Document:

Exhibit 10. 54

 

PLEDGE AGREEMENT

 

THIS PLEDGE AGREEMENT (as amended, restated, amended and restated, supplemented or otherwise modified from time to time, this “Agreement”) is dated as of October 22, 2015 and is among WARREN RESOURCES, INC., a Maryland corporation (the “Borrower”), WARREN RESOURCES OF CALIFORNIA, INC., a California corporation (“Warren California”), WARREN E&P, INC., a New Mexico corporation (“Warren E&P”), WARREN MARCELLUS LLC, a Delaware limited liability company (“Warren Marcellus” and together with the Borrower, Warren California and Warren E&P, the “Pledgors”), and Cortland Products Corp., a Delaware corporation, in its capacity as Administrative Agent under the Credit Agreement described below (“Administrative Agent”).

 

W I T N E S S E T H

 

WHEREAS, the Borrower is party to that certain Second Lien Credit Agreement (as amended, restated, amended and restated, supplemented or otherwise modified in writing from time to time, the “Credit Agreement”; capitalized terms used and not otherwise defined herein shall have the respective meanings provided for in the Credit Agreement) dated as of even date herewith among the Borrower, the financial institutions or other entities from time to time party thereto (the “Lenders”) and the Administrative Agent;

 

WHEREAS, Warren California, Warren E&P and Warren Marcellus are Subsidiaries of the Borrower; and

 

WHEREAS, it is a condition precedent to the availability of such loans and other financial accommodations under the Credit Agreement that each Pledgor shall have made the pledges and granted the security interests contemplated by this Agreement in order to secure the payment and performance of the Obligations.

 

NOW, THEREFORE, in consideration of the foregoing, and in order to induce Lenders to make the Loans and other financial accommodations available to the Borrower under the Credit Agreement, each Pledgor hereby agrees with Administrative Agent, for its benefit and the benefit of Lenders, as follows:

 

1.                                      Definitions.  Capitalized terms defined in the Credit Agreement and not otherwise defined herein shall have the respective meanings provided for in the Credit Agreement.  References to “Sections” shall be to Sections of this Agreement unless otherwise specifically provided.  For purposes hereof, “including” is not limiting and “or” is not exclusive.  All references to statutes and related regulations shall include any amendments of same and any successor statutes and regulations.

 

2.                                      Bailee for Perfection.  So long as the First Lien Agent is acting as bailee and as agent for perfection or control on behalf of the Administrative Agent pursuant to the terms of the First/Second Lien Intercreditor Agreement, any obligation of any Pledgor in this Agreement that requires delivery or control of Pledged Collateral to, or in the possession or control of such Pledged Collateral with, the Administrative Agent shall be deemed complied with and satisfied if such delivery of such Pledged Collateral is made to, or such possession or control of such Pledged Collateral is with, the First Lien Agent.

 

 

3.                                      Pledge.  To secure the payment and performance of the Obligations, each Pledgor hereby pledges to Administrative Agent, for its benefit and the benefit of the Secured Parties, and grants to Administrative Agent, for its benefit and the benefit of the Secured Parties, a security interest in, any and all right, title and interest in and to the following (the “Pledged Collateral”):

 

(a)                                 all of the shares of the Capital Stock, membership interests, partnership interests and all other equity interests of each corporation, limited liability company, limited partnership or other legal entity (collectively, the “Issuers” and each, an “Issuer”), identified on Exhibit A attached hereto held by each Pledgor (the “Pledged Securities”), and the certificates (if any), representing the Pledged Securities, all options, warrants and other rights to acquire additional shares of Capital Stock, membership interests, partnership interests and all other equity interests of each Issuer, and the shares, membership interests, partnership interests and other equity interests underlying such rights and all distributions, dividends (in the form of cash, securities or otherwise), cash, instruments, chattel paper and other rights, property or proceeds and products from time to time received, receivable or otherwise distributed in respect of or in exchange for any or all of the Pledged Securities;

 

(b)                                 all additional shares of the Capital Stock, membership interests, partnership interests and all other equity interests of each Issuer at any time acquired by the Pledgors in any manner, and the certificates (if any), representing such additional shares, membership interests, partnership interests and other equity interests (and any such additional shares, membership interests, partnership interests and other equity interests, with respect to which the Pledgors shall execute and deliver to Administrative Agent a pledge supplement in the form of Exhibit B attached hereto (a “Pledge Supplement”), shall constitute part of the Pledged Securities under this Agreement), together with all distributions, dividends (in the form of cash, securities or otherwise), cash, instruments, chattel paper and other rights, property or proceeds and products from time to time received, receivable or otherwise distributed in respect of or in exchange for any or all of such additional shares, membership interests, partnership interests and other equity interests; and

 

(c)                                  all proceeds of any of the foregoing.

 

Notwithstanding the foregoing or anything else to the contrary herein, the Pledged Collateral shall not include any Excluded Capital Stock.

 

“Excluded Capital Stock” shall mean (a) any Capital Stock with respect to which, in the reasonable judgment of the Lead Lenders and the Borrower, the cost or other consequences of pledging such Capital Stock shall be excessive in view of the benefits to be obtained by Administrative Agent and the Lenders therefrom, (b) solely in the case of any pledge of Capital Stock of any Foreign Subsidiary or FSHCO (in each case, that is owned directly by the Borrower or a Guarantor) to secure the Obligations, any Capital Stock that is voting stock of such Foreign Subsidiary or FSHCO in excess of 65% of the voting stock of such Subsidiary, (c) any Capital Stock to the extent the pledge thereof would be prohibited by any Requirement of Law, (d) Capital Stock of any Person other than a Subsidiary to the extent the pledge of such Capital Stock is prohibited by contractual obligations existing on the Closing Date or at the time such Capital Stock is acquired, (e) Capital Stock of any Subsidiary of a Foreign Subsidiary or FSHCO

 

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and (f) any Capital Stock of any Subsidiary to the extent that the pledge of such Equity Interests would result in material adverse tax consequences to the Borrower or any Subsidiary as reasonably determined by the Borrower in consultation with the Lead Lenders (such consultation limited to the tax consequences of such pledge of such Capital Stock).  For the avoidance of doubt, “Capital Stock” shall include Capital Stock, membership interests, partnership interests and all other equity interests of each Issuer.

 

4.                                      Delivery of Pledged Collateral; UCC Financing Statements.

 

(a)                                 All certificates or instruments (if any), representing or evidencing any Pledged Collateral shall be delivered to and held by or on behalf of Administrative Agent (or First Lien Agent as required pursuant to the terms of the First/Second Lien Intercreditor Agreement) pursuant hereto and shall either be in suitable form for transfer by delivery, or shall be accompanied by duly executed undated instruments of transfer or assignment in blank, all in form and substance satisfactory to Administrative Agent.  Notwithstanding the preceding sentence, all Pledged Collateral must be delivered or transferred in such manner, and each Pledgor shall take all such further action as may be requested by Administrative Agent, as to permit Administrative Agent to be a “protected purchaser” to the extent of its security interest as provided in Section 8-303 of the UCC (if Administrative Agent otherwise qualifies as a protected purchaser).

 

(b)                                 Each Pledgor hereby authorizes Administrative Agent to file one or more UCC financing or continuation statements, and amendments thereto (or similar documents required by any laws of any applicable jurisdiction), relating to all or any part of the Pledged Collateral without the signature of such Pledgor (to the extent such signature is required under the laws of any applicable jurisdiction).

 

5.                                      Representations and Warranties.  Each Pledgor represents and warrants as follows:

 

(a)                                 Exhibit A attached hereto completely and accurately identifies, as of the Closing Date, (i) the number of issued and outstanding equity interests of each Issuer held by each Pledgor and (ii) the percentage of each Pledgor’s ownership of the aggregate issued and outstanding equity interests of each Issuer.  Each Pledged Security has been duly and validly authorized and issued to each Pledgor and, if applicable, is fully paid and non-assessable.

 

(b)                                 The delivery of the Pledged Securities to Administrative Agent (or First Lien Agent as required pursuant to the terms of the First/Second Lien Intercreditor Agreement) pursuant to this Agreement (and, with respect to Pledged Securities consisting of membership interests or partnership interests that are not “securities” under Article 8 of the UCC, the filing in the appropriate filing office of a UCC financing statement describing the same as collateral), is effective to create a valid and perfected second priority security interest in the Pledged Collateral, free of any adverse claim, securing the payment of the Obligations. Subject only to the consummation of the delivery described in the immediately preceding sentence (and, if applicable, the filing of a financing statement described in such sentence), Administrative Agent, for the benefit of the Secured Parties, has a valid and perfected second priority security interest in the Pledged Collateral, securing the payment of the Obligations, and such security interest is

 

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entitled to all of the rights, priorities and benefits afforded by the UCC or other applicable law as enacted in any relevant jurisdiction which relates to perfected security interests.

 

(c)                                  To the extent any Pledged Security consisting of either (i) a membership interest in an Issuer that is a limited liability company or (ii) a partnership interest in an Issuer that is a partnership, such Pledged Security shall, by its terms, provide that it is a “security” governed by Article 8 of the UCC.

 

(d)                                 This Agreement constitutes a valid and binding obligation of each Pledgor, enforceable against such Pledgor in accordance with its terms, except as enforcement may be limited by bankruptcy, insolvency, or similar laws relating to the enforcement of creditors’ rights generally and by general equitable principles.

