Document:

Exhibit 10.1

 

Moleculin Biotech, Inc.

5300 Memorial Drive, Suite 950

Houston, Texas 77007

 

 

 

Ladies and Gentlemen:

 

The undersigned (the “Investor”)
hereby confirms its agreement with Moleculin Biotech, Inc., a Delaware corporation (the “Company”) as follows:

 

1.       This
Subscription Agreement, including the Terms and Conditions For Purchase of Securities attached hereto as Annex I (collectively,
(this “Agreement”) is made as of the date set forth below between the Company and the Investor.

 

2.       The
Company has authorized the sale and issuance to certain investors of up to an aggregate of 9,375,000 Units (the “Units”)
consisting of (i) 9,375,000 authorized but unissued shares of common stock, par value $0.001 per share (the “Common Stock”),
of the Company (the “Shares”) and (ii) Warrants (the “Warrants”)
to purchase an aggregate of up to 4,687,500 authorized but unissued shares of Common Stock (the “Warrant
Shares”). Each Unit will consist of one Share and 0.5 of a Warrant. The Shares, the Warrants and the Warrant Shares are
collectively referred to as the “Securities.” The Units will not be separately issued or certificated and the
Shares and Warrants shall be immediately separable and transferable upon issuance. The form of the Warrant is attached hereto as
Exhibit A.

 

3.       The
offering and sale of the Securities (the “Offering”) are being made pursuant to (1) an effective Registration
Statement on Form S-3, File No. 333-219434 (the “Registration Statement”) filed by the Company with the Securities
and Exchange Commission (the “Commission”) (including the prospectus contained therein (the “Base Prospectus”),
(2) if applicable, certain “free writing prospectuses” (as that term is defined in Rule 405 under the Securities
Act of 1933, as amended (the “Securities Act”)), that have been or will be filed with the Commission and delivered
to the Investor on or prior to the date hereof (the “Issuer Free Writing Prospectus”), containing certain supplemental
information regarding the Securities, the terms of the Offering and the Company and (3) a Prospectus Supplement (the “Prospectus
Supplement” and together with the Base Prospectus, the “Prospectus”) containing certain supplemental
information regarding the Shares and Warrants and terms of the Offering that has been or will be filed with the Commission
and delivered to the Investor (or made available to the Investor by the filing by the Company of an electronic version thereof
with the Commission). 

 

4.       The
Company and the Investor agree that the Investor will purchase from the Company and the Company will issue and sell to the Investor
the Shares and Warrants set forth below for the aggregate Purchase Price set forth below. The Shares and Warrants shall be purchased
pursuant to the Terms and Conditions for Purchase of Securities attached hereto as Annex I and incorporated herein
by this reference as if fully set forth herein. The Investor acknowledges that the Offering is not being underwritten by the
placement agent (the “Placement Agent”) named in the Prospectus and that there is no minimum offering amount.

 

     

     

    

 

5.       The
manner of settlement of the Shares and Warrants purchased by the Investor shall be as follows (check one):

 

a.       The Shares
shall be settled as follows:

 

Delivery versus
payment (“DVP”) through DTC (i.e., on the Closing Date, the Company shall issue such Shares registered in the
Investor’s name and address as set forth below and released by the Transfer Agent directly to the account(s) at Oppenheimer
 & Co. Inc. (the “Placement Agent”) identified by the Investor; upon receipt of such Shares, the Placement
Agent shall promptly electronically deliver such Shares to the Investor, and simultaneously therewith payment shall be made by
the Placement Agent by wire transfer to the Company). NO LATER THAN ONE (1) BUSINESS DAY AFTER THE EXECUTION OF THIS AGREEMENT
BY THE INVESTOR AND THE COMPANY, THE INVESTOR SHALL:

 

		(I)	NOTIFY THE PLACEMENT AGENT OF THE ACCOUNT OR ACCOUNTS AT THE PLACEMENT
AGENT TO BE CREDITED WITH THE SHARES BEING PURCHASED BY SUCH INVESTOR, AND

 

		(II)	CONFIRM THAT THE ACCOUNT OR ACCOUNTS AT THE PLACEMENT AGENT TO BE
CREDITED WITH THE SHARES BEING PURCHASED BY THE INVESTOR HAVE A MINIMUM BALANCE EQUAL TO THE AGGREGATE PURCHASE PRICE FOR THE SECURITIES
BEING PURCHASED BY THE INVESTOR.

 

IT IS THE INVESTOR’S RESPONSIBILITY
TO (A) MAKE THE NECESSARY WIRE TRANSFER OR CONFIRM THE PROPER ACCOUNT BALANCE IN A TIMELY MANNER AND (B) ARRANGE FOR SETTLEMENT
BY WAY OF DVP IN A TIMELY MANNER. IF THE INVESTOR DOES NOT DELIVER THE AGGREGATE PURCHASE PRICE FOR THE SHARES AND WARRANTS OR
DOES NOT MAKE PROPER ARRANGEMENTS FOR SETTLEMENT IN A TIMELY MANNER, THE SHARES AND WARRANTS MAY NOT BE DELIVERED AT CLOSING TO
THE INVESTOR OR THE INVESTOR MAY BE EXCLUDED FROM THE CLOSING ALTOGETHER.

 

6.       The
executed Warrants shall be delivered to the Investor by mail, registered in such names and sent to such address as specified by
the Investor below.

 

7.       The
Investor represents that, except as set forth below, (a) it has had no position, office or other material relationship within the
past three years with the Company or persons known to it to be affiliates of the Company, (b) it is not a member of the Financial
Industry Regulatory Authority, Inc. (“FINRA”) or a a person “assocuated with a member” (as such
term is defined under FINRA’s By-laws) as of the Closing, and (c) neither the Investor nor any group of Investors (as
identified in a public filing made with the Commission) of which the Investor is a part in connection with the Offering, acquired,
or obtained the right to acquire, 20% or more of the Common Stock (or securities convertible into or exercisable for Common Stock)
or the voting power of the Company on a post-transaction basis. Exceptions: 

 

____________________________________________________________________

 

     

     

    

 

(If no exceptions,
write “none.” If left blank, response will be deemed to be “none.”)

 

8.       The
Investor represents that it has received (or otherwise had made available to it by the filing by the Company of an electronic version
thereof with the Commission) the Base Prospectus, dated August 11, 2017, which is a part of the Company’s Registration Statement,
the documents incorporated by reference therein and any free writing prospectus (collectively, the “Disclosure Package”),
prior to or in connection with the receipt of this Agreement. The Investor acknowledges that, prior to the delivery of this
Agreement to the Company, the Investor will receive certain additional information regarding the Offering, including pricing information
(the “Offering Information”). Such information may be provided to the Investor by any means permitted
under the Securities Act, including the Prospectus Supplement, a free writing prospectus and oral communications.

 

9.       No
offer by the Investor to buy Shares and Warrants will be accepted and no part of the Purchase Price will be delivered to the Company
until the Investor has received the Offering Information and the Company has accepted such offer by countersigning a copy of this
Agreement, and any such offer may be withdrawn or revoked, without obligation or commitment of any kind, at any time prior to the
Company (or the Placement Agent on behalf of the Company) sending (orally, in writing or by electronic mail) notice of its acceptance
of such offer. An indication of interest will involve no obligation or commitment of any kind until the Investor has been
delivered the Offering Information and this Agreement is accepted and countersigned by or on behalf of the Company.

 

10.       The
Company acknowledges that the only material, non-public information relating to the Company or its subsidiaries that the Company,
its employees or agents has provided to the Investor in connection with the Offering prior to the date hereof is the existence
and terms of the Offering.

