Document:

Exhibit 10.1.4

 

FOURTH AMENDMENT AND JOINDER TO CREDIT AGREEMENT

 

THIS FOURTH AMENDMENT AND JOINDER TO CREDIT AGREEMENT (this “Amendment”), dated as of April 9, 2014 (the “Effective Date”), is entered into by and among VENOCO, INC. (the “Company”), and the undersigned lenders party to the Credit Agreement defined below, and acknowledged by CITIBANK, N.A., as administrative agent for the Lenders (in such capacity, the “Administrative Agent”).

 

INTRODUCTION

 

A.                                    This Amendment is in respect of the Fifth Amended and Restated Credit Agreement, dated as of October 3, 2012, among the Company, the Guarantors from time to time parties thereto, the several financial institutions from time to time parties thereto as Lenders, the Administrative Agent, the Arranger, the Syndication Agent and the Documentation Agent and the other Persons from time to time parties thereto (as amended, supplemented, restated or otherwise modified, the “Credit Agreement”).

 

B.                                    The Company has requested (1) an increase in the Aggregate Commitment pursuant to Section 2.16 of the Credit Agreement, (2) an increase in the Borrowing Base and (3) certain modifications to the Credit Agreement specified below.

 

NOW THEREFORE, in consideration of the foregoing premises and the mutual agreements set forth herein, the parties hereto agree as follows:

 

SECTION 1.                                                 Definitions; Rules of Interpretation.  Unless otherwise defined in this Amendment, each capitalized term used in this Amendment has the meaning assigned to such term in the Credit Agreement.  The rules of interpretation set forth in Section 1.2 of the Credit Agreement are incorporated in this Amendment as if set forth in the Amendment.

 

SECTION 2.                                                 Amendment to Section 1.1 of the Credit Agreement.  The definition of “LIBO Rate” appearing in Section 1.1 of the Credit Agreement is amended by deleting the phrase “that displays an average British Bankers Association Interest Settlement Rate” wherever it appears in such definition.

 

SECTION 3.                                                 Amendment to Section 1.3 of the Credit Agreement.  Section 1.3 of the Credit Agreement is amended by adding the phrase “; provided, however, that for all purposes of this Agreement, Indebtedness shall be valued or measured at face value regardless of whether GAAP would allow Indebtedness to be valued or measured at fair value or some other value” at the end of the first sentence of clause (a) of such Section.

 

SECTION 4.                                                 Amendment to Section 8.9(a) of the Credit Agreement.  Section 8.9(a) of the Credit Agreement is hereby amended by deleting it and replacing it with the following:

 

if (A) no Default or Event of Default shall have occurred and be continuing, (B) no such Restricted Payment shall cause or result in a Default or Event of Default, (C) at the time any such Restricted Payment is made by the Company, and giving pro forma effect to such Restricted Payment, (1) the ratio of the Effective Amount to the Borrowing Base

 

 

does not exceed .85 to 1.00 and (2) the Company shall have Unused Availability of at least $40,000,000, (D) calculating the financial covenants in Section 8.12 (other than Section 8.12(a)) as if the proposed Restricted Payment had been made on the last day of the most recently ended fiscal quarter, the Company is in pro forma compliance with Section 8.12 hereof (other than Section 8.12(a)) after giving effect to such Restricted Payment, and (E) calculating the Consolidated Leverage Ratio as if the proposed Restricted Payment had been made on the last day of the most recently ended fiscal quarter, the Company is in pro forma compliance with a Consolidated Leverage Ratio of less than (i) if for the fiscal quarter ending March 31, 2014, 4.75 to 1.00, (ii) if for the fiscal quarter ending June 30, 2014, 4.50 to 1.00 and (iii) for any fiscal quarter ending on or after September 30, 2014, 4.00 to 1.00, then the Company may declare and pay regular Cash Dividends that do not exceed, when aggregated with the dividends paid in the fiscal quarter in which such dividend is paid and the prior three fiscal quarters, $35,000,000, so long as such Cash Dividends are not used by Denver Parent to make any distribution, dividend or return capital to its members, partners or stockholders or make any distribution of assets in cash or in kind to its members, partners or stockholders;

 