 

(e)                                  No authorization, approval or other action by, and no notice to or filing with, any domestic or foreign governmental authority or regulatory body or consent of any other Person is required for (i) the pledge and grant of a security interest by each Pledgor pursuant to this Agreement, (ii) the execution, delivery or performance of this Agreement by each Pledgor or (iii) the exercise by Administrative Agent of its rights and remedies hereunder (except as may have been taken by or at the direction of such Pledgor or Administrative Agent and except as may be required in connection with any disposition of the Pledged Collateral by laws affecting the offering and sale of securities generally).  Except for the filing of a UCC financing statement in the case of any Pledged Securities consisting of membership interests or partnership interests that are not “securities” under Article 8 of the UCC, no authorization, approval or other action by, and no notice to or filing with, any domestic or foreign governmental authority or regulatory body or consent of any other Person is required for the perfection of Administrative Agent’s security interest in the Pledged Collateral.

 

(f)                                   None of the Pledged Securities constitutes margin stock, as defined in Regulation T, U or X of the Board of Governors of the Federal Reserve System.

 

(g)                                  All information heretofore, herein or hereafter supplied to Administrative Agent by or on behalf of each Pledgor with respect to the Pledged Collateral is and will be accurate and complete in all material respects.

 

(h)                                 Each Pledgor has caused each Issuer to record on its books and records that the Pledged Securities are subject to the pledge and security interest created hereby.

 

(i)                                     All representations and warranties of each Pledgor contained in this Agreement shall survive the execution and delivery of this Agreement.

 

6.                                      Covenants; Further Assurances.

 

(a)                                 Each Pledgor shall, from time to time, at its expense, promptly execute and deliver all further instruments, documents and notices and take all further action that Administrative Agent or Lenders may reasonably request, in order to create, perfect and protect any security interest granted or purported to be granted by this Agreement or to enable Administrative Agent to exercise and enforce its rights and remedies hereunder.  Without limiting the generality of the foregoing, each Pledgor will, upon Administrative Agent or

 

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Lenders’ request, appear in and defend any action or proceeding that may affect each Pledgor’s title to or Administrative Agent’s security interest in the Pledged Collateral.

 

(b)                                 Each Pledgor shall furnish to Administrative Agent, from time to time upon request, statements and schedules further identifying, updating, and describing the Pledged Collateral and such other information, reports and evidence concerning the Pledged Collateral as Administrative Agent or Lenders may reasonably request, all in reasonable detail.

 

(c)                                  Each Pledgor shall not change its name, type of organization or jurisdiction of organization.

 

(d)                                 Except as otherwise permitted herein or by the Credit Agreement, each Pledgor shall not (i) sell, assign (by operation of law or otherwise), or otherwise dispose of, or grant any option or similar right with respect to, any of the Pledged Collateral; or (ii) create or suffer to exist any Lien upon or with respect to any of the Pledged Collateral except for the Lien in favor of Administrative Agent securing the Obligations and, to the extent permitted by the Credit Agreement, Liens in favor of the First Lien Agent.  In addition, each Pledgor shall not use or permit the use of any Pledged Collateral in violation of any provision of applicable law and shall not do anything to impair the rights of Administrative Agent in any of the Pledged Collateral.

 

(e)                                  Except as otherwise permitted herein or by the Credit Agreement, each Pledgor agrees that it will not vote to enable, and will not otherwise permit, any Issuer to (i) issue any stock, membership interests or other securities (including any warrants, options, subscriptions or the like for the purchase of stock, membership interests or other securities), in addition to or in substitution for any of the Pledged Securities to any Person other than the Pledgors or a Wholly-Owned Subsidiary of the Pledgors or (ii) dissolve, liquidate, retire any of its stock or membership interests, reduce its capital or merge or otherwise consolidate with any other Person.

 

(f)                                   If, while this Agreement is in effect, the Pledgors shall become entitled to receive or shall receive any shares of Capital Stock, membership interests, partnership interests or any other equity interests of any Issuer, the Pledgors agree, in each case, to accept the same as Administrative Agent’s agent and to hold the same in trust for Administrative Agent, and to deliver the same forthwith to Administrative Agent (or First Lien Agent as required pursuant to the terms of the First/Second Lien Intercreditor Agreement) in the exact form received, with the endorsement of the Pledgors where necessary and/or with duly executed undated instruments of transfer or assignment, in blank, all in form and substance satisfactory to Administrative Agent, to be held by Administrative Agent (or First Lien Agent as required pursuant to the terms of the First/Second Lien Intercreditor Agreement), subject to the terms hereof, as part of the Pledged Securities.  Each Pledgor shall promptly deliver to Administrative Agent a Pledge Supplement, duly executed by such Pledgor, with respect to such additional equity interests.  Each Pledgor hereby authorizes Administrative Agent to attach each Pledge Supplement to this Agreement.

 

(g)                                  Each Pledgor shall at all times cause any membership interest or partnership interest comprising the Pledged Collateral to be a “security” within the meaning of, and to be governed by Article 8 of the UCC as in effect under the laws of any state having

 

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jurisdiction and shall not cause or permit any Issuer to “opt out” or to take any other action seeking to establish that any membership interest or partnership interest of the Pledged Collateral is not as a “security” or is not be certificated.

 

7.                                       [Reserved].

 

8.                                      Additional Pledgors.  The initial Pledgors hereunder shall be the Persons that are signatories hereto.  From time to time subsequent to the date hereof, additional Persons may become parties hereto as additional Pledgors (each an “Additional Pledgor”) by executing a Pledge Supplement in the form of Exhibit B attached hereto (or such other form as may be satisfactory to the Lead Lenders and Administrative Agent).  Upon delivery of any such Pledge Supplement to Administrative Agent, notice of which is hereby waived by Pledgors, each such Additional Pledgor shall be a Pledgor and shall be a party hereto as if such Additional Pledgor were an original signatory hereof.  Each Pledgor expressly agrees that its obligations arising hereunder shall not be affected or diminished by the addition or release of any other Pledgor hereunder, or by any election by Administrative Agent or any Lenders not to cause any Subsidiary of the Borrower to become an Additional Pledgor hereunder.  This Agreement shall be fully effective as to any Pledgor that is or becomes a party hereto regardless of whether any such Person becomes or fails to become or ceases to be a Pledgor hereunder.

 

9.                                      Voting Rights; Dividends; Etc.

 

(a)                                 So long as no Event of Default has occurred and is then continuing:

 

(i)                                     Each Pledgor shall be entitled to exercise any and all voting and other consensual rights pertaining to the Pledged Collateral, or any part thereof, for any purpose not inconsistent with the terms of this Agreement or the Credit Agreement; and

 

(ii)                                  To the extent permitted under the Credit Agreement, each Pledgor shall be entitled to receive all distributions, dividends (in the form of cash, securities or otherwise), cash, instruments, chattel paper and other rights, property or proceeds and products from time to time received, receivable or otherwise distributed in respect of the Pledged Collateral.

 

(b)                                 At any time that an Event of Default has occurred and is then continuing:

 

(i)                                     All rights of each Pledgor to exercise voting and other consensual rights in respect of the Pledged Collateral shall immediately cease to be effective and all such voting and other consensual rights shall become vested in Administrative Agent (or First Lien Agent as provided in the First/Second Lien Intercreditor Agreement) and Administrative Agent (or First Lien Agent as provided in the First/Second Lien Intercreditor Agreement) shall thereupon have the sole right to exercise such voting and other consensual rights (including, without limitation, the right to vote in favor of, and to exchange any or all of the Pledged Collateral upon, the consolidation, recapitalization, merger or other reorganization with respect to an Issuer). In order to effect the foregoing, each Pledgor hereby grants to Administrative Agent an irrevocable proxy to vote the Pledged Collateral and, any time that an Event of Default exists, each Pledgor agrees to execute such other proxies as Administrative Agent may request; and

 

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(ii)                                  All rights of each Pledgor to receive and retain any distributions, dividends (in the form of cash, securities or otherwise), instruments, chattel paper or other property paid or payable with respect to any of the Pledged Collateral shall immediately cease and any such distributions, dividends (in the form of cash, securities or otherwise), instruments, chattel paper or other property paid or payable with respect to any of the Pledged Collateral shall be paid to Administrative Agent (for application to the Obligations as set forth in Section 15, with respect to any cash or cash equivalents, or to be held by Administrative Agent as additional security for the Obligations, with respect to any other type of property).  Any distributions, dividends (in the form of cash, securities or otherwise), instruments, chattel paper or other property paid or payable with respect to any of the Pledged Collateral and received by each Pledgor contrary to the provisions of this Agreement, and not required to be remitted to the First Lien Agent for the payment of First Lien Debt in accordance with the First Lien Credit Agreement and the First/Second Lien Intercreditor Agreement, shall be received in trust for the benefit of Administrative Agent, shall be segregated from other assets (including, in the case of cash or cash equivalents, other funds), of the Pledgors and shall be forthwith paid to Administrative Agent (for application to the Obligations as set forth in Section 15, with respect to any cash or cash equivalents, or to be held by Administrative Agent as additional security for the Obligations, with respect to any other type of property).

