Document:

Second Amendment to Amended and Restated Credit Agreement

 Exhibit 10.3 

 
  

SECOND AMENDMENT 

TO AMENDED AND RESTATED CREDIT AGREEMENT 

among 
 GASTAR
EXPLORATION USA, INC. 
 THE GUARANTORS SIGNATORY HERETO 

THE LENDERS SIGNATORY HERETO 

and 
 AMEGY BANK
NATIONAL ASSOCIATION, 
 as Administrative Agent 

Effective 

June 24, 2010 
  

 

 Table of Contents 

 

					
	 Article I
	  	 DEFINITIONS AND INTERPRETATION
	  	1
			
	 1.1
	  	 Terms Defined Above
	  	1
	 1.2
	  	 Terms Defined in Credit Agreement
	  	2
	 1.3
	  	 References
	  	2
	 1.4
	  	 Articles and Sections
	  	2
	 1.5
	  	 Number and Gender
	  	2
			
	 Article II
	  	 AMENDMENT
	  	2
			
	 2.1
	  	 Amendment to Section 1.2
	  	2
	 2.2
	  	 Amendment to Section 5.8
	  	3
	 2.3
	  	 Amendment to Section 6.1
	  	3
	 2.4
	  	 Amendment to Section 7.1
	  	4
			
	 Article III
	  	 REPRESENTATIONS AND WARRANTIES
	  	4
			
	 Article IV
	  	 RATIFICATION AND ACKNOWLEDGMENTS
	  	5
			
	 Article V
	  	 MISCELLANEOUS
	  	5
			
	 5.1
	  	 Successors and Assigns
	  	5
	 5.2
	  	 Rights of Third Parties
	  	5
	 5.3
	  	 Counterparts
	  	5
	 5.4
	  	 Integration
	  	5
	 5.5
	  	 Severability
	  	5
	 5.6
	  	 Governing Law
	  	5

  

 - i - 

 SECOND AMENDMENT 

TO AMENDED AND RESTATED CREDIT AGREEMENT 

This SECOND AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT (this “Amendment”) executed effective as of June 24,
2010 (the “Effective Date”) is by and among GASTAR EXPLORATION USA, INC., a Michigan corporation (the “Borrower”), GASTAR EXPLORATION, LTD., an Alberta, Canada corporation (the “Parent”), GASTAR
EXPLORATION NEW SOUTH WALES, INC., a Michigan corporation (“Gastar New South Wales”), GASTAR EXPLORATION VICTORIA, INC., a Michigan corporation (“Gastar Victoria”), GASTAR EXPLORATION TEXAS, INC., a Michigan
corporation (“Gastar Texas Inc”), GASTAR EXPLORATION TEXAS, LP, a Delaware limited partnership (“Gastar Texas LP”), and GASTAR EXPLORATION TEXAS LLC, a Delaware limited liability company (“Gastar Texas
LLC”, and the Parent, Gastar New South Wales, Gastar Victoria, Gastar Texas Inc., Gastar Texas LP and Gastar Texas LLC, collectively, the “Initial Guarantors”), the lenders party to that certain Amended and Restated Credit
Agreement dated effective October 28, 2009, as amended to the Effective Date, by and among the Borrower, the Initial Guarantors, the lenders party thereto or bound thereby from time to time (the “Lenders”), and Amegy Bank
National Association, a national banking association, as administrative agent for the Lenders, letter of credit issuer and collateral agent for the Lenders and certain other parties (as so amended, the “Credit Agreement”), and AMEGY
BANK NATIONAL ASSOCIATION, a national banking association, as administrative agent for the Lenders (in such capacity, the “Agent”). 

