Document:

Exhibit 10.1

 

THIRD
AMENDED AND RESTATED PROMISSORY NOTE

 

	
  $5,000,000.00

  	
                          January 12
  ,2009

  

 

FOR VALUE RECEIVED, MESA
OFFSHORE TRUST, a trust formed under the laws of the State of Texas and having
an address at 919 Congress Avenue, Austin, Texas 78701, by and through JPMORGAN
CHASE BANK, N.A (as successor to Texas Commerce Bank National Association),
solely in its capacity as Trustee (in such capacity, the “Trustee”) for
MESA OFFSHORE TRUST (the “Borrower”) pursuant to the Royalty Trust
Indenture dated as of December 1, 1982 (the “Trust Indenture”), by
and between Mesa Petroleum Co., as Trustor, and the Trustee, promises to pay on
the Maturity Date (as defined below), to the order of JPMORGAN CHASE BANK, N.A.
(the “Lender”), whose address is 1111 Polaris Parkway, Columbus, Ohio
43240, at said address or such other address as may be designated in writing by
the holder hereof from time to time, the principal sum of FIVE MILLION AND
No/100 Dollars ($5,000,000.000), or, if less, the aggregate unpaid principal
amount of all loans (collectively, the “Loans”, and each a “Loan”)
made by the Lender to the Borrower, together with interest on said principal,
at a rate per annum equal to Prime Rate plus two percent (2%);  provided, however,
that in no event shall such rate exceed the maximum legal rate of interest
permitted by applicable law. The Borrower promises to pay interest on the
unpaid principal amount of each Loan from the date such Loan is made until such
principal amount is paid in full, in arrears, at the interest rate specified
herein. As used herein the term “Prime Rate” means the rate of interest
from time to time announced publicly by the Lender at its principal office as
its prime commercial lending rate, it being understood that such rate is not
necessarily the lowest or best rate actually charged to any customer and that
the Lender may make various commercial or other loans at rates of interest
having no relationship to such rate.

 

This Third Amended and
Restated Promissory Note (the ‘Note”) evidences an extension of credit
for borrowed money authorized under Section 3.07 of the Trust Indenture,
and amends, restates, renews and extends the Amended and Restated Promissory
Note dated December 3, 2007 executed by the Borrower to the order of the Lender
(the “Amended Note”).  On the date
hereof, the outstanding principal amount of Demand Loans, under and as defined
in the Amended Note, is Three million eight hundred forty five thousand nine
hundred seventy one dollars and fifty six cents ($3,845,971.56) and all such
Demand Loans shall be Loans hereunder.  This Note shall have the priority with regard
to payments set forth in Section 3.07 of the Trust Indenture, and the
Borrower agrees to comply with Section 3.07 of the Trust Indenture with regards
to distributions to its unitholders.

 

The Borrower may prepay
all or any portion of the outstanding principal under this Note together with
accrued and unpaid interest on such principal, at any time without premium or
penalty; provided, however, that any principal
amount so repaid may not be reborrowed.

 

Except with respect to
interest on the principal amount of the Loans prepaid hereunder, interest on
the Loans shall be due and payable on the Maturity Date. Interest on the
outstanding principal as well as the outstanding principal balance of the Loans
shall be recorded by the Lender on its books and records (which may be
electronic in nature) and at any time and

 

1

 

from time to time and may
be entered by the Lender on the schedule attached or any continuation of the
schedule attached hereto by the Lender, provided, however,
at the discretion of the Lender, any such entries may aggregate Loans (and
payments thereon) with the same interest rate and tenor and, if made on a given
date, may show only the Loans outstanding on such date.

 

Until the Maturity Date
has occurred and so long as no Event of Default exists, the Borrower may obtain
Loans under this Note; provided, however,
the amount of Loans made hereunder (without regard to any repayment or
prepayment thereof) shall not exceed $5,000,000.00. As used herein, the term “Event
of Default” means the occurrence of any one or more of the following
events: (1) the Borrower fails to pay any amount of principal or interest
when due hereunder, (2) the Borrower or the Trustee is declared insolvent
or is the subject of any proceeding in bankruptcy,  (3) the sale of all or substantially all
of the assets of Mesa Offshore Royalty Partnership (the “Partnership”),
and (4) the commencement of any litigation (other than the Lawsuit,
defined below,), directly or indirectly, by any Trustee or any current
Plaintiff or Intervenor in the Lawsuit, defined below, including successors or
assigns, against the Lender in its individual capacity for any claim arising
out of or relating to the Mesa Offshore Trust. As used herein, the term “Maturity
Date” means the earliest to occur of: (1) December 31, 2009 (the
“Stated Maturity Date”), (2) the date that is thirty-one (31)
calendar days after the Borrower receives any settlement proceeds, recovery or
judgment proceeds arising out of Cause No. 2006-0l984, MOSH
Holding, L.P. et al. (the “Plaintiffs and the Intervenors”) v. Pioneer
Natural Resources Company; Pioneer Natural Resources USA, Inc., Woodside
Energy (USA), Inc.,  and JPMorgan Chase
Bank N.A., as Trustee of the Mesa Offshore Trust, filed in the 334th
District Court of Harris County, Texas (the “Lawsuit”), (3) the
final liquidation of the Borrower’s assets or the assets of the Partnership, (4) except
for the liens securing this Note or any contingent fee agreement with an
attorney, the Borrower grants or permits to exist any mortgage, pledge or
security interest in, or other encumbrance on, its assets without the prior
written consent of the Lender, and (5) the acceleration of the maturity of
this Note by the Lender as a result of the existence of an Event of Default. If
either (1) an Event of Default exists or (2) the Maturity Date has
occurred, the Lender shall have no further obligation to advance any additional
Loans to the Borrower hereunder.