 

10.                               Administrative Agent Appointed Attorney-in-Fact.  Each Pledgor hereby irrevocably appoints Administrative Agent, its nominee, and any other Person whom Administrative Agent may designate, as each Pledgor’s attorney-in-fact, with full power during the existence of any Event of Default, to take any action (including the completion and presentation of any proxy) and to execute any instrument that such attorney-in-fact may deem necessary or advisable to accomplish the purposes of this Agreement, including, without limitation, to (i) receive, endorse and collect all instruments (or other property, as applicable), made payable to each Pledgor representing any distribution in respect of the Pledged Collateral or any part thereof; (ii) exercise the voting and other consensual rights pertaining to the Pledged Collateral; and (iii) sell, transfer, pledge, make any agreement with respect to or otherwise deal with any of the Pledged Collateral as fully and completely as though such attorney-in-fact was the absolute owner thereof for all purposes, and to do, at such attorney-in-fact’s option and each Pledgor’s expense, at any time or from time to time, all acts and things that such attorney-in-fact deems necessary to protect, preserve or realize upon the Pledged Collateral.  Each Pledgor hereby ratifies and approves all acts of any such attorney-in-fact made or taken pursuant to this Section 10 and agrees that neither Administrative Agent nor any other Person designated as an attorney-in-fact by Administrative Agent shall be liable for any acts, omissions, errors of judgment or mistakes of fact or law (other than, and only to the extent of, such Person’s gross negligence or willful misconduct as determined by a final non-appealable judgment of a court of competent jurisdiction).  The foregoing powers of attorney, being coupled with an interest, are irrevocable until the Obligations have been fully paid.

 

11.                               Administrative Agent May Perform.  If any Pledgor fails to perform any agreement contained herein, Administrative Agent may itself perform, or cause performance of, such agreement, and the expenses of Administrative Agent incurred in connection therewith shall be payable by any Pledgor under Section 16 hereof, and be a part of the Obligations.

 

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12.                               Limitation on Duty of Administrative Agent with Respect to the Pledged Collateral.  Beyond the safe custody thereof, each Pledgor agrees that Administrative Agent shall have no duties concerning the custody and preservation of any Pledged Collateral in its possession (or in the possession of any agent of Administrative Agent), or with respect to any income thereon or the preservation of rights against prior parties or any other rights pertaining thereto.  Administrative Agent shall be deemed to have exercised reasonable care in the custody and preservation of the Pledged Collateral in its possession if the Pledged Collateral is accorded treatment substantially equal to that which it accords its own property.  Administrative Agent shall not be liable or responsible for any loss or damage to any of the Pledged Collateral, or for any diminution in the value thereof, by reason of the act or omission of any agent selected by Administrative Agent in good faith.  It is expressly agreed that Administrative Agent shall have no responsibility for (i) ascertaining or taking action with respect to calls, conversions, exchanges, maturities, tenders or other matters relative to any Pledged Collateral, whether or not Administrative Agent has or is deemed to have knowledge of such matters, or (ii) taking any necessary steps to preserve rights against any parties with respect to any Pledged Collateral, but Administrative Agent may do so and all expenses incurred in connection therewith shall be payable by and for the sole account of each Pledgor.

 

13.                               Remedial Provisions.

 

(a)                                 Upon the occurrence and during the continuance of an Event of Default, Administrative Agent and its attorneys may exercise in respect of the Pledged Collateral, in addition to other rights and remedies provided for herein or otherwise available to it, all the rights and remedies of a secured party under the UCC (whether or not the UCC applies to the affected Pledged Collateral), and Administrative Agent may also, without demand, advertisement or notice of any kind (other than the notice specified below relating to a public or private sale), sell the Pledged Collateral or any part thereof in one or more portions at one or more public or private sales or dispositions, at any exchange, broker’s board or at any of Administrative Agent’s offices (or those of Administrative Agent’s attorneys), or elsewhere, for cash, on credit, or for future delivery, at such price or prices and upon such other terms as Administrative Agent deems advisable.  Each Pledgor agrees that, to the extent notice of sale shall be required by law, at least ten (10) days’ notice to such Pledgor of the time and place of any public sale or the time after which any private sale is to be made shall constitute reasonable notification of such matters; provided, that no notification need be given to such Pledgor if it has authenticated after default a statement renouncing or modifying any right to notification of sale or other intended disposition.  At any sale of the Pledged Collateral, if permitted by law, Administrative Agent may bid (which bid may be, in whole or in part, in the form of cancellation of indebtedness), for the purchase of the Pledged Collateral or any portion thereof free of any right or equity of redemption in each Pledgor.  Administrative Agent shall not be obligated to make any sale of Pledged Collateral regardless of notice of sale having been given.  Administrative Agent may adjourn any public or private sale from time to time by announcement at the time and place fixed therefor, and such sale may, without further notice, be made at the time and place to which it was so adjourned.

 

(b)                                 Each Pledgor recognizes that Administrative Agent may be unable to effect a public sale of all or part of the Pledged Collateral and may be compelled to resort to one or more private sales to a restricted group of purchasers who will be obligated to agree, among

 

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other things, to acquire such Pledged Collateral for their own account, for investment and not with a view to the distribution or resale thereof.  Each Pledgor acknowledges that any such private sales may be at prices and on terms less favorable to the seller than if sold at public sales and agrees that such private sales shall be deemed to have been made in a commercially reasonable manner, and that Administrative Agent shall be under no obligation to delay a sale of any of the Pledged Collateral for the period of time necessary to permit the Issuer of such Pledged Collateral to register such securities for public sale under the Securities Act of 1933, or under any other applicable requirement of law, even if such Issuer would agree to do so. To the extent permitted by law, each Pledgor hereby specifically waives (and, as applicable, releases), any right or equity of redemption, and any right of stay or appraisal, which such Pledgor has or may have under any law now existing or hereafter enacted.

 

(c)                                  Each Pledgor acknowledges that neither Administrative Agent nor any of the Lenders shall be liable for any failure or delay in realizing upon or collecting the Obligations, or any guaranty thereof or collateral security therefore; and each Pledgor further acknowledges that neither Administrative Agent nor any Lender shall have any duty to take any action with respect thereto.

 

14.                               Remedies Cumulative.  No failure on the part of Administrative Agent to exercise, and no delay in exercising and no course of dealing with respect to, any power, privilege or right under this Agreement or any other Financing Document shall operate as a waiver thereof; nor shall any single or partial exercise by Administrative Agent of any power, privilege or right under this Agreement or any other Financing Document preclude any other or further exercise thereof or the exercise of any other such power, privilege or right.  The powers, privileges and rights in this Agreement and the other Financing Documents are cumulative and are not exclusive of any other remedies provided by law.

 

15.                               Application of Proceeds.  Upon the occurrence and during the continuance of an Event of Default, the proceeds of any sale or disposition of, or other realization upon, all or any part of the Pledged Collateral shall be applied in a manner consistent with the provisions of Section 8.6 of the Credit Agreement.  Any excess balance remaining shall be delivered to each Pledgor, and each Pledgor shall remain liable for any deficiency remaining unpaid after the foregoing application.

 

16.                               Expenses.  Without limiting each Pledgor’s obligations under the Credit Agreement or any other Financing Document, each Pledgor hereby agrees to promptly pay all fees, costs and expenses (including attorney’s fees and expenses), in connection with (a) maintaining the Pledged Collateral, (b) creating, perfecting, protecting and enforcing Administrative Agent’s Lien on the Pledged Collateral, (c) selling or otherwise disposing of the Pledged Collateral, (d) paying any amount required under any provision of applicable law (including, without limitation, Section 9-615(a)(3) of the UCC) or (e) any other matters contemplated by or arising out of this Agreement with respect to the Pledged Collateral.  If any Pledgor fails to promptly pay any portion of the above fees, costs and expenses when due or to perform any other obligation of such Pledgor under this Agreement, Administrative Agent or any Lender may, at its option, but shall not be required to, pay or perform the same and charge such Pledgor’s account for all fees, costs and expenses incurred therefor, and such Pledgor agrees to reimburse Administrative Agent or such Lender therefor on demand.  All sums so paid or

 

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incurred by Administrative Agent or any Lender for any of the foregoing, any and all other sums for which any Pledgor may become liable hereunder and all fees, costs and expenses (including attorneys’ fees, legal expenses and court costs) incurred by Administrative Agent or any Lender in enforcing or protecting any of their rights or remedies under this Agreement shall be payable on demand, shall constitute Obligations, shall bear interest until paid at the highest rate provided in the Credit Agreement and shall be secured by the Pledged Collateral. Notwithstanding the forgoing, it is understood and agreed that the expense provisions of Section 9.1 of the Credit Agreement shall be incorporated herein as is specifically set forth herein, mutatis mutandis.

 

17.                               Termination of Lien; Release of Pledged Collateral.  Administrative Agent and Lenders agree that upon payment in full of all Obligations, the Lien provided for hereunder shall terminate and all rights to the Pledged Collateral shall revert to each Pledgor.  Administrative Agent and Lenders further agree that upon such termination, Administrative Agent shall, at the expense of the Pledgors, execute and deliver to the Pledgors such documents as the Pledgors shall reasonably request to evidence such termination.

 

18.                               Changes in Writing.  No amendment, modification, termination or waiver of any provision of this Agreement shall be effective except by a written instrument executed by the affected Pledgor(s) and Administrative Agent in accordance with Section 11.5 of the Credit Agreement; provided, however, that this Agreement may be supplemented (but no existing provisions may be modified and no Collateral may be released) through agreements substantially in the form of Exhibit B, in each case duly executed by each Pledgor directly affected thereby.