W I T N E S S E T H: 

WHEREAS, the Borrower, the Initial Guarantors, the Lenders and the Agent are parties to the Credit Agreement; and 

WHEREAS, the Borrower, the Initial Guarantors, the Lenders and the Agent desire to amend the Credit Agreement in the particular
hereinafter provided; 
 NOW, THEREFORE, in consideration of the premises and the mutual covenants and agreements contained in
the Credit Agreement and herein, the parties hereto agree as follows: 
 ARTICLE I 

DEFINITIONS AND INTERPRETATION 

1.1 Terms Defined Above. As used in this Second Amendment to Amended and Restated Credit Agreement, each of the terms
“Agent,” “Amendment,” “Borrower,” “Credit Agreement,” “Effective Date,” “Gastar New South Wales,” “Gastar Texas Inc,”
“Gastar Texas LLC,” “Gastar Texas LP,” “Gastar Victoria,” “Initial Guarantors,” Lenders” and “Parent,” shall have the meaning assigned to such term
hereinabove. 

 1.2 Terms Defined in Credit Agreement. Each term defined in the Credit Agreement and
used herein without definition shall have the meaning assigned to such term in the Credit Agreement, unless herein expressly provided to the contrary. 

1.3 References. References in this Amendment to Exhibit, Article or Section numbers shall be to Exhibits, Articles or Sections of
this Amendment, unless expressly stated to the contrary. References in this Amendment to “hereby,” “herein,” “hereinafter,” “hereinabove,” “hereinbelow,” “hereof,” “hereunder” and
words of similar import shall be to this Amendment in its entirety and not only to the particular Schedule, Exhibit, Article, or Section in which such reference appears. Specific enumeration herein shall not exclude the general and, in such regard,
the terms “includes” and “including” used herein shall mean “includes, without limitation,” or “including, without limitation,” as the case may be, where appropriate. Except as otherwise indicated, references
in this Amendment to statutes, sections, or regulations are to be construed as including all statutory or regulatory provisions consolidating, amending, replacing, succeeding, or supplementing the statute, section, or regulation referred to.
References in this Amendment to “writing” include printing, typing, lithography, facsimile reproduction, and other means of reproducing words in a tangible visible form. References in this Amendment to amendments and other contractual
instruments shall be deemed to include all exhibits and appendices attached thereto and all subsequent amendments and other modifications to such instruments, but only to the extent such amendments and other modifications are not prohibited by the
terms of the Credit Agreement or this Amendment. References in this Amendment to Persons include their respective successors and permitted assigns. 

1.4 Articles and Sections. This Amendment, for convenience only, has been divided into Articles and Sections; and it is understood
that the rights and other legal relations of the parties hereto shall be determined from this instrument as an entirety and without regard to the aforesaid division into Articles and Sections and without regard to headings prefixed to such Articles
or Sections. 
 1.5 Number and Gender. Whenever the context requires, reference herein made to the single number shall be
understood to include the plural; and likewise, the plural shall be understood to include the singular. Definitions of terms defined in the singular or plural shall be equally applicable to the plural or singular, as the case may be, unless
otherwise indicated. Words denoting sex shall be construed to include the masculine, feminine and neuter, when such construction is appropriate; and specific enumeration shall not exclude the general but shall be construed as cumulative. 

ARTICLE II  

AMENDMENT 

Effective as of the Effective Date, the Borrower, the Initial Guarantors, the Lenders and the Agent hereby amend the Credit Agreement in
the following particulars: 
 2.1 Amendment to Section 1.2. Section 1.2 of the Credit Agreement is amended to
substitute the following for the definition of “Projected Production” appearing in such Section 1.2: 

“‘Projected Production’ shall mean, at any time, the volumes of proved developed producing reserves
of each commodity category projected in the most recent Reserve Report provided pursuant to the provisions of Section 5.4, but increased to account for any additional projected volumes of proved developed producing reserves (including reserves
reflected in such Reserve Report as proved developed non-producing or proved undeveloped and converted to proved developed producing reserves since the effective date of such Reserve Report) confirmed to the Agent in writing by Netherland
Sewell & Associates, Inc. or another nationally-recognized or regionally-recognized firm of independent consulting petroleum engineers or other firm of independent consulting petroleum engineers acceptable to the Agent, to be produced from
the Oil and Gas Properties of the Borrower and the Guarantors during the terms of then existing Commodity Hedge Agreements to which the Borrower or any of the Guarantors is a party.” 