 

     

     

    

 

Number of Units, Consisting
of Shares and Warrants:                                                  

 

Purchase Price per Unit: $1.60

 

Aggregate Purchase Price: $_____________________

 

Please confirm that the foregoing correctly
sets forth the agreement between us by signing in the space provided below for that purpose.

 

 

	 	Dated as of:  April 23, 2019
	 	 
	 	 
	 	 	 
	 	INVESTOR	 	 
	 	 	 	 
	 	By:	 	 
	 	Print Name:	 	 
	 	Title:	 	 
	 	Address:	 	 
	 	 	 	 

 

     

     

    

 

Agreed and Accepted

this 23rd day of April 2019:

 

MOLECULIN BIOTECH, INC.

 

 

	By:	                        	 
	 	Title:	 

  

     

     

    

 

annex
I

TERMS AND CONDITIONS FOR PURCHASE OF SECURITIES

 

1.       Authorization
and Sale of the Securities. Subject to the terms and conditions of this Agreement, the Company has authorized the sale of the
Shares and Warrants.

 

2.       Agreement
to Sell and Purchase the Securities; Placement Agent.

 

2.1       At
the Closing (as defined in Section 3.1), the Company will sell to the Investor, and the Investor will purchase from the
Company, upon the terms and conditions set forth herein, the number of Shares and Warrants set forth on the last page of the
Agreement to which these Terms and Conditions for Purchase of Securities are attached as Annex I (the “Signature
Page”) for the aggregate purchase price therefor set forth on the Signature Page.

 

2.2       The
Company proposes to enter into substantially this same form of Subscription Agreement with certain other investors (the “Other
Investors”) and expects to complete sales of Shares and Warrants to them. The Investor and the Other Investors are
hereinafter sometimes collectively referred to as the “Investors,” and this Agreement and the Subscription
Agreements executed by the Other Investors are hereinafter sometimes collectively referred to as the “Agreements.”

 

2.3       Investor
acknowledges that the Company has agreed to pay Oppenheimer & Co. Inc. (the “Placement Agent”) a fee (the
 “Placement Fee”) and to reimburse the Placement Agent for certain expenses in respect of the sale of the
Shares and Warrants to the Investor.

 

2.4       The
Company has entered into a Placement Agent Agreement, dated the date hereof, (the “Placement Agreement”),
with the Placement Agent that contains representations, warranties, covenants and agreements of the Company that may be relied
upon by the Investor, which shall be a third party beneficiary thereof. The Company confirms that neither it nor any other
Person acting on its behalf has provided the Investor or their agents or counsel with any information that constitutes or could
reasonably be expected to constitute material, nonpublic information, except as will be disclosed in the Prospectus and/or in the
Company’s Form 8-K to be filed with the Commission in connection with the Offering. The Company understands and confirms
that the Investor will rely on the foregoing representations in effecting transactions in securities of the Company.

 

3.       Closings
and Delivery of the Securities and Funds.

 

3.1       Closing.
The completion of the purchase and sale of the Shares and Warrants (the “Closing”)
shall occur at a place and time (the “Closing Date”) to be specified by the Company and the Placement Agent,
and of which the Investors will be notified in advance by the Placement Agent, in accordance with Rule 15c6-l promulgated
under the Securities Exchange Act of 1934, as amended (the “Exchange Act”). At the Closing, (a) the Company
shall cause the Company’s transfer agent (“Transfer Agent”), to deliver to the Investor the number of
Shares included in the Units set forth on the Signature Page registered in the name of the Investor or, if so indicated on
the Investor Questionnaire attached hereto as Exhibit A, in the name of a nominee designated by the Investor, (b) the Company
shall cause to be delivered to the Investor, a Warrant for the number of Warrant Shares included in the Units set forth on the
Signature Page, and (c) the aggregate purchase price for the Shares and Warrants being purchased by the Investor will be delivered
by or on behalf of the Investor to the Company.

 

     

     

    

 

3.2       Conditions
to the Obligations of the Parties. 

 

3.3(a)Conditions
to the Company’s Obligations. The Company’s obligation to issue and sell the Shares and Warrants to the Investor
shall be subject to: (i) the receipt by the Company of the purchase price for the Shares and Warrants being purchased hereunder
as set forth on the Signature Page, and (ii) the accuracy of the representations and warranties made by the Investor and the
fulfillment of those undertakings of the Investor to be fulfilled prior to the Closing Date.

 

3.4(b)Conditions
to the Investor’s Obligations. The Investor’s obligation to purchase the Shares and Warrants will be subject
to the accuracy of the representations and warranties made by the Company and the fulfillment of those undertakings of the Company
to be fulfilled prior to the Closing Date, including without limitation, those contained in the Placement Agreement, and to the
condition that the Placement Agent shall not have: (a) terminated the Placement Agreement pursuant to the terms thereof or (b)
determined that the conditions to the closing in the Placement Agreement have not been satisfied. The Investor’s obligations
are expressly not conditioned on the purchase by any or all of the Other Investors of the Shares and Warrants that they have agreed
to purchase from the Company. The Investor understands and agrees that, in the event that the Placement Agent in its sole discretion
determines that the conditions to closing in the Placement Agreement have not been satisfied or if the Placement Agreement may
be terminated for any other reason permitted by such Placement Agreement, then the Placement Agent may, but shall not be obligated
to, terminate such Agreement, which shall have the effect of terminating this Subscription Agreement pursuant to Section 14
below.

 

3.5       Delivery
of Funds.

 

Payment for the Shares and Warrants shall be made
as follows:

 

Delivery
Versus Payment through The Depository Trust Company. The purchase of the Shares shall be settled by delivery versus payment
through DTC. No later than one (1) business day after the execution of this Agreement by the Investor and the Company,
the Investor shall confirm that the account or accounts at the Placement Agent to be credited with the Shares being purchased by
the Investor have a minimum balance equal to the aggregate purchase price for the Shares and Warrants being purchased by the Investor.

 

3.6       Delivery
of Shares.

 

Delivery
Versus Payment through The Depository Trust Company. No later than one (1) business day after the execution of this
Agreement by the Investor and the Company, the Investor shall notify the Placement Agent of the account or accounts at
the Placement Agent to be credited with the Shares being purchased by such Investor. On the Closing Date, the Company shall deliver
the Shares to the Investor through DTC directly to the account(s) at the Placement Agent identified by Investor. Upon receipt of
such Shares, the Placement Agent shall promptly electronically deliver such Shares to the Investor, and simultaneously therewith
payment shall be made by the Placement Agent by wire transfer to the Company.

 

     

     

    

 

4.       Representations,
Warranties and Covenants of the Investor.

 

The Investor acknowledges,
represents and warrants to, and agrees with, the Company and the Placement Agent that:

 

4.1       The
Investor (a) is knowledgeable, sophisticated and experienced in making, and is qualified to make decisions with respect to, investments
in securities presenting an investment decision like that involved in the purchase of the Shares and Warrants, including investments
in securities issued by the Company and investments in comparable companies, (b) has answered all questions on the Signature Page
and the Investor Questionnaire and the answers thereto are true and correct as of the date hereof and will be true and correct
as of the Closing Date and (c) in connection with its decision to purchase the Shares and Warrants set forth on the Signature Page,
has received and is relying only upon the Disclosure Package and the documents incorporated by reference therein and the Offering
Information.