 

19.                               Notices.  All notices, approvals, requests, demands and other communications hereunder shall be given in accordance with the notice provision of the Credit Agreement.

 

20.                               Successors and Assigns.  This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns, except that the Pledgors may not assign their rights or obligations hereunder without the prior written consent of Administrative Agent.  No sales of participations, other sales, assignments, transfers or other dispositions of any agreement governing or instrument evidencing the Obligations or any portion thereof or interest therein shall in any manner impair the Lien granted to Administrative Agent, for the benefit of the Secured Parties, hereunder.

 

21.                               Waivers.  In addition to, and not in lieu of, any other waivers herein, each Pledgor waives to the greatest extent it may lawfully do so, and agrees that it shall not at any time insist upon, plead or in any manner whatever claim or take the benefit or advantage of, any appraisal, valuation, stay, extension, marshalling of assets, redemption or similar law, or exemption, whether now or at any time hereafter in force, which may delay, prevent or otherwise affect the performance by each Pledgor of its obligations under, or the enforcement by Administrative Agent of, this Agreement.  Each Pledgor hereby waives diligence, presentment and demand (whether for nonpayment or protest or of acceptance, maturity, extension of time, change in nature or form of the Obligations, acceptance of further security, release of further security, composition or agreement arrived at as to the amount of, or the terms of the Obligations, notice of adverse change in any Person’s financial condition or any other fact which might materially increase the risk to each Pledgor), with respect to any of the Obligations or all other demands

 

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whatsoever and waives the benefit of all provisions of law which are or might be in conflict with the terms of this Agreement.

 

22.                               Indemnity.  Each Pledgor hereby agrees to indemnify, pay and hold harmless Administrative Agent and the Lenders and the officers, directors, employees and counsel of Administrative Agent and the Lenders (collectively called the “Indemnitees”), from and against any and all liabilities, obligations, losses, damages, penalties, actions, judgments, suits, claims, costs, expenses and disbursements of any kind or nature whatsoever (including the fees and disbursements of counsel for such Indemnitee), in connection with any investigative, administrative or judicial proceeding, whether or not such Indemnitee shall be designated a party thereto and including any such proceeding initiated by or on behalf of any Pledgor or an Issuer, which may be imposed on, incurred by or asserted against such Indemnitee as a result of or in connection with this Agreement or the enforcement by Administrative Agent or any Lender of its rights and remedies hereunder, except that each Pledgor shall have no obligation hereunder to an Indemnitee with respect to any liability resulting from the gross negligence or willful misconduct of such Indemnitee, as determined by a final non-appealable judgment of court of competent jurisdiction.  To the extent that the undertaking set forth in the immediately preceding sentence may be unenforceable, each Pledgor shall contribute the maximum portion which it is permitted to pay and satisfy under applicable law to the payment and satisfaction of all such indemnified liabilities incurred by the Indemnitees or any of them.  The obligations to indemnify and pay the Indemnitees for fees and disbursements of counsel in connection with any litigation, dispute, suit or proceeding relating to any Financing Document and in connection with any workout, collection, bankruptcy, insolvency and other enforcement proceedings under any and all Financing Documents shall be limited as provided in Section 9.1 of the Credit Agreement.  Notwithstanding the forgoing, it is understood and agreed that the indemnity provisions of Section 9.2 of the Credit Agreement shall be incorporated herein as is specifically set forth herein, mutatis mutandis.

 

23.                               GOVERNING LAW; SUBMISSION TO JURISDICTION.  THIS AGREEMENT SHALL BE GOVERNED BY, AND SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO CONFLICTS OF LAWS PRINCIPLES.  EACH PLEDGOR HEREBY CONSENTS TO THE JURISDICTION OF ANY STATE OR FEDERAL COURT LOCATED WITHIN THE BOROUGH OF MANHATTAN, CITY OF NEW YORK, STATE OF NEW YORK AND IRREVOCABLY AGREES THAT, SUBJECT TO ADMINISTRATIVE AGENT’S ELECTION, ALL ACTIONS OR PROCEEDINGS ARISING OUT OF OR RELATING TO THIS AGREEMENT SHALL BE LITIGATED IN SUCH COURTS.  EACH PLEDGOR EXPRESSLY SUBMITS AND CONSENTS TO THE JURISDICTION OF THE AFORESAID COURTS AND WAIVES ANY DEFENSE OF FORUM NON CONVENIENS.  EACH PLEDGOR HEREBY WAIVES PERSONAL SERVICE OF ANY AND ALL PROCESS AND AGREES THAT ALL SUCH SERVICE OF PROCESS MAY BE MADE UPON EACH PLEDGOR BY CERTIFIED OR REGISTERED MAIL, RETURN RECEIPT REQUESTED, ADDRESSED TO EACH PLEDGOR IN ACCORDANCE WITH THE PROVISIONS OF SECTION 19 HEREOF AND SERVICE SO MADE SHALL BE DEEMED TO BE COMPLETE TEN (10) DAYS AFTER THE SAME HAS BEEN POSTED.

 

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24.                               WAIVER OF JURY TRIAL.  EACH OF THE PLEDGORS AND ADMINISTRATIVE AGENT HEREBY IRREVOCABLY WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY AND AGREES THAT ANY SUCH ACTION OR PROCEEDING SHALL BE TRIED BEFORE A COURT AND NOT BEFORE A JURY.

 

25.                               Counterparts; Integration.  This Agreement may be signed in any number of counterparts, each of which shall be an original, with the same effect as if the signatures thereto and hereto were upon the same instrument.  Delivery of an executed signature page by facsimile or other electronic transmission (e.g. “pdf” or “tif” format) shall be effective as delivery of a manually executed counterparty hereof.  This Agreement constitutes the entire agreement and understanding among the parties hereto and supersedes any and all prior agreements and understandings, oral or written, relating to the subject matter hereof.

 

26.                               Intercreditor Agreement.  Notwithstanding anything herein to the contrary, (i) the liens and security interests granted to the Administrative Agent for the benefit of the Secured Parties pursuant to this Agreement are expressly subject and subordinate to the liens and security interests granted to Wilmington Trust, National Association, as collateral agent (and its permitted successors), for the benefit of the secured parties referred to below, pursuant to the Security Agreement, dated as of May 22, 2015, (as amended, restated, amended and restated, supplemented or otherwise modified from time to time), from the Borrower and the other “Obligors” referred to therein, in favor of Wilmington Trust, National Association, as collateral agent for the benefit of the secured parties referred to therein and other First Lien Collateral Documents (as defined in the First/Second Lien Intercreditor Agreement) and to the liens and security interests granted to any Other First Priority Lien Obligations Agent (as defined in the First/Second Lien Intercreditor Agreement) pursuant to any Other First Priority Lien Obligations Security Document (as defined in the First/Second Lien Intercreditor Agreement) (as amended, supplemented or otherwise modified from time to time), and (ii) the exercise of any right or remedy by the Administrative Agent hereunder is subject to the limitations and provisions of the First/Second Lien Intercreditor Agreement. In the event of any conflict between the terms of the First/Second Lien Intercreditor Agreement and the terms of this Agreement, the terms of the First/Second Lien Intercreditor Agreement shall govern.

 

27.                               Headings.  Headings and captions used in this Agreement are included for convenience of reference and shall not be given any substantive effect.

 

28.                               General Terms and Conditions.  In addition to and without limitation of any of the foregoing, this Agreement shall be deemed to be a Financing Document and shall otherwise be subject to all of general terms and conditions contained in Article 11 of the Credit Agreement, mutatis mutandi.

 

12

 

Witness the due execution hereof by the respective duly authorized officer of the undersigned as of the day first above written.

 

	
 
    	
WARREN RESOURCES, INC.,   a Maryland 
    
	
 
    	
corporation, as Pledgor
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Stewart P. Skelly
    
	
 
    	
Name:
    	
Stewart P. Skelly
    
	
 
    	
Title:
    	
Vice President and   Chief Financial Officer
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
WARREN RESOURCES OF   CALIFORNIA, INC.,
    
	
 
    	
a California   corporation, as Pledgor
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
WARREN E&P, INC.,   a New Mexico corporation, as
    
	
 
    	
Pledgor
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
WARREN MARCELLUS LLC, a   Delaware limited
    
	
 
    	
liability company, as   Pledgor
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Stewart P. Skelly
    
	
 
    	
Name:
    	
Stewart P. Skelly
    
	
 
    	
Title:
    	
Vice President and   Treasurer
    

 

[SIGNATURE PAGE TO PLEDGE AGREEMENT]

 

 

	
 
    	
CORTLAND PRODUCTS CORP.,
    
	
 
    	
as Administrative Agent
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Emily Ergang Pappas
    
	
 
    	
 
    	
Name: Emily Ergang   Pappas
    
	
 
    	
 
    	
Title: Associate   Counsel
    

 

[SIGNATURE PAGE TO PLEDGE AGREEMENT]

 

 

Exhibit A

 

Identification of Pledged Securities

 

	
Pledgor
    	
 
    	
Issuer
    	
 
    	
Class or 
   Other 
   Description 
   of Pledged 
   Securities
    	
 
    	
Certificate 
   Number (if 
   applicable)
    	
 
    	
Number of 
   Pledged 
   Securities
    	
 
    	
Total 
   Outstanding 
   Securities
    	
 
    	
Percentage 
   of Total 
   Outstanding 
   Securities 
   Pledged
    
	
Warren   Resources, Inc.
    	
