Document:

Filed by Bowne Pure Compliance

Exhibit 10.1

FIRST AMENDMENT TO NOTE PURCHASE AGREEMENT

THIS FIRST AMENDMENT TO NOTE PURCHASE AGREEMENT (this “Amendment”) is dated as of
September 44[_____], 2008, by and among Rio Vista Penny LLC, an Oklahoma limited liability company
(“Company”), TCW Asset Management Company, as administrative agent (“Administrative
Agent”), and the Holders party to the Original Agreement defined below (“Holders”).

W I T N E S S E T H:

WHEREAS, Company, Administrative Agent and Holders entered into that certain Note Purchase
Agreement dated as of November 19, 2007 (as amended, supplemented, or restated to the date hereof,
the “Original Agreement”), for the purpose and consideration therein expressed, whereby
Holders became obligated to make loans to Company as therein provided; and

WHEREAS, Company, Administrative Agent and Holders desire to further amend the Original
Agreement as set forth herein;

NOW, THEREFORE, in consideration of the premises and the mutual covenants and agreements
contained herein and in the Original Agreement, in consideration of the loans which may hereafter
be made by Holders to Company, and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto do hereby agree as follows:

ARTICLE I.

DEFINITIONS AND REFERENCES

Section 1.1. Terms Defined in the Original Agreement. Unless the context otherwise
requires or unless otherwise expressly defined herein, the terms defined in the Original Agreement
shall have the same meanings whenever used in this Amendment.

Section 1.2. Other Defined Terms. Unless the context otherwise requires, the
following terms when used in this Amendment shall have the meanings assigned to them in this
Section 1.2.

“Amendment” means this First Amendment to Note Purchase Agreement.

“Amendment Documents” means this Amendment and all other Note Documents
executed and delivered in connection herewith.

[First Amendment to

Note Purchase Agreement]

 

 

 

“Designated Defaults” means the following Defaults or Events of Default that
have occurred as of the date of this Amendment and are continuing under the Note Purchase
Agreement:

(a) Company’s entering into the Hedging Contracts described in Schedule 1 hereto
without the prior written consent of Administrative Agent;

(b) Company’s failure to deliver audited financial statements for the Fiscal Year
ending December 31, 2007, as required by Section 7.2(a) of the Note Purchase Agreement;

(c) Company’s failure to deliver financial statements for the Fiscal Quarters ending
March 31, 2008, and June 30, 2008, in each case as required by Section 7.2(b) of the Note
Purchase Agreement;

(d) Company’s failure to comply with Section 7.4(b) of the Note Purchase Agreement by
notifying each Holder Party in writing of the occurrence of such Defaults or Events of
Default under the Note Purchase Agreement;

(e) Company’s incurrence of capital expenditures not included in the APOD, as then in
effect, but which are included in the new APOD attached hereto as Schedule 6; and

(f) Company’s failure to deliver an Engineering Report, effective as of May 1, 2008, in
compliance with the provisions of Section 7.2(i) of the Note Purchase Agreement.

“Note Purchase Agreement” means the Original Agreement as amended hereby.

“Released Claims” means any and all actions, causes of action, judgments,
executions, suits, debts, claims, demands, controversies, liabilities, obligations, damages
and expenses of any and every character (whether known or unknown, liquidated or
unliquidated, absolute or contingent, acknowledged or disputed, direct or indirect), at law
or in equity, of whatsoever kind or nature (including claims of usury), whether heretofore
or hereafter accruing, for or because of any matter or things done, omitted or suffered to
be done by any of the Released Persons prior to and including the date hereof that in any
way directly or indirectly arise out of or in any way are connected to (a) any of the Note
Documents or any default or event of default thereunder, (b) any negotiation, discussion,
enforcement action, agreement or failure to agree related to any Note Document or any
default or event of default thereunder, or (c) any action, event, occurrence, or omission
otherwise related to the rights, duties, obligations and relationships among the various
Related Parties and Seller Parties.

“Released Persons” means Administrative Agent, Holders, and Royalty Owner,
together with their respective employees, agents, attorneys, officers, partners,
shareholders, accountants, consultants, and directors, and their respective successors and
assigns.

[First Amendment to

Note Purchase Agreement]

 

2

 

ARTICLE II.

AMENDMENTS & WAIVERS

Section 2.1. Interest Rate.

(a) The following definitions in Section 1.1 of the Original Agreement are hereby amended in
their entirety to read as follows:

“Fixed Rate” means the rate of twelve and one-half percent (12.50%) per annum;
provided that such per annum rate shall be reduced to ten and one-half percent (10.50%) per
annum on the Recalculation Date, if any.

“Hedging Contract” means (a) any agreement providing for options, swaps,
floors, caps, collars, forward sales or forward purchases (including any agreement for the
sale or purchase of hydrocarbons that provides a fixed price for more than two months of
production or deliveries) involving interest rates, commodities or commodity prices,
equities, currencies, bonds, or indexes based on any of the foregoing, (b) any option,
futures or forward contract traded on an exchange, and (c) any other derivative agreement or
other similar agreement or arrangement.

(b) The following definitions are hereby added to Section 1.1 of the Original Agreement in
appropriate alphabetical order to read as follows:

“Effective Rate Certificate” as defined in Section 2.6(a).

“Existing Litigation” means, collectively, the following litigation: (a)
Northport Production Company and Eugene A. Viele, plaintiffs, vs. Rio Vista Energy Partners,
L.P., Rio Vista GP, L.L.C., Rio Vista Penny, L.L.C., Jerome B. Richter a/k/a/ “Jerry”
Richter, and Douglas G. Manner, defendants, pending in the District Court of Dallas County,
Texas no. 08-09658, and (b) on November 20, 2007 Rio Vista Energy Partners L.P., Rio Vista
Penny LLC, Gary Moores, Bill Wood and G M Oil Properties, Inc. jointly filed an action for
declaratory relief against Energy Spectrum Advisors, Inc. in the District Court in McIntosh
County, Oklahoma, which was filed in response to Energy Spectrum’s assertion that Rio Vista
Energy Partners L.P., Rio Vista Penny LLC, as well as G M Oil Properties, Inc. owed Energy
Spectrum a commission allegedly due and owing based on Rio Vista Penny LLC’s November, 2007
purchase of certain assets from G M Oil Properties, Inc.

“Recalculation Date” means the first day of the Fiscal Quarter immediately
following the delivery of an Effective Rate Certificate that has been confirmed to the
satisfaction of Administrative Agent.

[First Amendment to

Note Purchase Agreement]

 

3

 

Section 2.2. Interest Rates. Subsection (a) of Section 2.6 of the Original Agreement
is hereby amended to add the following sentences thereto at the end of such subsection to read as
follows:

Company may request that the Fixed Rate be reduced as described in the definition thereof
immediately following the delivery of the Engineering Report prepared by the Independent
Engineer as of November 1, 2008 (the “Applicable Date”). In order to make any such
request, Company shall deliver to Administrative Agent a certificate (in form and detail
satisfactory to Administrative Agent) signed by the chief financial officer of Company (an
“Effective Rate Certificate”):

(i) certifying that no Default exists; and

(ii) certifying and demonstrating in reasonable detail that the Collateral Coverage
Ratio determined as of the Applicable Date is at least 1.5 to 1.0.”

Section 2.3. Mandatory Prepayments. Subsection (c) of Section 2.8 of the Original
Agreement is hereby amended to replace the phrase in the second sentence “May 19, 2008 through and
including November 19, 2009” with “January 1, 2009 through the Maturity Date”.

Section 2.4. Books, Financial Statements and Reports.

(a) Subsection (a) of Section 7.2 of the Original Agreement is hereby amended to replace the
phrase in the first sentence “within ninety (90) days” with “within one hundred and five (105)
days”.

(b) Subsection (b) of Section 7.2 of the Original Agreement is hereby amended to replace the
phrase in the first sentence “within forty-five (45) days after the end of each Fiscal Quarter”
with “within sixty (60) days after the end of each Fiscal Quarter (commencing with the Fiscal
Quarter ending December 31, 2008)”.

Section 2.5. Disclosure Schedule. Section 5.9 of the Disclosure Schedule is hereby
amended to include the Existing Litigation.

Section 2.6. Holders Schedule. Schedule 4 of the Original Agreement is hereby amended
in its entirety to read as set forth on Schedule 4 attached hereto.

Section 2.7. Approved Plan of Development. Schedule 6 of the Original Agreement is
hereby amended in its entirety to read as set forth on Schedule 6 attached hereto.

