Document:

Exhibit 10.42

 

AMENDMENT NO. 1 TO MASTER TRANSACTION AGREEMENT

 

This Amendment No. 1 to Master Transaction Agreement (this “Amendment”), entered into this 19th day of June, 2017, amends that certain Master Transaction Agreement made as of May 12, 2017, as amended to date and from time to time (the “Agreement”), by and among Emergent Capital, Inc., a Florida corporation (“Emergent”), PJC Investments, LLC, a Texas limited liability company (“PJC”), and the Consenting Convertible Note Holders party(ies) thereto (“Consenting Convertible Note Holders”). Each of Emergent and PJC may also be referred to herein individually as a “Party” and collectively as the “Parties.”

 

W I T N E S S E T H:

 

WHEREAS, in order to make certain agreed modifications to the Agreement, the Parties and Convertible Note Holders, including the Consenting Convertible Note Holders, that, in the aggregate, hold a majority of the aggregate principal amount of the outstanding Convertible Notes have agreed to amend the Agreement as set forth herein;

 

NOW, THEREFORE, for good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, and in consideration of the mutual promises set forth below, the parties hereto, intending to be legally bound, agree as follows:

 

1.                                      Definition of Investor. The definition of “Investor” set forth in Section 1.1 of the Agreement shall be amended and restated in its entirety as follows:

 

“Investor” means one or more Persons designated jointly by PJC and Triax to be party to the Board Documents, the Common Stock Purchase Agreement, the Senior Note Purchase Agreement and/or the Warrant.

 

2.                                      Warrant. The form of the Warrant attached as Exhibit E to the Agreement is hereby amended to restate the proviso at the end of Section 2(b)(ii) as follows: “provided that upon the earliest date on which (x) at least 50% of the aggregate principal amount of the Outstanding Convertible Notes are converted into shares of Common Stock in accordance with the terms of the Existing Convertible Note Indenture or the New Convertible Note Indenture, as applicable, or (y) all of the Outstanding Convertible Notes are no longer outstanding (whether by conversion, redemption, payment in full at the final maturity date or otherwise), then all remaining Warrant Shares shall vest and become immediately exercisable; provided, further, that Warrant Shares that vest in accordance with this Section 2(b)(ii) shall vest pro rata among all holders of warrants issued concurrently with this Warrant, including the Holder, based upon the proportion that the number of Warrant Shares then vesting bears to the total number of unvested remaining Warrant Shares at the time of such vesting event, as determined in good faith by the Company and as promptly notified to each such holder.”

 

3.                                      Section 6.13.  Section 6.13 of the Agreement shall be amended by replacing the words “On or before the date that is ten (10) Business Days after the date Emergent launches the Convertible Note Exchange Offer” in such section with “Prior to the expiration of the Convertible Note Exchange Offer”.

 

 

4.                                      Defined Terms.  Capitalized terms used herein, unless otherwise defined herein, shall have the meanings set forth in the Agreement.

 

5.                                      No Further Amendments. Except as specifically modified pursuant to this Amendment, all of the provisions of the Agreement remain unchanged and continue in full force and effect.  In the event of any inconsistency between the Agreement and this Amendment, this Amendment shall control.

 

6.                                      Miscellaneous.  This Amendment may be executed in counterparts, each of which shall be deemed to be an original, but all of which together shall constitute one and the same instrument. This Amendment shall be governed in all respects by, and construed in accordance with, the laws of the State of New York (without giving effect to its principles of conflicts of laws, to the extent such principles would require or permit the application of the laws of a jurisdiction other than the State of New York).

 

[Signature Pages Follow]

 

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IN WITNESS WHEREOF, this Amendment has been duly executed and delivered by each of the parties hereto as of the day and year first above written.

 

	
 
    	
EMERGENT   CAPITAL, INC.
    
	
 
    	
By:
    	
/s/   Antony Mitchell
    
	
 
    	
Name:
    	
Antony   Mitchell
    
	
 
    	
Title:
    	
CEO
    
	
 
    	
Address:
    	
 
    

 

[Signature page to Amendment to Master Transaction Agreement]

 

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IN WITNESS WHEREOF, this Amendment has been duly executed and delivered by each of the parties hereto as of the day and year first above written.