 

4.2       
(a) No action has been or will be taken in any jurisdiction outside the United States by the Company or
the Placement Agent that would permit an offering of the Shares and Warrants, or possession or distribution of offering materials
in connection with the issue of the Shares and Warrants in any jurisdiction outside the United States where action for that
purpose is required, (b) if the Investor is outside the United States, it will comply with all applicable laws and regulations
in each foreign jurisdiction in which it purchases, offers, sells or delivers Securities or has in its possession or distributes
any offering material, in all cases at its own expense and (c) the Placement Agent is not authorized to make and has not made any
representation, disclosure or use of any information in connection with the issue, placement, purchase and sale of the Securities,
except as set forth or incorporated by reference in the Registration Statement, Prospectus or any free writing prospectus.

 

4.3       (a)
The Investor has full right, power, authority and capacity to enter into this Agreement and to consummate the transactions contemplated
hereby and has taken all necessary action to authorize the execution, delivery and performance of this Agreement, and (b)
this Agreement constitutes a valid and binding obligation of the Investor enforceable against the Investor in accordance with
its terms, except as enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws
affecting creditors’ and contracting parties’ rights generally and except as enforceability may be subject to general
principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law) and except
as to the enforceability of any rights to indemnification or contribution that may be violative of the public policy underlying
any law, rule or regulation (including any federal or state securities law, rule or regulation).

 

4.4       The
Investor understands that nothing in this Agreement, the Prospectus, the Disclosure Package, the Offering Information or any other
materials presented to the Investor in connection with the purchase and sale of the Units constitutes legal, tax or investment
advice. The Investor has consulted such legal, tax and investment advisors and made such investigation as it, in its sole discretion,
has deemed necessary or appropriate in connection with its purchase of Shares and Warrants. The Investor also understands that
there is no established public trading market for the Warrants, and that the Company does not expect such a market to develop.
In addition, the Company does not intend to apply for listing of the Warrants on any national securities exchange or other trading
market. The Investor understands that without an active trading market, the liquidity of the Warrants will be limited. 

 

     

     

    

 

4.5       The
Investor will maintain the confidentiality of all information acquired as a result of the transactions contemplated hereby prior
to the public disclosure of that information by the Company in accordance with Section 13 of this Annex.

 

4.6       Since
the time at which the Placement Agent first provided the material pricing terms of the Offering, the Investor has not disclosed
any material pricing information regarding the Offering to any third parties (other than its legal, accounting and other advisors)
and has not engaged in any purchases or sales of the securities of the Company (including, without limitation, any Short Sales
(as defined herein) involving the Company’s securities). The Investor covenants that it will not engage in any purchases
or sales of the securities of the Company (including Short Sales) prior to the time that the transactions contemplated by this
Agreement are publicly disclosed. The Investor agrees that it will not use any of the Securities acquired pursuant to this Agreement
to cover any short position in the Common Stock if doing so would be in violation of applicable securities laws. For purposes hereof,
 “Short Sales” include, without limitation, all “short sales” as defined in Rule 200 promulgated under
Regulation SHO under the Exchange Act, whether or not against the box, and all types of direct and indirect stock pledges,
forward sales contracts, options, puts, calls, short sales, swaps, “put equivalent positions” (as defined in Rule
16a-1(h) under the Exchange Act) and similar arrangements (including on a total return basis), and sales and other transactions
through non-U.S. broker dealers or foreign regulated brokers.

 

5.       Survival
of Representations, Warranties and Agreements; Third Party Beneficiary. Notwithstanding any investigation made by any
party to this Agreement or by the Placement Agent, all covenants, agreements, representations and warranties made by the Company
and the Investor herein will survive the execution of this Agreement, the delivery to the Investor of the Securities being purchased
and the payment therefor. The Placement Agent shall be a third party beneficiary with respect to the representations, warranties
and agreements of the Investor in Section 4 hereof.

 

6.       Notices.
All notices, requests, consents and other communications hereunder will be in writing, will be mailed (a) if within the
domestic United States by first-class registered or certified airmail, or nationally recognized overnight express courier, postage
prepaid, or by facsimile or (b) if delivered from outside the United States, by International Federal Express or facsimile, and
will be deemed given (i) if delivered by first-class registered or certified mail domestic, three business days after so mailed,
(ii) if delivered by nationally recognized overnight carrier, one business day after so mailed, and (iii) if delivered by International
Federal Express, two business days after so mailed addressed as follows:

 

     

     

    

 

(a)       if
to the Company, to:

Moleculin Biotech, Inc.

5300 Memorial Drive, Suite 950

Houston, Texas 77007

Attention: Jonathan P. Foster, CFO

with a copy (which shall not constitute notice) to:

Schiff Hardin LLP

100 North 18th Street

Philadelphia, Pennsylvania 19103

Attention: Cavas S. Pavri

 

(b)       
if to the Investor, at its address on the Signature Page hereto, or at such other address or addresses as may have been furnished
to the Company in writing.

 

7.       Changes.
This Agreement may not be modified or amended except pursuant to an instrument in writing signed by the Company and the Investor.

 

8.       Headings.
The headings of the various sections of this Agreement have been inserted for convenience of reference only and will not
be deemed to be part of this Agreement.

 

9.       Severability.
In case any provision contained in this Agreement should be invalid, illegal or unenforceable in any respect, the validity,
legality and enforceability of the remaining provisions contained herein will not in any way be affected or impaired thereby.

 

10.       Governing
Law. This Agreement will be governed by, and construed in accordance with, the internal laws of the State of New
York, without giving effect to the principles of conflicts of law that would require the application of the laws of any other
jurisdiction.

 

11.       Counterparts.
This Agreement may be executed in two or more counterparts, each of which will constitute an original, but all of which, when
taken together, will constitute but one instrument, and will become effective when one or more counterparts have been signed by
each party hereto and delivered to the other parties. The Company and the Investor acknowledge and agree that the Company shall
deliver its counterpart to the Investor along with the Prospectus (or the filing by the Company of an electronic version thereof
with the Commission).

 

12.       Confirmation
of Sale. The Investor acknowledges and agrees that such Investor’s receipt of the Company’s signed counterpart
to this Agreement, together with the Prospectus Supplement (or the filing by the Company of an electronic version thereof
with the Commission), shall constitute written confirmation of the Company’s sale of the Shares and Warrants to such Investor.

 

     

     

    

 

13.       Press
Release; 8-K Filing. The Company and the Investor agree that the Company shall (a) prior to the opening of the financial markets
in New York City on April 23, 2019 issue a press release announcing the Offering and disclosing all material information regarding
the Offering (the “Press Release”), and (b) as promptly as practicable on April 23, 2019 file a current report
on Form 8-K with the Securities and Exchange Commission including, but not limited to, a form of this Agreement as an exhibit thereto.
Effective upon the issuance of the Press Release, the Company acknowledges and agrees that any and all confidentiality and similar
obligations under any agreement, whether written or oral, between the Company, any of its subsidiaries or any of their respective
officers, directors, affiliates, employees or agents, on the one hand, and the Investor or any of its affiliates, on the other
hand, shall terminate. From and after the issuance of the Press Release, the Investor shall not be deemed to be in possession of
any material, nonpublic information received from the Company, any of its subsidiaries or any of their respective officers, directors,
employees or agents.

  

14.       Termination.
In the event that the Placement Agreement is terminated by the Placement Agent pursuant to the terms thereof, this Agreement
shall terminate without any further action on the part of the parties hereto.

 

15.       Assignability
of Agreement. The Agreement and the Investor’s rights, obligations and interest under the Agreement, including the Terms
and Conditions for Purchase of Securities, are not transferable or assignable by the Investor.

 

 

     

     

    

 

EXHIBIT A

MOLECULIN BIOTECH, INC.