SECTION 5.                                                 Amendment to Section 8.12(a) of the Credit Agreement.  Section 8.12(a) of the Credit Agreement is hereby amended and restated in its entirety with the following:

 

The Company shall not permit the Consolidated Leverage Ratio to exceed (i) for the fiscal quarter ending March 31, 2014, 5.25 to 1.00, (ii) for the fiscal quarter ending June 30, 2014, 5.50 to 1.00 (iii) for the fiscal quarter ending September 30, 2014, 5.25 to 1.00, (iv) for the fiscal quarter ending December 31, 2014, 4.75 to 1.00, (v) for the fiscal quarter ending March 31, 2015, 4.50 to 1.00, (vi) for the fiscal quarter ending June 30, 2015, 4.25 to 1.00, and (vii) for any fiscal quarter ending on or after September 30, 2015, 4.00 to 1.00

 

SECTION 6.                                                 Amendment to Section 11.1(e) of the Credit Agreement.  Section 11.1(e) of the Credit Agreement is hereby amended by deleting the phrase “or Section 9.3” and replacing it with the phrase “Section 2.12, Section 9.3 or Section 11.8(e)”.

 

SECTION 7.                                                 Amendment to Section 11.8 of the Credit Agreement.  Section 11.8(c)(i) of the Credit Agreement is amended by adding the phrase “so long as no Event of Default shall have occurred and be continuing” at the beginning of such Section before the word “the” and Section 11.8(e) of the Credit Agreement is amended and restated in its entirety to the following:

 

“(e) No such assignment shall be made to the Borrower or any of its Affiliates.”

 

SECTION 8.                                                 Waiver.  Upon the express condition that the Borrower shall deliver to the Administrative Agent the financial statements referred to in Section 7.1(a) of the Credit Agreement in respect of the fiscal year ending December 31, 2013 (the “2013 Financials”), on or before April 15, 2014, the Required Lenders hereby waive the requirement of said Section 7.1(a) that the 2013 Financials be delivered in any event not later than 90 days after December 31, 2013.  The foregoing is not a waiver of Section 7.1(a) in respect of any fiscal year other than the

 

2

 

fiscal year ending December 31, 2013, and is not a waiver of any other section of the Credit Agreement or any other Loan Document.  Failure to deliver to the Administrative Agent the 2013 Financials by April 15, 2014, shall constitute an Event of Default.

 

SECTION 9.                                                 Representations and Warranties, Etc.  The Company and each of the Loan Parties represents and warrants to the Administrative Agent, the Issuing Lender and the Lenders that as of the Effective Date and after giving effect to the amendments and waivers in this Amendment:

 

(a)                                 each of the representations and warranties by the Loan Parties contained in the Credit Agreement and in the other Loan Documents are true and correct on and as of such date in all material respects as though made as of the date hereof, except those that by their terms relate solely as to an earlier date, in which event they shall be true and correct in all material respects on and as of such earlier date;

 

(b)                                 the execution, delivery and performance of this Amendment has been duly authorized by all requisite organizational action on the part of the Company and each other Loan Party;

 

(c)                                  the Credit Agreement as amended hereby and each other Loan Documents constitute valid and legally binding agreements enforceable against each Loan Party that is a party thereto in accordance with their respective terms, except as such enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent transfer or other similar laws relating to or affecting creditors’ rights generally and by general principles of equity, regardless of whether considered in a proceeding in equity or at law; and

 

(d)                                 no Default or Event of Default exists under the Credit Agreement or any of the other Loan Documents.

 

SECTION 10.                                          Ratification.  The Company and each other Loan Party hereby ratifies and confirms, as of the Effective Date, (a) the covenants and agreements contained in each Loan Document to which it is a party, including, in each case, as such covenants and agreements may be modified by this Amendment and the transactions contemplated thereby and (b) all of the Obligations under the Credit Agreement and the other Loan Documents.

 

SECTION 11.                                          Effectiveness.  This Amendment shall become effective as of the Effective Date when all of the conditions set forth in this Section 11 have been satisfied.

 

(a)                                 The Administrative Agent shall have received executed counterparts of this Amendment from the Company, the Guarantors, the Administrative Agent, the Required Lenders and the New Lender (as defined below).  For the avoidance of doubt, the “Required Lenders” shall be determined on and as of the Effective Date and before giving effect to the joinder specified in Section 12 hereof.

