Document:

Exhibit 10.2

 

FORBEARANCE AGREEMENT

 

FORBEARANCE AGREEMENT, dated as of September 14, 2019 (this “Forbearance Agreement”), with respect to (i) the Credit Agreement, dated as of May 24, 2012 (as amended, restated, amended and restated, modified or supplemented from time to time prior to the date hereof, the “Credit Agreement”), among EPE Acquisition, LLC, a Delaware limited liability company (successor-by-merger to EPE Holdings, LLC) (“Holdings”), EP Energy LLC (f/k/a Everest Acquisition LLC), a Delaware limited liability company (the “Borrower”), the banks, financial institutions and other lending institutions from time to time parties as lenders thereto (each a “Lender” and collectively, the “Lenders”), JPMorgan Chase Bank, N.A., as administrative agent for the Lenders (in such capacity, the “Administrative Agent”) and as collateral agent for the Lenders (in such capacity, the “Collateral Agent” and together with the Administrative Agent, in either or each applicable capacity, the “Agent Bank”), the swingline lender and an issuer of Letters of Credit, and each other Issuing Bank from time to time party thereto, and (ii) the Hedge Agreements described on Schedule I attached hereto, together with any Hedge Transactions in effect on the Forbearance Effective Date entered into under any such Hedge Agreements (the “Subject Hedge Agreements”).  Terms defined in the Credit Agreement and used herein shall have the meanings given to them in the Credit Agreement unless otherwise defined herein or the context otherwise requires.

 

W I T N E S S E T H:

 

 

WHEREAS, the Borrower and Holdings have heretofore entered into the Credit Agreement pursuant to which, upon the terms and conditions stated therein, the Issuing Banks have issued Letters of Credit and the Lenders have made loans and other extensions of credit to or for the benefit of the Borrower and its Restricted Subsidiaries.

 

WHEREAS, the Borrower and its Restricted Subsidiaries and certain Hedge Banks have entered into Hedge Transactions under the Subject Hedge Agreements.

 

WHEREAS, the Credit Parties have executed and delivered Guarantees, Security Documents and other Credit Documents to guaranty and secure, among other obligations, the Secured Obligations under the Credit Agreement and Hedge Transactions under the Subject Hedge Agreements.

 

WHEREAS, the Borrower delivered to the Administrative Agent a Notice of Default dated August 15, 2019, with respect to the Borrower’s failure to pay interest due on August 15, 2019, pursuant to that certain Indenture dated February 6, 2017 (the “Subject Indenture”), among the Borrower, Everest Acquisition Finance Inc., the subsidiary guarantors from time to time party thereto and Wilmington Trust, National Association, as trustee, which constituted a default under Section 6.01(a) of the Subject Indenture and a Default under the Section 11.4 of the Credit Agreement, and which Default will become an Event of Default under the Credit Agreement and may become a Hedge Default (as defined below) under one or more of the Subject Hedge Agreements, in each case, if such interest payment is not paid on or before the expiry of the grace period specified in the Subject Indenture (such Defaults and Events of Default, herein the “Specified Events of Default”).

 

 

WHEREAS, in accordance with and subject to the terms of the Credit Agreement, the Majority Lenders may direct the Administrative Agent to exercise remedies as set forth therein in respect of any Event of Default under the Credit Agreement.

 

WHEREAS, the Credit Parties have requested that the Agent Bank, each Issuing Bank, the Lenders, and the Hedge Banks party to the Subject Hedge Agreement, upon certain terms and conditions set forth in this Forbearance Agreement, forbear from exercising their rights and remedies for a limited period expiring on the Forbearance Termination Date (as defined below) arising as a result of the occurrence and continuation of the Specified Events of Default as provided herein.

 

WHEREAS, the Agent Bank, each Issuing Bank party hereto, the Lenders party hereto (the “Consenting Lenders”), which Consenting Lenders constitute the Majority Lenders, and each Hedge Bank party hereto (each, a “Consenting Hedge Bank”), are willing to grant such forbearance subject to the terms and conditions of this Forbearance Agreement and the other Credit Documents.

 

NOW, THEREFORE, in consideration of the premises and covenants contained herein and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto, intending to be legally bound hereby, agree as follows:

 

ARTICLE I
 DEFINITIONS

 

Section 1.1                                    Defined Terms. the following terms, for the purposes of this Forbearance Agreement, shall have the following meanings:

 

(a)                                 “Forbearance Effective Date” has the meaning given to such term in Section 3.1 hereof.

 

(b)                                 “Forbearance Period” means the period commencing on the Forbearance Effective Date and continuing until the Forbearance Termination Date.

 

(c)                                  “Forbearance Termination Date” means on the earlier of (i) September 22, 2019 at 11:59 p.m. (New York City time), or (ii) the date on which a Forbearance Termination Event occurs.

 

(d)                                 “Forbearance Termination Event” means the occurrence of any of the following events: (i) any Event of Default, other than the Specified Events of Default, shall occur or shall have occurred under the Credit Agreement or any of the Credit Documents or (ii) that certain Forbearance Agreement, dated as of the date hereof (the “Subject Indenture Forbearance Agreement”), among EP Energy LLC and Everest Acquisition Finance Inc., as issuers, the subsidiary guarantors party thereto, and the beneficial holders and/or investment advisors or managers of discretionary accounts for such beneficial holders of the notes issued under the Subject Indenture shall terminate or otherwise cease to be in full force and effect, or shall be amended or otherwise modified (other than any amendment or modification to extend the termination date thereof or waive compliance by any Obligor (as defined in the Subject Indenture) with any covenant thereunder).

 

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(e)                                  “Hedge Default” means an Event of Default or Termination Event, in each case, as defined in any applicable Hedge Agreement.

