NINTH AMENDMENT TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT DATED AS OF SEPTEMBER 25, 2017 AMONG OASIS PETROLEUM NORTH AMERICA LLC, AS BORROWER, THE GUARANTORS PARTY HERETO, WELLS FARGO BANK, N.A., AS ADMINISTRATIVE AGENT, AND THE LENDERS PARTY HERETO
Exhibit 10.3
Β
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NINTH AMENDMENT
TO
SECOND AMENDED AND RESTATED CREDIT AGREEMENT
DATED AS OF SEPTEMBERΒ 25, 2017
AMONG
OASIS PETROLEUM NORTH AMERICA LLC,
AS BORROWER,
THE GUARANTORS PARTY HERETO,
XXXXX FARGO BANK, N.A., AS ADMINISTRATIVE AGENT,
AND
THE LENDERS PARTY HERETO
Β
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NINTH AMENDMENT TO
SECOND AMENDED AND RESTATED CREDIT AGREEMENT
THIS NINTH AMENDMENT TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT (this βNinth Amendmentβ) dated as of SeptemberΒ 25, 2017, is among OASIS PETROLEUM NORTH AMERICA LLC, a Delaware limited liability company (the βBorrowerβ); the Guarantors party hereto (the βGuarantorsβ and collectively with the Borrower, the βCredit Partiesβ); the DevCos party hereto; each of the lenders party to the Credit Agreement referred to below (collectively, the βLendersβ) party hereto; and XXXXX FARGO BANK, N.A., as administrative agent for the Lenders (in such capacity, together with its successors in such capacity, the βAdministrative Agentβ) and as the issuing bank (in such capacity, the βIssuing Bankβ).
R E C I T A L S:
A. Parent, OP LLC, the Borrower, the Administrative Agent and the Lenders are parties to that certain Second Amended and Restated Credit Agreement dated as of AprilΒ 5, 2013, as amended by that certain First Amendment to Second Amended and Restated Credit Agreement dated as of SeptemberΒ 3, 2013, that certain Second Amendment to Second Amended and Restated Credit Agreement dated as of SeptemberΒ 30, 2014, that certain Third Amendment to Second Amended and Restated Credit Agreement dated as of AprilΒ 13, 2015, that certain Fourth Amendment to Second Amended and Restated Credit Agreement dated as of NovemberΒ 13, 2015, that certain Fifth Amendment to Second Amended and Restated Credit Agreement dated as of FebruaryΒ 23, 2016, that certain Sixth Amendment to Amended and Restated Credit Agreement dated as of AugustΒ 8, 2016, that certain Seventh Amendment to Second Amended and Restated Credit Agreement dated as of OctoberΒ 14, 2016 and that certain Eighth Amendment to Credit Agreement dated as of AprilΒ 10, 2017 (the βCredit Agreementβ), pursuant to which the Lenders have made certain credit available to and on behalf of the Borrower.
B. The Borrower, the Guarantors, the DevCos, the Administrative Agent and the Lenders party hereto desire to amend certain provisions of the Credit Agreement as set forth herein effective as of the Ninth Amendment Effective Date (as defined below).
C. Furthermore, the Administrative Agent and the Required Lenders desire to reaffirm the Borrowing Base at $1,600,000,000 after giving effect to the amendments contained in this Ninth Amendment.
NOW, THEREFORE, in consideration of the premises and the mutual covenants herein contained, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:
SectionΒ 1. Defined Terms. Each capitalized term used herein but not otherwise defined herein has the meaning given such term in the Credit Agreement, as amended by this Ninth Amendment. Unless otherwise indicated, all section references in this Ninth Amendment refer to sections of the Credit Agreement.
SectionΒ 2. Amendments to Credit Agreement. In reliance on the representations, warranties, covenants and agreements contained in this Ninth Amendment, and subject to the conditions precedent contained in SectionΒ 4 hereof, the Credit Agreement (other than the schedules thereto) is hereby amended to read in its entirety as set forth on Exhibit A attached hereto.
SectionΒ 3. Borrowing Base Redetermination. Pursuant to SectionΒ 2.07 of the Credit Agreement, the Administrative Agent and the Required Lenders agree that for the period from and including the Ninth Amendment Effective Date to but excluding the next Redetermination Date, the amount of the Borrowing Base shall be equal to $1,600,000,000. Notwithstanding the foregoing, the Borrowing Base may be subject to further adjustments from time to time pursuant to SectionΒ 2.07(e), SectionΒ 8.13(c), SectionΒ 9.12(d), SectionΒ 9.12(f) or SectionΒ 9.12(g). The parties hereto agree that the redetermination provided for herein shall not constitute a Scheduled Redetermination nor an Interim Redetermination. For the avoidance of doubt, the next Scheduled Redetermination shall be the OctoberΒ 1, 2017 Scheduled Redetermination.
SectionΒ 4. Conditions Precedent. This Ninth Amendment shall become effective as of the date when each of the following conditions is satisfied (or waived in accordance with SectionΒ 12.02 of the Credit Agreement) (the βNinth Amendment Effective Dateβ):
4.1 The Administrative Agent shall have received from the Borrower, each Guarantor, each DevCo and the Lenders counterparts (in such number as may be requested by the Administrative Agent) of this Ninth Amendment signed on behalf of such Person.
4.2 The Administrative Agent shall have received a certificate of the Secretary or an Assistant Secretary of each DevCo setting forth (a)Β resolutions of its board of directors or other appropriate governing body with respect to the authorization of such DevCo to execute and deliver the Loan Documents to which it is a party and to enter into the transactions contemplated in those documents, (b)Β the officers of such DevCo who are authorized to sign the Loan Documents to which such DevCo is a party and who will, until replaced by another officer or officers duly authorized for that purpose, act as its representative for the purposes of signing documents and giving notices and other communications in connection with this Agreement and the transactions contemplated hereby, (c)Β specimen signatures of such authorized officers, and (d)Β the articles or certificate of incorporation and by-laws or other applicable organizational documents of such DevCo, certified as being true and complete. The Administrative Agent and the Lenders may conclusively rely on such certificate until the Administrative Agent receives notice in writing from the Borrower to the contrary.
4.3 The Administrative Agent shall have received certificates of the appropriate State agencies with respect to the existence, qualification and good standing of each DevCo.
4.4 The Administrative Agent shall have received from each party thereto duly executed counterparts (in such number as may be requested by the Administrative Agent) of the Intercreditor Agreement, the DevCo Mortgages and the DevCo Guaranty Agreements.
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4.5 The Administrative Agent shall have received duly executed Security Instruments and other documents necessary for the Credit Parties to be in compliance with SectionΒ 8.14(b) of the Credit Agreement, including without limitation any supplements and/or joinders to the Guaranty and Security Agreement and UCC financing statements with respect to the General Partner.
4.6 The Administrative Agent shall have received an opinion of (a)Β DLA Piper LLP (US), special counsel to the Credit Parties and the DevCos, substantially in a form and of substance reasonably acceptable to the Administrative Agent, and (b)Β local counsel in each of the following states: Montana, North Dakota and any other jurisdictions requested by the Administrative Agent, substantially in a form and of substance reasonably acceptable to the Administrative Agent.
4.7 The Administrative Agent shall have received a certificate of insurance coverage of the Credit Parties evidencing that the Credit Parties and DevCos are carrying insurance in accordance with the terms of the Credit Agreement.
4.8 The Administrative Agent shall have received satisfactory title information as the Administrative Agent may reasonably require with respect to the status of title to the Midstream Properties of the DevCos.
4.9 The Administrative Agent shall have received, at least ten (10)Β Business Days prior to the Ninth Amendment Effective Date all Flood Deliverables with respect to the DevCo Collateral.
4.10 Each of the Midstream MLP IPO and the Midstream MLP Contribution shall have been consummated (or will be consummated substantially concurrently with the effectiveness of this Ninth Amendment), and after giving effect to such consummation, (a)Β the Credit Parties shall receive cash consideration in respect of the Midstream MLP Contribution of at least $113,000,000, and (b)Β the Parent shall have directly or indirectly (i)Β sole ownership of the Equity Interests in the General Partner (other than the Class B Units), (ii)Β ownership of at least 50% of the limited partnership units of the Midstream MLP and (iii)Β ownership of at least 60% of the Equity Interests in Beartooth and 90% of the Equity Interests in Bobcat.
4.11 No Default shall have occurred and be continuing as of the date hereof prior to and after giving effect to the terms of this Ninth Amendment.
4.12 The Administrative Agent shall have received such other documents as the Administrative Agent or its special counsel may reasonably require.
The Administrative Agent is hereby authorized and directed to declare this Ninth Amendment to be effective when it has received documents confirming or certifying, to the satisfaction of the Administrative Agent, compliance with the conditions set forth in this SectionΒ 4 or the waiver of such conditions as permitted hereby. Such declaration shall be final, conclusive and binding upon all parties to the Credit Agreement for all purposes.
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SectionΒ 5. Miscellaneous.
5.1 Confirmation and Effect. The provisions of the Credit Agreement, as amended by this Ninth Amendment, shall remain in full force and effect following the effectiveness of this Ninth Amendment. Each reference in the Credit Agreement to βthis Agreementβ, βhereunderβ, βhereofβ, βhereinβ or any other word or words of similar import shall mean and be a reference to the Credit Agreement as amended hereby, and each reference in any other Loan Document to the Credit Agreement or any word or words of similar import shall be and mean a reference to the Credit Agreement as amended hereby.
5.2 No Waiver. Neither the execution by the Administrative Agent or the Lenders of this Ninth Amendment, nor any other act or omission by the Administrative Agent or the Lenders or their officers in connection herewith, shall be deemed a waiver by the Administrative Agent or the Lenders of any Defaults or Events of Default which may exist, which may have occurred prior to the date of the effectiveness of Ninth Amendment or which may occur in the future under the Credit Agreement and/or the other Loan Documents. Similarly, nothing contained in this Ninth Amendment shall directly or indirectly in any way whatsoever either: (a)Β impair, prejudice or otherwise adversely affect the Administrative Agentβs or the Lendersβ right at any time to exercise any right, privilege or remedy in connection with the Loan Documents with respect to any Default or Event of Default, (b)Β except as expressly provided herein, amend or alter any provision of the Credit Agreement, the other Loan Documents, or any other contract or instrument, or (c)Β constitute any course of dealing or other basis for altering any obligation of the Borrower or any right, privilege or remedy of the Administrative Agent or the Lenders under the Credit Agreement, the other Loan Documents, or any other contract or instrument.
5.3 Ratification and Affirmation; Representations and Warranties. Each Credit Party and each DevCo hereby (a)Β acknowledges the terms of this Ninth Amendment; (b)Β ratifies and affirms its obligations under, and acknowledges its continued liability under, each Loan Document to which it is a party and agrees that each Loan Document to which it is a party remains in full force and effect as expressly amended hereby and (c)Β represents and warrants to the Lenders that as of the date hereof, after giving effect to the terms of this Ninth Amendment: (i)Β all of the representations and warranties contained in each Loan Document to which it is a party are true and correct in all material respects (or, if already qualified by materiality, Material Adverse Effect or a similar qualification, true and correct 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 already qualified by materiality, Material Adverse Effect or a similar qualification, true and correct in all respects) as of such specified earlier date, (ii)Β no Default or Event of Default has occurred and is continuing and (iii)Β no event or events have occurred which individually or in the aggregate could reasonably be expected to have a Material Adverse Effect.
5.4 Counterparts. This Ninth 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. Delivery of this Ninth Amendment by facsimile or email transmission shall be effective as delivery of a manually executed counterpart hereof.
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5.5 No Oral Agreement. This Ninth Amendment, the Credit Agreement and the other Loan Documents executed in connection herewith and therewith represent the final agreement between the parties and may not be contradicted by evidence of prior, contemporaneous, or unwritten oral agreements of the parties. There are no subsequent oral agreements between the parties.
5.6 GOVERNING LAW. THIS NINTH AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.
5.7 Payment of Expenses. In accordance with SectionΒ 12.03 of the Credit Agreement, the Borrower agrees to pay or reimburse the Administrative Agent for all of its reasonable out-of-pocket costs and reasonable expenses incurred in connection with this Ninth Amendment, any other documents prepared in connection herewith and the transactions contemplated hereby, including, without limitation, the reasonable fees and disbursements of counsel to the Administrative Agent.
5.8 Severability. Any provision of this Ninth Amendment which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.
5.9 Successors and Assigns. This Ninth Amendment shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns.
5.10 Loan Document. This Ninth Amendment shall constitute a βLoan Documentβ under and as defined in SectionΒ 1.02 of the Credit Agreement.
5.11 No Novation. The parties hereto agree that this Ninth Amendment (including Exhibit A attached hereto) does not in any way constitute a novation of the existing Credit Agreement, but is an amendment of the Credit Agreement.
[Signatures Begin Next Page]
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IN WITNESS WHEREOF, the parties hereto have caused this Ninth Amendment to be duly executed as of the date first written above.
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BORROWER: | Β | OASIS PETROLEUM NORTH AMERICA LLC | ||
Β | By: | Β | /s/ Xxxxxxx X. Xxx | |
Β | Name: | Β | Michael Lou | |
Β | Title: | Β | Executive Vice President and Chief | |
Β | Β | Financial Officer | ||
GUARANTORS: | Β | OASIS PETROLEUM INC. | ||
Β | OASIS PETROLEUM LLC | |||
Β | OASIS PETROLEUM MARKETING LLC | |||
Β | OASIS WELL SERVICES LLC | |||
Β | OASIS MIDSTREAM SERVICES LLC | |||
Β | OMS HOLDINGS LLC | |||
Β | By: | Β | /s/ Xxxxxxx X. Xxx | |
Β | Name: | Β | Michael Lou | |
Β | Title: | Β | Executive Vice President and Chief | |
Β | Β | Financial Officer | ||
Β | OMP GP LLC | |||
Β | By: | Β | /s/ Xxxxxxx X. Xxx | |
Β | Name: | Β | Michael Lou | |
Β | Title: | Β | President | |
DEVCOS: | Β | BEARTOOTH DEVCO LLC | ||
Β | BOBCAT DEVCO LLC | |||
Β | By: | Β | /s/ Xxxxxxx Xxxxxx | |
Β | Name: | Β | Xxxxxxx Xxxxxx | |
Β | Title: | Β | Senior Vice President and Chief Financial | |
Β | Β | Officer |
Signature Page to
Ninth Amendment to Second Amended and Restated Credit Agreement
(Oasis Petroleum North America LLC)
ADMINISTRATIVE AGENT, | Β | Β | ||
ISSUING BANK AND LENDER: | Β | XXXXX FARGO BANK, N.A., | ||
Β | as Administrative Agent, Issuing Bank and as a Lender | |||
Β | By: | Β | /s/ Xxxxxx Xxxxxx | |
Β | Name: | Β | Xxxxxx Xxxxxx | |
Β | Title: | Β | Director |
Signature Page to
Ninth Amendment to Second Amended and Restated Credit Agreement
(Oasis Petroleum North America LLC)
LENDERS: | Β | CITIBANK, N.A., as a Lender | ||
Β | By: | Β | /s/ Xxxxx Xxxxx | |
Β | Name: | Β | Xxxxx Xxxxx | |
Β | Title: | Β | Vice President |
Signature Page to
Ninth Amendment to Second Amended and Restated Credit Agreement
(Oasis Petroleum North America LLC)
JPMORGAN CHASE BANK, N.A., | ||
as a Lender | ||
By: | Β | /s/ Xxxxx Xxxx |
Name: | Β | Xxxxx Xxxx |
Title: | Β | Authorized Officer |
Signature Page to
Ninth Amendment to Second Amended and Restated Credit Agreement
(Oasis Petroleum North America LLC)
ROYAL BANK OF CANADA, as a Lender | ||
By: | Β | /s/ Xxxx Xxxxxxx, Xx. |
Name: | Β | Xxxx Xxxxxxx, Xx. |
Title: | Β | Authorized Signatory |
Signature Page to
Ninth Amendment to Second Amended and Restated Credit Agreement
(Oasis Petroleum North America LLC)
CAPITAL ONE, NATIONAL ASSOCIATION, | ||
as a Lender | ||
By: | Β | /s/ Xxxx Xxxxxxxx |
Name: | Β | Xxxx Xxxxxxxx |
Title: | Β | Vice President |
Signature Page to
Ninth Amendment to Second Amended and Restated Credit Agreement
(Oasis Petroleum North America LLC)
COMPASS BANK, as a Lender | ||
By: | Β | /s/ Xxxx XxXxxxxx |
Name: | Β | Xxxx XxXxxxxx |
Title: | Β | Vice President |
Signature Page to
Ninth Amendment to Second Amended and Restated Credit Agreement
(Oasis Petroleum North America LLC)
CANADIAN IMPERIAL BANK OF | ||
COMMERCE, NEW YORK BRANCH, as a Lender | ||
By: | Β | /s/ Xxxxxxx X. Xxxx |
Name: | Β | Xxxxxxx X. Xxxx |
Title: | Β | Authorized Signatory |
By: | Β | /s/ Xxxxx Xxxxxx |
Name: | Β | Xxxxx Xxxxxx |
Title: | Β | Authorized Signatory |
Signature Page to
Ninth Amendment to Second Amended and Restated Credit Agreement
(Oasis Petroleum North America LLC)
DEUTSCHE BANK AG NEW YORK BRANCH, | ||
as a Lender | ||
By: | Β | /s/ Xxxxx Xxxxxxx |
Name: | Β | Xxxxx Xxxxxxx |
Title: | Β | Director |
By: | Β | /s/ Xxxxx Xxxxxxxxx |
Name: | Β | Xxxxx Xxxxxxxxx |
Title: | Β | Vice President |
Signature Page to
Ninth Amendment to Second Amended and Restated Credit Agreement
(Oasis Petroleum North America LLC)
ING CAPITAL LLC, as a Lender | ||
By: | Β | /s/ Xxxx Xxxxxx |
Name: | Β | Xxxx Xxxxxx |
Title: | Β | Director |
By: | Β | /s/ Xxxxxxx Xxxx |
Name: | Β | Xxxxxxx Xxxx |
Title: | Β | Managing Director |
Signature Page to
Ninth Amendment to Second Amended and Restated Credit Agreement
(Oasis Petroleum North America LLC)
CITIZENS BANK, N.A., as a Lender | ||
By: | Β | /s/ Xxxxxxxx Xxxxxx |
Name: | Β | Xxxxxxxx Xxxxxx |
Title: | Β | Director |
Signature Page to
Ninth Amendment to Second Amended and Restated Credit Agreement
(Oasis Petroleum North America LLC)
U.S. BANK NATIONAL ASSOCIATION, | ||
as a Lender | ||
By: | Β | /s/ Xxxx X. Xxxxxx |
Name: | Β | Xxxx X. Xxxxxx |
Title: | Β | Vice President |
Signature Page to
Ninth Amendment to Second Amended and Restated Credit Agreement
(Oasis Petroleum North America LLC)
ZB, N.A. DBA AMEGY BANK, as a Lender | ||
By: | Β | /s/ Xxxx Xxxxxxx |
Name: | Β | Xxxx Xxxxxxx |
Title: | Β | Vice President |
Signature Page to
Ninth Amendment to Second Amended and Restated Credit Agreement
(Oasis Petroleum North America LLC)
BOKF, NATIONAL ASSOCIATION DBA BANK | ||
OF TEXAS, as a Lender | ||
By: | Β | /s/ Xxxxxx Xxxx |
Name: | Β | Xxxxxx Xxxx |
Title: | Β | AVP, Energy Lending |
Signature Page to
Ninth Amendment to Second Amended and Restated Credit Agreement
(Oasis Petroleum North America LLC)
BRANCH BANKING AND TRUST COMPANY, | ||
as a Lender | ||
By: | Β | /s/ Xxxxx Xxxxxxxx |
Name: | Β | Xxxxx Xxxxxxxx |
Title: | Β | Senior Vice President |
Signature Page to
Ninth Amendment to Second Amended and Restated Credit Agreement
(Oasis Petroleum North America LLC)
COMERICA BANK, as a Lender | ||
By: | Β | /s/ Xxxxxxx X. Xxxxxxxx |
Name: | Β | Xxxxxxx X. Xxxxxxxx |
Title: | Β | Senior Vice President |
Signature Page to
Ninth Amendment to Second Amended and Restated Credit Agreement
(Oasis Petroleum North America LLC)
CREDIT SUISSE AG, CAYMAN ISLANDS | ||
BRANCH, as a Lender | ||
By: | Β | /s/ Xxxxx Xxxxx |
Name: | Β | Xxxxx Xxxxx |
Title: | Β | Authorized Signatory |
By: | Β | /s/ Xxx Xxxxxxxxxx |
Name: | Β | Xxx Xxxxxxxxxx |
Title: | Β | Authorized Signatory |
Signature Page to
Ninth Amendment to Second Amended and Restated Credit Agreement
(Oasis Petroleum North America LLC)
REGIONS BANK, as a Lender | ||
By: | Β | /s/ Xxxxxxx X. Xxxxxxx |
Name: | Β | Xxxxxxx X. Xxxxxxx |
Title: | Β | Managing Director |
Signature Page to
Ninth Amendment to Second Amended and Restated Credit Agreement
(Oasis Petroleum North America LLC)
IBERIABANK, as a Lender | ||
By: | Β | /s/ Xxxxx Xxxxxxxxx |
Name: | Β | Xxxxx Xxxxxxxxx |
Title: | Β | Senior Vice President |
Signature Page to
Ninth Amendment to Second Amended and Restated Credit Agreement
(Oasis Petroleum North America LLC)
EXHIBIT A
Amended Credit Agreement
[See attached.]
Exhibit A
EXHIBIT A TO NINTH AMENDMENT
SECOND AMENDED AND RESTATED CREDIT AGREEMENT
DATED AS OF
APRILΒ 5, 2013
AMONG
OASIS PETROLEUM INC.,
AS PARENT,
OASIS PETROLEUM NORTH AMERICA LLC,
AS BORROWER,
THE OTHER CREDIT PARTIES PARTY HERETO,
XXXXX FARGO BANK, N.A.,
AS ADMINISTRATIVE AGENT
AND
THE LENDERS PARTY HERETO
SOLE LEAD ARRANGER AND SOLE BOOKRUNNER
XXXXX FARGO SECURITIES, LLC
TABLE OF CONTENTS
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Β | Β | Β | Β Β | Page | Β | |
Β | ARTICLEΒ I | Β Β | ||||
Β | Definitions and Accounting Matters | Β Β | ||||
SectionΒ 1.01 |
Β | Terms Defined Above | Β Β | Β | 1 | Β |
SectionΒ 1.02 |
Β | Certain Defined Terms | Β Β | Β | 1 | Β |
SectionΒ 1.03 |
Β | Types of Loans and Borrowings | Β Β | Β | 31 | Β |
SectionΒ 1.04 |
Β | Terms Generally; Rules of Construction | Β Β | Β | 31 | Β |
SectionΒ 1.05 |
Β | Accounting Terms and Determinations; GAAP | Β Β | Β | 31 | Β |
Β | ARTICLEΒ II |
Β Β | ||||
Β | The Credits |
Β Β | ||||
SectionΒ 2.01 |
Β | Commitments | Β Β | Β | 32 | Β |
SectionΒ 2.02 |
Β | Loans and Borrowings | Β Β | Β | 32 | Β |
SectionΒ 2.03 |
Β | Requests for Borrowings | Β Β | Β | 33 | Β |
SectionΒ 2.04 |
Β | Interest Elections | Β Β | Β | 34 | Β |
SectionΒ 2.05 |
Β | Funding of Borrowings; Funding by Lenders | Β Β | Β | 35 | Β |
SectionΒ 2.06 |
Β | Termination and Reduction of Aggregate Maximum Credit Amounts; Optional Increase and Reduction of Aggregate Elected Commitment Amounts | Β Β | Β | 36 | Β |
SectionΒ 2.07 |
Β | Borrowing Base | Β Β | Β | 39 | Β |
SectionΒ 2.08 |
Β | Letters of Credit | Β Β | Β | 44 | Β |
SectionΒ 2.09 |
Β | Loans and Borrowings Under Existing Credit Agreement | Β Β | Β | 50 | Β |
Β | ARTICLEΒ III | Β Β | ||||
Β | Payments of Principal and Interest; Prepayments; Fees | Β Β | ||||
SectionΒ 3.01 |
Β | Repayment of Loans | Β Β | Β | 51 | Β |
SectionΒ 3.02 |
Β | Interest | Β Β | Β | 51 | Β |
SectionΒ 3.03 |
Β | Alternate Rate of Interest | Β Β | Β | 52 | Β |
SectionΒ 3.04 |
Β | Prepayments | Β Β | Β | 52 | Β |
SectionΒ 3.05 |
Β | Fees | Β Β | Β | 54 | Β |
Β | ARTICLEΒ IV | Β Β | ||||
Β | Payments; Pro Rata Treatment; Sharing of Set-offs | Β Β | ||||
SectionΒ 4.01 |
Β | Payments Generally; Pro Rata Treatment; Sharing of Set-offs | Β Β | Β | 55 | Β |
SectionΒ 4.02 |
Β | Presumption of Payment by the Borrower | Β Β | Β | 57 | Β |
SectionΒ 4.03 |
Β | Certain Deductions by the Administrative Agent | Β Β | Β | 57 | Β |
SectionΒ 4.04 |
Β | Disposition of Proceeds | Β Β | Β | 57 | Β |
Β | ARTICLEΒ V | Β Β | ||||
Β | Increased Costs; Break Funding Payments; Taxes | Β Β | ||||
SectionΒ 5.01 |
Β | Increased Costs | Β Β | Β | 58 | Β |
SectionΒ 5.02 |
Β | Break Funding Payments | Β Β | Β | 59 | Β |
SectionΒ 5.03 |
Β | Taxes | Β Β | Β | 59 | Β |
SectionΒ 5.04 |
Β | Mitigation Obligations; Replacement of Lenders | Β Β | Β | 62 | Β |
SectionΒ 5.05 |
Β | Illegality | Β Β | Β | 63 | Β |
Β
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Β | ARTICLEΒ VI |
Β Β | ||||
Β | Conditions Precedent |
Β Β | ||||
SectionΒ 6.01 |
Β | Effective Date | Β Β | Β | 63 | Β |
SectionΒ 6.02 |
Β | Each Credit Event | Β Β | Β | 66 | Β |
Β | ARTICLEΒ VII |
Β Β | ||||
Β | Representations and Warranties |
Β Β | ||||
SectionΒ 7.01 |
Β | Organization; Powers | Β Β | Β | 67 | Β |
SectionΒ 7.02 |
Β | Authority; Enforceability | Β Β | Β | 67 | Β |
SectionΒ 7.03 |
Β | Approvals; No Conflicts | Β Β | Β | 68 | Β |
SectionΒ 7.04 |
Β | Financial Condition; No Material Adverse Change | Β Β | Β | 68 | Β |
SectionΒ 7.05 |
Β | Litigation | Β Β | Β | 69 | Β |
SectionΒ 7.06 |
Β | Environmental Matters | Β Β | Β | 69 | Β |
SectionΒ 7.07 |
Β | Compliance with the Laws and Agreements; No Defaults or Borrowing Base Deficiency | Β Β | Β | 70 | Β |
SectionΒ 7.08 |
Β | Investment Company Act | Β Β | Β | 70 | Β |
SectionΒ 7.09 |
Β | Taxes | Β Β | Β | 71 | Β |
SectionΒ 7.10 |
Β | ERISA | Β Β | Β | 71 | Β |
SectionΒ 7.11 |
Β | Disclosure; No Material Misstatements | Β Β | Β | 72 | Β |
SectionΒ 7.12 |
Β | Insurance | Β Β | Β | 72 | Β |
SectionΒ 7.13 |
Β | Restriction on Liens | Β Β | Β | 73 | Β |
SectionΒ 7.14 |
Β | Subsidiaries | Β Β | Β | 73 | Β |
SectionΒ 7.15 |
Β | Location of Business and Offices | Β Β | Β | 73 | Β |
SectionΒ 7.16 |
Β | Properties; Titles, Etc. | Β Β | Β | 74 | Β |
SectionΒ 7.17 |
Β | Maintenance of Properties | Β Β | Β | 75 | Β |
SectionΒ 7.18 |
Β | Gas Imbalances, Prepayments | Β Β | Β | 75 | Β |
SectionΒ 7.19 |
Β | Marketing of Production | Β Β | Β | 75 | Β |
SectionΒ 7.20 |
Β | Swap Agreements and Qualified ECP Guarantor | Β Β | Β | 76 | Β |
SectionΒ 7.21 |
Β | Use of Loans and Letters of Credit | Β Β | Β | 76 | Β |
SectionΒ 7.22 |
Β | Solvency | Β Β | Β | 76 | Β |
SectionΒ 7.23 |
Β | Foreign Corrupt Practices | Β Β | Β | 76 | Β |
SectionΒ 7.24 |
Β | OFAC | Β Β | Β | 77 | Β |
SectionΒ 7.25 |
Β | OP International | Β Β | Β | 77 | Β |
SectionΒ 7.26 |
Β | EEA Financial Institutions | Β Β | Β | 77 | Β |
SectionΒ 7.27 |
Β | DevCo Properties | Β Β | Β | 77 | Β |
SectionΒ 7.28 |
Β | FERC | Β Β | Β | 79 | Β |
SectionΒ 7.29 |
Β | State Regulation | Β Β | Β | 79 | Β |
SectionΒ 7.30 |
Β | Title to Refined Products | Β Β | Β | 79 | Β |
SectionΒ 7.31 |
Β | Flood Insurance Related Matters | Β Β | Β | 79 | Β |
Β | ARTICLEΒ VIII |
Β Β | ||||
Β | Affirmative Covenants |
Β Β | ||||
SectionΒ 8.01 |
Β | Financial Statements; Other Information | Β Β | Β | 80 | Β |
SectionΒ 8.02 |
Β | Notices of Material Events | Β Β | Β | 83 | Β |
SectionΒ 8.03 |
Β | Existence; Conduct of Business | Β Β | Β | 83 | Β |
SectionΒ 8.04 |
Β | Payment of Obligations | Β Β | Β | 84 | Β |
Β
ii
SectionΒ 8.05 |
Β | Performance of Obligations under Loan Documents | Β Β | Β | 84 | Β |
SectionΒ 8.06 |
Β | Operation and Maintenance of Properties | Β Β | Β | 84 | Β |
SectionΒ 8.07 |
Β | Insurance | Β Β | Β | 85 | Β |
SectionΒ 8.08 |
Β | Books and Records; Inspection Rights | Β Β | Β | 85 | Β |
SectionΒ 8.09 |
Β | Compliance with Laws | Β Β | Β | 85 | Β |
SectionΒ 8.10 |
Β | Environmental Matters | Β Β | Β | 86 | Β |
SectionΒ 8.11 |
Β | Further Assurances | Β Β | Β | 87 | Β |
SectionΒ 8.12 |
Β | Reserve Reports | Β Β | Β | 87 | Β |
SectionΒ 8.13 |
Β | TitleΒ Information | Β Β | Β | 89 | Β |
SectionΒ 8.14 |
Β | Additional Collateral; Additional Guarantors | Β Β | Β | 90 | Β |
SectionΒ 8.15 |
Β | ERISA Compliance | Β Β | Β | 92 | Β |
SectionΒ 8.16 |
Β | DevCo Properties | Β Β | Β | 92 | Β |
SectionΒ 8.17 |
Β | Marketing Activities | Β Β | Β | 93 | Β |
SectionΒ 8.18 |
Β | Commodity Exchange Act Keepwell Provisions | Β Β | Β | 94 | Β |
SectionΒ 8.19 |
Β | DevCo Guaranty | Β Β | Β | 94 | Β |
SectionΒ 8.20 |
Β | Ownership of DevCo Equity Interests | Β Β | Β | 94 | Β |
SectionΒ 8.21 |
Β | Ownership of General Partner Equity Interests | Β Β | Β | 94 | Β |
Β | ARTICLEΒ IX |
Β Β | ||||
Β | Negative Covenants |
Β Β | ||||
SectionΒ 9.01 |
Β | Financial Covenants | Β Β | Β | 95 | Β |
SectionΒ 9.02 |
Β | Debt | Β Β | Β | 95 | Β |
SectionΒ 9.03 |
Β | Liens | Β Β | Β | 96 | Β |
SectionΒ 9.04 |
Β | Dividends, Distributions and Redemptions; Repayment of Senior Notes and Amendment to Terms of Senior Notes | Β Β | Β | 97 | Β |
SectionΒ 9.05 |
Β | Investments, Loans and Advances | Β Β | Β | 99 | Β |
SectionΒ 9.06 |
Β | Nature of Business; International Operations | Β Β | Β | 101 | Β |
SectionΒ 9.07 |
Β | Proceeds of Notes | Β Β | Β | 101 | Β |
SectionΒ 9.08 |
Β | Limitation on Leases | Β Β | Β | 101 | Β |
SectionΒ 9.09 |
Β | ERISA Compliance | Β Β | Β | 102 | Β |
SectionΒ 9.10 |
Β | Sale or Discount of Receivables | Β Β | Β | 102 | Β |
SectionΒ 9.11 |
Β | Mergers, Etc. | Β Β | Β | 102 | Β |
SectionΒ 9.12 |
Β | Sale of Properties and Liquidation of Swap Agreements | Β Β | Β | 103 | Β |
SectionΒ 9.13 |
Β | Environmental Matters | Β Β | Β | 104 | Β |
SectionΒ 9.14 |
Β | Transactions with Affiliates | Β Β | Β | 105 | Β |
SectionΒ 9.15 |
Β | Subsidiaries | Β Β | Β | 105 | Β |
SectionΒ 9.16 |
Β | Negative Pledge Agreements; Dividend Restrictions | Β Β | Β | 105 | Β |
SectionΒ 9.17 |
Β | Gas Imbalances, Take-or-Pay or Other Prepayments | Β Β | Β | 105 | Β |
SectionΒ 9.18 |
Β | Swap Agreements | Β Β | Β | 106 | Β |
SectionΒ 9.19 |
Β | Covenants of Parent, OP LLC and General Partner | Β Β | Β | 107 | Β |
SectionΒ 9.20 |
Β | Non-Qualified ECP Guarantors | Β Β | Β | 107 | Β |
SectionΒ 9.21 |
Β | Changes to Organizational Documents of General Partner | Β Β | Β | 107 | Β |
Β | ARTICLEΒ X |
Β Β | ||||
Β | Events of Default; Remedies |
Β Β | ||||
SectionΒ 10.01 |
Β | Events of Default | Β Β | Β | 107 | Β |
SectionΒ 10.02 |
Β | Remedies | Β Β | Β | 110 | Β |
Β
iii
Β | ARTICLEΒ XI | Β Β | ||||
Β | The Agents | Β Β | ||||
SectionΒ 11.01 |
Β | Appointment; Powers | Β Β | Β | 111 | Β |
SectionΒ 11.02 |
Β | Duties and Obligations of Administrative Agent | Β Β | Β | 111 | Β |
SectionΒ 11.03 |
Β | Action by Administrative Agent | Β Β | Β | 112 | Β |
SectionΒ 11.04 |
Β | Reliance by Administrative Agent | Β Β | Β | 113 | Β |
SectionΒ 11.05 |
Β | Subagents | Β Β | Β | 113 | Β |
SectionΒ 11.06 |
Β | Resignation of Administrative Agent | Β Β | Β | 113 | Β |
SectionΒ 11.07 |
Β | Agents as Lenders | Β Β | Β | 114 | Β |
SectionΒ 11.08 |
Β | No Reliance | Β Β | Β | 114 | Β |
SectionΒ 11.09 |
Β | Administrative Agent May File Proofs of Claim | Β Β | Β | 114 | Β |
SectionΒ 11.10 |
Β | Authority of Administrative Agent to Release Collateral and Liens | Β Β | Β | 115 | Β |
SectionΒ 11.11 |
Β | The Arranger | Β Β | Β | 115 | Β |
SectionΒ 11.12 |
Β | Intercreditor Agreement | Β Β | Β | 115 | Β |
Β | ARTICLEΒ XII | Β Β | ||||
Β | Miscellaneous | Β Β | ||||
SectionΒ 12.01 |
Β | Notices | Β Β | Β | 116 | Β |
SectionΒ 12.02 |
Β | Waivers; Amendments | Β Β | Β | 116 | Β |
SectionΒ 12.03 |
Β | Expenses, Indemnity; Damage Waiver | Β Β | Β | 118 | Β |
SectionΒ 12.04 |
Β | Successors and Assigns | Β Β | Β | 121 | Β |
SectionΒ 12.05 |
Β | Survival; Revival; Reinstatement | Β Β | Β | 124 | Β |
SectionΒ 12.06 |
Β | Counterparts; Integration; Effectiveness | Β Β | Β | 125 | Β |
SectionΒ 12.07 |
Β | Severability | Β Β | Β | 125 | Β |
SectionΒ 12.08 |
Β | Right of Setoff | Β Β | Β | 125 | Β |
SectionΒ 12.09 |
Β | GOVERNING LAW; JURISDICTION; CONSENT TO SERVICE OF PROCESS | Β Β | Β | 126 | Β |
SectionΒ 12.10 |
Β | Headings | Β Β | Β | 127 | Β |
SectionΒ 12.11 |
Β | Confidentiality | Β Β | Β | 127 | Β |
SectionΒ 12.12 |
Β | Interest Rate Limitation | Β Β | Β | 128 | Β |
SectionΒ 12.13 |
Β | EXCULPATION PROVISIONS | Β Β | Β | 129 | Β |
SectionΒ 12.14 |
Β | Collateral Matters; Swap Agreements | Β Β | Β | 129 | Β |
SectionΒ 12.15 |
Β | No Third Party Beneficiaries | Β Β | Β | 130 | Β |
SectionΒ 12.16 |
Β | USA Patriot Act Notice | Β Β | Β | 130 | Β |
SectionΒ 12.17 |
Β | True-Up Loans | Β Β | Β | 130 | Β |
SectionΒ 12.18 |
Β | Restatement; Existing Credit Agreement | Β Β | Β | 130 | Β |
SectionΒ 12.19 |
Β | Acknowledgement and Consent to Bail-In of EEA Financial Institutions | Β Β | Β | 130 | Β |
SectionΒ 12.20 |
Β | No Advisory or Fiduciary Responsibility | Β Β | Β | 131 | Β |
Β
iv
ANNEXES, EXHIBITS AND SCHEDULES
Β
AnnexΒ I | Β Β | List of Maximum Credit Amounts and Elected Commitments |
ExhibitΒ A | Β Β | Form of Note |
ExhibitΒ B | Β Β | Form of Borrowing Request |
ExhibitΒ C | Β Β | Form of Interest Election Request |
ExhibitΒ D | Β Β | Form of Compliance Certificate |
ExhibitΒ E-1 | Β Β | Security Instruments |
ExhibitΒ E-2 | Β Β | Form of Second Amended and Restated Guaranty and Security Agreement |
ExhibitΒ F | Β Β | Form of Assignment and Assumption |
ExhibitΒ G | Β Β | Form of Elected Commitment Increase Certificate |
ExhibitΒ H | Β Β | Form of Additional Lender Certificate |
ExhibitΒ I-1 | Β Β | Form ofΒ U.S. Tax Compliance Certificate (Foreign Lenders; Not Partnerships) |
ExhibitΒ I-2 | Β Β | Form ofΒ U.S. Tax Compliance Certificate (Foreign Participants; Not Partnerships) |
ExhibitΒ I-3 | Β Β | Form ofΒ U.S. Tax Compliance Certificate (Foreign Participants; Partnerships) |
ExhibitΒ I-4 | Β Β | Form ofΒ U.S. Tax Compliance Certificate (Foreign Lenders; Partnerships) |
ScheduleΒ 7.05 | Β Β | Litigation |
ScheduleΒ 7.06 | Β Β | Environmental Matters |
ScheduleΒ 7.14 | Β Β | Subsidiaries |
ScheduleΒ 7.16 | Β Β | TitleΒ Defects |
ScheduleΒ 7.18 | Β Β | Gas Imbalances |
ScheduleΒ 7.19 | Β Β | Marketing Contracts |
ScheduleΒ 7.20 | Β Β | Swap Agreements |
ScheduleΒ 9.05 | Β Β | Investments |
Β
v
THIS SECOND AMENDED AND RESTATED CREDIT AGREEMENT dated as of AprilΒ 5, 2013, is among: Oasis Petroleum Inc., a Delaware corporation (the βParentβ); Oasis Petroleum LLC, a Delaware limited liability company (βOP LLCβ), Oasis Petroleum North America LLC, a Delaware limited liability company (the βBorrowerβ); each of the Lenders from time to time party hereto; and Xxxxx Fargo Bank, N.A. (in its individual capacity, βXxxxx Fargoβ), as administrative agent for the Lenders (in such capacity, together with its successors in such capacity, the βAdministrative Agentβ).
