Document:

Exhibit_1020

		
			Exhibit 10.20
		

		
			LIMITED WAIVER 
		

		
			This LIMITED WAIVER (hereinafter referred to as this “Agreement”), dated as of May 11, 2020 (the “Execution Date”), but effective as of the Effective Date (hereinafter defined), is made by and among SUNDANCE ENERGY INC., a Delaware corporation (“Parent”), SUNDANCE ENERGY, INC., a Colorado corporation (the “Borrower”), the other LOAN PARTIES hereto, the LENDERS party hereto, and MORGAN STANLEY CAPITAL ADMINISTRATORS INC., as administrative agent (in such capacity, the “Administrative Agent”).  Unless the context otherwise requires or unless otherwise expressly defined herein, capitalized terms used but not defined in this Agreement have the meanings assigned to such terms in the Credit Agreement (as defined below).
		

		
			WITNESSETH:
		

		
			WHEREAS, the Parent, the Borrower, the Administrative Agent and the lenders party thereto (the “Lenders”) are parties to that certain Amended & Restated Term Loan Credit Agreement, dated as of April 23, 2018 (as the same may have been amended, restated, amended and restated, supplemented or otherwise modified from time to time prior to the date hereof, the “Credit Agreement”); 
		

		
			WHEREAS, the Borrower has advised the Administrative Agent and the Lenders that (a) Deloitte & Touche LLP may include a going concern or like qualification or exception in its audit opinion with respect to the financial statements of the Parent and its Subsidiaries for the fiscal year ended December 31, 2019 (the “2019 Audited Financial Statements”) required to be delivered pursuant to Section 8.01(a) of the Credit Agreement as a result of the Borrower’s anticipated failure to comply with Section 9.01(b) of the Credit Agreement during the 2020 calendar year (the “Going Concern Qualification”) and (b) the Borrower will not deliver (i) the 2019 Audited Financial Statements required by Section 8.01(a) of the Credit Agreement, (ii) the certificate of the Financial Officer of the Parent as required by Section 8.01(c) of the Credit Agreement, (iii) the certificates of insurance as required by Section 8.01(e) of the Credit Agreement (iv) the production report and lease operating statements for the previous twelve (12) months as required by Section 8.01(m) of the Credit Agreement, and (v) the operating budget for the immediately succeeding twelve (12) months as required by Section 8.01(o) of the Credit Agreement (the foregoing, collectively, the “2019 Financial Deliverable Package”) to the Administrative Agent and each Lender within (A) with respect to the foregoing clauses (i) through (iv), ninety (90) days and (B) with respect to the foregoing clause (v), 120 days after the end of the fiscal year ended December 31, 2019 (the foregoing clauses (A) and (B), as applicable, the “Applicable 2019 Financial Statements Delivery Deadline”); 
		

		
			WHEREAS, the delivery of (a) the 2019 Audited Financial Statements accompanied by an auditor’s report containing the Going Concern Qualification and (b) the 2019 Financial Deliverable Package after the Applicable 2019 Financial Statements Delivery Deadline, in each case, would violate Sections 8.01(a),  (c),  (e),  (m) and (o)  of the Credit Agreement and would result in a Default or Event of Default under Section 10.01(e) of the Credit Agreement (any such Defaults or Events of Default being, collectively, the “Specified Defaults”); 
		

		
			WHEREAS, the Loan Parties have requested that the Lenders waive the Specified Defaults arising from such breaches of the terms of Sections 8.01(a),  (c),  (e),  (m) and (o) of the Credit Agreement; 
		

		
			WHEREAS, pursuant to Section 12.02(b) of the Credit Agreement, the Borrower, the other Loan Parties and the Required Lenders may waive, or consent to the Administrative Agent’s waiver of, certain provisions of the Credit Agreement and other Loan Documents pursuant to an agreement in writing; and
		

		
			WHEREAS, pursuant to Section 12.02(b) of the Credit Agreement, the Borrower, the other Loan Parties and Lenders comprising the Required Lenders are willing to waive the Specified Defaults with respect 

		 

		

			Limited Waiver – 2019 Audited Financial Statements (Term Facility) – Page 1

		

		

			 

		

to the delivery of the 2019 Financial Deliverable Package on and subject to the terms and conditions set forth herein.
		

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

			
	
			
				 1.
			

			
	
			
			Limited Waiver.  Subject to the terms and conditions set forth herein, effective as of April 29, 2020 (the “Effective Date”), the Required Lenders hereby waive the Specified Defaults arising solely from (a) the Borrower’s delivery of an audit report of the Parent and its Subsidiaries containing the Going Concern Qualification with respect to the 2019 Audited Financial Statements and (b) the Borrower’s delivery of the 2019 Financial Deliverable Package after the Applicable 2019 Financial Statements Delivery Deadline. The limited waiver set forth in this Section 1 (the “Waiver”) is limited to the extent expressly set forth herein and no other terms, covenants or provisions of the Credit Agreement or any other Loan Document shall in any way be affected hereby.  The Waiver is granted only with respect to the Specified Defaults relating to the 2019 Financial Deliverable Package, and shall not apply to any financial statements or other deliverables for any other fiscal year or period, any other breach of the terms of the Credit Agreement, or any actual or prospective default or breach of any other provision of the Credit Agreement or any other Loan Document.  Other than with respect to the Going Concern Qualification and the Applicable 2019 Financial Statements Delivery Deadline, the Waiver does not waive any other requirement with respect to delivery of the 2019 Financial Deliverable Package.  The Waiver shall not in any manner create a course of dealing or otherwise impair the future ability of the Administrative Agent or the Lenders to declare a Default or Event of Default under or otherwise enforce the terms of the Credit Agreement or any other Loan Document with respect to any matter other than the Specified Defaults specifically and expressly waived in, and subject to the terms of, the Waiver.