 

(b)                                 The Administrative Agent shall have received from the Company a certificate of each Loan Party dated as of the Aggregate Commitment Increase

 

3

 

Effective Date (in sufficient copies for each Lender) signed by a Responsible Officer of each such Loan Party:

 

(i)                                certifying and attaching the resolutions adopted by such Loan Party authorizing the Aggregate Commitments as increased, and

 

(ii)                             in the case of the Company, certifying (A) as to the matters set forth in Section 5.2(b) of the Credit Agreement (provided that the references to “Borrowing Date” shall be deemed to be “Aggregate Commitment Increase Effective Date”), Section 5.2(c), and Section 5.2(d) and (B) that as of the Aggregate Commitment Increase Effective Date and after giving effect to the increase in the Aggregate Commitment being made on such date, such increase in the Aggregate Commitment is permitted under the Senior Notes Indentures and the Exchange Notes Indentures.

 

(c)                                  The Administrative Agent shall have received all reasonable out-of-pocket fees, costs and expenses incurred in connection with the negotiation, preparation, execution and delivery of this Amendment and related documents (including the fees, charges and disbursements of counsel to the Administrative Agent) for which the Company has received an invoice at least one Business Day before the Effective Date.

 

SECTION 12.                                          Joinder and Increased Borrowing Base.

 

(a)                                 Joinder.  If the conditions set forth in Section 11 are satisfied, the Aggregate Commitments shall be increased on and effective as of the Effective Date (herein, the “Aggregate Commitment Increase Effective Date”) to the aggregate of the Commitments set forth on Annex I attached to this Amendment and the Commitments will be allocated among the Lenders as set forth in such Annex I.

 

(i)                                Effective on the Aggregate Commitment Increase Effective Date, the financial institution identified on Annex I attached to this Amendment as a “New Lender” (each, a “New Lender”) hereby becomes a party to the Credit Agreement as a Lender pursuant to Section 2.16 of the Credit Agreement.  By its execution of this Amendment, the New Lender (A) agrees to become, as of the Aggregate Commitment Increase Effective Date, a Lender under the Credit Agreement as if originally a signatory thereto and to be bound by the terms of the Credit Agreement (as amended hereby) and each of the Loan Documents and to perform the obligations and duties of a Lender under the Credit Agreement and to acquire participations in the Letter of Credit Outstandings and (B) authorizes the Administrative Agent to act as its agent under the Credit Agreement and the other Loan Documents.

 

(ii)                             Pursuant to Section 2.16(c) of the Credit Agreement, the Administrative Agent is hereby giving notice to the Company and the Lenders of the Aggregate Commitment Increase Effective Date and that the final allocations are set forth on Annex I attached to this Amendment.  The Company shall prepay

 

4

 

any Loans outstanding on the Aggregate Commitment Increase Effective Date (and pay any additional amounts required pursuant to Section 3.4 of the Credit Agreement) to the extent necessary to keep the outstanding Loans ratable with the Pro Rata Share set forth on Annex I attached to this Amendment.

 

(iii)                          For the Commitment increase set forth in this Amendment only, the Required Lenders hereby waive the 10 Business Day advance notice requirement in Section 2.16(a) of the Credit Agreement for increased Commitments.

 

(iv)                         Effective on the Aggregate Commitment Increase Effective Date and after giving effect to the joinder of the new Lenders pursuant to Section 2.16, each Lender shall be deemed to sell and assign to the each other Lender hereunder and each Lender hereunder shall be deemed to purchase and accept subject to and in accordance with the Standard Terms and Conditions set forth in Annex 1 to Exhibit D of the Credit Agreement so much of the Aggregate Commitment such that after giving effect to such sales and assignments, the Lenders have the respective Commitments and Pro Rata Shares set forth in Annex I.  The Administrative Agent and the Issuing Lender hereby consent to each such sale and assignment

 

(b)                                 Borrowing Base.  If the conditions set forth in Section 11 of this Amendment are satisfied, the Borrowing Base under the Credit Agreement is hereby increased from $270,000,000 to $280,000,000, effective on the Aggregate Commitment Increase Effective Date, such increase to be effective until such time as the Borrowing Base is redetermined in accordance with the Credit Agreement.

