Document:

Document

Execution Version

    First Amendment to Credit Agreement

This First Amendment to Credit Agreement (this “First Amendment”) dated as of September 24, 2021, is among Independence Energy Finance LLC, a Delaware limited liability company (the “Borrower”); each of the undersigned Guarantors (collectively with the Borrower, the “Obligors”); Wells Fargo Bank, National Association, as administrative agent for the Lenders (in such capacity, together with its successors, the “Administrative Agent”), Collateral Agent and a Letter of Credit Issuer; and the Lenders signatory hereto.

    Recitals

A.    The Borrower, the Administrative Agent, the Collateral Agent, the Letter of Credit Issuers and the Lenders are parties to that certain Credit Agreement dated as of May 6, 2021 (as amended, modified, supplemented or restated from time to time 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 Borrower, the Administrative Agent and the Lenders have agreed to amend certain provisions of the Credit Agreement as more fully set forth herein.
C.    NOW, THEREFORE, 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 which is defined in the Credit Agreement, but which is not defined in this First Amendment, shall have the meaning ascribed such term in the Credit Agreement.  Unless otherwise indicated, all section, exhibit and schedule references in this First Amendment refer to sections, exhibits and schedules of the Credit Agreement.  In addition, as used in this First Amendment, each of the following terms shall have the meaning set forth below:
“Contango” means Contango Oil & Gas Company, a Texas corporation.
“Contango Acquisition” means the acquisition by the Borrower of L Merger Sub, the successor by merger to Contango, pursuant to the terms and conditions of the Contango Transaction Agreement.
“Contango Credit Parties” means, collectively, L Merger Sub, Contango Operators Inc., Contaro Company, Contango Midstream Company, Contango Alta Investments, Inc., Contango Resources, Inc., Michael Merger Sub LLC, Mid-Con Energy Properties, LLC, Mid-Con Energy GP, LLC and Mid-Con Energy Finance Corporation.
“Contango Properties” means the Oil and Gas Properties and other Properties acquired by the Borrower and its Restricted Subsidiaries pursuant to the Contango Transaction Agreement.
“Contango Reserve Reports” means, collectively, the reserve reports prepared as of July 1, 2021 with respect to the Contango Properties.
“Contango Transaction Agreement” means that certain Transaction Agreement, dated as of June 7, 2021, by and among Contango, Independence Energy LLC, a 
			
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Delaware limited liability company, IE PubCo Inc., a Delaware corporation, OpCo, IE C Merger Sub Inc., a Delaware corporation and L Merger Sub.
“First Amendment Reserve Reports” shall mean, collectively, (i) the reserve reports of the Credit Parties, prepared internally by the petroleum engineers of the Credit Parties, with respect to the Oil and Gas Properties of the Credit Parties (other than the Contango Credit Parties) as of July 1, 2021 and (ii) the Contango Reserve Reports.
“L Merger Sub” means IE L Merger Sub LLC, a Delaware limited liability company.
“OpCo” means IE OpCo LLC, a Delaware limited liability company.
Section 2.Amendments to Credit Agreement on First Amendment Signing Date.  Subject to the conditions precedent contained in Section 3 hereof, the Credit Agreement shall be amended effective as of the First Amendment Signing Date in the manner provided in this Section 2.
2.1Amendments to Section 1.02.  
(a)Each of the following definitions is hereby amended and restated in its entirety to read as follows:
“Agreement” shall mean this Credit Agreement, as amended by the First Amendment, as the same may from time to time be amended, restated, amended and restated, supplemented or otherwise modified. 
“Benchmark Replacement Adjustment” means, with respect to any replacement of the then-current Benchmark with an Unadjusted Benchmark Replacement for any applicable Interest Period and Available Tenor for any setting of such Unadjusted Benchmark Replacement: 
(1)    for purposes of clauses (a)(1) and (b) of the definition of “Benchmark Replacement,” an amount equal to (A) 0.11448% (11.448 basis points) for an Available Tenor of one-month’s duration, (B) 0.26161% (26.161 basis points) for an Available Tenor of three-months’ duration and (C) 0.42826% (42.826 basis points) for an Available Tenor of six-months’ duration;
(2)    for purposes of clause (a)(2) of the definition of “Benchmark Replacement,” an amount equal to 0.26161% (26.161 basis points); and
(3)    for purposes of clause (a)(3) of the definition of “Benchmark Replacement,” the spread adjustment, or method for calculating or determining such spread adjustment, (which may be a positive or negative value or zero) that has been selected by the Administrative Agent and the Borrower giving due consideration to (i) any selection or recommendation of a spread adjustment, or method for calculating or determining such spread adjustment, for the replacement of such Available Tenor of such Benchmark with the applicable Unadjusted Benchmark Replacement by the Relevant Governmental Body on the applicable Benchmark Replacement Date or (ii) any evolving or then-prevailing market convention for determining a spread adjustment, or method for calculating or determining such spread adjustment, for the replacement of such Available Tenor of such Benchmark with the applicable Unadjusted Benchmark Replacement for Dollar-denominated syndicated credit facilities.

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(b)The following definition is hereby added where alphabetically appropriate to read as follows:
“First Amendment” shall mean that certain First Amendment to Credit Agreement, dated as of September 24, 2021, among the Borrower, the Administrative Agent and the Lenders party thereto.
(c)The definition of “ISDA Definitions” is hereby deleted.
2.2Amendment to Section 2.14(e).  Section 2.14(e) is hereby amended and restated in its entirety to read as follows:
(e)    Reduction of Borrowing Base Upon Incurrence of Permitted Junior Lien Debt and/or Permitted Additional Debt.  Upon the issuance or incurrence of any Permitted Junior Lien Debt and/or Permitted Additional Debt in accordance with Section 10.1(o) (other than (x) Permitted Additional Debt or Permitted Junior Lien Debt incurred on or after September 24, 2021, in an aggregate principal amount up to $300,000,000 and (y) Permitted Junior Lien Debt or Permitted Additional Debt constituting Permitted Refinancing Indebtedness incurred to Refinance such Indebtedness), unless otherwise determined by the Required Lenders, the Borrowing Base then in effect shall be reduced by an amount equal to the product of 0.25 multiplied by the stated principal amount of such Permitted Additional Debt or Permitted Junior Lien Debt, as applicable, (without regard to any original issue discount), and the Borrowing Base as so reduced shall become the new Borrowing Base one Business Day after such issuance or incurrence, effective and applicable to the Borrower, the Administrative Agent, the Letter of Credit Issuers and the Lenders on such date until the next redetermination or modification thereof hereunder.
2.3Amendment to Section 2.18(a)(i).  Section 2.18(a)(i) is hereby amended by adding the following new sentence at the end thereof: “If an Unadjusted Benchmark Replacement is Daily Simple SOFR, all interest payments will be payable on a quarterly basis.”
Section 3.Conditions Precedent to First Amendment Signing Date.  Section 2 of this First Amendment shall become effective on the date (such date, the “First Amendment Signing Date”) on which the Administrative Agent shall have received from each Lender and each Obligor counterparts (in such number as may be reasonably requested by the Administrative Agent) of this First Amendment signed on behalf of such Persons.
Section 4.    Initial Increase of Elected Commitments.  
4.1Initial Increase.  The Borrower has informed the Lenders that it desires to increase the Aggregate Elected Commitments on the Initial ECA Increase Effective Date (as defined below) to an amount equal to either $600,000,000, $650,000,000 or $700,000,000.  Subject to the conditions precedent contained in Section 4.2, each of the Lenders hereby agrees to increase its Elected Commitment Amount on the Initial ECA Increase Effective Date as follows: (a) if the Initial ECA Increase Notice (as defined below) specifies an Aggregate Elected Commitment Amount equal to $600,000,000, each Lender’s Elected Commitment Amount on the Initial ECA Increase Effective Date shall be the Elected Commitment Amount specified for such Lender on Exhibit A to this First Amendment; (b) if the Initial ECA Increase Notice specifies an Aggregate Elected Commitment Amount equal to $650,000,000, each Lender’s Elected Commitment Amount on the Initial ECA Increase Effective Date shall be the Elected Commitment Amount specified for such Lender on Exhibit B to this First Amendment; or (c) if the Initial ECA Increase Notice specifies an Aggregate Elected Commitment Amount equal to $700,000,000, each Lender’s Elected Commitment Amount on the Initial ECA Increase Effective Date shall be the Elected Commitment Amount specified for such Lender on Exhibit C 