 

 - 2 - 

 2.2 Amendment to Section 5.8. Section 5.8 of the Credit Agreement is
amended to read as follows in its entirety: 
 “5.8 Commodity Hedging. Except as could not reasonably
be expected to have a Material Adverse Effect, comply in all material respects with any Commodity Hedge Agreements entered into by the Borrower or any Subsidiary of the Borrower subsequent to the Closing Date and not in violation of the provisions
of Section 6.1 and provide to the Agent, no later than the 30th day following the end of each calendar month, a report, in form reasonably acceptable to the Agent, reflecting (a) in the case of Oil and Gas Properties of the Borrower or any
of the Guarantors located in the State of Texas or, regardless of location, operated by the Borrower or any of the Guarantors, the volumes of hydrocarbons produced from such Oil and Gas Properties during the calendar month preceding the calendar
month in which such report is to be provided, (b) in the case of Oil and Gas Properties of the Borrower or any of the Guarantors located in the State of Wyoming or, regardless of location, not operated by the Borrower or any of the Guarantors,
the volumes of hydrocarbons produced from such Oil and Gas Properties during the period covered by the information most recently received by the Borrower or the relevant Guarantor from the operator or operators of such Oil and Gas Properties and
(c) the details of the notional amounts of hydrocarbons, as of the end of the calendar month preceding the calendar month in which such report is to be provided, under then existing Commodity Hedge Agreements to which any of the Borrower and
the Guarantors is a party.” 
 2.3 Amendment to Section 6.1. Section 6.1 of the Credit Agreement is
amended to read as follows in its entirety: 
 “6.1 Indebtedness. Create, incur, assume or suffer to
exist any Indebtedness, whether by way of loan or otherwise; provided, however, the foregoing restriction shall not apply to (a) the Obligations, (b) unsecured accounts payable, taxes and other assessments, in each case
incurred in the ordinary course of business and which are not unpaid in excess of 90 days beyond invoice date or are being contested in good faith and as to which such reserve as is required by

  

 - 3 - 

 
GAAP has been made, (c) Indebtedness under Commodity Hedge Agreements consisting of floors and/or protective spreads and other Commodity Hedge Agreements (other than those entered into on a
speculative basis), including reimbursement obligations under letters of credit securing or supporting such Indebtedness, with any Approved Hedge Counterparty, Secured Third Party Hedge Counterparty or, so long as each such Person is acceptable to
the Agent, other counterparties, provided that (i) such other Commodity Hedge Agreements shall not be for a term in excess of three years, (ii) such other Commodity Hedge Agreements shall not be entered into with respect to more than
eighty percent (80%), in the aggregate, of Projected Production and (iii) the floor prices in such other Commodity Hedge Agreements are not less than the prices used by the Agent in its most recent Borrowing Base determination as of the time
the relevant Commodity Hedge Agreements are entered into, (d) Indebtedness under Interest Rate Hedge Agreements with any Approved Hedge Counterparty, Secured Third Party Hedge Counterparty or, so long as each such Person is acceptable to the
Agent, other counterparties, provided that such agreements shall not be entered into with respect to notional principal amounts in excess of one hundred percent (100%) of the Loan Balance, (e) Indebtedness incurred with respect to all or a
portion of the purchase price of Property acquired in the ordinary course of business not exceeding $500,000 in the aggregate for the Parent on a consolidated basis with its Subsidiaries, (f) the Indebtedness listed on Schedule 6.1 (but
only until the maturity or prior redemption or payment thereof), (g) the Indebtedness of the Parent under the Term Loan Agreement, (h) Indebtedness from time to time owing by any Subsidiary of the Parent to the Parent, the Borrower or any
other Subsidiary Guarantor and (i) other unsecured Indebtedness or Indebtedness secured by a Permitted Lien not exceeding, in the aggregate at any time, $100,000 for the Parent on a consolidated basis with its consolidated Subsidiaries.”

 2.4 Amendment to Section 7.1. Section 7.1 of the Credit Agreement is amended to: (a) add the word
“or” following the semicolon at the end of clause (m) of such Section 7.1, (b) delete clause (n) of such Section 7.1 and (c) redesignate clause (o) of such Section 7.1 to be clause (n) of such
Section 7.1. 
 ARTICLE III  

REPRESENTATIONS AND WARRANTIES 

Each of the Borrower and the Initial Guarantors expressly re-makes, in favor of the Agent and the Lenders, each of the representations
and warranties set forth in Article IV of the Credit Agreement and in the other Loan Documents and made by it and represents and warrants that all such representations and warranties remain true and correct. 