			
	
			
				 2.
			

			
	
			
			Conditions Precedent.  This Agreement and the Waiver provided for in Section 1 shall become effective on the date when the following conditions are met:

			
	
			
				 (a)
			

			
	
			
			the Administrative Agent shall have received a counterpart signature page of this Agreement duly executed by each of the Parent, the Borrower, the other Loan Parties, the Administrative Agent and Lenders constituting the Required Lenders;

			
	
			
				 (b)
			

			
	
			
			the Administrative Agent shall have received a fully executed copy of a valid waiver under the Revolving Credit Agreement and the other Revolving Loan Documents of any default or event of default resulting from the Borrower delivering (i) the 2019 Audited Financial Statements with the Going Concern Qualification and (ii) the 2019 Financial Deliverable Package after the Applicable 2019 Financial Statements Delivery Deadline, in form reasonably satisfactory to the Administrative Agent; 

			
	
			
				 (c)
			

			
	
			
			the Administrative Agent shall have received such other documents, instruments, opinions, certifications, undertakings, further assurances and other matters as the Administrative Agent may reasonably request; and 

			
	
			
				 (d)
			

			
	
			
			the Borrower shall have paid all fees and expenses payable to the Administrative Agent and the Lenders (including the fees and expenses of counsel to the Administrative Agent) accrued to date shall have been paid in full to the extent invoiced prior to the date hereof, but without prejudice to the later payment of accrued fees and expenses not so invoiced.

		
			 
		

		
			

		 

		

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				 3.
			

			
	
			
			Agreement to Amend the Credit Agreement.  In consideration of the Waiver, each Loan Party hereby agrees to enter into an amendment to the Credit Agreement with the Administrative Agent and the number of Lenders required by Section 12.02(b) of the Credit Agreement.  Such amendment shall amend certain provisions of the Credit Agreement in a manner to be mutually agreed by the Administrative Agent, the Loan Parties and such Lenders.  Failure of any Loan Party to enter into such amendment within fifteen (15) days from the Execution Date shall constitute an Event of Default under the Credit Agreement.   This Section 3 shall in all respects be subject to the Intercreditor Agreement dated as of April 23, 2018 (as amended, supplemented, restated or otherwise modified) by and among the Borrower, the other Grantors (as defined therein) party thereto, Toronto Dominion (Texas) LLC, as Senior Representative (as defined therein) and the
Administrative Agent, as Second Priority Representative (as defined therein), including Section 5.03 of the Intercreditor Agreement.

			
	
			
				 4.
			

			
	
			
			Ratification; Representations and Warranties.  Each Loan Party hereby (a) ratifies and affirms its obligations under, and acknowledges, renews and extends its continued liability under, each Loan Document to which it is a party and agrees that each Loan Document to which it is a party remains in full force and effect, except as expressly amended hereby and (b) represents and warrants to the Lenders that, as of the date hereof, after giving effect to the terms of this Agreement: (i) all of the representations and warranties contained in each Loan Document to which it is a party are true and correct in all material respects (unless already qualified by materiality in which case such applicable representation and warranty shall be true and correct), except to the extent any such representations and warranties are expressly limited to an earlier date, in which case, such representations and warranties shall continue to be true and correct in all material respects (unless already qualified by materiality in which case such applicable representation and warranty shall be true and correct) as of such specified earlier date and (ii) no Default or Event of Default has occurred and is continuing.

			
	
			
				 5.
			

			
	
			
			Counterparts.  This Agreement may be executed in counterparts (and by different parties hereto on different counterparts), each of which shall constitute an original, but all of which when taken together shall constitute a single contract. Delivery of an executed counterpart of a signature page of this Agreement by fax, as an attachment to an email or other similar electronic means shall be effective as delivery of a manually executed counterpart of this Agreement.

			
	
			
				 6.
			

			
	
			
			No Oral Agreement.  THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS EXECUTED HEREWITH AND THEREWITH REPRESENT THE FINAL AGREEMENT AMONG THE PARTIES HERETO AND THERETO 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.

			
	
			
				 7.
			

			
	
			
			Severability.  Any provision of this Agreement held to be invalid, illegal or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such invalidity, illegality or unenforceability without affecting the validity, legality and enforceability of the remaining provisions hereof or thereof; and the invalidity of a particular provision in a particular jurisdiction shall not invalidate such provision in any other jurisdiction.

			
	
			
				 8.
			

			
	
			
			Governing Law.  THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES UNDER THIS AGREEMENT SHALL BE GOVERNED BY, CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

		
			 
		

		
			 
		

			
	
			
				 9.
			

			
	
			
			JURISDICTION; SERVICE OF PROCESS; JURY TRIAL WAIVER. BORROWER, PARENT AND THE OTHER LOAN PARTIES AGREE TO THE PROVISIONS OF SECTION 12.09(B) 

		 

		

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	(JURISDICTION); SECTION 12.09(C) (SERVICE OF PROCESS) AND SECTION 12.09(D) (JURY TRIAL WAIVER) OF THE CREDIT AGREEMENT AND SUCH PROVISIONS ARE INCORPORATED HEREIN, MUTATIS MUTANDIS, AS A PART HEREOF.

			
	
			
				 10.
			

			
	
			
			Claims. As additional consideration to the execution, delivery, and performance of this Agreement by the parties hereto and to induce the Administrative Agent and the Lenders to enter into this Agreement, each Loan Party represents and warrants that it does not know of any defenses, counterclaims or rights of setoff to the payment of any Secured Obligations to the Administrative Agent, Secured Parties or the Lenders.