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to this First Amendment.  This First Amendment shall constitute an Incremental Agreement with respect to the increase of the Elected Commitment Amounts set forth in this Section 4.1.
4.2Conditions Precedent to Initial ECA Increase Effective Date.  Section 4.1 of this First Amendment shall become effective on the date (such date, the “Initial ECA Increase Effective Date”) when each of the following conditions is satisfied (or waived in accordance with Section 13.1): 
(a)Notice of Elected Commitment Amount Increase.  The Administrative Agent shall have received a written notice from an Authorized Officer of the Borrower (which notice shall be irrevocable) at least three Business Days prior to the Initial ECA Increase Effective Date, specifying (a) that the Borrower desires for the Initial ECA Increase Effective Date to occur pursuant to the terms of this First Amendment and (b) the Aggregate Elected Commitment Amount to become effective on the Initial ECA Increase Effective Date, which amount shall be equal to either $600,000,000, $650,000,000 or $700,000,000 (as selected by the Borrower in its sole discretion) (such notice, the “Initial ECA Increase Notice”).
(b)No Event of Default.  No Event of Default shall have occurred and be continuing as of the Initial ECA Increase Effective Date.
The Administrative Agent is hereby authorized and directed to declare Section 4.1 of this First Amendment to be effective (and the Initial ECA Increase Effective Date shall occur) when it has received documents confirming or certifying, to the satisfaction of the Administrative Agent, compliance with the conditions set forth in this Section 4.2 or the waiver of such conditions as permitted in Section 13.1 of the Credit Agreement.  Such declaration shall be final, conclusive and binding upon all parties to the Credit Agreement for all purposes.  Notwithstanding anything to the contrary contained herein, if the Initial ECA Increase Effective Date does not occur on or prior to 5:00 p.m. (Houston time) on December 1, 2021, then none of the conditions contained in this Section 4.2 shall be deemed to be satisfied, and the Initial ECA Increase Effective Date shall not occur (and for the avoidance of doubt, Section 4.1 of this First Amendment shall be of no force or effect).
4.3Assignment and Reallocation of Commitments and Loans.  Effective as of the Initial ECA Increase Effective Date, each Lender has, in consultation with the Borrower, agreed to, and, for an agreed consideration, does hereby reallocate its respective Maximum Credit Amount, Commitment, Loans and L/C Participations (the “Assignment and Reallocation”).  On the Initial ECA Increase Effective Date, and after giving effect to the Assignment and Reallocation, the Maximum Credit Amount and Commitment of each Lender shall be as set forth on Amended Schedule 1.1(a) (as defined below), which Amended Schedule 1.1(a) amends and restates Schedule 1.1(a) to the Credit Agreement in its entirety.  Each of the Administrative Agent, each Lender, each Letter of Credit Issuer and the Borrower hereby consents and agrees to the Assignment and Reallocation.  With respect to the Assignment and Reallocation, each Lender shall be deemed to have sold and assigned its Maximum Credit Amount, Commitment, Loans and L/C Participations, and each Lender shall be deemed to have acquired its Maximum Credit Amount, Commitment, Loans and L/C Participations allocated to it from each other Lender pursuant to the terms and conditions of the Assignment and Acceptance attached as Exhibit A to the Credit Agreement (the “Assignment Agreement”), including Annex 1 to the Assignment Agreement (the “Standard Terms and Conditions”) and the Credit Agreement, as if each Lender had executed such Assignment Agreement with respect to the Assignment and Reallocation, pursuant to which (i) each Lender shall be an “Assignee”, (ii) each Lender shall be an “Assignor” and (iii) the term “Effective Date” shall be the Initial ECA Increase Effective Date as defined herein.  Such Assignment and Reallocation shall be without recourse to each Lender and, except as expressly provided in the Assignment Agreement, without representation or warranty by such Lender.  On the Initial ECA Increase Effective Date, (i) the Administrative Agent shall take the actions specified in Section 13.6(c)(v), including recording the Assignment and Reallocation described herein in the Register, and (ii) the 

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Assignment and Reallocation shall be effective for all purposes of the Credit Agreement.  Notwithstanding Section 13.6(b)(ii)(C), no Lender shall be required to pay a processing and recordation fee of $3,500 to the Administrative Agent in connection with the Assignment and Reallocation.  The Standard Terms and Conditions are hereby agreed to and incorporated herein by reference and made a part of the terms of the Assignment and Reallocation pursuant to this Section 4.3 as if set forth herein in full.  As used herein, “Amended Schedule 1.1(a)” means (a) if the Initial ECA Increase Notice specifies an Aggregate Elected Commitment Amount equal to $600,000,000, Exhibit A to this First Amendment; (b) if the Initial ECA Increase Notice specifies an Aggregate Elected Commitment Amount equal to $650,000,000, Exhibit B to this First Amendment; or (c) if the Initial ECA Increase Notice specifies an Aggregate Elected Commitment Amount equal to $700,000,000, Exhibit C to this First Amendment.  
Section 5.Additional Increase of Elected Commitments.  
5.1Additional Increase.  In the event that the Aggregate Elected Commitment Amount on the Initial ECA Increase Effective Date is either $600,000,000 or $650,000,000, and subject to the conditions precedent contained in Section 5.2, each of the Lenders hereby agrees to further increase its Elected Commitment Amount on the Additional ECA Increase Effective Date (as defined below) as follows: (a) if the Additional ECA Increase Notice (as defined below) specifies an Aggregate Elected Commitment Amount equal to $650,000,000, each Lender’s Elected Commitment Amount on the Additional ECA Increase Effective Date shall be the Elected Commitment Amount specified for such Lender on Exhibit B to this First Amendment; or (b) if the Additional ECA Increase Notice specifies an Aggregate Elected Commitment Amount equal to $700,000,000, each Lender’s Elected Commitment Amount on the Additional ECA Increase Effective Date shall be the Elected Commitment Amount specified for such Lender on Exhibit C to this First Amendment.  This First Amendment shall constitute an Incremental Agreement with respect to the increase of the Elected Commitment Amounts set forth in this Section 5.1.
5.2Conditions Precedent to Additional ECA Increase Effective Date.  Section 5.1 of this First Amendment shall become effective on the date (such date, the “Additional ECA Increase Effective Date”) when each of the following conditions is satisfied (or waived in accordance with Section 13.1): 
(a)Notice of Elected Commitment Amount Increase.  The Administrative Agent shall have received a written notice from an Authorized Officer of the Borrower (which notice shall be irrevocable) at least three Business Days prior to the Additional ECA Increase Effective Date, specifying (a) that the Borrower desires for the Additional ECA Increase Effective Date to occur pursuant to the terms of this First Amendment and (b) the Aggregate Elected Commitment Amount to become effective on the Additional ECA Increase Effective Date, which amount shall be equal to either $650,000,000 or $700,000,000 (as selected by the Borrower in its sole discretion) (such notice, the “Additional ECA Increase Notice”).
(b)No Event of Default.  No Event of Default shall have occurred and be continuing as of the Additional ECA Increase Effective Date.
The Administrative Agent is hereby authorized and directed to declare Section 5.1 of this First Amendment to be effective (and the Additional ECA Increase Effective Date shall occur) when it has received documents confirming or certifying, to the satisfaction of the Administrative Agent, compliance with the conditions set forth in this Section 5.2 or the waiver of such conditions as permitted in Section 13.1 of the Credit Agreement.  Such declaration shall be final, conclusive and binding upon all parties to the Credit Agreement for all purposes.  Notwithstanding anything to the contrary contained herein, if the Additional ECA Increase Effective Date does not occur on or prior to 5:00 p.m. (Houston time) on December 1, 2021, then none of the conditions contained in this Section 5.2 shall be deemed to be satisfied, and the 