 

ARTICLE II
 FORBEARANCE

 

Section 2.1                                    Acknowledgement of Specified Events of Default.  Each of the Borrower, Holdings and each other Credit Party acknowledges and agrees as follows:

 

(a)                                 Each Credit Party specifically acknowledges the potential existence and continuance of the Specified Events of Default;

 

(b)                                 None of Agent Bank, any Issuing Bank, any Consenting Lender or any Consenting Hedge Bank has waived any of its respective rights, powers or remedies with respect to the Specified Events of Default (or any other Default or Event of Default), and no course of dealing or any passage of time on account of the Forbearance Period shall be considered or used as a basis for asserting an untimely exercise of any such party’s rights as to the Specified Events of Default or otherwise prejudice any such right, power, or remedy;

 

(c)                                  Subject to the terms of this Forbearance Agreement, upon the occurrence of any Specified Event of Default, the Administrative Agent and the Majority Lenders have the right to accelerate the principal of, and any accrued interest and fees in respect of, any or all Loans and any or all Obligations owing under the Credit Agreement or the other Credit Documents and to make demands upon the Borrower, Holdings and each other Credit Party for the payment in full of the Obligations owing under the Credit Agreement or any other Credit Document in accordance therewith; and

 

(d)                                 Subject to the terms of this Forbearance Agreement, upon the occurrence of any Specified Event of Default that constitutes a Hedge Default, each Hedge Bank has the right to exercise remedies with respect to any Hedge Transactions to which it is a party (including terminating such Hedge Transactions and setting off in accordance with any applicable agreements any final settlement payments thereunder against the principal of, and any accrued interest and fees in respect of, any or all Loans and any or all Obligations owing under the Credit Agreement or the other Credit Documents) and to make demands upon the Borrower, Holdings and each other Credit Party for the payment in full of the Obligations owing under any Hedge Agreement to with such Hedge Bank is a party in accordance with any such Hedge Agreement.

 

Section 2.2                                    Agreement to Forbear.  In reliance on the representations, warranties, covenants and agreements contained in this Forbearance Agreement, and subject to the satisfaction of each condition precedent set forth in Section 3.1 hereof, but only so long as the Forbearance Termination Date shall not have occurred, the Agent Bank, each Issuing Bank, each Consenting Lender and each Consenting Hedge Bank hereby agree to forbear during the Forbearance Period from exercising their rights and remedies under the Credit Documents, any Subject Hedge Agreement and applicable law arising as a result of the occurrence or continuance of the Specified Events of Default.  Notwithstanding the foregoing, the forbearance granted by the Agent Bank, the Issuing Banks, the Consenting Lenders and the Consenting Hedge Banks shall not constitute, and shall not be deemed to constitute a waiver or relinquishment of (x) the Specified

 

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Events of Default or of any other Default or Event of Default under the Credit Documents or (y) the Specified Events of Default or of any other Hedge Default under any Subject Hedge Agreement, and each such party hereby expressly reserves all rights, remedies, and claims under the Credit Documents and any Subject Hedge Agreement, as applicable.  On and after the Forbearance Termination Date, the agreement hereunder of the Agent Bank, each Issuing Bank, each Consenting Lender and each Consenting Hedge Bank to forbear shall terminate automatically without further act or action by any of the Agent Bank, any Issuing Bank, any Lender or any Hedge Bank, and the Agent Bank, the Issuing Banks, the Lenders and the Hedge Banks shall be entitled to exercise any and all rights and remedies available to any of them under the Credit Agreement, any other Credit Documents or any Hedge Agreement, as applicable, at law, in equity or otherwise without any further lapse of time, expiration of applicable grace periods or requirements of notice, all of which are hereby expressly waived by each Credit Party.  For the avoidance of doubt, the foregoing forbearance shall not prohibit the Agent Bank from delivering notices relating to any other Defaults, Events of Default or a Forbearance Termination Event.

 

ARTICLE III
 CONDITIONS TO EFFECTIVENESS

 

Section 3.1                                    Conditions to Effectiveness.  This Forbearance Agreement shall be effective on the first day that the following conditions have been satisfied (such date, the “Forbearance Effective Date”): (i) the Administrative Agent shall have received from the Majority Lenders, the Borrower, Holdings and the other Credit Parties, counterparts of this Forbearance Agreement signed on behalf of each such Person and (ii) the Administrative Agent shall have received a copy of the Subject Indenture Forbearance Agreement, which shall be in form and substance reasonably satisfactory to the Administrative Agent and the effectiveness of the Subject Indenture Forbearance Agreement shall have occurred (or shall occur substantially concurrently with the Forbearance Effective Date).

 

Section 3.2                                    Delegation to Administrative Agent.  The Administrative Agent is hereby authorized and directed to declare this Forbearance Agreement to be effective and to declare the occurrence of the Forbearance Effective Date when it has received documents confirming or certifying, to the satisfaction of the Administrative Agent, compliance with the conditions set forth in Section 3.1 or the waiver of such conditions as permitted in Section 13.01 of the Credit Agreement.  Such declaration shall be final, conclusive and binding upon all parties to the Credit Agreement and the Consenting Hedge Banks for all purposes.

 

ARTICLE IV
 OTHER ACKNOWLEDGMENTS AND AGREEMENTS;
 REPRESENTATIONS AND WARRANTIES

 

Section 4.1                                    Acknowledgement of Indebtedness.  The Borrower, Holdings and each other Credit Party acknowledges that on the date hereof all outstanding Obligations are payable in accordance with the terms of the Credit Documents, the Hedge Agreements and the Cash Management Agreements, and the Borrower, Holdings and each other Credit Party waives any defense, offset, counterclaim or recoupment with respect thereto.