Section 2.8. Limited Waivers. Company has requested that Administrative Agent and
Holders waive the Designated Defaults, and Administrative Agent and Holders have agreed to do so on
the terms set forth herein. Accordingly, subject to the conditions and limitations set forth
herein, and the agreements of Company contained herein, Administrative Agent and Holders hereby
waive the Designated Defaults.

[First Amendment to

Note Purchase Agreement]

 

4

 

ARTICLE III.

CONDITIONS OF EFFECTIVENESS

Section 3.1. Effective Date. The effectiveness of this Amendment as of the date first
above is subject to the satisfaction, or waiver in accordance with Section 12.1 of the Note
Purchase Agreement, of the following conditions:

(a) Amendment Documents. Administrative Agent shall have received counterparts of
each Amendment Document originally executed and delivered by each applicable Restricted Person and
in such numbers as Administrative Agent or its counsel may reasonably request.

(b) Good Standing Certificates. Administrative Agent shall have received a good
standing certificate from the applicable Governmental Authority of each Restricted Person’s
jurisdiction of incorporation, organization or formation, each dated a recent date.

(c) Up-Front Payment. Administrative Agent shall have received the up-front payment
that is due and payable pursuant to Section 2.6(d) of the Note Purchase Agreement.

(d) Closing Certificate. Company shall have delivered to Administrative Agent an
originally executed Closing Certificate in the form attached hereto as Exhibit A, appropriately
completed.

(e) Completion of Proceedings. All corporate, partnership, limited liability company,
and other proceedings taken or to be taken in connection with the transactions contemplated hereby
and all documents incidental thereto not previously found acceptable by Administrative Agent and
its counsel shall be reasonably satisfactory in form and substance to Administrative Agent and such
counsel, and Administrative Agent and such counsel shall have received all such counterpart
originals or certified copies of such documents as Administrative Agent may reasonably request.

(f) Other Documentation. Administrative Agent shall have received all documents and
instruments which Administrative Agent has then reasonably requested, in addition to those
described in this Section 3.1. All such additional documents and instruments shall be reasonably
satisfactory to Administrative Agent in form, substance and date.

(g) No Default. No event shall have occurred and be continuing that would constitute
an Event of Default or a Default (other than the Designated Defaults, which are being waived
pursuant to the provisions of Section 2.8).

(h) Payment of Expenses. The Holders and their counsel shall have received all fees
and other amounts due and payable on or prior to the effective date hereof with respect to this
Amendment.

[First Amendment to

Note Purchase Agreement]

 

5

 

ARTICLE IV.

REPRESENTATIONS AND WARRANTIES

Section 4.1. Representations and Warranties of Company. In order to induce each
Holder to enter into this Amendment, Company represents and warrants to each Holder that, after
giving effect to the waivers of the Designated Defaults provided for herein:

(a) The representations and warranties contained in Article V of the Original Agreement are
true and correct at and as of the time of the effectiveness hereof, except to the extent such
representations and warranties specifically refer to an earlier date, in which case they are true
and correct as of such earlier date.

(b) Company is duly authorized to execute and deliver this Amendment and the other Amendment
Documents and is and will continue to be duly authorized to borrow monies and to perform its
obligations under the Note Purchase Agreement. Company has duly taken all corporate action
necessary to authorize the execution and delivery of this Amendment and the other Amendment
Documents and to authorize the performance of the obligations of Company hereunder and thereunder.

(c) The execution and delivery by Company of this Amendment and the other Amendment Documents,
the performance by Company of its obligations hereunder and thereunder and the consummation of the
transactions contemplated hereby and thereby do not and will not (i) conflict with any provision of
(1) any Law, (2) the organizational documents of any Restricted Person, or (3) any material
agreement, judgment, license, order or permit applicable to or binding upon any Restricted Person,
(ii) result in the acceleration of any Indebtedness owed by any Restricted Person, or (iii) result
in or require the creation of any Lien upon any assets or properties of any Restricted Person
except as expressly contemplated or permitted in the Note Documents. Except as expressly
contemplated in the Note Documents, no permit, consent, approval, authorization or order of, and no
notice to or filing with, any Governmental Authority or third party is required in connection with
the execution, delivery or performance by any Restricted Person of any Amendment Document or to
consummate any transactions contemplated thereby. Clauses (a) and (b) in the definition of
Material Contracts describe all of the Material Contracts (other than oil and gas leases) in effect
on the date hereof, and all such Material Contracts (other than oil and gas leases) are in full
force and effect and no defaults currently exist thereunder that would have a Material Adverse
Change on the Company.

(d) This Amendment, the Note Purchase Agreement, and the other Amendment Documents when duly
executed and delivered will be, legal, valid and binding obligations of Restricted Persons and each
of their respective Affiliates which is a party hereto or thereto, enforceable in accordance with
their terms except as such enforcement may be limited by bankruptcy, insolvency or similar Laws of
general application relating to the enforcement of creditors’ rights.

(e) The Initial Pro Forma Financial Statements fairly present the Consolidated financial
position at the date thereof and the Consolidated statement of operations and the changes in
Consolidated financial position for the period covered by such financial statements
for Company. Copies of such financial statements have heretofore been delivered to each
Holder. Since the Closing Date, no Material Adverse Change has occurred in the financial condition
or businesses or in the Consolidated financial condition or businesses of Company. However, since
the Closing Date, (i) Company has become involved in the Existing Litigation, (ii) Company makes no
representation or warranty as to whether the Existing Litigation constitutes a Material Adverse
Change, and (iii) the preceding sentence is so qualified by the existence of such Existing
Litigation.

[First Amendment to

Note Purchase Agreement]

 

6

 

(f) Restricted Persons have no Deposit Accounts, except for the following Deposit Accounts
established at Bank of Eufaula, 102 N. Main, P.O. Box 607, Eufaula, OK 74432:

	 	 	 	 	 
	Rio Vista Penny, LLC — Operating Account
	 	 	#6524272	 
	Rio Vista Penny, LLC — Savings Account
	 	 	#494512	 
	Rio Vista Penny, LLC — CD #1
	 	 	#27770	 
	Rio Vista Penny, LLC — CD #2
	 	 	#27888	 
	Rio Vista Penny, LLC — Custody Account
	 	 	#6524250	 
	Rio Vista Operating, LLC – Checking
	 	 	#6524239	 
	Rio Vista Operating, LLC — Payroll Account
	 	 	#6524195	 

(g) Restricted Persons have sent a notice, in form satisfactory to Administrative Agent, to
all existing purchasers of Hydrocarbons produced from the Eligible Mortgaged Properties and/or
other Persons making payments to Restricted Persons in respect of their oil and gas business,
directing them to forward all amounts payable to Restricted Persons directly to the Collateral
Account at the mailing address of the depositary bank for deposit into the Collateral Account (or
alternatively, by wire transfer directly into the Collateral Account).

ARTICLE V.

MISCELLANEOUS

Section 5.1. Ratification; Acknowledgments; No Waiver.

(a) Ratification. The Original Agreement as hereby amended is hereby ratified and
confirmed in all respects. The Note Documents, as they may be amended or affected by the various
Amendment Documents, are hereby ratified and confirmed in all respects. Any reference to the Note
Purchase Agreement in any Note Document shall be deemed to be a reference to the Original Agreement
as hereby amended. The execution, delivery and effectiveness of this Amendment and the other
Amendment Documents shall not, except as expressly provided herein or therein, operate as a waiver
of any right, power or remedy of Holders under the Note Purchase Agreement, the Notes, or any other
Note Document nor constitute a waiver of any provision of the Note Purchase Agreement, the Notes or
any other Note Document.

(b) Acknowledgment of Designated Defaults. Company hereby acknowledges and agrees
that the Designated Defaults have occurred and are continuing and that the waiver thereof by
Required Holders, together with the other agreements in this Amendment, constitutes valuable and
sufficient consideration for Company’s execution and performance of this
Amendment. Company further represents and warrants that, as of the date hereof and after
giving effect to the waivers of the Designated Defaults set forth in this Amendment, no Defaults or
Events of Default exist under the Note Documents.

[First Amendment to

Note Purchase Agreement]

 

7

 

(c) No Waiver. Administrative Agent and Holders require and will require strict
performance by Company and each other party to any Note Document of all of their respective
obligations, agreements and covenants contained in the Note Purchase Agreement and the other Note
Documents, and no inaction or action regarding any such breach is intended to be or shall be a
waiver thereof. In no event and under no circumstance shall any past or future discussions with
Administrative Agent or Holders and/or Administrative Agent’s or any Holder’s forbearance from
exercising any of its rights or remedies under the Note Documents: (i) cause a modification of the
Note Documents; (ii) establish a custom with respect to any of the Note Documents; (iii) operate as
a waiver of any existing or future default or event of default under the Note Documents; (iv)
entitle any Restricted Person to any other or further notice or demand whatsoever; (v) in any way
modify, change, impair, affect, diminish or release any obligations or liability of any Restricted
Person under or pursuant to the Note Documents or any other liability any such Person may have to
any Holder; or (vi) waive, limit or condition Administrative Agent’s or any Holder’s rights and
remedies under the Note Documents, all of which rights and remedies are expressly reserved.