 

	
 
    	
PJC   INVESTMENTS, LLC
    
	
 
    	
By:
    	
/s/   Patrick J. Curry
    
	
 
    	
Name:
    	
Patrick   J. Curry
    
	
 
    	
Title:
    	
Manager
    
	
 
    	
Address:
    	
 
    

 

[Signature page to Amendment to Master Transaction Agreement]

 

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IN WITNESS WHEREOF, this Amendment has been duly executed and delivered by each of the parties hereto as of the day and year first above written.

 

	
 
    	
Integrated Core Strategies (US) LLC
    
	
 
    	
 
    
	
 
    	
By: Integrated Holding Group LP, its Sole and Managing Member
    
	
 
    	
 
    
	
 
    	
By: Millennium Management LLC, its General Partner
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ David   Nolan
    
	
 
    	
Name:
    	
David Nolan
    
	
 
    	
Title:
    	
Vice   Chairman
    

 

[Signature page to Amendment to Master Transaction Agreement]

 

5Exhibit 10.1

 

AMENDMENT NO. 1 TO EXECUTIVE

EMPLOYMENT AGREEMENT

 

THIS AMENDMENT NO. 1 (this “Amendment”), is dated as of August 22, 2017 (the “Effective Date”) and amends that certain Executive Employment Agreement, dated October 21, 2016 (the “Agreement”) between FREDERIC F. BRACE (the “Executive”) and MIDSTATES PETROLEUM COMPANY, INC. (the “Company”). Capitalized terms used and not otherwise defined herein shall have the meanings assigned to them in the Agreement.

 

RECITALS

 

WHEREAS, the Company and Executive previously entered into the Agreement;

 

WHEREAS, pursuant to Section 8(l) of the Agreement, the Agreement shall not be modified except in a writing signed by each party thereto; and

 

WHEREAS, the Company and Executive desire to amend the Agreement as set forth herein, effective as of October 22, 2017 (the “Amendment Date”).

 

NOW, THEREFORE, for 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:

 

1.                                      The Executive and the Company hereby agree and acknowledge that the execution of this Amendment as of the Effective Date constitutes sufficient notice pursuant to Section 1 of the Agreement (as such Section 1 is in effect prior to the Amendment Date) that the Company intends for the Agreement to terminate following the conclusion of the “Term” as defined by this Amendment following the Amendment Date.

 

2.                                      Section 1 of the Agreement is hereby amended and restated effective on and after the Amendment Date as follows:

 

“Term. The Company agrees to employ Executive, and Executive agrees to be employed by the Company, upon the terms and conditions set forth in this Agreement for a period commencing on the Amendment Date and ending on April 21, 2018 (the “Term”).”

 

3.                                      Section 2(a)(1) of the Agreement is hereby amended and restated effective on and after the Amendment Date as follows:

 

“During the Term, Executive shall initially serve in a transitional role as the Company’s President and Chief Executive Officer until such time as the Company’s Board of Directors (the “Board”) hires a new individual to fill the role of President and Chief Executive Officer, and, in so doing, shall possess the duties and responsibilities consistent with that position in a company of the size and nature of the Company, and such other duties,

 

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responsibilities, and authority reasonably assigned to the Executive from time to time by the Board that are consistent with the Executive’s positions set forth above. Once a new President and Chief Executive Officer is hired by the Board, Executive shall serve in a transitional capacity and shall possess the duties and responsibilities reasonably assigned to Executive by the Board to assist the Company with such transition.”

 

4.                                      Section 2(b)(2) of the Agreement is hereby deleted effective on and after October 21, 2107.