 

 - 4 - 

 ARTICLE IV  

RATIFICATION AND ACKNOWLEDGMENTS 

Each of the Borrower, the Initial Guarantors, the Lenders and the Agent does hereby adopt, ratify and confirm the Credit Agreement, as
amended hereby, and each of the other Loan Documents to which it is a party and acknowledges and agrees that the Credit Agreement, as amended hereby, and each of the other Loan Documents to which it is a party is and remains in full force and
effect. Furthermore, each of the Borrower, the Initial Guarantors, the Lenders and the Agent acknowledges and agrees that the Borrowing Base shall be $40,000,000 and the Monthly Reduction Amount shall be $0, with the effect that the Borrowing Base
shall remain $40,000,000 until the next redetermination of the Borrowing Base in accordance with the provisions of the Credit Agreement. 

ARTICLE V  

MISCELLANEOUS 

5.1 Successors and Assigns. This Amendment shall be binding upon and inure to the benefit of the parties hereto and their
respective successors and assigns permitted pursuant to the Credit Agreement. 
 5.2 Rights of Third Parties. Except as
provided in Section 5.1, all provisions herein are imposed solely and exclusively for the benefit of the parties hereto. 

5.3 Counterparts. This Amendment may be executed by one or more of the parties hereto in any number of separate counterparts, and
all of such counterparts taken together shall be deemed to constitute one and the same instrument and shall be enforceable as of the Effective Date upon the execution of one or more counterparts hereof by each of the parties hereto. In this regard,
each of the parties hereto acknowledges that a counterpart of this Amendment containing a set of counterpart execution pages reflecting the execution of each party hereto shall be sufficient to reflect the execution of this Amendment by each
necessary party hereto and shall constitute one instrument. 
 5.4 Integration. This Amendment constitutes the entire
agreement among the parties hereto with respect to the subject hereof. All prior understandings, statements and agreements, whether written or oral, relating to the subject hereof are superseded by this Amendment. 

5.5 Severability. In the event that any one or more of the provisions contained in this Amendment shall for any reason be held
invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect any other provision of this Amendment. 

5.6 Governing Law. THIS AMENDMENT SHALL BE DEEMED
TO BE A CONTRACT MADE UNDER AND SHALL BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF TEXAS, WITHOUT
REGARD TO PRINCIPLES OF SUCH LAWS RELATING TO CONFLICTS OF LAW. 

(Signatures appear on following pages) 
  

 - 5 - 

 IN WITNESS WHEREOF, the parties hereto have caused this Second Amendment to Amended and
Restated Credit Agreement to be duly executed and delivered, as of the Effective Date, by their proper and duly authorized officers. 
  

			
	BORROWER:
	
	GASTAR EXPLORATION USA, INC.
		
	By:	 	 /s/ Michael A. Gerlich

		 	Michael A. Gerlich
		 	Secretary and Treasurer
	
	INITIAL GUARANTORS:
	
	GASTAR EXPLORATION LTD.
		
	By:	 	 /s/ Michael A. Gerlich

		 	Michael A. Gerlich
		 	Vice President and Chief Financial Officer
	
	GASTAR EXPLORATION NEW SOUTH WALES, INC.
		
	By:	 	 /s/ Michael A. Gerlich

		 	Michael A. Gerlich
		 	Secretary and Treasurer
	
	GASTAR EXPLORATION VICTORIA, INC.
		
	By:	 	 /s/ Michael A. Gerlich

		 	Michael A. Gerlich
		 	Secretary and Treasurer

(Signatures continue on following pages) 
  

 - 6 - 

					
	GASTAR EXPLORATION TEXAS, INC.
		