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Additional ECA Increase Effective Date shall not occur (and for the avoidance of doubt, Section 5.1 of this First Amendment shall be of no force or effect).
5.3Additional Assignment and Reallocation of Commitments and Loans.  Effective as of the Additional ECA Increase Effective Date, each Lender has, in consultation with the Borrower, agreed to, and, for an agreed consideration, does hereby reallocate its respective Maximum Credit Amount, Commitment, Loans and L/C Participations (the “Additional Assignment and Reallocation”).  On the Additional ECA Increase Effective Date, and after giving effect to the Additional Assignment and Reallocation, the Maximum Credit Amount and Commitment of each Lender shall be as set forth on Additional Amended Schedule 1.1(a) (as defined below), which Additional Amended Schedule 1.1(a) amends and restates Schedule 1.1(a) to the Credit Agreement in its entirety.  Each of the Administrative Agent, each Lender, each Letter of Credit Issuer and the Borrower hereby consents and agrees to the Additional Assignment and Reallocation.  With respect to the Additional Assignment and Reallocation, each Lender shall be deemed to have sold and assigned its Maximum Credit Amount, Commitment, Loans and L/C Participations, and each Lender shall be deemed to have acquired its Maximum Credit Amount, Commitment, Loans and L/C Participations allocated to it from each other Lender pursuant to the terms and conditions of the Assignment Agreement, including the Standard Terms and Conditions and the Credit Agreement, as if each Lender had executed such Assignment Agreement with respect to the Additional Assignment and Reallocation, pursuant to which (i) each Lender shall be an “Assignee”, (ii) each Lender shall be an “Assignor” and (iii) the term “Effective Date” shall be the Additional ECA Increase Effective Date as defined herein.  Such Additional Assignment and Reallocation shall be without recourse to each Lender and, except as expressly provided in the Assignment Agreement, without representation or warranty by such Lender.  On the Additional ECA Increase Effective Date, (i) the Administrative Agent shall take the actions specified in Section 13.6(c)(v), including recording the Additional Assignment and Reallocation described herein in the Register, and (ii) the Additional Assignment and Reallocation shall be effective for all purposes of the Credit Agreement.  Notwithstanding Section 13.6(b)(ii)(C), no Lender shall be required to pay a processing and recordation fee of $3,500 to the Administrative Agent in connection with the Additional Assignment and Reallocation.  The Standard Terms and Conditions are hereby agreed to and incorporated herein by reference and made a part of the terms of the Additional Assignment and Reallocation pursuant to this Section 5.3 as if set forth herein in full.  As used herein, “Additional Amended Schedule 1.1(a)” means (a) if the Additional ECA Increase Notice specifies an Aggregate Elected Commitment Amount equal to $650,000,000, Exhibit B to this First Amendment; or (b) if the Additional ECA Increase Notice specifies an Aggregate Elected Commitment Amount equal to $700,000,000, Exhibit C to this First Amendment.
Section 6.Amendments to Credit Agreement Amendments to Credit Agreement on First Amendment Effective Date.  Subject to the conditions precedent contained in Section 7 hereof, the Credit Agreement shall be amended effective as of the First Amendment Effective Date in the manner provided in this Section 6.
6.1Amendments to Section 1.02.  
(a)Each of the following definitions is hereby amended and restated in its entirety to read as follows:
“Letter of Credit” shall have the meaning provided in Section 3.1 and shall include the Existing Letters of Credit and the Contango Existing Letters of Credit. 
“Letter of Credit Issuer” shall mean (a) Wells Fargo Bank, National Association, (b) JPMorgan Chase Bank, N.A., (c) any of their Affiliates or any replacement or successor appointed pursuant to Section 3.6, (d) solely with respect to the RBC Contango Letter of Credit, Royal Bank of Canada in its capacity as the issuer of the RBC Contango Letter of Credit and (e) if requested 

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by the Borrower (subject to the consent of the Administrative Agent, which consent shall not be unreasonably withheld, delayed or conditioned) any other Person who is at the time of such request a Lender that agrees to act as Letter of Credit Issuer (it being understood that if any such Person ceases to be a Lender hereunder, such Person will remain a Letter of Credit Issuer with respect to any Letters of Credit issued by such Person that remained outstanding as of the date such Person ceased to be a Lender).  Each Letter of Credit Issuer may, in its discretion, arrange for such Letter of Credit to be issued by any Lender or any Affiliate thereof that agrees to act as Letter of Credit Issuer, and in each such case the term “Letter of Credit Issuer” shall include any such Lender or Affiliate with respect to Letters of Credit issued by such Lender or Affiliate.  References herein and in the other Credit Documents to the Letter of Credit Issuer shall be deemed to refer to the Letter of Credit Issuer in respect of the applicable Letter of Credit or to all Letter of Credit Issuers, as the context requires.
(b)Each of the following definitions is hereby added where alphabetically appropriate to read as follows:
“Contango Existing Letters of Credit” shall mean (i) the RBC Contango Letter of Credit existing on the First Amendment Effective Date, (ii) that certain Irrevocable Standby Letter of Credit No. IS000034149U issued by Wells Fargo Bank, National Association to Mid-Con Energy Properties, LLC for the benefit of American Contractors Indemnity Company and/or U.S. Specialty Insurance Company, Tokio Marine HCC Surety, in an aggregate face amount equal to $1,000,000.00, existing on the First Amendment Effective Date and (iii) any amendments, extensions and renewals of the foregoing. 
“First Amendment Effective Date” has the meaning assigned to such term in the First Amendment.
“RBC Contango Letter of Credit” shall mean that certain Irrevocable Standby Letter of Credit No. 1185/S25311 issued by Royal Bank of Canada, as Letter of Credit Issuer, for the benefit of Apache Corporation, in an aggregate face amount equal to $1,800,000.00.
(c)The definition of “Initial Borrowing Base” is hereby deleted in its entirety.
6.2Amendment to Section 2.14(a).  Section 2.14(a) is hereby amended and restated in its entirety to read as follows:
(a)    First Amendment Borrowing Base.  For the period from and including the First Amendment Effective Date to but excluding the first Redetermination Date to occur thereafter, the amount of the Borrowing Base shall be equal to the difference of (i) $1,300,000,000 minus (ii) the amount of any adjustment to the Borrowing Base pursuant to the Borrowing Base Adjustment Provisions that occurred during the period from and after September 24, 2021 through and including the First Amendment Effective Date.  Notwithstanding the foregoing, the Borrowing Base may be subject to further adjustments from time to time pursuant to the Borrowing Base Adjustment Provisions.  For the avoidance of doubt and notwithstanding anything to the contrary set forth in the Credit Agreement, (i) the redetermination of the Borrowing Base on the First Amendment Effective Date pursuant to this Section 2.14(a) shall constitute the November 2021 Redetermination, (ii) this First Amendment shall constitute the New Borrowing Base Notice for the November 2021 Redetermination and (iii) the 

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First Amendment Effective Date shall constitute the Scheduled Redetermination Date for the November 2021 Redetermination.
6.3Amendment to Section 3.3(a).  Section 3.3(a) is hereby amended by replacing the parenthetical phrase “(and on the Closing Date, with respect to the Existing Letters of Credit)” with the parenthetical phrase “(and (x) on the Closing Date, with respect to the Existing Letters of Credit and (y) on the First Amendment Effective Date, with respect to the Contango Existing Letters of Credit)”.
6.4Amendment to Article III.  Article III is hereby amended by adding a new Section 3.13 to read as follows:
Section 3.13    Contango Existing Letters of Credit.  Subject to the terms and conditions hereof, on the First Amendment Effective Date, the Contango Existing Letters of Credit shall, without any further action by the Borrower, be deemed to have been issued by the applicable Letter of Credit Issuer pursuant to, and shall constitute a Letter of Credit for all purposes under, this Agreement, in each case without payment of any fees otherwise due upon the issuance of a Letter of Credit, and each Contango Existing Letter of Credit shall be subject to and governed by the terms and conditions hereof.
6.5Amendment to Section 7.3(b).  Section 7.3(b) is hereby amended by replacing the parenthetical phrase “(other than the Existing Letters of Credit)” with the parenthetical phrase “(other than the Existing Letters of Credit and the Contango Existing Letters of Credit)”.
6.6Amendment to Section 9.14(a).  The last sentence of Section 9.14(a) is hereby deleted in its entirety.  
Section 7.Conditions Precedent to First Amendment Effective Date.  Section 6 of this First Amendment shall become effective on the date (such date, the “First Amendment Effective Date”) when each of the following conditions is satisfied (or waived in accordance with Section 13.1): 
7.1Fees and Expenses.  The Administrative Agent and the Lenders shall have received all fees and other amounts due and payable on or prior to the First Amendment Effective Date, including (to the extent invoiced at least three (3) Business Days prior), reimbursement or payment of all reasonable and documented out-of-pocket expenses required to be reimbursed or paid by the Borrower under the Credit Agreement.
7.2Contango Transaction Closing.  The Contango Acquisition shall have been (or contemporaneously with the First Amendment Effective Date shall be) consummated in accordance with the terms of the Contango Transaction Agreement.  The Administrative Agent shall have received an officer’s certificate from the Borrower, certifying that (i) the Contango Acquisition has been consummated in accordance with applicable law and the terms described in the Contango Transaction Agreement without giving effect to any waiver, modification or consent thereunder that is materially adverse to the interests of the Lenders (in their capacities as such), and in connection therewith, either (x) the Borrower (or one or more of the other Credit Parties) has acquired all of the Contango Properties evaluated in the Contango Reserve Reports or (y) the PV-9 of the Contango Properties evaluated in the Contango Reserve Reports not acquired is not in excess of 5% of the total Borrowing Base value attributable to the Contango Properties evaluated in the Contango Reserve Report (and setting forth such Contango Properties not acquired on a schedule to such certificate), (ii) all of the Stock and Stock Equivalents of L Merger Sub have been contributed to the Borrower, and as a result thereof, each of the Contango Credit Parties constitutes a wholly owned direct or indirect Subsidiary of the Borrower and (iii) attached thereto is a true and complete executed copy of the Contango Transaction Agreement.