 

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Section 4.2                                    Ratification and Affirmation; Representations and Warranties.  Each of the Borrower, Holdings and each other Credit Party hereby (a) acknowledges the terms of this Forbearance Agreement; (b) ratifies and affirms its obligations under, and acknowledges its continued liability under, each Credit Document (including, with respect to the Guarantors, the Guarantee) to which it is a party and agrees that each Credit Document to which it is a party remains in full force and effect; (c) ratifies and affirms its obligations under, and acknowledges its continued liability under, each Subject Hedge Agreement and agrees that each Subject Hedge Agreement remains in full force and effect; (d) represents and warrants to the Agent Bank, each Issuing Bank and the Consenting Lenders that as of the Forbearance Effective Date, other than with respect to the Specified Events of Default and after giving effect to the terms of this Forbearance Agreement that all of the representations and warranties contained in each Credit Document to which it is a party are true and correct in all material respects (or, if such representation or warranty is already qualified by materiality, in all respects), except to the extent any such representations and warranties are expressly limited to an earlier date, in which case, such representations and warranties shall continue to be true and correct in all material respects (or, if such representation or warranty is already qualified by materiality, in all respects) as of such specified earlier date, and (e) represents and warrants to the Agent Bank, each Issuing Bank, the Consenting Lenders and the Consenting Hedge Banks that no Default, Event of Default or Hedge Default (in each case, other than the Specified Events of Default) has occurred and is continuing.  Each Credit Party hereby acknowledges, ratifies, reaffirms and agrees that the first priority (subject to Liens permitted by Section 10.2 of the Credit Agreement), perfected Liens and security interests created thereby in favor of the Collateral Agent in the Collateral, are and will remain in full force and effect and binding on such Credit Party, and are enforceable in accordance with their respective terms and applicable law.

 

Section 4.3                                    No Control.  No act committed or action taken by the Agent Bank prior to the Forbearance Effective Date under this Forbearance Agreement or the Credit Documents will be used, construed, or deemed to hold the Agent Bank to be in control of the Credit Parties, or the governance, management or operations of the Credit Parties for any purpose, without limitation, or to be participating in the management of the Credit Parties or acting as a “responsible person” or “owner or operator” or a person in “control” with respect to the governance, management or operation of the Credit Parties or their respective businesses (as such terms, or any similar terms, are used in the Code, Title 11 of the United States Code entitled “Bankruptcy”, or the Comprehensive Environmental Response, Compensation, and Liability Act of 1980, each as may be amended from time to time, or any other federal or state statute, at law, in equity, or otherwise) by virtue of the interests, rights, and remedies granted to or conferred upon the Agent Bank under this Forbearance Agreement or the Credit Documents.

 

Section 4.4                                    No Obligation.  Each Credit Party hereby acknowledges and understands that upon the expiration or earlier termination of the Forbearance Period, if the Specified Events of Default have not been waived by written agreement in accordance with the Credit Agreement, or if there shall at any time exist any other Event of Default, then the Agent Bank, the Issuing Banks, the Consenting Lenders and the Consenting Hedge Banks shall have the right to proceed to exercise any or all available rights and remedies, which may include, without limitation, foreclosure on the Collateral and/or institution of legal or equitable proceedings.  The Agent Bank, each Issuing Bank, the Lenders and the Hedge Banks have not and shall have no obligation whatsoever to extend the maturity of any Obligations, waive any Default or Event of

 

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Default, defer any payments, or further forbear from exercising their rights and remedies under the Credit Agreement, any other Credit Documents or any Hedge Agreement, as applicable, at law, in equity or otherwise.

 

Section 4.5                                    Review and Construction of Documents.  Each Credit Party hereby acknowledges, and represents and warrants to the Agent Bank, the Issuing Banks, the Consenting Lenders and the Consenting Hedge Banks that such Credit Party has (a) had the opportunity to consult with legal counsel of its own choice and has been afforded an opportunity to review this Forbearance Agreement with its legal counsel, (b) reviewed this Forbearance Agreement and fully understands the effects thereof and all terms and provisions contained herein, and (c) executed this Forbearance Agreement of its own free will and volition.  The recitals contained in this Forbearance Agreement shall be construed to be part of the operative terms and provisions of this Forbearance Agreement.

 

Section 4.6                                    Credit Document.  This Forbearance Agreement is a Credit Document for all purposes of the Credit Agreement and other Credit Documents.  To the extent of a conflict or inconsistency between this Forbearance Agreement and any other of the other Credit Documents, this Forbearance Agreement shall control.

 

Section 4.7                                    Lender Direction.  Each Issuing Bank, each Consenting Lender and each Consenting Hedge Bank hereby directs and authorizes each Agent Bank to enter into this Forbearance Agreement.

 

ARTICLE V
 DISCLAIMER; WAIVER; RELEASE

 

Section 5.1                                    DISCLAIMER OF ANY CLAIMS, OFFSETS OR BREACHES.  IN ORDER TO INDUCE THE AGENT BANK, THE ISSUING BANKS, THE CONSENTING LENDERS AND THE CONSENTING HEDGE BANKS TO ENTER INTO THIS FORBEARANCE AGREEMENT, EACH OF THE BORROWER, HOLDINGS AND THE OTHER CREDIT PARTIES, ON BEHALF OF THEMSELVES AND THEIR RESPECTIVE RELATED PARTIES (COLLECTIVELY, THE “RELEASING PARTIES”), ACKNOWLEDGES AND AGREES THAT: (A) NONE OF THE RELEASING PARTIES HAS ANY CLAIM OR CAUSE OF ACTION AGAINST THE AGENT BANK, THE SWINGLINE LENDER, ANY ISSUING BANK, ANY CONSENTING LENDER OR ANY CONSENTING HEDGE BANK, IN EACH CASE, ALONG WITH ANY OF THEIR RESPECTIVE RELATED PARTIES (COLLECTIVELY, THE “RELEASED PARTIES”) RELATING TO OR ARISING OUT OF THE CREDIT AGREEMENT, THE OTHER CREDIT DOCUMENTS, THE SUBJECT HEDGE AGREEMENTS, OR ANY AGREEMENT ENTERED INTO IN CONNECTION THEREWITH, IN EACH CASE, WHICH EXISTED ON OR PRIOR TO THE FORBEARANCE EFFECTIVE DATE, (B) TO THE KNOWLEDGE OF ANY OFFICER OF THE BORROWER, HOLDINGS OR ANY OTHER CREDIT PARTY, NONE OF THE RELEASING PARTIES HAS ANY OFFSET RIGHT, COUNTERCLAIM OR DEFENSE OF ANY KIND AGAINST ANY OF THEIR RESPECTIVE OBLIGATIONS, INDEBTEDNESS OR LIABILITIES TO THE AGENT BANK, THE SWINGLINE LENDER, ANY ISSUING BANK, ANY CONSENTING LENDER OR ANY CONSENTING HEDGE BANK, AND (C) EACH OF THE AGENT BANK, THE SWINGLINE LENDER, EACH ISSUING BANK, EACH CONSENTING LENDER AND