R E C I T A L S
A. The Parent, OP LLC, the Borrower, the Administrative Agent and other agents and lenders party thereto are parties to that certain Amended and Restated Credit Agreement dated as of FebruaryΒ 26, 2010, pursuant to which such lenders provided certain loans and extensions of credit to the Borrower (as renewed, extended, amended or otherwise modified from time to time prior to the date hereof, the βExisting Credit Agreementβ).
B. The Parent, OP LLC and the Borrower have requested that the Lenders provide certain loans to and extensions of credit on behalf of the Borrower through an amendment and restatement of the Existing Credit Agreement.
C. The Lenders have agreed to make such loans and extensions of credit subject to the terms and conditions of this Agreement.
D. In consideration of the mutual covenants and agreements herein contained and of the loans, extensions of credit and commitments hereinafter referred to, the parties hereto agree to amend and restate the Existing Credit Agreement in its entirety as follows:
ARTICLEΒ I
Definitions and Accounting Matters
SectionΒ 1.01 Terms Defined Above. As used in this Agreement, each term defined above has the meaning indicated above.
SectionΒ 1.02 Certain Defined Terms. As used in this Agreement, the following terms have the meanings specified below:
β2019 Notesβ means the Parentβs 7.25% senior unsecured notes due FebruaryΒ 1, 2019 issued with an original aggregate principal amount of $400Β million.
βABRβ, when used in reference to any Loan or Borrowing, refers to whether such Loan, or the Loans comprising such Borrowing, are bearing interest at a rate determined by reference to the Alternate Base Rate.
βAcquisition Propertiesβ has the meaning assigned to such term inΒ SectionΒ 2.07(e)(ii)(A).
βAdditional Lenderβ has the meaning assigned to such term inΒ SectionΒ 2.06(c)(i).
Β
1
βAdditional Lender Certificateβ has the meaning assigned to such term inΒ SectionΒ 2.06(c)(ii)(G).
βAdjusted LIBO Rateβ means, with respect to any Eurodollar Borrowing for any Interest Period, an interest rate per annum (rounded upwards, if necessary, to the next 1/100 of 1%) equal to the LIBO Rate for such Interest Period multiplied by the Statutory Reserve Rate.
βAdministrative Questionnaireβ means an Administrative Questionnaire in a form supplied by the Administrative Agent.
βAffected Loansβ has the meaning assigned such term inΒ SectionΒ 5.05.
βAffiliateβ means, with respect to a specified Person, another Person that directly, or indirectly through one or more intermediaries, Controls or is Controlled by or is under common Control with the Person specified.
βAgentsβ means, collectively, the Administrative Agent and any other agent for the Lenders from time to time appointed under this Agreement.
βAggregate Elected Commitment Amountsβ at any time shall equal the sum of the Elected Commitments, as the same may be increased, reduced or terminated pursuant toΒ SectionΒ 2.06(c). As of the Ninth Amendment Effective Date, the Aggregate Elected Commitment Amounts are $1,150,000,000.
βAggregate Maximum Credit Amountsβ at any time shall equal the sum of the Maximum Credit Amounts, as the same may be reduced or terminated pursuant toΒ SectionΒ 2.06.
βAgreementβ means this Second Amended and Restated Credit Agreement, as amended by the First Amendment, the Second Amendment, the Third Amendment, the Fourth Amendment, the Fifth Amendment, the Sixth Amendment, the Seventh Amendment, the Eighth Amendment and the Ninth Amendment and as the same may be further amended or supplemented from time to time.
βAlternate Base Rateβ means, for any day, a rate per annum equal to the greatest of (a)Β the Prime Rate in effect on such day, (b)Β the Federal Funds Effective Rate in effect on such day plus Β 1β2 of 1.00% and (c)Β the Adjusted LIBO Rate for a one month Interest Period on such day (or if such day is not a Business Day, the immediately preceding Business Day) plus 1.50%. Any change in the Alternate Base Rate due to a change in the Prime Rate, the Federal Funds Effective Rate or the Adjusted LIBO Rate shall be effective from and including the effective date of such change in the Prime Rate, the Federal Funds Effective Rate or the Adjusted LIBO Rate, respectively.
βAnnualized EBITDAXβ means, as of the last day of any fiscal quarter, (a)Β for the first full fiscal quarter ending after the Trigger Date, EBITDAX for such quarter multiplied by 4, (b)Β for the second full fiscal quarter ending after the Trigger Date, EBITDAX for the two fiscal quarter period ending on such date multiplied by 2, (c)Β for the third full fiscal quarter ending after the Trigger Date, EBITDAX for the three fiscal quarter period ending on such date multiplied by 4/3, and (d)Β for each fiscal quarter thereafter, EBITDAX for the four fiscal quarter period ending on such date.
Β
2
βApplicable Marginβ means, for any day, with respect to any ABR Loan or Eurodollar Loan, or with respect to the Commitment Fee Rate, as the case may be, the rate per annum set forth in the Total Commitments Utilization Grid below based upon the Total Commitments Utilization Percentage then in effect:
Β
Total Commitments Utilization Grid Β |
Β | |||||||||||||||||||
Total Commitments Utilization Percentage |
Β Β | <Β 25% | Β | Β Β | Β³Β 25%Β <Β 50% | Β | Β Β | Β³Β 50%Β <Β 75% | Β | Β Β | Β³Β 75%Β <Β 90% | Β | Β Β | Β³Β 90% | Β | |||||
ABR Loans |
Β Β | Β | 0.000% | Β | Β Β | Β | 0.250% | Β | Β Β | Β | 0.500% | Β | Β Β | Β | 0.750% | Β | Β Β | Β | 1.000% | Β |
Eurodollar Loans |
Β Β | Β | 1.500% | Β | Β Β | Β | 1.750% | Β | Β Β | Β | 2.000% | Β | Β Β | Β | 2.250% | Β | Β Β | Β | 2.500% | Β |
Commitment Fee Rate |
Β Β | Β | 0.375% | Β | Β Β | Β | 0.375% | Β | Β Β | Β | 0.500% | Β | Β Β | Β | 0.500% | Β | Β Β | Β | 0.500% | Β |
Each change in the Applicable Margin shall apply during the period commencing on the effective date of such change and ending on the date immediately preceding the effective date of the next such change, provided, however, that if at any time the Borrower fails to deliver a Reserve Report pursuant toΒ SectionΒ 8.12(a), then from the time of such failure until the time that the Borrower delivers such Reserve Report to the Administrative Agent, the βApplicable Marginβ means the rate per annum set forth on the grid when the Total Commitments Utilization Percentage is at its highest level).
βApplicable Percentageβ means, with respect to any Lender, the percentage of the Aggregate Maximum Credit Amounts represented by such Lenderβs Maximum Credit Amount as such percentage is set forth on AnnexΒ I; provided that in the case ofΒ SectionΒ 2.08(k) when a Defaulting Lender shall exist, βApplicable Percentageβ as used in suchΒ SectionΒ 2.08(k) shall mean the percentage of the Aggregate Maximum Credit Amounts (disregarding any Defaulting Lenderβs Maximum Credit Amounts) represented by such Lenderβs Maximum Credit Amount.
βApproved Counterpartyβ shall mean any Person who, with respect to a Swap Agreement, is (a)Β a Secured Swap Party, or (b)Β any other Person whose issuer rating or long term senior unsecured debt ratings at the time of entry into such Swap Agreement is A-/A3 by S&P or Xxxxxβx (or their equivalent) or higher (or whose obligations under the applicable Swap Agreement are guaranteed by an Affiliate of such Person meeting such rating standards).
βApproved Fundβ means any Person (other than a natural person) that is engaged in making, purchasing, holding or investing in bank loans and similar extensions of credit in the ordinary course of its business and that is administered or managed by (a)Β a Lender, (b)Β an Affiliate of a Lender or (c)Β an entity or an Affiliate of an entity that administers or manages a Lender.
βApproved Petroleum Engineersβ means (a)Β Netherland, XxxxxxΒ & Associates, Inc., (b)Β Xxxxx Xxxxx Company Petroleum Consultants, L.P., (c)Β X. X. Xxx XxxxxxΒ & Co., (d)Β XxXxxxxx and XxxXxxxxxxx and (e)Β and any other independent petroleum engineers reasonably acceptable to the Administrative Agent.
Β
3
βArrangerβ means Xxxxx Fargo Securities, LLC, in its capacities as the sole lead arranger and sole bookrunner hereunder.
βASCβ means the Financial Accounting Standards Board Accounting Standards Codification, as in effect from time to time.
βAssignment and Assumptionβ means an assignment and assumption entered into by a Lender and an assignee (with the consent of any party whose consent is required byΒ SectionΒ 12.04(b)), and accepted by the Administrative Agent, in the form of ExhibitΒ F or any other form approved by the Administrative Agent.
βAvailability Periodβ means the period from and including the Effective Date to but excluding the Termination Date.
βBail-In Actionβ means the exercise of any Write-Down and Conversion Powers by the applicable EEA Resolution Authority in respect of any liability of an EEA Financial Institution.
βBail-In Legislationβ means, with respect to any EEA Member Country implementing ArticleΒ 55 of Directive 2014/59/EU of the European Parliament and of the Council of the European Union, the implementing law for such EEA Member Country from time to time which is described in the EU Bail-In Legislation Schedule.
βBank Productsβ means any of the following bank services: (a)Β commercial credit cards, (b)Β stored value cards, and (c)Β treasury management services (including, without limitation, controlled disbursement, automated clearinghouse transactions, return items, overdrafts and interstate depository network services).
βBank Products Providerβ means any Lender or Affiliate of a Lender that provides Bank Products to the Borrower or any Guarantor.
βBoardβ means the Board of Governors of the Federal Reserve System of the United States of America or any successor Governmental Authority.
βBorrowingβ means Loans of the same Type, made, converted or continued on the same date and, in the case of Eurodollar Loans, as to which a single Interest Period is in effect.
βBorrowing Baseβ means at any time an amount equal to the amount determined in accordance withΒ SectionΒ 2.07, as the same may be adjusted from time to time pursuant toΒ SectionΒ 8.13(c), SectionΒ 9.12(d), SectionΒ 9.12(f) or SectionΒ 9.12(g).
βBorrowing Base Deficiencyβ occurs if at any time the total Revolving Credit Exposures exceeds the Borrowing Base then in effect.
βBorrowing Base Valueβ means, with respect to any Oil and Gas Property of a Credit Party or any Swap Agreement in respect of commodities, the value the Administrative Agent attributed to such asset in connection with the most recent determination of the Borrowing Base as confirmed by Required Lenders.
Β
4
βBorrowing Requestβ means a request by the Borrower for a Borrowing in accordance withΒ SectionΒ 2.03.
βBusiness Dayβ means any day that is not a Saturday, Sunday or other day on which commercial banks in New York City or Houston, Texas are authorized or required by law to remain closed; and if such day relates to a Borrowing or continuation of, a payment or prepayment of principal of or interest on, or a conversion of or into, or the Interest Period for, a Eurodollar Loan or a notice by the Borrower with respect to any such Borrowing or continuation, payment, prepayment, conversion or Interest Period, any day which is also a day on which dealings in dollar deposits are carried out in the London interbank market.
βCall Spread Counterpartiesβ means one or more financial institutions selected by the Parent to sell the options contemplated by the Permitted Bond Hedge Transaction(s) and purchase the warrants contemplated by the Permitted Warrant Transaction(s).
βCapital Expendituresβ of a Person means expenditures and costs that are capitalized on the balance sheet of such Person in accordance with GAAP.
βCapital Leasesβ means, in respect of any Person, all leases which shall have been, or should have been, in accordance with GAAP, recorded as capital leases on the balance sheet of the Person liable (whether contingent or otherwise) for the payment of rent thereunder.
βCasualty Eventβ means any loss, casualty or other insured damage to, or any nationalization, taking under power of eminent domain or by condemnation or similar proceeding of, any Property of the Borrower or any of its Subsidiaries having a fair market value in excess of $2,500,000.
βChange in Controlβ means (a)Β the acquisition of ownership, directly or indirectly, beneficially or of record, by any Person or group (within the meaning of the Securities Exchange Act of 1934 and the rules of the SEC thereunder as in effect on the date hereof), of Equity Interests representing more than 35% of the aggregate ordinary voting power represented by the issued and outstanding Equity Interests of the Parent, (b)Β occupation of a majority of the seats (other than vacant seats) on the board of directors of the Parent by Persons who were not (i)Β initial members of the board of directors of Parent, (ii)Β nominated (or whose nomination was approved) by the board of directors of the Parent or (iii)Β appointed (or whose appointment was approved) by directors so nominated (or whose nomination was so approved), (c)Β the Parent fails to own directly or indirectly all of the Equity Interests of the Borrower, (d)Β the General Partner shall cease to be the sole general partner of the Midstream MLP, with substantially the same powers to manage the Midstream MLP as are granted to the General Partner under the Midstream MLP Partnership Agreement on the Ninth Amendment Effective Date, (e)Β the failure of the Parent, OP LLC and the Borrower to own directly or indirectly (i)Β all of the Equity Interests of the General Partner other than the ClassΒ B Units and (ii)Β Equity Interests representing at least 85% of total number of Units (as defined in the General Partner LLC Agreement) issued by the General Partner, (f)Β the failure of the Parent to have direct or indirect sole Control of the General Partner or (g)Β the occurrence of a βchange of controlβ under any Senior Notes Indenture.
Β
5
βChange in Lawβ means (a)Β the adoption of any law, rule or regulation after the date of this Agreement, (b)Β any change in any law, rule or regulation or in the interpretation, implementation or application thereof by any Governmental Authority after the date of this Agreement or (c)Β compliance by any Lender or the Issuing Bank (or, for purposes ofΒ SectionΒ 5.01(b)), by any lending office of such Lender or by such Lenderβs or the Issuing Bankβs holding company, if any) with any request, guideline or directive (whether or not having the force of law) of any Governmental Authority made or issued after the date of this Agreement; provided, however, for the purposes of this Agreement, each of the Xxxx-Xxxxx Xxxx Street Reform and Consumer Protection Act and all requests, guidelines or directives in connection therewith or promulgated by the Bank for International Settlements, the Basel Committee on Banking Supervision or the United States or foreign regulatory authorities, in each case, pursuant to BaselΒ III, shall be deemed to be a change in law regardless of when such law, rule or regulation goes into effect or is adopted.
βClassΒ B Unitβ has the meaning set forth in the General Partner LLC Agreement, as in effect on the Ninth Amendment Effective Date.
βCodeβ means the Internal Revenue Code of 1986, as amended from time to time, and any successor statute.
βCollateralβ means all Property which is subject to a Lien under one or more Security Instruments.
βCommitmentβ means, with respect to each Lender, the commitment of such Lender to make Loans and to acquire participations in Letters of Credit hereunder, expressed as an amount representing the maximum aggregate amount of such Lenderβs Revolving Credit Exposure hereunder, as such commitment may be (a)Β modified from time to time pursuant toΒ SectionΒ 2.06 and (b)Β modified from time to time pursuant to assignments by or to such Lender pursuant toΒ SectionΒ 12.04(b). The amount representing each Lenderβs Commitment shall at any time be the least of (i)Β such Lenderβs Maximum Credit Amount, (ii)Β such Lenderβs Applicable Percentage of the then effective Borrowing Base and (iii)Β such Lenderβs Elected Commitment.
βCommitment Fee Rateβ has the meaning set forth in the definition of βApplicable Marginβ.
βCommodity Exchange Actβ means the Commodity Exchange Act (7Β U.S.C. § 1 et seq.), as amended from time to time, and any successor statute.
βConsolidated Net Incomeβ means with respect to the Parent, the Consolidated Subsidiaries and the DevCos, for any period, the aggregate of the net income (or loss) of the Parent, the Consolidated Subsidiaries and the DevCos, without duplication, after allowances for taxes for such period determined on a consolidated basis in accordance with GAAP; provided that there shall be excluded from such net income (to the extent otherwise included therein) the following: (a)Β the net income of the Midstream MLP, its subsidiaries or any other Person in which the Parent, any Consolidated Subsidiary or a DevCo has an interest (which interest, in the
Β
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case of a Person other than the Midstream MLP and its subsidiaries, does not cause the net income of such other Person to be consolidated with the net income of the Parent, the Consolidated Subsidiaries and the DevCos in accordance with GAAP), except to the extent of the amount of dividends or distributions actually paid in cash during such period by the Midstream MLP, its subsidiaries or such other Person to any Credit Party; (b)Β the net income (but not loss) during such period of any Consolidated Subsidiary or any DevCo to the extent that the declaration or payment of dividends or similar distributions or transfers or loans by that Consolidated Subsidiary or DevCo is not at the time permitted by operation of the terms of its charter or any agreement, instrument or Governmental Requirement applicable to such Consolidated Subsidiary or is otherwise restricted or prohibited, in each case determined in accordance with GAAP; (c)Β the net income (or loss) of any Person acquired in a pooling-of-interests transaction for any period prior to the date of such transaction; (d)Β any extraordinary non-cash gains or losses during such period and (e)Β any gains or losses attributable to writeups or writedowns of assets, including ceiling test writedowns; provided that if the Parent or any Consolidated Subsidiary shall acquire or dispose of any Property during such period (including dispositions in connection with the Midstream MLP Contribution), then Consolidated Net Income shall be calculated after giving pro forma effect to such acquisition or disposition, as if such acquisition or disposition had occurred on the first day of such period; provided further that the aggregate net income (or loss) attributable to each DevCo included in the determination of Consolidated Net Income for any period shall be limited to the lesser of (x)Β such DevCoβs net income (or loss) for the applicable period multiplied by DevCo Ownership Percentage in such DevCo and (y)Β the actual amount of cash distributions made by such DevCo in the applicable period to the Credit Parties. For the avoidance of doubt, the aggregate net income (or loss) attributable to the Midstream MLP and its subsidiaries (other than any DevCo) shall be included in the determination of Consolidated Net Income for any period in an amount equal to the amount of cash distributions received by the Credit Parties from the Midstream MLP or its subsidiaries (other than any DevCo) during such period.
βConsolidated Subsidiariesβ means each Subsidiary of the Parent (whether now existing or hereafter created or acquired) the financial statements of which shall be (or should have been) consolidated with the financial statements of the Parent in accordance with GAAP. For the avoidance of doubt, in no event shall the Midstream MLP, any of subsidiaries of the Midstream MLP or any DevCo be a Consolidated Subsidiary for purposes of the Loan Documents.
βControlβ means the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of a Person, whether through the ability to exercise voting power, by contract or otherwise. For the purposes of this definition, and without limiting the generality of the foregoing, any Person that owns directly or indirectly 10% or more of the Equity Interests having ordinary voting power for the election of the directors or other governing body of a Person (other than as a limited partner of such other Person) will be deemed to βcontrolβ such other Person. βControllingβ and βControlledβ have meanings correlative thereto.
βConvertible Notesβ means any unsecured senior or senior subordinated Debt securities (whether registered or privately placed) convertible into Equity Interests of the Parent (other than Disqualified Capital Stock) incurred pursuant to a Convertible Notes Indenture.
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βConvertible Notes Indentureβ means any indenture among the Parent, as issuer, the subsidiary guarantors party thereto and the trustee named therein, pursuant to which the Convertibles Notes are issued, as the same may be amended or supplemented in accordance withΒ SectionΒ 9.04(b).
βCredit Partiesβ means, collectively, the Borrower and each Guarantor, and βCredit Partyβ means any one of the foregoing. For the avoidance of doubt, no DevCo shall be a Credit Party for purposes of the Loan Documents.
βCurrent Productionβ means the lesser of (a)Β the prior monthβs production of each of crude oil and natural gas, calculated separately, of the Borrower and its Subsidiaries and (b)Β the forecasted production, as reasonably determined by the Borrower, of each of crude oil and natural gas, calculated separately, of the Borrower and its Subsidiaries for each month for the period ending no sooner than the latest month for which volumes are hedged under Swap Agreements.
βDebtβ means, for any Person, the sum of the following (without duplication): (a)Β all obligations of such Person for borrowed money or evidenced by bonds, bankersβ acceptances, debentures, notes or other similar instruments; (b)Β all obligations of such Person (whether contingent or otherwise) in respect of letters of credit, surety or other bonds and similar instruments; (c)Β all accounts payable and all accrued expenses, liabilities or other obligations of such Person to pay the deferred purchase price of Property or services; (d)Β all obligations under Capital Leases; (e)Β all obligations under Synthetic Leases; (f)Β all Debt (as defined in the other clauses of this definition) of others secured by (or for which the holder of such Debt has an existing right, contingent or otherwise, to be secured by) a Lien on any Property of such Person, whether or not such Debt is assumed by such Person; (g)Β all Debt (as defined in the other clauses of this definition) of others guaranteed by such Person or in which such Person otherwise assures a creditor against loss of the Debt (howsoever such assurance shall be made) to the extent of the lesser of the amount of such Debt and the maximum stated amount of such guarantee or assurance against loss; (h)Β all obligations or undertakings of such Person to maintain or cause to be maintained the financial position or covenants of others to purchase the Debt or Property of others; (i)Β obligations to deliver commodities, goods or services, including, without limitation, Hydrocarbons, in consideration of one or more advance payments, other than gas balancing arrangements in the ordinary course of business; (j)Β obligations to pay for goods or services even if such goods or services are not actually received or utilized by such Person (other than firm transportation or storage, or drilling contracts); (k)Β any Debt of a partnership for which such Person is liable either by agreement, by operation of law or by a Governmental Requirement but only to the extent of such liability; (l)Β Disqualified Capital Stock; and (m)Β the undischarged balance of any production payment created by such Person or for the creation of which such Person directly or indirectly received payment. The Debt of any Person shall include all obligations of such Person of the character described above to the extent such Person remains legally liable in respect thereof notwithstanding that any such obligation is not included as a liability of such Person under GAAP.
βDefaultβ means any event or condition which constitutes an Event of Default or which upon notice, lapse of time or both would, unless cured or waived, become an Event of Default.