 

SECTION 13.                                          Governing Law; Severability; Integration.  THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.  If any provision of this Amendment or any other Loan Document is held to be illegal, invalid or unenforceable, (a) the legality, validity and enforceability of the remaining provisions of this Amendment and the other Loan Documents shall not be affected or impaired thereby and (b) the parties shall endeavor in good faith negotiations to replace the illegal, invalid or unenforceable provisions with valid provisions the economic effect of which comes as close as possible to that of the illegal, invalid or unenforceable provisions.  The invalidity of a provision in a particular jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.  This Amendment and the other Loan Documents constitute the entire contract among the parties relating to the subject matter hereof and supersede any and all previous agreements and understandings, oral or written, relating to the subject matter hereof.

 

SECTION 14.                                          Execution in Counterparts.  This Amendment may be executed by the parties hereto in several counterparts (and by different parties hereto in different counterparts), each of which shall constitute an original and all of which when taken together shall constitute a single document.

 

5

 

SECTION 15.                                          Successors and Assigns.  This Amendment shall be binding upon and inure to the benefit of the parties hereto and their respective permitted successors and assigns; provided, however, that (a) the Company may not assign or transfer its rights or obligations hereunder without the prior written consent of the Administrative Agent and each Lender; and (b) the rights of sale, assignment and transfer of the Lenders are subject to Section 11.8 of the Credit Agreement.

 

SECTION 16.                                          Miscellaneous.  (a) On and after the effectiveness of this Amendment, each reference in each Loan Document to “the Credit Agreement”, “thereunder”, “thereof” or words of like import referring to the Credit Agreement shall mean and be a reference to the Credit Agreement as amended, waived or otherwise modified by this Amendment; (b) this Amendment is a Loan Document executed pursuant to the Credit Agreement and shall (unless otherwise expressly indicated therein) be construed, administered and applied in accordance with the terms and provisions of the Credit Agreement; and (c) a facsimile signature of any party hereto shall be deemed to be an original signature for purposes of this Amendment.

 

SECTION 17.                                          ENTIRE AGREEMENT.  THIS AMENDMENT AND THE OTHER LOAN DOCUMENTS REPRESENT THE FINAL AGREEMENT AMONG THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES.  THERE ARE NO UNWRITTEN ORAL AGREEMENTS AMONG THE PARTIES.

 

(Remainder of Page Left Intentionally Blank)

 

6

 

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

 

 

	
 
    	
COMPANY:
    
	
 
    	
 
    
	
 
    	
VENOCO, INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Timothy A. Ficker
    
	
 
    	
Name: Timothy A. Ficker
    
	
 
    	
Title: Chief Financial Officer
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
GUARANTORS:
    
	
 
    	
 
    
	
 
    	
WHITTIER PIPELINE   CORPORATION
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Timothy A. Ficker
    
	
 
    	
Name: Timothy A. Ficker
    
	
 
    	
Title: Chief Financial Officer
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
TEXCAL ENERGY (LP) LLC
    
	
 
    	
By: VENOCO, INC., its Manager
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Timothy A. Ficker
    
	
 
    	
Name: Timothy A. Ficker
    
	
 
    	
Title: Chief Financial Officer
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
TEXCAL ENERGY (GP) LLC
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Timothy A. Ficker
    
	
 
    	
Name: Timothy A. Ficker
    
	
 
    	
Title: Chief Financial Officer
    

 

- Fourth Amendment & Joinder

 

S-1

 

	
 
    	
 
    
	
 
    	
TEXCAL ENERGY SOUTH TEXAS   L.P.
    