 

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EACH CONSENTING HEDGE BANK HAS HERETOFORE PROPERLY PERFORMED AND SATISFIED IN A TIMELY MANNER ALL OF ITS OBLIGATIONS TO THE BORROWER, HOLDINGS AND ITS OR THEIR SUBSIDIARIES UNDER THE CREDIT AGREEMENT, THE OTHER CREDIT DOCUMENTS AND ANY SUJBECT HEDGE AGREEMENT, IN EACH CASE, TO WHICH IT IS A PARTY.  EACH OF THE BORROWER, HOLDINGS AND THE OTHER CREDIT PARTIES WISHES TO ELIMINATE ANY POSSIBILITY THAT ANY PAST CONDITIONS, ACTS, OMISSIONS, EVENTS, CIRCUMSTANCES OR MATTERS WOULD IMPAIR OR OTHERWISE ADVERSELY AFFECT ANY OF THE AGENT BANK’S, THE SWINGLINE LENDER’S, ANY ISSUING BANK’S, ANY CONSENTING LENDER’S OR ANY CONSENTING HEDGE BANK’S RIGHTS, INTERESTS, CONTRACTS, OR REMEDIES UNDER THE CREDIT AGREEMENT, THE OTHER CREDIT DOCUMENTS OR ANY SUBJECT HEDGE AGREEMENT, WHETHER KNOWN OR UNKNOWN, AS APPLICABLE.  FOR THE AVOIDANCE OF DOUBT, NOTHING HEREIN SHALL BE CONSTRUED TO MODIFY ANY OF THE OBLIGATIONS OF THE CONSENTING HEDGE BANKS UNDER THE SUBJECT HEDGE AGREEMENTS.

 

Section 5.2                                    WAIVER AND RELEASE.  THEREFORE, EACH OF THE BORROWER, HOLDINGS AND THE OTHER CREDIT PARTIES, ON BEHALF OF THE RELEASING PARTIES, UNCONDITIONALLY RELEASES, WAIVES AND FOREVER DISCHARGES (X) ANY AND ALL LIABILITIES, OBLIGATIONS, DUTIES, PROMISES OR INDEBTEDNESS OF ANY KIND OF THE AGENT BANK, THE SWINGLINE LENDER, ANY ISSUING BANK, ANY CONSENTING LENDER OR ANY CONSENTING HEDGE BANK TO THE RELEASING PARTIES, EXCEPT THE OBLIGATIONS TO BE PERFORMED BY ANY OF THEM ON OR AFTER THE DATE HEREOF AS EXPRESSLY STATED IN THE CREDIT AGREEMENT AND THE OTHER CREDIT DOCUMENTS OR ANY SUBJECT HEDGE AGREEMENT, AND (Y) ANY AND ALL CLAIMS, OFFSETS, CAUSES OF ACTION, SUITS OR DEFENSES OF ANY KIND WHATSOEVER (IF ANY), WHETHER ARISING AT LAW OR IN EQUITY, WHICH ANY CREDIT PARTY OWNS AND HOLDS AS OF THE DATE HEREOF, OR HAS AT ANY TIME PRIOR TO THE DATE HEREO OWNED OR HELD, WHETHER KNOWN OR UNKNOWN, WHICH THE RELEASING PARTIES MIGHT OTHERWISE HAVE AGAINST ANY OF THE RELEASED PARTIES, IN EACH CASE UNDER CLAUSE (X) OR CLAUSE (Y), (A) ON ACCOUNT OF ANY PAST OR PRESENTLY EXISTING CONDITION, ACT, OMISSION, REPRESENTATION, EVENT, CONTRACT, LIABILITY, OBLIGATION, INDEBTEDNESS, CLAIM, CAUSE OF ACTION, DEFENSE, CIRCUMSTANCE OR MATTER OF EACH AND EVERY KIND OR NATURE AND (B) RELATING TO OR ARISING OUT OF, IN ANY RESPECT, THE CREDIT AGREEMENT, THE CREDIT DOCUMENTS, ANY SUBJECT HEDGE AGREEMENT OR ANY AGREEMENT ENTERED INTO IN CONNECTION THEREWITH.  THE RELEASED PARTIES SHALL NOT BE LIABLE WITH RESPECT TO, AND EACH OF THE BORROWER, HOLDINGS AND THE OTHER CREDIT PARTIES HEREBY WAIVES, RELEASES, RELINQUISHES, AND COVENANTS AND AGREES NOT TO SUE FOR, ANY DAMAGES WHATSOVER, INCLUDING WITHOUT LIMITATION ANY SPECIAL, INDIRECT, CONSEQUENTIAL, LOST PROFIT, AND PUNITIVE DAMAGES RELATING TO OR ARISING OUT OF, IN ANY RESPECT, THE CREDIT AGREEMENT, THE OTHER CREDIT DOCUMENTS AND ANY SUBJECT HEDGE AGREEMENT, OR ARISING OUT OF ANY AND ALL ACTIVITIES IN CONNECTION HEREWITH OR THEREWITH (WHETHER BEFORE, ON OR AFTER THE DATE HEREOF).