INVESTOR QUESTIONNAIRE

 

Pursuant to Section 3 of Annex I to the Agreement,
please provide us with the following information:

 

 

	1.	The exact name that your Shares and Warrants are to be registered in.  You may use a nominee name if appropriate:	
	 	 	 
	2.	The relationship between the Investor and the registered holder listed in response to item 1 above:	
	 	 	 
	3.	The mailing address of the registered holder listed in response to item 1 above:	
	 	 	 
	4.	The Social Security Number or Tax Identification Number of the registered holder listed in the response to item 1 above:	
	 	 	 
	5.	Name of DTC Participant (broker-dealer at which the account or accounts to be credited with the Shares are maintained):	
	 	 	 
	6.	DTC Participant Number:	
	 	 	 
	7.	Name of Account at DTC Participant being credited with the Shares:	
	 	 	 
	8.	Account Number at DTC Participant being credited with the Shares:	

 

 

     

     

    

 

EXHIBIT B

FORM OF WARRANTExhibit

Exhibit 10.1

Execution Version

SEVENTH AMENDMENT
TO
CREDIT AGREEMENT
Dated as of April 23, 2019
Among
PARSLEY ENERGY, LLC, 
as Borrower,
PARSLEY ENERGY, INC.,

WELLS FARGO BANK, NATIONAL ASSOCIATION, 
as Administrative Agent, 
JPMORGAN CHASE BANK, N.A.,
as Syndication Agent,

BMO HARRIS BANK, N.A.,
as Documentation Agent,

and

The Lenders Party Thereto
________________________________
 
WELLS FARGO SECURITIES, LLC 
Sole Lead Arranger and Sole Bookrunner 
 
________________________________

SEVENTH AMENDMENT TO CREDIT AGREEMENT
THIS SEVENTH AMENDMENT TO CREDIT AGREEMENT (this “Seventh Amendment”) dated as of April 23, 2019, is among Parsley Energy, LLC, a Delaware limited liability company (the “Borrower”); Parsley Energy, Inc., a Delaware corporation (“PEI”), each of the undersigned guarantors (the “Guarantors”, and together with the Borrower, the “Obligors”); each of the Lenders party hereto; and Wells Fargo Bank, National Association (in its individual capacity, “Wells Fargo”), 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, PEI, the Administrative Agent and the Lenders are parties to that certain Credit Agreement dated as of October 28, 2016 (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 and the Guarantors are parties to that certain Guarantee and Collateral Agreement, dated as of October 28, 2016 made by the Borrower and each of the other Grantors party thereto in favor of the Administrative Agent (as amended, modified, supplemented or restated from time to time prior to the date hereof, the “Guaranty Agreement”).
C.    The Borrower has requested and the Administrative Agent and the Lenders party hereto have agreed to amend the Credit Agreement, subject to the terms and conditions of this Seventh Amendment.
D.    NOW, THEREFORE, to induce the Administrative Agent and the Lenders to enter into this Seventh Amendment and in consideration of the promises 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 Seventh Amendment.  Unless otherwise indicated, all section references in this Seventh Amendment refer to sections of the Credit Agreement.
Section 2.    Amendments to Credit Agreement.
2.1    Amendments to Section 1.02.  
(a)    Each of the following definitions is hereby amended and restated in its entirety to read as follows:
“Aggregate Maximum Credit Amounts” at any time shall equal the sum of the Maximum Credit Amounts, as the same may be reduced or terminated pursuant 

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to Section 2.06.  The Aggregate Maximum Credit Amounts of the Lenders on the Seventh Amendment Effective Date is $5,000,000,000.    
“Agreement” means this Credit Agreement, including any schedules and exhibits hereto, as amended by the First Amendment, the Second Amendment, the Third Amendment, the Fourth Amendment, the Fifth Amendment, the Sixth Amendment and the Seventh Amendment, and as the same may from time to time be amended, modified, supplemented or restated.
“Consolidated Total Debt” means, at any date, all Debt of the Borrower and the Consolidated Restricted Subsidiaries on a consolidated basis, excluding non-cash obligations under FASB ASC 815.  Notwithstanding anything herein to the contrary, (a) if there are no Loans or unreimbursed LC Disbursements outstanding on any applicable date on which Consolidated Total Debt is calculated, Consolidated Total Debt shall be calculated net of the amount of Unrestricted Cash of the Borrower and the Consolidated Restricted Subsidiaries as of such date that is held in accounts subject to a Control Agreement and (b) if there are any Loans or unreimbursed LC Disbursements outstanding on any applicable date on which Consolidated Total Debt is calculated, Consolidated Total Debt shall be calculated net of the amount of Unrestricted Cash of the Borrower and the Consolidated Restricted Subsidiaries as of such date that is held in accounts subject to a Control Agreement up to $100,000,000 in the aggregate.
“Liquidity” means, as of any date of determination, the sum of (a) the amount of Unrestricted Cash on such date and (b) the amount of the unused Commitments as of such date. 
“Permitted Holders” means, individually or collectively, (a) Mr. Bryan Sheffield, (b) any immediate family member of Mr. Bryan Sheffield, (c) the estate or legal representative of the estate of Mr. Bryan Sheffield and/or any immediate family members of Mr. Bryan Sheffield (acting in the capacity of such legal representative), and (d) trusts, partnerships, limited liability companies, corporations or other entities that are Controlled by one or more Persons in clauses (a), (b) and/or (c) of this definition.
(b)    The following definitions are hereby added where alphabetically appropriate to read as follows:
“Beneficial Ownership Certification” means a certification regarding beneficial ownership of the Borrower as required by the Beneficial Ownership Regulation.
“Beneficial Ownership Regulation” means 31 C.F.R. § 1010.230.
“Qualified Midstream Assets” means (a) assets used in the gathering, distributing, marketing, treating, processing, transporting of, or storage, disposal, or 

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other handling of, Hydrocarbons, water, sand, minerals, chemicals or other products or substances commonly created, used, recovered, produced or processed in the conduct of the oil and gas business, including compression, pumping, treatment and disposal facilities, gathering lines and systems, and other assets commonly considered midstream assets or useful in connection with the conduct of midstream operations and (b) Equity Interests in Qualified Midstream Persons.  For the avoidance of doubt, (i) the Qualified Midstream Assets shall not constitute Borrowing Base Properties and (ii) none of the Borrowing Base Properties shall constitute Qualified Midstream Assets. 
“Qualified Midstream Person” means any Person if (a) all or substantially all of the assets of such Person consist of or will consist of Qualified Midstream Assets or (b) all or substantially all of such Person’s business is ownership of, operation of, construction or development of, or direct or indirect investment in, Qualified Midstream Assets.  For the avoidance of doubt, no Person owning any Borrowing Base Properties shall constitute a Qualified Midstream Person.
“Seventh Amendment” means that certain Seventh Amendment to Credit Agreement, dated as of April 23, 2019, among the Borrower, PEI, the Guarantors, the Administrative Agent and the Lenders party thereto.
“Seventh Amendment Effective Date” has the meaning assigned to such term in the Seventh Amendment.
“Unrestricted Cash” means cash or Cash Equivalents of the Borrower or any of its Restricted Subsidiaries that would not appear as “restricted” on a consolidated balance sheet of the Borrower or any of its Restricted Subsidiaries; provided that cash or Cash Equivalents that would appear as “restricted” on a consolidated balance sheet of the Borrower or any of its Restricted Subsidiaries solely because such cash or Cash Equivalents are subject to a Control Agreement shall constitute Unrestricted Cash hereunder. 
(c)    The definition of “Aggregate Elected Borrowing Base Commitments” is hereby amended by replacing the reference therein to the “Third Amendment Effective Date” with the “Seventh Amendment Effective Date”.
(d)    The definition of “Material Indebtedness” is hereby amended by replacing the reference therein to “$10,000,000” with “$50,000,000”.
(e)    The definition of “Sheffield” is hereby deleted in its entirety.
2.2    Amendments to Section 1.06(b).  Section 1.06(b) is hereby amended by (a) deleting the parenthetical “(other than any Restricted Subsidiary that owns or has an interest in any Property assigned value in the Borrowing Base then in effect, as determined by the Administrative Agent)” as it appears therein and (b) replacing each reference therein to “Section 9.05(k)” with “Section 9.05”.

