Document:

Legend Oil and Gas, Ltd. 10-K

 

Exhibit 10.37

 

Execution Version

 

 

AMENDED AND RESTATED SECURED PROMISSORY
NOTE

 

	April 5, 2016	$3,246,700.00
	Maturity Date: April 3, 2018	 

 

FOR
VALUE RECEIVED, the undersigned, Legend Oil and Gas, Ltd., a Colorado corporation (“Legend”) and Black
Diamond Energy Holdings LLC, a Delaware limited liability company (“Black Diamond”) (Legend and Black
Diamond hereinafter collectively referred to as “Makers”), joint and severally, hereby execute this Amended
and Restated Secured Promissory Note (this “Note”) and hereby unconditionally promise to pay to
the order of Sher Trucking L.L.C., a Nevada limited liability company (hereinafter referred to as “Payee”),
the principal sum of THREE million TWO HUNDRED FORTY-Six thousand SEVEN
HUNDRED DOLLARS ($3,246,700.00) (which constitutes $2,854,000 in principal, $142,700 in interest accrued and outstanding as
of the date hereof under the terms of the Secured Promissory Note of 2015, and $250,000 in restructuring fees) and in lawful money
of the United States of America, on the terms provided below.

 

1.

Definitions.
For purposes of this Note, unless the context otherwise requires, the following terms shall have the definitions assigned to such
terms as follows: 

a.

“Business
Day” shall mean for all purposes any day except Saturday, Sunday, or a day which in the United States is
a legal holiday or a day on which banking institutions are authorized or required by law or other government action to close in
the State of Utah. 

b.

“Credit
Card Debt” shall mean the obligations owed to Bank of America, identified as a business card in the name of Black Diamond
Energy LLC, account number 4339 9315 9737 1038, with a balance of approximately $56,826.50 as of March 7, 2016. 

c.

“Dollars”
and the sign “$” shall mean lawful currency of the United States of America. 

d.

“Event
of Default” shall mean the occurrence of any one or more of the following events: 

i.

Failure of Makers
to pay any installment of principal, interest, or fees on this Note in a timely manner or on any other indebtedness of Makers
to Payee when due under this Note, or failure to make payments on the Credit Card Debt as set forth herein ; or 

ii.

Makers shall fail
to perform or observe any term, covenant or agreement on its part to be performed or observed in this Note (other than any such
term, covenant or agreement specified in clause (i), immediately above) and such failure shall continue unremedied or shall not
be waived for a period of ten (10) Business Days after written notice thereof from Payee to Makers; or 

    	 

    	 

    

 

iii.

If any Maker or
any of its affiliates party to the Security Agreement (collectively with the Makers, the “Obligors”) shall
admit in writing its inability to pay such debts generally, other than going concern language in Makers’ SEC filings of
Forms 10-K or 10-Q, or shall make a general assignment for the benefit of creditors or any Obligor shall become insolvent (however
defined or evidenced) or makes an assignment for the benefit of creditors; or 

iv.

If there shall
be filed by or against any Obligor a petition for any relief under the bankruptcy laws of the United States now or hereafter in
effect or any proceeding shall be commenced with respect to any Obligor under any insolvency, readjustment of debt, reorganization,
dissolution, liquidation or similar law or statute of any jurisdiction now or hereafter in effect (whether at law or in equity),
provided that in the case of any involuntary filing or the commencement of any involuntary proceeding against any Obligor and
such proceeding or petition shall have continued undismissed and unvacated for at least sixty (60) days; or 

v.

If any petition
or application to any court or tribunal, at law or in equity, shall be filed by or against any Obligor for the appointment of
any receiver or trustee for any Obligor or any material part of the property of any Obligor, provided that in the case of any
involuntary filing against any Obligor, such proceeding or appointment shall have continued undismissed and unvacated for at least
sixty (60) days; or 

vi.

The occurrence
of a default or event of default under the Security Agreement securing this Note after any applicable cure periods set forth in
such Security Agreement; or 

vii.

Any lien, security
interest, or obligation granted by Black Diamond or its affiliates under the Security Agreement shall, in any material manner,
be avoided, terminated, revoked or declared void or invalid, or lose its applicable priority or perfected status; or 

viii.

Makers, or its
affiliates, or any one of them, does not preserve, or protect, or maintain, or account to Payee’s satisfaction for, any
of the Collateral or its proceeds; or 

ix.

Any representation
or warranty made by Makers or any of their subsidiaries or affiliates in this Note or the Security Agreement, or by any of their
officers in a writing furnished in connection with this Note or the Security Agreement, which are false in any material respect
on the date made; or 

x.

Makers, or either
of them, may not change its business structure through merger, acquisition or other corporate action, into a non-operating entity
such as a public shell, without Lender’s prior written consent; 

    	 

    	 

    

 

xi.

Any occurrence
of whatsoever nature (including, without limitation, any adverse determination in any litigation, arbitration, or governmental
investigation or proceeding) which could reasonably be expected to materially and adversely affect (a) the financial condition
or operation of any Obligor, (b) the ability of any Obligor to perform their material obligations under this Note or the Security
Agreement, or any writing executed pursuant thereto, (c) the validity or enforceability of the material obligations of any Obligor
under this Note or the Security Agreement, or any writing executed pursuant thereto, (d) the rights and remedies of the Payee
against any Obligor with respect to the Obligations (as defined in the Security Agreement), or (e) the timely payment of the principal
of and interest on this Note or other amounts payable by the Makers hereunder; 

xii.

Failure to maintain
the vehicles or perform inspections or deliver inspection reports, as required by the Security Agreement or this Note. 

e.

“Loan
Documents” shall mean this Note, the Secured Promissory Note of 2015, the Security Agreement and all documents executed
in connection with any of those documents. 

f.

“Maturity”
shall mean the date of April 3, 2018.  

g.

“Operational
Cash Flows” shall mean the net cash flows from operating activities as indicated on Legend’s publicly filed
10-Q or 10-K, in the Operating section of the respective Statements of Cash Flows. 

h.

“Restatement
Effective Date” shall mean April 3, 2016. 

i.

“Secured
Promissory Note of 2015” shall mean the predecessor note executed by Makers, dated April 3, 2015, in the original principal
amount of $2,854,000.00, with an original maturity date of April 3, 2016. 

j.

“Security
Agreement” shall mean that Security Agreement executed by Black Diamond and certain of its affiliates on April 3,
2015, as it may have been or may be amended, restated, or otherwise modified from time to time in accordance with its terms. 

2.

Interest.
Interest : (a) has accrued at the rate of 5.0% per annum from April 3, 2015 until the Restatement Effective Date; and (b) shall
accrue at the rate of 15.0% per annum from and after the Restatement Effective Date, on all outstanding balances until paid in
full. Interest shall be calculated on the basis of actual days elapsed but computed as if each year consisted of 360 days. Interest
on the Note shall be computed by applying the ratio of the annual interest rate over a year of 360 days, multiplied by the outstanding
principal balance, multiplied by the actual number of days the principal balance is outstanding. Payee shall determine the interest
payable in accordance with this Note, and Payee’s determination thereof shall be conclusive and binding, absent manifest
error. Payee waives all default interest prior to the Restatement Effective Date. 

    	 

    	 

    

 

3.

Payment
of Principal and Interest. All principal, accrued interest, expenses, and fees shall be paid by Makers in Dollars constituting
immediately available funds on the date of payment thereof. All balances due, whether principal, interest, fees, or costs shall
be paid by Makers in full upon Maturity. Prior to Maturity, (a) Makers shall make a payment in the amount of $1,000,000 on or
before April 12, 2016, and (b) for each and every calendar quarter, Makers shall make a payment to Payee in the amount of 20%
of the quarterly operational cash flow of Legend, as disclosed in Legend’s Form 10-Q or Form 10-K (for the fourth quarter
payment), if any, no later than ten days after each filing of Legend’s Form 10-Q or Form 10-K beginning with the quarter
ending June 30, 2016. Payment hereunder shall be made without setoff or counterclaim to Payee at Sher Trucking L.L.C. 3111
Bel Air Dr. #21A, Las Vegas, NV 89109, or such other location as Payee shall instruct. Whenever
any payment to be made hereunder shall be stated to be due on a day which is not a Business Day, such payment shall be made on
or before the next succeeding Business Day and such extension of time, in the case of a payment of principal, shall be included
in the computation of any interest on such principal payment. 

a.