 

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Section 5.3                                    ACKNOWLEDGMENT OF CONSIDERATION.  THE RELEASING PARTIES ACKNOWLEDGE THAT THE FOREGOING DISCLAIMER OF CLAIMS, OFFSETS, AND BREACHES AND THE WAIVER AND RELEASE WAS SEPARATELY BARGAINED FOR AND IS A KEY ELEMENT OF THIS FORBEARANCE AGREEMENT.

 

ARTICLE VI
 MISCELLANEOUS

 

Section 6.1                                    Counterparts. This Forbearance Agreement may be executed in any number of separate counterparts by the parties hereto (including by telecopy or via electronic mail), each of which counterparts when so executed shall be an original, but all the counterparts shall together constitute one and the same instrument.

 

Section 6.2                                    GOVERNING LAW. THIS FORBEARANCE AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES UNDER THIS FORBEARANCE AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

 

Section 6.3                                    WAIVER OF JURY TRIAL.  SECTION 13.15 OF THE CREDIT AGREEMENT IS INCORPORATED BY REFERENCE HEREIN, MUTATIS MUTANDIS.

 

Section 6.4                                    FINAL AGREEMENT.  THIS FORBEARANCE AGREEMENT AND THE CREDIT DOCUMENTS AS INCORPORATED HEREIN REPRESENT THE FINAL AGREEMENT AMONG THE PARTIES HERETO WITH RESPECT TO THE MATTERS HEREIN AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES.  THERE ARE NO ORAL AGREEMENTS BETWEEN THE PARTIES.

 

Section 6.5                                    No Third-Party Beneficiaries.  No Person other than the Credit Parties, the Administrative Agent, the Collateral Agent and the Lenders and Hedge Banks party hereto shall have any rights hereunder or be entitled to rely on this Agreement and all third-party beneficiary rights are hereby expressly disclaimed.

 

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

 

	
 
    	
EPE ACQUISITION LLC (SUCCESSOR TO EPE HOLDINGS   LLC)
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Kyle A. McCuen
    
	
 
    	
 
    	
Name: 
    	
Kyle A. McCuen
    
	
 
    	
 
    	
Title: 
    	
Senior Vice President, Chief Financial Officer   and Treasurer
    
	
 
    	
 
    	
 
    
	
 
    	
EP ENERGY LLC (F/K/A EVEREST ACQUISITION LLC)
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Kyle A. McCuen
    
	
 
    	
 
    	
Name: 
    	
Kyle A. McCuen
    
	
 
    	
 
    	
Title: 
    	
Senior Vice President, Chief Financial Officer   and Treasurer
    

 

Signature Page — Forbearance Agreement

 

 

	
 
    	
EVEREST ACQUISITION   FINANCE INC.
    
	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Kyle A. McCuen
    
	
 
    	
 
    	
Name: 
    	
Kyle A. McCuen
    
	
 
    	
 
    	
Title: 
    	
Senior Vice President,   Chief Financial Officer and Treasurer
    
	
 
    	
 
    
	
 
    	
EP ENERGY GLOBAL LLC
    
	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Kyle A. McCuen
    
	
 
    	
 
    	
Name: 
    	
Kyle A. McCuen
    
	
 
    	
 
    	
Title: 
    	
Senior Vice President,   Chief Financial Officer and Treasurer
    
	
 
    	
 
    
	
 
    	
EP ENERGY MANAGEMENT,   L.L.C.
    
	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Kyle A. McCuen
    
	
 
    	
 
    	
Name:
    	
Kyle A. McCuen
    
	
 
    	
 
    	
Title:
    	
Senior Vice President,   Chief Financial Officer and Treasurer
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
EP ENERGY RESALE   COMPANY, L.L.C.
    
	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Kyle A. McCuen
    
	
 
    	
 
    	
Name:
    	
Kyle A. McCuen
    
	
 
    	
 
    	
Title:
    	
Senior Vice President,   Chief Financial Officer and Treasurer
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
EP ENERGY E&P   COMPANY, L.P.
    
	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Kyle A. McCuen
    
	
 
    	
 
    	
Name:
    	
Kyle A. McCuen
    
	
 
    	
 
    	
Title:
    	
Senior Vice President,   Chief Financial Officer and Treasurer
    

 

Signature Page — Forbearance Agreement

 

 

	
 
    	
JPMORGAN CHASE BANK, N.A., as Administrative   Agent, Collateral Agent, an Issuing Bank, a Lender and a Hedge Bank
    
	
 
    	
 
    
	
 
    	
By:   
    	
/s/   Jo Linda Papadakis
    
	
 
    	
 
    	
Name:   
    	
Jo   Linda Papadakis
    
	
 
    	
 
    	
Title:   
    	
Authorized   Officer
    

 

Signature Page — Forbearance Agreement

 

 

	
 
    	
CITIBANK,   N.A., as LC Issuer
    
	
 
    	
 
    
	
 
    	
By:   
    	
/s/   William Washburn
    
	
 
    	
 
    	
Name:   
    	
William   Washburn
    
	
 
    	
 
    	
Title:   
    	
Vice   President
    

 

Signature Page — Forbearance Agreement

 

 

	
 
    	
CITIBANK,   NA, as a Lender
    
	
 
    	
 
    
	
 
    	
By:   
    	
/s/   Paul Giarratano
    
	
 
    	
 
    	
Name:   
    	
Paul   Giarratano
    
	
 
    	
 
    	
Title:   
    	
Vice   President
    

 

Signature Page — Forbearance Agreement

 

 

	
 
    	
BMO   HARRIS FINANCING, INC., as a Lender
    
	
 
    	
 
    
	
 
    	
By:   
    	
/s/   Marc Maslanka
    
	
 
    	
 
    	
Name:   
    	
Marc   Maslanka
    
	
 
    	
 
    	
Title:   
    	
Vice   President
    

 