	By:	 	 /s/ Michael A. Gerlich

		 	Michael A. Gerlich
		 	Secretary and Treasurer
	
	GASTAR EXPLORATION TEXAS, LP
		
	By:	 	 Gastar Exploration Texas LLC,

its General Partner

			
		 	By:	 	 /s/ Michael A. Gerlich

		 		 	Michael A. Gerlich
		 		 	Secretary and Treasurer
	
	GASTAR EXPLORATION TEXAS LLC
		
	By:	 	 /s/ Michael A. Gerlich

		 	Michael A. Gerlich
		 	Secretary and Treasurer

(Signatures continue on following pages) 
  

 - 7 - 

			
	AGENT:
	
	 AMEGY BANK NATIONAL ASSOCIATION

as Agent

		
	By:	 	 /s/ Mark A. Serice

		 	Mark A. Serice
		 	Senior Vice President
	
	LENDER:
	
	AMEGY BANK NATIONAL ASSOCIATION
		
	By:	 	 /s/ Mark A. Serice

		 	Mark A. Serice
		 	Senior Vice President

 (Signatures
continue on following pages) 
  

 - 8 - 

			
	LENDER:
	
	BANK OF MONTREAL
		
	By:	 	 /s/ James Whitmore

		 	James Whitmore
		 	Managing Director

 (Signatures
continue on following page) 
  

 - 9 - 

			
	LENDER:
	
	IBERIABANK FSB
		
	By:	 	 /s/ W. Bryan Chapman

		 	W. Bryan Chapman
		 	Executive Vice President

  

 - 10 -Assigment and Assumption Agreement, dated June 24, 2010

 Exhibit 10.1 

ASSIGNMENT AND ASSUMPTION AGREEMENT 

THIS ASSIGNMENT AND ASSUMPTION AGREEMENT (this “Assignment”) dated June 24, 2010 and effective as
of July 1, 2010 (the “Effective Date”), is by and among Cheniere Marketing, LLC, a Delaware limited liability company (“Assignor”), Cheniere Energy Investments, LLC, a Delaware limited liability company
(“Assignee”), and Sabine Pass, LNG, L.P., a Delaware limited partnership (“Sabine”). 
 R E
C I T A L S: 
 WHEREAS, Assignor is party to that certain Amended and Restated LNG Terminal Use
Agreement, dated as of November 9, 2006, by and between Assignor and Sabine, as amended by that certain Amendment to LNG Terminal Use Agreement dated June 25, 2007 (as amended, the “TUA”); 

WHEREAS, Assignor is party to that certain Surrender of Capacity Rights Agreement dated March 26, 2010 and
effective as of April 1, 2010, by and between Assignor and Sabine (the “Surrender Agreement,” and together with the TUA, the “Agreements”); and 

WHEREAS, Assignor desires to transfer, assign and convey all of Assignor’s rights, titles, obligations,
liabilities and interests in and under each of the Agreements to Assignee, and Assignee desires to assume all of Assignors rights, titles, obligations, liabilities, and interests in and under each of the Agreements in accordance and with the terms
and conditions of this Assignment. 
 NOW, THEREFORE, for good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, Assignor and Assignee agree as set forth below. 
 A G R E E M E N T:

 1. Assignment. Effective as of the Effective Date, Assignor hereby transfers, assigns, conveys and
sets over unto Assignee all of Assignor’s rights, titles and interests in, to and under the Agreements (subject, in the case of the TUA, to Assignor’s prior surrender to Sabine of the right to utilize Services (as defined in the TUA) and
any related reception, storage or regasification capacity at the Sabine Pass Terminal pursuant to the Surrender Agreement (the “Prior Surrender”)). 

2. Assumption. Effective as of the Effective Date, for itself, its successors and assigns, hereby accepts the
assignment of the Agreements as provided in Section 1, and hereby assumes and agrees to pay, perform, fulfill, discharge, and comply with all covenants, claims, liabilities and obligations, which are to be paid, performed, fulfilled,
discharged and complied with by Assignor under the Agreements except, in each case, to the extent that such claims, liabilities or obligations, but for a breach or default by Assignor, would have been paid, performed or otherwise discharged on or
prior to the Effective Date or to the extent the same arise out of any such breach or default. 
 3. LNGCo
Scheduled Delivery Notices. Notwithstanding Sections 1 and 2 of this Agreement, Assignor, Assignee and Sabine acknowledge and agree that Assignor, and not Assignee, will have the right and obligation to provide an LNGCo Scheduled
Delivery Notice (as defined in the Surrender Agreement) to Sabine. 