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2.3    Amendment to Article I.  Article I is hereby amended by adding a new Section 1.08 to the end thereof to read as follows:
Section 1.08        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.
2.4    Amendments to Section 2.07.
(a)    Section 2.07(e) is hereby amended and restated in its entirety to read as follows:
(e)    Reduction of Borrowing Base Related to Disposition of Borrowing Base Properties and/or Liquidation of Swap Agreements.  If (i) any Swap Agreement to which the Borrower or any Restricted Subsidiary is a party is Liquidated or (ii) the Borrower or any Restricted Subsidiary Disposes of any Borrowing Base Property or Equity Interests in any Restricted Subsidiaries owning Borrowing Base Properties, and the Borrowing Base value assigned to the Liquidated portion of such Swap Agreement or the Borrowing Base value of such Borrowing Base Property or Equity Interests in such Restricted Subsidiaries owning Borrowing Base Properties, as applicable, in each case as determined by the Administrative Agent, when combined with the sum of (A) the Borrowing Base value of all other Dispositions of Borrowing Base Properties or Equity Interests in Restricted Subsidiaries owning Borrowing Base Properties, in each case since the most recent Scheduled Redetermination Date (after giving effect to the Borrowing Base value, if any, of any Oil and Gas Properties or Equity Interests in Restricted Subsidiaries owning Oil and Gas Properties acquired since the most recent Scheduled Redetermination Date, including, for the avoidance of doubt, any such Oil and Gas Properties or Equity Interests acquired concurrently with such Disposition, in each case as determined by the Administrative Agent) and (B) the Borrowing Base value of the Liquidated portion of other Swap Agreements Liquidated since the most recent Scheduled Redetermination Date (after giving effect to the Borrowing Base value of any Swap Agreements executed since the most recent Scheduled Redetermination Date, including, for the avoidance of doubt, any Swap Agreements executed concurrently with such Liquidation), exceeds five percent (5%) of the Borrowing Base as then in effect (as determined by the Administrative Agent), individually or in the aggregate, the Borrowing Base then in effect shall be reduced by an amount equal to the value, if any, assigned to the Liquidated portion of such Swap Agreement in the then effective Borrowing Base (after giving effect to the Borrowing Base value of any Swap Agreements executed since the most recent Scheduled Redetermination Date, including, for the avoidance of doubt, any Swap 

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Agreements executed concurrently with such Liquidation) and/or the Borrowing Base value of such Disposed Borrowing Base Property or Equity Interests in Restricted Subsidiaries owning Borrowing Base Properties (in each case, after giving effect to the Borrowing Base value, if any, of any Oil and Gas Properties or Equity Interests in Restricted Subsidiaries owning Oil and Gas Properties acquired since the most recent Scheduled Redetermination Date, including, for the avoidance of doubt, any such Oil and Gas Properties or Equity Interests acquired concurrently with such Disposition, in each case as determined by the Administrative Agent), as the case may be, in each case as determined by the Administrative Agent.  The Borrowing Base as so reduced shall become the new Borrowing Base immediately upon the date of such Disposition, effective and applicable to the Borrower, the Administrative Agent, the Issuing Bank and the Lenders on such date until the next redetermination or modification thereof hereunder.
(b)    Section 2.07(f) is hereby amended and restated in its entirety to read as follows:
(f)    Reduction of Borrowing Base Upon Issuance of Certain Senior Notes and Permitted Refinancing Debt.  Notwithstanding anything to the contrary contained herein, if (a) the Borrower and/or Finance Co. incurs (i) any Senior Notes in reliance on Section 9.02(f) or (ii) any Permitted Refinancing Debt in reliance on Section 9.02(g) in a principal amount in excess of the aggregate principal amount of Senior Notes or Refinanced Debt refinanced with such Permitted Refinancing Debt and (b) both before and immediately after giving effect to such incurrence of Senior Notes or Permitted Refinancing Debt, the total Revolving Credit Exposures exceeds 25% of the total Commitments then in effect, then the Borrowing Base then in effect shall be reduced immediately upon the date of such incurrence by an amount equal to the product of 0.25 multiplied by an amount equal to the stated principal amount of such excess Senior Notes or excess Permitted Refinancing Debt incurred.  The Borrowing Base as so reduced shall become the new Borrowing Base immediately upon the date of such incurrence, effective and applicable to the Borrower, the Administrative Agent, the Issuing Bank and the Lenders on such date until the next redetermination or modification thereof hereunder.  For purposes of this Section 2.07(f), if any such Debt is issued at a discount or otherwise sold for less than “par”, the reduction shall be calculated based upon the stated principal amount without reference to such discount.
(c)    Section 2.07(g) is hereby amended and restated in its entirety to read as follows:
(g)    Right to Redetermine Borrowing Base Upon Certain Dispositions of Oil and Gas Properties and Certain Dispositions of Qualified Midstream Properties.  

(i)    If the Borrower or any Restricted Subsidiary Disposes of any Borrowing Base Property or Equity Interests in any Restricted Subsidiaries 

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owning Borrowing Base Properties, and the Borrowing Base value (as determined by the Administrative Agent) of such Borrowing Base Property or Equity Interests in such Restricted Subsidiaries owning Borrowing Base Properties, as applicable, when combined with the sum of the Borrowing Base value of all other Dispositions of Borrowing Base Properties or Equity Interests in Restricted Subsidiaries owning Borrowing Base Properties, in each case since the most recent Scheduled Redetermination Date, exceeds ten percent (10%) of the Borrowing Base as then in effect (as determined by the Administrative Agent, and for the avoidance of doubt, without giving effect to the Borrowing Base value, if any, of any Oil and Gas Properties or Equity Interests in Restricted Subsidiaries owning Oil and Gas Properties acquired since the most recent Scheduled Redetermination Date), individually or in the aggregate, then, without limiting the provisions of Section 2.07(b) or Section 2.07(e), the Administrative Agent and the Required Lenders shall have the right to redetermine the Borrowing Base.  The Borrowing Base as so redetermined shall become the new Borrowing Base immediately upon the date of such Disposition, effective and applicable to the Borrower, the Administrative Agent, the Issuing Bank and the Lenders on such date until the next redetermination or modification thereof hereunder.

(ii)    If, during any period between two successive Scheduled Redetermination Dates, the Borrower or any Restricted Subsidiary Disposes of one or more Qualified Midstream Assets having a Borrowing Base value (as determined by the Administrative Agent), individually or in the aggregate, in excess of five percent (5%) of the Borrowing Base as then in effect, the Administrative Agent and the Required Lenders shall have the right to reduce the Borrowing Base then in effect by an amount equal to the value attributable to such Disposed Qualified Midstream Assets in the Borrowing Base then in effect, as determined by the Administrative Agent and approved by the Required Lenders.  The Borrowing Base as so reduced shall become the new Borrowing Base immediately upon the date of such Disposition, effective and applicable to the Borrower, the Administrative Agent, the Issuing Bank and the Lenders on such date until the next redetermination or modification thereof hereunder.
2.5    Amendment to Section 7.11.  Section 7.11 is hereby amended by (i) adding “(a)” in front of the word “No” at the beginning thereof and (ii) adding a new clause (b) to the end thereof to read as follows:
(b)    As of the Seventh Amendment Effective Date, the information included in the Beneficial Ownership Certification delivered by the Borrower to the Administrative Agent is true and correct in all material respects.