Signature Page — Forbearance Agreement

 

 

	
 
    	
CREDIT SUISSE AG, CAYMAN ISLANDS BRANCH, as a   Lender
    
	
 
    	
 
    
	
 
    	
By:   
    	
/s/   Didler Siffer
    
	
 
    	
 
    	
Name:
    	
Didler   Siffer
    
	
 
    	
 
    	
Title:
    	
Authorized   Signatory
    
	
 
    	
 
    	
 
    
	
 
    	
By:   
    	
/s/   Bryan J. Matthews
    
	
 
    	
 
    	
Name:   
    	
Bryan   J. Matthews
    
	
 
    	
 
    	
Title:   
    	
Authorized   Signatory
    

 

Signature Page — Forbearance Agreement

 

 

	
 
    	
CREDIT   SUISSE LOAN FUNDING, as a Lender
    
	
 
    	
 
    
	
 
    	
By:   
    	
/s/   Christopher S. Campbell
    
	
 
    	
 
    	
Name:   
    	
Christopher   S. Campbell
    
	
 
    	
 
    	
Title:   
    	
Director
    
	
 
    	
 
    	
 
    	
 
    

 

Signature Page — Forbearance Agreement

 

 

	
 
    	
ROYAL   BANK OF CANADA, as a Lender
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Amy G. Josephson
    
	
 
    	
 
    	
Name:   
    	
Amy   G. Josephson
    
	
 
    	
 
    	
Title:   
    	
Authorized   Signatory
    

 

Signature Page — Forbearance Agreement

 

 

	
 
    	
TORONTO   DOMINION (NEW YORK) LLC, as a Lender
    
	
 
    	
 
    
	
 
    	
By:   
    	
/s/   MICHAEL BOROWIECKI
    
	
 
    	
 
    	
Name:   
    	
MICHAEL   BOROWIECKI
    
	
 
    	
 
    	
Title:   
    	
AUTHORIZED   SIGNATORY
    

 

Signature Page — Forbearance Agreement

 

 

	
 
    	
SUMITOMO MITSUI BANKING CORPORATION, as a Lender
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Toshitake Funaki
    
	
 
    	
 
    	
Name:
    	
Toshitake   Funaki
    
	
 
    	
 
    	
Title:
    	
MD&GM
    

 

Signature Page — Forbearance Agreement

 

 

	
 
    	
DNB   CAPITAL LLC, as a Lender
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   James Grubb
    
	
 
    	
 
    	
Name:
    	
James   Grubb
    
	
 
    	
 
    	
Title:
    	
First   Vice President
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Andrea Ozbolt
    
	
 
    	
 
    	
Name:
    	
Andrea   Ozbolt
    
	
 
    	
 
    	
Title:
    	
First   Vice President
    

 

Signature Page — Forbearance Agreement

 

 

	
 
    	
GOLDMAN   SACHS BANK USA, as   a Lender
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Jamie Minieri
    
	
 
    	
 
    	
Name:
    	
Jamie   Minieri
    
	
 
    	
 
    	
Title:
    	
Authorized   Signatory
    

 

Signature Page — Forbearance Agreement

 

 

	
 
    	
CITIBANK,   N.A., as a Hedge Bank
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   William Washburn
    
	
 
    	
 
    	
Name:
    	
William   Washburn
    
	
 
    	
 
    	
Title:
    	
Vice   President
    

 

Signature Page — Forbearance Agreement

 

 

	
 
    	
DNB   BANK ASA, as a Hedge Bank
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Mita Zalavadia
    
	
 
    	
 
    	
Name:
    	
Mita   Zalavadia
    
	
 
    	
 
    	
Title:
    	
Assistant   Vice President
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Samantha Stone
    
	
 
    	
 
    	
Name:
    	
Samantha   Stone
    
	
 
    	
 
    	
Title:
    	
Assistant   Vice President
    

 

Signature Page — Forbearance Agreement

 

 

Schedule I

 

Subject Hedge Agreements

 

1992 ISDA Master Agreement, dated as of July 17, 2012, between Citibank, N.A. and EP Energy LLC

 

1992 ISDA Master Agreement, dated as of May 24, 2012, between JPMorgan Chase Bank, National Association and EP Energy LLC

 

1992 ISDA Master Agreement, dated as of April 11, 2017, between DNB Bank ASA and EP Energy LLCExhibit

Exhibit 10.1
Zuora, Inc.
3050 S. Delaware Street, Suite 301
San Mateo, CA 94403

May 29, 2019
Dear Marc:
This Transition Agreement (the “Agreement”) is made and entered into as of May 29, 2019 (the “Transition Start Date”) and confirms the terms of the agreement we have reached with you with respect to your transition and departure from Zuora, Inc. (“Zuora” or the “Company”).  

		
	1.
	Transition Period. Effective on the Transition Start Date, you will no longer serve as Zuora’s President and Executive Vice President of Worldwide Sales and you will be relieved of all of the duties of that role. The period from the Transition Start Date through June 14, 2019 (the “Separation Date”) shall be referred to in this Agreement as the “Transition Period”.  During the Transition Period, you will serve as a non-officer employee of Zuora in an advisory role reporting to Zuora’s Chief Executive Officer.  During the Transition Period:

		
	(a)
	You will continue to be paid your current base salary on Zuora’s regular pay dates;

		
	(b)
	You will continue to vest with respect to any outstanding equity of Zuora you hold as of the Transition Start Date; 

		
	(c)
	You will continue to participate on an active employee basis in all Zuora-sponsored welfare and benefit plans; 

		
	(d)
	You will be eligible to participate in Zuora’s Corporate Bonus Plan,  prorated through the Separation Date, at the same rate of achievement, and paid at the same time, as other Zuora employees who participate in that plan; and

		
	(e)
	You will not be eligible to participate in any other Zuora bonus or cash incentive plans.