Payment
of Credit Card Debt. Makers jointly and severally agree that they have jointly and severally incurred the obligations
owed with respect to the Credit Card Debt and that they will not incur any further principal obligations with respect to the Credit
Card Debt. In addition to all other payments required herein, Makers (i) will make monthly payments of at least $2,000.00 each
month commencing in May 2016, through October 2016, by no later than the monthly due date of payments as stated on the issuer’s
statement of the Credit Card Debt, and (ii) will make equal monthly payments each month commencing in November 2016, through April
2017, by no later than the monthly due date of payments as stated on the issuer’s statement of the Credit Card Debt, in
an amount that will discharge in full the Credit Card by no later than April 3, 2017. 

4.

Default
Interest. In the event an Event of Default shall occur and be continuing, default interest will be due and owing by Makers
at the rate otherwise applicable to this Note plus an additional 13% per annum. The Default Interest shall be due and payable
upon demand. Default Interest shall be calculated on the basis of actual days elapsed but computed as if each year consisted of
360 days. Default Interest on this Note shall be computed by applying the ratio of the annual interest rate over a year of 360
days, multiplied by the outstanding principal balance, multiplied by the actual number of days the principal balance is outstanding.
Payee shall determine the default interest payable in accordance with this Note, and Payee’s determination thereof shall
be conclusive and binding, absent manifest error. 

5.

Prepayments.
Makers shall have a right to prepay, and Payee shall have an obligation to accept, any tendered payment of all or any part (but
in a minimum amount of $10,000) of the principal of this Note before it is due and any such prepayment shall be without penalty
or premium. 

6.

Security
for Payment and Sale of Collateral. The indebtedness evidenced by this Note continues to be secured by the Security Agreement,
which creates legal and valid encumbrances on and an assignment of all of the Collateral (as defined in the Security Agreement)
and Makers reaffirm and ratify all representations, warranties, covenants, and obligations under the Security Agreement and the
Loan Documents.  

    	 

    	 

    

 

a.

Payee
shall have such rights with respect to the Collateral as set forth in the Security Agreement. In addition, Makers agree that:
(i) each vehicle’s daily driver visual inspection reports will be provided in a monthly package within five days of the
end of each month; (ii) within five days of the end of each month, Makers will provide the driver’s monthly fleet status
report reflecting needed repairs (with estimated costs) and repairs performed, and will also include the mileage on the vehicle,
and the serial number of each tire and each wheel on the vehicle; (iii) a copy of all third party invoices evidencing all repairs
on the Collateral performed by third parties will be provided to Payee with the monthly fleet status report; and (iv) Makers will
provide Payee with the location of each vehicle that is part of the Collateral with the monthly fleet status report.  

b.

Makers
and Payee agree that any Collateral sold at any auction conducted by Ritchie Brothers is in conformity with reasonable commercial
practices and will be a commercially reasonable sale of that Collateral, provided the Collateral is included in the Ritchie Brothers
auction marketing materials prior to the date of sale. Neither Makers nor Payee will be responsible for the action or inaction
of Ritchie Brothers in the conduct of any auction.  

c.

It
is the intent of the parties that the Collateral be sold quickly to reduce the amount of the Obligations owed by Makers. Makers
will actively commence marketing of trailers that are part of the Collateral for sale commencing within three days of the date
hereof. After twenty (20) days following the request of Payee (notwithstanding the lack of an Event of Default), trailers that
are part of the Collateral and designated by Payee will be placed for auction at the next Ritchie Brothers auction (or other auction
house acceptable to Makers and Payee) and the net proceeds of sale, after auction house costs and any other expenses incurred
by Payee in connection with the auction or sale of the collateral including shipping, refurbishing, preparation and advertising,
will be applied to the balance of this Note. After ninety (90) days following the request of Payee (notwithstanding the lack of
an Event of Default), trucks that are part of the Collateral and designated by Payee will be placed for auction at the next Ritchie
Brothers auction (or other auction house acceptable to Makers and Payee) and the net proceeds of sale, after auction house costs
and any other expenses incurred by Payee in connection with the auction or sale of the collateral including shipping, refurbishing,
preparation and advertising, will be applied to the balance of this Note, provided however that Payee may not exercise its ability
to request the auction of trucks that are part of the Collateral prior to July 5, 2016. 

7.

Occurrence
of Event of Default.  

a.

If
any Event of Default shall occur for any reason, then and in any such event, in addition to all rights and remedies of Payee under
applicable law or otherwise, all such rights and remedies being cumulative, not exclusive and enforceable alternatively, successively
and concurrently, Payee may, at its option, declare any or all amounts owing under this Note, to be due and payable provided,
however, that upon the occurrence of any Event of Default of the kind described in clauses (iv) or (v) of the definition of Event
of Default, the obligations of Makers hereunder shall automatically become and be due and payable in full, without notice of any
kind. Upon and during the continuance of an Event of Default, Makers shall permit Payee and/or its accountants or other professional
advisors access at reasonable times and on reasonable prior notice to the books, accounts and records of Makers and to meet and
discuss matters with Makers and their advisors. 

    	 

    	 

    

  

8.

Notices.
All notices required or permitted hereunder shall be in writing and shall be deemed to have been given or made as follows:
(a) if sent by hand delivery, upon delivery; (b) if sent by mail, upon the earlier of the date of receipt or three days
after deposit in the United States postal system by first class mail, postage prepaid; and (c) if sent by overnight courier,
upon delivery, addressed to Makers or Payee at the following respective addresses or such
other address as such party may from time to time designate by written notice to the other: 

	Payee:	 	Sher
Trucking L.L.C.

3111 Bel Air Dr. #21A

Las Vegas, NV 89109
	 	 	 
	Makers:	 	Legend
Oil & Gas, Ltd.

555 North Point Center East

Suite 410

Alpharetta, Georgia 30022
	 	 	 
	 	 	and
	 	 	 
	 	 	Black Diamond Energy Holdings LLC

555 NorthPoint Center
East

Suite 410

Alpharetta, GA 30022

 

9.

Expenses
and Legal Fees. Without notice and without the Makers’ consent, Payee may incur expenses to collect amounts due
under this Note, enforce the terms of this Note or any other Loan Documents, and preserve or dispose of the Collateral. Among
other things, the expenses may include payments for property taxes, prior liens, insurance (including force-placed insurance),
appraisals, environmental remediation costs, and attorney’s fees and costs. If Payee incurs any of these expenses, then
Payee may demand immediate repayment from Makers or add the expenses to the principal balance.
If Payee requests legal services by an attorney for enforcement, modification or collection, or through any legal proceeding at
law or in equity or in bankruptcy, receivership, out-of-court workout, or other court proceedings, then Makers agree to pay all
costs including, but not limited to, court costs and attorneys’ fees. 

10.

Joint
and Several Liability, Certain Waivers.  

a.

BY EXECUTION
OF THIS RESTATED AND AMENDED NOTE, EACH MAKER REAFFIRMS AND AGREES THAT IT IS LIABLE, JOINTLY AND SEVERALLY WITH THE OTHER MAKER,
FOR THE PAYMENT AND PEFORMANCE OF ALL OBLIGATIONS UNDER THIS NOTE, AND THAT THE PAYEE CAN ENFORCE SUCH OBLIGATIONS AGAINST ANY
MAKER, IN THE PAYEE’S SOLE DISCRETION. 

    	 

    	 

    

  

b.