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2.6    Amendments to Section 8.01.
(a)    Each of Section 8.01(d) and Section 8.01(h) is hereby amended and restated in its entirety as “[Reserved]”.
(b)    Section 8.01(l) is hereby amended and restated in its entirety as follows: 
(l)    Notice of Sales of Oil and Gas Properties.  
(i)    In the event that any Loan Party intends to Dispose of any Oil or Gas Properties (or any Equity Interests in any Subsidiary owning Oil and Gas Properties), in a single transaction or series of transactions with a fair market value in excess of $50,000,000, at least three (3) Business Days prior written notice of such Disposition, the price thereof and the anticipated date of closing and any other details thereof reasonably requested by the Administrative Agent.  
(ii)    In the event that any Loan Party intends to Dispose of any Qualified Midstream Assets or any Qualified Midstream Person in a single transaction or series of transactions with a fair market value in excess of $50,000,000, written notice on the date of or prior to such Disposition, the price thereof and any other details thereof reasonably requested by the Administrative Agent.
(iii)    In the event that any Loan Party receives any notice of early termination of any Swap Agreement to which it is a party from any of its counterparties, or any Swap Agreement to which any Loan Party is a party is Liquidated, prompt written notice of the receipt of such early termination notice or such Liquidation, as the case may be, together with a reasonably detailed description or explanation thereof and any other details thereof reasonably requested by the Administrative Agent.
(c)    Section 8.01(n) is hereby amended and restated in its entirety as follows:
(n)    Information Regarding Borrower and Guarantors.  Prompt written notice (and in any event within five (5) Business Days thereafter or such longer period as agreed to by the Administrative Agent) of any change (i) in any Loan Party’s corporate name or in any trade name used to identify such Person in the conduct of its business or in the ownership of its Properties, (ii) in the location of any Loan Party’s chief executive office or principal place of business, (iii) in any Loan’s Party’s identity or corporate structure or in the jurisdiction in which such Person is incorporated or formed, (iv) in any Loan Party’s jurisdiction of organization or such Person’s organizational identification number in such jurisdiction of organization, and (v) in any Loan Party’s federal taxpayer identification number.

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(d)    Section 8.01 is hereby amended by amending and restating the last paragraph thereto in its entirety as follows: 
In each subsection of this Section 8.01 (other than subsection (c), (e), (n) or (o)), it is understood and agreed that the filing with the SEC by PEI of an annual report on Form 10-K, a quarterly report on Form 10-Q, a current report on Form 8-K, or any other applicable report shall satisfy the requirements of such subsection to the extent that such filing (including the exhibits to such filing) contains the information specified in such subsection.
2.7    Amendments to Section 8.12.  Section 8.12 is hereby amended by replacing each reference therein to “85%” with “80%”.  
2.8    Amendment to Section 9.01(b).  Section 9.01(b) is hereby amended by replacing the reference therein to “unrestricted cash” with “Unrestricted Cash”.
2.9    Amendments to Section 9.02.  Section 9.02 is hereby amended by (a) deleting the word “and” at the end of Section 9.02(h), (b) deleting the period at the end of Section 9.02(i) and replacing it with “; and”, and (c) adding a new subsection (j) thereto to read as follows:
(j)    Debt consisting of the financing of insurance premiums incurred in the ordinary course of business.
2.10    Amendments to Section 9.03.  Section 9.03 is hereby amended by (a) deleting the word “and” at the end of Section 9.03(d), (b) deleting the period at the end of Section 9.03(e) and replacing it with a semi-colon, and (c) adding new subsections (f) through (h) thereto to read as follows:
(f)    Liens on cash or Cash Equivalents held by a trustee under any indenture or other debt agreement issued in escrow pursuant to customary escrow arrangements pending the release thereof, or under any indenture or other debt agreement pursuant to customary discharge, redemption or defeasance provisions, in each case solely to the extent the relevant release, discharge, redemption or defeasance would be permitted hereunder;
(g)    Liens on insurance policies and the proceeds thereof securing the financing of the premiums with respect thereto; and
(h)    Liens on Equity Interests in Unrestricted Subsidiaries. 
2.11    Amendments to Section 9.04.  
(a)    Section 9.04(a) is hereby amended by (i) replacing the reference therein to “80%” with “85%” and (ii) replacing the reference therein to “2.50” with “3.00”.  
(b)    Section 9.04(b) is hereby amended by amending and restating clause (a) thereof to read as follows:

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(a)    prior to the date that is ninety-one (91) days after the Maturity Date, call, make or offer to make any optional or voluntary Redemption of or otherwise optionally or voluntarily Redeem (whether in whole or in part) any Senior Notes or any Permitted Refinancing Debt; provided that, so long as no Default, Event of Default or Borrowing Base Deficiency shall have occurred and be continuing or would result therefrom, the Borrower and/or Finance Co. may optionally prepay the Senior Notes or the Refinanced Debt (i) with the proceeds of Permitted Refinancing Debt or (ii) so long as, both before and immediately after giving effect to such prepayment, (A) the total Revolving Credit Exposures does not exceed 85% of the total Commitments then in effect and (B) the Consolidated Leverage Ratio is equal to or less than 3.00 to 1.00, as the Consolidated Leverage Ratio is recomputed on such date using (I) Consolidated Total Debt outstanding on such date and (II) EBITDAX for the four fiscal quarters ending on the last day of the fiscal quarter immediately preceding such date for which financial statements are available;
2.12    Amendments to Section 9.05.  Section 9.05 is hereby amended by adding new subsection (n) to the end thereof to read as follows:
(n)    Investments in any Qualified Midstream Person or in any Qualified Midstream Assets, so long as both before and immediately after giving effect to any such Investment, (i) no Event of Default has occurred and is continuing or would result therefrom, (ii) the total Revolving Credit Exposures does not exceed 85% of the total Commitments then in effect and (iii) the Consolidated Leverage Ratio is equal to or less than 3.00 to 1.00, as the Consolidated Leverage Ratio is recomputed on such date using (A) Consolidated Total Debt outstanding on such date and (B) EBITDAX for the four fiscal quarters ending on the last day of the fiscal quarter immediately preceding such date for which financial statements are available.
2.13    Amendments to Section 9.12.  Section 9.12 is hereby amended by (a) replacing the reference to “dispositions” in Section 9.12(f) with “Dispositions”, (b) deleting the period at the end of Section 9.12(k) and replacing it with “; and”, and (c) adding a new subsection (l) thereto to read as follows:
(l)    Dispositions of (i) Qualified Midstream Assets and (ii) Equity Interests in Qualified Midstream Persons; provided that the Borrowing Base shall be reduced to the extent required by Section 2.07(g)(ii), to the extent applicable.
2.14         Amendments to Section 10.01.  
(a)    Section 10.01(d) is hereby amended by (i) deleting the reference therein to “Section 8.16, Section 8.17,” and (ii) replacing the reference therein to “Section 8.18” with “Section 8.18(b) or (c)”.
(b)    Section 10.01(e) is hereby amended and restated in its entirety as follows:

9

(e)    PEI or any Loan Party shall fail to observe or perform any covenant, condition or agreement contained in this Agreement (other than those specified in Section 10.01(a), Section 10.01(b) or Section 10.01(d) or any other Loan Document, and such failure shall continue unremedied for a period of 30 days after the earlier to occur of (i) notice thereof from the Administrative Agent to the Borrower (which notice will be given at the request of any Lender) or (ii) a Responsible Officer of the Borrower otherwise becoming aware of such default.
(c)    Section 10.01(k) is hereby amended by replacing the reference therein to “$10,000,000” with “$50,000,000”.
2.15      Amendment to Annex I.  Annex I is hereby amended and restated to read as set forth on Annex I attached to this Seventh Amendment.
Section 3.    Conditions of Effectiveness.  This Seventh Amendment will become effective on the date on which each of the following conditions precedent is satisfied or waived in accordance with Section 12.02 of the Credit Agreement (the “Seventh Amendment Effective Date”):
3.1    The Administrative Agent shall have received from the Borrower, PEI, each Guarantor, the Issuing Bank and the Lenders, counterparts (in such number as may be requested by the Administrative Agent) of this Seventh Amendment signed on behalf of such Person.
3.2    The Administrative Agent and the Lenders shall have received all fees and other amounts due and payable on or prior to the Seventh Amendment Effective Date, including all reasonable and documented out-of-pocket expenses required to be reimbursed or paid by the Borrower under the Credit Agreement (including reasonable and documented out-of-pocket fees and expenses invoiced by Paul Hastings LLP at least two (2) Business Days prior to the Seventh Amendment Effective Date).
3.3    No Default or Event of Default shall have occurred and be continuing as of the Seventh Amendment Effective Date.
3.4    If requested by any Lender prior to the date hereof, the Administrative Agent shall have received a new duly executed Note payable to each such Lender, to the extent requested by such Lender, in a principal amount equal to the applicable new Maximum Credit Amount of such Lender (as increased by this Seventh Amendment), dated as of the Seventh Amendment Effective Date.
3.5    The Administrative Agent shall have received such other documents as the Administrative Agent or its special counsel may reasonably require.
The Administrative Agent is hereby authorized and directed to declare this Seventh Amendment to be effective when it has received documents confirming compliance with the conditions set forth in this Section 3 or the waiver of such conditions as agreed to by the Majority Lenders.  Such declaration shall be final, conclusive and binding upon all parties to the Credit Agreement for all purposes.

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Section 4.    Borrowing Base Increase.  For the period from and including the Seventh Amendment Effective Date to but excluding the next Redetermination Date, the amount of the Borrowing Base shall be equal to $2,700,000,000.  Notwithstanding the foregoing, the Borrowing Base may be subject to further adjustments from time to time pursuant to Section 2.07(e), Section 2.07(f), Section 2.07(g), and Section 8.12(c).  For the avoidance of doubt, this Borrowing Base increase shall constitute the April 15, 2019 Scheduled Redetermination.
Section 5.    Post-Closing Covenants.    
5.1    On or before May 15, 2019 (or such later date as the Administrative Agent may agree in its sole discretion), the Borrower shall have delivered, together with title information previously delivered to the Administrative Agent, title information as the Administrative Agent may reasonably require satisfactory to the Administrative Agent setting forth the status of title to at least 80% of the total value of the proved Oil and Gas Properties (and to at least 80% of the total value of the proved, developed and producing reserves) evaluated by the most recently delivered Reserve Report.
5.2    On or before May 15, 2019 (or such later date as the Administrative Agent may agree in its sole discretion), the Borrower shall have delivered duly executed and notarized amendments to existing deeds of trust and/or mortgages and/or new deeds of trust/mortgages in form satisfactory to the Administrative Agent, to the extent necessary so that the Mortgaged Properties represent at least 85% of the total value of the proved Oil and Gas Properties (and at least 85% of the total value of the proved, developed and producing reserves) of the Borrower and the Subsidiaries evaluated by the most recently delivered Reserve Report.
Section 6.    Miscellaneous.
6.1    Confirmation.  The provisions of the Credit Agreement, as amended by this Seventh Amendment, shall remain in full force and effect following the effectiveness of this Seventh Amendment.
6.2    Ratification and Affirmation; Representations and Warranties.  Each of PEI and each Obligor hereby: (a) acknowledges the terms of this Seventh Amendment; (b) 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; (c) agrees that from and after the Seventh Amendment Effective Date each reference to the Credit Agreement in the other Loan Documents shall be deemed to be a reference to the Credit Agreement, as amended by this Seventh Amendment; and (d) represents and warrants to the Lenders that as of the date hereof, after giving effect to the terms of this Seventh Amendment: (i) all of the representations and warranties contained in each Loan Document to which it is a party are true and correct in all material respects (except that any representation and warranty that is qualified by materiality shall be 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 continue to be true and correct in all material respects (except that any representation and warranty that is qualified by materiality shall be true and correct in all respects) as of such specified earlier date, 

11

(ii) no Default or Event of Default has occurred and is continuing and (iii) no event, development or circumstance has occurred or exists that has resulted in, or could reasonably be expected to have, a Material Adverse Effect. 
6.3    Counterparts.  This Seventh 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 an executed counterpart of a signature page of this Seventh Amendment by telecopy, facsimile, as an attachment to an email or other similar electronic means shall be effective as delivery of a manually executed counterpart of this Seventh Amendment.
6.4    NO ORAL AGREEMENT.  THIS SEVENTH 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 UNWRITTEN ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO SUBSEQUENT ORAL AGREEMENTS BETWEEN THE PARTIES.
6.5    GOVERNING LAW.  THIS SEVENTH AMENDMENT (INCLUDING, BUT NOT LIMITED TO, THE VALIDITY AND ENFORCEABILITY HEREOF) SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF TEXAS.
6.6    Loan Document.  This Seventh Amendment is a “Loan Document” as defined and described in the Credit Agreement and all of the terms and provisions of the Credit Agreement relating to Loan Documents shall apply hereto.
6.7    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 and documented out-of-pocket costs and expenses incurred in connection with this Seventh Amendment, any other documents prepared in connection herewith and the transactions contemplated hereby, including, without limitation, the reasonable fees and disbursements of counsel to the Administrative Agent.
6.8    Severability.  Any provision of this Seventh Amendment which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.
6.9    Successors and Assigns. This Seventh Amendment shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns.
[Signature Pages Follow]

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IN WITNESS WHEREOF, the parties hereto have caused this Seventh Amendment to be duly executed and delivered by their proper and duly authorized officer(s) as of the day and year first above written.
	
		
	BORROWER:
	PARSLEY ENERGY, LLC

	

PEI:
	By:      /s/ Ryan Dalton  
Name:   Ryan Dalton
Title:   Executive Vice President – Chief Financial Officer

PARSLEY ENERGY, INC.

By:     /s/ Ryan Dalton 
Name:   Ryan Dalton
Title:   Executive Vice President – Chief Financial Officer

	GUARANTOR:
	PARSLEY GP, LLC

	 
	By:      /s/ Ryan Dalton
Name:   Ryan Dalton
Title:   Executive Vice President – Chief Financial Officer
        

	GUARANTOR:
	PARSLEY ENERGY, L.P.
BY: PARSLEY GP, LLC, its general partner

	 
	By:      /s/ Ryan Dalton 
Name:   Ryan Dalton
Title:   Executive Vice President – Chief Financial Officer
        

	GUARANTOR:
	PARSLEY ENERGY OPERATIONS, LLC

	 
	By:      /s/ Ryan Dalton
Name:   Ryan Dalton
Title:   Executive Vice President – Chief Financial Officer
        

	GUARANTOR:
	PARSLEY ADMINISTRATION, LLC

	

	By:     /s/ Ryan Dalton 
Name:   Ryan Dalton
Title:   Executive Vice President – Chief Financial Officer

[Parsley Energy, LLC - Seventh Amendment Signature Page]

	
		
	GUARANTOR:
	PARSLEY MINERALS, LLC

	

	By:      /s/ Ryan Dalton 
Name:   Ryan Dalton
Title:   Executive Vice President – Chief Financial Officer

	GUARANTOR:

	PARSLEY FINANCE CORP.