	
 
    	
By: TEXCAL ENERGY (GP) LLC,
    
	
 
    	
as general partner
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Timothy A. Ficker
    
	
 
    	
Name: Timothy A. Ficker
    
	
 
    	
Title: Chief Financial Officer
    

 

- Fourth Amendment & Joinder

 

S-2

 

	
 
    	
CITIBANK, N.A., as Administrative Agent and as a Lender
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ John Miller
    
	
 
    	
 
    	
Name: John Miller
    
	
 
    	
 
    	
Title: Vice   President
    

 

- Fourth Amendment & Joinder

 

S-3

 

	
 
    	
LENDERS:
    
	
 
    	
 
    
	
 
    	
THE BANK OF NOVA SCOTIA
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Terry Donovan
    
	
 
    	
 
    	
Name: Terry   Donovan
    
	
 
    	
 
    	
Title: Managing   Director
    

 

- Fourth Amendment & Joinder

 

S-4

 

	
 
    	
KEYBANK NATIONAL   ASSOCIATION
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ John Dravenstott
    
	
 
    	
 
    	
Name: John Dravenstott
    
	
 
    	
 
    	
Title: Vice   President
    

 

- Fourth Amendment & Joinder

 

S-5

 

	
 
    	
RB INTERNATIONAL FINANCE   (USA) LLC
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ CHRISTOPH HOEDL
    
	
 
    	
Name: CHRISTOPH HOEDL
    
	
 
    	
Title: First Vice President
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Steven VanSteenbergen
    
	
 
    	
Name: Steven VanSteenbergen
    
	
 
    	
Title: Vice President
    

 

- Fourth Amendment & Joinder

 

S-6

 

	
 
    	
BOKF, NA dba BANK OF   OKLAHOMA
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Sonja Borodko
    
	
 
    	
Name: Sonja Borodko
    
	
 
    	
Title: Vice President
    

 

- Fourth Amendment & Joinder

 

S-7

 

	
 
    	
BANK OF AMERICA, N.A.
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Raza Jafferi
    
	
 
    	
Name: Raza Jafferi
    
	
 
    	
Title: Vice President
    

 

- Fourth Amendment & Joinder

 

S-8

 

	
 
    	
AMEGY BANK NATIONAL   ASSOCIATION
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Kevin Donaldson
    
	
 
    	
Name: Kevin Donaldson
    
	
 
    	
Title: SVP
    

 

- Fourth Amendment & Joinder

 

S-9

 

	
 
    	
CREDIT SUISSE AG, CAYMAN   ISLANDS
    
	
 
    	
BRANCH
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Michael Spaight
    
	
 
    	
Name: Michael Spaight
    
	
 
    	
Title: Authorized Signatory
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Samuel Miller
    
	
 
    	
Name: Samuel Miller
    
	
 
    	
Title: Authorized Signatory
    

 

- Fourth Amendment & Joinder

 

S-10

 

	
 
    	
SANTANDER BANK, N.A.
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Aidan Lanigan
    
	
 
    	
Name: Aidan Lanigan
    
	
 
    	
Title: Senior Vice President
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Vaughn Buck
    
	
 
    	
Name: Vaughn Buck
    
	
 
    	
Title: Executive Vice President
    

 

- Fourth Amendment & Joinder

 

S-11

 

	
 
    	
ABN AMRO CAPITAL USA LLC
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ David Montgomery
    
	
 
    	
Name:
    	
David Montgomery
    
	
 
    	
Title:
    	
Executive Director
    

 

 

	
 
    	
By:
    	
/s/Darrell Holley
    
	
 
    	
Name:
    	
Darrell Holley
    
	
 
    	
Title:
    	
Managing Director
    

 

- Fourth Amendment & Joinder

 

S-12

 

	
 
    	
CIT FINANCE LLC,
    
	
 
    	
as Lender
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ John Feeley
    
	
 
    	
Name:
    	
John Feeley
    
	
 
    	
Title:
    	
Director
    

 

- Fourth Amendment & Joinder

 

S-13

 

ANNEX I

 

Commitments and Pro Rata Shares

 

	
Financial Institution
    	
 
    	
Commitment
    	
 
    	
Existing Lender/
   New Lender
    	
 
    	
Pro Rata
   Share
    	
 
    
	
Citibank, N.A. 
    	
 
    	
$
    	
34,000,000
    	
 
    	
Existing Lender
    	
 
    	
12.1
    	
%
    
	
RB International   Finance (USA) LLC
    	
 
    	
$
    	
34,000,000
    	
 
    	
Existing Lender
    	
 
    	
12.1
    	
%
    
	
ABN AMRO Capital   USA LLC
    	
 
    	
$
    	
34,000,000
    	
 
    	
Existing Lender
    	
 
    	
12.1
    	
%
    
	
KeyBank National Association
    	
 
    	
$
    	
27,000,000
    	
 
    	
Existing Lender
    	
 
    	
9.6
    	
%
    
	
The Bank of Nova Scotia
    	
 
    	
$
    	
24,500,000
    	
 
    	
Existing Lender
    	
 
    	
8.8
    	
%
    
	
Bank of America, N.A.
    	