Each
Maker thereof waives the benefit of any and all defenses and discharges available to a guarantor, surety, indorser or accommodation
party dependent on its character as such. Without limiting the generality of the foregoing, to the extent permitted by applicable
law, each Maker waives presentment, demand for payment and notice of nonpayment or protest of any note or other instrument evidencing
any of the obligations under this Note and agrees that such Maker’s liability hereunder and the security interest shall not
be affected or impaired in any way by any of the following acts and things: (i) any sale, pledge, surrender, compromise, settlement,
release, renewal, extension, indulgence, alteration, substitution, exchange, change in modification or other disposition of any
of the obligations under this Note, any evidence thereof or any collateral therefor, (ii) any acceptance or release of collateral
for or guarantors of any of the obligations under this Note; (iii) any failure, neglect, or omission to realize upon or protect
any of the obligations under this Note, to obtain, perfect, enforce or realize upon any collateral therefor or to exercise any
lien upon or right of appropriation of any moneys, credits or property toward the liquidation of any of the obligations under this
Note, (iv) any application of payments or credits upon any of the obligations under this Note, or (v) any irregularity or avoidability
of the obligations under this Note (including any avoidability of the obligations under this Note as fraudulent transfers or fraudulent
conveyances under any applicable law). The Payee shall not be required, before exercising its rights under this Note, to first
resort for payment of any of the obligations under this Note to any other person or entity, its or their properties or estates,
or any collateral, property, liens or other rights or remedies whatsoever. To the extent permitted by applicable law, each Maker
agrees not to exercise any right of contribution, recourse, subrogation or reimbursement available to it against any other person
or property, unless and until all obligations under this Note and all other debts, liabilities and obligations owed by such Maker
or Subsidiary to Payee have been paid and discharged. Each Maker expects to derive benefits from the transactions resulting in
the creation of the obligations under this Note. Payee may rely conclusively on the continuing warranty, hereby made, that each
Maker continues to be benefitted by the Payee’s extension of credit accommodations to the Maker, the Payee shall have no
duty to inquire into or confirm the receipt of any such benefits and this Note shall be effective and enforceable by Payee without
regard to the receipt, nature or value of any such benefits.

c.

General
Release. Makers, for and on behalf of itself and its legal representatives, successors and assigns, waives, releases, relinquishes
and forever discharges Payee, its parents, subsidiaries, and affiliates, its respective past, present and future directors, officers,
managers, agents, employees, insurers, attorneys, representatives and all of their respective heirs, successors and assigns, (collectively,
the “Released Parties”), of and from any and all manner of action or causes of action, suits, claims, demands,
judgments, damages, levies and executions of whatsoever kind, nature and/or description arising on or before the execution of
this Note, including, without limitation, any claims, losses, costs or damages, including compensatory and punitive damages, in
each case whether known or unknown, asserted or unasserted, liquidated or unliquidated, fixed or contingent, direct or indirect,
which Makers, or its legal representatives, successors or assigns, ever had or now has or may claim to have against any of the
Released Parties, with respect to any matter whatsoever, including, without limitation, the Secured Promissory Note of 2015, the
Security Agreement, the administration of any of the Loan Documents, the negotiations relating to this Note and the other Loan
Documents executed in connection herewith and any other instruments and agreements executed by Borrower in connection therewith
or herewith, arising on or before the Agreement Date. Borrower agrees not to sue any Released Party or in any way assist any other
person or entity in suing a Released Party with respect to any claim released herein. 

    	 

    	 

    

 

d.

No
Duress or Reliance. Makers acknowledge and agree that Makers have received the advice of independent counsel, appraisers and
accountants selected by Makers, or the opportunity to obtain such advice, before entering into this Note and the other Loan Documents,
and Makers have not relied upon Payee or any of its officers, directors, managers, employees, agents or attorneys concerning any
aspect of the transactions contemplated by this Note and the other Loan Documents. Makers have executed and delivered this Note
of Makers’ own free will and will execute and deliver the other docuemnts required herein of Makers’ own free will.
Makers further acknowledge that Payee has not taken advantage of Makers by threats, overreaching, unconscionable conduct or other
activities, and that Makers are proceeding in all transactions contemplated hereby as a volunteer and in what Makers perceive
to be Makers’ own best interest. 

e.

No Further
Commitment to Extend, Restructure or Forbear. EXCEPT AS SPECIFICALLY PROVIDED HEREIN, PAYEE IS NOT COMMITTED, AND IS NOT COMMITTING
AT THIS TIME, TO EXTEND THE MATURITY OR OTHERWISE RESTRUCTURE, OR FORBEAR FROM EXERCISING ANY OF ITS RIGHTS OR REMEDIES UNDER
THE LOAN DOCUMENTS. NO PRIOR COURSE OF DEALING, NO USAGE OF TRADE, AND NO ORAL STATEMENTS OR COMMENTS BY PAYEE OR ITS OFFICERS,
EMPLOYEES, ATTORNEYS OR OTHER AGENTS WILL BE DEEMED TO BE A COMMITMENT BY PAYEE TO FORBEAR FROM EXERCISING ANY OF ITS RIGHTS OR
REMEDIES, EXCEPT AS EXPRESSLY SET FORTH HEREIN, OR UNLESS THE SAME SHALL BE REDUCED IN WRITING AND SIGNED BY AN AUTHORIZED REPRESENTATIVE
OF PAYEE. 

11.

Interest
Laws. Any provision in this Note, the Security Agreement or any other document executed or delivered in connection herewith,
or in any other agreement or commitment, whether written or oral, expressed or implied, to the contrary notwithstanding, neither
Payee nor any holder hereof shall in any event be entitled to receive or collect, nor shall or may amounts received hereunder
be credited, so that Payee or any holder hereof shall be paid, as interest, a sum greater than the maximum amount permitted by
applicable law to be charged to the person, partnership, firm, or corporation primarily obligated to pay this Note at the time
in question. If any construction of this Note or any document securing this Note, or any and all other papers, agreements, or
commitments, indicate a different right given to Payee or any holder hereof to ask for, demand, or receive any larger sum as interest,
such is a mistake in calculation or wording which this clause shall override and control, it being the intention of the parties
that this Note and any other instruments securing the payment of this Note or executed or delivered in connection herewith shall
in all things comply with applicable law and proper adjustments shall automatically be made accordingly. 

    	 

    	 

    

 

12.

Choice
of Law and Forum. Except to the extent that the laws of the United States may apply to the terms hereof, the substantive laws
of the State of Utah shall govern the validity, construction, enforcement, and interpretation of this Note, without reference
to its conflict of laws rules and principles. With respect to any legal action or proceeding arising under this Note, each
Maker, to the fullest extent permitted by law, hereby: (i) submits to the jurisdiction of the state and federal courts in the
State of Utah; (ii) agrees that the venue of any such action or proceeding may be laid in Salt Lake County, Utah and waives any
claim that the same is an inconvenient forum; (iii) stipulates that service of process in any such action or proceeding shall
be properly made if mailed by any form of registered or certified mail (airmail if international), postage prepaid, to the address
then registered in Secured Party’s records for Debtor, and that any process so served shall be effective ten (10) Business
Days after mailing; (iv) waives any right to immunity from any such action or proceeding and waives any immunity or exemption
of any property, wherever located, from garnishment, levy, execution, seizure or attachment prior to or in execution of judgment,
or sale under execution or other process for the collection of debts; and (v) waives any right to interpose any set-off or non-compulsory
counterclaim or to plead laches or any statute of limitations as a defense in any such action or proceeding, and waives all provisions
and requirements of law for the benefit of Debtor now or hereafter in force. No provision of this Agreement shall limit Secured
Party’s right to serve legal process in any other manner permitted by law or to bring any such action or proceeding in any
other competent jurisdiction. 

13.

Successors-in-Interest.
This Note binds and may be enforced against the successors-in-interest of Makers, except as otherwise provided. This Note shall
inure to the benefit of and may be enforced by Payee and its successors and assigns. This Note may not be assigned by Makers without
the prior written consent of Payee. The Payee may at any time sell, assign, transfer, grant participations in, or otherwise
dispose of any portion of this Note and the Security Agreement to any persons or entity. 