			
	
			
				 11.
			

			
	
			
			WAIVER AND RELEASE. IN CONSIDERATION OF THE WAIVER HEREIN AND OTHER GOOD AND VALUABLE CONSIDERATION, THE RECEIPT AND SUFFICIENCY OF WHICH IS HEREBY ACKNOWLEDGED, EACH LOAN PARTY HEREBY WAIVES, REMISES, RELEASES, AND FOREVER DISCHARGES EACH LENDER, SECURED PARTY, AND THE ADMINISTRATIVE AGENT, THEIR RESPECTIVE PREDECESSORS AND ITS SUCCESSORS, ASSIGNS, AFFILIATES, SHAREHOLDERS, DIRECTORS, OFFICERS, ACCOUNTANTS, ATTORNEYS, EMPLOYEES, AGENTS, REPRESENTATIVES, AND SERVANTS (COLLECTIVELY, THE “RELEASED PARTIES”) OF, FROM AND AGAINST ANY AND ALL CLAIMS, ACTIONS, CAUSES OF ACTION, SUITS, PROCEEDINGS, CONTRACTS, JUDGMENTS, DAMAGES, ACCOUNTS, RECKONINGS, EXECUTIONS, AND LIABILITIES WHATSOEVER OF EVERY NAME AND NATURE, WHETHER KNOWN OR UNKNOWN, WHETHER OR NOT WELL FOUNDED IN FACT OR IN LAW, AND WHETHER IN LAW, AT EQUITY, OR OTHERWISE, WHICH THE UNDERSIGNED EVER HAD OR NOW HAS FOR OR BY REASON OF ANY MATTER, CAUSE, OR ANYTHING WHATSOEVER TO THIS DATE RELATING TO OR ARISING OUT OF THE LOANS, OR ANY OF THEM, OR ANY OF THE LOAN DOCUMENTS, INCLUDING WITHOUT LIMITATION ANY ACTUAL OR ALLEGED ACT OR OMISSION OF ANY OF THE RELEASED PARTIES WITH RESPECT TO THE LOANS, OR ANY OF THEM, OR ANY OF THE LOAN DOCUMENTS, OR ANY LIENS OR COLLATERAL IN CONNECTION THEREWITH, OR THE ENFORCEMENT OF ANY OF SUCH LENDER’S OR SECURED PARTY’S OR THE ADMINISTRATIVE AGENT’S RIGHTS OR REMEDIES THEREUNDER.  THE TERMS OF THIS WAIVER AND RELEASE SHALL SURVIVE THE TERMINATION OF THIS AGREEMENT, THE LOANS, OR THE LOAN DOCUMENTS AND SHALL REMAIN IN FULL FORCE AND EFFECT AFTER THE TERMINATION THEREOF.

			
	
			
				 12.
			

			
	
			
			No Waiver. Borrower agrees that other than the Specified Defaults, no Event of Default and no Default has been waived or remedied by the execution of this Agreement by the Administrative Agent and the Lenders, and any such Default or Event or Default heretofore arising and currently continuing shall continue after the execution and delivery hereof.  Other than with respect to the Waiver specifically set forth herein, nothing contained in this Agreement nor any past indulgence by the Administrative Agent or the Lenders, nor any other action or inaction on behalf of the Administrative Agent or the Lenders (i) shall constitute or be deemed to constitute a waiver of any Defaults or Events of Default which may exist under the Credit Agreement or the other Loan Documents, or (ii) shall constitute or be deemed to constitute an election of remedies by the Administrative Agent or the Lenders or a waiver of any of the rights or remedies of the Administrative Agent or the Lenders provided in the Credit Agreement or the other Loan Documents or otherwise afforded at law or in equity.

		
			 
		

		
			 
		

			
	
			
				 13.
			

			
	
			
			Headings. Section headings used herein are for convenience of reference only, are not part of this Agreement and shall not affect the construction of, or be taken into consideration in interpreting, this Agreement.

		
			

		 

		

			Limited Waiver – 2019 Audited Financial Statements (Term Facility) – Page 4

		

		

			 

		

		

			
	
			
				 14.
			

			
	
			
			Fees and Expenses. The Parent and the Borrower hereby agree, jointly and severally, to reimburse the Administrative Agent and the Lenders for all reasonable and documented out-of-pocket costs and expenses incurred in connection with the development, preparation and execution of this Agreement, including the reasonable and documented fees, disbursements and other charges of one primary counsel to the Administrative Agent, in accordance with and to the extent required by Section 12.03 of the Credit Agreement. The Parent, the Borrower and each Loan Party further agree that any reasonable and documented out-of-pocket fees, costs and expenses paid by the Administrative Agent or any Lender to any restructuring advisor hired in connection with any workout, restructuring or similar negotiations in respect of the Credit Agreement and the Loans made thereunder shall be reimbursed in accordance with and subject to the obligations of the Parent and the Borrower set forth in Section 12.03 of the Credit Agreement.

		
			 
		

		
			[Signature Pages Follow]
		

		
			 
		

		
			

		 

		

			Limited Waiver – 2019 Audited Financial Statements (Term Facility) – Page 5

		

		

			 

		

		

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

		
			PARENT:
		

		
			 
		

		
			Sundance Energy Inc.,
		

		
			a Delaware corporation
		

		
			 
		

		
			By: /s/ Eric McCrady
		

		
			Name: Eric McCrady
		

		
			Title:  CEO
		

		
			BORROWER:
		

		
			 
		

		
			Sundance Energy, Inc.,
		

		
			a Colorado corporation
		

		
			 
		

		
			By: /s/ Eric McCrady
		

		
			Name: Eric McCrady
		

		
			Title:  CEO
		

		
			OTHER LOAN PARTIES:
		

		
			 
		

		
			Sea Eagle Ford, LLC
		

		
			 
		

		
			By: /s/ Eric McCrady
		

		
			Name:  Eric McCrady
		

		
			Title:  CEO
		

		
			Armadillo E&P, Inc.
		