 4. Representations and Warranties of Assignor. Assignor hereby
represents and warrants to Assignee as follows: 
 a. A true and complete copy of the
(i) TUA, including all amendments is attached hereto as Exhibit A, and (ii) Surrender Agreement, including all amendments is attached hereto as Exhibit B. There are no understandings or agreements between Assignor and any of
the parties to the Agreements interpreting the provisions of, or modifying the operations of, the provisions of the Agreements. 

b. This Assignment has been duly executed and delivered by Assignor, and constitutes Assignor’s valid
and binding obligation, enforceable against Assignor in accordance with its terms, except to the extent that its enforceability may be limited by applicable bankruptcy, insolvency, reorganization or other similar law affecting the enforcement of
creditors’ rights generally or by general equitable principles. 
 c. The execution,
delivery and performance of this Assignment by Assignor does not and will not: (i) violate any applicable provision of law, statute, judgment, order, writ, injunction, decree, award, rule, or regulation of any governmental authority;
(ii) violate, result in a breach of, constitute (with due notice or lapse of time or both) a default or cause any obligation, penalty or premium to arise or accrue under any contract, lease, loan agreement, mortgage, security agreement, trust
indenture or other agreement or instrument to which Assignor is a party or by which it is bound or to which its properties or assets is subject; or (iii) result in the creation or imposition of any lien, pledge, hypothecation, mortgage,
security interest, escrow, charge, equity interest, option, obligation, undertaking, license, claim, demand, or any other restriction, condition or encumbrance of any kind (“Encumbrance”) upon any of the properties or assets of
Assignor. 
 5. Representations and Warranties of Assignee. Assignee hereby represents and warrants to
Assignor as follows: 
 a. This Assignment has been duly executed and delivered by Assignee, and
constitutes Assignee’s valid and binding obligation, enforceable against Assignee in accordance with its terms, except to the extent that its enforceability may be limited by applicable bankruptcy, insolvency, reorganization or other similar
law affecting the enforcement of creditors’ rights generally or by general equitable principles. 

b. The execution, delivery and performance of this Assignment by Assignee does not and will not:
(i) violate any applicable provision of law, statute, judgment, order, writ, injunction, decree, award, rule, or regulation of any governmental authority; (ii) violate, result in a breach of, constitute (with due notice or lapse of time or
both) a default or cause any obligation, penalty or premium to arise or accrue under any contract, lease, loan agreement, mortgage, security agreement, trust indenture or other agreement or instrument to which Assignee is a party or by which it is
bound or to which its properties or assets is subject; or (iii) result in the creation or imposition of any Encumbrance of any kind upon any of the properties or assets of Assignee. 

 6. Assignee’s Indemnification of Assignor. Assignee shall and
does hereby agree to indemnify, defend and hold Assignor harmless from and against all damages, liabilities, obligations, actions, suits, proceedings and claims, and all costs and expenses, including but not limited to reasonable attorneys’
fees and court costs, incurred by Assignor, its successors, legal representatives and assigns, in connection with one or both of the Agreements, based upon or arising out of any breach of one or both of the Agreements by Assignee occurring on and
after the Effective Date. 
 7. Assignor’s Indemnification of Assignee. Assignor shall and does
hereby agree to indemnify, defend and hold Assignee harmless from and against all damages, liabilities, obligations, actions, suits, proceedings and claims, and all costs and expenses, including but not limited to reasonable attorneys’ fees and
court costs, incurred by Assignee, its successors, legal representatives and assigns in connection with one or both of the Agreements, based upon or arising out of any breach of one or both of the Agreements by Assignor occurring prior to the
Effective Date. 
 8. Consent. Sabine hereby consents to: 

a. the assignment of the TUA by Assignor to Assignee; 

b. the assumption of all covenants, claims, liabilities and obligations of Assignor by Assignee under or
arising out of the TUA, to the extent provided in Section 2 of this Assignment; and 

c. the assumption of all covenants, claims, liabilities and obligations, which are to be performed,
fulfilled, discharged and complied with by Assignor under the Surrender Agreement, to the extent provided in Section 2 of this Assignment. 