Section 5.2. Release of Claims. To induce Holder Parties to enter into this
Agreement, each Restricted Person hereby (a) represents and warrants that as of the date of this
Agreement there are no claims or offsets against or defenses or counterclaims to its obligations
under the Note Documents, and waives any and all such claims, offsets, defenses, or counterclaims,
whether known or unknown, arising prior to the date of this Agreement, (b) releases and forever
discharges the Released Persons from any and all Released Claims, and (c) covenants not to assert
(and not to assist or enable any other Person to assert) any Released Claim against any Released
Person. The Restricted Persons acknowledge and agree that such release is a general release of any
and all Released Claims that constitutes a full and complete satisfaction for all or any alleged
injuries or damages arising out of or in connection with the Released Claims, all of which are
herein compromised and settled.

Section 5.3. Reviewed by Attorneys. Each Restricted Person represents and warrants to
Administrative Agent and each Holder that it (a) understands fully the terms of this Amendment and
the consequences of the execution and delivery of this Amendment, (b) has been afforded an
opportunity to have this Amendment reviewed by, and to discuss this Amendment and document executed
in connection herewith with, such attorneys and other persons as such Person may wish, and (c) has
entered into this Amendment and executed and delivered all documents in connection herewith of its
own free will and accord and without threat, duress or other coercion of any kind by any Person.
The parties hereto acknowledge and agree that neither this Amendment nor the other documents
executed pursuant hereto shall be construed more favorably in favor of one than the other based
upon which party drafted the same, it being acknowledged that all parties hereto contributed
substantially to the negotiation and preparation of this Amendment and the other documents executed
pursuant hereto or in connection herewith.

[First Amendment to

Note Purchase Agreement]

 

8

 

Section 5.4. Survival of Agreements. All representations, warranties, covenants and
agreements of Company herein shall survive the execution and delivery of this Amendment and the
performance hereof, including without limitation the making or granting of the Loans, and shall
further survive until all of the Obligations are paid in full. All statements and agreements
contained in any certificate or instrument delivered by any Restricted Person hereunder or under
the Note Purchase Agreement to any Holder shall be deemed to constitute representations and
warranties by, and/or agreements and covenants of, Company under this Amendment and under the Note
Purchase Agreement.

Section 5.5. Note Documents. This Amendment is and the other Amendment Documents are
each a Note Document, and all provisions in the Note Purchase Agreement pertaining to Note
Documents apply hereto and thereto.

Section 5.6. Governing Law. Except to the extent that the law of another
jurisdiction is expressly elected in a Note Document, this Amendment and the other Amendment
Documents shall be governed by and construed in accordance with the internal laws of the State of
New York, without regard to principles of conflicts of laws. 

Section 5.7. Counterparts; Fax. This Amendment may be separately executed in
counterparts and by the different parties hereto in separate counterparts, each of which when so
executed shall be deemed to constitute one and the same Amendment. This Amendment and the other
Amendment Documents may be validly executed by facsimile or other electronic transmission.

This written Agreement and the other Note Documents represent the final agreement between
the parties and may not be contradicted by evidence of prior, contemporaneous, or subsequent oral
agreements of the parties.

There are no unwritten oral agreements between the parties.

[The remainder of this page has been intentionally left blank.]

[First Amendment to

Note Purchase Agreement]

 

9

 

IN WITNESS WHEREOF, this Amendment is executed as of the date first above written.

	 	 	 	 	 
	 	COMPANY:

RIO VISTA PENNY LLC

 	 
	 	By:  	 	 
	 	 	Ian Bothwell 	 
	 	 	Manager 	 
	 

[Signature Page to First Amendment to

Note Purchase Agreement]

 

 

 

	 	 	 	 	 	 	 	 	 	 	 
	 	 	ADMINISTRATIVE AGENT:	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	TCW ASSET MANAGEMENT COMPANY,

Administrative Agent	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 	 	 	 	 
	 

	 	 	 	Title:	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 	 	 	 	 
	 

	 	 	 	Title:	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	HOLDERS:	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	TCW ENERGY FUND X – NL, L.P.,

a California limited partnership	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	By:	 	TCW (ENERGY X) LLC, its General Partner:	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	By:	 	TCW Asset Management Company,

its Managing Member	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	By:	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	Name:	 	 
	 

	 	 	 	 	 	 	 	Title:	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	By:	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	Name:	 	 
	 

	 	 	 	 	 	 	 	Title:	 	 

[Signature Page to First Amendment to

Note Purchase Agreement]

 

 

 

	 	 	 	 	 	 	 	 	 	 	 
	 	 	TCW ENERGY FUND XB – NL, L.P.,

a California limited partnership	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	By:	 	TCW (ENERGY X) LLC, its General Partner:	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	By:	 	TCW Asset Management Company,

its Managing Member	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	By:	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	Name:	 	 
	 

	 	 	 	 	 	 	 	Title:	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	By:	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	Name:	 	 
	 

	 	 	 	 	 	 	 	Title:	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	TCW ENERGY FUND XC – NL, L.P.,

a California limited partnership	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	By:	 	TCW (ENERGY X) LLC, its General Partner:	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	By:	 	TCW Asset Management Company,

its Managing Member	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	By:	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	Name:	 	 
	 

	 	 	 	 	 	 	 	Title:	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	By:	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	Name:	 	 
	 

	 	 	 	 	 	 	 	Title:	 	 

[Signature Page to First Amendment to

Note Purchase Agreement]

 

 

 

	 	 	 	 	 	 	 	 	 	 	 
	 	 	TCW ENERGY FUND XD – NL, L.P.,

a California limited partnership	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	By:	 	TCW (ENERGY X) LLC, its General Partner:	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	By:	 	TCW Asset Management Company,

its Managing Member	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	By:	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	Name:	 	 
	 

	 	 	 	 	 	 	 	Title:	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	By:	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	Name:	 	 
	 

	 	 	 	 	 	 	 	Title:	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	TCW ASSET MANAGEMENT COMPANY, a California

corporation, as Investment Manager under the Amended 

and Restated Investment Management and Custody 

Agreement dated as of December 3, 2003 among Ensign

Peak Advisors, Inc., TCW Asset Management Company and

Trust Company of the West, a California trust

company, as Sub-Custodian	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 	 	 	 	 
	 

	 	 	 	Title:	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 	 	 	 	 
	 

	 	 	 	Title:	 	 	 	 	 	 

[Signature Page to First Amendment to

Note Purchase Agreement]

 

 

 

	 	 	 	 	 
	 	TCW ASSET MANAGEMENT COMPANY, a California

corporation, as Investment Manager under the Amended

and Restated Investment Management and Custody

Agreement dated as of December 11, 2003 among Harry

L. Bradley, Jr. Partition Trust, Harry L. Bradley,

Jr. Trust, Jane Bradley Uihlien Pettit Partition

Trust, Jane Bradley Uihlien Trust, TCW Asset

Management Company and Trust Company of the West, a

California trust company, as Sub-Custodian

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 	 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	TCW ASSET MANAGEMENT COMPANY, a California

corporation, as Investment Manager under the Amended

and Restated Investment Management and Custody

Agreement dated as of March 18, 2004 among ING Life

Insurance and Annuity Company, TCW Asset Management

Company and Trust Company of the West, a California

trust company, as Sub-Custodian

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 	 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

[Signature Page to First Amendment to

Note Purchase Agreement]

 

 

 

First Amendment

CONSENT AND REAFFIRMATION

Each of the undersigned hereby (i) consents to the provisions of this Amendment and the
transactions contemplated herein, (ii) ratifies and confirms the Management Services Agreement, the
Guaranty dated November 19, 2007, and the other Note Documents, in each case to which it is a
party, (iii) agrees that all of its respective obligations and covenants thereunder shall remain
unimpaired by the execution and delivery of this Amendment and the other Amendment Documents, and
(iv) agrees that the Management Services Agreement, such Guaranty, and such other Note Documents
shall remain in full force and effect.