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βDefaulting Lenderβ means any Lender that (a)Β has failed, within three (3)Β Business Days of the date required to be funded or paid, to (i)Β fund any portion of its Loans, (ii)Β fund any portion of its participations in Letters of Credit or (iii)Β pay over to any Credit Party any other amount required to be paid by it hereunder; (b)Β has notified the Borrower or any Credit Party in writing, or has made a public statement, to the effect that it does not intend or expect to comply with any of its funding obligations under this Agreement or generally under other agreements in which it commits to extend credit; (c)Β has failed, within three (3)Β Business Days after request by the Administrative Agent or a Credit Party, acting in good faith, to provide a certification in writing from an authorized officer of such Lender that it will comply with its obligations to fund prospective Loans and participations in then outstanding Letters of Credit under this Agreement; provided that such Lender shall cease to be a Defaulting Lender pursuant to this clauseΒ (c)Β upon such Credit Partyβs receipt of such certification in form and substance satisfactory to it and the Administrative Agent; or (d)Β has (or whose bank holding company has) been placed into receivership, conservatorship or bankruptcy or has become subject to a Bail-In Action; provided that (x)Β a Lender shall not become a Defaulting Lender solely as a result of the acquisition or maintenance of an ownership interest in such Lender or Person controlling such Lender or the exercise of control over a Lender or Person controlling such Lender by a Governmental Authority or an instrumentality thereof and (y)Β the appointment of an administrator, provisional liquidator, conservator, receiver, trustee, custodian or other similar official by a supervisory authority or regulator with respect to a Lender or Person under the Dutch Financial Supervision Act 2007 (as amended from time to time and including any successor legislation) shall not be deemed an event described in clauseΒ (d)Β hereof, so long as, in the case of each of clauses (x)Β and (y), such ownership interest or such appointment, as applicable, does not result in or provide such Lender with immunity from the jurisdiction of courts within the United States or from the enforcement of judgments or writs of attachment on its assets or permit such Lender (or such governmental authority or instrumentality) to reject, repudiate, disavow or disaffirm any contracts or agreements made with such Lender.
βDevCoβ means Beartooth and Bobcat; provided that any such Person shall only constitute a DevCo so long as (a)Β the Parent and OP LLC directly or indirectly owns Equity Interests in such Person (other than any Equity Interests indirectly held by the Parent and OP LLC through the Midstream MLP and its subsidiaries) and (b)Β less than 100% of the Equity Interests in such Person are owned directly or indirectly by the Parent and OP LLC (excluding any Equity Interests held directly or indirectly by the Midstream MLP and its subsidiaries).
βDevCo Collateralβ means the Property of a DevCo subject to (or required to be subject to) the Liens and security interests created by any DevCo Mortgage executed by such DevCo.
βDevCo Guarantyβ means a limited guaranty agreement executed by each of the DevCos for which the only recourse is the Collateral subject to the DevCo Mortgage/s executed by the applicable DevCo.
βDevCo Mortgageβ means any mortgage or deed of trust executed by a DevCo in favor of the Administrative Agent for the benefit of the Secured Parties in order to secure the Indebtedness.
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βDevCo Ownership Percentageβ at any time of determination, with respect to any DevCo, means the aggregate percentage of Equity Interests in such DevCo owned at such time by the Credit Parties (excluding, for the avoidance of doubt, any Equity Interests held indirectly by the Credit Parties through the Midstream MLP or its subsidiaries).
βDisqualified Capital Stockβ means any Equity Interest that, by its terms (or by the terms of any security into which it is convertible or for which it is exchangeable) or upon the happening of any event, matures or is mandatorily redeemable for any consideration other than other Equity Interests (which would not constitute Disqualified Capital Stock), pursuant to a sinking fund obligation or otherwise, or is convertible or exchangeable for Debt or redeemable for any consideration other than other Equity Interests (which would not constitute Disqualified Capital Stock) at the option of the holder thereof, in whole or in part, on or prior to the date that is one year after the earlier of (a)Β the Maturity Date and (b)Β the date on which there are no Loans, LC Exposure or other obligations hereunder outstanding and all of the Commitments are terminated.
βdollarsβ or β$β refers to lawful money of the United States of America.
βDomestic Subsidiaryβ means any Subsidiary that is organized under the laws of the United States of America or any state thereof or the District of Columbia.
βDrop Down Dispositionβ means any disposition by (a)Β OMS of any Equity Interests in any DevCo owned by the OMS to OMP or its subsidiaries or (b)Β the Credit Parties of any Midstream Properties to OMP and its subsidiaries or to any DevCo.
βEBITDAXβ means, for any period, the sum of Consolidated Net Income for such period plus the following expenses or charges to the extent deducted from Consolidated Net Income in such period: interest, income taxes, depreciation, depletion, amortization, exploration expenses and other similar noncash charges, minus all noncash income added to Consolidated Net Income; provided that the EBITDAX attributable to the DevCos and cash distributions from the Midstream MLP and its subsidiaries to be included in EBITDAX for each trailing four fiscal quarter period shall be equal to (a)Β for the first two trailing four fiscal quarter periods ending on the last days of the first two fiscal quarters after the Ninth Amendment Effective Date, $112,000,000 for each such trailing four fiscal quarter period, (b)Β for the trailing four fiscal quarter period ending on the last day of the third fiscal quarter ending after the Ninth Amendment Effective Date, (i)Β the sum of $56,000,000 plus the actual EBITDAX attributable to the DevCos and to the Midstream MLP and its subsidiaries during the third fiscal quarter after the Ninth Amendment Effective Date multiplied (ii)Β by 4/3, (c) for the trailing four fiscal quarter period ending on the last day of the fourth fiscal quarter ending after the Ninth Amendment Effective Date, the sum of $56,000,000 plus the actual EBITDAX attributable to the DevCos and to the Midstream MLP and its subsidiaries during the final two fiscal quarters of such trailing four fiscal quarter period, (d)Β for the trailing four fiscal quarter period ending on the last day of the fifth fiscal quarter ending after the Ninth Amendment Effective Date, the sum of $28,000,000 plus the actual EBITDAX attributable to the DevCos and to the Midstream MLP and its subsidiaries for the final three fiscal quarters of such trailing four fiscal quarter period and (e)Β for each fiscal quarter thereafter, the actual EBITDAX attributable to the DevCos and to the Midstream MLP and its subsidiaries for the four fiscal quarter period ending on such date.
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βEEA Financial Institutionβ means (a)Β any credit institution or investment firm established in any EEA Member Country which is subject to the supervision of an EEA Resolution Authority, (b)Β any entity established in an EEA Member Country which is a parent of an institution described in clauseΒ (a)Β of this definition, or (c)Β any financial institution established in an EEA Member Country which is a subsidiary of an institution described in clausesΒ (a) or (b)Β of this definition and is subject to consolidated supervision with its parent.
βEEA Member Countryβ means any of the member states of the European Union, Iceland, Liechtenstein, and Norway.
βEEA Resolution Authorityβ means any public administrative authority or any person entrusted with public administrative authority of any EEA Member Country (including any delegee) having responsibility for the resolution of any EEA Financial Institution.
βEffective Dateβ means the date on which the conditions specified inΒ SectionΒ 6.01 are satisfied (or waived in accordance withΒ SectionΒ 12.02).
βEighth Amendmentβ means that certain Eighth Amendment to Second Amended and Restated Credit Agreement, dated as of AprilΒ 10, 2017, among the Borrower, the Guarantors, the Administrative Agent and the Lenders party thereto.
βElected Commitmentβ means, as to each Lender, the amount set forth opposite such Lenderβs name on AnnexΒ I under the caption βElected Commitmentβ, as the same may be increased, reduced or terminated from time to time in connection with an optional increase, reduction or termination of the Aggregate Elected Commitment Amounts pursuant toΒ SectionΒ 2.06(c).
βElected Commitment Increase Certificateβ has the meaning assigned to such term inΒ SectionΒ 2.06(c)(ii)(F).
βEngineering Reportsβ has the meaning assigned such term inΒ SectionΒ 2.07(c)(i).
βEnvironmental Lawsβ means any and all Governmental Requirements pertaining in any way to health, safety the environment, the preservation or reclamation of natural resources, or the management, release or threatened release of any hazardous substance, in effect in any and all jurisdictions in which the Parent, the Borrower or any Subsidiary is conducting or at any time has conducted business, or where any Property of the Borrower or any Subsidiary is located, including without limitation, the Oil Pollution Act of 1990 (βOPAβ), as amended, the Clean Air Act, as amended, the Comprehensive Environmental, Response, Compensation, and Liability Act of 1980 (βCERCLAβ), as amended, the Federal Water Pollution Control Act, as amended, the Occupational Safety and Health Act of 1970, as amended, the Resource Conservation and Recovery Act of 1976 (βRCRAβ), as amended, the Safe Drinking Water Act, as amended, the Toxic Substances Control Act, as amended, the Superfund Amendments and Reauthorization Act of 1986, as amended, the Hazardous Materials Transportation Act, as amended, and other environmental conservation or protection Governmental Requirements. The term βoilβ shall have the meaning specified in OPA, the terms βhazardous substanceβ and βreleaseβ (or βthreatened releaseβ) have the meanings specified in CERCLA, the terms βsolid wasteβ and βdisposalβ (or βdisposedβ) have the meanings specified in RCRA and the term βoil and gas
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wasteβ shall have the meaning specified in SectionΒ 91.1011 of the Texas Natural Resources Code (βSectionΒ 91.1011β); provided, however, that (a)Β in the event either OPA, CERCLA, RCRA or SectionΒ 91.1011 is amended so as to broaden the meaning of any term defined thereby, such broader meaning shall apply subsequent to the effective date of such amendment and (b)Β to the extent the laws of the state or other jurisdiction in which any Property of the Borrower or any Subsidiary is located establish a meaning for βoil,β βhazardous substance,β βrelease,β βsolid waste,β βdisposalβ or βoil and gas wasteβ which is broader than that specified in either OPA, CERCLA, RCRA or SectionΒ 91.1011, such broader meaning shall apply.
βEnvironmental Permitβ means any permit, registration, license, approval, consent, exemption, variance, or other authorization required under or issued pursuant to applicable Environmental Laws.
βEquity Interestsβ means shares of capital stock, partnership interests, membership interests in a limited liability company, beneficial interests in a trust or other equity ownership interests in a Person, and any warrants, options or other rights entitling the holder thereof to purchase or acquire any such Equity Interest.
βERISAβ means the Employee Retirement Income Security Act of 1974, as amended, and any successor statute.
βERISA Affiliateβ means each trade or business (whether or not incorporated) which together with the Borrower or a Subsidiary would be deemed to be a βsingle employerβ within the meaning of sectionΒ 4001(b)(1)Β of ERISA or subsectionsΒ (b), (c), (m) or (o)Β of sectionΒ 414 of the Code.
βEU Bail-In Legislation Scheduleβ means the EU Bail-In Legislation ScheduleΒ published by the Loan Market Association (or any successor person), as in effect from time to time.
βEurodollarβ, when used in reference to any Loan or Borrowing, refers to whether such Loan, or the Loans comprising such Borrowing, are bearing interest at a rate determined by reference to the Adjusted LIBO Rate.
βEvent of Defaultβ has the meaning assigned such term inΒ SectionΒ 10.01.
βExcepted Liensβ means: (a)Β Liens for Taxes, assessments or other governmental charges or levies which are not delinquent or which are being contested in good faith by appropriate action and for which adequate reserves have been maintained in accordance with GAAP; (b)Β Liens in connection with workersβ compensation, unemployment insurance or other social security, old age pension or public liability obligations which are not delinquent or which are being contested in good faith by appropriate action and for which adequate reserves have been maintained in accordance with GAAP; (c)Β statutory landlordβs liens, operatorsβ, vendorsβ, carriersβ, warehousemenβs, repairmenβs, mechanicsβ, suppliersβ, workersβ, materialmenβs, construction or other like Liens arising by operation of law in the ordinary course of business or incident to the exploration, development, operation and maintenance of Oil and Gas Properties (or in the case of the DevCos, of the Midstream Properties) each of which is in respect of obligations that are not delinquent or which are being contested in good faith by appropriate action and for which adequate reserves have been maintained in accordance with GAAP;
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(d)Β contractual Liens which arise in the ordinary course of business under operating agreements, joint venture agreements, oil and gas partnership agreements, oil and gas leases, farm-out agreements, division orders, contracts for the sale, transportation or exchange of oil and natural gas, unitization and pooling declarations and agreements, area of mutual interest agreements, overriding royalty agreements, marketing agreements, processing agreements, net profits agreements, development agreements, gas balancing or deferred production agreements, injection, repressuring and recycling agreements, salt water or other disposal agreements, seismic or other geophysical permits or agreements, and other agreements which are usual and customary in the oil and gas business (or in the case of the DevCos, usual and customary in the midstream business) and are for claims which are not delinquent or which are being contested in good faith by appropriate action and for which adequate reserves have been maintained in accordance with GAAP, provided that any such Lien referred to in this clause does not materially impair the use of any material Property covered by such Lien for the purposes for which such Property is held by the Borrower or any Subsidiary or any DevCo or materially impair the value of such Property subject thereto; (e)Β Liens arising solely by virtue of any statutory or common law provision relating to bankerβs liens, rights of set-off or similar rights and remedies and burdening only deposit accounts or other funds maintained with a creditor depository institution, provided that no such deposit account is a dedicated cash collateral account or is subject to restrictions against access by the depositor in excess of those set forth by regulations promulgated by the Board and no such deposit account is intended by Borrower or any of its Subsidiaries or any DevCo to provide collateral to the depository institution; (f)Β easements, restrictions, servitudes, permits, conditions, covenants, exceptions or reservations in any Property of the Borrower or any Subsidiary or any DevCo for the purpose of roads, pipelines, transmission lines, transportation lines, distribution lines for the removal of gas, oil, coal or other minerals or timber, and other like purposes, or for the joint or common use of real estate, rights of way, facilities and equipment, that do not secure any monetary obligations and which in the aggregate do not materially impair the use of any material Property for the purposes of which such Property is held by the Borrower or any Subsidiary or materially impair the value of any material Property subject thereto; (g)Β Liens on cash or securities pledged to secure performance of tenders, surety and appeal bonds, government contracts, performance and return of money bonds, bids, trade contracts, leases, statutory obligations, regulatory obligations and other obligations of a like nature incurred in the ordinary course of business and (h)Β judgment and attachment Liens not giving rise to an Event of Default, provided that any appropriate legal proceedings which may have been duly initiated for the review of such judgment shall not have been finally terminated or the period within which such proceeding may be initiated shall not have expired and no action to enforce such Lien has been commenced; provided, further that (i)Β Liens described in clausesΒ (a)Β through (e)Β shall remain βExcepted Liensβ only for so long as no action to enforce such Lien has been commenced and no intention to subordinate the first priority Lien granted in favor of the Administrative Agent and the Lenders is to be hereby implied or expressed by the permitted existence of such Excepted Liens and (ii)Β the term βExcepted Liensβ shall not include any Lien securing Debt for borrowed money other than the Indebtedness.
βExcluded Swap Obligationβ means, with respect to any Credit Party or any DevCo individually determined on a Credit Party by Credit Party basis (or a DevCo by DevCo, as applicable), any Indebtedness in respect of any Swap Agreement if, and solely to the extent that, all or a portion of the guarantee of such Person of, or the grant by such Person of a security interest to secure, such Indebtedness in respect of any Swap Agreement (or any guarantee
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thereof) is or becomes illegal under the Commodity Exchange Act or any rule, regulation or order of the Commodity Futures Trading Commission (or the application or official interpretation of any thereof) by virtue of such Personβs failure for any reason to constitute an βeligible contract participantβ as defined in the Commodity Exchange Act at the time such guarantee or grant of a security interest becomes effective with respect to such related Indebtedness in respect of any Swap Agreement. If any Indebtedness in respect of any Swap Agreement arises under a master agreement governing more than one swap, such exclusion shall apply only to the portion of such Indebtedness in respect of any Swap Agreement that is attributable to swaps for which such guarantee or security interest is or becomes illegal.
βExcluded Taxesβ means, with respect to the Administrative Agent, any Lender, the Issuing Bank or any other recipient of any payment to be made by or on account of any obligation of the Borrower or any Guarantor hereunder or under any other Loan Document, (a)Β income or franchise taxes imposed on (or measured by) its net income by the United States of America or such other jurisdiction under the laws of which such recipient is organized or in which its principal office is located or, in the case of any Lender, in which its applicable lending office is located, (b)Β any branch profits taxes imposed by the United States of America or any similar tax imposed by any other jurisdiction in which the Borrower or any Guarantor is located, (c)Β in the case of a Foreign Lender (other than an assignee pursuant to a request by the Borrower underΒ SectionΒ 5.04(b)), any withholding tax that is imposed on amounts payable to such Foreign Lender at the time such Foreign Lender becomes a party to this Agreement (or designates a new lending office) or is attributable to such Foreign Lenderβs failure to comply withΒ SectionΒ 5.03(f), except to the extent that such Foreign Lender (or its assignor, if any) was entitled, at the time of designation of a new lending office (or assignment), to receive additional amounts with respect to such withholding tax pursuant toΒ SectionΒ 5.03(a) orΒ SectionΒ 5.03(c), and (d)Β any United States federal withholding taxes imposed by FATCA.
βFATCAβ means SectionsΒ 1471 through 1474 of the Code as of the date of this Agreement (or any amended or successor version that is substantively comparable and not materially more onerous to comply with), any current or future regulations or official interpretations thereof, and any agreements entered into pursuant to SectionΒ 1471(b) of the Code.
βFCPAβ means the Foreign Corrupt Practices Act of 1977, as amended.
βFederal Funds Effective Rateβ means, for any day, the weighted average (rounded upwards, if necessary, to the next 1/100 of 1%) of the rates on overnight Federal funds transactions with members of the Federal Reserve System arranged by Federal funds brokers, as published on the next succeeding Business Day by the Federal Reserve Bank of New York, or, if such rate is not so published for any day that is a Business Day, the average (rounded upwards, if necessary, to the next 1/100 of 1%) of the quotations for such day for such transactions received by the Administrative Agent from three Federal funds brokers of recognized standing selected by it; provided that in no event shall the Federal Funds Effective Rate be less than 0%.
βFERCβ means the Federal Energy Regulatory Commission or any of its successors.
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βFifth Amendmentβ means that certain Fifth Amendment to Second Amended and Restated Credit Agreement, dated as of FebruaryΒ 23, 2016, among the Borrower, the Guarantors, the Administrative Agent and the Lenders party thereto.
βFinancial Officerβ means, for any Person, any vice president, the chief financial officer, principal accounting officer, treasurer or controller of such Person. Unless otherwise specified, all references herein to a Financial Officer means a Financial Officer of the Borrower.
βFinancial Statementsβ means the financial statement or statements of the Parent and its Consolidated Subsidiaries referred to inΒ SectionΒ 7.04(a).
βFirst Amendmentβ means that certain First Amendment to Second Amended and Restated Credit Agreement, dated as of SeptemberΒ 3, 2013, among the Borrower, the Guarantors, the Administrative Agent and the Lenders party thereto.
βFlood Deliverablesβ means (a)Β a certificate of a Responsible Officer of the Borrower certifying as to a true, correct and complete list, as of the date of such certificate, of all βBuildingsβ (as defined by the applicable Flood Insurance Regulations) located on real property that is subject to Liens created by the Security Instruments, (b) a life of loan flood hazard determination with respect to all such Buildings, (c)Β if such real property is located in a special flood hazard area, evidence of flood insurance in such amounts as are acceptable to the Administrative Agent, and (d)Β such other certificates or notices reasonably required by the Administrative Agent to facilitate compliance with Governmental Requirements, each in form and substance reasonably satisfactory to the Administrative Agent.
βFlood Insurance Regulationsβ means (i)Β the National Flood Insurance Act of 1968 as now or hereafter in effect or any successor statute thereto, (b)Β the Flood Disaster Protection Act of 1973 as now or hereafter in effect or any successor statute thereto, (c)Β the National Flood Insurance Reform Act of 1994 (amending 42 USC Β§ 4001, et seq.), as the same may be amended or recodified from time to time, and (d)Β the Flood Insurance Reform Act of 2004 and any regulations promulgated thereunder.
βForeign Lenderβ means any Lender that is organized under the laws of a jurisdiction other than that in which the Borrower is located. For purposes of this definition, the United States of America, each State thereof and the District of Columbia shall be deemed to constitute a single jurisdiction.
βForeign Subsidiaryβ means any Subsidiary that is not a Domestic Subsidiary.
βFourth Amendmentβ means that certain Fourth Amendment to Second Amended and Restated Credit Agreement, dated as of NovemberΒ 13, 2015, among the Borrower, the Guarantors, the Administrative Agent and the Lenders party thereto.
βGAAPβ means generally accepted accounting principles in the United States of America as in effect from time to time subject to the terms and conditions set forth inΒ SectionΒ 1.05.
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βGathering Systemβ means the Midstream Properties of the Credit Parties and the DevCos, as applicable, comprised of any pipeline or gathering system owned or leased from time to time by any Credit Party or DevCo that is used in the business of such Credit Party or DevCo.
βGeneral Partnerβ means OMP GP LLC, a Delaware limited liability company.
βGeneral Partner LLC Agreementβ means that certain Amended and Restated Limited Liability Company Agreement of the General Partner, dated as of MayΒ 22, 2017, and as such agreement may be amended, amended and restated, supplemented or otherwise modified in compliance with SectionΒ 9.21.
βGovernmental Authorityβ means the government of the United States of America, any other nation or any political subdivision thereof, whether state or local, and any agency, authority, instrumentality, regulatory body, court, central bank or other entity exercising executive, legislative, judicial, taxing, regulatory or administrative powers or functions of or pertaining to government over the Parent, the Borrower, any Subsidiary, any of their Properties, any Agent, the Issuing Bank or any Lender.
βGovernmental Requirementβ means any law, statute, code, ordinance, order, determination, rule, regulation, judgment, decree, injunction, franchise, permit, certificate, license, rule of common law, authorization or other directive or requirement, whether now or hereinafter in effect, including, without limitation, Environmental Laws, energy regulations and occupational, safety and health standards or controls, of any Governmental Authority.
βGuarantorsβ means:
Β
Β | (a) | the Parent; |
Β
Β | (b) | OP LLC; |
Β
Β | (c) | Oasis Petroleum Marketing LLC, a Delaware limited liability company; |
Β
Β | (d) | Oasis Well Services LLC, a Delaware limited liability company; |
Β
Β | (e) | Oasis Midstream Services LLC (βOMSβ); |
Β
Β | (f) | OMS Holdings LLC; |
Β
Β | (g) | the General Partner; and |
Β
Β | (h) | each other Person that guarantees the Indebtedness pursuant to SectionΒ 8.14(b); |
provided that, for the avoidance of doubt, no DevCo shall be a Guarantor for purposes of the Loan Documents.
βGuaranty and Security Agreementβ means the Second Amended and Restated Guaranty and Security Agreement executed by the Credit Parties in substantially the form of ExhibitΒ E-2 pursuant to which the Credit Parties (a)Β unconditionally guaranty on a joint and several basis, payment of the Indebtedness, and (b)Β grant Liens and a security interest on the Credit Partiesβ personal property constituting βcollateralβ as defined therein in favor of the Administrative Agent for the benefit of the Secured Parties to secure the Indebtedness, as the same may be amended, modified or supplemented from time to time.
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βHazardous Materialβ means any substance regulated or as to which liability might arise under any applicable Environmental Law and including, without limitation: (a)Β any chemical, compound, material, product, byproduct, substance or waste defined as or included in the definition or meaning of βhazardous substance,β βhazardous material,β βhazardous waste,β βsolid waste,β βtoxic waste,β βextremely hazardous substance,β βtoxic substance,β βcontaminant,β βpollutant,β or words of similar meaning or import found in any applicable Environmental Law; (b)Β Hydrocarbons, petroleum products, petroleum substances, natural gas, oil, oil and gas waste, crude oil, and any components, fractions, or derivatives thereof; and (c)Β radioactive materials, explosives, asbestos or asbestos containing materials, polychlorinated biphenyls, radon, infectious or medical wastes.
βHighest Lawful Rateβ means, with respect to each Lender, the maximum nonusurious interest rate, if any, that at any time or from time to time may be contracted for, taken, reserved, charged or received on the Notes or on other Indebtedness under laws applicable to such Lender which are presently in effect or, to the extent allowed by law, under such applicable laws which may hereafter be in effect and which allow a higher maximum nonusurious interest rate than applicable laws allow as of the date hereof.
βHydrocarbon Interestsβ means all rights, titles, interests and estates now or hereafter acquired in and to oil and gas leases, oil, gas and mineral leases, or other liquid or gaseous hydrocarbon leases, mineral fee interests, overriding royalty and royalty interests, net profit interests and production payment interests, including any reserved or residual interests therein or thereto, of whatever nature.
βHydrocarbonsβ means oil, gas, casinghead gas, drip gasoline, natural gasoline, condensate, distillate, liquid hydrocarbons, gaseous hydrocarbons and all products refined or separated therefrom.
βIndebtednessβ means, without duplication, any and all amounts and obligations of every nature owing or to be owing by the Borrower, any Subsidiary, any Guarantor or any DevCo (whether direct or indirect (including those acquired by assumption), absolute or contingent, due or to become due, now existing or hereafter arising): (a)Β to the Administrative Agent, the Issuing Bank or any Lender under any Loan Document; (b)Β to any Secured Swap Party under any Secured Swap Agreement; (c)Β to any Bank Products Provider in respect of Bank Products; and (d)Β all renewals, extensions and/or rearrangements of any of the above; provided that solely with respect to any Guarantor or DevCo that is not an βeligible contract participantβ under the Commodity Exchange Act or any regulations promulgated thereunder, Excluded Swap Obligations of such Guarantor or such DevCo shall in any event be excluded from βIndebtednessβ owing by such Guarantor.
βIndemnified Taxesβ means Taxes other than Excluded Taxes.
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βIndustry Competitorβ means any Person (other than Borrower, any Guarantor or any of their Affiliates or Subsidiaries) that is (or one or more of whose Affiliates are) actively engaged as one of its principal businesses in lease acquisitions, exploration and production operations or development of oil and gas properties (including the drilling and completion of producing xxxxx).
βInitial Reserve Reportβ means the report of DeGoyler XxxXxxxxxxx dated as of FebruaryΒ 1, 2013 with respect to certain Oil and Gas Properties of the Borrower and its Subsidiaries as of DecemberΒ 31, 2012.
βIntercreditor Agreementβ means (a)Β the Intercreditor Agreement among the DevCos, the Administrative Agent, Xxxxx Fargo Bank, N.A. (or any successor administrative agent), as administrative agent under the OMP Credit Facility, and the other parties thereto, which provides that, as among the parties thereto, the Liens on the DevCo Collateral will be of equal priority to the Permitted OMP Credit Facility Liens on such DevCo Collateral and that any proceeds of such DevCo Collateral received by any secured party following any event of default or any enforcement action shall be allocated among the Secured Parties, on one hand, and the secured parties with respect to obligations owing under the OMP Credit Facility, on the other hand, in accordance with the respective direct ownership percentages of Equity Interests in the applicable DevCo of the obligors under such credit facilities (for example, and for the avoidance of doubt, the percentage allocation of such proceeds to the Secured Parties with respect to any DevCo Collateral shall equal the DevCo Ownership Percentage with respect to such DevCo at the time such event of default or enforcement action occurs) and (b)Β if the OMP Credit Facility is refinanced or replaced in accordance with the terms of the Intercreditor Agreement, any successor intercreditor agreement entered into in connection therewith, in each case as the same may be amended, modified, supplemented or restated from time to time.
βInterest Election Requestβ means a request by the Borrower to convert or continue a Borrowing in accordance withΒ SectionΒ 2.04.
βInterest Expenseβ means, for any period, the sum (determined without duplication) of the aggregate gross interest expense of the Parent and the Consolidated Subsidiaries for such period, (1)Β including (a)Β interest expense under GAAP, (b)Β capitalized interest, and (c)Β the portion of any payments or accruals under Capital Leases allocable to interest expense, plus the portion of any payments or accruals under Synthetic Leases allocable to interest expense whether or not the same constitutes interest expense under GAAP, but (2)Β excluding the amortization of debt discount and fees and expenses related to the issuance of Debt, Capital Leases, Synthetic Leases, the Senior Notes or the Indebtedness.
βInterest Payment Dateβ means (a)Β with respect to any ABR Loan, the last day of each March, June, September and December and (b)Β with respect to any Eurodollar Loan, the last day of the Interest Period applicable to the Borrowing of which such Loan is a part and, in the case of a Eurodollar Borrowing with an Interest Period of more than three monthsβ duration, each day prior to the last day of such Interest Period that occurs at intervals of three monthsβ duration after the first day of such Interest Period.
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βInterest Periodβ means with respect to any Eurodollar Borrowing, the period commencing on the date of such Borrowing and ending on the numerically corresponding day in the calendar month that is one, two, three or six months (or, with the consent of each Lender, nine or twelve months) thereafter, as the Borrower may elect; provided, that (a)Β if any Interest Period would end on a day other than a Business Day, such Interest Period shall be extended to the next succeeding Business Day unless such next succeeding Business Day would fall in the next calendar month, in which case such Interest Period shall end on the next preceding Business Day and (b)Β any Interest Period pertaining to a Eurodollar Borrowing that commences on the last Business Day of a calendar month (or on a day for which there is no numerically corresponding day in the last calendar month of such Interest Period) shall end on the last Business Day of the last calendar month of such Interest Period. For purposes hereof, the date of a Borrowing initially shall be the date on which such Borrowing is made and thereafter shall be the effective date of the most recent conversion or continuation of such Borrowing.
βInterim Redeterminationβ has the meaning assigned such term inΒ SectionΒ 2.07(b).
βInterim Redetermination Dateβ means the date on which a Borrowing Base that has been redetermined pursuant to an Interim Redetermination becomes effective as provided inΒ SectionΒ 2.07(d).
βInvestmentβ means, for any Person: (a)Β the acquisition (whether for cash, Property, services or securities or otherwise) of Equity Interests of any other Person or any agreement to make any such acquisition (including, without limitation, any βshort saleβ or any sale of any securities at a time when such securities are not owned by the Person entering into such short sale); (b)Β the making of any deposit with, or advance, loan or capital contribution to, the assumption of Debt of, the purchase or other acquisition of any other Debt of or equity participation or interest in, or other extension of credit to, any other Person (including the purchase of Property from another Person subject to an understanding or agreement, contingent or otherwise, to resell such Property to such Person, but excluding any such advance, loan or extension of credit having a term not exceeding ninety (90)Β days representing the purchase price of inventory, material, equipment or supplies sold by such Person in the ordinary course of business); (c)Β the purchase or acquisition (in one or a series of transactions) of Property of another Person that constitutes a business unit or (d)Β the entering into of any guarantee of, or other contingent obligation (including the deposit of any Equity Interests to be sold) with respect to, Debt or other liability of any other Person and (without duplication) any amount committed to be advanced, lent or extended to such Person; provided that in no event shall any Permitted Bond Hedge Transactions or any Permitted Warrant Transaction be considered an βInvestmentβ for purposes of this Agreement.
βIssuing Bankβ means Xxxxx Fargo Bank, N.A., in its capacity as the issuer of Letters of Credit hereunder, and its successors in such capacity as provided inΒ SectionΒ 2.08(i). The Issuing Bank may, in its discretion, arrange for one or more Letters of Credit to be issued by Affiliates of the Issuing Bank, in which case the term βIssuing Bankβ shall include any such Affiliate with respect to Letters of Credit issued by such Affiliate.
βLC Commitmentβ at any time means Fifty Million Dollars ($50,000,000.00).
βLC Disbursementβ means a payment made by the Issuing Bank pursuant to a Letter of Credit.
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βLC Exposureβ means, at any time, the sum of (a)Β the aggregate undrawn amount of all outstanding Letters of Credit at such time plus (b)Β the aggregate amount of all LC Disbursements that have not yet been reimbursed by or on behalf of the Borrower at such time. The LC Exposure of any Lender at any time shall be its Applicable Percentage of the total LC Exposure at such time.
βLendersβ means the Persons listed on AnnexΒ I and any Person that shall have become a party hereto pursuant to an Assignment and Assumption, other than any such Person that ceases to be a party hereto pursuant to an Assignment and Assumption, and any Person that shall have become a party hereto as an Additional Lender pursuant toΒ SectionΒ 2.06(c).
βLetter of Creditβ means any letter of credit issued pursuant to this Agreement.