14.

Amendments.
This Note may be amended only by an instrument in writing signed by Payee and Makers.  

15.

Severability.
The unenforceability of any provision of this Note will not affect the enforceability or validity of any other provision herein. 

16.

Continuing
Obligations. The obligations and liabilities of Makers under this Note shall be binding upon and enforceable against Makers
and their successors and assigns. The representations, undertakings, and covenants made by the undersigned under this Note are,
and shall be deemed to be, of continuing force and effect until all indebtedness and obligations of the undersigned under this
Note have been fully and finally paid and performed. 

17.

Authority.
Makers hereby represent and warrant to Payee that, by their execution below, as follows:

    	 

    	 

    

 

(i)
Makers have the full power, authority, and legal right to execute and deliver this Note and that the indebtedness evidenced hereby
constitutes a valid and binding obligation of Makers without exception or limitation, (ii) Makers (A) are duly organized,
validly existing and in good standing under the laws of their state of organization; (B) have all requisite power and authority
to own, lease and operate its properties and to carry on its business as it is now being conducted; and (C) are qualified to do
business in all jurisdictions in which the nature of Maker’s business requires that Maker be qualified, and

(ii) The execution,
delivery and performance by each Maker of this Note will not (A) violate any provision of any existing law or regulation, or any
judgment, order or award of any court, arbitrator or governmental authority; (B) violate any provision of Debtor’s articles
of incorporation; or (C) violate, be in conflict with, result in a breach of or constitute a default under any agreement or instrument
to which Debtor is a party or by which Debtor or any of its properties may be bound.

18.

Multiple
Counterparts. This Note may be executed in multiple counterparts, each of which will be deemed an original and all of which
shall constitute one and the same instrument. Facsimile and electronic signatures shall be treated as original signatures for
all purposes. 

19.

Time
is of the Essence. Time is of the essence to all terms and provisions set forth herein. 

20.

Waiver
of Trial by Jury. EACH MAKER AND THE PAYEE IRREVOCABLY WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING
OUT OF OR RELATING TO THIS NOTE OR THE SECURITY AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY. 

21.

Makers’
Understanding. MAKERS ACKNOWLEDGE THAT: (A) THIS NOTE CONTAINS A COMPLETE RELEASE OF CLAIMS AND WAIVERS OF CERTAIN RIGHTS;
(B) EACH HAS READ AND UNDERSTOOD THIS NOTE IN ITS ENTIRETY PRIOR TO SIGNING AND FULLY AGREES TO EACH AND EVERY PROVISION HEREOF;
AND (C) EACH HAS RECEIVED A COPY HEREOF. 

22.

This
Note amends and restates the Secured Promissory Note of 2015 to Payee ( the “Prior Notes”), and no novation
of the indebtedness evidenced thereby is intended nor shall any such novation be deemed to have occurred on account of the execution
and delivery of this Note or otherwise. Upon execution and delivery of this Note, all Prior Notes shall be deemed superseded,
replaced, and no longer in effect. 

 

 

[Signature appears
on following page]

 

    	 

    	 

    

IN
WITNESS HEREOF, the undersigned have caused this Amended and Restated Secured Promissory Note to be duly executed and delivered
on the date first given above.

 

	 	MAKERS:
	 	 
	 	 
	 	LEGEND OIL AND GAS, LTD.
	 	 
	 	 
	 	By:	 	 
	 	Name:	 	 
	 	Title:	 	 
	 	 
	 	 
	 	BLACK DIAMOND ENERGY 

    HOLDINGS LLC
	 	 
	 	 
	 	By:	 	 
	 	Name:	 	 
	 	Title:	 	 
	 	 
	 	 

 

	 	 
	 	 
	Upon the consent and agreement of PAYEE:	 
	 	 
	SHER TRUCKING L.L.C.	 

	 	 
	 	 
	By:	 	 	 
	Name:	 	 	 
	Title:	 	 	 

 

 

    	[Signature page to Amended and Restated Secured Promissory Note]Exhibit

Exhibit 10.1

SENIOR TERM LOAN 
CREDIT AGREEMENT
dated as of April 1, 2016
between
CVR Partners, LP
as Borrower
 and
American Entertainment Properties Corp.
as Lender

TABLE OF CONTENTS
	
				
	 