For the avoidance of doubt, you understand and agree that you are not entitled to any severance payments or benefits, under any other agreement between you and Zuora or otherwise, and that the terms of this agreement supersede the terms of any previous agreement that you had with Zuora with respect to severance payments or benefits.

		
	2.
	Consulting Period. At the end of the Separation Date, you will cease being an employee of Zuora. If you sign this Agreement and on the Separation Date you sign a second release of all claims in substantially the form of Exhibit A attached hereto that will be provided to you by Zuora on or prior to the Separation Date, then from June 15, 2019 through December 2, 2019 (the “Consulting Period”), Zuora agrees to retain you as a consultant of Zuora and you agree that during the Consulting Period you will provide advisory and transition services to Zuora. Assignment of these services shall be at the direction of Zuora’s Chief Executive Officer.  During the Consulting Period:

    

		
	(a)
	In consideration for all of the services that you provide to Zuora during the Consulting Period, you will receive the following payments, to be reported to you and the appropriate taxing authorities on an IRS Form 1099:

		
	i.
	A lump-sum consulting fee of $168,690.13, without any withholdings, constituting the equivalent of your gross pay at your current base salary rate from June 15, 2019 through the end of the Consulting Period;

		
	ii.
	A lump-sum payment in the amount of $9,639.05, without any withholdings, which equals 100% of the applicable COBRA premiums for the continued coverage under Zuora’s health, dental and vision plans, including coverage for your eligible dependents, for the period from July 1, 2019 through the end of the Consulting Period; and

		
	(b)
	You will not be eligible to participate in Zuora’s Corporate Bonus Plan or any other Zuora employee benefits, bonus or cash incentive plans.

		
	3.
	Equity Awards. Treatment of your unvested restricted share awards will be in accordance with the provisions of Zuora’s applicable equity incentive plan under which they were granted and the corresponding grant agreements (the “Equity Agreements”); provided, however, you understand and agree that notwithstanding anything to the contrary in the Equity Agreements, all of the restricted shares on which the restrictions have not lapsed and all unvested equity as of the Separation Date of June 14, 2019 will be forfeited as of that date.  You acknowledge and agree that you have no rights in or with respect to Zuora’s stock other than as described in Paragraph 1 (during the Transition Period) and this Paragraph 3.  Options you hold that are vested are exercisable with respect to the vested shares at any time until three months after the end of the Consulting Period. Except as expressly set forth in this Paragraph 3, all of the terms set forth in the Equity Agreements will remain in full force and effect.

		
	4.
	Return of Company Property. You agree that on or before the Separation Date, you will return all Zuora assets including (without limitation) phones, laptop and/or tablet computer, keys, credit cards, card key passes and any other property that you received in connection with your employment including copies of documents that belong to Zuora and files stored on your computer(s) that contain information belonging to Zuora. 

		
	5.
	Customer Contact. You agree that during the Transition Period, any contact by you, verbal, written, electronic or otherwise, with Zuora customers, prospective customers, suppliers, contractors or partners will be coordinated through Tien Tzuo, Zuora’s Chief Executive Officer, and you may not have any such contact without prior approval from Mr. Tzuo. 

		
	6.
	General Release of all Claims. In consideration for Zuora agreeing to retain you as a consulting during the Consulting Period as described in Paragraph 2 above, to the fullest extent permitted by law, you waive, release and promise never to assert any claims or causes of action, whether or not now known, against Zuora or its predecessors, successors or past or present subsidiaries, stockholders, directors, officers, employees, consultants, attorneys, agents, assigns and employee benefit plans with respect to any matter, including (without limitation) any matter related to your employment with Zuora or the termination of that employment, including (without limitation) claims to attorneys’ fees or costs, claims of wrongful discharge, constructive 

2
    

discharge, emotional distress, defamation, invasion of privacy, fraud, breach of contract or breach of the covenant of good faith and fair dealing and any claims of discrimination, retaliation or harassment based on sex, age, race, national origin, disability or any other basis under the Title VII of the Civil Rights Act of 1964, the California Fair Employment and Housing Act, the Age Discrimination in Employment Act of 1967, the Americans with Disabilities Act and all other laws and regulations relating to employment.  However, this release covers only those claims that arose prior to the execution of this Agreement and only those claims that may be waived by applicable law.  Execution of this Agreement does not bar any claim that arises hereafter, including (without limitation) a claim for breach of this Agreement and does not waive any claims for alleged work-related injuries that you have filed with Zuora’s workers’ compensation insurance company.
		
	7.
	Waiver.  You expressly waive and release any and all rights and benefits under Section 1542 of the California Civil Code (or any analogous law of any other state), which reads as follows:

A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS THAT THE CREDITOR OR RELEASING PARTY DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE AND THAT,  IF KNOWN BY HIM OR HER WOULD HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR OR RELEASED PARTY.
		
	8.
	Effective Date and Revocation. You have up to 21 days after you receive this Agreement to review it.  You are advised to consult an attorney of your own choosing (at your own expense) before signing this Agreement.  Furthermore, you have up to seven days after you sign this Agreement to revoke it.  If you wish to revoke this Agreement after signing it, you may do so by delivering a letter of revocation to me.  If you do not revoke this Agreement, the eighth day after the date you sign it will be the “Effective Date.”  Because of the seven-day revocation period, no part of this Agreement will become effective or enforceable until the Effective Date.

		
	9.
	Legal Proceedings. You agree that you will cooperate fully with Zuora, regarding existing and future legal or administrative proceedings or asserted claims relating to events which occurred during your employment in which Zuora is a party, and as to which you might in Zuora’s view have personal knowledge, including without limitation the execution of affidavits or other documents providing information requested by Zuora.

		
	10.
	No Admission.  Nothing contained in this Agreement will constitute or be treated as an admission by you or Zuora of liability, any wrongdoing or any violation of law.