βLetter of Credit Agreementsβ means all letter of credit applications and other agreements (including any amendments, modifications or supplements thereto) submitted by the Borrower, or entered into by the Borrower, with the Issuing Bank relating to any Letter of Credit.
βLIBO Rateβ means, with respect to any Eurodollar Borrowing for any Interest Period, the greater of (i) 0% and (ii)Β the rate appearing on Reuters Screen LIBOR01 Page (or on any successor or substitute page of such service, or any successor to or substitute for such service, providing rate quotations comparable to those currently provided on such page of such service, as determined by the Administrative Agent from time to time for purposes of providing quotations of interest rates applicable to dollar deposits in the London interbank market) at approximately 11:00 a.m., London time, two Business Days prior to the commencement of such Interest Period, as the rate for dollar deposits with a maturity comparable to such Interest Period. In the event that such rate is not available at such time for any reason, then the βLIBO Rateβ with respect to such Eurodollar Borrowing for such Interest Period shall be the rate (rounded upwards, if necessary, to the next 1/100 of 1%) at which dollar deposits of an amount comparable to such Eurodollar Borrowing and for a maturity comparable to such Interest Period are offered by the principal London office of the Administrative Agent in immediately available funds in the London interbank market at approximately 11:00 a.m., London time, two Business Days prior to the commencement of such Interest Period.
βLienβ means any interest in Property securing an obligation owed to, or a claim by, a Person other than the owner of the Property, whether such interest is based on the common law, statute or contract, and whether such obligation or claim is fixed or contingent, and including but not limited to (a)Β the lien or security interest arising from a mortgage, encumbrance, pledge, security agreement, conditional sale or trust receipt or a lease, consignment or bailment for security purposes or (b)Β production payments and the like payable out of Oil and Gas Properties. The term βLienβ shall include easements, restrictions, servitudes, permits, conditions, covenants, exceptions or reservations. For the purposes of this Agreement, the Parent, OP LLC, the Borrower, the Subsidiaries and the DevCos shall be deemed to be the owner of any Property which it has acquired or holds subject to a conditional sale agreement, or leases under a financing lease or other arrangement pursuant to which title to the Property has been retained by or vested in some other Person in a transaction intended to create a financing.
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βLiquidateβ means, with respect to any Swap Agreement, the sale, assignment, novation, unwind or termination of all or any part of such Swap Agreement; provided that for purposes of this definition, a Swap Agreement shall not be deemed to have been Liquidated if, (a)Β such Swap Agreement is novated from the existing counterparty to an Approved Counterparty, with the Borrower or another Credit Party being the βremaining partyβ for purposes of such novation, or (b)Β upon its termination, it is replaced, in a substantially contemporaneous transaction, with one or more Swap Agreements with approximately the same xxxx-to-market value and without cash payments to the Borrower or any other Credit Party in connection therewith. The terms βLiquidatedβ and βLiquidationβ have correlative meanings thereto.
βLoan Documentsβ means this Agreement, the Intercreditor Agreement, the Notes, the Letter of Credit Agreements, the Letters of Credit, the Security Instruments and each DevCo Guaranty Agreement.
βLoansβ means the loans made by the Lenders to the Borrower pursuant to this Agreement.
βMajority Lendersβ means, at any time while no Loans or LC Exposure is outstanding, Lenders having more than fifty percent (50%) of the Aggregate Maximum Credit Amounts; and at any time while any Loans or LC Exposure is outstanding, Lenders holding more than fifty percent (50%) of the outstanding aggregate principal amount of the Loans and participation interests in Letters of Credit (without regard to any sale by a Lender of a participation in any Loan underΒ SectionΒ 12.04(c)); provided that the Maximum Credit Amounts and the principal amount of the Loans and participation interests in Letters of Credit of the Defaulting Lenders (if any) shall be excluded from the determination of Majority Lenders.
βMaterial Adverse Effectβ means a material adverse change in, or material adverse effect on (a)Β the business, operations, Property or condition (financial or otherwise) of the Credit Parties, taken as a whole, (b)Β the ability of the Credit Parties to perform any of their obligations under any Loan Document, (c)Β the validity or enforceability of any Loan Document or (d)Β the rights and remedies of or benefits available to the Administrative Agent, any other Agent, the Issuing Bank or any Lender under any Loan Document.
βMaterial Indebtednessβ means Debt (other than the Loans and Letters of Credit), or obligations in respect of one or more Swap Agreements, of any one or more of the Parent, OP LLC, the Borrower, the Subsidiaries and the DevCos in an aggregate principal amount exceeding $10,000,000. For purposes of determining Material Indebtedness, the βprincipal amountβ of the obligations of the Parent, OP LLC, the Borrower, any Subsidiary or any DevCo in respect of any Swap Agreement at any time shall be the Swap Termination Value owed by the Parent, OP LLC, the Borrower, the Subsidiaries and the DevCos, as applicable.
βMaterial Subsidiaryβ means, as of any date, any Domestic Subsidiary of Parent, OP LLC or the Borrower that, together with its subsidiaries, owns Property having a fair market value of $5,000,000 or more; provided that if the aggregate fair market value of all Property of all Domestic Subsidiaries that are not Guarantors exceeds $10,000,000, then Parent, OP LLC and the Borrower shall promptly designate Domestic Subsidiaries that are not then Guarantors as Material Subsidiaries (and cause such designated Material Subsidiaries to comply withΒ SectionΒ 8.14(b)) to the extent necessary so that the aggregate fair market value of all Property owned by Domestic Subsidiaries that are not then Guarantors is less than $10,000,000.
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βMaturity Dateβ means the date that is the earlier of (i)Β AprilΒ 13, 2020 (the βScheduled Maturity Dateβ) and (ii)Β ninety (90)Β days prior to the maturity date of the 2019 Notes to the extent that the 2019 Notes are not repurchased, redeemed or refinanced to have a maturity date at least ninety (90)Β days after the Scheduled Maturity Date.
βMaximum Credit Amountβ means, as to each Lender, the amount set forth opposite such Lenderβs name on AnnexΒ I under the caption βMaximum Credit Amountsβ, as the same may be (a)Β reduced or terminated from time to time in connection with a reduction or termination of the Aggregate Maximum Credit Amounts pursuant toΒ SectionΒ 2.06(b), (b)Β modified from time to time pursuant toΒ SectionΒ 2.06(c) or (c)Β modified from time to time pursuant to any assignment permitted byΒ SectionΒ 12.04(b).
βMidstream MLPβ means Oasis Midstream Partners, a Delaware limited partnership.
βMidstream MLP Contributionβ means the disposition by the Credit Parties of certain Midstream Properties of the Credit Parties to OMP and its subsidiaries and to the DevCos pursuant to that certain Contribution Agreement among the Parent, OMS Holdings LLC, the Midstream MLP and OMP, dated as of SeptemberΒ 25, 2017.
βMidstream MLP IPOβ means initial public offering of Equity Interests in the Midstream MLP on the New York Stock Exchange pursuant to the FormΒ S-1 Registration Statement File No.Β 333- 217976 initially filed by the Midstream MLP with the SEC on MayΒ 12, 2017, as amended prior to the Ninth Amendment Effective Date.
βMidstream MLP Partnership Agreementβ means that certain Amended and Restated Agreement of Limited Partnership of the Midstream MLP dated as of SeptemberΒ 25, 2017, as the same may be amended, restated or otherwise modified from time to time to the extent permitted under this Agreement.
βMidstream Propertiesβ means all tangible property used in (a)Β gathering, compressing, treating, processing and transporting natural gas, crude, condensate and natural gas liquids; (b)Β fractionating and transporting natural gas, crude, condensate and natural gas liquids; (c)Β marketing natural gas, crude, condensate and natural gas liquids; and (d)Β water distribution, supply, treatment and disposal services thereof, including, Gathering Systems, Processing Plants, storage facilities, surface leases, Rights of Way and servitudes related to each of the foregoing. Unless otherwise specified herein, βMidstream Propertiesβ shall be deemed to refer to such properties owned or leased by the Credit Parties or the DevCos, as applicable. Notwithstanding the foregoing, in no event shall any interest in, or any interest or right derived from, any oil, gas and mineral leases, or other liquid or gaseous hydrocarbon leases, mineral fee interests, overriding royalty and royalty interests, net profit interests or production payment interests be deemed to be Midstream Properties for purposes of the Loan Documents.
βMoodyβsβ means Xxxxxβx Investors Service, Inc. and any successor thereto that is a nationally recognized rating agency.
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βMortgaged Propertyβ means (a)Β any Property owned by the Borrower or any Guarantor which is subject to the Liens existing and to exist under the terms of the Security Instruments and (b)Β the DevCo Mortgaged Property.
βNew Borrowing Base Noticeβ has the meaning assigned such term inΒ SectionΒ 2.07(d).
βNinth Amendmentβ means that certain Ninth Amendment to Second Amended and Restated Credit Agreement, dated as of SeptemberΒ 25, 2017, among the Borrower, the Guarantors, the Administrative Agent and the Lenders party thereto.
βNinth Amendment Effective Dateβ means SeptemberΒ 25, 2017.
βNotesβ means the promissory notes of the Borrower described inΒ SectionΒ 2.02(d) and being substantially in the form of ExhibitΒ A, together with all amendments, modifications, replacements, extensions and rearrangements thereof.
βOFACβ means the Office of Foreign Assets Control of the United States Department of the Treasury.
βOil and Gas Propertiesβ means (a)Β Hydrocarbon Interests; (b)Β the Properties now or hereafter pooled or unitized with Hydrocarbon Interests; (c)Β all presently existing or future unitization, pooling agreements and declarations of pooled units and the units created thereby (including without limitation all units created under orders, regulations and rules of any Governmental Authority) which may affect all or any portion of the Hydrocarbon Interests; (d)Β all operating agreements, contracts and other agreements, including production sharing contracts and agreements, which relate to any of the Hydrocarbon Interests or the production, sale, purchase, exchange or processing of Hydrocarbons from or attributable to such Hydrocarbon Interests; (e)Β all Hydrocarbons in and under and which may be produced and saved or attributable to the Hydrocarbon Interests, including all oil in tanks, and all rents, issues, profits, proceeds, products, revenues and other incomes from or attributable to the Hydrocarbon Interests; (f)Β all tenements, hereditaments, appurtenances and Properties in any manner appertaining, belonging, affixed or incidental to the Hydrocarbon Interests and (g)Β all Properties, rights, titles, interests and estates described or referred to above, including any and all Property, real or personal, now owned or hereinafter acquired and situated upon, used, held for use or useful in connection with the operating, working or development of any of such Hydrocarbon Interests or Property (excluding drilling rigs, automotive equipment, rental equipment or other personal Property which may be on such premises for the purpose of drilling a well or for other similar temporary uses) and including any and all oil xxxxx, gas xxxxx, injection xxxxx or other xxxxx, buildings, structures, fuel separators, liquid extraction plants, plant compressors, pumps, pumping units, field gathering systems, tanks and tank batteries, fixtures, valves, fittings, machinery and parts, engines, boilers, meters, apparatus, equipment, appliances, tools, implements, cables, wires, towers, casing, tubing and rods, surface leases, rights-of-way, easements and servitudes together with all additions, substitutions, replacements, accessions and attachments to any and all of the foregoing.
βOMPβ means OMP Operating LLC, a Delaware limited liability company.
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βOMP Credit Facilityβ means any senior secured credit facility pursuant to that certain Credit Agreement dated SeptemberΒ 25, 2017, among OMP, as borrower, the other credit parties thereto, Xxxxx Fargo Bank, N.A., as administrative agent and the lenders party thereto, as such agreement may be amended, amended and restated, supplemented or otherwise modified from time to time in accordance with the terms thereof.
βOP Internationalβ means Oasis Petroleum International LLC, a Delaware limited liability company.
βOther Taxesβ means any and all present or future stamp or documentary taxes or any other excise or Property taxes, charges or similar levies arising from any payment made hereunder or from the execution, delivery or enforcement of, or otherwise with respect to, this Agreement and any other Loan Document; provided that, for the avoidance of doubt, βOther Taxesβ shall not include Excluded Taxes.
βParticipantβ has the meaning set forth inΒ SectionΒ 12.04(c)(i).
βParticipant Registerβ has the meaning set forth inΒ SectionΒ 12.04(c)(i).
βPermitted Bond Hedge Transaction(s)β means the bond hedge or capped call options purchased by the Parent or any other Credit Party from the Call Spread Counterparties to hedge the Parentβs payment and/or delivery obligations due upon conversion of the Convertible Notes.
βPermitted OMP Credit Facility Liensβ means Liens on Midstream Properties owned by any DevCo that are in favor of Xxxxx Fargo Bank, N.A. (or any successor administrative agent), as administrative agent under the OMP Credit Facility to secure the obligations and indebtedness under such OMP Credit Facility and which Liens are subject to the Intercreditor Agreement.
βPermitted Refinancing Debtβ means Senior Notes issued or incurred by the Parent or any other Credit Party, and Debt constituting guarantees thereof by other Credit Parties, incurred or issued in exchange for, or the net proceeds of which are used to extend, refinance, repay, renew, replace (whether or not contemporaneously), defease, discharge, refund or otherwise Redeem outstanding Senior Notes, in whole or in part from time to time; provided that the principal amount of such Permitted Refinancing Debt (or if such Permitted Refinancing Debt is issued at a discount, the initial issuance price of such Permitted Refinancing Debt) does not exceed the then outstanding principal amount of the Senior Notes so exchanged for, extended, refinanced, repaid, renewed, replaced, defeased, discharged, refunded or otherwise Redeemed (plus the amount of any premiums and accrued interest paid and fees and expenses incurred in connection therewith).
βPermitted Warrant Transaction(s)β means one or more net share or cash settled warrants sold by the Credit Parties to the Call Spread Counterparties, concurrently with the purchase by the Parent of the Permitted Bond Hedge Transactions, to offset the cost to the Parent of the Permitted Bond Hedge Transactions.
βPersonβ means any natural person, corporation, limited liability company, trust, joint venture, association, company, partnership, Governmental Authority or other entity.
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βPlanβ means any employee pension benefit plan, as defined in sectionΒ 3(2)Β of ERISA, which (a)Β is currently or hereafter sponsored, maintained or contributed to by the Borrower, a Subsidiary or an ERISA Affiliate or (b)Β was at any time during the six calendar years preceding the date hereof, sponsored, maintained or contributed to by the Borrower or a Subsidiary or an ERISA Affiliate.
βPrime Rateβ means the rate of interest per annum publicly announced from time to time by Xxxxx Fargo, as its prime rate in effect at its principal office in San Francisco; each change in the Prime Rate shall be effective from and including the date such change is publicly announced as being effective. Such rate is set by the Administrative Agent as a general reference rate of interest, taking into account such factors as the Administrative Agent may deem appropriate; it being understood that many of the Administrative Agentβs commercial or other loans are priced in relation to such rate, that it is not necessarily the lowest or best rate actually charged to any customer and that the Administrative Agent may make various commercial or other loans at rates of interest having no relationship to such rate.
βProcessing Plantsβ means the Midstream Properties of the Credit Parties or DevCos, as applicable, comprised of any processing plants owned or leased from time to time by any Credit Party or DevCo that are used in the business of such Credit Party or DevCo.
βPropertyβ means any interest in any kind of property or asset, whether real, personal or mixed, or tangible or intangible, including, without limitation, cash, securities, accounts and contract rights.
βProposed Borrowing Baseβ has the meaning assigned to such term inΒ SectionΒ 2.07(c)(i).
βProposed Borrowing Base Noticeβ has the meaning assigned to such term inΒ SectionΒ 2.07(c)(ii).
βQualified Convertible Notes Offeringβ means an issuance of Convertible Notes which satisfies the following conditions: (a)Β such Convertible Notes have a per annum interest rate less than or equal to 5%, (b)Β at the time thereof and after giving effect to any adjustment of the Borrowing Base in connection therewith, the Total Commitments Utilization Percentage is less than or equal to 50% and (c)Β after giving pro forma effect to such issuance, the Borrower is in compliance with the financial covenants contained inΒ SectionΒ 9.01(a),Β SectionΒ 9.01(b) andΒ SectionΒ 9.01(c).
βQualified ECP Guarantorβ means, in respect of any Swap Agreement, each Credit Party and each DevCo that (a)Β has total assets exceeding $10,000,000 at the time any guaranty of obligations under such Swap Agreement becomes effective or (b)Β otherwise constitutes an βeligible contract participantβ under the Commodity Exchange Act or any regulations promulgated thereunder and can cause another Person to qualify as an βeligible contract participantβ at such time by entering into a keepwell under SectionΒ 1a(18)(A)(v)(II) of the Commodity Exchange Act.
βRedemptionβ means with respect to any Debt, the repurchase, redemption, prepayment, repayment, defeasance or any other acquisition or retirement for value (or the segregation of funds with respect to any of the foregoing) of such Debt. βRedeemβ has the correlative meaning thereto.
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βRedetermination Dateβ means, with respect to any Scheduled Redetermination or any Interim Redetermination, the date that the redetermined Borrowing Base related thereto becomes effective pursuant toΒ SectionΒ 2.07(d).
βRefined Productsβ means gasoline, diesel fuel, jet fuel, asphalt and asphalt products, and other refined products of crude oil.
βRegisterβ has the meaning assigned such term inΒ SectionΒ 12.04(b)(iv).
βRegulation Dβ means Regulation D of the Board, as the same may be amended, supplemented or replaced from time to time.
βRelated Partiesβ means, with respect to any specified Person, such Personβs Affiliates and the respective directors, officers, employees, agents and advisors (including attorneys, accountants and experts) of such Person and such Personβs Affiliates.
βReleaseβ means any depositing, spilling, leaking, pumping, pouring, placing, emitting, discarding, abandoning, emptying, discharging, migrating, injecting, escaping, leaching, dumping, or disposing.
βRemedial Workβ has the meaning assigned such term inΒ SectionΒ 8.10(a).
βRequired Lendersβ means, at any time while no Loans or LC Exposure is outstanding, Lenders having at least sixty-six and two-thirds percent (66Β 2β3%) of the Aggregate Maximum Credit Amounts; and at any time while any Loans or LC Exposure is outstanding, Lenders holding at least sixty-six and two-thirds percent (66Β 2β3%) of the outstanding aggregate principal amount of the Loans and participation interests in Letters of Credit (without regard to any sale by a Lender of a participation in any Loan underΒ SectionΒ 12.04(c)); provided that the Maximum Credit Amounts and the principal amount of the Loans and participation interests in Letters of Credit of the Defaulting Lenders (if any) shall be excluded from the determination of Required Lenders.
βRequisite Increase Lendersβ means, at any time while no Loans or LC Exposure is outstanding, Lenders having at least ninety percent (90%) of the Aggregate Maximum Credit Amounts; and at any time while any Loans or LC Exposure is outstanding, Lenders holding at least ninety percent (90%) of the outstanding aggregate principal amount of the Loans and participation interests in Letters of Credit (without regard to any sale by a Lender of a participation in any Loan underΒ SectionΒ 12.04(c)).
βReserve Reportβ means a report, in form and substance reasonably satisfactory to the Administrative Agent, setting forth, as of each JanuaryΒ 1st or JulyΒ 1st (or such other date in the event of an Interim Redetermination) the oil and gas reserves located in the United States attributable to the Oil and Gas Properties of the Borrower and the Subsidiaries, together with a projection of the rate of production and future net income, taxes, operating expenses and capital expenditures with respect thereto as of such date, based upon the economic assumptions consistent with the Administrative Agentβs lending requirements at the time.
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βResponsible Officerβ means, as to any Person, the Chief Executive Officer, the President, any Financial Officer or any Vice President of such Person. Unless otherwise specified, all references to a Responsible Officer herein shall mean a Responsible Officer of the Borrower.
βRestricted Paymentβ means any dividend or other distribution (whether in cash, securities or other Property) with respect to any Equity Interests in the Borrower or any of its Subsidiaries or any DevCo, or any payment (whether in cash, securities or other Property), including any sinking fund or similar deposit, on account of the purchase, redemption, retirement, acquisition, cancellation or termination of any such Equity Interests in the Borrower or any of its Subsidiaries or any DevCo or any option, warrant or other right to acquire any such Equity Interests in the Borrower or any of its Subsidiaries or any DevCo.
βRevolving Credit Exposureβ means, with respect to any Lender at any time, the sum of the outstanding principal amount of such Lenderβs Loans and its LC Exposure at such time.
βS&Pβ means S&P Global Ratings and any successor thereto that is a nationally recognized rating agency.
βScheduled Redeterminationβ has the meaning assigned such term inΒ SectionΒ 2.07(b).
βScheduled Redetermination Dateβ means the date on which a Borrowing Base that has been redetermined pursuant to a Scheduled Redetermination becomes effective as provided inΒ SectionΒ 2.07(d).
βSECβ means the Securities and Exchange Commission or any successor Governmental Authority.
βSecond Amendmentβ means that certain Second Amendment to Second Amended and Restated Credit Agreement, dated as of SeptemberΒ 30, 2014, among the Borrower, the Guarantors, the Administrative Agent and the Lenders party thereto.
βSecured Partiesβ means, collectively, the Administrative Agent, the Lenders, the Bank Products Providers and Secured Swap Parties, and βSecured Partyβ means any of them individually.
βSecured Swap Agreementsβ means any Swap Agreement between the Parent, OP LLC, the Borrower or any other Credit Party and any Person entered into prior to the time, or during the time, that such Person or its Affiliate is a Lender (including any Swap Agreement between such Person in existence prior to the date hereof), even if such Person subsequently ceases to be a Lender (or an Affiliate thereof) for any reason (any such Person, a βSecured Swap Partyβ).
βSecured Swap Indebtednessβ means Indebtedness of the type referred to in clauseΒ (b) of the definition of Indebtedness.
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βSecured Swap Partyβ has the meaning assigned to such term in the definition of Secured Swap Agreement.
βSecurity Instrumentsβ means the Guaranty and Security Agreement, each DevCo Guaranty, the Intercreditor Agreement, mortgages, deeds of trust, the DevCo Mortgages, and other agreements, instruments or certificates described or referred to in ExhibitΒ E-1, and any and all other agreements, instruments, consents or certificates now or hereafter executed and delivered by the Parent, OP LLC, the Borrower, any other Guarantor, any DevCo or any other Person (other than Secured Swap Agreements or participation or similar agreements between any Lender and any other lender or creditor with respect to any Indebtedness pursuant to this Agreement) as security for the payment or performance of the Indebtedness, the Notes, this Agreement, or reimbursement obligations under the Letters of Credit, as such agreements may be amended, modified, supplemented or restated from time to time.
βSenior Notesβ means any unsecured senior or senior subordinated Debt securities (whether registered or privately placed) issued pursuant to a Senior Notes Indenture including, for the avoidance of doubt, any Convertible Notes.
βSenior Notes Indentureβ means any indenture among the Parent, as issuer, the subsidiary guarantors party thereto and the trustee named therein, pursuant to which the Senior Notes are issued, as the same may be amended or supplemented in accordance withΒ SectionΒ 9.04(b), including, for the avoidance of doubt, any Convertible Note Indenture.
βSeventh Amendmentβ means that certain Seventh Amendment to Second Amended and Restated Credit Agreement, dated as of OctoberΒ 14, 2016, among the Borrower, the Guarantors, the Administrative Agent and the Lenders party thereto.
βSixth Amendmentβ means that certain Sixth Amendment to Second Amended and Restated Credit Agreement, dated as of AugustΒ 8, 2016, among the Borrower, the Guarantors, the Administrative Agent and the Lenders party thereto.
βSpecified Redemption Testβ means, at the time of determination, with respect to any event in connection with which such determination is made, each of the following conditions is satisfied: (a)Β no Default, Event of Default or Borrowing Base Deficiency has occurred and is continuing or would result from such event, (b)Β the amount of the undrawn Commitments after giving effect to such event shall represent at least 50% of the aggregate Commitments at such time and (c)Β the Borrower is able to satisfy each of the conditions contained inΒ SectionΒ 6.02 at the time of determination.
βStatutory Reserve Rateβ means, a fraction (expressed as a decimal), the numerator of which is the number one and the denominator of which is the number one minus the aggregate of the maximum reserve percentages (including any marginal, special, emergency or supplemental reserves) expressed as a decimal established by the Board to which the Administrative Agent is subject with respect to the Adjusted LIBO Rate, for eurocurrency funding (currently referred to as βEurocurrency Liabilitiesβ in Regulation D of the Board). Such reserve percentages shall include those imposed pursuant to such RegulationΒ D. Eurodollar Loans shall be deemed to constitute eurocurrency funding and to be subject to such reserve requirements without benefit of or credit for proration, exemptions or offsets that may be available from time to time to any Lender under such Regulation D or any comparable regulation. The Statutory Reserve Rate shall be adjusted automatically on and as of the effective date of any change in any reserve percentage.
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βSubsidiaryβ means (a)Β any Person of which at least a majority of the outstanding Equity Interests having by the terms thereof ordinary voting power to elect a majority of the board of directors, manager or other governing body of such Person (irrespective of whether or not at the time Equity Interests of any other class or classes of such Person shall have or might have voting power by reason of the happening of any contingency) is at the time directly or indirectly owned or controlled by the Borrower and/or one or more of its Subsidiaries and (b)Β any partnership of which the Borrower or any of its Subsidiaries is a general partner. Unless otherwise indicated herein, each reference to the term βSubsidiaryβ shall mean a Subsidiary of the Borrower; provided, that OP International and its Subsidiaries shall not be considered βSubsidiariesβ for purposes of the Loan Documents; provided further, that none of the Midstream MLP, any of its subsidiaries and any DevCo shall be considered a βSubsidiaryβ of the Parent, OP LLC or the Borrower for purposes of the Loan Documents.
βSwap Agreementβ means any agreement with respect to any swap, forward, future or derivative transaction or option or similar agreement, whether exchange traded, βover-the-counterβ or otherwise, involving, or settled by reference to, one or more rates, currencies, commodities, equity or debt instruments or securities, or economic, financial or pricing indices or measures of economic, financial or pricing risk or value or any similar transaction or any combination of these transactions (including any agreement, contract or transaction that constitutes a βswapβ within the meaning of sectionΒ 1a(47) of the Commodity Exchange Act); provided that no phantom stock or similar plan providing for payments only on account of services provided by current or former directors, officers, employees or consultants of the Borrower or its Subsidiaries shall be a Swap Agreement.
βSwap Termination Valueβ means, in respect of any one or more Swap Agreements, after taking into account the effect of any legally enforceable netting agreement relating to such Swap Agreements, (a)Β for any date on or after the date such Swap Agreements have been closed out and termination value(s) determined in accordance therewith, such termination value(s) and (b)Β for any date prior to the date referenced in clauseΒ (a), the amount(s) determined as the xxxx-to-market value(s) for such Swap Agreements, as determined by the counterparties to such Swap Agreements.
βSynthetic Leasesβ means, in respect of any Person, all leases which shall have been, or should have been, in accordance with GAAP, treated as operating leases on the financial statements of the Person liable (whether contingently or otherwise) for the payment of rent thereunder and which were properly treated as indebtedness for borrowed money for purposes ofΒ U.S. federal income taxes, if the lessee in respect thereof is obligated to either purchase for an amount in excess of, or pay upon early termination an amount in excess of, 80% of the residual value of the Property subject to such operating lease upon expiration or early termination of such lease.
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βTaxesβ means any and all present or future taxes, levies, imposts, duties, deductions, charges or withholdings imposed by any Governmental Authority.
βTermination Dateβ means the earlier of the Maturity Date and the date of termination of the Commitments.
βThird Amendmentβ means that certain Third Amendment to Second Amended and Restated Credit Agreement, dated as of AprilΒ 13, 2015, among the Borrower, the Guarantors, the Administrative Agent and the Lenders party thereto.
βTotal Commitments Utilization Percentageβ means, as of any day, the fraction expressed as a percentage, the numerator of which is the sum of the Revolving Credit Exposures of the Lenders on such day, and the denominator of which is the total Commitments of the Lenders in effect on such day.
βTotal Debtβ means, at any date, all Debt of the Parent and the Consolidated Subsidiaries on a consolidated basis, excluding (a)Β non-cash obligations under ASC 815 and (b)Β accounts payable and accrued expenses, liabilities or other obligations to pay the deferred purchase price of Property or services, from time to time incurred in the ordinary course of business which are not greater than sixty (60)Β days past the date of invoice or delinquent or which are being contested in good faith by appropriate action and for which adequate reserves have been maintained in accordance with GAAP.
βTransactionsβ means, with respect to (a)Β the Borrower, the execution, delivery and performance by the Borrower of this Agreement and each other Loan Document to which it is a party, the borrowing of Loans, the use of the proceeds thereof and the issuance of Letters of Credit hereunder, and the grant of Liens by the Borrower on Mortgaged Properties and other Properties pursuant to the Security Instruments and (b)Β each Guarantor, the execution, delivery and performance by such Guarantor of each Loan Document to which it is a party, the guaranteeing of the Indebtedness and the other obligations under the Guaranty and Security Agreement by such Guarantor and such Guarantorβs grant of the security interests and provision of collateral under the Security Instruments, and the grant of Liens by such Guarantor on Mortgaged Properties and other Properties pursuant to the Security Instruments.
βTrigger Dateβ means the first date on which the Aggregate Elected Commitment Amounts exceed $1,150,000,000.
βTypeβ, when used in reference to any Loan or Borrowing, refers to whether the rate of interest on such Loan, or on the Loans comprising such Borrowing, is determined by reference to the Alternate Base Rate or the Adjusted LIBO Rate.
βU.S. Tax Compliance Certificateβ has the meaning set forth inΒ SectionΒ 5.03(f).
βWholly-Owned Subsidiaryβ means any Subsidiary of which all of the outstanding Equity Interests (other than any directorsβ qualifying shares mandated by applicable law), on a fully-diluted basis, are owned by the Borrower or one or more of the Wholly-Owned Subsidiaries or are owned by the Borrower and one or more of the Wholly-Owned Subsidiaries.
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βWithholding Agentβ means any Credit Party or the Administrative Agent.
βWrite-Down and Conversion Powersβ means, with respect to any EEA Resolution Authority, the write-down and conversion powers of such EEA Resolution Authority from time to time under the Bail-In Legislation for the applicable EEA Member Country, which write-down and conversion powers are described in the EU Bail-In Legislation Schedule.
SectionΒ 1.03 Types of Loans and Borrowings. For purposes of this Agreement, Loans and Borrowings, respectively, may be classified and referred to by Type (e.g., a βEurodollar Loanβ or a βEurodollar Borrowingβ).
SectionΒ 1.04 Terms Generally; Rules of Construction. The definitions of terms herein shall apply equally to the singular and plural forms of the terms defined. Whenever the context may require, any pronoun shall include the corresponding masculine, feminine and neuter forms. The words βincludeβ, βincludesβ and βincludingβ shall be deemed to be followed by the phrase βwithout limitationβ. The word βwillβ shall be construed to have the same meaning and effect as the word βshallβ. Unless the context requires otherwise (a)Β any definition of or reference to any agreement, instrument or other document herein shall be construed as referring to such agreement, instrument or other document as from time to time amended, supplemented, restated or otherwise modified (subject to any restrictions on such amendments, supplements or modifications set forth in the Loan Documents), (b)Β any reference herein to any law shall be construed as referring to such law as amended, modified, codified or reenacted, in whole or in part, and in effect from time to time, (c)Β any reference herein to any Person shall be construed to include such Personβs successors and assigns (subject to the restrictions contained in the Loan Documents), (d)Β the words βhereinβ, βhereofβ and βhereunderβ, and words of similar import, shall be construed to refer to this Agreement in its entirety and not to any particular provision hereof, (e)Β with respect to the determination of any time period, the word βfromβ means βfrom and includingβ and the word βtoβ means βto and includingβ and (f)Β any reference herein to Articles, Sections, Annexes, Exhibits and Schedules shall be construed to refer to Articles and Sections of, and Annexes, Exhibits and Schedules to, this Agreement. No provision of this Agreement or any other Loan Document shall be interpreted or construed against any Person solely because such Person or its legal representative drafted such provision. Notwithstanding anything herein to the contrary, for the purposes of calculating any of the ratios tested underΒ SectionΒ 9.01, and the components of each of such ratios, except to the extent expressly stated otherwise, OP International, any other Subsidiary that is not a Guarantor, any DevCo, the Midstream MLP and its subsidiaries (including in each case their assets, liabilities, income, losses, cash flows, and the elements thereof) shall be excluded, except for any cash dividends or distributions actually paid by any such Person to the Credit Parties, which shall be deemed to be income to such Credit Party when actually received by such Person.