	 
	Page

	Article I CERTAIN DEFINITIONS; CONSTRUCTION
	1
	

	Section 1.1
	Definitions
	1
	

	Section 1.2
	Other Definitional Provisions
	5
	

	Section 1.3
	Accounting Terms and Principles
	5
	

	Article II AMOUNT AND TERMS OF THE LOANS
	5
	

	Section 2.1
	Loan Commitment
	5
	

	Section 2.2
	Borrowing Procedure
	6
	

	Section 2.3
	Optional Reduction and Termination of Loan Commitment
	6
	

	Section 2.4
	Repayment of Loans
	6
	

	Section 2.5
	Prepayment
	6
	

	Section 2.6
	Interest on Loans
	6
	

	Section 2.7
	Computation of Interest
	6
	

	Section 2.8
	Evidence of Debt
	6
	

	Section 2.9
	Payments Generally
	7
	

	Section 2.10
	Taxes
	7
	

	Article III CONDITIONS PRECEDENT TO LANS
	7
	

	Section 3.1
	Conditions to Effectiveness
	7
	

	Section 3.2
	Conditions to Making of each Loan
	8
	

	Article IV REPRESENTATIONS AND WARRANTIES 
	8
	

	Section 4.1
	Corporate Existence; Compliance with Law
	8
	

	Section 4.2
	Power; Authorization; Enforceable Obligations
	8
	

	Section 4.3
	No Legal Bar
	9
	

	Section 4.4
	No Material Litigation
	9
	

	Section 4.5
	No Default
	9
	

	Section 4.6
	Use of Proceeds
	9
	

	Article V COVENANTS
	9
	

	Section 5.1
	Delivery of Financial Information
	9
	

	Section 5.2
	Notice of Default
	9
	

	Section 5.3
	Conduct of Business and Maintenance of Existence, etc.
	9
	

	Article VI EVENTS OF DEFAULT
	10
	

	Section 6.1
	Events of Default
	10
	

	Article VII MISCELLANEOUS
	11
	

	Section 7.1
	Notices
	11
	

	Section 7.2
	Waiver; Amendments
	12
	

	Section 7.3
	Expenses; Indemnification
	12
	

	Section 7.4
	Successors and Assigns
	13
	

	Section 7.5
	Governing Law
	13
	

	Section 7.6
	Counterparts; Integration
	13
	

	Section 7.7
	Survival
	13
	

	Section 7.8
	Severability
	13
	

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TERM LOAN CREDIT AGREEMENT
THIS SENIOR TERM LOAN CREDIT AGREEMENT (this “Agreement”) is made and entered into as of April 1, 2016 by and among American Entertainment Properties Corp., a Delaware corporation (the “Lender”) and CVR Partners, LP a Delaware limited partnership (the “Borrower”).
W I T N E S S E T H:
WHEREAS, the Borrower has advised the Lender that it intends to acquire, indirectly through certain wholly-owned subsidiaries, all of the outstanding equity interests in Rentech Nitrogen Partners, L.P. (the “Partnership”) and Rentech Nitrogen GP, LLC (the “Partnership GP”), pursuant to that Agreement and Plan of Merger, dated as of August 9, 2015, among the Borrower, Lux Merger Sub 1 LLC, Lux Merger Sub 2 LLC, the Partnership and the Partnership GP, pursuant to which each of the Partnership and Partnership GP will become wholly-owned subsidiaries of the Borrower (the “Acquisition”).
WHEREAS, in connection with the Acquisition, the Borrower has requested that the Lender commit to provide loans to the Borrower in an aggregate principal amount of $320,000,000, which (x) will be used by the Borrower to provide funds to the Partnership to make a change of control offer and, if applicable, a “clean-up” redemption in accordance with the Indenture, dated as of April 12, 2013, among the Partnership, Rentech Nitrogen Finance Corporation, each of the guarantors party thereto, Wells Fargo Bank, National Association, as trustee, and Wilmington Trust, National Association, as collateral trustee, pursuant to which the Partnership’s 6.500% Second Lien Senior Secured Notes due 2021 (the “Second Lien Notes”) were issued or (y) will be used by the Borrower or the Partnership to make a tender offer for the Second Lien Notes and, in each case, pay fees and expenses related thereto.  
WHEREAS, subject to the terms and conditions of this Agreement, the Lender is willing to make the requested loans to the Borrower.
NOW, THEREFORE, in consideration of the premises and the mutual covenants herein contained, the Borrower and the Lender agree as follows:
Article I 
DEFINITIONS; CONSTRUCTION
Section 1.1    Definitions. The following terms used herein shall have the meanings herein specified (to be equally applicable to both the singular and plural forms of the terms defined):
“Affiliate” means, with respect to any Person, any other Person that directly or indirectly through one or more intermediaries Controls, is Controlled by or is under common Control with, the Person in question.
“Agreement” shall have the meaning assigned to such term in the opening paragraph of this Agreement.

“Availability Period” shall mean the period from and including the Closing Date to but excluding the earlier of (i) the date that is one hundred eighty (180) days following the Closing Date and (ii) the date of termination of the Loan Commitment.
“Borrower Affiliate” shall mean the Borrower and each Subsidiary thereof.
“Borrower” shall have the meaning assigned to such term in the opening paragraph of this Agreement.
“Business Day” shall mean a day other than a Saturday, Sunday or other day on which commercial banks in New York are authorized or required by law to close.
“Capital Lease Obligations” shall mean, with respect to any Person, the obligations of such Person to pay rent or other amounts under any lease of (or other arrangement conveying the right to use) real or personal property, or a combination thereof, which obligations are required to be classified and accounted for as capital leases on a balance sheet of such Person under GAAP; and, for the purposes of this Agreement, the amount of such obligations at any time shall be the capitalized amount thereof at such time determined in accordance with GAAP.
 “Closing Date” shall have the meaning assigned to such term in Section 3.1.
“Code” shall mean the United States Internal Revenue Code of 1986, as amended from time to time.
“Control” means the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of a Person, whether through ownership of voting securities, by contract or otherwise.
“Default” means any of the events specified in Article VI, whether or not any requirement for the giving of notice, the lapse of time, or both, has been satisfied.
“Default Interest” shall have the meaning set forth in Section 2.6(b).
“Default Interest Rate” shall mean a rate equal to the interest rate applicable to the Loans, plus an additional 2% per annum.
“Dollars” and “$” shall mean the lawful currency of the United States of America.
“Event of Default” shall mean any of the events specified in Article VI, provided that any requirement for the giving of notice, the lapse of time, or both, has been satisfied.
“Excluded Taxes” shall mean, with respect to the Lender, taxes imposed on or measured by its overall net income, franchise taxes, and any branch profits or similar tax imposed on it by any jurisdiction.
“GAAP” shall mean United States generally accepted accounting principles applied on a consistent basis.

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“Governmental Authority” shall mean any nation or government, any state or other political subdivision thereof and any entity exercising executive, legislative, judicial, regulatory or administrative functions of or pertaining to government.
“Guarantee Obligation” shall mean as to any Person (the “guaranteeing person”), any obligation of (a) the guaranteeing person or (b) another Person (including, without limitation, any bank under any letter of credit), if to induce the creation of such obligation of such other Person the guaranteeing person has issued a reimbursement, counterindemnity or similar obligation, in either case guaranteeing or in effect guaranteeing any Indebtedness, leases, dividends or other obligations (the “primary obligations”) of any other third Person (the “primary obligor”) in any manner, whether directly or indirectly; provided, however, that the term Guarantee Obligation shall not include endorsements of instruments for deposit or collection in the ordinary course of business. The amount of any Guarantee Obligation of any guaranteeing person shall be deemed to be the lower of (a) an amount equal to the stated or determinable amount of the primary obligation in respect of which such Guarantee Obligation is made and (b) the maximum amount for which such guaranteeing person may be liable pursuant to the terms of the instrument embodying such Guarantee Obligation, unless such primary obligation and the maximum amount for which such guaranteeing person may be liable are not stated or determinable, in which case the amount of such Guarantee Obligation shall be such guaranteeing person’s maximum reasonably anticipated liability in respect thereof as determined by the Borrower in good faith.
“Hedge Agreements” shall mean all interest rate or currency swaps, caps or collar agreements, foreign exchange agreements, commodity contracts or similar arrangements entered into by the Borrower or its Subsidiaries providing for protection against fluctuations in interest rates, currency exchange rates, commodity prices or the exchange of nominal interest obligations, either generally or under specific contingencies.
“Indebtedness” shall mean of any Person at any date, without duplication, (a) all indebtedness of such Person for borrowed money, (b) all obligations of such Person for the deferred purchase price of Property or services (other than trade payables incurred in the ordinary course of such Person’s business), (c) all obligations of such Person evidenced by notes, bonds, debentures or other similar instruments, (d) all indebtedness created or arising under any conditional sale or other title retention agreement with respect to property or assets acquired by such Person (even though the rights and remedies of the seller or lender under such agreement in the event of default are limited to repossession or sale of such property or assets), (e) all Capital Lease Obligations of such Person, (f) all obligations of such Person, contingent or otherwise, as an account party or applicant under acceptance, letter of credit or similar facilities, (g) all obligations of such Person, contingent or otherwise, to purchase, redeem, retire or otherwise acquire for value any equity interests of such Person, (h) all Guarantee Obligations of such Person in respect of obligations of the kind referred to in clauses (a) through (g) above; (i) all obligations of the kind referred to in clauses (a) through (h) above secured by (or for which the holder of such obligation has an existing right, contingent or otherwise, to be secured by) any Lien on property (including, without limitation, accounts and contract rights) owned by such Person, whether or not such Person has assumed or become liable for the payment of such obligation and (j) all obligations of such Person in respect of Hedge Agreements.

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“Lender” shall have the meaning assigned to such term in the opening paragraph of this Agreement.
“Lender Indemnitee” shall mean Lender and each of the directors, officers, employees, agents, trustees, representatives, attorneys, consultants and advisors of or to Lender.
“Lien” shall mean any mortgage, pledge, hypothecation, assignment, deposit arrangement, encumbrance, lien (statutory or other), charge or other security interest or any preference, priority or other security agreement or preferential arrangement of any kind or nature whatsoever (including, without limitation, any conditional sale or other title retention agreement and any capital lease having substantially the same economic effect as any of the foregoing).
“Loan” shall have the meaning set forth in Section 2.1.
“Loan Commitment” shall mean the obligation of the Lender to make Loans hereunder in an aggregate principal amount at any time outstanding not exceeding $320,000,000.
“Loan Documents” shall mean, collectively, this Agreement and each Notice of Borrowing.
“Material Adverse Effect” shall mean a material adverse effect on (a) the business, assets, liabilities, operations or condition (financial or otherwise) of the Borrower and its Subsidiaries taken as a whole, (b) the ability of the Borrower to perform its obligations under this Agreement, or (c) the ability of the Lender to enforce this Agreement.
“Maturity Date” shall mean April 1, 2018.
“MLP GP” shall mean CVR GP, LLC, a Delaware limited liability company.
“Notice of Borrowing” shall have the meaning set forth in Section 2.2.
“Obligations” shall mean, with respect to the Borrower, the unpaid principal of and interest on (including, without limitation, interest accruing after the maturity of the Loans of the Borrower and interest accruing after the filing of any petition in bankruptcy, or the commencement of any insolvency, reorganization or like proceeding, relating to the Borrower, whether or not a claim for post-filing or post-petition interest is allowed in such proceeding) the Loans and all other obligations and liabilities of the Borrower to the Lender, whether direct or indirect, absolute or contingent, due or to become due, or now existing or hereafter incurred, which may arise under, out of, or in connection with, any Loan Document.
“Payment Office” shall mean the office of the Lender located at 767 Fifth Avenue, Suite 4700, New York, NY 10153, or such other location as to which the Lender shall have given written notice to the Borrower.
“Person” shall mean an individual, partnership, corporation, limited liability company, business trust, joint stock company, trust, unincorporated association, joint venture, Governmental Authority or other entity of whatever nature.