 

In the event that the
Lawsuit has not been resolved by settlement or final adjudication by December 31,
2009, and neither (1) an Event of Default exists nor (2) none of the
events referred to in clauses (2) through (5) of the definition of
Maturity Date has occurred, the Borrower may request an extension of the Stated
Maturity Date.

 

In the event the maturity
of this Note may be brought about (whether by acceleration or otherwise) and it
is placed in the hands of an attorney for collection, or is collected through
probate, bankruptcy or other proceedings, the Borrower promises to pay all
reasonable amounts actually incurred by the Lender for court costs and
attorneys’ fees in connection therewith.

 

The Borrower waives
grace, notice, demand, presentment for payment, notice of non-payment, protest,
notice of protest, notice of intention to accelerate the indebtedness due
hereunder and all other notice, filing of suit and diligence in collecting this
Note, and the enforcing of any of the security rights of the Lender, and
consents and agrees that the time of payment hereof may be extended without
notice at any time and from time to time, and for

 

2

 

periods of time, whether
or not for a term or terms in excess of the original term hereof, without
notice or consideration to, or consent from, the Borrower. Time is of the
essence hereof.

 

The indebtedness
evidenced by this Note, as an amendment, restatement, renewal and extension of
the Original Note, and is secured by a pledge of the Trust Estate,  as that term is defined in the Trust
Indenture, including, without limitation, the 99.99% general partnership
interest in the Mesa Offshore Royalty Partnership owned by the Mesa Offshore
Trust, pursuant to that one certain pledge agreement dated January 12,
2009, executed by the Borrower for the benefit of the Lender, as amended by the
Second Amendment to Pledge Agreement dated the date hereof.

 

This Note is not
assignable or transferable.

 

THIS NOTE
SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE
OF TEXAS.

 

EXECUTED by the parties
hereto as of the date first written above.

 

 

	
   

  	
  MESA OFFSHORE TRUST,

  
	
   

  	
  a Texas trust

  
	
   

  	
   

  	
   

  
	
   

  	
  By: The Bank of New York
  Trust Company, N.A.

  as attorney-in-fact for
  JPMORGAN CHASE

  BANK, N.A. Trustee

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Mike Ulrich

  
	
   

  	
  Name:

  	
  Mike
  Ulrich

  
	
   

  	
  Title:

  	
  Vice
  President

  
	
   

  	
   

  	
   

  
	
   

  	
  JPMORGAN
  CHASE BANK, N.A.,

  
	
   

  	
  a
  national banking association

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  David A. Weisbrod

  
	
   

  	
  Name:

  	
  David
  A. Weisbrod

  
	
   

  	
  Title:

  	
  Managing
  Director

  

 

3

 

LOANS AND PAYMENTS OF PRINCIPAL

 

	
  Date

  	
   

  	
  Amount of Loan

  	
   

  	
  Amount of

  Principal Paid

  or Prepaid

  	
   

  	
  Unpaid

  Principal

  Balance

  	
   

  	
  Notation Made

  By

  	
   

  
	
   

  	
   

  	
  $

  	
       

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
											

 

4Exhibit 10.2

 

THIRD AMENDMENT TO PLEDGE AGREEMENT

 

This THIRD AMENDMENT TO PLEDGE AGREEMENT,  dated as of January 12, 2009 (this “Amendment”),
is by and between JPMORGAN CHASE BANK, N.A., solely in its capacity as trustee
for MESA OFFSHORE TRUST, a trust formed under the laws of the State of Texas,  having an address at 919 Congress Avenue,
Austin, Texas 78701 (“Pledgor”) and JPMORGAN CHASE BANK, N.A., having an
address at 1111 Polaris Parkway, Columbus, Ohio 43240 (“Secured Party”).

 

RECITALS

 

A.            Pledgor and Secured
Party (collectively, the “Parties”) entered into the Pledge Agreement,
dated as of September 28, 2007 (the “Original Pledge Agreement”;
capitalized terms used but not defined in this Amendment have the meanings
ascribed to them in the Original Pledge Agreement, as amended hereby).

 

B.            The Parties entered
into a Third Amended and Restated Promissory Note (the “Note”),  dated January 12, 2009, that amends,
restates, renews and extends the Amended and Restated Promissory Note (the
“Amended Note”) dated December 3, 2007, executed by Pledgor to the order
of Secured Party.