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7.3Secretary’s Certificate.  The Administrative Agent shall have received a certificate of an Authorized Officer of each Contango Credit Party, attaching (a) a copy of the resolutions, in form and substance reasonably satisfactory to the Administrative Agent, of the board of directors or managers of such Contango Credit Party (or a duly authorized committee thereof) authorizing the execution, delivery and performance of the Credit Documents (and any agreements relating thereto) to which it is a party, (b) true and complete copies of each of the organizational documents of such Contango Credit Party, (c) certifications as to the incumbency and specimen signature of each officer of such Contango Credit Party executing any Credit Document and (d) certificates of the appropriate State agencies (or other customary evidence) with respect to the existence, qualification and good standing (as applicable in each such jurisdiction) of such Contango Credit Party in each jurisdiction where such Contango Credit Party is organized.
7.4Joinder Documentation.  The Administrative Agent shall have received (a) from each Contango Credit Party counterparts of (i) an Assumption Agreement (as such term is defined in the Guarantee), (ii) a supplement to the Security Agreement, substantially in the form of Exhibit 1 to the Security Agreement, (iii) a supplement to the Pledge Agreement, substantially in the form of Annex A to the Pledge Agreement and (iv) an Intercompany Note Joinder, substantially in the form of Annex I to the Intercompany Note, in each case signed on behalf of such Contango Credit Party and (b) from the Borrower counterparts of a supplement to the Pledge Agreement, substantially in the form of Annex A to the Pledge Agreement, signed on behalf of the Borrower.  
7.5Legal Opinions. The Administrative Agent shall have received the executed legal opinions of Kirkland & Ellis LLP, counsel to the Contango Credit Parties, in each case in form and substance reasonably satisfactory to the Administrative Agent.
7.6Payoff of Contango Credit Facility. The Administrative Agent shall have received evidence, in form and substance reasonably satisfactory to the Administrative Agent, that all outstanding indebtedness (other than with respect to contingent obligations not then due and payable) of Contango and its subsidiaries under that certain Credit Agreement, dated as of September 17, 2019, by and among Contango, as borrower, JPMorgan Chase Bank, N.A., as administrative agent, and the lenders party thereto, shall have been, or substantially concurrently with the First Amendment Effective Date, will be, repaid in full, all commitments in respect thereof have been terminated, and all security and guarantees in respect thereof discharged and released.  
7.7Releases. The Administrative Agent shall have received (a) evidence reasonably satisfactory to it that all Liens on the Contango Properties (provided that Permitted Liens may exist) have been released or terminated, subject only to the filing of applicable terminations, releases or assignments and (b) duly executed recordable releases and terminations reasonably acceptable to the Administrative Agent with respect thereto.
7.8KYC.  The Administrative Agent and Lenders shall have received, and be reasonably satisfied in form and substance with all documentation and other information about the Contango Credit Parties as shall have been reasonably requested in writing by the Administrative Agent and Lenders at least five days prior to the First Amendment Effective Date in respect of applicable “know your customer” rules and anti-money laundering laws and regulations, including, without limitation, the Patriot Act.
7.9No Default.  No Default or Event of Default shall have occurred and be continuing as of the First Amendment Effective Date.
The Administrative Agent is hereby authorized and directed to declare Section 6 of this First Amendment to be effective (and the First Amendment Effective Date shall occur) when it has received documents confirming or certifying, to the satisfaction of the Administrative Agent, 

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compliance with the conditions set forth in this Section 7 or the waiver of such conditions as permitted in Section 13.1 of the Credit Agreement.  Such declaration shall be final, conclusive and binding upon all parties to the Credit Agreement for all purposes. For purposes of determining compliance with the conditions specified in this Section 7, each Lender that has signed this Amendment shall be deemed to have consented to, approved or accepted, or to be satisfied with, each document or other matter required thereunder to be consented to or approved by or acceptable or satisfactory to such Lender.  Notwithstanding anything to the contrary contained herein, if the First Amendment Effective Date does not occur prior to December 1, 2021, then none of the conditions contained in this Section 7 shall be deemed to be satisfied, and the First Amendment Effective Date shall not occur (and for the avoidance of doubt, Section 6 of this First Amendment shall be of no force or effect).
Section 8.Post-First Amendment Effective Date Covenants
8.1Mortgages.  Within 15 days (or such longer period as the Administrative Agent may agree) of the First Amendment Effective Date, the Administrative Agent shall have received duly executed and notarized Mortgages or supplements to existing Mortgages in form reasonably satisfactory to the Administrative Agent, to the extent necessary to satisfy the Collateral Coverage Minimum (based upon the PV-9 of the total Proved Reserves evaluated in the First Amendment Reserve Reports (on a combined basis)).  In connection therewith, the Administrative Agent shall have received the executed legal opinions of local counsel to the Contango Credit Parties in the States of Louisiana, Montana and Oklahoma, in each case in form and substance reasonably satisfactory to the Administrative Agent.
8.2Title.  Within 15 days (or such longer period as the Administrative Agent may agree) of the First Amendment Effective Date, the Administrative Agent shall have received title information reasonably satisfactory to the Administrative Agent setting forth the status of title to at least 85% of the PV-9 of the total Proved Reserves evaluated in the First Amendment Reserve Reports (on a combined basis).
8.3Certain Collateral.  Within 15 days (or such longer period as the Administrative Agent may agree) of the First Amendment Effective Date, the Collateral Agent shall have received all certificates, if any, representing such securities pledged under the Pledge Agreement in connection with the acquisition of the Contango Credit Parties, accompanied by instruments of transfer and/or undated powers endorsed in blank.
Section 9.Miscellaneous.
9.1Confirmation.  The provisions of the Credit Agreement, as amended by this First Amendment, shall remain in full force and effect following the First Amendment Effective Date.
9.2Ratification and Affirmation; Representations and Warranties.  The Borrower hereby: (a) acknowledges the terms of this First Amendment; (b) ratifies and affirms its obligations under, and acknowledges its continued liability under, each Credit Document to which it is a party and agrees that each such Credit Document remains in full force and effect as expressly amended hereby; (c) agrees that from and after the date hereof, each reference to the Credit Agreement in the other Credit Documents shall be deemed to be a reference to the Credit Agreement, as amended by this First Amendment; and (d) represents and warrants to the Lenders that as of the date hereof, after giving effect to the terms of this First Amendment:  (i) the representations and warranties set forth in each Credit Document to which it is a party are true and correct in all material respects (except where such representations and warranties expressly relate to an earlier date, in which case such representations and warranties shall have been true and correct in all material respects as of such earlier date), provided that such representations shall be true and correct in all respects to the extent already qualified by materiality, and (ii) no Default or Event of Default has occurred and is continuing.

Page 10
			
	

9.3Counterparts.  This First Amendment 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.  Each party hereto agrees that any Electronic Signature or execution in the form of an Electronic Record shall be valid and binding on itself and each of the other parties hereto to the same extent as a manual, original signature.
9.4No Oral Agreement.  This First Amendment and the other Credit Documents represent the agreement of the Borrower, the Guarantors, the Collateral Agent, the Administrative Agent and the Lenders with respect to the subject matter hereof and thereof, and there are no promises, undertakings, representations or warranties by the Borrower, the Guarantors, any Agent nor any Lender relative to the subject matter hereof not expressly set forth or referred to herein or in the other Credit Documents.
9.5GOVERNING LAW.  THIS FIRST AMENDMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.
9.6Payment of Expenses.  In accordance with and to the extent required by Section 13.5, the Borrower agrees to pay or reimburse the Administrative Agent for all of its reasonable and documented out-of-pocket costs and expenses incurred in connection with this First Amendment, any other documents prepared in connection herewith and the transactions contemplated hereby, including, without limitation, the reasonable and documented fees, charges and disbursements of counsel to the Administrative Agent.
9.7Severability.  Any provision of this First 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.
9.8Successors and Assigns.  This First Amendment shall be binding upon and inure to the benefit of the parties hereto and their respective successors and permitted assigns.
9.9Credit Document.  This First Amendment is a “Credit Document” as defined and described in the Credit Agreement, and all of the terms and provisions of the Credit Agreement relating to Credit Documents shall apply hereto.
[Signature Pages Follow]

Page 11
			
	

IN WITNESS WHEREOF, the parties hereto have caused this First Amendment to be duly executed.