 
    	
$
    	
24,500,000
    	
 
    	
Existing Lender
    	
 
    	
8.8
    	
%
    
	
BOKF, NA dba Bank of Oklahoma
    	
 
    	
$
    	
24,500,000
    	
 
    	
Existing Lender
    	
 
    	
8.8
    	
%
    
	
Santander Bank, N.A.
    	
 
    	
$
    	
24,500,000
    	
 
    	
Existing Lender
    	
 
    	
8.8
    	
%
    
	
Amegy Bank National Association
    	
 
    	
$
    	
19,000,000
    	
 
    	
Existing Lender
    	
 
    	
6.8
    	
%
    
	
CIT Finance LLC
    	
 
    	
$
    	
19,000,000
    	
 
    	
New Lender
    	
 
    	
6.8
    	
%
    
	
Credit Suisse AG, Cayman Islands Branch
    	
 
    	
$
    	
15,000,000
    	
 
    	
Existing Lender
    	
 
    	
5.4
    	
%
    
	
TOTAL
    	
 
    	
$
    	
280,000,000
    	
 
    	
 
    	
 
    	
100
    	
%
    

 

(End of Annex I)

 

- Fourth Amendment & JoinderExhibit 10.9.3

 

VENOCO, INC.

 

2012 STOCK-BASED CASH INCENTIVE PLAN 
 RESTRICTED STOCK UNIT

2013 YEAR END SERVICE AWARD

GRANT IDENTIFICATION NUMBER:

 

This Restricted Stock Unit Award Agreement (the “Agreement”), is entered into as of the        day of                  2014 (the “Date of Grant”), by and between Venoco, Inc., a Delaware corporation (the “Company”), and                        (the “Participant”).

 

RECITAL

 

The Company desires to provide incentives for the Participant to exert maximum efforts for the success of the Company and its Affiliates (as defined in the Venoco, Inc. 2012 Stock-Based Cash Incentive Plan (the “Plan”)).  In furtherance of same, the Company wishes to allow the Participant to earn a cash incentive based on the value of shares of Denver Parent’s common stock, par value $0.01 per share, pursuant to the terms and conditions of the Plan and this Agreement.  Capitalized terms not defined herein have the meanings ascribed to them in the Plan.  These restricted stock units (“Restricted Stock Units” or “RSUs”) are 2013 Year End Service Awards.

 

AGREEMENT

 

NOW, THEREFORE, in consideration of the mutual covenants hereinafter set forth and for other good and valuable consideration, the parties agree as follows:

 

1.                                      GRANT OF RESTRICTED STOCK UNITS.  The Company has granted to the Participant Restricted Stock Units covering        shares of Common Stock (as defined in the Plan) of Denver Parent, subject to the terms and conditions of this Agreement and the Plan.  Upon vesting, each RSU represents the right to receive from the Company a cash payment equal to the Fair Market Value (as defined in the Plan) of a share of Common Stock on such date.

 

2                                         VESTING.  RSUs shall be eligible to vest in accordance with the provisions of this Section 2 over a four-year period measured from the Date of Grant, based on the level of achievement of the performance measures used to determine the Company’s annual cash bonus payout (the “Weighted Performance Measure”) and the Participant’s Continuous Service (as defined in the Plan) to the Company from the Date of Grant through the applicable “Vesting Dates” set forth in the table below.

 

(a)                                 General.  Subject to the Participant remaining in Continuous Service, on each of the first four anniversaries of the Date of a Grant (each date a “Vesting Date”), the Participant will vest in a number of RSUs equal to the product of (x) the Earned Percentage (defined below) as of such Vesting Date, multiplied by (y) the number of “RSU’s Eligible to Vest” on such Vesting Date, as set forth in the following table.