	 	 	 	 	 
	 	RIO VISTA ECO LLC

 	 
	 	By:  	 	 
	 	 	Ian Bothwell 	 
	 	 	Manager 	 
	 
	 	RIO VISTA GO LLC

 	 
	 	By:  	 	 
	 	 	Ian Bothwell 	 
	 	 	Manager 	 
	 
	 	GO, LLC

 	 
	 	By:  	 	 
	 	 	Ian Bothwell 	 
	 	 	Manager 	 
	 
	 	MV PIPELINE COMPANY

 	 
	 	By:  	 	 
	 	 	Ian Bothwell 	 
	 	 	President 	 
	 

[Signature Page to First Amendment to

Note Purchase Agreement]

 

 

 

	 	 	 	 	 
	 	RIO VISTA OPERATING LLC

 	 
	 	By:  	 	 
	 	 	Ian Bothwell 	 
	 	 	Manager 	 
	 
	 	RIO VISTA ENERGY PARTNERS L.P.

 	 
	 	By:  	Rio Vista GP LLC, its general partner
 	 
	 	 	 
	 	By:  	
 	 
	 	 	Ian Bothwell 	 
	 	 	Manager 	 
	 

[Signature Page to First Amendment to

Note Purchase Agreement]

 

 

 

SCHEDULE 1

Rio Vista

Fixed price Sales Contracts

Counterparty: Clearwater Enterprises, L.L.C.

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	Contract	 	 	Contract	 	 	 	 	 
	Confirmation	 	 	 	 	 	 	 	 	 	Quantity	 	 	Price	 	 	 	 	 
	Number	 	Begin	 	 	End	 	 	(mmbtu/mo)	 	 	($/mmbtu)	 	 	Pipeline	 	Delivery Point/Index Point
	28727
	 	 	4/1/2008	 	 	 	10/31/2008	 	 	 	30,000	 	 	 	6.35	 	 	Oneok Gas Transmission	 	MV/OGT (R900)
	31601
	 	 	11/1/2008	 	 	 	3/31/2009	 	 	 	30,000	 	 	 	8.61	 	 	Oneok Gas Transmission	 	MV/OGT (R900)
	31595 & 31956
	 	 	4/1/2008	 	 	 	10/31/2008	 	 	 	15,000	 	 	 	7.97	 	 	NA	 	Swap: Inside Ferc Centerpoint East
	31597 & 31958
	 	 	11/1/2008	 	 	 	3/31/2009	 	 	 	15,000	 	 	 	8.61	 	 	NA	 	Swap: Inside Ferc Centerpoint East

[Schedule I —  First Amendment to Note Purchase Agreement]

 

 

 

SCHEDULE 4

HOLDERS SCHEDULE

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Allocation	 	 	 	 	 	 	Maximum	 
	Note Holder	 	%	 	 	Commitment	 	 	Credit Amount	 
	TCW Energy Fund X-NL,
L.P., a California
limited partnership
	 	 	23.03872	%	 	$	5,702,083.20	 	 	$	6,911,616	 
	TCW Energy Fund XB-NL,
L.P., a California
limited partnership
	 	 	28.62534	%	 	$	7,084,771.65	 	 	$	8,587,602	 
	TCW Energy Fund XC-NL,
L.P., a California
limited partnership
	 	 	9.48725	%	 	$	2,348,094.38	 	 	$	2,846,175	 
	TCW Energy Fund XD-NL,
L.P., a California
limited partnership
	 	 	21.12823	%	 	$	5,229,236.93	 	 	$	6,338,469	 
	Trust Company of the
West as Sub-Custodian
under the Amended and
Restated Investment
Management and Custody
Agreement dated as of
December 3, 2003 among
Ensign Peak Advisors,
Inc., TCW Asset
Management Company and
Trust Company of the
West
	 	 	6.81556	%	 	$	1,686,851.10	 	 	$	2,044,668	 
	ING Life Insurance and
Annuity Company
	 	 	6.81556	%	 	$	1,686,851.10	 	 	$	2,044,668	 
	Trust Company of the
West as Sub-Custodian
under the Amended and
Restated Investment
Management and Custody
Agreement dated as of
December 11, 2003 among
Harry L. Bradley, Jr.
Partition Trust, Harry
L. Bradley, Jr. Trust,
Jane Bradley Uihlien
Pettit Partition Trust,
Jane Bradley Uihlien
Trust, TCW Asset
Management Company and
Trust Company of the
West
	 	 	4.08934	%	 	$	1,012,111.64	 	 	$	1,226,802	 
	 
	 	 	 	 	 	 	 	 	 
	Total
	 	 	100.00000	%	 	$	24,750,000.00	 	 	$	30,000,000	 
	 
	 	 	 	 	 	 	 	 	 

[Schedule 4 — First Amendment to

Note Purchase Agreement]

 

 

 

SCHEDULE 6

APPROVED PLAN OF DEVELOPMENT

[Schedule 6 — First Amendment to

Note Purchase Agreement]

 

 

 

EXHIBIT A

TO

FIRST AMENDMENT TO NOTE PURCHASE AGREEMENT

CLOSING CERTIFICATE

CLOSING CERTIFICATE

September  _____, 2008

THE UNDERSIGNED HEREBY CERTIFIES AS FOLLOWS:

1. I am the sole Manager of Rio Vista Penny LLC, an Oklahoma limited liability company
(“Company”).

2. I have reviewed the terms of the Note Purchase Agreement dated as of November 19, 2007
among Company, TCW Asset Management Company, as Administrative Agent, and TCW Energy Fund X
Investors, as Holders party thereto (as amended, the “Note Purchase Agreement”; the terms defined
therein and not otherwise defined herein being used herein as therein defined), which is being
amended by the First Amendment to Note Purchase Agreement dated of even date herewith (the “First
Amendment” and the “Amendment Date”) by and among Company, Administrative Agent, and Holders. I
have also reviewed the Manager’s Certificate dated November 19, 2007 executed by the undersigned
and delivered pursuant to the Note Purchase Agreement (the “Original Certificate”).

3. In my opinion I have made, or have caused to be made under my supervision, such examination
or investigation as is necessary to enable me to express an informed opinion as to the matters
referred to herein.

4. Based upon my review and examination described in paragraph 3 above, I certify, on behalf
of Company, that as of the date hereof:

	 	a.	 	all representations and warranties made by any Person in any Note
Document are true in all respects on and as of the date hereof, except to the
extent that such representation or warranty was made as of a specific date or
updated, modified or supplemented as of a subsequent date with the consent of
Required Holders and Administrative Agent;
	 
	 	b.	 	each Restricted Person and Parent have performed and complied with all
agreements and conditions required in the Note Documents to be performed or
complied with prior to the date hereof;
	 
	 	c.	 	as of the Amendment Date, no event has occurred and is continuing or
would result from the consummation of the borrowing contemplated on the date hereof
that would constitute an Event of Default or a Default (other than the Designated
Defaults defined and described in the First Amendment, which are being waived
pursuant to the provisions of Section 2.8 of the First Amendment);

[Closing Certificate]

 

 

 

	 	d.	 	attached as Exhibit A to the Original Certificate is a true, correct
and complete copy of the Articles of Organization of Company as in effect on the
date hereof, certified by the Secretary of State of the State of Oklahoma;
	 
	 	e.	 	attached as Exhibit B to the Original Certificate is a true, correct
and complete copy of the Operating Agreement of Company as in effect on the date
hereof;
	 
	 	f.	 	attached as Exhibit D to the Original Certificate is a true, correct
and complete copy of certain resolutions duly adopted by unanimous written consent
of the sole Manager of Company in accordance with Company’s Articles of
Organization and Operating Agreement and none of such resolutions has been
rescinded, revoked, modified, or amended in any respect, and all of such
resolutions are in full force and effect on the date hereof;
	 
	 	g.	 	Paragraph 6 of the Original Certificate contains a list of certain duly
elected, qualified and acting officers of Company. Each such person holds on the
date hereof the office set forth opposite such officer’s name in such Paragraph 6,
and the signature appearing in such Paragraph 6 opposite such officer’s name is
such officer’s genuine signature. Each such officer is duly authorized to execute
and deliver Transaction Documents on behalf of Company;
	 
	 	h.	 	as of the Amendment Date no Restricted Person has any Deposit Account
that is not subject to a control agreement in form and substance satisfactory to
Administrative Agent as required by Section 7.17 of the Note Purchase Agreement.

[Remainder of page intentionally left blank. Signature page follows.]

[Closing Certificate]

 

 

 

IN WITNESS WHEREOF, this instrument is executed by the undersigned as of the date first
written above.