 

5.                                      Section 4(a) of the Agreement is hereby amended and restated effective on and after the Amendment Date as follows:

 

“If the Company shall terminate the Executive’s employment for any reason or no reason during the Term, if the Executive resigns from his employment with Good Reason during the Term, or upon the natural expiration of the Term, the Company shall, in each case, have no further payment obligations to the Executive or his legal representatives, other than for the payment of: (1) in a cash lump sum within thirty (30) days after the Date of Termination (or such earlier date as required by applicable law) that portion of the Executive’s Annual Base Salary accrued through the Date of Termination to the extent not previously paid, any expense reimbursement accrued and unpaid, any employee benefits pursuant to the terms of the applicable employee benefit plan, and any accrued but unused vacation (the “Accrued Obligations”); (2) the remainder of the Executive’s Base Salary which would have been earned through the remainder of the Term in the event that the Date of Termination occurs prior to the end of the Term; (3) in a cash lump sum within thirty (30) days after the conclusion of the Initial Term, an amount equal to $563,836.00, which is equal to a pro-rata portion of the Executive’s Target Bonus, based upon the number of days between January 1, 2017 and the conclusion of the Initial Term; (4) continuation of medical, dental and vision coverage for the Executive and his spouse and any eligible dependents on the same basis and at the same cost as active employees of the Company until the conclusion of the Term; and (5) beginning on the date immediately following the conclusion of the Term and thereafter in accordance with the customary payroll practices of the Company, the Company shall remit payment of the premiums to the insurer to provide for continued medical, dental and vision coverage for the Executive and his spouse and any eligible dependents until the end of the earlier of (i) the second anniversary of the conclusion of the Term and (ii) the date on which the Executive begins full-time employment with another entity that provides comparable health and welfare benefits (the payments in clauses (2) through (5), collectively, the “Termination Payments”). In addition to the payment obligations described in the preceding sentence, all unvested awards granted to the Executive under the Midstates Petroleum Company, Inc. 2016 Long Term Incentive Plan (the “MIP”) shall vest upon October 21, 2017.”

 

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6.                                      The second sentence of Section 4(c) of the Agreement is hereby amended and restated effective on and after the Amendment Date as follows:

 

“For purposes of this Agreement, “Good Reason” shall mean any of the following, but only if occurring without the Executive’s consent: (1) a material diminution in the Executive’s Base Salary, (2) a material diminution in the Executive’s titles, positions, authority, duties, or responsibilities that is inconsistent with Executive’s transitional role as set forth in Section 2(a)(1) hereof, (3) the relocation of the Executive’s principal office to an area more than 50 miles from its location immediately prior to such relocation, or (4) the failure of the Company to comply with any material provision of the Executive’s employment agreement, including any amendment thereto, or equity agreement.”

 

7.                                      This Amendment shall only serve to amend and modify the Agreement to the extent specifically provided herein.  All terms, conditions, provisions and references of and to the Agreement which are not specifically modified, amended and/or waived herein shall remain in full force and effect and shall not be altered by any provisions herein contained.  All prior agreements, promises, negotiations and representations, either oral or written, relating to the subject matter of this Amendment not expressly set forth in this Amendment are of no force or effect.

 

8.                                      This Amendment shall not be amended, modified or supplemented except by a written instrument signed by the parties hereto.  The failure of a party to insist on strict adherence to any term of this Amendment on any occasion shall not be considered a waiver or deprive that party of the right thereafter to insist upon strict adherence to that term or any other term of this Amendment.  No waiver of any provision of this Amendment shall be construed as a waiver of any other provision of this Amendment.  Any waiver must be in writing.

 

9.                                      This Amendment shall inure to the benefit of the Company and its successors and assigns and shall be binding upon the Company and its successors and assigns.  This Amendment is personal to Executive, and Executive shall not assign or delegate his rights or duties under this Amendment, and any such assignment or delegation shall be null and void.

 

10.                               This Amendment may be executed and delivered (including by facsimile, “pdf” or other electronic transmission) in any number of counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same agreement.

 

[Signature Page Follows]

 

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IN WITNESS WHEREOF, the parties hereto have executed this Amendment as of the Effective Date.

 

 

	
 
    	
MIDSTATES   PETROLEUM COMPANY, INC.,
    
	
 
    	
 
    
	
 
    	
a   Delaware corporation
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Alan J. Carr
    
	
 
    	
Name:
    	
Alan   J. Carr
    
	
 
    	
Title:
    	
Chairman   of the Board of Directors
    
	
 
    	
 
    
	
 
    	
Date:
    	
August 22,   2017
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
EXECUTIVE:
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
/s/   Frederic F. Brace
    
	
 
    	
Frederic   F. Brace
    
	
 
    	
 
    
	
 
    	
Date:
    	
August 22,   2017
    
						

 

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