SEC Contract Filing

Filing Date: 2015-05-19

Document Content:
<DOCUMENT>
<TYPE>EX-10
<SEQUENCE>5
<FILENAME>exhibit104.htm
<DESCRIPTION>EXHIBIT 10.4
<TEXT>
<HTML>
<head><title>Exhibit 10.4</title> </head> <body style="MARGIN-TOP:0px; FONT-FAMILY:Times New Roman; COLOR:#000000; FONT-SIZE:10pt"> <div style=WIDTH:792px> <p style=MARGIN:0px align=right>&nbsp;</p> <p style="MARGIN:0px; FONT-SIZE:9pt; BORDER-TOP:#000000 3px double; PADDING-TOP:4px" align=right><b>Exhibit 10.4</b></p> <p style=MARGIN:0px><br></p> <p style=MARGIN:0px><br></p> <p style=MARGIN:0px align=center><b>FOURTH AMENDMENT TO FORBEARANCE AGREEMENT TO<br><u>SECOND LIEN INDENTURE</u></b></p> <p style=MARGIN:0px><br></p> <p style="TEXT-INDENT:96px; MARGIN:0px" align=justify>This FOURTH AMENDMENT TO FORBEARANCE AGREEMENT (this &#147;<u>Fourth Amendment</u>&#148;) is entered into as of May 18, 2015, by and among Saratoga Resources, Inc. (the &#147;<u>Issuer</u>&#148;), the Guarantors party to the Second Lien Indenture (collectively, with Issuer, the &#147;<u>Credit Parties</u>&#148;) and the holders of Notes issued under the Second Lien Indenture party hereto (each, a &#147;<u>Noteholder</u>&#148; and together, the &#147;<u>Noteholders</u>&#148;). &nbsp;Unless otherwise defined in this Fourth Amendment, capitalized terms used herein shall have the meanings ascribed to them in the Second Lien Forbearance Agreement.</p> <p style=MARGIN:0px><br></p> <p style=MARGIN:0px align=center><b><u>RECITALS</u></b></p> <p style=MARGIN:0px><br></p> <p style="MARGIN-TOP:0px; TEXT-INDENT:96px; WIDTH:120px; MARGIN-BOTTOM:-2px; FLOAT:left">A.</p> <p style="TEXT-INDENT:-2px; MARGIN:0px" align=justify>Issuer, the other Credit Parties and the Noteholders entered into a Forbearance Agreement to Second Lien Indenture, dated January 30, 2015, and amended March 2, 2015, March 16, 2015 and April 30, 2015 (the &#147;<u>Second Lien Forbearance Agreement</u>&#148;).</p> <p style="MARGIN:0px; CLEAR:left"><br></p> <p style="MARGIN-TOP:0px; TEXT-INDENT:96px; WIDTH:120px; MARGIN-BOTTOM:-2px; FLOAT:left">B.</p> <p style="TEXT-INDENT:-2px; MARGIN:0px" align=justify>Issuer has requested that the Second Lien Forbearance Agreement be amended to extend the Forbearance Period to up to and including June 5, 2015 on the terms and conditions set forth herein.</p> <p style="MARGIN:0px; CLEAR:left"><br></p> <p style="TEXT-INDENT:96px; MARGIN:0px" align=justify>NOW, THEREFORE, in consideration of the foregoing, the terms, covenants and conditions contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:</p> <p style=MARGIN:0px><br></p> <p style="MARGIN-TOP:0px; WIDTH:96px; MARGIN-BOTTOM:-2px; FLOAT:left"><b>SECTION 1.</b></p> <p style="TEXT-INDENT:-2px; MARGIN:0px"><b><u>Amendment.</u></b></p> <p style="MARGIN:0px; CLEAR:left"><br></p> <p style="TEXT-INDENT:96px; MARGIN:0px" align=justify>Section 3(b) of the Second Lien Forbearance Agreement is hereby amended to delete &#147;May 22, 2015&#148; in the last sentence thereof and to insert, in place of such date, &#147;June 5, 2015.&#148;</p> <p style=MARGIN:0px><br></p> <p style="TEXT-INDENT:96px; MARGIN:0px" align=justify>Section 3(b) of the Second Lien Forbearance Agreement is hereby amended to insert the following after the last sentence thereof:</p> <p style=MARGIN:0px><br></p> <p style="MARGIN:0px; PADDING-LEFT:48px; PADDING-RIGHT:48px" align=justify>&#147;If such independent director resigns or is terminated, Issuer shall appoint another independent director to Issuer&#146;s Board of Directors and its Independent Restructuring Committee, who is acceptable to the Noteholders, pursuant to board resolutions in form and substance acceptable to the Noteholders, within five business days following such resignation or termination.&#148;</p> <p style=MARGIN:0px><br></p> <p style="MARGIN-TOP:0px; WIDTH:96px; MARGIN-BOTTOM:-2px; FLOAT:left"><b>SECTION 2.</b></p> <p style="TEXT-INDENT:-2px; MARGIN:0px"><b><u>Effectiveness</u></b>.</p> <p style="MARGIN:0px; CLEAR:left"><br></p> <p style="TEXT-INDENT:96px; MARGIN:0px" align=justify>This Fourth Amendment shall become effective at the time (the &#147;<u>Fourth Amendment Effective Date</u>&#148;) that all of the following conditions precedent have been met (or waived) as determined by the Noteholders in their sole discretion:</p> <p style=MARGIN:0px><br></p> <p style="MARGIN-TOP:0px; TEXT-INDENT:96px; WIDTH:144px; MARGIN-BOTTOM:-2px; FLOAT:left">(a)</p> <p style="TEXT-INDENT:-2px; MARGIN:0px" align=justify><u>Amendment</u>. &nbsp;The Noteholders shall have received duly executed signature pages for this Fourth Amendment signed by the Noteholders, Issuer and the other Credit Parties.</p> <p style="MARGIN:0px; CLEAR:left"><br></p> <p style="MARGIN-TOP:0px; TEXT-INDENT:96px; WIDTH:144px; MARGIN-BOTTOM:-2px; FLOAT:left">(b)</p> <p style="TEXT-INDENT:-2px; MARGIN:0px" align=justify><u>First Lien Forbearance Agreement Amendment</u>. &nbsp;The Noteholders, Issuer and the other Credit Parties shall have executed and delivered an amendment to that certain Forbearance Agreement to First Lien Indenture, dated as of January 30, 2015 and amended as of March 2, 2015, March 16, 2015 and April 30, 2015, pursuant to which the Noteholders shall have agreed to extend the Forbearance Period to up to and including June 5, 2015 on the terms and conditions set forth therein.</p> <p style="MARGIN:0px; CLEAR:left"><br><br></p> <hr size=1 noshade style="MARGIN-BOTTOM:9px; PADDING-TOP:9px"> <p style="PAGE-BREAK-BEFORE:always; MARGIN:0px"><br></p> <p style="MARGIN-TOP:0px; WIDTH:96px; MARGIN-BOTTOM:-2px; FLOAT:left"><b>SECTION 3.</b></p> <p style="TEXT-INDENT:-2px; MARGIN:0px"><b><u>General Release; Indemnity</u></b>.</p> <p style="MARGIN:0px; CLEAR:left"><br></p> <p style="MARGIN-TOP:0px; TEXT-INDENT:96px; WIDTH:144px; MARGIN-BOTTOM:-2px; FLOAT:left">(a)</p> <p style="TEXT-INDENT:-2px; MARGIN:0px" align=justify>In consideration of, among other things, the Noteholders&#146; exe