	 	 	 	 	 
	 	By:  	
 	 
	 	 	Ian Bothwell 	 
	 	 	Manager 	 
	 

[Closing Certificate]Filed by Bowne Pure Compliance

Exhibit 10.2

AMENDED AND RESTATED MANAGEMENT SERVICES AGREEMENT

This Amended and Restated Management Services Agreement (this “Agreement”), dated and
effective as of September 44[_____], 2008, is made by and among Rio Vista Operating LLC, an Oklahoma
limited liability company (“Manager”), Rio Vista Energy Partners L.P., a Delaware limited
partnership (“Parent”), and Rio Vista Penny LLC, an Oklahoma limited liability company (“Company”),
for their mutual benefit and for the benefit of the Persons named in Section 12 below.

RECITALS:

WHEREAS, Company wishes for Manager to provide certain management and general and
administrative support services to Company and Manager wishes to provide such management and
services to Company as provided herein; and

WHEREAS, Holders (defined below) are providing financing to Company in reliance on this
Agreement and each party hereto has executed and delivered this Agreement in order to induce
Holders to provide such financing and with the understanding that Holders are providing such
financing in reliance upon this Agreement; and

WHEREAS, Parent indirectly owns all of the outstanding equity interests of Company and
Manager; and

WHEREAS, each of Manager and Parent derive substantial and material benefit from the credit
provided by Holders to Company and has determined that its execution, delivery and performance of
this Agreement may reasonably be expected to benefit it, directly or indirectly, and are in its
best interest.

NOW, THEREFORE, in consideration of the mutual covenants and agreements contained herein, of
the premises in the Recitals set forth above, and for other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties hereto do hereby agree as
follows:

Section 1. Definitions. Capitalized terms used but not defined herein shall have
the meanings given them in the Note Purchase Agreement (defined below). In addition to terms
defined above, the following terms shall have the following meaning when used herein:

“Affiliate” means, as to any Person, each other Person that directly or indirectly (through
one or more intermediaries or otherwise) controls, is controlled by, or is under common control
with, such Person. A Person shall be deemed to be “controlled by” any other Person if such other
Person possesses, directly or indirectly, power (a) to vote 10% or more of the securities or other
equity interests (on a fully diluted basis) having ordinary voting power for the election of
directors, the managing general partner or partners or the managing member or members or (b)
to direct or cause the direction of the management and policies of such Person whether by
contract or otherwise.

 

 

 

“Administrative Agent” means the Person who, at the time in question, is the “Administrative
Agent” under the Note Purchase Agreement.

“AMI” means the “Project Area” as defined in the Credit Agreement, which consists of Haskell
County, Oklahoma, McIntosh County, Oklahoma, and Pittsburgh County, Oklahoma.

“Express Beneficiaries” has the meaning given to such term in Section 12.

“Holder Parties” means Administrative Agent and Holders.

“Holders” means all Persons who at any time are “Holders” under the Note Purchase Agreement.

“Initial Parent Financial Statements” means (a) the audited annual financial statements of
Parent dated as of December 31, 2006, and (b) the unaudited quarterly financial statements of
Parent dated as of June 30, 2007.

“JOA” means any joint operating agreement or contract operating agreement to which any of the
Properties is subject.

“Lease Level Payables” means, with respect to any ANCF Quarter and without duplication, the
following costs and expenses of or attributable to Company for the ownership and operation of the
Properties during such ANCF Quarter: (a) Direct Taxes paid on the Properties or the production of
Hydrocarbons, (b) ANCF LOE, (c) ANCF Transportation Costs, (d) ANCF Overhead Costs, if any, other
than Permitted G&A Expenses, and (e) ANCF Capital Expenditures, provided that Lease Level Payables
shall in no event include any costs or expenses to provide the Services.

“Note Purchase Agreement” means that certain Note Purchase Agreement dated November 19, 2007,
by and among Company Administrative Agent and Holders, as from time to time amended, supplemented
or restated.

“Properties” means, collectively, those undivided interests in oil and gas properties and
interests in other real and personal property that are, at the time in question, owned by Company
or any of its Subsidiaries.

“Related Contracts” means any contracts or agreements between Company and any Related Party
relating to the Properties, whether relating to the operation or development of any of the
Properties, or the drilling and completion of wells on the Properties, or the gathering, treating,
storage, processing, compressing, transporting, and handling of Hydrocarbons produced from any of
the Properties, or otherwise.

“Related Parties” means Manager, Parent, and any other Subsidiary of Parent other than
Company.

[Amended and Restated Management Services Agreement]

 

2

 

“Service Fee” means, with respect to any ANCF Quarter, an amount equal to $50,000; provided
that such amount shall be reduced to $0.00 (or such higher amount as may be approved by
Administrative Agent in its sole and absolute discretion) for any ANCF Quarter during which a
Default or Event of Default exists or existed or during which a Coverage Deficiency existed (other
than the Designated Defaults defined and described in the First Amendment to Note Purchase
Agreement of even date herewith among Company, Administrative Agent, and the Holders).

“Services” has the meaning given to such term in Section 2.

“Subordinated Liabilities” has the meaning given to such term in Section 8.

As used in this Agreement: the word “or” is not exclusive; the word “including” (in its various
forms) means “including without limitation”; pronouns in masculine, feminine and neuter genders
shall be construed to include any other gender; and words in the singular form shall be construed
to include the plural and vice versa, unless the context otherwise requires. References herein to
any Section, Appendix, Schedule or Exhibit shall be to a Section, an Appendix, a Schedule or an
Exhibit hereof unless otherwise specifically provided. This Agreement is the result of
negotiations between, and has been reviewed by, Manager, Company, Administrative Agent and their
respective counsel. Accordingly, this Agreement shall be deemed to be the joint product of the
parties hereto, and no ambiguity shall be construed in favor of or against any party hereto or
beneficiary hereof.

Section 2. Management Services. During the term hereof, Manager shall, at its own
cost and expense: (i) advise and consult with Company regarding all aspects of Company’s
development, operations and expansion, (ii) provide (or cause to be provided) management expertise
and consulting services for the development and implementation of operational and financial plans
of Company and for strategic planning and decisions of Company, and (iii) provide (or cause to be
provided) administrative support services to Company as necessary or useful for the operations of
the business of Company and Company’s Subsidiaries (collectively, the “Services” which, for the
avoidance of doubt, shall not include capital expenditures that are included in the APOD),
including the following specific Services:

(a) Overhead Services. Manager will provide all general and administrative
overhead services and other general and administrative services.

(b) Reports and Information. Manager will provide all assistance (from both
Manager’s own staff and from outside accountants and other service providers) required in
order to furnish to Holders the reports and other information required to be furnished under
the Note Documents, including the engagement of third party engineers, auditors, and
accountants and the timely delivery of all financial statements and engineering reports
(both in-house and third party) required under the Note Purchase Agreement.

(c) Lease and Land Administration. Manager will provide all necessary or
useful lease and land administration services, including administering all leases and
division orders, and maintaining all land, lease and other related records, providing
associated services, and paying rentals, shut-in payments and other lease payments.

[Amended and Restated Management Services Agreement]

 

3

 

(d) Marketing. Manager will provide all marketing, gas control, and contract
administration services necessary or useful to sell the hydrocarbons produced from the
Properties.

(e) Accounting. Manager will perform all revenue and joint interest accounting
functions attributable to the Properties, including but not limited to:

	 	(i)	 	royalty and other lease payments,
	 
	 	(ii)	 	payment of accounts payable,
	 
	 	(iii)	 	collection of accounts receivable,
	 
	 	(iv)	 	computation and payment of severance and other
taxes based on production,
	 
	 	(v)	 	gas balancing, and
	 
	 	(vi)	 	general ledger and financial reporting activities.

(f) Operations. To the extent any Properties are not subject to a JOA, or are
subject to a JOA under which Company or any Subsidiary of Company is named as operator,
Manager will provide all operation functions and services with respect to the Properties
that would be provided by a reasonable and prudent operator.

(g) Information Systems. Manager will provide computer use and/or facilities
necessary to manage and operate the Properties and maintain the records of Company.

(h) Sales of Properties by Company. Manager will retain all consultants and
advisors necessary or advisable to assist with any sale of the Properties and will cooperate
with Company to facilitate any sale of the Properties.

(i) Tax Returns. Parent and/or Manager will arrange for the preparation of all
federal, state and local tax returns required of Company or any Subsidiary of Company.

(j) Budgets & Forecasts. Parent and Manager will establish operating and
capital budgets and forecasts for Company and its Subsidiaries and monitor their receipts,
income and expenditures.

(k) Compliance. Manager will take all actions, and file all reports and
notices, to cause the operations of Company and its Subsidiaries to be in compliance with
all applicable laws, rules and regulations. Manager will monitor the compliance by Company
and its Subsidiaries with covenants required by Company’s lenders.

(l) Insurance. Manager will arrange for insurance policies as required under
the Note Purchase Agreement and will pay for all premiums associated therewith.