By:      /s/ Ryan Dalton 
Name:   Ryan Dalton
Title:   Executive Vice President – Chief Financial Officer

	
		
	GUARANTOR:

	PARSLEY DE LONE STAR LLC

By:      /s/ Ryan Dalton
Name:   Ryan Dalton
Title:   Executive Vice President – Chief Financial Officer

	GUARANTOR:

	PARSLEY DE OPERATING LLC

By:      /s/ Ryan Dalton
Name:   Ryan Dalton
Title:   Executive Vice President – Chief Financial Officer

[Parsley Energy, LLC - Seventh Amendment Signature Page]

	
		
	GUARANTOR:

	PARSLEY VERITAS ENERGY PARTNERS, LLC

By:      /s/ Ryan Dalton
Name:   Ryan Dalton
Title:   Executive Vice President – Chief Financial Officer

	GUARANTOR:

	PARSLEY NOVUS LAND SERVICES LLC

By:    /s/ Ryan Dalton
Name:   Ryan Dalton
Title:   Executive Vice President – Chief Financial Officer

[Parsley Energy, LLC - Seventh Amendment Signature Page]

	
		
	ADMINISTRATIVE AGENT, ISSUING BANK AND LENDER:
	WELLS FARGO BANK, NATIONAL ASSOCIATION

	 
	

By:      /s/ Matthew Denkler 
Name: Matthew Denkler
Title:   Vice President           
        

[Parsley Energy, LLC - Seventh Amendment Signature Page]

	
		
	LENDER:
	BMO HARRIS BANK, N.A.

	 
	

By:      /s/ Melissa Guzmann 
Name: Melissa Guzmann  
Title:   Director 
        

[Parsley Energy, LLC - Seventh Amendment Signature Page]

	
		
	LENDER:
	JPMORGAN CHASE BANK, N.A.

	 
	

By:     /s/ Anca Loghin
Name: Anca Loghin
Title:   Authorized Officer 
        

[Parsley Energy, LLC - Seventh Amendment Signature Page]

	
		
	LENDER:
	CREDIT SUISSE AG, CAYMAN ISLANDS BRANCH

By:     /s/ Nupur Kumar
Name: Nupur Kumar
Title:   Authorized Signatory

By:     /s/ Christopher Zybrick 
Name: Christopher Zybrick
Title:   Authorized Signatory

[Parsley Energy, LLC - Seventh Amendment Signature Page]

	
		
	LENDER:
	COMPASS BANK

By:     /s/ Mark H. Wolf 
Name: Mark H. Wolf
Title:   Senior Vice President

[Parsley Energy, LLC - Seventh Amendment Signature Page]

	
		
	LENDER:
	ROYAL BANK OF CANADA

By:      /s/ Don J. McKinnerney 
Name: Don J. McKinnerney
Title:   Authorized Signatory

[Parsley Energy, LLC - Seventh Amendment Signature Page]

	
		
	LENDER:
	U.S. BANK NATIONAL ASSOCIATION

By:      /s/ Nicholas T. Hanford 
Name: Nicholas T. Hanford
Title:   Vice President

[Parsley Energy, LLC - Seventh Amendment Signature Page]

	
		
	LENDER:
	THE BANK OF NOVA SCOTIA, HOUSTON BRANCH

By:     /s/ Marc Graham 
Name: Marc Graham
Title:   Managing Director

	 
	 

[Parsley Energy, LLC - Seventh Amendment Signature Page]

	
		
	LENDER:
	BOKF NA DBA BANK OF TEXAS

By:     /s/ Bradley Kuhn 
Name: Bradley Kuhn
Title:   Vice President

	 
	 

[Parsley Energy, LLC - Seventh Amendment Signature Page]

	
		
	LENDER:
	FROST BANK, A TEXAS STATE BANK

By:      /s/ Jack Herndon 
Name: Jack Herndon
Title:   Senior Vice President

[Parsley Energy, LLC - Seventh Amendment Signature Page]

	
		
	LENDER:
	CANADIAN IMPERIAL BANK OF COMMERCE, NEW YORK BRANCH

By:      /s/ Trudy Nelson 
Name: Trudy Nelson
Title:   Authorized Signatory

By:      /s/ Scott W. Danvers 
Name: Scott W. Danvers
Title:   Authorized Signatory

[Parsley Energy, LLC - Seventh Amendment Signature Page]

	
		
	LENDER:
	CAPITAL ONE, NATIONAL ASSOCIATION

By:      /s/ Michael Higgins 
Name: Michael Higgins
Title:   Managing Director

[Parsley Energy, LLC - Seventh Amendment Signature Page]

	
		
	LENDER:
	CITIBANK, N.A.

By:     /s/ Cliff Vaz 
Name: Cliff Vaz
Title:   Vice President

[Parsley Energy, LLC - Seventh Amendment Signature Page]

	
		
	LENDER:
	PNC BANK, NATIONAL ASSOCIATION

By:      /s/ Sandra Salazar 
Name: Sandra Salazar
Title:   Managing Director

[Parsley Energy, LLC - Seventh Amendment Signature Page]

	
		
	LENDER:
	UBS AG, STAMFORD BRANCH

By:     /s/ Darlene Arias 
Name: Darlene Arias
Title:   Director

By:     /s/ Houssem Daly 
Name: Houssem Daly
Title:   Associate Director

[Parsley Energy, LLC - Seventh Amendment Signature Page]

	
		
	LENDER:
	MORGAN STANLEY BANK, N.A.

By:      /s/ Megan Kushner 
Name: Megan Kushner
Title:   Authorized Signatory

	LENDER:
	MORGAN STANLEY SENIOR FUNDING, INC.

By:     /s/ Megan Kushner 
Name: Megan Kushner
Title:   Vice President

    

[Parsley Energy, LLC - Seventh Amendment Signature Page]

ANNEX I 
LIST OF MAXIMUM CREDIT AMOUNTS 
 

	
			
	Name of Lender
	Applicable Percentage
	Maximum Credit Amount

	Wells Fargo Bank, National Association
	10.0000000000%
	$500,000,000.00

	BMO Harris Bank, N.A.
	9.0000000000%
	$450,000,000.00

	JPMorgan Chase Bank, N.A.
	9.0000000000%
	$450,000,000.00

	Credit Suisse AG, Cayman Islands Branch
	6.4000000000%
	$320,000,000.00

	BBVA Bank d/b/a Compass Bank
	6.4000000000%
	$320,000,000.00

	Royal Bank of Canada
	6.4000000000%
	$320,000,000.00

	U.S. Bank National Association
	6.4000000000%
	$320,000,000.00

	The Bank of Nova Scotia, Houston Branch
	6.4000000000%
	$320,000,000.00

	BOKF NA dba Bank of Texas
	5.0000000000%
	$250,000,000.00

	Frost Bank, a Texas State Bank
	5.0000000000%
	$250,000,000.00

	Canadian Imperial Bank of Commerce-New York Branch
	5.0000000000%
	$250,000,000.00

	Capital One, National Association
	5.0000000000%
	$250,000,000.00

	Citibank, N.A.
	5.0000000000%
	$250,000,000.00

	PNC Bank, National Association
	5.0000000000%
	$250,000,000.00

	UBS AG, Stamford Branch
	5.0000000000%
	$250,000,000.00

	Morgan Stanley Bank, N.A.
	3.958695652%
	$197,934,782.60

	Morgan Stanley Senior Funding, Inc.
	1.041304348%
	$52,065,217.40

	TOTAL
	100.0000000000%
	$5,000,000,000.00

Annex I

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