									
	BORROWER:		INDEPENDENCE ENERGY FINANCE LLC

			

By:      /s/ Brandi Kendall    
Name:  Brandi Kendall
Title:    Chief Financial Officer

	GUARANTORS:		

						
	INDEPENDENCE ENERGY HOLDING LLC
INDEPENDENCE MINERALS HOLDINGS LLC
IE BUFFALO MINERALS LLC

	
	By:	/s/ Brandi Kendall
	Name: Brandi Kendall
	Title: Vice President

						
	INDEPENDENCE UPSTREAM HOLDINGS L.P.

By: Independence Upstream Holdings GP LLC

	
	
	By:	/s/ Brandi Kendall
	Name: Brandi Kendall
	Title: Authorized Person

						
	COLT ADMIRAL A HOLDING L.P.
TITAN ENERGY HOLDINGS L.P.

By: Colt Admiral A Holding GP LLC

	
	
	By:	/s/ Brandi Kendall
	Name: Brandi Kendall
	Title: Authorized Person

Signature Page to Independence Energy Finance LLC First Amendment to Credit Agreement

						
	PALO VERDE HOLDINGS GP LLC
INDEPENDENCE UPSTREAM HOLDINGS GP LLC
COLT ADMIRAL A HOLDING GP LLC

	
	By:	/s/ Brandi Kendall
	Name: Brandi Kendall
	Title: Authorized Person

									
	VENADO EF C-I HOLDINGS L.P.

By: Venado EF Holdings GP LLC

	
	
	By:	/s/ Brandi Kendall
	Name: Brandi Kendall	
	Title: Authorized Person	

									
	PALO VERDE C-I HOLDINGS L.P.

By: Palo Verde Holdings GP LLC

	
	
	By:	/s/ Brandi Kendall
	Name: Brandi Kendall	
	Title: Authorized Person	

						
	BRIDGE ENERGY LLC
BRIDGE ENERGY HOLDINGS LLC

	
	By:	/s/ Brandi Kendall
	Name: Brandi Kendall
	Title: Authorized Person

Signature Page to Independence Energy Finance LLC First Amendment to Credit Agreement

						
	VENADO OIL & GAS, LLC
SPRINGFIELD GS HOLDINGS LLC
VENADO EFA GP LLC
VOG PALO VERDE GP LLC
VENADO MARKETING, LLC

	
	By:	/s/ Brandi Kendall
	Name: Brandi Kendall
	Title: Authorized Person

									
	VENADO EFA HOLDINGS LLC
VENADO PARTNERS, LLC
VENADO OG, LLC

By: Venado Oil & Gas, LLC

	
	
	By:	/s/ Brandi Kendall
	Name: Brandi Kendall	
	Title: Authorized Person	

									
	VENADO EF L.P.

By: Venado EF GP LLC

	
	
	By:	/s/ Brandi Kendall
	Name: Brandi Kendall	
	Title: Authorized Person	

									
	PALO VERDE AGGREGATOR L.P.

By: Venado EFA GP LLC

	
	
	By:	/s/ Brandi Kendall
	Name: Brandi Kendall	
	Title: Authorized Person	

Signature Page to Independence Energy Finance LLC First Amendment to Credit Agreement

									
	VOG PALO VERDE LP

By: VOG Palo Verde GP LLC

	
	
	By:	/s/ Brandi Kendall
	Name: Brandi Kendall	
	Title: Authorized Person	

									
	VENADO EF GP LLC

By: Venado EF Aggregator L.P.

	
	
	By:	/s/ Brandi Kendall
	Name: Brandi Kendall	
	Title: Authorized Person	

									
	VENADO EF AGGREGATOR L.P.

By: Venado EFA GP LLC

	
	
	By:	/s/ Brandi Kendall
	Name: Brandi Kendall	
	Title: Authorized Person	

Signature Page to Independence Energy Finance LLC First Amendment to Credit Agreement

						
	TE NEWARK AGENT CORP.

	
	By:	/s/ Jason Carss
	Name: Jason Carss
	Title: Assistant Secretary

Signature Page to Independence Energy Finance LLC First Amendment to Credit Agreement

						
	EIGF TE GP RESOURCE INVESTORS GP LLC
RENEE HOLDING GP LLC
EIGF MINERALS GP LLC
INDEPENDENCE MINERALS GP LLC
IE BUFFALO HOLDINGS LLC
VINE ROYALTY GP LLC
EIGF TE RESOURCE HOLDINGS GP I LLC
EIGF TE GP RESOURCE HOLDINGS GP I LLC
TE RENEE AGENT CORP.
RENEE C-I HOLDING AGENT CORP.
RENEE ACQUISITION LLC
KNR RENEE AGENT CORP
KNR RESOURCE INVESTORS GP LLC
KNR RESOURCE HOLDINGS GP I LLC
EIGF TE GP NEWARK ACQUISITION GP I LLC
NEWARK C-I HOLDING GP I LLC
NEWARK ACQUISITION GP I LLC

	
	By:	/s/ David Rockecharlie
	Name: David Rockecharlie
	Title: Vice President

						
	NEWARK HOLDING AGENT CORP.

	
	By:	/s/ David Rockecharlie
	Name: David Rockecharlie
	Title: Chief Executive Officer

Signature Page to Independence Energy Finance LLC First Amendment to Credit Agreement

						
	EIGF TE GP RESOURCE INVESTORS L.P.

By: EIGF TE GP Resource Investors GP LLC

	
	
	By:	/s/ David Rockecharlie
	Name: David Rockecharlie
	Title: Vice President
	

EIGF TE GP NEWARK INVESTORS L.P.

By: EIGF TE GP Resource Investors GP LLC

	
	
	By:	/s/ David Rockecharlie
	Name: David Rockecharlie
	Title: Vice President

						
	NEWARK C-I HOLDING L.P.

By: Newark C-I Holding GP I LLC

	
	
	By:	/s/ David Rockecharlie
	Name: David Rockecharlie
	Title: Vice President

						
	EIGF MINERALS L.P.

By: EIGF Minerals GP LLC

	
	
	By:	/s/ David Rockecharlie
	Name: David Rockecharlie
	Title: Vice President

Signature Page to Independence Energy Finance LLC First Amendment to Credit Agreement

						
	INDEPENDENCE MINERALS L.P.
DMA ROYALTY INVESTMENTS L.P.
FALCON HOLDING L.P.
MINERAL ACQUISITION COMPANY I, LP

By: Independence Minerals GP LLC

	
	
	By:	/s/ David Rockecharlie
	Name: David Rockecharlie
	Title: Vice President

Signature Page to Independence Energy Finance LLC First Amendment to Credit Agreement

						
	VINE ROYALTY L.P.

By: Vine Royalty GP LLC 

	
	
	By:	/s/ David Rockecharlie
	Name: David Rockecharlie
	Title: Vice President

						
	EIGF TE RESOURCE HOLDINGS I L.P.

By: EIGF TE Resource Holdings GP I LLC

	
	
	By:	/s/ David Rockecharlie
	Name: David Rockecharlie
	Title: Vice President

						
	EIGF TE GP RESOURCE HOLDINGS I L.P.

By: EIGF TE GP Resource Holdings GP I LLC

	
	
	By:	/s/ David Rockecharlie
	Name: David Rockecharlie
	Title: Vice President

						
	KNR RESOURCE INVESTORS L.P.

By: KNR Resource Investors GP LLC

	
	
	By:	/s/ David Rockecharlie
	Name: David Rockecharlie
	Title: Vice President

Signature Page to Independence Energy Finance LLC First Amendment to Credit Agreement

						
	RENEE C-I HOLDING L.P.