SectionΒ 1.05 Accounting Terms and Determinations; GAAP. Unless otherwise specified herein, all accounting terms used herein shall be interpreted, all determinations with respect to accounting matters hereunder shall be made, and all financial statements and certificates and reports as to financial matters required to be furnished to the Administrative Agent or the Lenders hereunder shall be prepared, in accordance with GAAP, applied on a basis consistent with the Financial Statements except for changes in which Borrowerβs independent certified public accountants concur and which are disclosed to Administrative Agent on the next
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date on which financial statements are required to be delivered to the Lenders pursuant toΒ SectionΒ 8.01(a); provided that, unless the Borrower and the Majority Lenders shall otherwise agree in writing, no such change shall modify or affect the manner in which compliance with the covenants contained herein is computed such that all such computations shall be conducted utilizing financial information presented consistently with prior periods.
ARTICLEΒ II
The Credits
SectionΒ 2.01 Commitments. Subject to the terms and conditions set forth herein, each Lender agrees to make Loans to the Borrower during the Availability Period in an aggregate principal amount that will not result in (a)Β such Lenderβs Revolving Credit Exposure exceeding such Lenderβs Commitment or (b)Β the total Revolving Credit Exposures exceeding the total Commitments. Within the foregoing limits and subject to the terms and conditions set forth herein, the Borrower may borrow, repay and reborrow the Loans.
SectionΒ 2.02 Loans and Borrowings.
(a) Borrowings; Several Obligations. Each Loan shall be made as part of a Borrowing consisting of Loans made by the Lenders ratably in accordance with their respective Commitments. The failure of any Lender to make any Loan required to be made by it shall not relieve any other Lender of its obligations hereunder; provided that the Commitments are several and no Lender shall be responsible for any other Lenderβs failure to make Loans as required.
(b) Types of Loans. Subject toΒ SectionΒ 3.03, each Borrowing shall be comprised entirely of ABR Loans or Eurodollar Loans as the Borrower may request in accordance herewith. Each Lender at its option may make any Eurodollar Loan by causing any domestic or foreign branch or Affiliate of such Lender to make such Loan; provided that any exercise of such option shall not affect the obligation of the Borrower to repay such Loan in accordance with the terms of this Agreement.
(c) Minimum Amounts; Limitation on Number of Borrowings. At the commencement of each Interest Period for any Eurodollar Borrowing, such Borrowing shall be in an aggregate amount that is an integral multiple of $500,000 and not less than $1,000,000. At the time that each ABR Borrowing is made, such Borrowing shall be in an aggregate amount that is an integral multiple of $250,000 and not less than $1,000,000; provided that an ABR Borrowing may be in an aggregate amount that is equal to the entire unused balance of the total Commitments or that is required to finance the reimbursement of an LC Disbursement as contemplated byΒ SectionΒ 2.08(e). Borrowings of more than one Type may be outstanding at the same time, provided that there shall not at any time be more than a total of six (6)Β Eurodollar Borrowings outstanding. Notwithstanding any other provision of this Agreement, the Borrower shall not be entitled to request, or to elect to convert or continue, any Borrowing if the Interest Period requested with respect thereto would end after the Maturity Date.
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(d) Notes. If requested by a Lender, the Loans made by each Lender shall be evidenced by a single promissory note of the Borrower in substantially the form of ExhibitΒ A, dated, in the case of (i)Β any Lender party hereto as of the date of this Agreement, as of the date of this Agreement, (ii)Β any Lender that becomes a party hereto pursuant to an Assignment and Assumption, as of the effective date of the Assignment and Assumption or (iii)Β any Lender that becomes a party hereto in connection with an increase in the Aggregate Elected Commitment Amounts pursuant toΒ SectionΒ 2.06(c), as of the effective date of such increase, payable to such Lender in a principal amount equal to its Maximum Credit Amount as in effect on such date, and otherwise duly completed. In the event that any Lenderβs Maximum Credit Amount increases or decreases for any reason (whether pursuant toΒ SectionΒ 2.06,Β SectionΒ 12.04(b) or otherwise), the Borrower shall deliver or cause to be delivered, to the extent such Lender is then holding a Note, on the effective date of such increase or decrease, a new Note payable to such Lender in a principal amount equal to its Maximum Credit Amount after giving effect to such increase or decrease, and otherwise duly completed and such Lender shall promptly return to the Borrower the previously issued Note held by such Lender. The date, amount, Type, interest rate and, if applicable, Interest Period of each Loan made by each Lender, and all payments made on account of the principal thereof, shall be recorded by such Lender on its books for its Note, and, prior to any transfer, may be endorsed by such Lender on a schedule attached to such Note or any continuation thereof or on any separate record maintained by such Lender. Failure to make any such notation or to attach a schedule shall not affect any Lenderβs or the Borrowerβs rights or obligations in respect of such Loans or affect the validity of such transfer by any Lender of its Note.
SectionΒ 2.03 Requests for Borrowings. To request a Borrowing, the Borrower shall notify the Administrative Agent of such request by telephone or e-mail (a)Β in the case of a Eurodollar Borrowing, not later than 12:00 noon, New York City time, three Business Days before the date of the proposed Borrowing or (b)Β in the case of an ABR Borrowing, not later than 11:00 a.m., New York City time, on the date of the proposed Borrowing; provided that no such notice shall be required for any deemed request of an ABR Borrowing to finance the reimbursement of an LC Disbursement as provided inΒ SectionΒ 2.08(e). Each such telephonic or e-mail Borrowing Request shall be irrevocable and shall be confirmed promptly by hand delivery or facsimile to the Administrative Agent of a written Borrowing Request in substantially the form of ExhibitΒ B and signed by the Parent, OP LLC and the Borrower. Each such telephonic/e-mail and written Borrowing Request shall specify the following information in compliance withΒ SectionΒ 2.02:
(i) the aggregate amount of the requested Borrowing;
(ii) the date of such Borrowing, which shall be a Business Day;
(iii) whether such Borrowing is to be an ABR Borrowing or a Eurodollar Borrowing;
(iv) in the case of a Eurodollar Borrowing, the initial Interest Period to be applicable thereto, which shall be a period contemplated by the definition of the term βInterest Periodβ;
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(v) the amount of the then effective Borrowing Base, the Aggregate Elected Commitment Amounts, the current total Revolving Credit Exposures (without regard to the requested Borrowing) and the pro forma total Revolving Credit Exposures (giving effect to the requested Borrowing); and
(vi) the location and number of the Borrowerβs account to which funds are to be disbursed, which shall comply with the requirements ofΒ SectionΒ 2.05.
If no election as to the Type of Borrowing is specified, then the requested Borrowing shall be an ABR Borrowing. If no Interest Period is specified with respect to any requested Eurodollar Borrowing, then the Borrower shall be deemed to have selected an Interest Period of one monthβs duration. Each Borrowing Request shall constitute a representation that the amount of the requested Borrowing shall not cause the total Revolving Credit Exposures to exceed the total Commitments (i.e., the least of (x)Β the Aggregate Maximum Credit Amounts, (y)Β the then effective Borrowing Base and (z)Β the Aggregate Elected Commitment Amounts).
Promptly following receipt of a Borrowing Request in accordance with thisΒ SectionΒ 2.03, the Administrative Agent shall advise each Lender of the details thereof and of the amount of such Lenderβs Loan to be made as part of the requested Borrowing.
SectionΒ 2.04 Interest Elections.
(a) Conversion and Continuance. Each Borrowing initially shall be of the Type specified in the applicable Borrowing Request and, in the case of a Eurodollar Borrowing, shall have an initial Interest Period as specified in such Borrowing Request. Thereafter, the Borrower may elect to convert such Borrowing to a different Type or to continue such Borrowing and, in the case of a Eurodollar Borrowing, may elect Interest Periods therefor, all as provided in thisΒ SectionΒ 2.04. The Borrower may elect different options with respect to different portions of the affected Borrowing, in which case each such portion shall be allocated ratably among the Lenders holding the Loans comprising such Borrowing, and the Loans comprising each such portion shall be considered a separate Borrowing.
(b) Interest Election Requests. To make an election pursuant to thisΒ SectionΒ 2.04, the Borrower shall notify the Administrative Agent of such election by telephone or e-mail by the time that a Borrowing Request would be required underΒ SectionΒ 2.03 if the Borrower were requesting a Borrowing of the Type resulting from such election to be made on the effective date of such election. Each such telephonic or e-mail Interest Election Request shall be irrevocable and shall be confirmed promptly by hand delivery or telecopy to the Administrative Agent of a written Interest Election Request in substantially the form of ExhibitΒ C and signed by the Borrower.
(c) Information in Interest Election Requests. Each telephonic/e-mail and written Interest Election Request shall specify the following information in compliance withΒ SectionΒ 2.02:
(i) the Borrowing to which such Interest Election Request applies and, if different options are being elected with respect to different portions thereof, the portions thereof to be allocated to each resulting Borrowing (in which case the information to be specified pursuant toΒ SectionΒ 2.04(c)(iii) andΒ (iv) shall be specified for each resulting Borrowing);
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(ii) the effective date of the election made pursuant to such Interest Election Request, which shall be a Business Day;
(iii) whether the resulting Borrowing is to be an ABR Borrowing or a Eurodollar Borrowing; and
(iv) if the resulting Borrowing is a Eurodollar Borrowing, the Interest Period to be applicable thereto after giving effect to such election, which shall be a period contemplated by the definition of the term βInterest Periodβ.
If any such Interest Election Request requests a Eurodollar Borrowing but does not specify an Interest Period, then the Borrower shall be deemed to have selected an Interest Period of one monthβs duration.
(d) Notice to Lenders by the Administrative Agent. Promptly following receipt of an Interest Election Request, the Administrative Agent shall advise each Lender of the details thereof and of such Lenderβs portion of each resulting Borrowing.
(e) Effect of Failure to Deliver Timely Interest Election Request and Events of Default and Borrowing Base Deficiencies on Interest Election. If the Borrower fails to deliver a timely Interest Election Request with respect to a Eurodollar Borrowing prior to the end of the Interest Period applicable thereto, then, unless such Borrowing is repaid as provided herein, at the end of such Interest Period such Borrowing shall be converted to an ABR Borrowing. Notwithstanding any contrary provision hereof, if an Event of Default or a Borrowing Base Deficiency has occurred and is continuing: (i)Β no outstanding Borrowing may be converted to or continued as a Eurodollar Borrowing (and any Interest Election Request that requests the conversion of any Borrowing to, or continuation of any Borrowing as, a Eurodollar Borrowing shall be ineffective) and (ii)Β unless repaid, each Eurodollar Borrowing shall be converted to an ABR Borrowing at the end of the Interest Period applicable thereto.
SectionΒ 2.05 Funding of Borrowings; Funding by Lenders.
(a) Funding by Lenders. Each Lender shall make each Loan to be made by it hereunder on the proposed date thereof by wire transfer of immediately available funds by 1:00 p.m., New York City time, to the account of the Administrative Agent most recently designated by it for such purpose by notice to the Lenders. The Administrative Agent will make such Loans available to the Borrower by promptly crediting the amounts so received, in like funds, to an account of the Borrower maintained with the Administrative Agent in Houston, Texas and designated by the Borrower in the applicable Borrowing Request; provided that ABR Loans made to finance the reimbursement of an LC Disbursement as provided inΒ SectionΒ 2.08(e) shall be remitted by the Administrative Agent to the Issuing Bank. Nothing herein shall be deemed to obligate any Lender to obtain the funds for its Loan in any particular place or manner or to constitute a representation by any Lender that it has obtained or will obtain the funds for its Loan in any particular place or manner.
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(b) Presumption of Funding by the Lenders. Unless the Administrative Agent shall have received notice from a Lender prior to the proposed date of any Borrowing that such Lender will not make available to the Administrative Agent such Lenderβs share of such Borrowing, the Administrative Agent may assume that such Lender has made such share available on such date in accordance withΒ SectionΒ 2.05(a) and may, in reliance upon such assumption, make available to the Borrower a corresponding amount. In such event, if a Lender has not in fact made its share of the applicable Borrowing available to the Administrative Agent, then the applicable Lender and the Borrower severally agree to pay to the Administrative Agent forthwith on demand such corresponding amount with interest thereon, for each day from and including the date such amount is made available to the Borrower to but excluding the date of payment to the Administrative Agent, at (i)Β in the case of such Lender, the greater of the Federal Funds Effective Rate and a rate determined by the Administrative Agent in accordance with banking industry rules on interbank compensation or (ii)Β in the case of the Borrower, the interest rate applicable to ABR Loans. If such Lender pays such amount to the Administrative Agent, then such amount shall constitute such Lenderβs Loan included in such Borrowing.
SectionΒ 2.06 Termination and Reduction of Aggregate Maximum Credit Amounts; Optional Increase and Reduction of Aggregate Elected Commitment Amounts.
(a) Scheduled Termination of Commitments. Unless previously terminated, the Commitments shall terminate on the Maturity Date. If at any time the Aggregate Maximum Credit Amounts, the Borrowing Base or the Aggregate Elected Commitments Amount is terminated or reduced to zero, then the Commitments shall terminate on the effective date of such termination or reduction.
(b) Optional Termination and Reduction of Aggregate Credit Amounts.
(i) The Borrower may at any time terminate, or from time to time reduce, the Aggregate Maximum Credit Amounts; provided that (A)Β each reduction of the Aggregate Maximum Credit Amounts shall be in an amount that is an integral multiple of $1,000,000 and not less than $1,000,000, (B)Β the Borrower shall not terminate or reduce the Aggregate Maximum Credit Amounts if, after giving effect to any concurrent prepayment of the Loans in accordance withΒ SectionΒ 3.04(c), the total Revolving Credit Exposures would exceed the total Commitments, and (C)Β upon any reduction of the Aggregate Maximum Credit Amounts that results in the Aggregate Maximum Credit Amounts being less than the Aggregate Elected Commitment Amounts, the Aggregate Elected Commitment Amounts shall be automatically reduced (ratably among the Lenders) so that they equal the Aggregate Maximum Credit Amounts as so reduced.
(ii) The Borrower shall notify the Administrative Agent of any election to terminate or reduce the Aggregate Maximum Credit Amounts underΒ SectionΒ 2.06(b)(i) at least three Business Days prior to the effective date of such termination or reduction, specifying such election and the effective date thereof. Promptly following receipt of any notice, the Administrative Agent shall advise the Lenders of the contents thereof. Each notice delivered by the Borrower pursuant to thisΒ SectionΒ 2.06(b)(ii) shall be irrevocable. Any termination or reduction of the Aggregate Maximum Credit Amounts shall be permanent and may not be reinstated. Each reduction of the Aggregate Maximum Credit Amounts shall be made ratably among the Lenders in accordance with each Lenderβs Applicable Percentage.
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(c) Optional Increase and Reduction of Aggregate Elected Commitment Amounts.
(i) Subject to the conditions set forth inΒ SectionΒ 2.06(c)(ii), the Borrower may increase the Aggregate Elected Commitment Amounts then in effect by increasing the Elected Commitment of a Lender or by causing a Person that is acceptable to the Administrative Agent that at such time is not a Lender to become a Lender (an βAdditional Lenderβ). Notwithstanding anything to the contrary contained in this Agreement, in no case shall an Additional Lender be the Borrower or an Affiliate of a Borrower.
(ii) Any increase in the Aggregate Elected Commitment Amounts shall be subject to the following additional conditions:
(A) such increase shall not be less than $50,000,000 unless the Administrative Agent otherwise consents, and no such increase shall be permitted if after giving effect thereto the Aggregate Elected Commitment Amounts exceed the Borrowing Base then in effect;
(B) following any Scheduled Redetermination Date, the Borrower may not increase the Aggregate Elected Commitment Amounts more than once before the next Scheduled Redetermination Date;
(C) no Default shall have occurred and be continuing on the effective date of such increase;
(D) on the effective date of such increase, no Eurodollar Borrowings shall be outstanding or if any Eurodollar Borrowings are outstanding, then the effective date of such increase shall be the last day of the Interest Period in respect of such Eurodollar Borrowings unless the Borrower pays compensation required byΒ SectionΒ 5.02;
(E) no Lenderβs Elected Commitment may be increased without the consent of such Lender;
(F) if the Borrower elects to increase the Aggregate Elected Commitment Amounts by increasing the Elected Commitment of a Lender, the Borrower and such Lender shall execute and deliver to the Administrative Agent a certificate substantially in the form of ExhibitΒ G (an βElected Commitment Increase Certificateβ); and
(G) if the Borrower elects to increase the Aggregate Elected Commitment Amounts by causing an Additional Lender to become a party to this Agreement, then the Borrower and such Additional Lender shall execute and deliver to the Administrative Agent a certificate substantially in the form of ExhibitΒ H (an βAdditional Lender Certificateβ), together with an Administrative Questionnaire and a processing and recordation fee of $3,500, and the Borrower shall (1)Β if requested by the Additional Lender, deliver a Note payable to such Additional Lender in a principal amount equal to its Maximum Credit Amount, and otherwise duly completed and (2)Β pay any applicable fees as may have been agreed to between the Borrower, the Additional Lender and/or the Administrative Agent.
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(iii) Subject to acceptance and recording thereof pursuant toΒ SectionΒ 2.06(c)(iv), from and after the effective date specified in the Elected Commitment Increase Certificate or the Additional Lender Certificate (or if any Eurodollar Borrowings are outstanding, then the last day of the Interest Period in respect of such Eurodollar Borrowings, unless the Borrower has paid compensation required byΒ SectionΒ 5.02): (A)Β the amount of the Aggregate Elected Commitment Amounts shall be increased as set forth therein, and (B)Β in the case of an Additional Lender Certificate, any Additional Lender party thereto shall be a party to this Agreement and have the rights and obligations of a Lender under this Agreement and the other Loan Documents. In addition, the Lender or the Additional Lender, as applicable, shall purchase a pro rata portion of the outstanding Loans (and participation interests in Letters of Credit) of each of the other Lenders (and such Lenders hereby agree to sell and to take all such further action to effectuate such sale) such that each Lender (including any Additional Lender, if applicable) shall hold its Applicable Percentage of the outstanding Loans (and participation interests) after giving effect to the increase in the Aggregate Elected Commitment Amounts.
(iv) Upon its receipt of a duly completed Elected Commitment Increase Certificate or an Additional Lender Certificate, executed by the Borrower and the Lender or by the Borrower and the Additional Lender party thereto, as applicable, the processing and recording fee referred to inΒ SectionΒ 2.06(c)(ii) and the Administrative Questionnaire referred to inΒ SectionΒ 2.06(c)(ii), if applicable, the Administrative Agent shall accept such Elected Commitment Increase Certificate or Additional Lender Certificate and record the information contained therein in the Register required to be maintained by the Administrative Agent pursuant toΒ SectionΒ 12.04(b)(iv). No increase in the Aggregate Elected Commitment Amounts shall be effective for purposes of this Agreement unless it has been recorded in the Register as provided in this SectionΒ 2.06(c)(iv).
(v) Upon any increase in the Aggregate Elected Commitment Amounts pursuant to thisΒ SectionΒ 2.06(c), (A)Β each Lenderβs Maximum Credit Amount shall be automatically deemed amended to the extent necessary so that each such Lenderβs Applicable Percentage equals the percentage of the Aggregate Elected Commitment Amounts represented by such Lenderβs Elected Commitment, in each case after giving effect to such increase, and (B)Β AnnexΒ I to this Agreement shall be deemed amended to reflect the Elected Commitment of each Lender (including any Additional Lender) as thereby increased, any changes in the Lendersβ Maximum Credit Amounts pursuant to the foregoing clauseΒ (A), and any resulting changes in the Lendersβ Applicable Percentages.
(vi) The Borrower may from time to time reduce the Aggregate Elected Commitment Amounts; provided that (A)Β each reduction of the Aggregate Elected Commitment Amounts shall be in an amount that is an integral multiple of $1,000,000 and not less than $1,000,000 and (B)Β the Borrower shall not reduce the Aggregate Elected Commitment Amounts if, (C)Β after giving effect to any concurrent prepayment of the Loans in accordance withΒ SectionΒ 3.04(c), the total Revolving Credit Exposures would exceed the Aggregate Elected Commitment Amounts.
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(vii) The Borrower shall notify the Administrative Agent of any election to terminate or reduce the Aggregate Elected Commitment Amounts underΒ SectionΒ 2.06(c)(vi) at least three Business Days prior to the effective date of such termination or reduction, specifying such election and the effective date thereof. Promptly following receipt of any notice, the Administrative Agent shall advise the Lenders of the contents thereof. Each notice delivered by the Borrower pursuant to thisΒ SectionΒ 2.06(c)(vii) shall be irrevocable. Any termination or reduction of the Aggregate Elected Commitment Amounts shall be permanent and may not be reinstated, except pursuant toΒ SectionΒ 2.06(c)(i). Each reduction of the Aggregate Elected Commitment Amounts shall be made ratably among the Lenders in accordance with each Lenderβs Applicable Percentage.
(viii) Upon any redetermination or other adjustment in the Borrowing Base pursuant to this Agreement that would otherwise result in the Borrowing Base becoming less than the Aggregate Elected Commitment Amounts, the Aggregate Elected Commitment Amounts shall be automatically reduced (ratably among the Lenders in accordance with each Lenderβs Applicable Percentage) so that they equal such redetermined Borrowing Base (and AnnexΒ I shall be deemed amended to reflect such amendments to each Lenderβs Elected Commitment and the Aggregate Elected Commitment Amounts.
(ix) Contemporaneously with any increase in the Borrowing Base pursuant to this Agreement, if (A)Β the Borrower elects to increase the Aggregate Elected Commitment Amount and (B)Β each Lender has consented to such increase in its Elected Commitment, then the Aggregate Elected Commitment Amount shall be increased (ratably among the Lenders in accordance with each Lenderβs Applicable Percentage) by the amount requested by the Borrower (subject to the limitations set forth inΒ SectionΒ 2.06(c)(ii)(A)) without the requirement that any Lender deliver an Elected Commitment Increase Certificate, and AnnexΒ I shall be deemed amended to reflect such amendments to each Lenderβs Elected Commitment and the Aggregate Elected Commitment Amount. The Administrative Agent shall record the information regarding such increases in the Register required to be maintained by the Administrative Agent pursuant toΒ SectionΒ 12.04(b)(iv).
SectionΒ 2.07 Borrowing Base.
(a) Initial Borrowing Base. For the period from and including the Ninth Amendment Effective Date to but excluding the first Redetermination Date following the Ninth Amendment Effective Date, the amount of the Borrowing Base shall be $1,600,000,000. Notwithstanding the foregoing, the Borrowing Base may be subject to further adjustments in between Scheduled Redeterminations from time to time pursuant toΒ SectionΒ 2.07(e),Β SectionΒ 8.13(c), SectionΒ 9.12(d), SectionΒ 9.12(f) or SectionΒ 9.12(g).
(b) Scheduled and Interim Redeterminations. The Borrowing Base shall be redetermined semi-annually in accordance with thisΒ SectionΒ 2.07(a) a βScheduled Redeterminationβ), and, subject toΒ SectionΒ 2.07(d), such redetermined Borrowing Base shall become effective and applicable to the Borrower, the Agents, the Issuing Bank and the Lenders on AprilΒ 1st and OctoberΒ 1st of each year (or, in each case, such date promptly thereafter as reasonably practicable), commencing OctoberΒ 1, 2013. In addition, the Borrower may, by notifying the Administrative Agent thereof, and the Administrative Agent may, at the direction of the Majority Lenders, by notifying the Borrower thereof, one time during any 12-month period, each elect to cause the Borrowing Base to be redetermined between Scheduled Redeterminations (an βInterim Redeterminationβ) in accordance with thisΒ SectionΒ 2.07.
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(c) Scheduled and Interim Redetermination Procedure.
(i) Each Scheduled Redetermination and each Interim Redetermination shall be effectuated as follows: Upon receipt by the Administrative Agent of (A)Β the Reserve Report and the certificate required to be delivered by the Borrower to the Administrative Agent, in the case of a Scheduled Redetermination, pursuant toΒ SectionΒ 8.12(a) andΒ (c), and, in the case of an Interim Redetermination, pursuant toΒ SectionΒ 8.12(b) andΒ (c), and (B)Β such other reports, data and supplemental information, including, without limitation, the information provided pursuant toΒ SectionΒ 8.12(c), as may, from time to time, be reasonably requested by the Administrative Agent (the Reserve Report, such certificate and such other reports, data and supplemental information being the βEngineering Reportsβ), the Administrative Agent shall evaluate the information contained in the Engineering Reports and shall, in its sole discretion, propose a new Borrowing Base (the βProposed Borrowing Baseβ) based upon such information and such other information (including, without limitation, the status of title information with respect to the Oil and Gas Properties as described in the Engineering Reports and the existence of any other Debt, the Credit Partiesβ other assets, liabilities, fixed charges, cash flow, business, properties, prospects, management and ownership, hedged and unhedged exposure to price, price and production scenarios, interest rate and operating cost changes) as the Administrative Agent deems appropriate in its sole discretion and consistent with its normal oil and gas lending criteria as it exists at the particular time. In no event shall any Proposed Borrowing Base exceed the Aggregate Maximum Credit Amounts.
(ii) The Administrative Agent shall notify the Borrower and the Lenders of the Proposed Borrowing Base (the βProposed Borrowing Base Noticeβ):
(A) in the case of a Scheduled Redetermination (1)Β if the Administrative Agent shall have received the Engineering Reports required to be delivered by the Borrower pursuant toΒ SectionΒ 8.12(a) andΒ (c) in a timely and complete manner, then on or before MarchΒ 15th and SeptemberΒ 15th of such year following the date of delivery or (2)Β if the Administrative Agent shall not have received the Engineering Reports required to be delivered by the Borrower pursuant toΒ SectionΒ 8.12(a) andΒ (c) in a timely and complete manner, then promptly after the Administrative Agent has received complete Engineering Reports from the Borrower and has had a reasonable opportunity to determine the Proposed Borrowing Base in accordance withΒ SectionΒ 2.07(c)(i); and
(B) in the case of an Interim Redetermination, promptly, and in any event, within fifteen (15)Β days after the Administrative Agent has received the required Engineering Reports.
(iii) Any Proposed Borrowing Base that would increase the Borrowing Base then in effect must be approved or deemed to have been approved by the Requisite Increase Lenders as provided in thisΒ SectionΒ 2.07(c)(iii); and any Proposed Borrowing Base that would decrease or maintain the Borrowing Base then in effect must be approved or be deemed to have
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been approved by the Required Lenders as provided in thisΒ SectionΒ 2.07(c)(iii). Upon receipt of the Proposed Borrowing Base Notice, each Lender shall have fifteen (15)Β days to agree with the Proposed Borrowing Base or disagree with the Proposed Borrowing Base by proposing an alternate Borrowing Base. If at the end of such fifteen (15)Β days, any Lender has not communicated its approval or disapproval in writing to the Administrative Agent, such silence shall be deemed to be an approval of the Proposed Borrowing Base. If, at the end of such 15-day period, the Requisite Increase Lenders or the Required Lenders, as applicable, have approved or deemed to have approved, as aforesaid, then the Proposed Borrowing Base shall become the new Borrowing Base, effective on the date specified inΒ SectionΒ 2.07(d). If, however, at the end of such 15-day period, the Requisite Increase Lenders or the Required Lenders, as applicable, have not approved or deemed to have approved, as aforesaid, then the Administrative Agent shall poll the Lenders to ascertain the highest Borrowing Base then acceptable to a number of Lenders sufficient to constitute the Required Lenders and, so long as such amount does not increase the Borrowing Base then in effect, such amount shall become the new Borrowing Base, effective on the date specified inΒ SectionΒ 2.07(d).
(d) Effectiveness of a Redetermined Borrowing Base. After a redetermined Borrowing Base is approved or is deemed to have been approved by the Requisite Increase Lenders or the Required Lenders, as applicable, pursuant toΒ SectionΒ 2.07(c)(iii), the Administrative Agent shall notify the Borrower and the Lenders of the amount of the redetermined Borrowing Base (the βNew Borrowing Base Noticeβ), and such amount shall become the new Borrowing Base, effective and applicable to the Borrower, the Agents, the Issuing Bank and the Lenders.
(i) in the case of a Scheduled Redetermination, (A)Β if the Administrative Agent shall have received the Engineering Reports required to be delivered by the Borrower pursuant toΒ SectionΒ 8.12(a) andΒ (c) in a timely and complete manner, then on the AprilΒ 1st or OctoberΒ 1st (or, in each case, such date promptly thereafter as reasonably practicable), as applicable, following such notice, or (B)Β if the Administrative Agent shall not have received the Engineering Reports required to be delivered by the Borrower pursuant toΒ SectionΒ 8.12(a) andΒ (c) in a timely and complete manner, then on the Business Day next succeeding delivery of such New Borrowing Base Notice; and
(ii) in the case of an Interim Redetermination, on the Business Day next succeeding delivery of such New Borrowing Base Notice.
Such amount shall then become the Borrowing Base until the next Scheduled Redetermination Date, the next Interim Redetermination Date or the next adjustment to the Borrowing Base underΒ SectionΒ 2.07(e),Β SectionΒ 8.13(c), SectionΒ 9.12(d), SectionΒ 9.12(f) or SectionΒ 9.12(g), whichever occurs first. Notwithstanding the foregoing, no Scheduled Redetermination or Interim Redetermination shall become effective until the New Borrowing Base Notice related thereto is received by the Borrower.
(e) Reduction of Borrowing Base Upon Issuance of Senior Notes.
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(i) Subject toΒ SectionΒ 2.07(e)(ii) below, (x)Β if the Parent issues any Senior Notes (including any Convertible Notes and any Permitted Refinancing Debt) (βNew Debtβ) during the period between Scheduled Redetermination Dates and not in conjunction with an Interim Redetermination, then on the Reduction Date (as defined below), the Borrowing Base then in effect shall be reduced by an amount equal to the product of 0.25 multiplied by an amount equal to the difference between (1)Β the stated principal amount of such New Debt minus (2)Β the stated principal amount of previously outstanding Senior Notes to the extent such previously outstanding principal amount was Redeemed with the proceeds of such New Debt, and (y)Β the Borrowing Base as so reduced shall become the new Borrowing Base immediately upon the Reduction Date, effective and applicable to the Borrower, the Agents, the Issuing Bank and the Lenders on such date until the next redetermination or modification thereof hereunder. As used herein, the term βReduction Dateβ means (A)Β if such New Debt has been issued pursuant to a Qualified Convertible Notes Offering and the Borrower has delivered notice pursuant toΒ SectionΒ 8.01(r) that it intends to use a portion of the proceeds of New Debt to Redeem existing Senior Notes, the earlier of (x)Β the date on which the Redemption of such Senior Notes is consummated and (y)Β ninety days following such issuance of New Debt, and (B)Β otherwise, the date of the issuance of such New Debt. For purposes of thisΒ SectionΒ 2.07(e), if any such Debt is issued at a discount or otherwise sold for less than βparβ, the reduction shall be calculated based upon the stated principal amount without reference to such discount.