 

 

	
Vesting Date
    	
 
    	
RSUs Eligible to Vest
    
	
First anniversary of Date of Grant
    	
 
    	
25% of total
    
	
Second anniversary of Date of Grant
    	
 
    	
50% of total, less   the number of RSUs vesting on all prior Vesting Dates
    
	
Third anniversary of Date of Grant
    	
 
    	
75% of total, less   the number of RSUs vesting on all prior Vesting Dates
    
	
Fourth anniversary of Date of Grant
    	
 
    	
100% of total, less   the number of RSUs vesting on all prior Vesting Dates
    

 

(b)                                 Earned Percentage.  The “Earned Percentage” as of a particular Vesting Date shall be determined by the Compensation Committee in accordance with the provisions of the Venoco, Inc. Executive Long-Term Incentive Program, as amended from time to time.

 

(c)                                  Committee Discretion.  The Compensation Committee shall have full discretion to determine the level of achievement of any Earned Percentage, and all such determinations shall be final, binding, and conclusive.

 

3.                                      TERMINATION OF CONTINUOUS SERVICE

 

If Participant ceases to remain in Continuous Service at any time prior to becoming fully vested in his or her RSUs, all unvested RSUs shall be forfeited immediately on the date that Participant’s Continuous Service terminates, and the Participant shall thereafter cease to have any right or entitlement under this Agreement.

 

4.                                      PAYOUT.                                       Payment in respect of vested RSUs shall be made as follows:

 

(a)                                 Restricted Stock Units.  Within 30 days of each Vesting Date of this RSU award, the Participant shall be entitled to a cash payment equal to the product of (i) the number of RSUs vesting on such date, multiplied by (ii) the Fair Market Value of a share of Common Stock on such date.

 

(b)                                 No Fund. In no event shall any amounts be formally sequestered from the general assets of the Company for the benefit of the Participant, and the Participant’s right to payment in respect of his or her RSUs shall be no greater than that of a general unsecured creditor of the Company.

 

5.                                      NON-ASSIGNABILITY.  Any attempted assignment, transfer, pledge, hypothecation or other disposition of these RSUs shall be null and void and without effect.

 

6.                                      SECURITIES LAW COMPLIANCE.  The Participant acknowledges that these RSUs are not being registered under the Securities Act or applicable state securities laws.  The Participant, by executing this Agreement, hereby makes the following representations to the Company and to Denver Parent and acknowledges that the Company’s and Denver Parent’s reliance on federal and state securities law exemptions from registration and qualification may be predicated, in substantial part, upon the accuracy of these representations:

 

2

 

(a)                                                                                 The Participant is acquiring these RSUs solely for the Participant’s own account, for investment purposes only, and not with a view or intent to sell, or to offer for resale, any securities.

 

(b)                                                                                 The Participant has had an opportunity to ask questions and receive answers from the Company and from Denver Parent regarding the terms and conditions of these RSUs.

 

(c)                                                                                  The Participant has read and understands the restrictions and limitations set forth in the Plan and this Agreement, which are imposed on these RSUs.

 

(d)                                                                                 At no time was an oral representation made to the Participant relating to these RSUs and the Participant was not presented with or solicited by any promotional meeting or material relating to these RSUs or the Common Stock (as defined in the Plan).

 

7.                                      PLAN CONTROLLING.  This RSU award and all rights of the Participant under this Agreement are subject to, and the Participant agrees to be bound by, all of the terms and conditions of the Plan, which are incorporated herein by this reference. In the event of a conflict or inconsistency between this Agreement and the Plan, the Plan shall govern.  The Participant acknowledges receipt of a copy of the Plan and agrees to be bound by the terms thereof and of this Agreement.  The Participant acknowledges reading and understanding the Plan and this Agreement.

 

8.                                      NO STOCKHOLDER RIGHTS.  In no event shall Participant have any rights as a stockholder of Denver Parent or of the Company as a result of the receipt or vesting of this RSU award.

 

9.                                      WITHHOLDING TAXES AND SECTION 409A.

 

(a)                                 Withholding.  The Company shall be entitled to perform all applicable federal, state, and local tax withholdings from any amounts payable under this Agreement.

 

(b)                                 Section 409A.  All payments and benefits provided under this Agreement are intended to fit within the “short-term deferral” exemption from Section 409A of the Internal Revenue Code, and the parties shall interpret this Agreement accordingly.