By: Renee Holding GP LLC

	
	
	By:	/s/ David Rockecharlie
	Name: David Rockecharlie
	Title: Vice President

									
	KNR RESOURCE HOLDINGS I L.P.

By: KNR Resource Holdings GP I LLC

	
	
	By:	/s/ David Rockecharlie
	Name: David Rockecharlie	
	Title: Vice President	

									
	EIGF TE NEWARK HOLDINGS I L.P.

By: EIGF TE Resource Holdings GP I LLC

	
	
	By:	/s/ David Rockecharlie
	Name: David Rockecharlie	
	Title: Vice President	

									
	EIGF TE GP NEWARK ACQUISITION I L.P.

By: EIGF TE GP Newark Acquisition GP I LLC

	
	
	By:	/s/ David Rockecharlie
	Name: David Rockecharlie	
	Title: Vice President	

Signature Page to Independence Energy Finance LLC First Amendment to Credit Agreement

									
	NEWARK ACQUISITION I L.P.

By: Newark Acquisition GP I LLC

	
	
	By:	/s/ David Rockecharlie
	Name: David Rockecharlie	
	Title: Vice President	

Signature Page to Independence Energy Finance LLC First Amendment to Credit Agreement

						
	INDEPENDENCE UPSTREAM L.P.

By: Independence Upstream GP LLC

	
	
	By:	/s/ Stephen Jordan
	Name: Stephen Jordan
	Title: Vice President

						
	INDEPENDENCE UPSTREAM GP LLC

	
	By:	/s/ Stephen Jordan
	Name: Stephen Jordan
	Title: Vice President

Signature Page to Independence Energy Finance LLC First Amendment to Credit Agreement

									
	ADMINISTRATIVE AGENT, COLLATERAL AGENT,
LETTER OF CREDIT ISSUER and LENDER:
		WELLS FARGO BANK, NATIONAL ASSOCIATION, as Administrative Agent, Collateral Agent, a Letter of Credit Issuer and Lender

By:     /s/ Jay Buckman        
Name:    Jay Buckman
Title:   Director

                    
Signature Page to Independence Energy Finance LLC First Amendment to Credit Agreement

									
	LETTER OF CREDIT ISSUER and LENDER:		JPMORGAN CHASE BANK, N.A., as a Letter of Credit Issuer and Lender

By:     /s/ Michael Kamauf            
Name:    Michael Kamauf
Title: Authorized Officer

Signature Page to Independence Energy Finance LLC First Amendment to Credit Agreement

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

By:     /s/ Kimberly Miller            
Name:    Kimberly Miller
Title: Director

Signature Page to Independence Energy Finance LLC First Amendment to Credit Agreement

									
	LENDER:		FIFTH THIRD BANK, NATIONAL ASSOCIATION, as a Lender

By:     /s/ Thomas Kleiderer            
Name:    Thomas Kleiderer
Title: Managing Director

Signature Page to Independence Energy Finance LLC First Amendment to Credit Agreement

									
	LENDER:		KEYBANK NATIONAL ASSOCIATION, as a Lender

By:     /s/ George E. McKean            
Name:    George E. McKean
Title: Senior Vice President

Signature Page to Independence Energy Finance LLC First Amendment to Credit Agreement

									
	LENDER:		MIZUHO BANK, LTD., as a Lender

By:     /s/ Edward Sacks            
Name:    Edward Sacks
Title: Authorized Signatory

Signature Page to Independence Energy Finance LLC First Amendment to Credit Agreement

									
	LENDER:		ROYAL BANK OF CANADA, as a Lender

By:     /s/ Kristan Spivey            
Name:    Kristan Spivey
Title: Authorized Signatory

Signature Page to Independence Energy Finance LLC First Amendment to Credit Agreement

									
	LENDER:		TRUIST BANK, as a Lender

By:     /s/ James Giordano            
Name:    James Giordano
Title: Managing Director

Signature Page to Independence Energy Finance LLC First Amendment to Credit Agreement

									
	LENDER:		MORGAN STANLEY SENIOR FUNDING, INC., as a Lender

By:     /s/ Rikin Pandya            
Name:    Rikin Pandya
Title: Vice President

Signature Page to Independence Energy Finance LLC First Amendment to Credit AgreementDocument

Exhibit 10.52

                                

February 18, 2022

Mr. Paulo Pena

Dear Paulo:
We are very pleased to extend an offer of employment to you for the position of President and Chief Executive Officer of Carrols Restaurant Group, Inc. (together with its direct and indirect subsidiaries, the “Company”). This offer of employment is conditioned on the satisfactory completion of certain requirements, as more fully explained in this letter. 

Position
The position is that of President and Chief Executive Officer and reports to the Board of Directors (the “Board”) of the Company.  

Start Date
It is anticipated that you will start on April 1, 2022 (the “Start Date”).

Base Salary/Merit Increases
Your annual base salary will be $600,000. This will be paid in accordance with the Company's monthly payroll practices for executives at a rate of $50,000 a month, less applicable taxes and withholdings. You will be eligible for annual merit increases in your base salary as determined by the Compensation Committee of the Board in its sole discretion.  

Annual Bonus
You will participate in the Executive Bonus Plan. Your target bonus percent is 100% of your annual base salary. A copy of the 2022 Executive Bonus Plan is being provided to you with this offer letter.

Restricted Stock Awards
As a material inducement for your employment with the Company, on April 1, 2022, you will receive a grant of 100,000 shares of the Company’s restricted stock (the “Non-Performance Share Grant”). One-half of the shares comprising the Non-Performance Share Grant will vest on April 1, 2023, with the remaining shares vesting on April 1, 2024. 
On April 1, 2022, you will also receive a grant of 600,000 shares of the Company’s restricted stock (the “Performance Share Grant”) which will vest on April 1, 2025, conditioned upon the achievement of the following two performance metrics:

•Organic Adjusted EBITDA Growth – The Company achieving compounded organic adjusted EBITDA growth of at least ten percent (10%) per annum over the three-year period (the “Organic EBITDA Growth Metric”), it being understood that the achievement of the Organic EBITDA Growth Metric will be measured at the end of the three-year period and not on an annual basis; and 

1

•Share Price Growth – In the event that the Organic EBITDA Growth Metric is achieved, the following number of shares of the Performance Share Grant will vest based on the Company’s average closing stock price for the sixty (60) trading days prior to April 1, 2025 exceeding the following thresholds:

						
	Average Closing Stock Price    
	Percentage of Performance Share Grant Vesting

	> $3/share
	34 percent
	> $5/share
	67 percent
	> $8/share
	100 percent

                       
For example, if the Organic EBITDA Growth Metric is achieved and the Company’s average closing stock price for the sixty (60) trading days prior to April 1, 2025 was $6/share, 67 percent, or 402,000 shares, of the Performance Share Grant would vest.  

During your employment with the Company, additional restricted stock grants may also be granted to you as determined by the Compensation Committee of the Board in its sole discretion. 

Deferred Compensation Plan
Effective April 1, 2022, you will be eligible to participate in the Carrols Corporation Deferred Compensation Plan (the “Deferred Compensation Plan”) subject to the requirements of the plan. A copy of the Deferred Compensation Plan will be provided to you.  

Benefits
You and your dependents (as defined by plan documents) will be eligible to participate in the Company’s Medical, Dental, Vision, Flexible Spending Account, Health Savings Account and Life Insurance plans. All benefits are per the plan documents. Your participation (if you elect) in these benefits will be effective April 1, 2022, provided you enroll on the Benefits Portal. You will also be eligible for the Company’s Short-Term and Long-Term Disability Plans. This benefit, if elected, will be effective July 1, 2022. Your share of the cost for the benefits you elect will be deducted from your monthly paycheck.

Vacation/Floating Days
Commencing with your employment, you will be eligible for three (3) weeks of vacation each year. At the end of your tenth year of employment, you will then be eligible for four (4) weeks of vacation. In the event of your termination, payment for unused vacation will be based on the Company’s vacation policy in effect at that time. You are also eligible for two (2) floating days each year. 

Expense Reimbursement
You will be reimbursed for all business expenses incurred in accordance with Company policy including mileage reimbursable for use of your personal vehicle on Company business.

2

Miscellaneous
The Company will provide you with a $250,000 stipend (the “Stipend”) in lieu of any moving, housing, bonus (or stock) relinquishment or other similar cost, expense or compensation loss you may incur. One-half of the Stipend will be paid to you within thirty (30) days of the Start Date, with the remainder being paid on or about October 1, 2022, less applicable taxes and withholdings. In the event that you voluntarily terminate your employment with the Company on or before April 1, 2023, you will be required to reimburse the Company the entire amount of the Stipend, and if you voluntarily terminate your employment with the Company after April 1, 2023 but on or before April 1, 2024, you will be required to reimburse the Company one-half of the amount of the Stipend.