 
    	
Warren Resources of   California, Inc., a California corporation
    	
 
    	
Common stock
    	
 
    	
2
    	
 
    	
100
    	
 
    	
100
    	
 
    	
100%
    
	
Warren   Resources, Inc.
    	
 
    	
Warren   E&P, Inc., a New Mexico corporation
    	
 
    	
Common stock
    	
 
    	
1
    	
 
    	
223,662
    	
 
    	
223,662
    	
 
    	
100%
    
	
Warren   Resources, Inc.
    	
 
    	
Warren Marcellus LLC, a   Delaware limited liability company
    	
 
    	
Membership   interests
    	
 
    	
N/A
    	
 
    	
N/A
    	
 
    	
N/A
    	
 
    	
100%
    

 

 

Exhibit B

 

Pledge Supplement

 

This Pledge Supplement is dated as of                   , 20       and is provided in accordance with the terms of the Pledge Agreement referenced below.  The undersigned directs that this Pledge Supplement be attached to the Pledge Agreement, dated as of October 22, 2015, between the undersigned and Cortland Products Corp., a Delaware corporation, in its capacity as Administrative Agent (the “Pledge Agreement”; capitalized terms used and not defined herein having the meanings assigned thereto in the Pledge Agreement), and that the equity interests listed below shall be deemed to be part of the Pledged Collateral.

 

[The undersigned agrees by its signature below to become a Pledgor under the Pledge Agreement with the same force and effect as if originally named therein as a Pledgor, and the undersigned hereby agrees to all the terms and provisions of the Pledge Agreement applicable to it as a Pledgor thereunder.]

 

The undersigned hereby certifies that the representations and warranties in Section 5 of the Pledge Agreement are and continue to be true and correct, both as to the shares, instruments and any other property pledged prior to this Pledge Supplement and as to the shares, instruments and any other property pledged pursuant to this Pledge Supplement.

 

The undersigned hereby represents and warrants that Exhibit A attached hereto completely and accurately identifies, as of the date set forth above, (i) the number of issued and outstanding equity interests of each Issuer held by the undersigned and (ii) the percentage of the undersigned’s ownership of the aggregate issued and outstanding equity interests of each Issuer.  Each Pledged Security has been duly and validly authorized and issued to the undersigned and, if applicable, is fully paid and non-assessable.

 

The undersigned further agrees that this Pledge Supplement may be attached to the Pledge Agreement and that the Pledged Securities listed on this Pledge Supplement are a part of the Pledged Securities referred to in the Pledge Agreement and shall secure all Obligations referred to in the Pledge Agreement.

 

This Pledge Supplement may be signed in any number of counterparts, each of which shall be an original, with the same effect as if the signatures thereto and hereto were upon the same instrument.  Delivery of an executed signature page by facsimile or other electronic transmission (e.g. “pdf” or “tif” format) shall be effective as delivery of a manually executed counterparty hereof.  This Pledge Supplement constitutes the entire agreement and understanding among the parties hereto and supersedes any and all prior agreements and understandings, oral or written, relating to the subject matter hereof.

 

THIS PLEDGE SUPPLEMENT 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.

 

 

Any provision of this Pledge Supplement 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 in the Pledge Agreement, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.  The parties hereto shall endeavor in good-faith negotiations to replace the invalid, illegal or unenforceable provisions with valid provisions the economic effect of which comes as close as possible to that of the invalid, illegal or unenforceable provisions.

 

All notices, requests and demands pursuant hereto shall be made in accordance with Section 19 of the Pledge Agreement.  All communications and notices hereunder to each party that becomes a Pledgor pursuant to this Pledge Supplement shall be given to it in care of the Borrower as contemplated by Section 11.3 of the Credit Agreement.

 

In witness whereof, the undersigned and Administrative Agent have duly executed this Pledge Supplement as of the date first written above.

 

	
 
    	
[NAME OF PLEDGOR],   a [·], as Pledgor
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
[      ], as Administrative   Agent
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    

 

 

Exhibit A to Pledge Supplement

 

Identification of Pledged Securities

 

	
Pledgor
    	
 
    	
Issuer
    	
 
    	
Class or 
   Other 
   Description 
   of Pledged 
   Securities
    	
 
    	
Certificate 
   Number (if 
   applicable)
    	
 
    	
Number of 
   Pledged 
   Securities
    	
 
    	
Total 
   Outstanding 
   Securities
    	
 
    	
Percentage 
   of Total 
   Outstanding 
   Securities 
   PledgedExhibit 10.55

 

GUARANTY

 

October 22, 2015

 

THIS GUARANTY (as amended, restated, amended and restated, supplemented or otherwise modified from time to time, this “Guaranty”) is dated as of October 22, 2015 and is made by WARREN RESOURCES OF CALIFORNIA, INC., a California corporation (“Warren  California”), WARREN E&P, INC., a New Mexico corporation (“Warren E&P”), and WARREN MARCELLUS LLC, a Delaware limited liability company (“Warren Marcellus” and together with Warren California, Warren E&P and any other entity that becomes a party hereto from time to time after the date hereof as provided herein, the “Guarantors”), in favor of CORTLAND PRODUCTS CORP., in its capacity as administrative agent under the Credit Agreement described below (“Administrative Agent”).

 

W I T N E S S E T H

 

WHEREAS, the Warren Resources, Inc., a Maryland corporation (the “Borrower”), is party to that certain Second Lien Credit Agreement (as amended, restated, amended and restated, supplemented or otherwise modified in writing from time to time, the “Credit Agreement”; capitalized terms used and not otherwise defined herein shall have the respective meanings provided for in the Credit Agreement) dated as of even date herewith among the Borrower, the financial institutions or other entities from time to time party thereto (the “Lenders”) and the Administrative Agent;

 

WHEREAS, each Guarantor is a Subsidiary of the Borrower; and

 

WHEREAS, as one of the conditions to making Loans and other financial accommodations available to Borrower under the Credit Agreement, the Lenders have required that each of the Guarantors guaranty the Obligations of Borrower to Administrative Agent and the Lenders.

 

NOW, THEREFORE, in consideration of the foregoing, and in order to induce Lenders to make the Loans and other financial accommodations available to the Borrower under the Credit Agreement, each Guarantor hereby agrees with Administrative Agent, for its benefit and the benefit of Lenders, as follows:

 

I.             GUARANTY

 

For value received, and in consideration of any loan, advance or financial accommodation of any kind whatsoever heretofore, now or hereafter made, given or granted to Borrower by Administrative Agent or any Lender, each Guarantor jointly and severally hereby unconditionally guaranties the full and prompt payment and performance when due, whether at maturity or earlier, by reason of acceleration or otherwise, and at all times thereafter, of all of the Obligations.  Without limiting the foregoing, the Obligations guaranteed hereby include all fees, costs and expenses (including attorneys’ fees and expenses), incurred by Administrative Agent or any Lender in attempting to collect any amount due under this Guaranty (or otherwise enforcing this Guaranty), or in prosecuting any action against Borrower, any Guarantor or any other guarantor of all or part of the Obligations and all interest, fees, costs and expenses owing to

 

 

Administrative Agent or any Lender after the commencement of bankruptcy proceedings with respect to Borrower, any Guarantor or any other guarantor of all or part of the Obligations (whether or not the same may be collected while such proceedings are pending).

 

If Borrower shall for any reason fail to pay any Obligation, as and when such Obligation shall become due and payable, whether at its stated maturity, as a result of the exercise of any power to accelerate, or otherwise, each Guarantor will, upon demand by Administrative Agent, pay such Obligation in full to Administrative Agent for the benefit of Lenders.  If Borrower shall for any reason fail to perform promptly any Obligation that is not for the payment of money, each Guarantor will, upon demand by Administrative Agent, cause such Obligation to be performed or, if specified by Administrative Agent, provide sufficient funds, in such amount and manner as Administrative Agent shall in good faith determine, for the prompt, full and faithful performance of such Obligation by Administrative Agent or such other Person as Administrative Agent shall designate. Without limiting the generality of the foregoing, each Guarantor will pay all amounts that constitute part of the Obligations and would be owing but for the fact that they are unenforceable or not allowable due to the existence of a bankruptcy, reorganization or similar proceeding.

 

Each Guarantor hereby agrees that this Guaranty is a present and continuing guaranty of payment and not of collection and that its obligations hereunder shall be unconditional, irrespective of (i) the validity or enforceability of the Obligations or any part thereof, or of any of the Financing Documents, (ii) the waiver or consent by Administrative Agent or any Lender with respect to any provision of any Financing Document, or any amendment, modification or other change with respect to any Financing Document, (iii) any merger or consolidation of Borrower, any Guarantor or any other guarantor of all or part of the Obligations into or with any Person or any change in the ownership of the equity of Borrower, any Guarantor or any other guarantor of all or part of the Obligations, (iv) any dissolution of any Guarantor or any insolvency, bankruptcy, liquidation, reorganization or similar proceedings with respect to Borrower, any Guarantor or any other guarantor of all or part of the Obligations, (v) any action or inaction on the part of Administrative Agent or any Lender, including the absence of any attempt to collect the Obligations from Borrower, any Guarantor or any other guarantor of all or part of the Obligations or other action to enforce the same or the failure by Administrative Agent to take any steps to perfect and maintain its Lien on, or to preserve its rights to, any security or collateral for the Obligations, (vi) Administrative Agent’s election, in any proceeding instituted under Chapter 11 of Title 11 of the United States Code (11 U.S.C. Section 101 et seq.), as amended (the “Bankruptcy Code”), of the application of Section 1111(b)(2) of the Bankruptcy Code, (vii) any borrowing or grant of a Lien by Borrower, any Guarantor or any other guarantor of all or part of the Obligations, as debtor-in-possession, under Section 364 of the Bankruptcy Code, (viii) the disallowance, under Section 502 of the Bankruptcy Code, of all or any portion of Administrative Agent’s or any Lender’s claims for repayment of the Obligations, (ix) Administrative Agent’s or any Lender’s inability to enforce the Obligations of Borrower as a result of the automatic stay provisions under Section 362 of the Bankruptcy Code, (x) the discharge or release by Administrative Agent and/or Lenders of any Guarantor’s obligations and liabilities under this Guaranty or (xi) any other circumstance which might otherwise constitute a legal or equitable discharge or defense of Borrower, any Guarantor or any other guarantor of all or part of the Obligations.