[Amended and Restated Management Services Agreement]

 

4

 

(m) Accounting. Manager will maintain a general ledger with respect to the
business and attendant accounting matters of Company and its Subsidiaries.

(n) Bank Accounts. Manager will open, maintain, and reconcile one or more bank
accounts on behalf of Company out of which expenses of Company and its Subsidiaries may be
paid by Manager, including all amounts due from Company to Manager hereunder.

(o) Outside Professionals. Manager will retain, manage and supervise the
outside accountants and attorneys of Company and coordinate the annual audit of Company’s
books and records.

Section 3. Performance and Authority.

(a) Standard of Care. Manager shall provide the Services in a timely and
current manner, consistent with management and administrative practices that it would
provide for itself in the performance of services similar to the Services.

(b) Independent Contractor Relationship. With respect to its performance of
the Services, Manager is an independent contractor, with the authority to control, oversee
and direct the performance of the details of the Services.

(c) No Joint Venture or Partnership. This Agreement is not intended to and
shall not be construed as creating a joint venture, partnership, agency or other association
within the meaning of the common law or under the laws of any state.

(d) Performance of Services by Company. The parties to this Agreement
understand and agree that Company may at its election provide certain Services for its own
account, and to the extent Company adequately and timely does so Manager need not perform
such Services. Manager will, however, remain obligated to perform all Services as provided
herein to the extent Company fails to adequately and timely perform such Services.

Section 4. Compensation. For the Services provided hereunder by Manager to Company,
Company shall pay to Manager the Service Fee, payable on each Quarterly Payment Date beginning with
the Quarterly Payment Date in March 2008, and on each such date thereafter. In addition, Company
agrees to reimburse Manager for any Lease Level Payables to the extent hereafter paid with funds of
Manager rather than funds of Company. The foregoing Service Fee and reimbursements shall be the
only amounts payable by Company to Manager.

Section 5. Representations and Warranties. Each of Parent and Manager represents
and warrants to Company and to the Express Beneficiaries that:

(a) No Default. Neither Parent nor Manager is in default hereunder.

[Amended and Restated Management Services Agreement]

 

5

 

(b) Organization and Good Standing. Each Related Party is duly organized,
validly existing and in good standing under the Laws of its jurisdiction of organization,
having all powers required to carry on its business and enter into and carry out the
transactions contemplated hereby, and is duly qualified, in good standing, and
authorized to do business in all other jurisdictions within the United States wherein the
character of the properties owned or held by it or the nature of the business transacted by
it makes such qualification necessary.

(c) Authorization. Each of Parent and Manager has duly taken all action
necessary to authorize the execution and delivery by it of this Agreement and to authorize
the consummation of the transactions contemplated hereby and the performance of its
obligations hereunder. Each Related Party has duly taken all action necessary to authorize
the execution and delivery by it of the Related Contracts to which it is a party and to
authorize the consummation of the transactions contemplated thereby and the performance of
its obligations thereunder.

(d) No Conflicts or Consents. The execution and delivery by Parent and Manager
of this Agreement and by each Related Party of the Related Contracts to which it is a party,
the performance by each of its obligations hereunder and thereunder, and the consummation of
the transactions contemplated hereby and thereby, do not and will not (i) conflict with any
provision of (1) any Law, (2) the organizational documents of any Related Party, or (3) any
material agreement, judgment, license, order or permit applicable to or binding upon any
Related Party, (ii) result in the acceleration of any Indebtedness owed by any Related
Party, or (iii) result in or require the creation of any Lien upon any assets or properties
of any Related Party. No permit, consent, approval, authorization or order of, and no
notice to or filing with, any Governmental Authority or third party is required in
connection with the execution, delivery or performance by Manager or Parent of this
Agreement or by any Related Party of any Related Contract or to consummate any transactions
contemplated hereby or thereby.

(e) Enforceable Obligations. This Agreement and the Related Contracts are the
legal, valid and binding obligations of the Related Parties who are parties hereto or
thereto, enforceable in accordance with their terms except as such enforcement may be
limited by bankruptcy, insolvency or similar Laws of general application relating to the
enforcement of creditors’ rights and by general principles of equity.

(f) Full Disclosure. No certificate, statement or other information delivered
herewith or heretofore by Manager or Parent to Administrative Agent or any Holder in
connection with the negotiation of this Agreement or in connection with any transaction
contemplated hereby contains any untrue statement of a material fact or omits to state any
material fact known to Manager or Parent (other than industry-wide risks normally associated
with the types of businesses conducted by Company and the Related Parties) necessary to make
the statements contained herein or therein not misleading as of the date made or deemed
made. There is no fact known to Manager or Parent (other than industry-wide risks normally
associated with the types of businesses conducted by Company and the Related Parties) that
has not been disclosed to Administrative Agent in writing that is materially likely to cause
a material adverse effect on Manager’s, Parent’s, or Company’s business, operations,
properties, assets, condition (financial or otherwise) or prospects.

[Amended and Restated Management Services Agreement]

 

6

 

(g) Litigation. Except for litigation, if any, that is disclosed in the Note
Purchase Agreement or as described in Schedule 1 hereto, there is no action, suit or
proceeding pending before any Governmental Authority or, to Manager’s or Parent’s knowledge,
threatened against or otherwise affecting the Related Parties, the Properties, or the
transactions contemplated under the Related Contracts or the Note Documents.

(h) Names and Places of Business. Manager has not been known by, or used any
other trade or fictitious name. The chief executive office and principal place of business
of Manager is (and has since its formation been) located at the address of Manager set out
in Section 10. Parent has not been known by, or used any other trade or fictitious name.
The chief executive office and principal place of business of Parent is (and has since its
formation been) located at the address of Parent set out in Section 10.

(i) Solvency. Upon giving effect to the execution of this Agreement and the
Related Contracts and the consummation of the transactions contemplated hereby and thereby,
each of the following statements will be true with respect to each of Parent and Manager:
(i) it will be solvent (as such term is used in applicable bankruptcy, liquidation,
receivership, insolvency or similar Laws), (ii) the sum of its absolute and contingent
liabilities will not exceed the fair market value of its assets, (iii) its capital will be
adequate for the businesses in which it is engaged and intends to be engaged, and (iv) it
has not has incurred, nor does it intend to incur or believe that it will incur, debts that
will be beyond its ability to pay as such debts mature.

(j) Financial Information. Parent has heretofore delivered to Company and each
Holder true, correct and complete copies of the Initial Parent Financial Statements. The
Initial Parent Financial Statements fairly present Parent’s financial position at the
respective dates thereof and the results of Parent’s operations and Parent’s cash flows for
the respective periods thereof. Since the date of the annual Initial Parent Financial
Statements no material adverse change has occurred. However, since the Closing Date, (i)
Parent has become involved in the Existing Litigation, (ii) Parent makes no representation
or warranty as to whether the Existing Litigation constitutes a material adverse change, and
(iii) the preceding sentence is so qualified by the existence of such Existing Litigation.
All Initial Parent Financial Statements were prepared in accordance with GAAP.

(k) Value of Consideration. The value of the consideration received and to be
received by each of Parent and Manager in connection with this Agreement and the other Note
Documents is reasonably worth at least as much as its liabilities and obligations hereunder,
and the same may reasonably be expected to benefit it, directly or indirectly.

(l) Costs. Each of Parent and Manager anticipates that the amount of the
Budgeted Drilling and Completion Costs will be sufficient to pay for the drilling and
completion of the wells to be drilled pursuant to the APOD (as amended) and that Company
will not incur Excess Capital Costs.

[Amended and Restated Management Services Agreement]

 

7

 

Section 6. Covenants.

(a) No Proceedings. Each of Parent and Manager hereby agrees not to commence,
join any other Person in commencing, or authorize a trustee or other Person acting on
Company’s behalf or on behalf of others to commence, any bankruptcy, reorganization,
arrangement, insolvency, liquidation, or receivership proceeding with respect to Company or
any Related Party (or the assets of any of them) under the laws of the United States or any
state of the United States.

(b) Performance Under Note Documents. Each of Parent and Manager agrees not to
take any action that would prevent or delay Company or any Related Party from performing its
obligations under any Note Document or Related Contract to which it is a party.

(c) Funds in Trust. To the extent that Manager or Parent ever receives any
proceeds of production from the Properties, any other proceeds of the Properties, or any
other funds in any way accruing to the Properties or otherwise belonging to Company, Manager
and Parent will account for such proceeds and funds and immediately pay the same into the
Collateral Account and, pending such payments, will hold all such proceeds and funds in
trust for Company and Holder Parties and will keep such funds separate from its own funds.