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“Quarterly Payment Date” means the last Business Day of March, June, September and December.
“Subsidiary” shall mean as to any Person, a corporation, partnership, limited liability company or other entity of which shares of stock or other ownership interests having ordinary voting power (other than stock or such other ownership interests having such power only by reason of the happening of a contingency) to elect a majority of the board of directors or other managers of such corporation, partnership or other entity are at the time owned, or the management of which is otherwise controlled, directly or indirectly through one or more intermediaries, or both, by such Person.
“Taxes” shall mean all present or future taxes, levies, imposts, duties, deductions, withholdings (including backup withholding), assessments, fees or other charges imposed by any Governmental Authority, including any interest, additions to tax or penalties applicable thereto, provided that “Taxes” shall not include Excluded Taxes.
Section 1.2    Other Definitional Provisions.
(a)    Unless otherwise specified therein, all terms defined in this Agreement shall have the defined meanings when used in the other Loan Documents or any certificate or other document made or delivered pursuant hereto or thereto.
(b)    The words “hereof”, “herein” and “hereunder” and words of similar import when used in this Agreement shall refer to this Agreement as a whole and not to any particular provision of this Agreement, and Section, Schedule and Exhibit references are to this Agreement unless otherwise specified.
(c)    The meanings given to terms defined herein shall be equally applicable to both the singular and plural forms of such terms.
(d)    The terms “Lender” shall include, without limitation, its successors.
Section 1.3    Accounting Terms and Principles.  Except as set forth below, all accounting terms not specifically defined herein shall be construed in conformity with GAAP and all accounting determinations required to be made pursuant hereto shall, unless expressly otherwise provided herein, be made in conformity with GAAP.
ARTICLE II     
AMOUNT AND TERMS OF THE LOANS
Section 2.1    Loan Commitment.
(a)    Subject to the terms and conditions set forth herein, the Lender agrees to make term loans (each, a “Loan” and, collectively, the “Loans”) to the Borrower during the Availability Period in an aggregate principal amount at any time outstanding not to exceed the Loan Commitment.

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(b)    Amounts borrowed under Section 2.1(a) and subsequently repaid or prepaid may not be reborrowed.
Section 2.2    Borrowing Procedure. The Borrower shall give the Lender written notice (or telephonic notice promptly confirmed in writing) of each borrowing to be made by the Borrower substantially in the form of Exhibit A (a “Notice of Borrowing”), each such Notice of Borrowing to be delivered prior to noon (Central time) one (1) Business Day before the requested date of each borrowing, unless a shorter period is agreed by the Lender. Each Notice of Borrowing shall be irrevocable and shall specify: (i) the aggregate principal amount of such borrowing and (ii) the date of such borrowing (which shall be a Business Day).
Section 2.3    Optional Reduction and Termination of Loan Commitment.  Upon one (1) Business Day’s written notice to the Lender signed by the Borrower, the Borrower may terminate the Loan Commitment, or permanently reduce the Loan Commitment, provided that each partial reduction of the Loan Commitment shall be in integral multiples of $1,000,000 or more (or such lesser amount as agreed by the Lender).
Section 2.4    Repayment of Loans. On the Maturity Date, the Borrower shall repay any of its Loans then outstanding in full and shall additionally pay to the Lender all other sums, if any, then owing or accrued by it under this Agreement.
Section 2.5    Prepayment. Upon one (1) Business Day’s (or such shorter period agreed by the Lender) written notice from a Borrower to the Lender, the Borrower may voluntarily prepay in whole or in part its Loans without premium or penalty.
Section 2.6    Interest on Loans.
(a)    Each Loan shall accrue interest at a rate equal to 12.0% per annum.
(b)    The Borrower shall pay interest due and payable on its Loans in arrears on each Quarterly Payment Date.
(c)    While an Event of Default exists or after acceleration of the Loans in accordance with Article VI, at the option of the Lender, interest on the unpaid principal amount of the Loans of the Borrower (and any unpaid interest with respect thereto) will accrue at the Default Interest Rate (the “Default Interest”). All Default Interest will be payable by the Borrower upon demand by the Lender.
Section 2.7    Computation of Interest. All computations of interest shall be made by the Lender on the basis of a year of 360 days. Each determination by the Lender of an interest amount hereunder shall, except for manifest error, be final, conclusive and binding for all purposes.
Section 2.8    Evidence of Debt. The Loans made by the Lender shall be evidenced by one or more accounts or records maintained by the Lender. The accounts or records maintained by the Lender shall be conclusive absent manifest error of the amount of the Loans made by the Lender to the Borrower and the interest and payments thereon. Any failure so to record or any error in doing 

6

so shall not, however, limit or otherwise affect the obligation of the Borrower hereunder to pay any amount owing with respect to the Borrower’s Loans.
Section 2.9    Payments Generally.
(a)    All payments by the Borrower to the Lender hereunder shall be made to the Lender at the Payment Office in immediately available funds without setoff or counterclaim. If any payment hereunder shall be due on a day that is not a Business Day, the date for payment shall be extended to the next succeeding Business Day, and, in the case of the payment accruing interest, interest thereon shall be made payable for the period of such extension. All payments hereunder shall be made in Dollars.
(b)    If on the Maturity Date, insufficient funds are received by and available to the Lender to pay fully all amounts of principal and interest due hereunder, such funds shall be applied (i) first, towards payment of interest, and (ii) second, towards payment of principal due hereunder.
Section 2.10    Taxes. Any and all payments by the Borrower under each Loan Document shall be made free and clear of and without deduction for any and all present or future Taxes. If any Taxes shall be required by law to be deducted from or in respect of any sum payable under any Loan Document to the Lender, then the Borrower shall be entitled to make such deduction or withholding and shall timely pay the full amount deducted or withheld to the relevant Governmental Authority in accordance with applicable law and the sum payable by the Borrower shall be increased as necessary so that after such deduction or withholding has been made (including such deductions and withholdings of Taxes applicable to additional sums payable under this Section) the Lender receives an amount equal to the sum it would have received had no such deduction or withholding been made.
ARTICLE III     
CONDITIONS PRECEDENT TO LOANS
Section 3.1    Conditions to Effectiveness. This Agreement shall not become effective until the date (such date, the “Closing Date”) on which each of the following conditions is satisfied (or waived in accordance with Section 7.2):
(a)    The Lender shall have received a counterpart of this Agreement signed by or on behalf of the Borrower.
(b)    No Default or Event of Default shall exist on the Closing Date.
(c)    All representations and warranties of the Borrower set forth in the Loan Documents shall be true and correct in all material respects on and as of the Closing Date.
(d)    The closing of the Acquisition shall have occurred or shall occur substantially concurrently with the effectiveness of this Agreement.