		
			 
		

		
			By: /s/ Eric McCrady
		

		
			Name: Eric McCrady
		

		
			Title:  CEO
		

		
			 
		

		
			
		

		
			

		 

		

			Limited Waiver – 2019 Audited Financial Statements (Term Facility) – Signature Page

		

		

			 

		

		

		
			MORGAN STANLEY CAPITAL 
		

		
			ADMINISTRATORS INC.,  
		

		
			as Administrative Agent 
		

		
			 
		

		
			By: /s/ Parker Corbin
		

		
			Name: Parker Corbin
		

		
			Title:  Authorized Signatory
		

		
			 
		

		
			 
		

		
			 
		

		
			

		 

		

			Limited Waiver – 2019 Audited Financial Statements (Term Facility) – Signature Page

		

		

			 

		

		

		
			 
		

		
			 
		

		
			MORGAN STANLEY CAPITAL GROUP INC.,  
		

		
			as a Lender
		

		
			By: /s/ Parker Corbin
		

		
			Name: Parker Corbin
		

		
			Title: Vice President
		

		
			
		

		
			

		 

		

			Limited Waiver – 2019 Audited Financial Statements (Term Facility) – Signature Page

		

		

			 

		

		

		
			Apollo Moultrie Credit Fund, L.P., as a Lender
		

		
			By: Apollo Moultrie Credit Fund Advisors, L.P., its general partner
		

		
			By: Apollo Moultrie Capital Management, LLC, its general partner
		

		
			 
		

		
			By: /s/Joseph D. Glatt
		

		
			Name: Joseph D. Glatt
		

		
			Title: Vice President
		

		
			 
		

		
			 
		

		
			MPI (London) Limited, as a Lender
		

		
			By: Apollo TRF MP Management, LLC, its sub advisor
		

		
			By: Apollo Capital Management, L.P., its sole member
		

		
			By: Apollo Capital Management GP, LLC, its general partner
		

		
			 
		

		
			By: /s/ Joseph D Glatt
		

		
			Name: Joseph D. Glatt
		

		
			Title: Vice President
		

		
			 
		

		
			 
		

		
			Apollo Atlas Master Fund, LLC, as a Lender
		

		
			By: Apollo Atlas Management, LLC, its investment Manager
		

		
			 
		

		
			By: /s/ Joseph D Glatt 
		

		
			Name: Joseph D. Glatt
		

		
			Title: Vice President
		

		
			 
		

		
			 
		

		
			Apollo Tower Credit Fund, L.P, as a Lender
		

		
			By: Apollo Tower Credit Advisors, LLC, its general partner
		

		
			 
		

		
			By: /s/ Joseph D Glatt 
		

		
			Name: Joseph D. Glatt
		

		
			Title: Vice President
		

		
			 
		

		
			 
		

		
			Apollo TR Enhanced Levered Yield LLC, as a Lender 
		

		
			By: Apollo Total Return Enhanced Management LLC, its investment manager
		

		
			 
		

		
			By: /s/ Joseph D Glatt
		

		
			Name: Joseph D. Glatt
		

		
			Title: Vice President
		

		
			
		

		
			

		 

		

			Limited Waiver – 2019 Audited Financial Statements (Term Facility) – Signature Page

		

		

			 

		

		

		
			Apollo Union Street Partners, L.P., as a Lender 
		

		
			By: Apollo Union Street Advisors, L.P., its general partner
		

		
			By: Apollo Union Street Capital Management, LLC, its general partner
		

		
			 
		

		
			By: /s/ Joseph D Glatt
		

		
			Name: Joseph D. Glatt
		

		
			Title: Vice President
		

		
			 
		

		
			 
		

		
			AMISSIMA DIVERSIFIED INCOME ICAV,
		

		
			an Umbrella Irish Collective Asset-Management Vehicle with Segregated Liability between its Sub-Funds, acting in respect of its Sub-Fund Amissima Assicurazioni Multi-Credit Strategy Fund, as a Lender
		

		
			By: Apollo Management International LLP, solely in its capacity as Portfolio Manager and not in its individual corporate capacity
		

		
			By: AMI (Holdings), LLC, its member
		

		
			 
		

		
			By: /s/ Joseph D. Glatt
		

		
			Name: Joseph D. Glatt
		

		
			Title: Vice President
		

		
			 
		

		
			 
		

		
			Apollo Kings Alley Credit Fund, L.P., as a Lender 
		

		
			By: Apollo Kings Alley Credit Advisors, L.P., its general partner
		

		
			By: Apollo Kings Alley Credit Capital Management, LLC, its general partner
		

		
			 
		

		
			By: /s/ Joseph D. Glatt
		

		
			Name: Joseph D. Glatt
		

		
			Title: Vice President
		

		
			
		

		
			

		 

		

			Limited Waiver – 2019 Audited Financial Statements (Term Facility) – Signature Page

		

		

			 

		

		

		
			TRANQUILIDADE DIVERSIFIED INCOME ICAV,
		

		
			an Umbrella Irish Collective Asset-Management Vehicle with Segregated Liability between its Sub-Funds,
		

		
			acting in respect of its Sub-Fund, Tranquilidade Multi-Credit Strategy Fund, as a Lender
		

		
			By: Apollo Management International LLP,
		

		
			its portfolio manager, solely in its capacity as Portfolio Manager and not in its individual corporate capacity 
		