 

2

 

This Guaranty is a continuing guaranty and shall remain in full force and effect until the latest of (i) the payment in full in cash of the Obligations and all other amounts payable under this Guaranty; (ii) the date on which all commitments of the Lenders under the Credit Agreement shall terminate and (iii) the latest date of expiration or termination of all commitments under the Credit Agreement.  This Guaranty and each other Financing Document to which any Guarantor is a party shall continue to be effective or be reinstated, as the case may be, if at any time any payment of any Obligation is rescinded or must otherwise be returned by Administrative Agent or any Lender as a result of the insolvency, bankruptcy or reorganization of any Credit Party or otherwise, all as though such payment had not been made, and each Guarantor jointly and severally will pay such amount to the applicable party on demand.  Any transfer by subrogation that is made as contemplated in this Guaranty prior to any such payment shall (regardless of the terms of such transfer), be automatically voided upon the making of any such payment or payments, and all rights so transferred shall thereupon automatically revert to and be vested in Administrative Agent for the benefit of Lenders.

 

Notwithstanding any provision of this Guaranty to the contrary, it is intended that this Guaranty, and any Liens granted by each Guarantor to secure the obligations and liabilities arising pursuant to this Guaranty, not constitute a “Fraudulent Conveyance” (as defined below). Consequently, each Guarantor agrees that if this Guaranty, or any Liens securing the obligations and liabilities arising pursuant to this Guaranty, would, but for the application of this sentence, constitute a Fraudulent Conveyance, this Guaranty and each such Lien shall be valid and enforceable only to the maximum extent that would not cause this Guaranty or such Lien to constitute a Fraudulent Conveyance, and this Guaranty shall automatically be deemed to have been amended accordingly at all relevant times. For purposes hereof, “Fraudulent Conveyance” means a fraudulent conveyance or fraudulent transfer under Section 548 of the Bankruptcy Code or a fraudulent conveyance or fraudulent transfer under the provisions of any applicable fraudulent conveyance or fraudulent transfer law or similar law of any state, nation or other governmental unit, as in effect from time to time.

 

No payment made by or for the account or benefit of any Guarantor (including (i) a payment made by Borrower in respect of the Obligations, (ii) a payment made by any other Guarantor pursuant to this Guaranty, (iii) a payment made by any Person under any other guaranty of the Obligations or (iv) a payment made by means of set-off or other application of funds by Administrative Agent or any Lender), pursuant to this Guaranty shall entitle any Guarantor, by subrogation or otherwise, to any payment by Borrower or from or out of any property of Borrower, and no Guarantor shall exercise any right or remedy against Borrower or any property of Borrower including any right of contribution or reimbursement by reason of any performance by any Guarantor under this Guaranty, until the Obligations have been paid in full and the Credit Agreement has been terminated.

 

Each Guarantor hereby waives diligence, presentment, demand of payment, filing of claims with a court in the event of any bankruptcy proceeding (or other insolvency proceeding), of Borrower, protest or notice with respect to the Obligations and all demands whatsoever, and covenants that this Guaranty will not be discharged, except by complete and irrevocable payment and performance of the obligations and liabilities contained herein.  No notice to any Guarantor or any other party shall be required for Administrative Agent, on behalf of Administrative Agent or any Lender, to make demand hereunder.  Such demand shall constitute a mature and

 

3

 

liquidated claim against each Guarantor.  Upon the occurrence and during the continuance of any Event of Default, Administrative Agent may, at its sole election, proceed directly and at once, without notice, against any Guarantor to collect and recover the full amount or any portion of the Obligations, without first proceeding against Borrower, any other Guarantor, any other Person or any security or collateral for the Obligations.

 

Administrative Agent and Lenders are hereby authorized, without notice or demand to any Guarantor and without affecting or impairing the liability of any Guarantor hereunder, to, from time to time, (i) renew, extend, accelerate or otherwise change the time for payment of, or other terms relating to, the Obligations or otherwise modify, amend or change the terms of any Financing Document, (ii) accept partial payments on the Obligations, (iii) take and hold collateral for the payment of the Obligations, or for the payment of this Guaranty, or for the payment of any other guaranties of the Obligations or other liabilities of Borrower, and exchange, enforce, waive and release any such collateral, (iv) apply such collateral and direct the order or manner of sale thereof as in their sole discretion they may determine and (v) settle, release, compromise, collect or otherwise liquidate the Obligations and any collateral therefor in any manner.

 

During the continuance of any Event of Default, each Lender is hereby authorized by each Guarantor at any time or from time to time, with reasonably prompt subsequent notice to such Guarantor (any prior or contemporaneous notice being hereby expressly waived to the extent permitted by applicable law), to set off and to appropriate and to apply any and all balances and other property at any time held or owing by such Lender (or any branch or agency thereof), to or for the credit or for the account of such Guarantor, against and on account of any of the Obligations; except that no Lender shall exercise any such right without providing prior or contemporaneous notice thereof to Administrative Agent.  Each Guarantor agrees, to the fullest extent permitted by Law, that any Lender (or any branch or agency thereof), may exercise its right to set off with respect to the Obligations as provided in this paragraph.

 

At any time after maturity of the Obligations, Administrative Agent and Lenders may, in their sole discretion, without notice to any Guarantor and regardless of the acceptance of any collateral for the payment hereof, appropriate and apply toward payment of the Obligations (i) any indebtedness due or to become due from Administrative Agent or any Lender to any Guarantor and (ii) any moneys, credits or other property belonging to any Guarantor at any time held by or coming into the possession of Administrative Agent or any Lender or any Affiliates thereof, whether for deposit or otherwise.

 

Each Guarantor hereby assumes responsibility for keeping itself informed of the financial condition of Borrower, and any and all endorsers and other guarantors of all or any part of the Obligations and of all other circumstances bearing upon the risk of nonpayment of the Obligations or any part thereof that diligent inquiry would reveal, and each Guarantor hereby agrees that neither Administrative Agent nor any Lender shall have any duty to advise any Guarantor of information known to such Administrative Agent or Lender regarding such condition or any such circumstances.  Each Guarantor hereby acknowledges familiarity with Borrower’s financial condition and that it has not relied on any statements by Administrative Agent or any Lender in obtaining such information. In the event Administrative Agent or any Lender, in its sole discretion, undertakes at any time or from time to time to provide any such

 

4

 

information to any Guarantor, neither Administrative Agent nor any Lender shall be under any obligation (i) to undertake any investigation with respect thereto, (ii) to disclose any information which, pursuant to accepted or reasonable commercial finance practices, Administrative Agent or such Lender wishes to maintain confidential or (iii) to make any other or future disclosures of such information, or any other information, to such Guarantor.

 

Each Guarantor consents and agrees that neither Administrative Agent nor any Lender shall be under any obligation to marshal any assets in favor of any Guarantor or against or in payment of any or all of the Obligations. Each Guarantor further agrees that, to the extent that Borrower makes a payment or payments to Administrative Agent or any Lender, or Administrative Agent or any Lender receives any proceeds of Collateral, which payment or payments or any part thereof are subsequently invalidated, declared to be fraudulent or preferential, set aside or required to be repaid to Borrower, its estate, trustee, receiver or any other party, including any Guarantor, under any bankruptcy law, state or federal law, common law or equitable cause, then to the extent of such payment or repayment, the Obligations or the part thereof which has been paid, reduced or satisfied by such amount shall be reinstated and continued in full force and effect as of the date such initial payment, reduction or satisfaction occurred, and this Guaranty shall continue to be in existence and in full force and effect, irrespective of whether any evidence of indebtedness has been surrendered or cancelled.

 

Each Guarantor subordinates all debts, liabilities and other obligations owed to such Guarantor by each other Credit Party (the “Subordinated Obligations”), to the Obligations as follows:

 

1.             Except during the continuance of a Default (including the commencement and continuation of any proceeding under any bankruptcy law relating to any other Credit Party), Guarantor may receive regularly scheduled payments from any other Credit Party on account of the Subordinated Obligations.  After the occurrence and during the continuance of any Default (including the commencement and continuation of any proceeding under any bankruptcy law relating to any other Credit Party), unless Administrative Agent otherwise agrees, such Guarantor shall not demand, accept or take any action to collect any payment on account of any Subordinated Obligation.