 

10.                               NO LIABILITY OF BOARD COMMITTEE MEMBERS.  No member of the Board or any Committee (as defined in the Plan) or their designees shall be personally liable by reason of any contract or other instrument executed by such member or on his behalf in his or her capacity as a member of the Board or Committee, nor for any mistake of judgment made in good faith.

 

11.                               AMENDMENT.  The Plan and this Agreement may be amended pursuant to Section 11 of the Plan.  Such amendment must be in writing and signed by the Company.  The Company may, however, unilaterally waive any provision of the this Agreement in writing to the extent such waiver does not adversely affect the interests of the Participant hereunder, but no such waiver shall operate as or be construed to be a subsequent waiver of the same provision or a waiver of any other provision hereof.

 

3

 

12.                               ARBITRATION.  Any dispute, controversy or claim arising out of or relating to this Agreement or the Plan, their enforcement or interpretation, or because of an alleged breach, default, or misrepresentation in connection with any of their provisions, will be determined exclusively by confidential, final and binding arbitration in Denver, Colorado, pursuant to the Colorado Arbitration Act and the rules of the American Arbitration Association.  The arbitration shall be before a single neutral arbitrator mutually agreed upon by the parties or, if the parties are unable to agree upon an arbitrator, the arbitrator shall be selected pursuant to C.R.S. Section 13-22-205.  Disputes, controversies or claims subject to final and binding arbitration under this Agreement include, without limitation, all those that could otherwise be tried in court to a judge or jury in the absence of this Section 12.  The Participant and the Company agree that they each expressly waive any rights to have such matters heard or tried before judge or jury in another tribunal.  The arbitrator’s award will be final, binding, and conclusive upon the parties, subject only to judicial review provided by statute, and a judgment rendered on the arbitration award can be entered in any state or federal court having jurisdiction thereof.  Nothing in this Section 12, however, shall limit the right of the parties to stipulate and agree to conduct the arbitration before and pursuant to the then existing rules of any other agreed-upon arbitration services provider.

 

13.                               NOTICE.  Any notice to be given under the Agreement shall be in writing and addressed to the Company at its principal office in Denver, Colorado to the attention of the Chief Executive Officer, with a copy to the attention of the General Counsel, and to the Participant at the address reflected or last reflected on the Company’s payroll records, or to such other address as is provided by the Participant in writing. Any notice shall be delivered in person or shall be enclosed in a properly sealed envelope, addressed as aforesaid, registered or certified, and deposited (postage and registry or certification fee prepaid) in a post office or branch post office regularly maintained by the United States Government. Any such notice shall be given only when received, but if the Participant is no longer an Employee, Director or Consultant (as defined in the Plan), shall be deemed to have been duly given as of the date mailed in accordance with this provision.

 

14.                               GOVERNING LAW.  This Agreement and all rights arising hereunder shall be governed by, and construed and interpreted in accordance with, the laws of the state of Delaware, without regard to any provisions thereof regarding conflict of laws.

 

NEITHER THE PLAN NOR THIS AGREEMENT SHALL BE CONSTRUED AS GIVING THE PARTICIPANT THE RIGHT TO BE RETAINED IN THE EMPLOY OR SERVICE OF THE COMPANY OR ANY AFFILIATE THEREOF, NOR SHALL THEY INTERFERE IN ANY WAY WITH THE RIGHT OF THE COMPANY OR ANY AFFILIATE THEREOF, AS APPLICABLE, TO TERMINATE THE PARTICIPANT’S EMPLOYMENT OR SERVICE AT ANY TIME WITH OR WITHOUT CAUSE.

 

* * * * *

 

4

 

Effective as of the day and year first above written.

 

 

	
PARTICIPANT:
    	
 
    	
ACCEPTED BY:
    
	
 
    	
 
    	
VENOCO, INC.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Signature
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Title:
    	
 
    
	
 
    	
 
    	
 
    
	
Print   Name
    	
 
    	
 
    
	
 
    	
 
    	
Date
    
	
 
    	
 
    	
 
    
	
Date
    	
 
    	
 
    

 

5

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00229-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00229-of-00352.parquet"}]]