		
			By: AMI (Holdings), LLC, its member
		

		
			 
		

		
			By: /s/ Joseph D. Glatt
		

		
			Name: Joseph D. Glatt
		

		
			Title: Vice President
		

		
			 
		

		
			 
		

		
			Apollo TR Opportunistic Ltd., as a Lender
		

		
			By: Apollo Total Return Enhanced Management LLC, its investment manager
		

		
			And by: Apollo Total Return Management, its investment manager
		

		
			 
		

		
			By: /s/ Joseph D. Glatt
		

		
			Name: Joseph D. Glatt
		

		
			Title: Vice President
		

		
			 
		

		
			 
		

		
			Apollo Tactical Value SPN Investments, L.P., as a Lender
		

		
			By: Apollo Tactical Value SPN Advisors (APO DC), L.P., its general partner
		

		
			By: Apollo Tactical Value SPN Capital Management (APO DC-GP), LLC, its general partner
		

		
			 
		

		
			By: /s/ Joseph D. Glatt
		

		
			Name: Joseph D. Glatt
		

		
			Title: Vice President
		

		
			
		

		
			

		 

		

			Limited Waiver – 2019 Audited Financial Statements (Term Facility) – Signature Page

		

		

			 

		

		

		
			AG Energy Funding, LLC, 
		

		
			as a Lender
		

		
			 
		

		
			By: /s/ Todd Dittman
		

		
			Name: Todd Dittman
		

		
			Title: Authorized Person
		

		
			 
		

		
			
		

		
			

		 

		

			Limited Waiver – 2019 Audited Financial Statements (Term Facility) – Signature Page

		

		

			 

		

		

		
			Ares Capital Corporation
		

		
			 
		

		
			By: /s/ Josh Bloomstein
		

		
			Name: Josh Bloomstein
		

		
			Title: Authorized Signatory
		

		
			 
		

		
			 
		

		
			CION Ares Diversified Credit Fund
		

		
			 
		

		
			By:  /s/ Josh Bloomstein
		

		
			Name: Josh Bloomstein
		

		
			Title: Authorized Signatory
		

		
			 
		

		
			 
		

		
			Ares Credit Strategies Insurance Dedicated Fund Series of SALI Multi-Series Fund, L.P.
		

		
			By:  Ares Management LLC, its investment subadvisor
		

		
			By:  Ares Capital Management LLC, as subadvisor
		

		
			 
		

		
			By: /s/ Josh Bloomstein
		

		
			Name: Josh Bloomstein
		

		
			Title: Authorized Signatory
		

		
			 
		

		
			 
		

		
			Ares Direct Finance I LP
		

		
			By: Ares Capital Management LLC, its investment manager
		

		
			 
		

		
			By: /s/ Josh Bloomstein
		

		
			Name: Josh Bloomstein
		

		
			Title: Authorized Signatory
		

		
			 
		

		 

		

			Limited Waiver – 2019 Audited Financial Statements (Term Facility) – Signature PageExhibit

Exhibit 10.1

FIFTH AMENDMENT
TO
AMENDED AND RESTATED SENIOR SECURED REVOLVING CREDIT AGREEMENT
DATED AS OF MAY 11, 2020
AMONG
VIPER ENERGY PARTNERS LLC, 
AS BORROWER,
VIPER ENERGY PARTNERS LP, 
AS PARENT GUARANTOR,
WELLS FARGO BANK, NATIONAL ASSOCIATION, 
AS ADMINISTRATIVE AGENT,
AND
THE LENDERS PARTY HERETO
	
	
	 

WELLS FARGO SECURITIES, LLC,
AS SOLE BOOK RUNNER AND SOLE LEAD ARRANGER

 CANADIAN IMPERIAL BANK OF COMMERCE, NEW YORK BRANCH AND
PNC BANK, NATIONAL ASSOCIATION,
AS CO-SYNDICATION AGENTS

        

FIFTH AMENDMENT TO AMENDED AND RESTATED SENIOR SECURED REVOLVING CREDIT AGREEMENT
This FIFTH AMENDMENT TO AMENDED AND RESTATED SENIOR SECURED REVOLVING CREDIT AGREEMENT (this “Amendment”) dated as of May 11, 2020, is among: VIPER ENERGY PARTNERS LLC, a Delaware limited liability company (the “Borrower”); VIPER ENERGY PARTNERS LP, a Delaware limited partnership (the “Parent Guarantor”); each of the Lenders, as such term is defined in  the Credit Agreement referred to below, party hereto; and WELLS FARGO BANK, NATIONAL ASSOCIATION, as administrative agent for the Lenders (in such capacity, together with its successors in such capacity, the “Administrative Agent”).
R E C I T A L S
A.    The Borrower, the Administrative Agent and the Lenders are parties to that certain Amended and Restated Senior Secured Revolving Credit Agreement, dated as of July 20, 2018 (as amended prior to the date hereof, the “Credit Agreement”), pursuant to which the Lenders have made certain credit available to and on behalf of the Borrower.
B.    The parties hereto desire to enter into this Amendment to, among other things, (1) evidence the decrease of the Borrowing Base by the Required Lenders from $775,000,000 to $580,000,000 in respect to the May 1, 2020 Scheduled Redetermination as set forth in Section 3 hereof, effective as of the Amendment Effective Date (as defined below), and (2) amend the Credit Agreement as set forth in Section 2 hereof, effective as of the Amendment Effective Date.
C.    Now, therefore, to induce the Administrative Agent and the Lenders to enter into this Amendment and in consideration of the premises and the mutual covenants herein contained, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:
Section 1.    Defined Terms.  Each capitalized term used herein but not otherwise defined herein has the meaning given such term in the Credit Agreement, as amended by this Amendment.  Unless otherwise indicated, all section references in this Amendment refer to sections of the Credit Agreement.
Section 2.    Amendments to Credit Agreement.  In reliance on the representations, warranties, covenants and agreements contained in this Amendment, and subject to the satisfaction of the conditions precedent set forth in Section 4 hereof, the Credit Agreement is hereby amended as follows:
2.1    Amendments to Section 1.02 of the Credit Agreement.
(a)    The definition of “LIBO Rate” is hereby amended and restated in its entirety to read as follows:
“LIBO Rate” means, with respect to any Eurodollar Borrowing for any Interest Period, and subject to the implementation of a Replacement Rate in 