(ii) The Borrowing Base reduction provided for inΒ SectionΒ 2.07(e)(i) shall not occur on the date such Senior Notes are issued if reasonably prior (and in any event, at least two Business Days prior) to the issuance of such Senior Notes:
(A) The Borrower delivers written notice to the Administrative Agent and the Lenders that the Credit Parties intend to issue such Senior Notes to finance all or a portion of (x)Β a recent acquisition of Oil and Gas Properties for which the acquired assets have not yet been included in the most recent redetermination of the Borrowing Base or (y)Β a contemplated acquisition of Oil and Gas Properties (such properties, the βAcquisition Propertiesβ), which notice shall specify the contemplated principal amount of such Senior Notes and the targeted closing date of the issuance thereof;
(B) The Borrower delivers to the Administrative Agent and the Lenders a Reserve Report and such other Engineering Reports reasonably requested by the Administrative Agent in form and with an βas ofβ date reasonably satisfactory to the Administrative Agent which evaluates such Acquisition Properties; and
(C) The Borrower delivers to the Administrative Agent a certificate in form and substance reasonably acceptable to the Administrative Agent stating that the Borrower has a reasonable, good faith expectation that the value that the Lenders will attribute to such Acquisition Properties in the first redetermination of the Borrowing Base that becomes effective following the consummation of such contemplated (or recently completed) acquisition will be greater than or equal to 25% of the stated principal amount of such Senior Notes;
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Provided, that:
(1) the Borrowing Base shall, subject to clausesΒ (2) and (3)Β below, be redetermined giving pro forma effect to the acquisition of such Acquisition Properties in accordance with the procedures set forth inΒ SectionΒ 2.07(c) for an Interim Redetermination, with such redetermined Borrowing Base to become effective upon the later to occur of (x)Β the date the Credit Parties acquire substantially all of such Acquisition Properties and (y)Β the date that is 30 days following the date on which the Lenders receive the applicable Engineering Reports pursuant to clauseΒ (B)Β above or, in either case, such date thereafter as reasonably practicable (provided that such redetermination shall not constitute a Scheduled Redetermination or an Interim Redetermination requested by the Borrower or the Majority Lenders);
(2) if (i)Β the Credit Parties do not acquire substantially all of such Acquisition Properties for any reason prior to the date that is 90 days following the Credit Partiesβ issuance of such Senior Notes or (ii)Β any Credit Party knows with reasonable certainty that the Credit Parties will not acquire substantially all of such Acquisition Properties, then, subject to clauseΒ (3)Β below, the redetermination referred to in the foregoing clauseΒ (1)Β shall not be effective and the Borrowing Base shall be automatically reduced upon the earlier to occur of the events described in clausesΒ (i) and (ii)Β in accordance with the procedures set forth inΒ SectionΒ 2.07(e)(i) by an amount equal to 25% of the stated principal amount of such Senior Notes;
(3) if upon consummation of such acquisition, the Credit Parties acquire at least 85% but less than 95% of the total value of such Acquisition Properties (as reasonably determined by the Administrative Agent), (i)Β the Borrowing Base reduction provided for in the foregoing clauseΒ (2)Β shall not occur, (ii)Β the redetermination referred to in the foregoing clauseΒ (1)Β shall not be effective and (iii)Β the Borrowing Base shall be redetermined giving effect to the Acquisition Properties actually acquired by the Credit Parties in accordance with the procedures set forth inΒ SectionΒ 2.07(c) for an Interim Redetermination, with such redetermined Borrowing Base to become effective 15 days (or such longer period as is reasonably necessary) following the date on which such acquisition is consummated (provided that such redetermination shall not constitute a Scheduled Redetermination or an Interim Redetermination requested by the Borrower or the Majority Lenders), provided further, that this clauseΒ (3)Β shall only be given effect if the redetermination referred to in clauseΒ (1)Β resulted in a Proposed Borrowing Base greater than or equal to the Borrowing Base in effect immediately prior to such redetermination;
(4) the Borrower shall promptly (and in any event, within two Business Days) provide the Administrative Agent with written notice upon the Borrower knowing with reasonable certainty that the Credit Parties will not acquire substantially all of the Acquisition Properties;
(5) for purposes of the foregoing clausesΒ (1) and (2), βsubstantially all of such Acquisition Propertiesβ shall mean Oil and Gas Properties with a value (as reasonably determined by the Administrative Agent) of not less than 95% of the total value of all of such Acquisition Properties; and
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(6) on the date that any such acquisition occurs, the Borrower shall deliver to the Administrative Agent a certificate certifying (w)Β that attached to such certificate are true, accurate and complete copies of the transaction documents evidencing and governing the acquisition of such Acquisition Properties, (x)Β that the Credit Parties have consummated such acquisition in accordance with the terms of such documents, (y)Β as to which Acquisition Properties have been acquired and which Acquisition Properties were not acquired, and (z)Β as to the final purchase price for the Acquisition Properties after giving effect to all adjustments thereto made at the closing of such acquisition (and specifying by category and amount each such adjustment).
SectionΒ 2.08 Letters of Credit.
(a) General. Subject to the terms and conditions set forth herein, the Borrower may request the issuance of dollar denominated Letters of Credit for its own account or for the account of any of its Subsidiaries, in a form reasonably acceptable to the Administrative Agent and the Issuing Bank, at any time and from time to time during the Availability Period; provided that the Borrower may not request the issuance, amendment, renewal or extension of Letters of Credit hereunder if a Borrowing Base Deficiency exists at such time or would exist as a result thereof. In the event of any inconsistency between the terms and conditions of this Agreement and the terms and conditions of any form of letter of credit application or other agreement submitted by the Borrower to, or entered into by the Borrower with, the Issuing Bank relating to any Letter of Credit, the terms and conditions of this Agreement shall control.
(b) Notice of Issuance, Amendment, Renewal, Extension; Certain Conditions. To request the issuance of a Letter of Credit (or the amendment, renewal or extension of an outstanding Letter of Credit), the Borrower shall hand deliver or telecopy (or transmit by electronic communication, if arrangements for doing so have been approved by the Issuing Bank) to the Issuing Bank and the Administrative Agent (not less than five (5)Β Business Days in advance of the requested date of issuance, amendment, renewal or extension) a notice:
(i) requesting the issuance of a Letter of Credit or identifying the Letter of Credit to be amended, renewed or extended;
(ii) specifying the date of issuance, amendment, renewal or extension (which shall be a Business Day);
(iii) specifying the date on which such Letter of Credit is to expire (which shall comply withΒ SectionΒ 2.08(c));
(iv) specifying the amount of such Letter of Credit;
(v) specifying the name and address of the beneficiary thereof and such other information as shall be necessary to prepare, amend, renew or extend such Letter of Credit; and
(vi) specifying the amount of the then effective Borrowing Base and whether a Borrowing Base Deficiency exists at such time, the current total Revolving Credit Exposures (without regard to the requested Letter of Credit or the requested amendment, renewal or extension of an outstanding Letter of Credit) and the pro forma total Revolving Credit Exposures (giving effect to the requested Letter of Credit or the requested amendment, renewal or extension of an outstanding Letter of Credit).
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Each notice shall constitute a representation by the Borrower that after giving effect to the requested issuance, amendment, renewal or extension, as applicable, (i)Β the LC Exposure shall not exceed the LC Commitment and (ii)Β the total Revolving Credit Exposures shall not exceed the total Commitments (i.e., the least of (x)Β the Aggregate Maximum Credit Amounts, (y)Β the then effective Borrowing Base and (z)Β the Aggregate Elected Commitment Amounts).
If requested by the Issuing Bank, the Borrower also shall submit a letter of credit application on the Issuing Bankβs standard form in connection with any request for a Letter of Credit; provided that, in the event of any conflict between such application or any Letter of Credit Agreement and the terms of this Agreement, the terms of this Agreement shall control.
(c) Expiration Date. Each Letter of Credit shall expire at or prior to the close of business on the earlier of (i)Β the date one year after the date of the issuance of such Letter of Credit (or, in the case of any renewal or extension thereof, one year after such renewal or extension) and (ii)Β the date that is five Business Days prior to the Maturity Date.
(d) Participations. By the issuance of a Letter of Credit (or an amendment to a Letter of Credit increasing the amount thereof) and without any further action on the part of the Issuing Bank or the Lenders, the Issuing Bank hereby grants to each Lender, and each Lender hereby acquires from the Issuing Bank, a participation in such Letter of Credit equal to such Lenderβs Applicable Percentage of the aggregate amount available to be drawn under such Letter of Credit. In consideration and in furtherance of the foregoing, each Lender hereby absolutely and unconditionally agrees to pay to the Administrative Agent, for the account of the Issuing Bank, such Lenderβs Applicable Percentage of each LC Disbursement made by the Issuing Bank and not reimbursed by the Borrower on the date due as provided inΒ SectionΒ 2.08(e), or of any reimbursement payment required to be refunded to the Borrower for any reason. Each Lender acknowledges and agrees that its obligation to acquire participations pursuant to thisΒ SectionΒ 2.08(d) in respect of Letters of Credit is absolute and unconditional and shall not be affected by any circumstance whatsoever, including any amendment, renewal or extension of any Letter of Credit or the occurrence and continuance of a Default, the existence of a Borrowing Base Deficiency or reduction or termination of the Commitments, and that each such payment shall be made without any offset, abatement, withholding or reduction whatsoever.
(e) Reimbursement. If the Issuing Bank shall make any LC Disbursement in respect of a Letter of Credit, the Borrower shall reimburse such LC Disbursement by paying to the Administrative Agent an amount equal to such LC Disbursement not later than 3:00 p.m., New York City time, on the date that such LC Disbursement is made, if the Borrower shall have received notice of such LC Disbursement prior to 10:00 a.m., New York City time, on such date, or, if such notice has not been received by the Borrower prior to such time on such date, then not later than 3:00 p.m., New York City time, on (i)Β the Business Day that the Borrower receives such notice, if such notice is received prior to 10:00 a.m., New York City time, on the day of receipt, or (ii)Β the Business Day immediately following the day that the Borrower receives such notice, if such notice is not received prior to such time on the day of
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receipt; provided that the Borrower shall, subject to the conditions to Borrowing set forth herein, be deemed to have requested, and the Borrower does hereby request under such circumstances, that such payment be financed with an ABR Borrowing in an equivalent amount and, to the extent so financed, the Borrowerβs obligation to make such payment shall be discharged and replaced by the resulting ABR Borrowing. If the Borrower fails to make such payment when due, the Administrative Agent shall notify each Lender of the applicable LC Disbursement, the payment then due from the Borrower in respect thereof and such Lenderβs Applicable Percentage thereof. Promptly following receipt of such notice, each Lender shall pay to the Administrative Agent its Applicable Percentage of the payment then due from the Borrower, in the same manner as provided inΒ SectionΒ 2.05 with respect to Loans made by such Lender (andΒ SectionΒ 2.05 shall apply, mutatis mutandis, to the payment obligations of the Lenders), and the Administrative Agent shall promptly pay to the Issuing Bank the amounts so received by it from the Lenders. Promptly following receipt by the Administrative Agent of any payment from the Borrower pursuant to thisΒ SectionΒ 2.08(e), the Administrative Agent shall distribute such payment to the Issuing Bank or, to the extent that Lenders have made payments pursuant to thisΒ SectionΒ 2.08(e) to reimburse the Issuing Bank, then to such Lenders and the Issuing Bank as their interests may appear. Any payment made by a Lender pursuant to thisΒ SectionΒ 2.08(e) to reimburse the Issuing Bank for any LC Disbursement (other than the funding of ABR Loans as contemplated above) shall not constitute a Loan and shall not relieve the Borrower of its obligation to reimburse such LC Disbursement.
(f) Obligations Absolute. The Borrowerβs obligation to reimburse LC Disbursements as provided inΒ SectionΒ 2.08(e) shall be absolute, unconditional and irrevocable, and shall be performed strictly in accordance with the terms of this Agreement under any and all circumstances whatsoever and irrespective of (i)Β any lack of validity or enforceability of any Letter of Credit, any Letter of Credit Agreement or this Agreement, or any term or provision therein, (ii)Β any draft or other document presented under a Letter of Credit proving to be forged, fraudulent or invalid in any respect or any statement therein being untrue or inaccurate in any respect, (iii)Β payment by the Issuing Bank under a Letter of Credit against presentation of a draft or other document that does not comply with the terms of such Letter of Credit or any Letter of Credit Agreement, or (iv)Β any other event or circumstance whatsoever, whether or not similar to any of the foregoing, that might, but for the provisions of thisΒ SectionΒ 2.08(f), constitute a legal or equitable discharge of, or provide a right of setoff against, the Borrowerβs obligations hereunder. Neither the Administrative Agent, the Lenders nor the Issuing Bank, nor any of their Related Parties shall have any liability or responsibility by reason of or in connection with the issuance or transfer of any Letter of Credit or any payment or failure to make any payment thereunder (irrespective of any of the circumstances referred to in the preceding sentence), or any error, omission, interruption, loss or delay in transmission or delivery of any draft, notice or other communication under or relating to any Letter of Credit (including any document required to make a drawing thereunder), any error in interpretation of technical terms or any consequence arising from causes beyond the control of the Issuing Bank; provided that the foregoing shall not be construed to excuse the Issuing Bank from liability to the Borrower to the extent of any direct damages (as opposed to consequential damages, claims in respect of which are hereby waived by the Borrower to the extent permitted by applicable law) suffered by the Borrower that are caused by the Issuing Bankβs failure to exercise care when determining whether drafts and other documents presented under a Letter
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of Credit comply with the terms thereof. The parties hereto expressly agree that, in the absence of gross negligence or willful misconduct on the part of the Issuing Bank (as finally determined by a court of competent jurisdiction), the Issuing Bank shall be deemed to have exercised all requisite care in each such determination. In furtherance of the foregoing and without limiting the generality thereof, the parties agree that, with respect to documents presented which appear on their face to be in substantial compliance with the terms of a Letter of Credit, the Issuing Bank may, in its sole discretion, either accept and make payment upon such documents without responsibility for further investigation, regardless of any notice or information to the contrary, or refuse to accept and make payment upon such documents if such documents are not in strict compliance with the terms of such Letter of Credit.
(g) Disbursement Procedures. The Issuing Bank shall, promptly following its receipt thereof, examine all documents purporting to represent a demand for payment under a Letter of Credit. The Issuing Bank shall promptly notify the Administrative Agent and the Borrower by telephone (confirmed by telecopy or e-mail) of such demand for payment and whether the Issuing Bank has made or will make an LC Disbursement thereunder; provided that any failure to give or delay in giving such notice shall not relieve the Borrower of its obligation to reimburse the Issuing Bank and the Lenders with respect to any such LC Disbursement.
(h) Interim Interest. If the Issuing Bank shall make any LC Disbursement, then, until the Borrower shall have reimbursed the Issuing Bank for such LC Disbursement (either with its own funds or a Borrowing underΒ SectionΒ 2.08(e)), the unpaid amount thereof shall bear interest, for each day from and including the date such LC Disbursement is made to but excluding the date that the Borrower reimburses such LC Disbursement, at the rate per annum then applicable to ABR Loans. Interest accrued pursuant to thisΒ SectionΒ 2.08(h) shall be for the account of the Issuing Bank, except that interest accrued on and after the date of payment by any Lender pursuant toΒ SectionΒ 2.08(e) to reimburse the Issuing Bank shall be for the account of such Lender to the extent of such payment.
(i) Replacement of the Issuing Bank. The Issuing Bank may be replaced at any time by written agreement among the Borrower, the Administrative Agent, the replaced Issuing Bank and the successor Issuing Bank. The Administrative Agent shall notify the Lenders of any such replacement of the Issuing Bank. At the time any such replacement shall become effective, the Borrower shall pay all unpaid fees accrued for the account of the replaced Issuing Bank pursuant toΒ SectionΒ 3.05(b). From and after the effective date of any such replacement, (i)Β the successor Issuing Bank shall have all the rights and obligations of the Issuing Bank under this Agreement with respect to Letters of Credit to be issued thereafter and (ii)Β references herein to the term βIssuing Bankβ shall be deemed to refer to such successor or to any previous Issuing Bank, or to such successor and all previous Issuing Banks, as the context shall require. After the replacement of the Issuing Bank hereunder, the replaced Issuing Bank shall remain a party hereto and shall continue to have all the rights and obligations of the Issuing Bank under this Agreement with respect to Letters of Credit issued by it prior to such replacement, but shall not be required to issue additional Letters of Credit.
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(j) Cash Collateralization. If (i)Β any Event of Default shall occur and be continuing and the Borrower receives notice from the Administrative Agent or the Majority Lenders demanding the deposit of cash collateral pursuant to thisΒ SectionΒ 2.08(j), or (ii)Β the Borrower is required to pay to the Administrative Agent the excess attributable to an LC Exposure in connection with any prepayment pursuant toΒ SectionΒ 3.04(c) orΒ SectionΒ 3.04(e), then the Borrower shall deposit, in an account with the Administrative Agent, in the name of the Administrative Agent and for the benefit of the Lenders, an amount in cash equal to, in the case of an Event of Default, the LC Exposure, and in the case of a payment required byΒ SectionΒ 3.04(c) orΒ SectionΒ 3.04(e), the amount of such excess as provided inΒ SectionΒ 3.04(c) orΒ SectionΒ 3.04(e), as of such date plus any accrued and unpaid interest thereon; provided that the obligation to deposit such cash collateral shall become effective immediately, and such deposit shall become immediately due and payable, without demand or other notice of any kind, upon the occurrence of any Event of Default with respect to the Parent, OP LLC, the Borrower or any Subsidiary described inΒ SectionΒ 10.01(h) orΒ SectionΒ 10.01(i). The Borrower hereby grants to the Administrative Agent, for the benefit of the Issuing Bank and the Lenders, an exclusive first priority and continuing perfected security interest in and Lien on such account and all cash, checks, drafts, certificates and instruments, if any, from time to time deposited or held in such account, all deposits or wire transfers made thereto, any and all investments purchased with funds deposited in such account, all interest, dividends, cash, instruments, financial assets and other Property from time to time received, receivable or otherwise payable in respect of, or in exchange for, any or all of the foregoing, and all proceeds, products, accessions, rents, profits, income and benefits therefrom, and any substitutions and replacements therefor. The Borrowerβs obligation to deposit amounts pursuant to thisΒ SectionΒ 2.08(j) shall be absolute and unconditional, without regard to whether any beneficiary of any such Letter of Credit has attempted to draw down all or a portion of such amount under the terms of a Letter of Credit, and, to the fullest extent permitted by applicable law, shall not be subject to any defense or be affected by a right of set-off, counterclaim or recoupment which the Borrower or any of its Subsidiaries may now or hereafter have against any such beneficiary, the Issuing Bank, the Administrative Agent, the Lenders or any other Person for any reason whatsoever. Such deposit shall be held as collateral securing the payment and performance of the Borrowerβs and the Guarantorβs obligations under this Agreement and the other Loan Documents. The Administrative Agent shall have exclusive dominion and control, including the exclusive right of withdrawal, over such account. Other than any interest earned on the investment of such deposits, which investments shall be made at the option and sole discretion of the Administrative Agent and at the Borrowerβs risk and expense, such deposits shall not bear interest. Interest or profits, if any, on such investments shall accumulate in such account. Moneys in such account shall be applied by the Administrative Agent to reimburse the Issuing Bank for LC Disbursements for which it has not been reimbursed and, to the extent not so applied, shall be held for the satisfaction of the reimbursement obligations of the Borrower for the LC Exposure at such time or, if the maturity of the Loans has been accelerated, be applied to satisfy other obligations of the Borrower and the Guarantors under this Agreement or the other Loan Documents. If the Borrower is required to provide an amount of cash collateral hereunder as a result of the occurrence of an Event of Default, and the Borrower is not otherwise required to pay to the Administrative Agent the excess attributable to an LC Exposure in connection with any prepayment pursuant toΒ SectionΒ 3.04(c) orΒ SectionΒ 3.04(e), then such amount (to the extent not applied as aforesaid) shall be returned to the Borrower within three Business Days after all Events of Default have been cured or waived.
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(k) Defaulting Lenders. Notwithstanding any provision of this Agreement to the contrary, if any Lender becomes a Defaulting Lender, and any LC Exposure exists at the time a Lender becomes a Defaulting Lender, then:
(i) all or any part of such LC Exposure shall be reallocated among the non-Defaulting Lenders in accordance with their respective Applicable Percentages (calculated without regard to such Defaulting Lenderβs Commitment) but only to the extent (x)Β the sum of all non-Defaulting Lendersβ Revolving Credit Exposures does not exceed the total of all non-Defaulting Lendersβ Commitments and (y)Β the conditions set forth inΒ SectionΒ 6.02 are satisfied at such time;
(ii) if the reallocation described in clauseΒ (i) above cannot, or can only partially, be effected, the Borrower shall, without prejudice to any right or remedy available to it hereunder or under applicable law, within one (1)Β Business Day following notice by the Administrative Agent cash collateralize such Defaulting Lenderβs LC Exposure (after giving effect to any partial reallocation pursuant to clauseΒ (i) above) in accordance with the procedures set forth inΒ SectionΒ 2.08(j) for so long as such LC Exposure is outstanding;
(iii) if the Borrower cash collateralizes any portion of such Defaulting Lenderβs LC Exposure pursuant to thisΒ SectionΒ 2.08(k), the Borrower shall not be required to pay any fees to such Defaulting Lender pursuant toΒ SectionΒ 3.05(b) with respect to such Defaulting Lenderβs LC Exposure during the period such Defaulting Lenderβs LC Exposure is cash collateralized;
(iv) if the LC Exposure of the non-Defaulting Lenders is reallocated pursuant to thisΒ SectionΒ 2.08(k), then the fees payable to the Lenders pursuant toΒ SectionΒ 3.05(a) andΒ SectionΒ 3.05(b) shall be adjusted in accordance with such non-Defaulting Lendersβ Applicable Percentages; or
(v) if any Defaulting Lenderβs LC Exposure is neither cash collateralized nor reallocated pursuant to thisΒ SectionΒ 2.08(k), then, without prejudice to any rights or remedies of the Issuing Bank or any Lender hereunder, all commitment fees that otherwise would have been payable to such Defaulting Lender (solely with respect to the portion of such Defaulting Lenderβs Commitment that was utilized by such LC Exposure) underΒ SectionΒ 3.05(a) and letter of credit fees payable underΒ SectionΒ 3.05(b) with respect to such Defaulting Lenderβs LC Exposure shall be payable to the Issuing Bank until such LC Exposure is cash collateralized and/or reallocated.
If the Borrower, the Administrative Agent and the Issuing Bank agree in writing that a Lender is no longer a Defaulting Lender, the Administrative Agent will so notify the parties hereto, whereupon as of the effective date specified in such notice and subject to any conditions set forth therein (which may include arrangements with respect to any Cash Collateral), that Lender will, to the extent applicable, purchase at par that portion of outstanding Loans of the other Lenders or take such other actions as the Administrative Agent may determine to be necessary to cause the Loans and funded and unfunded participations in Letters of Credit to be held pro rata by the Lenders in accordance with the Commitments (without giving effect to SectionΒ 2.08(k)(i)), whereupon such Lender will cease to be a Defaulting Lender; provided that no adjustments will
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be made retroactively with respect to fees accrued or payments made by or on behalf of the Borrower while that Lender was a Defaulting Lender; and provided, further, that except to the extent otherwise expressly agreed by the affected parties, no change hereunder from Defaulting Lender to Lender will constitute a waiver or release of any claim of any party hereunder arising from that Lenderβs having been a Defaulting Lender.
Notwithstanding any provision of this Agreement to the contrary, so long as any Lender is a Defaulting Lender, the Issuing Bank shall not be required to issue, amend or increase any Letter of Credit, unless it is satisfied that the related exposure will be 100% covered by the Commitments of the non-Defaulting Lenders and/or cash collateral will be provided by the Borrower in accordance withΒ SectionΒ 2.08(j), and participating interests in any such newly issued or increased Letter of Credit shall be allocated among non-Defaulting Lenders in a manner consistent withΒ SectionΒ 2.08(k)(i) (and any Defaulting Lender shall not participate therein). Subject toΒ SectionΒ 12.19, no reallocation hereunder shall constitute a waiver or release of any claim by any party hereunder against a Defaulting Lender arising from such Lender having become a Defaulting Lender.
SectionΒ 2.09 Loans and Borrowings Under Existing Credit Agreement. On the Effective Date, the Administrative Agent, for the ratable benefit of the Secured Parties, has acquired from the lenders under the Existing Credit Agreement the notes, commitments and Liens of the Borrower and the Guarantors existing thereunder. In connection with such acquisition and the amendment and restatement of the Existing Credit Agreement as so assigned:
(a) the Borrower shall pay all accrued and unpaid commitments fees, break funding fees and all other fees that are outstanding under the Existing Credit Agreement for the account of each lender under the Existing Credit Agreement;
(b) each βABR Borrowingβ outstanding under the Existing Credit Agreement shall be extended and renewed so as to continue as a new ABR Borrowing under this Agreement;
(c) each βEurodollar Borrowingβ outstanding under the Existing Credit Agreement shall be deemed repaid on the Effective Date and funded as a new Eurodollar Borrowing under this Agreement;
(d) each βLetter of Creditβ outstanding under the Existing Credit Agreement shall be deemed issued and shall be continued as a Letter of Credit under this Agreement;
(e) the Borrower shall pay all accrued and unpaid letter of credit fees that are outstanding under the Existing Credit Agreement; and
(f) the Existing Credit Agreement and the commitments thereunder shall be superseded by this Agreement and such commitments shall terminate.
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ARTICLEΒ III
Payments of Principal and Interest; Prepayments; Fees
SectionΒ 3.01 Repayment of Loans. The Borrower hereby unconditionally promises to pay to the Administrative Agent for the account of each Lender the then unpaid principal amount of each Loan on the Termination Date.
SectionΒ 3.02 Interest.
(a) ABR Loans. The Loans comprising each ABR Borrowing shall bear interest at the Alternate Base Rate plus the Applicable Margin, but in no event to exceed the Highest Lawful Rate.
(b) Eurodollar Loans. The Loans comprising each Eurodollar Borrowing shall bear interest at the Adjusted LIBO Rate for the Interest Period in effect for such Borrowing plus the Applicable Margin, but in no event to exceed the Highest Lawful Rate.
(c) Post-Default Rate and Borrowing Base Deficiency Rate. Notwithstanding the foregoing, (i)Β if an Event of Default has occurred and is continuing, then all Loans outstanding shall bear interest, after as well as before judgment, at a rate per annum equal to two percent (2%) plus the rate applicable to ABR Loans as provided inΒ SectionΒ 3.02(a), but in no event to exceed the Highest Lawful Rate, and (ii)Β during any Borrowing Base Deficiency, all Loans outstanding at such time shall, upon the election of either the Administrative Agent or Majority Lenders, bear interest, after as well as before judgment, at the rate then applicable to such Loans, plus the Applicable Margin, if any, plus an additional two percent (2%), but in no event to exceed the Highest Lawful Rate.
(d) Interest Payment Dates. Accrued interest on each Loan shall be payable in arrears on each Interest Payment Date for such Loan and on the Termination Date; provided that (i)Β interest accrued pursuant toΒ SectionΒ 3.02(c) shall be payable on demand, (ii)Β in the event of any repayment or prepayment of any Loan (other than an optional prepayment of an ABR Loan prior to the Termination Date), accrued interest on the principal amount repaid or prepaid shall be payable on the date of such repayment or prepayment, and (iii)Β in the event of any conversion of any Eurodollar Loan prior to the end of the current Interest Period therefor, accrued interest on such Loan shall be payable on the effective date of such conversion.
(e) Interest Rate Computations. All interest hereunder shall be computed on the basis of a year of 360 days, unless such computation would exceed the Highest Lawful Rate, in which case interest shall be computed on the basis of a year of 365 days (or 366 days in a leap year), except that interest computed by reference to the Alternate Base Rate at times when the Alternate Base Rate is based on the Prime Rate shall be computed on the basis of a year of 365 days (or 366 days in a leap year), and in each case shall be payable for the actual number of days elapsed (including the first day but excluding the last day). The applicable Alternate Base Rate, Adjusted LIBO Rate or LIBO Rate shall be determined by the Administrative Agent, and such determination shall be conclusive absent manifest error, and be binding upon the parties hereto.
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SectionΒ 3.03 Alternate Rate of Interest. If prior to the commencement of any Interest Period for a Eurodollar Borrowing:
(a) the Administrative Agent determines (which determination shall be conclusive absent manifest error) that adequate and reasonable means do not exist for ascertaining the Adjusted LIBO Rate or the LIBO Rate for such Interest Period; or
(b) the Administrative Agent is advised by the Majority Lenders that the Adjusted LIBO Rate or LIBO Rate, as applicable, for such Interest Period will not adequately and fairly reflect the cost to such Lenders of making or maintaining their Loans included in such Borrowing for such Interest Period;
then the Administrative Agent shall give notice thereof to the Borrower and the Lenders by telephone or telecopy as promptly as practicable thereafter and, until the Administrative Agent notifies the Borrower and the Lenders that the circumstances giving rise to such notice no longer exist, (i)Β any Interest Election Request that requests the conversion of any Borrowing to, or continuation of any Borrowing as, a Eurodollar Borrowing shall be ineffective, and (ii)Β if any Borrowing Request requests a Eurodollar Borrowing, such Borrowing shall be made as an ABR Borrowing.
SectionΒ 3.04 Prepayments.
(a) Optional Prepayments. The Borrower shall have the right at any time and from time to time to prepay any Borrowing in whole or in part, subject to prior notice in accordance withΒ SectionΒ 3.04(b).
(b) Notice and Terms of Optional Prepayment. The Borrower shall notify the Administrative Agent by telephone or e-mail (confirmed by facsimile) of any prepayment hereunder (i)Β in the case of prepayment of a Eurodollar Borrowing, not later than 12:00 noon, New York City time, three Business Days before the date of prepayment, or (ii)Β in the case of prepayment of an ABR Borrowing, not later than 12:00 noon, New York City time, one Business Day before the date of prepayment. Each such notice shall be irrevocable and shall specify the prepayment date and the principal amount of each Borrowing or portion thereof to be prepaid. Promptly following receipt of any such notice relating to a Borrowing, the Administrative Agent shall advise the Lenders of the contents thereof. Each partial prepayment of any Borrowing shall be in an amount that would be permitted in the case of an advance of a Borrowing of the same Type as provided inΒ SectionΒ 2.02. Each prepayment of a Borrowing shall be applied ratably to the Loans included in the prepaid Borrowing. Prepayments shall be accompanied by accrued interest to the extent required byΒ SectionΒ 3.02.
(c) Mandatory Prepayments.
(i) If, after giving effect to any termination or reduction of the Aggregate Maximum Credit Amounts pursuant toΒ SectionΒ 2.06(b), or any reduction of the Aggregate Elected Commitment Amounts pursuant toΒ SectionΒ 2.06(c), the total Revolving Credit Exposures exceeds the total Commitments, then the Borrower shall (A)Β prepay the Borrowings on the date of such termination or reduction in an aggregate principal amount equal to such excess, and (B)Β if any excess remains after prepaying all of the Borrowings as a result of an LC Exposure, pay to the Administrative Agent on behalf of the Lenders an amount equal to such excess to be held as cash collateral as provided inΒ SectionΒ 2.08(j).
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(ii) Upon any redetermination of or adjustment to the amount of the Borrowing Base in accordance withΒ SectionΒ 2.07 orΒ SectionΒ 8.13(c), if the total Revolving Credit Exposures exceeds the redetermined or adjusted Borrowing Base, then the Borrower shall (A)Β prepay the Borrowings in an aggregate principal amount equal to such excess, and (B)Β if any excess remains after prepaying all of the Borrowings as a result of an LC Exposure, pay to the Administrative Agent on behalf of the Lenders an amount equal to such excess to be held as cash collateral as provided inΒ SectionΒ 2.08(j). The Borrower shall be obligated to make such prepayment and/or deposit of cash collateral within ninety days (90)Β following its receipt of the New Borrowing Base Notice in accordance withΒ SectionΒ 2.07(d) or the date the adjustment occurs; provided that all payments required to be made pursuant to thisΒ SectionΒ 3.04(c)(ii) must be made on or prior to the Termination Date.