Mandatory Arbitration Program (MAP)
All employees are subject to our Mandatory Arbitration Program and are required to execute an agreement providing for the resolution of disputes pursuant to binding arbitration (the “MAP Agreement”) as a condition to employment. A copy of the MAP Agreement is attached as Exhibit A hereto and made a part of these terms.  

Change of Control and Severance Agreement
The Company has agreed to provide you with a change of control and severance agreement in form and content as set forth on Exhibit B attached to and made a part of this offer letter (the “Change of Control and Severance Agreement”). The Change of Control and Severance Agreement will be executed by you and the Company after the contingencies set forth in this letter are satisfied on the Start Date. 

Governing Law and Dispute Resolution
This offer letter shall be governed by the laws of the State of New York, without regard to conflict of law principles.  Any dispute, claim, demand, or controversy arising out of or relating in any way whatsoever to this offer letter including, but not limited to, breach, termination, enforcement, interpretation or validity of this offer letter, or the requirement or applicability of this offer letter to arbitrate, shall be determined by binding arbitration before a single arbitrator administered by JAMS, a national arbitration association, and conducted under the then current JAMS Comprehensive Arbitration Rules and Procedures (the “JAMS Rules and Procedures”). To start the arbitration process, the party requesting arbitration must send a written request for arbitration and the filing fee to JAMS office serving the Syracuse, New York metropolitan region. A copy of the request must also be sent to the non-requesting party. The arbitrator will strictly apply the law of the State of New York as set forth in this offer letter and shall make a final decision all according to the JAMS Rules and Procedures. The arbitrator shall have no right to compel any party to breach any existing written agreement or obligation. The judgment rendered by the arbitrator may be entered in any court having jurisdiction thereof and shall be final upon the parties. Any arbitration proceedings shall be conducted exclusively within the State of New York at a location therein selected by JAMS in accordance with the JAMS Rules and Procedures. This clause shall not preclude the parties from seeking provisional remedies in aid of arbitration from the courts of the State of New York or the federal courts located within the State of New York. 

By signing this offer letter, you agree that you are represented by counsel, have carefully considered these dispute resolution procedures, believe them to be fair, and that to the extent the dispute resolution provisions are inconsistent with JAMS minimum standards, you will follow the terms of this offer letter and not the minimum standards. This agreement to follow the provisions of this offer letter rather than the minimum standards is severable from the balance of the dispute resolution provisions should either a Court or JAMS find it unenforceable.

3

Contingent Offer
This offer is contingent upon:
1.Verification of your right to work in the United States, as demonstrated by your completion of an I-9 form upon hire and your submission of acceptable documentation (as noted on the I-9 form) verifying your identity and work authorization within three days of your Start Date. 
2.Completion of reference checks satisfactory to the Company in its sole discretion.
3.Receipt of a background investigation satisfactory to the Company in its sole discretion.
4.Your execution of the MAP Agreement prior to commencing work. 
This offer will remain outstanding until the close of business on February 15, 2022 and, if accepted, may be withdrawn if any of the above conditions are not satisfied on or before April 1, 2022 unless the Company, in its sole discretion, elects in writing to waive any unsatisfied contingency. 

If you have any questions, feel free to call me at 315-424-0513 ext. 2318.  

Sincerely,

			
	/s/ Jerry DiGenova

Jerry DiGenova
Vice President, Human Resources
CARROLS RESTAURANT GROUP, INC.

cc:    J. Landaw, K. Dickter, Personnel file

4

			
	

THIS OFFER LETTER IS NOT INTENDED TO CONSTITUTE AN EMPLOYMENT CONTRACT OF ANY KIND AND DOES NOT GUARANTEE CONTINUED EMPLOYMENT WITH THE COMPANY. YOUR EMPLOYMENT WITH THE COMPANY IS CONDITIONED UPON THE SATISFACTION OR WAIVER OF ALL CONDITIONS CONTAINED IN THIS OFFER LETTER INCLUDING, BUT NOT LIMITED TO, THOSE CONTINGENCIES SET FORTH IN THE “CONTINGENT OFFER” PARAGRAPH ABOVE, AND THE LENGTH OF YOUR EMPLOYMENT WITH THE COMPANY WILL BE BASED ON YOUR WORK PERFORMANCE AND THE NEEDS OF THE COMPANY AS WELL AS YOUR OWN DESIRES.

Please indicate your acceptance of this offer letter by signing here:

			
	/s/ Paulo Pena
	        Paulo Pena

5

Exhibit A

AGREEMENT FOR THE RESOLUTION OF 
DISPUTES PURSUANT TO BINDING ARBITRATION

Arbitration is an alternative to litigation that provides employers and employees with an efficient way to resolve disputes. Arbitration is similar to litigation, but is conducted outside of the court system, using an arbitrator instead of a judge or jury to resolve a dispute. Carrols Corporation (“Carrols”) has established a mandatory arbitration program (the “Mandatory Arbitration Program” or “MAP”) in an effort to resolve disputes between Carrols and its employees in an efficient manner. Carrols pays for the arbitrator and the forum, but you are responsible for costs that you would otherwise incur going to court, such as filing fees and the fees of your own attorney.
Under this arbitration program, which is a required condition of your employment, Carrols and you agree that any dispute arising under or related to your employment or this Agreement, including questions of arbitrability, shall be resolved by arbitration before JAMS, an independent national arbitration association, in accordance with the employment arbitration rules of JAMS. Any arbitration award shall be final and binding upon the parties, and any court having jurisdiction may enter a judgment on the award. Disputes subject to this Agreement include any and all claims, controversies and disputes related to your employment, the terms of your employment, the termination of your employment, your compensation, the interpretation of your offer letter or any employment-related agreement, and claims relating to events occurring outside the scope of your employment but logically related to your employment (collectively, “Claims”). Carrols desires a fair process and the arbitration will meet the standards set by JAMS (the “Procedural Standards”) designed to ensure an employee a fair hearing, including the selection of an independent, neutral arbitrator who has no relationship to Carrols or its management.  
To start the arbitration process, Carrols or you may send a written request for arbitration and the filing fee to JAMS at 620 Eighth Avenue, 34th Floor, New York, New York 10018, or to any other JAMS location (which can be found at www.jamsadr.com or by calling JAMS at (800) 352-5267), by U.S. mail or reputable overnight delivery service. A copy of the request must also be sent to Legal Department, 968 James Street, Syracuse, New York 13217-6969 by U.S. mail, reputable overnight delivery service, or email. The only cost to you for filing is the JAMS filing fee, and Carrols will reimburse you 50% of any JAMS filing fee once you provide proof of payment to Carrols by any method identified in the previous sentence.
JAMS will select a location for the arbitration, according to its Procedural Standards, that will be convenient for you. An arbitrator will be selected and govern the process, ultimately issuing a final and binding arbitration award. 
6

As a part of the MAP, you agree to file one arbitration that includes all of your Claims and joins all known Claims. Further, you also agree that any action you bring shall be individually on your own behalf and that you expressly waive the right to bring a Claim on a class or collective basis. The arbitrator shall not have the authority to form a class or proceed on a collective basis. You also understand and agree that the parties reserve the right to go to court if they are faced with the risk of irreparable harm, such as the disclosure of confidential information. 
Under the MAP, Carrols and you agree to arbitrate any and all Claims that either party may have against the other party arising out of or relating to your employment with Carrols, directly or indirectly, including but not limited to Claims relating or referring in any manner, directly or indirectly, to: 
▪Title VII of the Civil Rights Act of 1964 and similar state statutes; 
▪Federal Age Discrimination Employment Act and similar state statutes; 
▪Whistleblower provisions of state or federal law or state or federal regulations; 
▪Personal or emotional injury to you resulting from your employment, including claims that you bring personally but are based on injuries to other family members; 
▪Federal Fair Labor Standards Act or similar state statutes; 
▪Family and Medical Leave Act or similar state statutes; 
▪Americans with Disabilities Act or similar state statutes; 
▪Physical, mental and emotional injuries you believe are attributable to Carrols under theories of product liability, tort law, defamation, invasion of privacy, strict liability, intentional wrongdoing, gross negligence, negligence, or respondeat superior; 
▪Actions or omissions of third parties you attribute to Carrols; 
▪Employee Retirement Income Security Act or similar state statutes;
▪Tort claims brought pursuant to actual or alleged exceptions to the exclusive remedy provisions of state workers compensation laws; 
▪Federal and state antitrust law; 
▪Issues regarding benefits, insurance, bonuses or wages;
▪Contracts between you and Carrols; 
▪Pensions;
▪Federal, state, local, or municipal regulations, ordinances, or orders; 
▪Any common law or statutory law issues relating to discrimination by sex, race, national origin, sexual orientation, family or marital status, disability, weight, dress, or religion; 
7

▪Wrongful retaliation of any type, including retaliation related to workers compensation laws or an employee injury benefit plan;
▪Scheduling;
▪Issues relating to collection of personal or biometric information;
▪Privacy claims relating to actual or alleged release of personal or financial information (data breaches); and
▪Claims that relate to your employment but that you contend are outside the scope of your employment, beyond your job responsibilities, or occurred away from your usual workplace.