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accordance with Section 5.06, the rate appearing on Reuters Screen LIBOR01 Page as of 11:00 A.M., London time, two Business Days prior to the beginning of such Interest Period; provided that such rate shall never be less than 0.0%.  In the event that such rate does not appear on such page (or otherwise on such screen), the “LIBO Rate” shall be determined by reference to such other comparable publicly available service for displaying Eurodollar rates as may be selected by the Administrative Agent or, in the absence of such availability, by reference to the rate at which the Administrative Agent is offered dollar deposits at or about 11:00 A.M., London time, two Business Days prior to the beginning of such Interest Period in the interbank Eurodollar market where its Eurodollar and foreign currency and exchange operations are then being conducted for delivery on the first day of such Interest Period for the number of days comprised therein.
(b)    The definition of “Loan Documents” is hereby amended and restated in its entirety to read as follows:
“Loan Documents” means this Agreement, the First Amendment, the Second Amendment, the Third Amendment, the Fourth Amendment, the Fifth Amendment, the Notes, the Letter of Credit Agreements, the Letters of Credit and the Security Instruments and certain Existing Loan Documents as provided in Section 2.02(e).
(c)    The following definitions are hereby added where alphabetically appropriate to read as follows:
“Excess Cash” means, at any time, the aggregate cash or cash equivalents of the Loan Parties (other than Excluded Cash) in excess of $75,000,000.

“Excluded Cash” means (a) any cash to be used to pay obligations of the Loan Parties then due and owing (or required to be paid within five Business Days) to third parties and for which the Loan Parties have issued (or will issue) checks or have initiated (or will initiate) wires or ACH transfers in order to pay such obligations, (b) cash held in (i) accounts designated and used solely for payroll or employee benefits, (ii) cash collateral accounts with respect to Letters of Credit, (iii) trust accounts held and used exclusively for the payment of taxes of the Loan Parties, (iv) suspense or trust accounts held and used exclusively for royalty and working interest payments owing to third parties, and (v) other accounts held by a Loan Party exclusively as a fiduciary for a third party, (c) any cash or cash equivalents constituting purchase price deposits held in escrow by a third party pursuant to a binding and enforceable purchase and sale agreement with a third party containing customary provisions regarding the payment and refunding of such deposits, (d) any cash or cash equivalents in the aggregate amount of reserves being maintained in accordance with GAAP with respect to Excepted Liens, and (e) any cash or cash equivalents subject to a Lien pursuant to (i) clause (g) of the definition of “Excepted Liens” or (ii) Section 9.03(a)(ii), (c), (f) or (g).

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“Fifth Amendment” means that certain Fifth Amendment to Amended and Restated Senior Secured Revolving Credit Agreement, dated as of May 11, 2020, by and among the Borrower, the Parent Guarantor, the Administrative Agent, and the Lenders party thereto.
“IBA” has the meaning assigned to such term in Section 1.07.
2.2    Amendment to Article I of the Credit Agreement.  Article I of the Credit Agreement is hereby amended to insert a new Section 1.06 and Section 1.07 immediately after Section 1.05 therein to each read in full as follows:
Section 1.06    Divisions.  For all purposes under the Loan Documents, in connection with any division or plan of division under Delaware law (or any comparable event under a different jurisdiction’s laws): (a) if any asset, right, obligation or liability of any Person becomes the asset, right, obligation or liability of a different Person, then it shall be deemed to have been transferred from the original Person to the subsequent Person; and (b) if any new Person comes into existence, such new Person shall be deemed to have been organized on the first date of its existence by the holders of its Equity Interests at such time.

Section 1.07    Interest Rates; LIBOR Notifications.  The interest rate on Eurodollar Loans is determined by reference to the LIBO Rate, which is derived from the London interbank offered rate.  The London interbank offered rate is intended to represent the rate at which contributing banks may obtain short-term borrowings from each other in the London interbank market.  In July 2017, the U.K. Financial Conduct Authority announced that, after the end of 2021, it would no longer persuade or compel contributing banks to make rate submissions to the ICE Benchmark Administration (together with any successor to the ICE Benchmark Administrator, the “IBA”) for purposes of the IBA setting the London interbank offered rate.  As a result, it is possible that commencing in 2022, the London interbank offered rate may no longer be available or may no longer be deemed an appropriate reference rate upon which to determine the interest rate on Eurodollar Loans.  In light of this eventuality, public and private sector industry initiatives are currently underway to identify new or alternative reference rates to be used in place of the London interbank offered rate.  In the event that the London interbank offered rate is no longer available or in certain other circumstances as set forth in Section 3.03(b) of this Agreement, and as set forth in Section 3.03 and Section 5.06, the Administrative Agent will notify the Borrower in advance of any change to the reference rate upon which the interest rate on Eurodollar Loans is based.  However, the Administrative Agent does not warrant or accept any responsibility for, and shall not have any liability with respect to, the administration, submission or any other matter related to the London interbank offered rate or other rates in the definition of “LIBO Rate” or with respect to any Replacement Rate, including without limitation, whether the composition or characteristics of any such Replacement Rate, as it may or may not be adjusted, will be similar to, or produce the same value or economic equivalence of, the LIBO Rate 

3

        

or have the same volume or liquidity as did the London interbank offered rate prior to its discontinuance or unavailability.