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Section 3.2    Conditions to Making of each Loan. The obligations hereunder of the Lender to make each Loan are subject to the satisfaction (or waiver in accordance with Section 7.2) of the following conditions as of the date each Loan is made:
(a)    The Lender shall have received a signed Notice of Borrowing from the Borrower requesting the making of a Loan on the date specified therein (which shall be no later than the last day of the Availability Period).
(b)    At the time of and immediately after giving effect to the making of the requested Loan, no Default or Event of Default shall exist.
(c)    At the time of and immediately after giving effect to the requested Loan, all representations and warranties of the Borrower set forth in the Loan Documents shall be true and correct in all material respects on and as of such date.
(d)    The conditions referred to in Clause 3.1 shall previously have been satisfied.
ARTICLE IV     
REPRESENTATIONS AND WARRANTIES
To induce the Lender to enter into this Agreement and to make each Loan, the Borrower hereby represents and warrants to the Lender for itself that:
Section 4.1    Corporate Existence; Compliance with Law. The Borrower and each of its Subsidiaries (a) is duly organized, validly existing and in good standing under the laws of the jurisdiction of its organization, (b) has the limited liability company power and authority, and the legal right, to own and operate its property and assets, to lease the property and assets it operates as lessee and to conduct the business in which it is currently engaged, and (c) is in compliance with all requirements of applicable law except, to the extent that the failure to comply therewith could not, in the aggregate, reasonably be expected to have a Material Adverse Effect.
Section 4.2    Power; Authorization; Enforceable Obligations.
(a)    The Borrower has the power and authority, and the legal right, to make, deliver and perform the Loan Documents to which it is a party and to borrow hereunder. The Borrower has taken all necessary action to authorize the execution, delivery and performance of the Loan Documents to which it is a party and, to authorize the borrowings on the terms and conditions of this Agreement.
(b)    No consent or authorization of, filing with, notice to or other act by or in respect of, any Governmental Authority or any other Person is required to be obtained by the Borrower in connection with (i) the borrowings hereunder, (ii) the execution, delivery, validity or enforceability of this Agreement or any of the other Loan Documents, or (iii) the performance of this Agreement or any of the other Loan Documents, except, in each case, for routine consents, authorizations, filings and notices required to be made in the ordinary course of business.

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(c)    This Agreement has been, and, upon execution, each Loan Document shall have been, duly executed and delivered on behalf of the Borrower.
(d)    This Agreement constitutes, and each other Loan Document upon execution will constitute, a legal, valid and binding obligation of the Borrower, enforceable against the Borrower in accordance with its terms, except as enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting the enforcement of creditors’ rights generally and by general equitable principles (whether enforcement is sought by proceedings in equity or at law).
Section 4.3    No Legal Bar. The execution, delivery and performance of this Agreement and the other Loan Documents by the Borrower, the borrowings hereunder and the use of the proceeds thereof will not violate any applicable law or any material agreement of the Borrower and will not result in, or require, the creation or imposition of any Lien on any of its properties or revenues pursuant to any requirement of applicable law or any such agreement.
Section 4.4    No Material Litigation. No litigation, investigation or proceeding of or before any arbitrator or Governmental Authority is pending or, to the knowledge of the Borrower, threatened by or against the Borrower or any Borrower Affiliate of the Borrower, or against any of its or their respective properties or revenues (a) with respect to any of the Loan Documents or any of the transactions contemplated hereby or thereby, or (b) that could reasonably be expected to have a Material Adverse Effect.
Section 4.5    No Default. No Default or Event of Default has occurred and is continuing.
Section 4.6    Use of Proceeds. The proceeds of each Loan shall be used solely as set forth in the second recital of this Agreement.
ARTICLE V     
COVENANTS
Section 5.1    Delivery of Financial Information. The Borrower will deliver to the Lender such financial or other information in respect of its business and financial status as the Lender may reasonably require including, but not limited to, copies of its unaudited quarterly and annual financial statements.
Section 5.2    Notice of Default. The Borrower shall promptly give notice to the Lender of the occurrence of any Default or Event of Default within five (5) Business Days after the Borrower knows or has reason to know thereof.
Section 5.3    Conduct of Business and Maintenance of Existence, etc. The Borrower will (a) (i) preserve, renew and keep in full force and effect its corporate or other existence and (ii) take all reasonable action to maintain all rights, privileges and franchises necessary or desirable in the normal conduct of its business, to the extent that failure to do so could not reasonably be expected to have a Material Adverse Effect; and (b) comply with all agreements and requirements of applicable 

9

law, except to the extent that failure to comply therewith could not, in the aggregate, reasonably be expected to have a Material Adverse Effect.
ARTICLE VI     
EVENTS OF DEFAULT
Section 6.1    Events of Default. If any of the following events shall occur and be continuing:
(a)    The Borrower shall fail to pay the principal of its Loans on the date when due (including the Maturity Date) in accordance with the terms hereof; or the Borrower shall fail to pay any interest on its Loans, or any other amount payable hereunder or under any other Loan Document, within three (3) Business Days after any such interest or other amount becomes due in accordance with the terms hereof or thereof; or
(b)    Any representation or warranty made or deemed made by the Borrower herein or in any other Loan Document or that is contained in any certificate, document or financial or other statement furnished by it at any time under or in connection with this Agreement or any such other Loan Document shall prove to have been inaccurate in any material respect on or as of the date made or deemed made or furnished; or
(c)    The Borrower shall default in the observance or performance of any agreement contained in this Agreement to be performed by it (other than as provided in clause (a) of this Section 6.1), and such default shall continue unremedied for a period of 30 days after the earlier of (i) the date on which an officer of the Borrower becomes aware of such failure and (ii) the date on which written notice thereof shall have been given to the Borrower by the Lender; or
(d)    (i) The Borrower or any Borrower Affiliate shall fail to make any payment on any Indebtedness (other than the Obligations) of the Borrower or any the Borrower Affiliate or on any Guarantee Obligation in respect of Indebtedness of any other Person, and, in each case, such failure relates to Indebtedness having a principal amount of $25,000,000 or more, when the same becomes due and payable (whether by scheduled maturity, required prepayment, acceleration, demand or otherwise) and the effect of such failure is to accelerate the maturity of such Indebtedness, (ii) any other event shall occur or condition shall exist under any agreement or instrument relating to any such Indebtedness, if the effect of such event or condition is to accelerate the maturity of such Indebtedness, (iii) any other event shall occur or condition shall exist under any agreement or instrument relating to any such Indebtedness, if the effect of such event or condition is to permit the acceleration of the maturity of such Indebtedness or (iv) any such Indebtedness shall become or be declared to be due and payable, or be required to be prepaid or repurchased (other than by a regularly scheduled required prepayment), prior to the stated maturity thereof; or
(e)    (i) The Borrower shall commence any case, proceeding or other action (A) under any existing or future law of any jurisdiction, domestic or foreign, relating to bankruptcy, insolvency, reorganization or relief of debtors, seeking to have an order for relief entered with respect to it, or seeking to adjudicate it a bankrupt or insolvent, or seeking reorganization, arrangement, adjustment, winding up, liquidation, dissolution, composition or other relief with 

10

respect to it or its debts, or (B) seeking appointment of a receiver, trustee, custodian, conservator or other similar official for it or for all or any substantial part of its assets, or the Borrower shall make a general assignment for the benefit of its creditors; or (ii) there shall be commenced against the Borrower any case, proceeding or other action of a nature referred to in clause (i) above that (A) results in the entry of an order for relief or any such adjudication or appointment or (B) remains undismissed, undischarged or unbonded for a period of sixty (60) days; or (iii) there shall be commenced against the Borrower any case, proceeding or other action seeking issuance of a warrant of attachment, execution, distraint or similar process against all or any substantial part of its assets that results in the entry of an order for any such relief that shall not have been vacated, discharged, or stayed or bonded pending appeal within sixty (60) days from the entry thereof; or (iv) the Borrower shall take any action in furtherance of, or indicating its consent to, approval of, or acquiescence in, any of the acts set forth in clause (i), (ii), or (iii) above; or (v) the Borrower shall generally not, or shall be unable to, or shall admit in writing its inability to, pay its debts as they become due;
then, and in any such event, (A) if such event is an Event of Default specified in clause (i) or (ii) of paragraph (e) above, (i) the Loan Commitment shall terminate immediately and the Loans (with accrued interest thereon) and all other amounts owing under this Agreement and the other Loan Documents shall immediately become due and payable, and (B) if such event is any other Event of Default, the Lender may, by notice to the Borrower, terminate the Loan Commitment, whereupon the Loan Commitment shall terminate immediately, and declare the Loans (with accrued interest thereon) and all other amounts owing under this Agreement and the other Loan Documents to be due and payable forthwith, whereupon the same shall immediately become due and payable.
ARTICLE VII     
MISCELLANEOUS
Section 7.1    Notices.
(a)    Addresses for Notices. All notices, demands, requests, consents and other communications provided for in this Agreement shall be given in writing, and addressed to the party to be notified as follows:
	