 

C.            The Parties wish to
provide for the amendment of certain provisions of the Original Pledge
Agreement and the Second Amended Pledge Agreement, all on the terms and
conditions set forth in this Amendment.

 

NOW, THEREFORE, in consideration of the premises set forth above, and
for other good and valuable consideration, the receipt and adequacy of which
are hereby acknowledged,  the Parties
hereto hereby agree as follows:

 

1.1          AMENDMENT

 

1.1.1 Certain Provisions. The Parties hereby agree to amend the
Original Pledge Agreement as follows:

 

(a)           As used in the
Original Pledge Agreement, as amended hereby, the term “Note” shall have the
meaning given to such term in Recital B of this Amendment.

 

(b)           The definition of “Collateral”
in Section 1.1 (b) of the Original Pledge Agreement is hereby deleted
in its entirety and replaced with the following:

 

“All assets that constitute the Trust Estate (as defined in the
Indenture), including, but not limited to the following:

 

(a)           all of the issued
and outstanding general partnership interests now or hereafter owned by Pledgor
in the Partnership, together with any cash or property received in exchange or
in substitution for such interests (the aforesaid general

 

 

partnership interests and any income, proceeds, cash or other property
received in exchange or in substitution therefor is hereinafter referred to as
the “Pledged Interests”);  all
distributions which may be made on, or distributed in consequence of the
ownership of, the Pledged Interests; and all investment property, financial
assets, securities, securities entitlements, 
instruments or distributions of any kind issuable, issued or received
upon conversion of, in respect of, or in exchange for the Pledged Interests;

 

(b)           all investment
property, financial assets, securities, securities entitlements, equity
interests, subscriptions, warrants, options or other rights issued by the
Partnership, if any, which are now or hereafter owned by Pledgor (the “Additional
Collateral”);

 

(c)           all deposit
accounts, together with all of Pledgor’s right, title,  and interest in and to all sums of property
(including cash equivalents and other investments) now or at any time hereafter
on deposit therein, credited thereto or payable thereon, and all instruments,
documents, and other writing evidencing such deposit accounts;

 

(d)           any consideration
received or due to Pledgor, including any settlement, resolution or judgment
obtained by or for the benefit of Pledgor, arising from or related to any
claims or choses in action owned by Pledgor, including claims that arise from
or relate to the Partnership,  the assets
of the Partnership,  or the Pledged
Interests;  and

 

(e)           all proceeds of any
and all of the foregoing.

 

In the event subscriptions, warrants, options, or other rights are
issued or provided to Pledgor in connection with any of the Collateral, such
subscriptions, warrants, options,  and
rights shall be deemed to be part of the Collateral.”

 

(c)           The reference in Section 3.3(b) of
the Original Pledge Agreement to “Other Collateral” is hereby deleted in its
entirety and replaced with the term “Additional Collateral”, as such term is
defined in Section 1.1.1(b)(b) of this Amendment.

 

(d)           Section 6.1 of
the Original Pledge Agreement is hereby deleted in its entirety and replaced
with the following:

 

“In addition to any other rights accorded to Secured Party hereunder,
upon the occurrence and during the continuance of any Event of Default or the
maturity of the Note has occurred by acceleration or otherwise:”

 

1.2          MISCELLANEOUS

 

1.2.1        Headings
Descriptive.  The headings of the
several sections and subsections of this Amendment are inserted for convenience
only and shall not in any way affect the meaning or construction of any
provision of this Amendment.

 

2

 

1.2.2        Counterparts.
This Amendment may be executed in any number of counterparts and by the
different parties hereto on separate counterparts, each of which when so executed
and delivered shall be an original, but all of which shall together constitute
one and the same instrument.

 

1.2.3        Effect of
Amendment.  The Original Pledge
Agreement and the Second Amended Pledge Agreement, as modified by this
Amendment, is hereby ratified and confirmed by Pledgor and Secured Party in all
respects and constitutes the legal, valid and binding obligation of the
Parties, enforceable against the Parties in accordance with its terms.

 

1.2.4        Governing Law.  THIS AMENDMENT SHALL BE GOVERNED BY, AND
CONSTRUED AND INTERPRETED IN ACCORDANCE WITH THE LAWS OF THE STATE OF TEXAS.

 

[Signature pages follow]

 

3

 

IN WITNESS WHEREOF, the Parties have caused this Amendment to be duly
executed and delivered by their respective authorized officers as of the date
first written above.

 

	
   

  	
  PLEDGOR:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  MESA OFFSHORE TRUST, a Texas trust

  
	
   

  	
   

  	
   

  
	
   

  	
  By: The Bank of New York Trust Company, N.A.

  as attorney-in-fact for JPMORGAN BANK, N.A.,

  Trustee

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Mike Ulrich

  
	
   

  	
   

  	
  Name:

  	
  Mike Ulrich

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  
						

 

 

	
   

  	
  SECURED PARTY:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  JPMORGAN CHASE BANK, N.A.

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ David A. Weisbrod

  
	
   

  	
  Name:

  	
  David A. Weisbrod

  
	
   

  	
  Title:

  	
  Managing Director

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