ James E. Hibbert, Jr.

	 
	Name:
	 
	James E. Hibbert, Jr.

	 
	Title:
	 
	Assistant Vice President

 
SIGNATURE PAGE
FIRST AMENDMENT TO CREDIT AGREEMENT

	
				
	 
	 
	 
	 

	 
	BOKF, N.A. DBA BANK OF TEXAS.,

	 
	as a Lender

	 
	 
	 

	 
	By:
	 
	/s/ Marisol Salazar

	 
	Name:
	 
	Marisol Salazar

	 
	Title:
	 
	SVP

 
SIGNATURE PAGE
FIRST AMENDMENT TO CREDIT AGREEMENT

[First Amendment]
CONSENT AND AGREEMENT
Each of the undersigned hereby (i) consents to the provisions of this First Amendment and the transactions contemplated herein, (ii) ratifies and confirms the Fifth Amended and Restated Guaranty and Collateral Agreement dated as of November 1, 2017, as amended, modified or supplemented to date, made by it for the benefit of Administrative Agent and Lenders executed pursuant to the Credit Agreement and the other Loan Documents, (iii) ratifies and confirms all other Loan Documents made by it for the benefit of Administrative Agent and Lenders, (iv) agrees that all of its respective obligations and covenants thereunder, except as may be amended or modified hereby, shall remain unimpaired by the execution and delivery of this First Amendment and the other documents and instruments executed in connection herewith, and (v) agrees that such Fifth Amended and Restated Guaranty and such other Loan Documents shall remain in full force and effect.
[SIGNATURES BEGIN NEXT PAGE]

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

	 
	BLACK STONE ENERGY COMPANY, L.L.C.

	 
	 
	 

	 
	By:
	 
	Black Stone Minerals Company, L.P.,

	 
	 
	 
	its Sole Member

	 
	 
	 

	 
	By:
	 
	BSMC GP, L.L.C.,

	 
	 
	 
	its General Partner

	 
	 
	 

	 
	By:
	 
	Black Stone Minerals, L.P.,

	 
	 
	 
	its Sole Member

	 
	 
	 

	 
	By:
	 
	Black Stone Minerals GP, L.L.C.,

	 
	 
	 
	its General Partner

	 
	 
	 

	 
	By:
	 
	/s/ Jeffrey P. Wood

	 
	 
	 
	Jeffrey P. Wood

	 
	 
	 
	Senior Vice President and Chief Financial Officer

	 
	 

	 
	BLACK STONE NATURAL RESOURCES, L.L.C.

	 
	 
	 

	 
	By:
	 
	Black Stone Minerals Company, L.P.,

	 
	 
	 
	its Sole Member

	 
	 
	 

	 
	By:
	 
	BSMC GP, L.L.C.,

	 
	 
	 
	its General Partner

	 
	 
	 

	 
	By:
	 
	Black Stone Minerals, L.P.,

	 
	 
	 
	its Sole Member

	 
	 
	 

	 
	By:
	 
	Black Stone Minerals GP, L.L.C.,

	 
	 
	 
	its General Partner

	 
	 
	 

	 
	By:
	 
	/s/ Jeffrey P. Wood

	 
	 
	 
	Jeffrey P. Wood

	 
	 
	 
	Senior Vice President and Chief Financial Officer

 
SIGNATURE PAGE
CONSENT TO FIRST AMENDMENT TO CREDIT AGREEMENT

	
				
	 
	 
	 
	 

	 
	TLW INVESTMENTS, L.L.C.

	 
	 
	 

	 
	By:
	 
	Black Stone Energy Company, L.L.C.,

	 
	 
	 
	its Manager

	 
	 
	 

	 
	By:
	 
	Black Stone Minerals Company, L.P.,

	 
	 
	 
	its Sole Member

	 
	 
	 

	 
	By:
	 
	BSMC GP, L.L.C.,

	 
	 
	 
	its General Partner

	 
	 
	 

	 
	By:
	 
	Black Stone Minerals, L.P.,

	 
	 
	 
	its Sole Member

	 
	 
	 

	 
	By:
	 
	Black Stone Minerals GP, L.L.C.,

	 
	 
	 
	its General Partner

	 
	 
	 

	 
	By:
	 
	/s/ Jeffrey P. Wood

	 
	 
	 
	Jeffrey P. Wood

	 
	 
	 
	Senior Vice President and Chief Financial Officer

	 
	 

	 
	BSAP II GP, L.L.C.

	 
	 
	 

	 
	By:
	 
	Black Stone Minerals Company, L.P.,

	 
	 
	 
	its Sole Member

	 
	 
	 

	 
	By:
	 
	BSMC GP, L.L.C.,

	 
	 
	 
	its General Partner

	 
	 
	 

	 
	By:
	 
	Black Stone Minerals, L.P.,

	 
	 
	 
	its Sole Member

	 
	 
	 

	 
	By:
	 
	Black Stone Minerals GP, L.L.C.,

	 
	 
	 
	its General Partner

	 
	 
	 

	 
	By:
	 
	/s/ Jeffrey P. Wood

	 
	 
	 
	Jeffrey P. Wood

	 
	 
	 
	Senior Vice President and Chief Financial Officer

 
SIGNATURE PAGE
CONSENT TO FIRST AMENDMENT TO CREDIT AGREEMENT

	
				
	 
	 
	 
	 

	 
	BLACK STONE MINERALS, L.P.

	 
	 
	 

	 
	By:
	 
	Black Stone Minerals GP, L.L.C.,

	 
	 
	 
	its General Partner

	 
	 
	 

	 
	By:
	 
	/s/ Jeffrey P. Wood

	 
	 
	 
	Jeffrey P. Wood

	 
	 
	 
	Senior Vice President and Chief Financial Officer

	 
	 

	 
	BSMC GP, L.L.C.

	 
	 
	 

	 
	By:
	 
	Black Stone Minerals, L.P.,

	 
	 
	 
	its Sole Member

	 
	 
	 

	 
	By:
	 
	Black Stone Minerals GP, L.L.C.,

	 
	 
	 
	its General Partner

	 
	 
	 

	 
	By:
	 
	/s/ Jeffrey P. Wood

	 
	 
	 
	Jeffrey P. Wood

	 
	 
	 
	Senior Vice President and Chief Financial Officer

 
SIGNATURE PAGE
CONSENT TO FIRST AMENDMENT TO CREDIT AGREEMENT

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