2.3    Amendments to Section 6.02 of the Credit Agreement.  Section 6.02 of the Credit Agreement is hereby amended by (a) replacing “(f)” in the last sentence thereof with “(g)” and (b) adding a new subsection (g) immediately following the existing subsection (f) thereof as follows: 
(g)    At the time of and immediately after giving effect to such Borrowing or to the issuance, amendment, renewal or extension of such Letter of Credit, as applicable, no Excess Cash shall exist.

Section 3.    Borrowing Base Decrease.  In reliance on the covenants and agreements contained in this Amendment, and subject to the satisfaction of the conditions precedent set forth in Section 4 hereof, the Administrative Agent and the Required Lenders have redetermined the Borrowing Base and agree that the Borrowing Base shall be, effective as of the Amendment Effective Date, decreased from $775,000,000 to $580,000,000, and the Borrowing Base shall remain at $580,000,000 until the next Scheduled Redetermination, Interim Redetermination, or other redetermination or adjustment of the Borrowing Base thereafter, whichever occurs first pursuant to the terms of the Credit Agreement.  The Borrower, the Administrative Agent and the Lenders hereby agree that the redetermination of the Borrowing Base provided for in this Section 3 shall constitute the Scheduled Redetermination scheduled for May 1, 2020 for purposes of Section 2.07(b) of the Credit Agreement.  This Section 3 constitutes a New Borrowing Base Notice in accordance with Section 2.07(d) of the Credit Agreement.  The new Borrowing Base determined pursuant to this Section 3 shall be effective as of the Amendment Effective Date, notwithstanding the effective date that would otherwise be applicable to a redetermination pursuant to Section 2.07(d) of the Credit Agreement.
Section 4.    Conditions Precedent to Amendment Effective Date.  Sections 2 and 3 of this Amendment shall become effective on the date (such date, the “Amendment Effective Date”), when each of the following conditions is satisfied (or waived in accordance with Section 12.02 of the Credit Agreement):
4.1    The Administrative Agent shall have received from Lenders constituting Required Lenders, the Parent Guarantor, and the Borrower, counterparts (in such number as may be requested by the Administrative Agent) of this Amendment signed on behalf of such Person.
4.2    The Administrative Agent and the Lenders shall have received all fees and other amounts due and payable on or prior to the date hereof, including, to the extent invoiced, reimbursement or payment of all documented out-of-pocket expenses required to be reimbursed or paid by the Borrower under the Credit Agreement.
4.3    No Default shall have occurred and be continuing as of the date hereof, after giving effect to the terms of this Amendment.
The Administrative Agent is hereby authorized and directed to declare the Amendment Effective Date to have occurred when it has received documents confirming or certifying, to the 

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satisfaction of the Administrative Agent, compliance with the conditions set forth in this Section 4 or the waiver of such conditions as permitted in Section 12.02 of the Credit Agreement.  Such declaration shall be final, conclusive and binding upon all parties to the Credit Agreement for all purposes.
Section 5.    Miscellaneous.
5.1    Confirmation.  The provisions of the Credit Agreement, as amended by this Amendment, shall remain in full force and effect following the effectiveness of this Amendment.
5.2    Ratification and Affirmation; Representations and Warranties.  Each of the Parent Guarantor and the Borrower hereby (a) ratifies and affirms its obligations under, and acknowledges its continued liability under, each Loan Document to which it is a party and agrees that each Loan Document to which it is a party remains in full force and effect as expressly amended hereby and (b) represents and warrants to the Lenders that as of the date hereof, after giving effect to the terms of this Amendment:
(i)    all of the representations and warranties contained in each Loan Document to which it is a party are true and correct in all material respects (or, if already qualified by materiality, Material Adverse Effect or a similar qualification, true and correct in all respects), except to the extent any such representations and warranties are expressly limited to an earlier date, in which case such representations and warranties shall be true and correct in all material respects (or, if already qualified by materiality, Material Adverse Effect or a similar qualification, true and correct in all respects) as of such specified earlier date; and
(ii)    no Default or Event of Default has occurred and is continuing.
5.3    Counterparts.  This Amendment may be executed by one or more of the parties hereto in any number of separate counterparts, and all of such counterparts taken together shall be deemed to constitute one and the same instrument.  Delivery of this Amendment by facsimile or electronic transmission shall be effective as delivery of a manually executed counterpart hereof.
5.4    NO ORAL AGREEMENT.  THIS AMENDMENT, THE CREDIT AGREEMENT AND THE OTHER LOAN DOCUMENTS EXECUTED IN CONNECTION HEREWITH AND THEREWITH REPRESENT THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT UNWRITTEN ORAL AGREEMENTS OF THE PARTIES.  THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.
5.5    GOVERNING LAW.  THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF TEXAS.
5.6    Payment of Expenses.  In accordance with Section 12.03 of the Credit Agreement, the Borrower agrees to pay or reimburse the Administrative Agent for all of its reasonable out-of-pocket expenses incurred in connection with this Amendment, any other documents prepared in 

5

        

connection herewith and the transactions contemplated hereby, including, without limitation, the reasonable fees, charges and disbursements of counsel to the Administrative Agent.
5.7    Severability.  Any provision of this Amendment that is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.
5.8    Successors and Assigns.  This Amendment shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns.
5.9    Loan Document.  This Amendment is a Loan Document.