 

2.             In any proceeding under any bankruptcy law relating to any other Credit Party, the Administrative Agent and the Lenders shall be entitled to receive payment in full in cash of all Obligations (including all interest and expenses accruing after the commencement of a proceeding under any bankruptcy law, whether or not constituting an allowed claim in such proceeding (“Post-Petition Interest”)), before such Guarantor receives payment of any Subordinated Obligation.

 

3.             After the occurrence and during the continuance of any Default (including the commencement and continuation of any proceeding under any bankruptcy law relating to any other Credit Party), such Guarantor shall, if Administrative Agent so requests, collect, enforce and receive payments on account of the Subordinated Obligations as trustee for the Administrative Agent and Lender and deliver such payments to the Administrative Agent on account of the Obligations (including all Post-Petition Interest), together with any necessary endorsements or other instruments of

 

5

 

transfer, but without reducing or affecting in any manner the liability of such Guarantor under the other provisions of this Guaranty.

 

Until all Obligations have been paid in full in cash and otherwise performed in full, and all obligations under each other Financing Document to which any Guarantor is a party have been paid and performed in full, no Guarantor shall have any right of subrogation, reimbursement, indemnity, exoneration, contribution or any other claim against any Credit Party or any security in connection with this Guaranty.  Until such time, each Guarantor waives any right to enforce any remedy that such Guarantor may have against Borrower and any right to participate in any collateral security.  If any amount shall be paid to any Guarantor on account of any subrogation or other right, any such other remedy, or any collateral security at any time when all of the Obligations and all other expenses guaranteed pursuant hereto shall not have been paid in full, such amount shall be held in trust for the benefit of Administrative Agent and Lenders, shall be segregated from the other funds of such Guarantor and shall forthwith be paid over to Administrative Agent to be held by Administrative Agent for the benefit of Administrative Agent and Lenders as collateral security for, or then or at any time thereafter applied in whole or in part by Administrative Agent against, any Obligation, whether matured or unmatured, in such order as provided in the Credit Agreement.  If any Guarantor shall have paid any Obligation and if all of the Obligations shall have been paid in full in cash, the Administrative Agent will, at the expense and reasonable request of such Guarantor, execute and deliver to such Guarantor (without recourse, representation or warranty), appropriate documents necessary to evidence the transfer, without representation or warranty, by subrogation to such Guarantor of an interest in the Obligations resulting from such payment by such Guarantor; provided that (i) such transfer shall be subject to the reinstatement provisions of this Guaranty, and (ii) without the consent of Administrative Agent (which Administrative Agent may withhold in its discretion), such Guarantor shall not have the right to be subrogated to any claim or right against any Credit Party that has become owned by Administrative Agent or any Lender, whose ownership has otherwise changed in the course of enforcement of the Credit Documents, or that Administrative Agent otherwise has released or shall release from its Obligations.

 

After all Obligations have been paid in full in cash and otherwise performed in full, and all obligations under each other Financing Document to which any Guarantor is a party have been paid and performed in full, all Guarantors that have made payments in respect of the Obligations shall be entitled to contribution from all other Guarantors, to the end that all such payments upon the Obligations shall be shared among all such Guarantors in proportion to their respective Net Worths; provided that the contribution obligations of each such Guarantor shall be limited to the maximum amount that it can pay at such time without rendering its contribution obligations voidable under applicable law relating to fraudulent conveyances or fraudulent transfers. “Net Worth” means, at any time and for any Guarantor:

 

1.                                      the fair value of such Guarantor’s assets (other than such right of contribution), minus

 

2.                                      the fair value of such Guarantor’s liabilities (other than its liabilities under its guaranty of the Obligations).

 

6

 

Each Guarantor also waives all set-offs and counterclaims and all presentments, demands for performance, notices of nonperformance, protests, notices of protest, notices of dishonor, and notices of acceptance of this Guaranty.  Each Guarantor further waives all notices of the existence, creation or incurring of new or additional indebtedness, arising either from additional loans extended to Borrower or otherwise, and also waives all notices that the principal amount, or any portion thereof, or any interest under or on any Financing Document is due, notices of any and all proceedings to collect from the maker, any endorser or any other guarantor of all or any part of the Obligations, or from anyone else, and, to the extent permitted by law, notices of exchange, sale, surrender or other handling of any security or collateral given to Administrative Agent to secure payment of the Obligations.

 

II.            MISCELLANEOUS

 

Each Guarantor hereby represents and warrants to Administrative Agent and Lenders that (i) it is duly organized, validly existing and in good standing under the laws of the jurisdiction of its organization, (ii) the execution, delivery and performance by such Guarantor of this Guaranty and the other Financing Documents to which it is a party are within its powers, have been duly authorized by all necessary action pursuant to its Organizational Documents, require no further action by or in respect of, or filing with, any governmental body, agency or official and do not violate, conflict with or cause a breach or a default under any provision of applicable law or regulation, any of its Organizational Documents or any agreement, judgment, injunction, order, decree or other instrument binding upon it and (iii) this Guaranty, and each other Financing Document to which it is a party, constitutes a valid and binding agreement or instrument of such Guarantor, enforceable against such Guarantor in accordance with its respective terms, except as the enforceability thereof may be limited by bankruptcy, insolvency or other similar laws relating to the enforcement of creditors’ rights generally and by general equitable principles. In addition to and without limitation of the foregoing, each Guarantor hereby confirms that it has reviewed the representations and warranties contained in Article 3 of the Credit Agreement and the covenants contained in Articles 4 and 5 of the Credit Agreement and agrees that such representations and warranties and covenants shall be deemed to have been made by such Guarantor (as if such representations and warranties and covenants referred to such Guarantor), herein and shall be fully incorporated in this Guaranty by reference thereto (provided, that such Guarantor shall only be deemed to have made such representations and warranties with respect to itself and its Subsidiaries).

 

Each Guarantor hereby agrees to the provisions of Section 2.13 and 11.10 of the Credit Agreement, which are incorporated herein by reference.

 

Any payment received by Administrative Agent from any Guarantor (or from any Lender pursuant to the preceding paragraph), subject to the First/Second Lien Intercreditor with respect to proceeds of Collateral, shall be applied by the Administrative Agent in accordance with the Credit Agreement.

 

The initial Guarantors hereunder shall be the Persons that are signatories hereto.  From time to time subsequent to the date hereof, additional Persons may become parties hereto as additional Guarantors (each an “Additional Guarantor”) by executing a Counterpart to Guaranty in the form of Exhibit A attached hereto (or such other form as may be satisfactory to

 

7

 

the Lead Lenders and Administrative Agent).  Upon delivery of any such Counterpart to Guaranty to the Administrative Agent, notice of which is hereby waived by Guarantors, each such Additional Guarantor shall be a Guarantor and shall be a party hereto as if such Additional Guarantor were an original signatory hereof.  Each Guarantor expressly agrees that its obligations arising hereunder shall not be affected or diminished by the addition or release of any other Guarantor hereunder, or by any election by Administrative Agent or any Lenders not to cause any Subsidiary of the Borrower to become an Additional Guarantor hereunder.  This Guaranty shall be fully effective as to any Guarantor that is or becomes a party hereto regardless of whether any such Person becomes or fails to become or ceases to be a Guarantor hereunder.

 

No delay on the part of Administrative Agent in the exercise of any right or remedy shall operate as a waiver thereof, and no single or partial exercise by Administrative Agent of any right or remedy shall preclude any further exercise thereof; nor shall any modification or waiver of any of the provisions of this Guaranty be binding upon Administrative Agent or Lenders, except as expressly set forth in a writing duly signed and delivered on Administrative Agent’s behalf by an authorized officer or agent of Administrative Agent. Administrative Agent’s or any Lender’s failure at any time or times hereafter to require strict performance by Borrower or any Guarantor of any of the provisions, warranties, terms and conditions contained in this Guaranty shall not waive, affect or diminish any right of Administrative Agent and Lenders at any time or times hereafter to demand strict performance thereof and such right shall not be deemed to have been waived by any act or knowledge of Administrative Agent or any Lender, or its respective agents, officers or employees, unless such waiver is contained in an instrument in writing signed by an officer or agent of Administrative Agent, and directed to Borrower or a Guarantor, as applicable, specifying such waiver. No failure or delay by Administrative Agent or any Lender in exercising any right, power or privilege under this Guaranty shall operate as a waiver thereof nor shall any single or partial exercise thereof preclude any other or further exercise thereof or the exercise of any other right, power or privilege.  The rights and remedies herein provided shall be cumulative and not exclusive of any rights or remedies provided by law.