		
	11.
	Nondisclosure, Assignment and Non-Solicitation Agreement.  You agree that at all times during and after your employment with Zuora, you were and shall remain bound by the Employee Nondisclosure, Assignment and Non-Solicitation Agreement (the “Nondisclosure Agreement”) that is attached to this Agreement as Exhibit B.

		
	12.
	Confidential and Proprietary Information. Without in any way limiting your general legal obligation to maintain the confidentiality of Zuora confidential and proprietary information, as a condition of receiving any of the benefits and payments provided by this Agreement, you agree to keep all confidential and proprietary information of Zuora, its subsidiaries and affiliated companies, including joint venture partners, strictly confidential, and not to disclose any such 

3
    

confidential or proprietary information to any other person except to the extent that disclosure is required by law, court order, or governmental inquiry. For purposes of this paragraph, confidential and proprietary information includes, but is not limited to, any non-public trade secret or commercially sensitive or valuable information concerning the business affairs, customers, technologies, and personnel of Zuora and any of its affiliated entities, and includes among other information:
 
	
				
	 
	•
	 
	information that is related to any programs or procurements in which you have been involved or about which you have obtained information during your employment at Zuora;

 
	
				
	 
	•
	 
	information concerning Zuora’s customers, clients, or prospects, and their products, processes and policies;

 
	
				
	 
	•
	 
	information concerning the management, policies, strategies, and finances of Zuora; and

 
	
				
	 
	•
	 
	information regarding the officers and employees of Zuora.

You hereby agree to return to Zuora all Zuora confidential and proprietary information and property, whether located in files, memoranda, documents, or on computers, laptops, phones, removable media or other portable storage devices, and that you will not misappropriate, upload or download, transfer to any third party, or otherwise share or distribute Zuora confidential or proprietary data. You may retain your rolodex and a copy of your electronic address book to the extent they only contain contact information.

		
	13.
	Ethics Compliance. You hereby represent and warrant that, to the best of your knowledge, you have complied fully with all Zuora policies related to ethics and compliance, and that you have disclosed to Zuora all matters of which you are aware which are required to be disclosed by such policies, including any allegations regarding the possible violation of any of Zuora’s ethical standards, compliance obligations or legal obligations. In particular, you represent and warrant that, to the best of your knowledge except as so disclosed by you in writing to a responsible officer of the Zuora, you have no information which you believe could be the basis for any violation of Zuora ethics standards, policies or legal obligations or the basis of any ethical complaint against Zuora or any of its officers and employees.

		
	14.
	Insider Information. During your employment with Zuora, you have been treated as an “insider” for securities law purposes. Please review your obligations regarding your treatment of insider information, and remember that any financial plan, program, estimate, financial performance data or matter not readily available to the general public shall be maintained in strict confidence and may not be disclosed or discussed publicly. Remember that you remain subject to Zuora’s securities trading policies and practices for a period of ninety (90) days following your Separation Date.

		
	15.
	Non-Disparagement and Representation. You agree not to disparage Zuora, its products, services, officers, directors and employees. Nothing in this Agreement shall prohibit you or Zuora or its officers, directors or employees from complying with any valid subpoena or court order or 

4
    

from responding truthfully to a governmental inquiry or investigation. In particular, you agree that you will not, without prior written consent of Zuora:
 
	
				
	 
	•
	 
	engage in any conduct or make any third party or media statements, including any statements on the Internet or any other electronic media, or cause any such statements to be made, regarding Zuora’s business or customers or officers and employees, or the circumstances leading to the cessation of your employment with Zuora which are disparaging of the reputation or good name of Zuora or any of its officers, directors or employees;

 
	
				
	 
	•
	 
	represent yourself as (a) continuing to be employed by Zuora after the cessation of your employment on June 14, 2019, or (b) connected with or related to the business of Zuora or to Zuora after the cessation of the Consulting Period on December 2, 2019.

		
	16.
	Governing Law and Arbitration. This Agreement shall be governed by and construed and enforced in accordance with the laws of California (other than their choice-of law provisions). Any dispute arising under this Agreement shall be settled exclusively through arbitration in San Francisco, California. Such arbitration shall be conducted in accordance with the rules of the American Arbitration Association before a single arbitrator. The decision of the arbitrator shall be final and binding on both parties. Judgment may be entered on the award of the arbitrator in any court having proper jurisdiction.

		
	17.
	Entire Agreement. Except as expressly provided in this Agreement, this Agreement renders null and void and completely supersedes any prior written, oral or other agreements or representation between you and Zuora and this Agreement constitutes the entire agreement between you and Zuora regarding the subject matter of this Agreement. You acknowledge that you have not relied on any representations, promises, or agreements of any kind made in connection with your decision to sign this Agreement except for those set forth in this Agreement. This Agreement may be modified only in a written document signed by you and a duly authorized officer of Zuora.

		
	18.
	Severability.  If any term of this Agreement is held to be invalid, void or unenforceable, the remainder of this Agreement will remain in full force and effect and will in no way be affected, and the parties will use their best efforts to find an alternate way to achieve the same result.

		
	19.
	Execution.  This Agreement may be executed in counterparts, each of which will be considered an original, but all of which together will constitute one agreement.  Execution of a facsimile or electronic copy will have the same force and effect as execution of an original, and a facsimile or electronic signature will be deemed an original and valid signature.

[Signature page below]

5
    

Please indicate your agreement with the above terms by signing below.
Very truly yours,
ZUORA, INC.
By:  /s/ Karen Gaydon    05.29.2019    
Karen Gaydon
Senior Vice President, ZEO Success
I agree to the terms of this Agreement, and I am voluntarily signing this release of all claims.  I acknowledge that I have read and understand this Agreement, and I understand that I cannot pursue any of the claims and rights that I have waived in this Agreement at any time in the future.	
		
	 
	 

	/s/ Marc Diouane

	 
	Marc Diouane

	 
	 

	Dated:
	05.29.2019

	 
	 

	 
	 

	 
	 

	 
	 

6

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