(iii) Upon any adjustments to the Borrowing Base pursuant toΒ SectionΒ 9.12(d), SectionΒ 9.12(f) or SectionΒ 9.12(g), if the total Revolving Credit Exposures exceeds the Borrowing Base as adjusted, then the Borrower shall (A)Β prepay the Borrowings in an aggregate principal amount equal to such excess, and (B)Β if any excess remains after prepaying all of the Borrowings as a result of an LC Exposure, pay to the Administrative Agent on behalf of the Lenders an amount equal to such excess to be held as cash collateral as provided inΒ SectionΒ 2.08(j). The Borrower shall be obligated to make such prepayment and/or deposit of cash collateral on the date it or any Subsidiary receives cash proceeds as a result of a disposition in accordance withΒ SectionΒ 9.12(d), SectionΒ 9.12(f) or SectionΒ 9.12(g); provided that all payments required to be made pursuant to thisΒ SectionΒ 3.04(c)(iii) must be made on or prior to the Termination Date.
(iv) Upon any adjustments to the Borrowing Base pursuant toΒ SectionΒ 2.07(e), if the total Revolving Credit Exposures exceeds the Borrowing Base as adjusted, then the Borrower shall (A)Β prepay the Borrowings in an aggregate principal amount equal to such excess, and (B)Β if any excess remains after prepaying all of the Borrowings as a result of an LC Exposure, pay to the Administrative Agent on behalf of the Lenders an amount equal to such excess to be held as cash collateral as provided inΒ SectionΒ 2.08(j). The Borrower shall be obligated to make such prepayment and/or deposit of cash collateral, if required, on the date it issues such Senior Notes; provided that all payments required to be made pursuant to thisΒ SectionΒ 3.04(c)(iv) must be made on or prior to the Termination Date.
(v) Each prepayment of Borrowings pursuant to thisΒ SectionΒ 3.04(c) shall be applied, first, ratably to any ABR Borrowings then outstanding, and, second, to any Eurodollar Borrowings then outstanding, and if more than one Eurodollar Borrowing is then outstanding, to each such Eurodollar Borrowing in order of priority beginning with the Eurodollar Borrowing with the least number of days remaining in the Interest Period applicable thereto and ending with the Eurodollar Borrowing with the most number of days remaining in the Interest Period applicable thereto.
(vi) Each prepayment of Borrowings pursuant to thisΒ SectionΒ 3.04(c) shall be applied ratably to the Loans included in the prepaid Borrowings. Prepayments pursuant to thisΒ SectionΒ 3.04(c) shall be accompanied by accrued interest to the extent required byΒ SectionΒ 3.02.
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(d) No Premium or Penalty. Prepayments permitted or required under thisΒ SectionΒ 3.04 shall be without premium or penalty, except as required underΒ SectionΒ 5.02.
(e) Excess Cash Balances. If at any time while there are any Borrowings outstanding, the Borrower or any other Credit Party have any cash or cash equivalents (other than cash collateral) in excess of $100,000,000 in the aggregate at any time (other than (i)Β any cash set aside to pay royalty obligations of the Credit Parties then due and owing to unaffiliated third parties and for which the Credit Parties have issued checks or have initiated wires or ACH transfers (or will issue checks or initiate wires or ACH transfers within one Business Day) in order to pay, (ii)Β any cash set aside to pay in the ordinary course of business amounts (other than royalty obligations) of the Credit Parties then due and owing to unaffiliated third parties and for which the Credit Parties have issued checks or have initiated wires or ACH transfers in order to pay and (iii)Β any cash of the Credit Parties constituting purchase price deposits held in escrow by an unaffiliated third party pursuant to a binding and enforceable purchase and sale agreement with an unaffiliated third party containing customary provisions regarding the payment and refunding of such deposits) (the βExcess Cashβ), then the Borrower shall prepay the Borrowings in an amount equal to the Excess Cash; provided that to the extent that any Excess Cash results from the receipt of the proceeds of any sale or disposition of Property, then the Borrower shall not be required to prepay such Excess Cash until the fifth Business Day following the receipt of such proceeds. Each prepayment of Borrowings pursuant to thisΒ SectionΒ 3.04(e) shall be applied as directed by the Borrower, provided that if the Borrower does not provide instructions for the application of such prepayment, such prepayment shall be applied, first, ratably to any ABR Borrowings then outstanding, and, second, to any Eurodollar Borrowings then outstanding, and if more than one Eurodollar Borrowing is then outstanding, to each such Eurodollar Borrowing in order of priority beginning with the Eurodollar Borrowing with the least number of days remaining in the Interest Period applicable thereto and ending with the Eurodollar Borrowing with the most number of days remaining in the Interest Period applicable thereto. Each prepayment of Borrowings pursuant to thisΒ SectionΒ 3.04(e) shall be applied ratably to the Loans included in the prepaid Borrowings. Prepayments pursuant to thisΒ SectionΒ 3.04(e) shall be accompanied by accrued interest to the extent required byΒ SectionΒ 3.02.
SectionΒ 3.05 Fees.
(a) Commitment Fees. The Borrower agrees to pay to the Administrative Agent for the account of each Lender a commitment fee, which shall accrue at the applicable Commitment Fee Rate on the average daily amount of the unused amount of the Commitment of such Lender during the period from and including the date of this Agreement to but excluding the Termination Date. Accrued commitment fees shall be payable in arrears on the last day of March, June, September and December of each year and on the Termination Date, commencing on the first such date to occur after the date hereof. All commitment fees shall be computed on the basis of a year of 360 days, unless such computation would exceed the Highest Lawful Rate, in which case interest shall be computed on the basis of a year of 365 days (or 366 days in a leap year), and shall be payable for the actual number of days elapsed (including the first day but excluding the last day).
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(b) Letter of Credit Fees. The Borrower agrees to pay (i)Β to the Administrative Agent for the account of each Lender a participation fee with respect to its participations in Letters of Credit, which shall accrue at the same Applicable Margin used to determine the interest rate applicable to Eurodollar Loans on the average daily amount of such Lenderβs LC Exposure (excluding any portion thereof attributable to unreimbursed LC Disbursements) during the period from and including the date of this Agreement to but excluding the later of the date on which such Lenderβs Commitment terminates and the date on which such Lender ceases to have any LC Exposure (during the continuation of an Event of Default, such participation fee shall increase by 2% per annum over the then applicable rate), (ii)Β to the Issuing Bank a fronting fee, which shall accrue at the rate of 0.25% per annum on the average daily amount of the LC Exposure (excluding any portion thereof attributable to unreimbursed LC Disbursements) during the period from and including the date of this Agreement to but excluding the later of the date of termination of the Commitments and the date on which there ceases to be any LC Exposure, and (iii)Β to the Issuing Bank, for its own account, its standard fees with respect to the issuance, amendment, renewal or extension of any Letter of Credit or processing of drawings thereunder. Participation fees and fronting fees accrued through and including the last day of March, June, September and December of each year shall be payable on the third Business Day following such last day, commencing on the first such date to occur after the date of this Agreement; provided that all such fees shall be payable on the Termination Date and any such fees accruing after the Termination Date shall be payable on demand. Any other fees payable to the Issuing Bank pursuant to thisΒ SectionΒ 3.05(b) shall be payable within 10 days after demand. All participation fees and fronting fees shall be computed on the basis of a year of 360 days, unless such computation would exceed the Highest Lawful Rate, in which case interest shall be computed on the basis of a year of 365 days (or 366 days in a leap year), and shall be payable for the actual number of days elapsed (including the first day but excluding the last day).
(c) Administrative Agent Fees. The Borrower agrees to pay to the Administrative Agent, for its own account, fees payable in the amounts and at the times separately agreed upon between the Borrower and the Administrative Agent.
(d) Defaulting Lender Fees. Subject toΒ SectionΒ 2.08(k), the Borrower shall not be obligated to pay the Administrative Agent any Defaulting Lenderβs ratable share of the fees described inΒ SectionΒ 3.05(a) andΒ (b) for the period commencing on the day such Defaulting Lender becomes a Defaulting Lender and continuing for so long as such Lender continues to be a Defaulting Lender.
ARTICLEΒ IV
Payments; Pro Rata Treatment; Sharing of Set-offs
SectionΒ 4.01 Payments Generally; Pro Rata Treatment; Sharing of Set-offs.
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(a) Payments by the Borrower. The Borrower shall make each payment required to be made by it hereunder (whether of principal, interest, fees or reimbursement of LC Disbursements, or of amounts payable underΒ SectionΒ 5.01,Β SectionΒ 5.02,Β SectionΒ 5.03 or otherwise) prior to 12:00 noon, New York City time, on the date when due, in immediately available funds, without defense, deduction, recoupment, set-off or counterclaim. Fees, once paid, shall be fully earned and shall not be refundable under any circumstances absent manifest error. Any amounts received after such time on any date may, in the discretion of the Administrative Agent, be deemed to have been received on the next succeeding Business Day for purposes of calculating interest thereon. All such payments shall be made to the Administrative Agent at its offices specified inΒ SectionΒ 12.01, except payments to be made directly to the Issuing Bank as expressly provided herein and except that payments pursuant toΒ SectionΒ 5.01,Β SectionΒ 5.02,Β SectionΒ 5.03 andΒ SectionΒ 12.03 shall be made directly to the Persons entitled thereto. The Administrative Agent shall distribute any such payments received by it for the account of any other Person to the appropriate recipient promptly following receipt thereof. If any payment hereunder shall be due on a day that is not a Business Day, the date for payment shall be extended to the next succeeding Business Day, and, in the case of any payment accruing interest, interest thereon shall be payable for the period of such extension. All payments hereunder shall be made in dollars.
(b) Application of Insufficient Payments. If at any time insufficient funds are received by and available to the Administrative Agent to pay fully all amounts of principal, unreimbursed LC Disbursements, interest and fees then due hereunder, such funds shall be applied (i)Β first, towards payment of interest and fees then due hereunder, ratably among the parties entitled thereto in accordance with the amounts of interest and fees then due to such parties, and (ii)Β second, towards payment of principal and unreimbursed LC Disbursements then due hereunder, ratably among the parties entitled thereto in accordance with the amounts of principal and unreimbursed LC Disbursements then due to such parties.
(c) Sharing of Payments by Lenders. If any Lender shall, by exercising any right of set-off or counterclaim or otherwise, obtain payment in respect of any principal of or interest on any of its Loans or participations in LC Disbursements resulting in such Lender receiving payment of a greater proportion of the aggregate amount of its Loans and participations in LC Disbursements and accrued interest thereon than the proportion received by any other Lender, then the Lender receiving such greater proportion shall purchase (for cash at face value) participations in the Loans and participations in LC Disbursements of other Lenders to the extent necessary so that the benefit of all such payments shall be shared by the Lenders ratably in accordance with the aggregate amount of principal of and accrued interest on their respective Loans and participations in LC Disbursements; provided that (i)Β if any such participations are purchased and all or any portion of the payment giving rise thereto is recovered, such participations shall be rescinded and the purchase price restored to the extent of such recovery, without interest, and (ii)Β the provisions of thisΒ SectionΒ 4.01(c) shall not be construed to apply to any payment made by the Borrower pursuant to and in accordance with the express terms of this Agreement or any payment obtained by a Lender as consideration for the assignment of or sale of a participation in any of its Loans or participations in LC Disbursements to any assignee or participant, other than to the Borrower or any Subsidiary or Affiliate thereof (as to which the provisions of thisΒ SectionΒ 4.01(c) shall apply). The Borrower consents to the foregoing and agrees, to the extent it may effectively do so under applicable law, that any Lender acquiring a participation pursuant to the foregoing arrangements may exercise against the Borrower rights of set-off and counterclaim with respect to such participation as fully as if such Lender were a direct creditor of the Borrower in the amount of such participation.
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SectionΒ 4.02 Presumption of Payment by the Borrower. Unless the Administrative Agent shall have received notice from the Borrower prior to the date on which any payment is due to the Administrative Agent for the account of the Lenders or the Issuing Bank that the Borrower will not make such payment, the Administrative Agent may assume that the Borrower has made such payment on such date in accordance herewith and may, in reliance upon such assumption, distribute to the Lenders or the Issuing Bank, as the case may be, the amount due. In such event, if the Borrower has not in fact made such payment, then each of the Lenders or the Issuing Bank, as the case may be, severally agrees to repay to the Administrative Agent forthwith on demand the amount so distributed to such Lender or Issuing Bank with interest thereon, for each day from and including the date such amount is distributed to it to but excluding the date of payment to the Administrative Agent, at the greater of the Federal Funds Effective Rate and a rate determined by the Administrative Agent in accordance with banking industry rules on interbank compensation.
SectionΒ 4.03 Certain Deductions by the Administrative Agent. If any Lender shall fail to make any payment required to be made by it pursuant toΒ SectionΒ 2.05(b),Β SectionΒ 2.08(d),Β SectionΒ 2.08(e) orΒ SectionΒ 4.02, or otherwise hereunder, then the Administrative Agent may, in its discretion (notwithstanding any contrary provision hereof), apply any amounts thereafter received by the Administrative Agent for the account of such Lender to satisfy such Lenderβs obligations under such Sections until all such unsatisfied obligations are fully paid. If at any time prior to the acceleration or maturity of the Loans, the Administrative Agent shall receive any payment in respect of principal of a Loan or a reimbursement of an LC Disbursement while one or more Defaulting Lenders shall be party to this Agreement, the Administrative Agent shall apply such payment first to the Borrowing(s) for which such Defaulting Lender(s) shall have failed to fund its pro rata share until such time as such Borrowing(s) are paid in full or each Lender (including each Defaulting Lender) is owed its Applicable Percentage of all Loans then outstanding. After acceleration or maturity of the Loans, all principal will be paid ratably as provided inΒ SectionΒ 10.02(c).
SectionΒ 4.04 Disposition of Proceeds. The Security Instruments contain an assignment by the Borrower and/or the Guarantors unto and in favor of the Administrative Agent for the benefit of the Secured Parties of all of the Borrowerβs or each Guarantorβs interest in and to production and all proceeds attributable thereto which may be produced from or allocated to the Mortgaged Property. The Security Instruments further provide in general for the application of such proceeds to the satisfaction of the Indebtedness and other obligations described therein and secured thereby. Notwithstanding the assignment contained in such Security Instruments, until the occurrence of an Event of Default, (a)Β the Administrative Agent and the Lenders agree that they will neither notify the purchaser or purchasers of such production nor take any other action to cause such proceeds to be remitted to the Administrative Agent or the Lenders, but the Lenders will instead permit such proceeds to be paid to the Borrower and the Subsidiaries and (b)Β the Lenders hereby authorize the Administrative Agent to take such actions as may be necessary to cause such proceeds to be paid to the Borrower and/or such Subsidiaries.
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ARTICLEΒ V
Increased Costs; Break Funding Payments; Taxes
SectionΒ 5.01 Increased Costs.
(a) Eurodollar Changes in Law. If any Change in Law shall:
(i) impose, modify or deem applicable any reserve, special deposit or similar requirement against assets of, deposits with or for the account of, or credit extended by, any Lender (except any such reserve requirement reflected in the Adjusted LIBO Rate); or
(ii) impose on any Lender or the London interbank market any other condition affecting this Agreement or Eurodollar Loans made by such Lender;
and the result of any of the foregoing shall be to increase the cost to such Lender of making or maintaining any Eurodollar Loan (or of maintaining its obligation to make any such Loan) or to reduce the amount of any sum received or receivable by such Lender (whether of principal, interest or otherwise), then the Borrower will pay to such Lender such additional amount or amounts as will compensate such Lender for such additional costs incurred or reduction suffered.
(b) Capital Requirements. If any Lender or the Issuing Bank determines that any Change in Law regarding capital or liquidity requirements has or would have the effect of reducing the rate of return on such Lenderβs or the Issuing Bankβs capital or on the capital of such Lenderβs or the Issuing Bankβs holding company, if any, as a consequence of this Agreement or the Loans made by, or participations in Letters of Credit held by, such Lender, or the Letters of Credit issued by the Issuing Bank, to a level below that which such Lender or the Issuing Bank or such Lenderβs or the Issuing Bankβs holding company could have achieved but for such Change in Law (taking into consideration such Lenderβs or the Issuing Bankβs policies and the policies of such Lenderβs or the Issuing Bankβs holding company with respect to capital adequacy and liquidity), then from time to time the Borrower will pay to such Lender or the Issuing Bank, as the case may be, such additional amount or amounts as will compensate such Lender or the Issuing Bank or such Lenderβs or the Issuing Bankβs holding company for any such reduction suffered.
(c) Certificates. A certificate of a Lender or the Issuing Bank setting forth the amount or amounts necessary to compensate such Lender or the Issuing Bank or its holding company, as the case may be, as specified inΒ SectionΒ 5.01(a) or (b)Β shall be delivered to the Borrower and shall be conclusive absent manifest error. The Borrower shall pay such Lender or the Issuing Bank, as the case may be, the amount shown as due on any such certificate within 10 days after receipt thereof.
(d) Effect of Failure or Delay in Requesting Compensation. Failure or delay on the part of any Lender or the Issuing Bank to demand compensation pursuant to thisΒ SectionΒ 5.01 shall not constitute a waiver of such Lenderβs or the Issuing Bankβs right to demand such compensation; provided that the Borrower shall not be required to compensate a Lender or the Issuing Bank pursuant to thisΒ SectionΒ 5.01 for any increased costs or reductions incurred more than 180 days prior to the date that such Lender or the Issuing Bank, as the case may be, notifies the Borrower of the Change in Law giving rise to such increased costs or
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reductions and of such Lenderβs or the Issuing Bankβs intention to claim compensation therefor; provided, further that, if the Change in Law giving rise to such increased costs or reductions is retroactive, then the 180-day period referred to above shall be extended to include the period of retroactive effect thereof.
SectionΒ 5.02 Break Funding Payments. In the event of (a)Β the payment of any principal of any Eurodollar Loan other than on the last day of an Interest Period applicable thereto (including as a result of an Event of Default), (b)Β the conversion of any Eurodollar Loan into an ABR Loan other than on the last day of the Interest Period applicable thereto, (c)Β the failure to borrow, convert, continue or prepay any Eurodollar Loan on the date specified in any notice delivered pursuant hereto, or (d)Β the assignment of any Eurodollar Loan other than on the last day of the Interest Period applicable thereto as a result of a request by the Borrower pursuant toΒ SectionΒ 5.04(b), then, in any such event, the Borrower shall compensate each Lender for the loss, cost and expense attributable to such event. In the case of a Eurodollar Loan, such loss, cost or expense to any Lender shall be deemed to include an amount determined by such Lender to be the excess, if any, of (i)Β the amount of interest which would have accrued on the principal amount of such Loan had such event not occurred, at the Adjusted LIBO Rate that would have been applicable to such Loan, for the period from the date of such event to the last day of the then current Interest Period therefor (or, in the case of a failure to borrow, convert or continue, for the period that would have been the Interest Period for such Loan), over (ii)Β the amount of interest which would accrue on such principal amount for such period at the interest rate which such Lender would bid were it to bid, at the commencement of such period, for dollar deposits of a comparable amount and period from other banks in the eurodollar market.
A certificate of any Lender setting forth any amount or amounts that such Lender is entitled to receive pursuant to thisΒ SectionΒ 5.02 and reasonably detailed calculations therefore, upon request of the Borrower, shall be delivered to the Borrower and shall be conclusive absent manifest error. The Borrower shall pay such Lender the amount shown as due on any such certificate within 10 days after receipt thereof.
SectionΒ 5.03 Taxes.
(a) Payments Free of Taxes. Any and all payments by or on account of any obligation of the Borrower or any Guarantor under any Loan Document shall be made free and clear of and without deduction for any Indemnified Taxes or Other Taxes; provided that if the Borrower or any Guarantor shall be required to deduct any Indemnified Taxes or Other Taxes from such payments, then (i)Β the sum payable shall be increased as necessary so that after making all required deductions (including deductions applicable to additional sums payable under thisΒ SectionΒ 5.03), the Administrative Agent, Lender or Issuing Bank (as the case may be) receives an amount equal to the sum it would have received had no such deductions been made, (ii)Β the Borrower or such Guarantor shall make such deductions and (iii)Β the Borrower or such Guarantor shall pay the full amount deducted to the relevant Governmental Authority in accordance with applicable law.
(b) Payment of Other Taxes by the Borrower. The Borrower shall pay any Other Taxes to the relevant Governmental Authority in accordance with applicable law.
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(c) Indemnification by the Borrower. The Borrower shall indemnify the Administrative Agent, each Lender and the Issuing Bank, within 10 days after written demand therefor, for the full amount of any Indemnified Taxes or Other Taxes paid by the Administrative Agent, such Lender or the Issuing Bank, as the case may be, on or with respect to any payment by or on account of any obligation of the Borrower hereunder (including Indemnified Taxes or Other Taxes imposed or asserted on or attributable to amounts payable under thisΒ SectionΒ 5.03) and any penalties, interest and reasonable expenses arising therefrom or with respect thereto. A written demand under thisΒ SectionΒ 5.03(c) shall include a certificate of the Administrative Agent, a Lender or the Issuing Bank specifying the amount and calculation of such payment or liability under thisΒ SectionΒ 5.03 shall be delivered to the Borrower and shall be conclusive absent manifest error.
(d) Indemnification by the Lenders. Each Lender shall severally indemnify the Administrative Agent, within 10 days after demand therefor, for (i)Β any Indemnified Taxes attributable to such Lender (but only to the extent that Borrower has not already indemnified the Administrative Agent for such Indemnified Taxes and without limiting the obligation of the Borrower to do so), (ii)Β any Taxes attributable to such Lenderβs failure to comply with the provisions ofΒ SectionΒ 12.04(c) relating to the maintenance of a Participant Register and (iii)Β any Excluded Taxes attributable to such Lender, in each case, that are payable or paid by the Administrative Agent in connection with any Loan Document, and any reasonable expenses arising therefrom or with respect thereto, whether or not such Taxes were correctly or legally imposed or asserted by the relevant Governmental Authority. A certificate as to the amount of such payment or liability delivered to any Lender by the Administrative Agent shall be conclusive absent manifest error. Each Lender hereby authorizes the Administrative Agent to set off and apply any and all amounts at any time owing to such Lender under any Loan Document or otherwise payable by the Administrative Agent to the Lender from any other source against any amount due to the Administrative Agent under this paragraphΒ (d).
(e) Evidence of Payments. As soon as practicable after any payment of Indemnified Taxes or Other Taxes by the Borrower or a Guarantor to a Governmental Authority, the Borrower shall deliver to the Administrative Agent the original or a certified copy of a receipt issued by such Governmental Authority evidencing such payment, a copy of the return reporting such payment or other evidence of such payment reasonably satisfactory to the Administrative Agent.
(f) Status of Lenders.
(i) Any Lender that is entitled to an exemption from or reduction of withholding tax with respect to payments made under any Loan Document shall deliver to the Withholding Agent, at the time or times reasonably requested by the Withholding Agent, such properly completed and executed documentation reasonably requested by the Withholding Agent as will permit such payments to be made without withholding or at a reduced rate of withholding. In addition, any Lender, if reasonably requested by the Withholding Agent, shall deliver such other documentation prescribed by applicable law or reasonably requested by the Withholding Agent as will enable the Withholding Agent to determine whether or not such Lender is subject to backup withholding or information reporting requirements. Notwithstanding anything to the contrary in the preceding two sentences, the completion, execution and
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submission of such documentation (other than such documentation set forth inΒ SectionΒ 5.03(f)(ii)(A) andΒ SectionΒ 5.03(f)(ii)(B) andΒ SectionΒ 5.03(g) below) shall not be required if in the Lenderβs reasonable judgment such completion, execution or submission would subject such Lender to any material unreimbursed cost or expense or would materially prejudice the legal or commercial position of such Lender.
(ii) Without limiting the generality of the foregoing, in the event that the Borrower is a βUnited States personβ as defined in SectionΒ 7701(a)(30) of the Code,
(A) any Lender that is a βUnited States personβ as defined in SectionΒ 7701(a)(3) of the Code shall deliver to the Withholding Agent on or prior to the date on which such Lender becomes a Lender under this Agreement (and from time to time thereafter upon the reasonable request of the Withholding Agent), executed originals of IRS Form W-9 certifying that such Lender is exempt fromΒ U.S. federal backup withholding tax;
(B) any Foreign Lender shall, to the extent it is legally entitled to do so, deliver to the Withholding Agent (in such number of copies as shall be requested by the recipient) on or prior to the date on which such Foreign Lender becomes a Lender under this Agreement (and from time to time thereafter upon the reasonable request of the Withholding Agent), whichever of the following is applicable:
(1) in the case of a Foreign Lender claiming the benefits of an income tax treaty to which the United States is a party (x)Β with respect to payments of interest under any Loan Document, executed originals of IRS Form W-8BEN (or IRS Form W-8BEN-E, as applicable) establishing an exemption from, or reduction of, U.S. federal withholding Tax pursuant to the βinterestβ article of such tax treaty and (y)Β with respect to any other applicable payments under any Loan Document, IRS Form W-8BEN (or IRS Form W-8BEN-E, as applicable) establishing an exemption from, or reduction of, U.S. federal withholding tax pursuant to the βbusiness profitsβ or βother incomeβ article of such tax treaty;
(2) executed originals of IRS Form W-8ECI;
(3) in the case of a Foreign Lender claiming the benefits of the exemption for portfolio interest under SectionΒ 881(c) of the Code, (x)Β a certificate substantially in the form of ExhibitΒ I-1 to the effect that such Foreign Lender is not a βbankβ within the meaning of SectionΒ 881(c)(3)(A) of the Code, a β10Β percent shareholderβ of the Borrower within the meaning of SectionΒ 871(h)(3)(B) of the Code, or a βcontrolled foreign corporationβ described in SectionΒ 881(c)(3)(C) of the Code (a βU.S. Tax Compliance Certificateβ) and (y)Β executed originals of IRS Form W-8BEN; or
(4) to the extent a Foreign Lender is not the beneficial owner, executed originals of IRS Form W-8IMY, accompanied by IRS Form W-8ECI, IRS Form W-8BEN (or IRS Form W-8BEN-E, as applicable), aΒ U.S. Tax Compliance Certificate substantially in the form of ExhibitΒ I-2 or ExhibitΒ I-3, IRS Form W-9, and/or other certification documents from each beneficial owner, as applicable; provided that if the Foreign Lender is a partnership and one or more direct or indirect partners of such Foreign Lender are claiming the portfolio interest exemption, such Foreign Lender may provide aΒ U.S. Tax Compliance Certificate substantially in the form of ExhibitΒ I-4 on behalf of each such direct and indirect partner; and
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(C) any Foreign Lender shall, to the extent it is legally entitled to do so, deliver to the Withholding Agent (in such number of copies as shall be requested by the recipient) on or prior to the date on which such Foreign Lender becomes a Lender under this Agreement (and from time to time thereafter upon the reasonable request of the Withholding Agent), executed originals of any other form prescribed by applicable law as a basis for claiming exemption from or a reduction inΒ U.S. federal withholding tax, duly completed, together with such supplementary documentation as may be prescribed by applicable law to permit the Withholding Agent to determine the withholding or deduction required to be made.
Each Lender agrees that if any form or certification it previously delivered expires or becomes obsolete or inaccurate in any respect, it shall update such form or certification or promptly notify the Withholding Agent in writing of its legal inability to do so.
(g) FATCA. If a payment made to a Lender under this Agreement would be subject to United States federal withholding tax imposed by FATCA if such Lender fails to comply with the applicable reporting requirements of FATCA (including those contained in SectionΒ 1471(b) or 1472(b) of the Code, as applicable), such Lender shall deliver to the Withholding Agent, at the time or times prescribed by law and at such time or times reasonably requested by the Withholding Agent, such documentation prescribed by applicable law (including as prescribed by SectionΒ 1471(b)(3)(C)(i) of the Code) and such additional documentation reasonably requested by the Withholding Agent as may be necessary for the Withholding Agent to comply with its obligations under FATCA, to determine that such Lender has complied with such Lenderβs obligations under FATCA or to determine the amount to deduct and withhold from such payment. Solely for purposes of thisΒ SectionΒ 5.03(g), βFATCAβ shall include any amendments made to FATCA after the date of this Agreement.
SectionΒ 5.04 Mitigation Obligations; Replacement of Lenders.
(a) Designation of Different Lending Office. If any Lender requests compensation underΒ SectionΒ 5.01, or if the Borrower is required to pay any additional amount to any Lender or any Governmental Authority for the account of any Lender pursuant toΒ SectionΒ 5.03, then such Lender shall use reasonable efforts to designate a different lending office for funding or booking its Loans hereunder or to assign its rights and obligations hereunder to another of its offices, branches or affiliates, if, in the judgment of such Lender, such designation or assignment (i)Β would eliminate or reduce amounts payable pursuant toΒ SectionΒ 5.01 orΒ SectionΒ 5.03, as the case may be, in the future and (ii)Β would not subject such Lender to any unreimbursed cost or expense and would not otherwise be disadvantageous to such Lender. The Borrower hereby agrees to pay all reasonable costs and expenses incurred by any Lender in connection with any such designation or assignment.
(b) Replacement of Lenders. If any Lender requests compensation underΒ SectionΒ 5.01, or if the Borrower is required to pay any additional amount to any Lender or any Governmental Authority for the account of any Lender pursuant toΒ SectionΒ 5.03, if it becomes unlawful for any Lender or its applicable lending office to make Eurodollar Loans, as
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described inΒ SectionΒ 5.05, or while a Lender is a Defaulting Lender, then the Borrower may, at its sole expense and effort, upon notice to such Lender and the Administrative Agent, require such Lender to assign and delegate, without recourse (in accordance with and subject to the restrictions contained inΒ SectionΒ 12.04(b)), all its interests, rights and obligations under this Agreement to an assignee that shall assume such obligations (which assignee may be another Lender, if a Lender accepts such assignment); provided that (i)Β the Borrower shall have received the prior written consent of the Administrative Agent, which consent shall not unreasonably be withheld, (ii)Β such Lender shall have received payment of an amount equal to the outstanding principal of its Loans and participations in LC Disbursements, accrued interest thereon, accrued fees and all other amounts payable to it hereunder, from the assignee (to the extent of such outstanding principal and accrued interest and fees) or the Borrower (in the case of all other amounts) and (iii)Β in the case of any such assignment resulting from a claim for compensation underΒ SectionΒ 5.01 or payments required to be made pursuant toΒ SectionΒ 5.03, such assignment will result in a reduction in such compensation or payments. A Lender shall not be required to make any such assignment and delegation if, prior thereto, as a result of a waiver by such Lender or otherwise, the circumstances entitling the Borrower to require such assignment and delegation cease to apply.
SectionΒ 5.05 Illegality. Notwithstanding any other provision of this Agreement, in the event that it becomes unlawful for any Lender or its applicable lending office to honor its obligation to make or maintain Eurodollar Loans either generally or having a particular Interest Period hereunder, then (a)Β such Lender shall promptly notify the Borrower and the Administrative Agent thereof and such Lenderβs obligation to make such Eurodollar Loans shall be suspended (the βAffected Loansβ) until such time as such Lender may again make and maintain such Eurodollar Loans and (b)Β all Affected Loans which would otherwise be made by such Lender shall be made instead as ABR Loans (and, if such Lender so requests by notice to the Borrower and the Administrative Agent, all Affected Loans of such Lender then outstanding shall be automatically converted into ABR Loans on the date specified by such Lender in such notice) and, to the extent that Affected Loans are so made as (or converted into) ABR Loans, all payments of principal which would otherwise be applied to such Lenderβs Affected Loans shall be applied instead to its ABR Loans.