(d) Maintenance of Existence and Qualifications. Each of Parent and Manager
will maintain and preserve its existence and its rights and franchises in full force and
effect and will qualify to do business in all states or jurisdictions where required by
applicable Law.

(e) Financial Statements. Parent will at all times maintain full and accurate
books of account and records, will maintain and will cause its Subsidiaries to maintain a
standard system of accounting, and will furnish, at its expense, the following statements
and reports to Company and each Holder Party:

(i) As soon as available, and in any event within one hundred and five (105) days after
the end of each of its fiscal years, complete consolidated financial statements of itself
and its subsidiaries together with all notes thereto, prepared in reasonable detail in
accordance with GAAP, together with an unqualified opinion, based on an audit using
generally accepted auditing standards, by an independent certified public accounting firm
selected by it and acceptable to Administrative Agent, stating that such consolidated
financial statements have been so prepared. These financial statements shall contain a
consolidated balance sheet as of the end of such fiscal year and consolidated statements of
earnings, of cash flows, and of changes in owners’ equity for such fiscal year, each setting
forth in comparative form the corresponding figures for the preceding fiscal year.

(ii) As soon as available, and in any event within sixty (60) days after the end of
each of its fiscal quarters, complete consolidated financial statements of itself and its
subsidiaries. These financial statements shall contain consolidated balance sheet as of the
end of such fiscal quarter and consolidated statements of earnings and of cash flows for
the period from the beginning of the then current fiscal year to the end of such fiscal
quarter, all in reasonable detail and prepared in accordance with GAAP, subject to changes
resulting from normal year-end adjustments.

[Amended and Restated Management Services Agreement]

 

8

 

(f) Non-Consolidation. Each of Parent and Manager will (i) maintain entity
records and books of account separate from those of its Affiliates, (ii) not commingle its
funds or assets with those of any of its Affiliates, and (iii) provide that is board of
directors or other analogous governing body (as applicable) will hold all appropriate
meetings to authorize and approve such its actions, which meetings will be separate from
those of other entities.

(g) Lease Level Payables. Manager will cause the Lease Level Payables to be
paid from Company’s funds and in accordance with the requirements of the Note Purchase
Agreement.

(h) Excess Drilling & Completion Costs. If Company ever becomes liable for any
Excess Drilling & Completion Costs, each of Parent and Manager agrees to timely pay the same
from its own funds, without reimbursement from Company, and hereby waives and releases any
right of reimbursement or subrogation, any Lien, or any similar right that it might
otherwise have against Company or its assets.

(i) Related Contracts. Each of Parent and Manager hereby agrees to promptly,
completely and fully perform, and Parent herby agrees to cause its Subsidiaries to perform,
all of its and their obligations and undertakings under, by reason of, or pursuant to the
Related Contracts to which any of them is a party. Each Related Party will at all times
maintain sufficient assets, net worth and personnel to enable it to perform all of its
obligations under this Agreement and the Related Contracts to which it is a party. In
furtherance of the foregoing provisions of this subsection and not in limitation thereof,
each Related Party hereby agrees not to sell, transfer, lease, exchange, alienate or dispose
of any of its material assets or properties or any material interest therein, or discount,
sell, pledge or assign any notes payable to it, accounts receivable or future income.

(j) AMI. Company will be the only Subsidiary of Parent that now or hereafter
owns any Oil and Gas Property of any kind within the AMI, except that MV Pipeline and GO,
LLC may continue to own the Oil and Gas Properties it presently owns. Parent will not
acquire, and will not allow any of its Subsidiaries or Affiliates other than Company to
acquire, any Oil and Gas Property in the Project Area, and if any of them now or hereafter
acquires any Oil and Gas Property within the Project Area, Parent will cause such Oil and
Gas Property to be promptly transferred to Company as a capital contribution.

(k) Guaranty of Manager’s Performance. Parent hereby irrevocably, absolutely,
and unconditionally guarantees to Company (and to each Express Beneficiary) the prompt,
complete, and full performance when due, and no matter how the same shall become due, of all
promises, undertakings, and obligations of Manager under this Agreement.

[Amended and Restated Management Services Agreement]

 

9

 

Section 7. Term. The respective rights, duties, and obligations of the parties
hereunder shall commence on the effective date hereof, shall continue until the Obligations have
been fully and finally paid, and thereupon shall be renewed and shall continue automatically for
additional one (1) year terms thereafter; provided that any party hereto may, once the Note
Purchase Agreement has been terminated and all Obligations paid in full, terminate this Agreement
by giving written notice of termination to the other parties at least thirty (30) days prior to the
date as of which such termination is to be effective. In addition, upon the occurrence and during
the continuance of an Event of Default under the Note Purchase Agreement (other than the Designated
Defaults defined and described in the First Amendment to Note Purchase Agreement of even date
herewith among Company, Administrative Agent, and the Holders), Administrative Agent may, in its
discretion, elect to terminate this Agreement at any time, and in such event (x) Company’s only
payment obligations to Manager will be for Services rendered prior to the date of such termination,
and (y) Manager will have no right or obligation hereunder to perform Services after the date of
such termination

Section 8. Subordination. As used herein, “Subordinated Liabilities” means any and
all Liabilities that are at any time owed by Company to Manager or Parent, other than Company’s
obligation to reimburse Manager for Lease Level Payables as described in Section 4. Each of Parent
and Manager hereby subordinates and makes inferior to the Obligations any and all Subordinated
Liabilities that now or at any time hereafter may be owed to it by Company and further agrees that:

(a) it will never permit Company to pay any Subordinated Liabilities or any part
thereof or accept payment from Company of any Subordinated Liabilities or any part thereof
without the prior written consent of Administrative Agent, and

(b) it will never accept or retain any Distributions except as permitted under the Note
Purchase Agreement or accept any other payments from Company other than payments of
Subordinated Liabilities to which Administrative Agent has consented in writing.

If Manager or Parent receives any payment of Subordinated Liabilities or any such Distribution
without the prior written consent of Administrative Agent, the amount so paid shall be held in
trust for the benefit of Holder Parties, shall be segregated from its other funds, and shall
forthwith be paid over to Administrative Agent. Each of Parent and Manager hereby further
subordinates and makes inferior to the liens and security interests from time to time granted under
the Note Documents any liens or security interests in its favor that burden or encumber any of the
Properties or assets of Company and agrees that it will, immediately upon request from
Administrative Agent, release any such lien or security interest. Administrative Agent hereby
consents to the payment of the Service Fee, as and when provided in Section 4, but only so long as
no Default or Event of Default exists.

[Amended and Restated Management Services Agreement]

 

10

 

Section 9. Obligations Hereunder Not Affected; Waivers. No action that Company or
its Subsidiaries, any Express Beneficiary or any Holder may take or omit to take in connection with
this Agreement, any Related Contract, or any of the Note Documents, no course of dealing by Company
or its Subsidiaries with any Related Person or any other Person, and no change of circumstances,
shall release or diminish Manager’s or Parent’s obligations, liabilities,
agreements or duties hereunder, affect this Agreement in any way, or afford Manager or Parent
any recourse or setoff against Company or its Subsidiaries, any Express Beneficiary or any Holder,
regardless of whether any such action or inaction may be detrimental in any way to any Related
Person, to Company or any of its Subsidiaries, or to any of the Properties. Each of Parent and
Manager hereby waives, with respect to this Agreement and the Related Contracts: (a) notice that
Administrative Agent, any Holder Party, Company, or any other Person has taken or omitted to take
any action under any Note Document; (b) notice of acceptance of this Agreement; (c) demand,
presentment for payment, and notice of demand, dishonor, nonpayment, or nonperformance, with
respect to any Obligation; (d) notice of intention to accelerate, notice of acceleration, protest,
and notice of protest with respect to any Obligation; and (e) all other notices whatsoever.
Administrative Agent and Holder Parties shall have the right to enforce, from time to time, in any
order and at their sole discretion, any rights, powers and remedies that they may be entitled to
exercise under the Note Documents or otherwise, including judicial foreclosure, the exercise of
rights of power of sale, the taking of a deed or assignment in lieu of foreclosure, the appointment
of a receiver to collect rents, issues and profits, the exercise of remedies against personal
property, or the enforcement of any assignment of leases, rentals, oil or gas production, or other
properties or rights, whether real or personal, tangible or intangible. No failure on the part of
Administrative Agent or any Holder Party to exercise, and no delay in exercising, any right
hereunder or under any other Note Document shall operate as a waiver thereof; nor shall any single
or partial exercise of any right preclude any other or further exercise thereof or the exercise of
any other right. The rights, powers and remedies of Administrative Agent and Holder Parties
provided herein and in the other Note Documents are cumulative and are in addition to, and not
exclusive of, any other rights, powers or remedies provided by law or in equity. The rights of
Administrative Agent and Holder Parties hereunder are not conditional or contingent on any attempt
by Administrative Agent or any Holder Party to exercise any of its rights under any other Note
Document against Company or any other Person.