 

Without limiting any other obligation of any Guarantor or remedy of Administrative Agent or Lenders under this Guaranty, each Guarantor hereby agrees to indemnify, pay and hold harmless Indemnitees from and against any and all liabilities, obligations, losses, damages, penalties, actions, judgments, suits, claims, costs, expenses and disbursements of any kind or nature whatsoever (including the reasonable fees and disbursements of counsel for such Indemnitee), in connection with any investigative, response, remedial, administrative or judicial matter or proceeding, whether or not such Indemnitee shall be designated a party thereto and including any such proceeding initiated by or on behalf of a Credit Party, and the reasonable expenses of investigation by engineers, environmental consultants and similar technical personnel and any commission, fee or compensation claimed by any broker (other than any broker retained by Administrative Agent or Lenders), asserting any right to payment for the transactions contemplated hereby, which may be imposed on, incurred by or asserted against such Indemnitee as a result of or in connection with the transactions contemplated hereby or by the other Financing Documents and the use or intended use of the proceeds of the Loans, except such Guarantor shall have no obligation hereunder to an Indemnitee with respect to any liability resulting from the gross negligence or willful misconduct of such Indemnitee, as determined by a final non-appealable judgment of a court of competent jurisdiction.  To the extent that the undertaking set forth in the immediately preceding sentence may be unenforceable, each

 

8

 

Guarantor shall contribute the maximum portion which it is permitted to pay and satisfy under applicable Law to the payment and satisfaction of all such indemnified liabilities incurred by the Indemnitees or any of them.  The obligations of each Guarantor to indemnify and pay the Indemnitees for fees and disbursements of counsel in connection with any litigation, dispute, suit or proceeding relating to any Financing Document and in connection with any workout, collection, bankruptcy, insolvency and other enforcement proceedings under any and all Financing Documents are as provided in Article 9 of the Credit Agreement.

 

This Guaranty shall be binding upon Guarantors and their respective successors and assigns and shall inure to the benefit of Administrative Agent and Lenders and their respective successors and assigns, except that no Guarantor may assign its obligations hereunder without the written consent of Administrative Agent. All notices, approvals, requests, demands and other communications hereunder shall be given in accordance with the notice provision of the Credit Agreement; provided, that such notices shall be given to each Guarantor at its address set forth on Annex I hereto.

 

Any term defined herein may be used in the singular or plural. “Include”, “includes” and “including” shall be deemed to be followed by “without limitation”.  Except as otherwise specified or limited herein, references to any Person include the successors and assigns of such Person. References “from” or “through” any date mean, unless otherwise specified, “from and including” or “through and including”, respectively.  Unless otherwise specified herein, the settlement of all payments and fundings hereunder between or among the parties hereto shall be made in lawful money of the United States and in immediately available funds.

 

THIS GUARANTY AND ALL MATTERS RELATING HERETO (WHETHER SOUNDING IN CONTRACT LAW, TORT LAW OR OTHERWISE), SHALL BE GOVERNED BY, AND SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK. TO THE EXTENT PERMITTED BY LAW, EACH GUARANTOR HEREBY CONSENTS TO THE JURISDICTION OF ANY STATE OR FEDERAL COURT LOCATED WITHIN THE BOROUGH OF MANHATTAN, CITY OF NEW YORK, STATE OF NEW YORK AND IRREVOCABLY AGREES THAT, SUBJECT TO ADMINISTRATIVE AGENT’S ELECTION, ALL ACTIONS OR PROCEEDINGS ARISING OUT OF OR RELATING TO THIS GUARANTY OR ANY OTHER FINANCING DOCUMENTS SHALL BE LITIGATED IN SUCH COURTS. EACH GUARANTOR EXPRESSLY SUBMITS AND CONSENTS TO THE JURISDICTION OF THE AFORESAID COURTS AND WAIVES ANY DEFENSE OF FORUM NON CONVENIENS. TO THE EXTENT PERMITTED BY LAW, EACH GUARANTOR HEREBY WAIVES PERSONAL SERVICE OF ANY AND ALL PROCESS AND AGREES THAT ALL SUCH SERVICE OF PROCESS MAY BE MADE UPON SUCH GUARANTOR BY CERTIFIED OR REGISTERED MAIL, RETURN RECEIPT REQUESTED, ADDRESSED TO BORROWER AS DESIGNATED IN ACCORDANCE WITH THE NOTICE PROVISIONS OF THE CREDIT AGREEMENT AND THAT SERVICE SO MADE SHALL BE COMPLETE TEN (10) DAYS AFTER THE SAME HAS BEEN POSTED.

 

EACH GUARANTOR AND ADMINISTRATIVE AGENT HEREBY IRREVOCABLY WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY

 

9

 

LEGAL ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS GUARANTY, TO THE OTHER FINANCING DOCUMENTS OR THE TRANSACTIONS CONTEMPLATED THEREBY AND AGREES THAT ANY SUCH ACTION OR PROCEEDING SHALL BE TRIED BEFORE A COURT AND NOT BEFORE A JURY.  EACH GUARANTOR ACKNOWLEDGES THAT THIS WAIVER IS A MATERIAL INDUCEMENT TO ENTER INTO A BUSINESS RELATIONSHIP, THAT EACH PARTY HAS RELIED ON THE WAIVER IN ENTERING INTO THIS GUARANTY AND THE OTHER FINANCING DOCUMENTS, AND THAT EACH PARTY WILL CONTINUE TO RELY ON THIS WAIVER IN THEIR RELATED FUTURE DEALINGS.  EACH GUARANTOR WARRANTS AND REPRESENTS THAT IT HAS HAD THE OPPORTUNITY OF REVIEWING THIS JURY WAIVER WITH LEGAL COUNSEL, AND THAT EACH KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS.

 

This Guaranty may be signed in any number of counterparts, each of which shall be an original, with the same effect as if the signatures thereto and hereto were upon the same instrument.

 

In addition to and without limitation of any of the foregoing, this Guaranty shall be deemed to be a Financing Document and shall otherwise be subject to all of general terms and conditions contained in Article 11 of the Credit Agreement, mutatis mutandi.

 

[Remainder of page intentionally left blank.]

 

10

 

IN WITNESS WHEREOF, this Guaranty has been duly executed by each Guarantor as of the date of the Credit Agreement first written above.

 

 

	
 
    	
WARREN RESOURCES OF CALIFORNIA, 

INC., as   a Guarantor
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
WARREN E&P, INC., as   a Guarantor
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
WARREN MARCELLUS LLC, as   a Guarantor
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Stewart P. Skelly
    
	
 
    	
Name:
    	
 Stewart P. Skelly
    
	
 
    	
Title:
    	
 Vice President and Treasurer
    

 

Signature Page to Guaranty

 

 

	
 
    	
CORTLAND PRODUCTS CORP.,   as 

Administrative   Agent
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Emily Ergang Pappas
    
	
 
    	
 
    	
Name:   
    	
Emily   Ergang Pappas
    
	
 
    	
 
    	
Title:   
    	
Associate   Counsel
    

 

Signature Page to Guaranty

 

 

Exhibit A

 

COUNTERPART TO GUARANTY

 

The Counterpart to Guaranty is dated as of                   , 20     and is made by (“Additional Guarantor”) in favor of Cortland Products Corp, as Administrative Agent.  All capitalized terms not defined herein shall have the meaning ascribed to them in the Guaranty hereinafter referenced or in the Credit Agreement hereinafter referenced.

 

Recitals

 

WHEREAS, Warren Resources, Inc. (the “Borrower”), the financial institutions or other entities from time to time party thereto (the “Lenders”) and Cortland Products Corp, as administrative agent (in such capacity, together with its successors in such capacity, the “Administrative Agent”) have entered in to that certain Second Lien Credit Agreement dated as of October 22, 2015 (as amended, restated, amended and restated, extended, supplemented or otherwise modified in writing from time to time, the “Credit Agreement”);

 

WHEREAS, in connection with the Credit Agreement, the Borrower and certain Subsidiaries of the Borrower (each a “Guarantor,” and, collectively, the “Guarantors”) entered into that certain Guaranty (as amended, restated, extended, refinanced ,replaced, supplemented or otherwise modified in writing from time to time, the “Guaranty”);

 

WHEREAS, the Credit Agreement requires Additional Guarantor to become a party to the Guaranty; and

 

WHEREAS, Additional Guarantor is executing and delivering this Counterpart to Guaranty in order to become a party to the Guaranty;

 

NOW THEREFORE IT IS AGREED:

 

By executing and delivering this Counterpart to Guaranty, Additional Guarantor hereby becomes a party to the Guaranty as a Guarantor thereunder with the same force and effect as if originally named therein as a Guarantor and, without limiting the generality of the foregoing, hereby expressly assumes all obligations and liabilities of a Guarantor thereunder.  Additional Guarantor hereby represents and warrants that each of the representations and warranties in the Credit Agreement applicable to Additional Guarantor, is true and correct with respect to Additional Guarantor in all material respects on and as of the date hereof (after giving effect to this Counterpart to Guaranty).

 

This Counterpart to Guaranty may be executed in any number of separate counterparts, each of which, when so executed, shall be deemed an original, and all of said counterparts taken together shall be deemed to constitute but one and the same instrument. Delivery of an executed signature page by facsimile or other electronic transmission (e.g. “pdf” or “tif” format) shall be effective as delivery of a manually executed counterpart hereof.

 

This Counterpart to Guaranty shall be governed by, and construed in accordance with, the laws of the State of New York and applicable federal law.

 

Exhibit A - Page 1

 

 

IN WITNESS WHEREOF, the undersigned Additional Guarantor has caused this Counterpart to Guaranty to be duly executed and delivered by its officer thereunto duly authorized as of the date first set forth above.

 

 

	
 
    	
[NAME OF ADDITIONAL GUARANTOR], as 

Additional Guarantor
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    

 

Exhibit A - Page 2

 

 

ANNEX I

 

Addresses

 

Warren E&P, Inc.
 100 Oceangate, Suite 950 
 Long Beach, CA 90802

 

Warren Marcellus LLC 
  1331 17th Street, Suite 720 
 Denver, CO 80202

 

Warren Resources of California, Inc.
  100 Oceangate, Suite 950 
 Long Beach, CA 90802

 

Annex I - Page 1

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