Sabine hereby releases and discharges Assignor from any and all covenants, claims, liabilities, responsibilities and obligations of any
nature under, arising out of or in connection with the Agreements (other than the Prior Surrender) that arise as a result of events occurring on and after the Effective Date and agrees that, from and after the Effective Date, Sabine will look solely
to Assignee for the performance of such covenants, claims, liabilities, responsibilities and obligations. 
 9.
Termination of Guarantee. Sabine hereby acknowledges and agrees that effective as of the Effective Date that certain Guarantee Agreement (the “Guarantee”), dated as of November 9, 2006, by Cheniere Energy, Inc.
(“Cheniere Energy”) in favor of Sabine is terminated and extinguished in full without any further action on behalf of Cheniere Energy or Sabine, such Guarantee Agreement shall be of no further force or effect, and Cheniere Energy
shall have no further obligations, responsibilities or liabilities under or pursuant to the Guarantee after the Effective Date. Sabine agrees to promptly return the original Guarantee to Cheniere Energy on or promptly after the Effective Date.
Cheniere Energy is an intended third party beneficiary of this Section 9. 

 10. New Guarantee. Assignee shall provide a guarantee from Cheniere
Energy Partners, L.P. of Assignee’s obligations under the TUA in the form attached hereto as Exhibit C. 

11. PILOT Payments. Promptly after Assignee receives credit against the payment of Sabine Taxes under the TUA for
any amounts paid prior to or after the date hereof by Assignor as PILOT payments, Assignee shall pay to Assignor an amount equal to such credit. 

12. Further Assurances. Assignor and Assignee shall execute, acknowledge and deliver all such further documents,
and shall take such further actions, as may be necessary or appropriate more fully to assure to Assignee or its successors and assigns all of the rights, titles and interests conveyed, or intended to be conveyed, to Assignee hereby and more fully to
assure to Assignor or its successor and assigns the assumption by Assignee of the obligations, claims, liabilities and covenants assumed, or intended to be assumed, by Assignee hereby. 

13. No Third Party Beneficiaries. Except as provided in Section 9, nothing expressed or implied in
this Assignment is intended to confer upon any person, other than Assignor and Assignee and their respective successors and assigns, any rights, remedies, obligations or liabilities under or by reason of this Assignment. 

14. Governing Law. The substantive laws of the State of New York, United States of America, exclusive of any
conflicts of laws principles that could require the application of any other law, shall govern this Assignment for all purposes, including the resolution of all disputes between Assignor and Assignee. 

15. Binding Effect. This Assignment shall inure to the benefit of and shall be binding upon the parties hereto and
their respective successors and permitted assigns. 
 16. Counterparts. The parties agree that this
Assignment may be executed by the parties in one or more counterparts and each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. 

17. Headings. The headings in this Assignment are for purposes of reference only and do not affect the meaning of
this Assignment. 
 *        *        *

 In WITNESS WHEREOF, the parties have executed this Assignment as of the date
first above written. 
  

			
	ASSIGNOR:
	
	CHENIERE MARKETING, LLC
		
	 By:
	 	 /s/ Graham McArthur

	 Name:
	 	 Graham McArthur

	 Title:
	 	 Treasurer

	
	ASSIGNEE:
	
	CHENIERE ENERGY INVESTMENTS, LLC
		
	 By:
	 	 /s/ Meg A. Gentle

	 Name:
	 	 Meg A. Gentle

	 Title:
	 	 Chief Financial Officer

	
	SABINE:
	
	SABINE PASS LNG, L.P.
		
	By:	 	 Sabine Pass LNG-GP, Inc.

its general partner

		
	 By:
	 	 /s/ Meg A. Gentle

	 Name:
	 	 Meg A. Gentle

	 Its:
	 	 Chief Financial Officer

Signature Page to Assignment and Assumption Agreement

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