		
	To the Borrower:
	CVR Partners, LP
2277 Plaza Drive
Suite 500
Sugar Land, TX  77479
Attn: Chief Financial Officer

	To the Lender:
	American Entertainment Properties Corp.
767 Fifth Avenue
Suite 4700
New York, NY  10153
Attn: 

Any party hereto may change its address, telephone number or facsimile number for notices and other communications hereunder by notice to the other parties hereto. All such notices and other communications shall, when transmitted by overnight delivery, or faxed, be effective when delivered 

11

for overnight (next-day) delivery, or transmitted in legible form by facsimile machine, respectively, or if mailed, upon the third Business Day after the date deposited into the mail or if delivered, upon delivery.
(b)    Effectiveness of Notices. All notices, demands, requests, consents and other communications described in Section 7.1(a) shall be effective (i) if delivered by hand, including any overnight courier service, upon personal delivery and (ii) if delivered by mail, when deposited in the mails.
Section 7.2    Waiver; Amendments. No amendment or waiver of any provision of this Agreement or any other Loan Document nor consent to any departure by the Borrower therefrom shall in any event be effective unless the same shall be in writing and (x) in the case of any such waiver or consent, signed by the Lender and (y) in the case of any other amendment, by the Lender and the Borrower, and then any such waiver or consent shall be effective only in the specific instance and for the specific purpose for which given.
Section 7.3    Expenses; Indemnification.
(a)    The Borrower shall be obligated to pay all out-of-pocket costs and expenses (including, without limitation, but not limited to the reasonable fees, charges and disbursements of outside counsel for the Lender) incurred by the Lender in connection with the enforcement or protection of its rights in connection with this Agreement, including its rights under this Section 7.3, including all such out-of-pocket expenses incurred during any workout, restructuring or negotiations in respect of the Loans.
(b)    The Borrower shall be obligated to indemnify each Lender Indemnitee against, and hold each Lender Indemnitee harmless from, any and all losses, claims, damages, liabilities and related expenses (including the fees, charges and disbursements of any counsel for any Lender Indemnitee) incurred by any Lender Indemnitee or asserted against any Lender Indemnitee by any third party or by the Borrower arising out of, in connection with, or as a result of (i) the execution or delivery of this Agreement, any other Loan Document or any agreement or instrument contemplated hereby or thereby, the performance by the parties hereto of their respective obligations hereunder or thereunder or the consummation of the transactions contemplated hereby or thereby, or (ii) any actual or prospective claim, litigation, investigation or proceeding relating to any of the foregoing, whether based on contract, tort or any other theory, whether brought by a third party or by the Borrower, and regardless of whether any Lender Indemnitee is a party thereto, provided that such indemnity shall not, as to any Lender Indemnitee, be available to the extent that such losses, claims, damages, liabilities or related expenses (x) are determined by a court of competent jurisdiction by final judgment to have resulted from the gross negligence or willful misconduct of such Lender Indemnitee or (y) result from a claim brought by the Borrower against any Lender Indemnitee for breach in bad faith of such Lender Indemnitee’s obligations hereunder or under any other Loan Document, if the Borrower has obtained a final judgment in their favor on such claim as determined by a court of competent jurisdiction.
(c)    The Borrower shall be obligated to pay, and hold the Lender harmless from and against, any and all present and future stamp, documentary, and other similar taxes with respect 

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to this Agreement and any other Loan Documents, any collateral described therein, or any payments due thereunder, and save the Lender harmless from and against any and all liabilities with respect to or resulting from any delay or omission to pay such taxes.
(d)    To the extent permitted by applicable law, each party shall not assert, and hereby waives, any claim against any Lender Indemnitee or the other party, on any theory of liability, for special, indirect, consequential or punitive damages (as opposed to actual or direct damages) arising out of, in connection with or as a result of, this Agreement or any agreement or instrument contemplated hereby, the transactions contemplated therein, the Loans or the use of proceeds thereof.
(e)    All amounts due under this Section 7.3 shall be payable promptly after written demand therefor.
Section 7.4    Successors and Assigns. The provisions of this Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns permitted hereby, except that the Borrower may not assign or otherwise transfer any of its rights or obligations hereunder, and the Lender may not assign or otherwise transfer any of its rights or obligations hereunder without the prior written consent of the Borrower. Any other attempted assignment or transfer by any party hereto shall be null and void. Nothing in this Agreement, expressed or implied, shall be construed to confer upon any Person (other than the parties hereto, their respective successors and assigns permitted hereby and, to the extent expressly contemplated hereby, each Lender Indemnitee) any legal or equitable right, remedy or claim under or by reason of this Agreement.
Section 7.5    Governing Law. This Agreement and the rights and obligations of the parties hereto shall be governed by, and construed and interpreted in accordance with, the law of the State of New York.
Section 7.6    Counterparts; Integration. This Agreement may be executed in any number of counterparts and by electronic means (including “pdf”) and by different parties in separate counterparts, each of which when so executed shall be deemed to be an original and all of which taken together shall constitute one and the same agreement.
Section 7.7    Survival. All covenants, agreements, representations and warranties made by the Borrower herein and in the certificates or other instruments delivered in connection with or pursuant to this Agreement shall be considered to have been relied upon by the Lender and shall survive the execution and delivery of this Agreement and the making of the Loans. The provisions of Section 7.3 shall survive and remain in full force and effect regardless of the consummation of the transactions contemplated hereby, the repayment of the Loans or the termination of this Agreement or any provision hereof.
Section 7.8    Severability. Any provision of this Agreement or any other Loan Document held to be illegal, invalid or unenforceable in any jurisdiction, shall, as to such jurisdiction, be ineffective to the extent of such illegality, invalidity or unenforceability without affecting the legality, validity or enforceability of the remaining provisions hereof or thereof; and the illegality, invalidity 

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or unenforceability of a particular provision in a particular jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.
[Signature Pages Follow]

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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed as of the day and year first above written.
CVR PARTNERS, LP
as Borrower
By:  CVR GP, LLC, its general partner

By:      /s/ John J. Lipinski    
Name: John J. Lipinski
Title:  Executive Chairman

AMERICAN ENTERTAINMENT PROPERTIES CORP.  
as Lender

By:      /s/ SungHwan Cho    
Name:  SungHwan Cho 
Title:  Chief Financial Officer

Exhibit A 
 
FORM OF NOTICE OF BORROWING
[DATE]
American Entertainment Properties Corp. 
767 Fifth Avenue
Suite 4700
New York, NY  10153
Attn: 

Dear Sirs:
Reference is made to that certain Loan Agreement, dated as of April 1, 2016 (the “Loan Agreement”), by and among American Entertainment Properties Corp., a Delaware corporation (the “Lender”) and CVR Partners, LP, a Delaware limited partnership (the “Borrower”).
The Borrower hereby requests the following Loan under the Loan Agreement, and in that connection the Borrower specifies the following information with respect to such Loan:
(a)    Principal amount of Loan: $[                    ]
(b)    Date of Loan: [                    ]
The Borrower hereby certifies as follows:
(c)    At the time of and immediately after giving effect to the making of the requested Loan, no Default or Event of Default exists.
(d)    At the time of and immediately after giving effect to the making of the requested Loan, all representations and warranties of the Borrower set forth in the Loan Documents are true and correct in all material respects on and as of such date.

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IN WITNESS WHEREOF, the undersigned has caused this Notice of Borrowing to be executed on the date first written above.
CVR PARTNERS, LP
as Borrower
By: CVR GP, LLC, its general partner

By:        
Name:
Title:

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