Section 10. Notices. Any notice which may be given hereunder shall be ineffective
unless in writing and either delivered by registered or certified mail with return receipt
requested to the addresses set out below or delivered by hand with written acknowledgment of
receipt. The addresses for notice are as follows:

	 	 	 	 	 
	 

	 	For Manager:
	 	Rio Vista Operating LLC

2121 Rosecrans Avenue, Suite 3355

El Segundo, California 90245

Attention: Ian Bothwell

Telecopier: (310) 563-6255
	 
	 	 	 	 
	 

	 	With a copy to:
	 	Kevin Finck

100 Spear Street, Suite 700

San Francisco, CA 94111

[Amended and Restated Management Services Agreement]

 

11

 

	 	 	 	 	 
	 

	 	For Parent:
	 	Rio Vista Energy Partners L.P.

2121 Rosecrans Avenue, Suite 3355

El Segundo, California 90245

Attention: Ian Bothwell 

Telecopier: (310) 563-6255

	 
	 	 	 	 
	 

	 	With a copy to:
	 	Kevin Finck

100 Spear Street, Suite 700

San Francisco, CA 94111

	 
	 	 	 	 
	 

	 	For Company:
	 	Rio Vista Penny LLC

2121 Rosecrans Avenue, Suite 3355

El Segundo, California 90245

Attention: Ian Bothwell

Telecopier: (310) 563-6255

	 
	 	 	 	 
	 

	 	With a copy to:
For
	 	Kevin Finck

100 Spear Street, Suite 700

San Francisco, CA 94111

	 
	 	 	 	 
	 

	 	
 Administrative Agent
and Holders:
	 	

TCW Asset Management Company,

as Administrative Agent

333 Clay Street, Suite 4150

Houston, TX 77002

Attention: Patrick Hickey

Telecopier: (713) 615- 7460

	 
	 	 	 	 
	 

	 	With a copy to:
	 	TCW Asset Management Company

865 South Figueroa Street, Suite 1800

Los Angeles, CA 90017

Attention: R. Blair Thomas

Telecopier: (213) 244-0604

Any such address may be changed at any time by written notice in accordance herewith. Each notice
hereunder shall be deemed to have been given when delivered in person or by courier service and
signed for against receipt thereof, or three business days after depositing it in the United States
mail with postage prepaid and properly addressed.

Section 11. Assigns. This Agreement shall be binding upon and shall inure to the
benefit of the parties hereto and their respective successors and permitted assigns; provided that
no party hereto may assign its rights hereunder without the written consent of the other parties
and of Administrative Agent. The Express Beneficiaries may pledge, assign, or otherwise transfer
any or all of its rights hereunder to any other Persons, and each such other Person shall thereupon
become an Express Beneficiary hereunder.

[Amended and Restated Management Services Agreement]

 

12

 

Section 12. Express Beneficiaries. Company, Parent, and Manager agree that
Administrative Agent, each Holder Party, and their respective successors and assigns (collectively,
the “Express Beneficiaries”) (i) are each an express and intended third party beneficiary of the
covenants and agreements made in this Agreement by Manager (which benefits are immediate and not
incidental), and (ii) have each acted in reliance upon its status as a third party beneficiary as
set forth above (including entering into the Note Documents to which it is a party).

Section 13. Amendment. No amendment of any provision of this Agreement shall be
effective unless it is in writing and signed by all parties hereto and Administrative Agent, and no
waiver of any provision of this Agreement, and no consent to any departure by any party hereto
therefrom, shall be effective unless it is in writing and signed by the other parties hereto and
Administrative Agent, and then such waiver or consent shall be effective only in the specific
instance and for the specific purpose for which given.

Section 14. Unenforceability. Any provision of this Agreement that is prohibited or
unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of
such prohibition or invalidity without invalidating the remaining portions hereof or thereof or
affecting the validity or enforceability of such provision in any other jurisdiction.

Section 15. Survival of Agreements. Manager’s, Parent’s, and Company’s various
representations, warranties, covenants and agreements in this Agreement shall survive the execution
and delivery of this Agreement and the other Note Documents and the performance hereof and thereof.

Section 16. Entire Agreement. This Agreement sets forth the entire agreement of the
parties with respect to the subject matter hereof and any prior agreements, written or oral,
relating thereto are hereby superseded.

Section 17. Governing Law. This Agreement shall be governed by and construed in
accordance with the Laws of the State of New York. 

Section 18. Consent to Jurisdiction. Each of Parent and Manager hereby
irrevocably (i) submits itself to the non-exclusive jurisdiction of the state and federal courts
sitting in the State and County of New York, (ii) agrees and consents that service of process may
be made upon it and any of its Subsidiaries in any legal proceeding relating to this Agreement, the
Note Documents or the Obligations by any means allowed under New York or federal law, and (iii)
waives any objection that it may now or hereafter have to the venue of any such proceeding being in
such a court and any claim that any such proceeding brought in such a court has been brought in an inconvenient forum.

[Amended and Restated Management Services Agreement]

 

13

 

Section 19. Waiver of Jury Trial, Punitive Damages, etc. Each of Manager,
Parent, and Company hereby knowingly, voluntarily, intentionally, and irrevocably:

(a) waives, to the maximum extent not prohibited by Law, any right it
may have to a trial by jury in respect of any litigation based hereon, or directly or indirectly at
any time arising out of, under or in connection with this Agreement or the Note Documents or any
transaction contemplated hereby or thereby or associated herewith or therewith, before or after
maturity;

(b) waives, to the maximum extent not prohibited by Law, any right it
may have to claim or recover in any such litigation any special, consequential, exemplary, or
punitive damages (regardless of how named), 

(c) certifies that no party hereto or Express Beneficiary and no
representative or agent or counsel for any party hereto or Express Beneficiary has represented,
expressly or otherwise, or implied that such party or Express Beneficiary would not, in the event
of litigation, seek to enforce the foregoing waivers, and 

(d) acknowledges that it has been induced to enter into this Agreement,
the other Note Documents and the transactions contemplated hereby and thereby by, among other
things, the mutual waivers and certifications contained in this section.

Section 20. Amendment and Restatement. This Agreement amends and restates in its
entirety that certain Management Services Agreement dated as of November 19, 2007 (the “Original
Agreement”) executed among the parties hereto (other than Manager) and Northport Production
Company, an Oklahoma corporation (“Northport”), as manager. The parties hereto agree that (i) all
of the terms hereof shall supersede the terms and provisions of the Original Agreement, (ii) that
the obligations of Northport as manager under the Original Agreement have been assumed by and are
the obligations of Manager and (iii) that Northport is hereby released from its obligations under
the Original Agreement.

[Amended and Restated Management Services Agreement]

 

14

 

Section 21. RZB Subordination Agreement. Notwithstanding anything to the contrary
contained herein, the rights and claims of any party hereto or any third party beneficiary
hereunder against the Parent (or any of its assets) shall be subordinate in all respects to any and
all obligations of the Parent owing to RZB Finance LLC (“RZB”), in accordance with the terms of the
Agreement of Subordination and Assignment dated November 19, 2007 among the Parent, the Manager and
the Company in favor of RZB.

[Remainder of page intentionally left blank.]

[Amended and Restated Management Services Agreement]

 

15

 

IN WITNESS WHEREOF, the undersigned have executed this Agreement as of the date first above
written.

	 	 	 	 	 
	 	RIO VISTA OPERATING LLC

 	 
	 	By:  	 	 
	 	 	Ian Bothwell 	 
	 	 	Manager 	 
	 
	 	RIO VISTA PENNY LLC

 	 
	 	By:  	 	 
	 	 	Ian Bothwell 	 
	 	 	Manager 	 
	 
	 	RIO VISTA ENERGY PARTNERS L.P.

 	 
	 	By:  	Rio Vista GP LLC, its general partner
 	 

	 	 	 	 	 
	 	By:  	
 	 
	 	 	Ian Bothwell 	 
	 	 	Manager 	 

	 	 	 	 	 
	 	ACKNOWLEDGED:

TRUST COMPANY OF THE WEST,

as Administrative Agent on behalf of Holder Parties

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 	 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

Signature Page

[Amended and Restated Management Services Agreement]

 

 

Schedule I

Litigation Disclosure

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00149-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00149-of-00352.parquet"}]]