[SIGNATURES BEGIN NEXT PAGE]

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

	
		
	VIPER ENERGY PARTNERS LLC, as Borrower

	 
	 

	 
	 

	By:
	/s/ Teresa L. Dick

	Name:
	Teresa L. Dick

	Title:
	Executive Vice President, Chief Financial

	 
	Officer and Assistant Secretary

	
		
	VIPER ENERGY PARTNERS LP, as Parent Guarantor

	 
	 

	By: Viper Energy Partners GP LLC, its general partner

	 
	 

	 
	 

	By:
	/s/ Teresa L. Dick

	Name:
	Teresa L. Dick

	Title:
	Executive Vice President, Chief Financial

	 
	Officer and Assistant Secretary

SIGNATURE PAGE
FIFTH AMENDMENT TO CREDIT AGREEMENT

        

	
		
	WELLS FARGO BANK, NATIONAL ASSOCIATION,
as Administrative Agent and a Lender

	 
	 

	 
	 

	By:
	/s/ Michael Real

	 
	Name: Michael Real

	 
	Title: Director

SIGNATURE PAGE
FIFTH AMENDMENT TO CREDIT AGREEMENT

        

	
		
	CANADIAN IMPERIAL BANK OF COMMERCE, NEW YORK BRANCH, as a Lender

	 
	 

	 
	 

	By:
	/s/ Donovan C. Broussard

	 
	Name: Donovan C. Broussard

	 
	Title: Authorized Signatory

	 
	 

	 
	 

	By:
	/s/ Jacob W. Lewis

	 
	Name: Jacob W. Lewis

	 
	Title: Authorized Signatory

SIGNATURE PAGE
FIFTH AMENDMENT TO CREDIT AGREEMENT

        

	
		
	PNC BANK, NATIONAL ASSOCIATION, as a Lender

	 
	 

	 
	 

	By:
	/s/ John Engel

	 
	Name: John Engel

	 
	Title: Vice President

SIGNATURE PAGE
FIFTH AMENDMENT TO CREDIT AGREEMENT

        

	
		
	BBVA USA, as a Lender

	 
	 

	 
	 

	By:
	/s/ Gabriela Azcarate

	 
	Name: Gabriela Azcarate

	 
	Title: Senior Vice President

SIGNATURE PAGE
FIFTH AMENDMENT TO CREDIT AGREEMENT

        

	
		
	COMERICA BANK, as a Lender

	 
	 

	 
	 

	By:
	/s/ Cassandra Lucas

	 
	Name: Cassandra Lucas

	 
	Title: Portfolio Manager

SIGNATURE PAGE
FIFTH AMENDMENT TO CREDIT AGREEMENT

        

	
		
	BOKF, NA, dba BANK OF OKLAHOMA, as a Lender

	 
	 

	 
	 

	By:
	/s/ John Krenger 

	 
	Name: John Krenger 

	 
	Title: Vice President

SIGNATURE PAGE
FIFTH AMENDMENT TO CREDIT AGREEMENT

        

	
		
	CAPITAL ONE, NATIONAL ASSOCIATION, as a Lender

	 
	 

	 
	 

	By:
	/s/ Christopher Kuna

	 
	Name: Christopher Kuna

	 
	Title: Senior Director

SIGNATURE PAGE
FIFTH AMENDMENT TO CREDIT AGREEMENT

        

	
		
	CREDIT SUISSE AG, CAYMAN ISLANDS BRANCH, as a Lender

	 
	 

	 
	 

	By:
	/s/ Nupur Kumar

	 
	Name: Nupur Kumar

	 
	Title: Authorized Signatory

	 
	 

	 
	 

	By:
	/s/ Andrew Griffin

	 
	Name: Andrew Griffin

	 
	Title: Authorized Signatory

SIGNATURE PAGE
FIFTH AMENDMENT TO CREDIT AGREEMENT

        

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

	 
	 

	 
	 

	By:
	/s/ Ryan Knape

	 
	Name: Ryan Knape

	 
	Title: Director

SIGNATURE PAGE
FIFTH AMENDMENT TO CREDIT AGREEMENT

        

	
		
	JPMORGAN CHASE BANK, N.A., as a Lender

	 
	 

	 
	 

	By:
	/s/ David Morris

	 
	Name: David Morris

	 
	Title: Authorized Officer

SIGNATURE PAGE
FIFTH AMENDMENT TO CREDIT AGREEMENT

        

	
		
	CITIBANK, N.A., as a Lender

	 
	 

	 
	 

	By:
	/s/ Jeff Ard

	 
	Name: Jeff Ard

	 
	Title: Vice President

SIGNATURE PAGE
FIFTH AMENDMENT TO CREDIT AGREEMENT

        

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

	 
	 

	 
	 

	By:
	/s/ Ronald E. McKaig

	 
	Name: Ronald E. McKaig

	 
	Title: Managing Director

SIGNATURE PAGE
FIFTH AMENDMENT TO CREDIT AGREEMENT

        

	
		
	TRUIST BANK (formerly known as Branch Banking and Trust Company and SunTrust Bank), as a Lender

	 
	 

	 
	 

	By:
	/s/ James Giordano 

	 
	Name: James Giordano 

	 
	Title: Senior Vice President

SIGNATURE PAGE
FIFTH AMENDMENT TO CREDIT AGREEMENT

        

	
		
	GOLDMAN SACHS BANK USA, as a Lender

	 
	 

	 
	 

	By:
	/s/ Jamie Minieri

	 
	Name: Jamie Minieri

	 
	Title: Authorized Signatory

SIGNATURE PAGE
FIFTH AMENDMENT TO CREDIT AGREEMENT

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