The MAP does not apply to any claims not subject to arbitration as a matter of law, such as claims under the Sarbanes-Oxley Act of 2002, for unemployment insurance benefits, for workers’ compensation or an employee injury benefit plan.  
The MAP extends to Claims you have with Carrols Restaurant Group, Inc., Carrols LLC and any present or future direct or indirect parent company, subsidiary or other affiliate (collectively, “Affiliate”) of either company, as well as any Claims you have against Carrols’ and its Affiliates’ officers, directors, managers, employees, members, stockholders, owners, attorneys and agents. Nothing in this Agreement precludes you from participating in proceedings to adjudicate unfair labor practice charges before the National Labor Relations Board, from filing a claim with the Equal Employment Opportunity Commission or any state and local human rights agencies, or from participating in any federal, state or local government agency investigation or administrative charge. 

8

EMPLOYEE ACKNOWLEDGEMENT
By signing below, you acknowledge that you are agreeing to have Claims, as described above, decided in final and binding private arbitration and not in court, and that you are expressly waiving your right to a jury trial. You acknowledge that you have read and understand this Agreement; that you have had an opportunity to ask questions regarding this Agreement; and that any questions have been satisfactorily answered. You understand that this Agreement does not enlarge or expand your exclusive remedies under either workers compensation law or an employee injury benefit plan and that such claims are not covered by this clause. You also agree you have been told that JAMS’ rules for arbitration, JAMS’ minimum standards for fairness in employment arbitration, and other information about JAMS are available at www.jamsadr.com, by calling JAMS at (800) 352-5267, or upon request from a manager at the location where you work.

ACKNOWLEDGED AND AGREED TO:

Employee Signature: ________________________________________    Date: _________________

9

Exhibit “B”
Release 
WHEREAS, ________________ (the “Executive”) is a party to an Agreement dated as of __________, 20__ (the “Agreement”) by and among the Executive, CARROLS RESTAURANT GROUP, INC., a Delaware corporation (the “Company”), CARROLS HOLDCO INC., a Delaware corporation and a wholly-owned subsidiary of the Company (“Holdco”), CARROLS CORPORATION, a Delaware corporation and a wholly-owned subsidiary of the Holdco (“Carrols”), and CARROLS LLC, a Delaware limited liability company and a wholly-owned subsidiary of Carrols Corporation (“Carrols LLC”), requiring the Company to provide the Executive with severance payments and benefits following the termination of the Executive’s employment with the Company, Holdco, Carrols, Carrols LLC, and any subsidiary or affiliate of  the Company, and their respective successors and assigns (Company, Holdco, Carrols, Carrols LLC and any subsidiary or affiliate of each collectively the “Companies”) under certain circumstances; and
WHEREAS, the Executive’s employment with the Companies has terminated; and 
WHEREAS, it is a condition to the Company’s obligations under the Agreement that the Executive execute and deliver this Release to the Company.
NOW, THEREFORE, in consideration of the receipt by the Executive of the severance payments and benefits under the Agreement, which constitute a material inducement to enter into this Release, the Executive intending to be legally bound hereby agrees as follows:
1.    Subject to paragraph 2 of this Release, effective upon the expiration of the 7-day revocation period following execution hereof as provided below, the Executive irrevocably and unconditionally releases the Companies and their owners, stockholders, predecessors, successors, assigns, affiliates, control persons, agents, directors, officers, employees, representatives, divisions and subdivisions (collectively, the “Related Persons”) from any and all causes of action, charges, complaints, liabilities, obligations, promises, agreements, controversies and claims (a) arising out of the Executive’s employment with any of the Companies and the conclusion thereof, including, without limitation, any federal, state, local or other statutes, orders, laws, ordinances, regulations or the like that relate to the employment relationship and/or specifically that prohibit discrimination based upon age, race, religion, sex, national origin, disability, sexual orientation or any other unlawful bases, including, without limitation, as amended, Title VII of the Civil Rights Act of 1964, the Civil Rights Act of 1991, the Age Discrimination in Employment Act of 1967, the Civil Rights Acts of 1866 and 1871, the Americans With Disabilities Act of 1990, the New York City and State Human Rights Laws, and any applicable rules and regulations promulgated pursuant to or concerning any of the foregoing statutes; (b) for tort, tortious or harassing conduct, infliction of emotional distress, interference with contract, fraud, libel or slander; and (c) for breach of contract or for damages, including, without limitation, punitive or compensatory damages or for attorneys’ fees, expenses, costs, salary, severance pay, vacation, injunctive or equitable relief, whether, known or unknown, suspected or unsuspected, foreseen or unforeseen, matured or unmatured, which, from the beginning of the world up to and including the date hereof, exists, have existed, or may arise, which the Executive, or any of his heirs, executors, administrators, successors and assigns ever had, now has or at any time hereafter may have, own or hold against any of the Companies and/or any Related Person.  

2.    Notwithstanding anything contained herein to the contrary, the Executive is not releasing the Companies from any of the Companies’ obligations (a) under the Agreement or any employee benefit plan of any of the Companies, (b) to provide the Executive with insurance coverage defense and/or indemnification as an officer or director of any of the Companies, if applicable to Executive, to the extent generally made available at the date of termination to the Companies’ officers and directors in respect of facts and circumstances existing or arising on or prior to the date hereof, (c) in respect of the Executive’s rights under the Parent’s 2016 Stock Incentive Plan, as amended (or any subsequent stock incentive plan of Parent), or (d) in respect of the Executive’s rights under any equity awards agreements with any of the Companies pursuant to the Parent's 2016 Stock Incentive Plan, as amended (or any subsequent stock incentive plan of Parent).
3.    The Executive specifically acknowledges and agrees that: (a) the Executive has  have read and understands this Release and signs it voluntarily and without coercion; (b) the Executive has been given an opportunity of twenty-one (21) days to consider this Release; (c) the Executive has been encouraged by the Company to discuss fully the terms of this Release with legal counsel of the Executive’s own choosing; and (d) for a period of seven (7) days following the Executive’s signing of this Release, the Executive shall have the right to revoke the waiver of claims arising under the Age Discrimination in Employment Act.  
4.    If the Executive elects to revoke this Release within this seven-day period, the Executive must inform the Company by delivering a written notice of revocation to the Chief Executive Officer of the Company at 968 James Street, Syracuse, New York 13203 no later than 11:59 p.m. on the seventh calendar day after the date the Executive signs this Release.  The Executive understands that, if the Executive elects to exercise this revocation right, this Release shall be voided in its entirety at the election of the Company and the Company shall be relieved of all obligations to provide the severance payments and benefits which are contingent on the execution of this Release.  
5.    The Executive acknowledges that he has had at least twenty-one days to consider the waiver of his rights under the Age Discrimination in Employment Act (the "ADEA").  If the Executive does not revoke this Release occurs under paragraph 4 of this Release, the Executive understands that the Executive’s waiver of rights under the ADEA shall become effective seven days from the date the Executive executes this Release.
IN WITNESS WHEREOF, the undersigned has executed this Release on the ___ day of ______________, 20__.    

                        						
		PAULO PENA

State of      ______________________) 
County of     ______________________) ss.: 
 
    On the _____ day of ________________ in the year 20____ before me, the undersigned, personally appeared __________________________________, personally known to me or proved to me on the basis of satisfactory evidence to be the individual(s) whose name(s) is (are) subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their capacity(ies), and that by his/her/their signature(s) on the instrument, the individual(s), or the person upon behalf of which the individual(s) acted, executed the instrument. 

_________________________________________________
Notary Public

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