ARTICLEΒ VI
Conditions Precedent
SectionΒ 6.01 Effective Date. The obligations of the Lenders to make Loans and of the Issuing Bank to issue Letters of Credit hereunder shall not become effective until the date on which each of the following conditions is satisfied (or waived in accordance withΒ SectionΒ 12.02):
(a) The Administrative Agent, the Arranger and the Lenders shall have received all commitment, facility and agency fees and all other fees and amounts due and payable on or prior to the Effective Date, including, to the extent invoiced, reimbursement or payment of all reasonable out-of-pocket expenses required to be reimbursed or paid by the Borrower hereunder.
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(b) The Administrative Agent shall have received a certificate of the Secretary or an Assistant Secretary of the Parent, OP LLC, the Borrower and each other Guarantor setting forth (i)Β resolutions of its board of directors or other appropriate governing body with respect to the authorization of the Parent, OP LLC, the Borrower or such Guarantor to execute and deliver the Loan Documents to which it is a party and to enter into the transactions contemplated in those documents, (ii)Β the officers of the Parent, OP LLC, the Borrower or such Guarantor (y)Β who are authorized to sign the Loan Documents to which the Parent, OP LLC, the Borrower or such Guarantor is a party and (z)Β who will, until replaced by another officer or officers duly authorized for that purpose, act as its representative for the purposes of signing documents and giving notices and other communications in connection with this Agreement and the transactions contemplated hereby, (iii)Β specimen signatures of such authorized officers, and (iv)Β the articles or certificate of incorporation and by-laws or other applicable organizational documents of the Parent, OP LLC, the Borrower and such Guarantor, certified as being true and complete. The Administrative Agent and the Lenders may conclusively rely on such certificate until the Administrative Agent receives notice in writing from the Borrower to the contrary.
(c) The Administrative Agent shall have received certificates of the appropriate State agencies with respect to the existence, qualification and good standing of the Parent, OP LLC, the Borrower and each Guarantor.
(d) The Administrative Agent shall have received a compliance certificate which shall be substantially in the form of ExhibitΒ D, duly and properly executed by a Responsible Officer and dated as of the date of Effective Date.
(e) The Administrative Agent shall have received from each party hereto counterparts (in such number as may be requested by the Administrative Agent) of this Agreement signed on behalf of such party.
(f) To the extent requested by a Lender, the Administrative Agent shall have received duly executed Notes payable to each Lender in a principal amount equal to its Maximum Credit Amount dated as of the date hereof.
(g) The Administrative Agent shall have received from each party thereto duly executed counterparts (in such number as may be requested by the Administrative Agent) of the Security Instruments, including the Guaranty and Security Agreement, the mortgages and the other Security Instruments described on ExhibitΒ E-1. In connection with the execution and delivery of the Security Instruments, the Administrative Agent shall:
(i) be reasonably satisfied that the Security Instruments create first priority, perfected Liens (subject only to Excepted Liens identified in clausesΒ (a) toΒ (d) andΒ (f) of the definition thereof, but subject to the provisos at the end of such definition) on at least 80% of the total value of the Oil and Gas Properties evaluated in the Initial Reserve Report and on all other Property purported to be pledged as collateral pursuant to the Security Instruments; and
(ii) have received certificates, together with undated, blank stock powers for each such certificate, representing all of the issued and outstanding Equity Interests of each of the Guarantors (other than the Parent).
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(h) The Administrative Agent shall have received an opinion of (i)Β DLA Piper LLP (US), special counsel to the Borrower, substantially in a form and of substance reasonably acceptable to the Administrative Agent, and (ii)Β local counsel in each of the following states: Montana and North Dakota and any other jurisdictions requested by the Administrative Agent, substantially in a form and of substance reasonably acceptable to the Administrative Agent.
(i) The Administrative Agent shall have received a certificate of insurance coverage of the Credit Parties evidencing that the Credit Parties are carrying insurance in accordance withΒ SectionΒ 7.12.
(j) The Administrative Agent shall have received title information as the Administrative Agent may reasonably require satisfactory to the Administrative Agent setting forth the status of title to at least 80% of the total value of the Oil and Gas Properties evaluated in the Initial Reserve Report.
(k) The Administrative Agent shall be reasonably satisfied with the environmental condition of the Oil and Gas Properties of the Borrower and its Subsidiaries.
(l) The Administrative Agent shall have received a certificate of a Responsible Officer of the Parent, OP LLC and the Borrower certifying that the Parent, OP LLC and the Borrower has received all consents and approvals required byΒ SectionΒ 7.03.
(m) The Administrative Agent shall have received (i)Β the financial statements referred to inΒ SectionΒ 7.04(a), and (ii)Β the Initial Reserve Report accompanied by a certificate covering the matters described inΒ SectionΒ 8.12(c).
(n) The Administrative Agent shall have received appropriate UCC search certificates reflecting no prior Liens encumbering the Properties of the Parent, OP LLC, the Borrower and the Subsidiaries for each of the following jurisdictions: Delaware, North Dakota, Montana and any other jurisdiction requested by the Administrative Agent; other than Liens permitted byΒ SectionΒ 9.03.
(o) The Administrative Agent shall be reasonably satisfied that after the making of the initial Loans hereunder and giving effect to the other transactions contemplated under this Agreement, the Borrower will have an amount not less than 10% of unused Commitment availability.
(p) The Administrative Agent shall have received such other documents as the Administrative Agent or special counsel to the Administrative Agent may reasonably request.
Without limiting the generality of the provisions ofΒ SectionΒ 11.04, for purposes of determining compliance with the conditions specified in thisΒ SectionΒ 6.01, each Lender that has signed this Agreement shall be deemed to have consented to, approved or accepted or to be satisfied with, each document or other matter required under thisΒ SectionΒ 6.01 to be consented to or approved by or acceptable or reasonably satisfactory to a Lender unless the Administrative Agent shall have received notice from such Lender prior to the Effective Date specifying its objection thereto. All documents executed or submitted pursuant to thisΒ SectionΒ 6.01 by and on behalf of the Borrower or any of its Subsidiaries shall be in form and substance reasonably
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satisfactory to the Administrative Agent and its counsel. The obligations of the Lenders to make Loans and of the Issuing Bank to issue Letters of Credit hereunder shall not become effective unless each of the foregoing conditions is satisfied (or waived pursuant toΒ SectionΒ 12.02) at or prior to 2:00 p.m., New York City time, on AprilΒ 5, 2013 (and, in the event such conditions are not so satisfied or waived, the Commitments shall terminate at such time). The Administrative Agent shall notify the Borrower and the Lenders of the Effective Date, and such notice shall be conclusive and binding.
SectionΒ 6.02 Each Credit Event. The obligation of each Lender to make a Loan on the occasion of any Borrowing (including the initial funding), and of the Issuing Bank to issue, amend, renew or extend any Letter of Credit, is subject to the satisfaction of the following conditions:
(a) At the time of and immediately after giving effect to such Borrowing or the issuance, amendment, renewal or extension of such Letter of Credit, as applicable, no Default or Borrowing Base Deficiency shall have occurred and be continuing.
(b) At the time of and immediately after giving effect to such Borrowing or the issuance, amendment, renewal or extension of such Letter of Credit, as applicable, no event, development or circumstance has occurred or shall then exist that has resulted in, or could reasonably be expected to have, a Material Adverse Effect.
(c) The representations and warranties of the Borrower and the Guarantors set forth in this Agreement and in the other Loan Documents shall be true and correct in all material respects (or, if already qualified by materiality, Material Adverse Effect or a similar qualification, true and correct in all respects) on and as of the date of such Borrowing or the date of issuance, amendment, renewal or extension of such Letter of Credit, as applicable, except to the extent any such representations and warranties are expressly limited to an earlier date, in which case, on and as of the date of such Borrowing or the date of issuance, amendment, renewal or extension of such Letter of Credit, as applicable, such representations and warranties shall continue to be true and correct as of such specified earlier date.
(d) The making of such Loan or the issuance, amendment, renewal or extension of such Letter of Credit, as applicable, would not conflict with, or cause any Lender or the Issuing Bank to violate or exceed, any applicable Governmental Requirement, and no Change in Law shall have occurred, and no litigation shall be pending or threatened, which does or, with respect to any threatened litigation, seeks to, enjoin, prohibit or restrain, the making or repayment of any Loan, the issuance, amendment, renewal, extension or repayment of any Letter of Credit or any participations therein or the consummation of the transactions contemplated by this Agreement or any other Loan Document.
(e) The receipt by the Administrative Agent of a Borrowing Request in accordance withΒ SectionΒ 2.03 or a request for a Letter of Credit (or an amendment, extension or renewal of a Letter of Credit) in accordance withΒ SectionΒ 2.08(b), as applicable.
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(f) At the time of and immediately after giving effect to such Borrowing or the issuance, amendment, renewal or extension of such Letter of Credit, as applicable, the Borrower together with the other Credit Parties shall not have any cash or cash equivalents (other than cash collateral) in excess of $100,000,000 in the aggregate (other than (i)Β any cash set aside to pay royalty obligations of the Credit Parties then due and owing to unaffiliated third parties and for which the Credit Parties have issued checks or have initiated wires or ACH transfers (or will issue checks or initiate wires or ACH transfers within 24 hours of such time) in order to pay, (ii)Β any cash set aside to pay in the ordinary course of business amounts (other than royalty obligations) of the Credit Parties then due and owing to unaffiliated third parties and for which the Credit Parties have issued checks or have initiated wires or ACH transfers in order to pay and (iii)Β any cash of the Credit Parties constituting purchase price deposits held in escrow by an unaffiliated third party pursuant to a binding and enforceable purchase and sale agreement with an unaffiliated third party containing customary provisions regarding the payment and refunding of such deposits).
Each request for a Borrowing and each request for the issuance, amendment, renewal or extension of any Letter of Credit shall be deemed to constitute a representation and warranty by the Parent, OP LLC and the Borrower on the date thereof as to the matters specified inΒ SectionΒ 6.02(a) throughΒ (c) andΒ SectionΒ 6.02(f).
ARTICLEΒ VII
Representations and Warranties
Each of the Parent, OP LLC and the Borrower represents and warrants to the Lenders that:
SectionΒ 7.01 Organization; Powers. Each of the Parent, OP LLC, the Borrower, the Subsidiaries and each DevCo is duly organized, validly existing and in good standing under the laws of the jurisdiction of its organization, have all requisite power and authority, and have all material governmental licenses, authorizations, consents and approvals necessary, to own its assets and to carry on its business as now conducted, and is qualified to do business in, and is in good standing in, every jurisdiction where such qualification is required, except where failure to have such power, authority, licenses, authorizations, consents, approvals and qualifications could not reasonably be expected to have a Material Adverse Effect.
SectionΒ 7.02 Authority; Enforceability. The Transactions are within the Parentβs, OP LLCβs, the Borrowerβs, each Guarantorβs and each DevCoβs corporate, limited liability company or partnership, as applicable, powers and have been duly authorized by all necessary corporate, limited liability company, partnership and, if required, shareholder, member or partner action (including, without limitation, any action required to be taken by any class of directors of the Parent, OP LLC, the Borrower or any other Person, whether interested or disinterested, in order to ensure the due authorization of the Transactions). Each Loan Document to which the Parent, OP LLC, the Borrower, each Guarantor and each DevCo is a party has been duly executed and delivered by the Borrower, such Guarantor and such DevCo and constitutes a legal, valid and binding obligation of the Parent, OP LLC, the Borrower, such Guarantor and such DevCo, as applicable, enforceable in accordance with its terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium or other laws affecting creditorsβ rights generally and subject to general principles of equity, regardless of whether considered in a proceeding in equity or at law.
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SectionΒ 7.03 Approvals; No Conflicts. The Transactions (a)Β do not require any consent or approval of, registration or filing with, or any other action by, any Governmental Authority or any other third Person (including shareholders or any class of directors, whether interested or disinterested, of the Parent, OP LLC, the Borrower or any other Person), nor is any such consent, approval, registration, filing or other action necessary for the validity or enforceability of any Loan Document or the consummation of the transactions contemplated thereby, except such as have been obtained or made and are in full force and effect other than (i)Β the recording and filing of the Security Instruments as required by this Agreement, (ii)Β those third party approvals or consents which, if not made or obtained, would not cause a Default hereunder, could not reasonably be expected to have a Material Adverse Effect or do not have an adverse effect on the enforceability of the Loan Documents and (iii)Β those consents, approvals or filings that are customarily obtained after the closing of an acquisition of Oil and Gas Properties, (b)Β will not violate any applicable law or regulation or the charter, by-laws or other organizational documents of the Parent, OP LLC, the Borrower, any Subsidiary or any DevCo or any order of any Governmental Authority, (c)Β will not violate or result in a default under any indenture, agreement or other instrument binding upon the Parent, OP LLC, the Borrower, any Subsidiary or any DevCo or their respective Properties, or give rise to a right thereunder to require any payment to be made by the Parent, OP LLC, the Borrower, such Subsidiary or such DevCo, (d)Β will not result in the creation or imposition of any Lien on any Property of the Parent, OP LLC, the Borrower, any Subsidiary or any DevCo (other than the Liens created by the Loan Documents and the Permitted OMP Credit Facility Liens encumbering the Property of the DevCos to the extent that such Property consists solely of Collateral).
SectionΒ 7.04 Financial Condition; No Material Adverse Change.
(a) The Parent has heretofore furnished to the Lenders its consolidated balance sheet and statements of income, stockholders equity and cash flows as of and for the fiscal year ended DecemberΒ 31, 2012, reported on by PricewaterhouseCoopers LLP, independent public accountants. Such financial statements present fairly, in all material respects, the financial position and results of operations and cash flows of the Parent and its Consolidated Subsidiaries as of such dates and for such periods in accordance with GAAP.
(b) Since DecemberΒ 31, 2012, (i)Β there has been no event, development or circumstance that has had or could reasonably be expected to have a Material Adverse Effect and (ii)Β the business of the Parent, OP LLC, the Borrower, the Subsidiaries and the DevCos has been conducted only in the ordinary course, in all material respects, consistent with past business practices.
(c) None of the Parent, OP LLC, the Borrower, any Subsidiary or any DevCo has on the date hereof any material Debt (including Disqualified Capital Stock) or any contingent liabilities, off-balance sheet liabilities or partnerships, liabilities for taxes, unusual forward or long-term commitments or unrealized or anticipated losses from any unfavorable commitments that are, in the aggregate, material to the balance sheet and statements of income, stockholders equity and cash flows of the Parent, OP LLC, the Borrower, the Subsidiaries and the DevCos on a consolidated basis and are not reflected on such balance sheets and statements of income, stockholders equity and cash flows or otherwise permitted underΒ SectionΒ 9.02.
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SectionΒ 7.05 Litigation.
(a) Except as set forth on ScheduleΒ 7.05, there are no actions, suits, investigations or proceedings by or before any arbitrator or Governmental Authority, including the FERC or any equivalent state regulatory agency, pending against or, to the knowledge of the Parent, OP LLC or the Borrower, threatened against or affecting the Borrower or any Subsidiary or any DevCo (i)Β not fully covered by insurance (except for normal deductibles) as to which there is a reasonable possibility of an adverse determination that, if adversely determined, could reasonably be expected, individually or in the aggregate, to result in a Material Adverse Effect, or (ii)Β that involve any Loan Document or the Transactions.
(b) Since the date of this Agreement, there has been no change in the status of the matters disclosed in ScheduleΒ 7.05 that, individually or in the aggregate, has resulted in, or materially increased the likelihood of, a Material Adverse Effect.
SectionΒ 7.06 Environmental Matters. Except for such matters as set forth on ScheduleΒ 7.06 or that, individually or in the aggregate, could not reasonably be expected to have a Material Adverse Effect on the Parent, OP LLC, the Borrower or the DevCos:
(a) the Borrower and the Subsidiaries and the DevCos and each of their respective Properties and operations thereon are, and within all applicable statute of limitation periods have been, in compliance with all applicable Environmental Laws;
(b) the Borrower and the Subsidiaries and the DevCos have obtained all Environmental Permits required for their respective operations and each of their Properties, with all such Environmental Permits being currently in full force and effect, and none of Borrower or the Subsidiaries or the DevCos has received any written notice or otherwise has knowledge that any such existing Environmental Permit will be revoked or that any application for any new Environmental Permit or renewal of any existing Environmental Permit will be protested or denied;
(c) there are no claims, demands, suits, orders, inquiries, or proceedings concerning any violation of, or any liability (including as a potentially responsible party) under, any applicable Environmental Laws that is pending or threatened against the Borrower or the Subsidiaries or the DevCos or any of their respective Properties or as a result of any operations at the Properties;
(d) none of the Properties of any Credit Party or any DevCo contain or have contained any: (i)Β underground storage tanks; (ii)Β asbestos-containing materials; or (iii)Β landfills or dumps; (iv)Β hazardous waste management units as defined pursuant to RCRA or any comparable state law; or (v)Β sites on or nominated for the National Priority List promulgated pursuant to CERCLA or any state remedial priority list promulgated or published pursuant to any comparable state law;
(e) there has been no Release or threatened Release, of Hazardous Materials at, on, under or from any of Borrowerβs or the Subsidiariesβ or the DevCosβ Properties, there are no investigations, remediations, abatements, removals, or monitorings of Hazardous Materials required under applicable Environmental Laws at such Properties and none of such Properties are adversely affected by any Release or threatend Release of a Hazardous Material originating or emanating from any other real property;
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(f) neither the Borrower nor the Subsidiaries nor the DevCos has received any written notice asserting an alleged liability or obligation under any applicable Environmental Laws with respect to the investigation, remediation, abatement, removal, or monitoring of any Hazardous Materials at, under, or Released or threatened to be Released from any real properties offsite the Borrowerβs or the Subsidiariesβ or the DevCoβs Properties and there are no conditions or circumstances that would reasonably be expected to result in the receipt of such written notice.
(g) there has been no exposure of any Person or property to any Hazardous Materials as a result of or in connection with the operations and businesses of any of the Borrowerβs or the Subsidiariesβ or the DevCosβ Properties that would reasonably be expected to form the basis for a claim for damages or compensation and there are no conditions or circumstances that would reasonably be expected to result in the receipt of notice regarding such exposure; and
(h) the Borrower and the Subsidiaries and the DevCos have provided to Lenders complete and correct copies of all environmental site assessment reports, investigations, studies, analyses, and correspondence on environmental matters (including matters relating to any alleged non-compliance with or liability under Environmental Laws) that are in any of the Borrowerβs or the Subsidiariesβ or the DevCosβ possession or control and relating to their respective Properties or operations thereon.
SectionΒ 7.07 Compliance with the Laws and Agreements; No Defaults or Borrowing Base Deficiency.
(a) Each of the Parent, OP LLC, the Borrower, each Subsidiary and each DevCo is in compliance with all Governmental Requirements applicable to it or its Property and all agreements and other instruments binding upon it or its Property, and possesses all licenses, permits, franchises, exemptions, approvals and other governmental authorizations necessary for the ownership of its Property and the conduct of its business, except where the failure to do so, individually or in the aggregate, could not reasonably be expected to result in a Material Adverse Effect.
(b) None of the Parent, OP LLC, the Borrower, any Subsidiary nor any DevCo is in default nor has any event or circumstance occurred which, but for the expiration of any applicable grace period or the giving of notice, or both, would constitute a default or would require the Parent, OP LLC, the Borrower, a Subsidiary or a DevCo to Redeem or make any offer to Redeem under any indenture, note, credit agreement or instrument pursuant to which any Material Indebtedness is outstanding or by which the Borrower or any Subsidiary or any DevCo or any of their respective Properties is bound.
(c) No Default or Borrowing Base Deficiency has occurred and is continuing.
SectionΒ 7.08 Investment Company Act. None of the Parent, OP LLC, the Borrower, any Subsidiary nor any DevCo is an βinvestment companyβ or a company βcontrolledβ by an βinvestment company,β within the meaning of, or subject to regulation under, the Investment Company Act of 1940, as amended.
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SectionΒ 7.09 Taxes. Each of the Parent, OP LLC, the Borrower, the Subsidiaries and the DevCos has timely filed or caused to be filed all Tax returns and reports required to have been filed and has paid or caused to be paid all Taxes required to have been paid by it, except (a)Β Taxes that are being contested in good faith by appropriate proceedings and for which the Parent, OP LLC, the Borrower, such Subsidiary or such DevCo, as applicable, has set aside on its books adequate reserves in accordance with GAAP or (b)Β to the extent that the failure to do so could not reasonably be expected to result in a Material Adverse Effect. The charges, accruals and reserves on the books of the Parent, OP LLC, the Borrower, the Subsidiaries and the DevCos in respect of Taxes and other governmental charges are, in the reasonable opinion of the Parent, OP LLC and the Borrower, adequate. No Tax Lien has been filed and, to the knowledge of the Borrower, no claim is being asserted with respect to any such Tax or other such governmental charge.
SectionΒ 7.10 ERISA.
(a) The Parent, OP LLC, the Borrower, the Subsidiaries, the DevCos and each ERISA Affiliate have complied in all material respects with ERISA and, where applicable, the Code regarding each Plan.
(b) Each Plan is, and has been, maintained in substantial compliance with its terms, ERISA and, where applicable, the Code.
(c) No act, omission or transaction has occurred which could result in imposition on the Parent, OP LLC, the Borrower, any Subsidiary, any DevCo or any ERISA Affiliate (whether directly or indirectly) of (i)Β either a civil penalty assessed pursuant to subsectionsΒ (c), (i) or (l)Β of section 502 of ERISA or a tax imposed pursuant to ChapterΒ 43 of Subtitle D of the Code or (ii)Β breach of fiduciary duty liability damages under sectionΒ 409 of ERISA with civil penalty or tax could reasonably be expected to result in a Material Adverse Effect.
(d) Full payment when due has been made of all amounts which the Parent, OP LLC, the Borrower, the Subsidiaries, the DevCos or any ERISA Affiliate is required under the terms of each Plan or applicable law to have paid as contributions to such Plan as of the date hereof.
(e) None of the Parent, OP LLC, the Borrower, the Subsidiaries, the DevCos nor any ERISA Affiliate sponsors, maintains, or contributes to an employee welfare benefit plan, as defined in sectionΒ 3(1)Β of ERISA, including, without limitation, any such plan maintained to provide benefits to former employees of such entities, that may not be terminated by the Parent, OP LLC, the Borrower, a Subsidiary, a DevCo or any ERISA Affiliate in its sole discretion at any time without any material liability.
(f) None of the Parent, OP LLC, the Borrower, the Subsidiaries, the DevCos nor any ERISA Affiliate sponsors, maintains or contributes to, or has at any time in the six-year period preceding the date hereof sponsored, maintained or contributed to, any employee pension plan, as defined in sectionΒ 3(2)Β of ERISA, that is subject to TitleΒ IV of ERISA, sectionΒ 302 of ERISA or sectionΒ 412 of the Code.
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SectionΒ 7.11 Disclosure; No Material Misstatements. The Parent, OP LLC and the Borrower have disclosed to the Administrative Agent and the Lenders all agreements, instruments and corporate or other restrictions to which they or any of the Subsidiaries or any of the DevCos is subject, and except for matters that could reasonably be expected to be known already by the Lenders, all other matters known to them, that, individually or in the aggregate, could reasonably be expected to result in a Material Adverse Effect. None of the other reports, financial statements, certificates or other written information furnished by or on behalf of the Parent, OP LLC, the Borrower or any Subsidiary or any DevCo to the Administrative Agent or any Lender or any of their Affiliates in connection with the negotiation of this Agreement or any other Loan Document or delivered hereunder or under any other Loan Document (as modified or supplemented by other information so furnished) contains any material misstatement of fact or omits to state any material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading; provided that, with respect to projected financial information, the Parent, OP LLC and the Borrower represent only that such information was prepared in good faith based upon assumptions believed to be reasonable at the time. There is no fact peculiar to the Parent, OP LLC, the Borrower, any Subsidiary or any DevCo which could reasonably be expected to have a Material Adverse Effect or in the future is reasonably likely to have a Material Adverse Effect and which has not been set forth in this Agreement or the Loan Documents or the other documents, certificates and statements furnished to the Administrative Agent or the Lenders by or on behalf of the Parent, OP LLC, the Borrower, any Subsidiary or any DevCo prior to, or on, the date hereof in connection with the transactions contemplated hereby. There are no statements or conclusions in any Reserve Report which are based upon or include misleading information or fail to take into account material information regarding the matters reported therein, it being understood that projections concerning volumes attributable to the Oil and Gas Properties and production and cost estimates contained in each Reserve Report are necessarily based upon professional opinions, estimates and projections and that the Parent, OP LLC, the Borrower, the Subsidiaries and the DevCos do not warrant that such opinions, estimates and projections will ultimately prove to have been accurate.
SectionΒ 7.12 Insurance. The Parent, OP LLC and the Borrower have, and have caused all of their respective Subsidiaries and the DevCos to have, (a)Β all insurance policies sufficient for the compliance by each of them with all material Governmental Requirements and all material agreements and (b)Β insurance coverage in at least amounts and against such risk (including, without limitation, public liability) that are usually insured against by companies similarly situated and engaged in the same or a similar business for the assets and operations of the Parent, OP LLC, the Borrower and their respective Subsidiaries and the DevCos. The Administrative Agent and the Lenders have been named as additional insureds in respect of such liability insurance policies and the Administrative Agent has been named as lender loss payee with respect to Property loss insurance. No Credit Party or DevCo owns any Building or material Manufactured (Mobile) Home (as defined in the applicable Flood Insurance Regulation), in either case subject to a mortgage lien of any Security Instrument, for which such Credit Party or DevCo has not delivered to the Administrative Agent evidence or confirmation reasonably satisfactory to the Administrative Agent that (i)Β such Credit Party maintains flood insurance for such Building or Manufactured (Mobile) Home that is acceptable to the Administrative Agent or (ii)Β such Building or Manufactured (Mobile) Home is not located in a special flood hazard area.
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SectionΒ 7.13 Restriction on Liens. None of the Parent, OP LLC, the Borrower, any of the Subsidiaries nor any DevCo is a party to any material agreement or arrangement (other than Capital Leases creating Liens permitted byΒ SectionΒ 9.03(c), but then only on the Property subject of such Capital Lease), or subject to any order, judgment, writ or decree, which either restricts or purports to restrict its ability to grant Liens to the Administrative Agent for the benefit of the Secured Parties on or in respect of their Properties to secure the Indebtedness and the Loan Documents.
SectionΒ 7.14 Subsidiaries. Except as set forth on ScheduleΒ 7.14 or as disclosed in writing to the Administrative Agent (which shall promptly furnish a copy to the Lenders), which shall be a supplement to ScheduleΒ 7.14, the Borrower has no Subsidiaries and the Borrower has no Foreign Subsidiaries. Each Subsidiary identified in ScheduleΒ 7.14 is a Wholly-Owned Subsidiary other than the General Partner. 100% of the Equity Interests in each DevCo is owned collectively directly or indirectly by OMS and directly or indirectly by OMP.
SectionΒ 7.15 Location of Business and Offices. The Borrowerβs jurisdiction of organization is the State of Delaware; the name of the Borrower as listed in the public records of its jurisdiction of organization is βOasis Petroleum North America LLCβ; and the organizational identification number of the Borrower in its jurisdiction of organization is 4354265 (or, in each case, as set forth in a notice delivered to the Administrative Agent pursuant toΒ SectionΒ 8.01(m) in accordance withΒ SectionΒ 12.01). The Borrowerβs principal place of business and chief executive offices are located at the address specified inΒ SectionΒ 12.01 (or as set forth in a notice delivered pursuant toΒ SectionΒ 8.01(m) andΒ SectionΒ 12.01(c)). The jurisdiction of organization of OP LLC is the State of Delaware; the name of OP LLC as listed in the public records of its jurisdiction of organization is βOasis Petroleum LLCβ, and the organizational identification number of OP LLC in its jurisdiction of organization is 4307625 (or, in each case, as set forth in a notice delivered to the Administrative Agent pursuant toΒ SectionΒ 8.01(m) in accordance withΒ SectionΒ 12.01). The principal place of business and chief executive offices of OP LLC are located at the address specified inΒ SectionΒ 12.01 (or as set forth in a notice delivered pursuant toΒ SectionΒ 8.01(m) andΒ SectionΒ 12.01(c)). The jurisdiction of organization of the Parent is the State of Delaware; the name of the Parent as listed in the public records of its jurisdiction of organization is βOasis Petroleum Inc.β, and the organizational identification number of the Parent in its jurisdiction of organization is 4793429 (or, in each case, as set forth in a notice delivered to the Administrative Agent pursuant toΒ SectionΒ 8.01(m) in accordance withΒ SectionΒ 12.01). The principal place of business and chief executive offices of the Parent are located at the address specified inΒ SectionΒ 12.01 (or as set forth in a notice delivered pursuant toΒ SectionΒ 8.01(m) andΒ SectionΒ 12.01(c)). Each Subsidiaryβs jurisdiction of organization, name as listed in the public records of its jurisdiction of organization, organizational identification number in its jurisdiction of organization, and the location of its principal place of business and chief executive office is stated on ScheduleΒ 7.14 (or as set forth in a notice delivered pursuant toΒ SectionΒ 8.01(m)).
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SectionΒ 7.16 Properties; Titles, Etc.
(a) Except as set forth in ScheduleΒ 7.16, of the Borrower and the Subsidiaries has good and defensible title to the Oil and Gas Properties evaluated in the most recently delivered Reserve Report and good title to all its material personal Properties, in each case, free and clear of all Liens except Liens permitted byΒ SectionΒ 9.03. After giving full effect to the Excepted Liens, the Borrower or the Subsidiary specified as the owner owns the net interests in production attributable to the Hydrocarbon Interests as reflected in the most recently delivered Reserve Report, other than reductions in such interests resulting from any actions permitted underΒ SectionΒ 9.11 or from the election of the Borrower to not participate in any operation in respect of an Oil and Gas Property, and the ownership of such Properties shall not in any material respect obligate the Borrower or such Subsidiary to bear the costs and expenses relating to the maintenance, development and operations of each such Property in an amount in excess of the working interest of each Property set forth in the most recently delivered Reserve Report that is not offset by a corresponding proportionate increase in the Borrowerβs or such Subsidiaryβs net revenue interest in such Property, other than excesses (i)Β relating to customary provisions of operating agreements requiring parties thereto to pay to the operator the share of costs of a defaulting party, (ii)Β resulting from the acquisition of the interest of any non-participating parties pursuant to customary provisions of joint operating agreements or (iii)Β resulting from interests acquired pursuant to compulsory pooling statutes.
(b) All material leases and agreements necessary for the conduct of the business of the Borrower and the Subsidiaries are valid and subsisting, in full force and effect, and there exists no default or event or circumstance which with the giving of notice or the passage of time or both would give rise to a default under any such lease or leases, which could reasonably be expected to have a Material Adverse Effect.
(c) The rights and Properties presently owned, leased or licensed by the Borrower and the Subsidiaries including, without limitation, all easements and rights of way, include all rights and Properties necessary to permit the Borrower and the Subsidiaries to conduct their business in all material respects in the same manner as its business has been conducted prior to the date hereof.
(d) All of the Properties of the Borrower and the Subsidiaries which are reasonably necessary for the operation of their businesses are in good working condition and are maintained in accordance with prudent business standards.
(e) The Borrower and each Subsidiary owns, or is licensed to use, all trademarks, tradenames, copyrights, patents and other intellectual Property material to its business, and the use thereof by the Borrower and such Subsidiary does not infringe upon the rights of any other Person, except for any such infringements that, individually or in the aggregate, could not reasonably be expected to result in a Material Adverse Effect. The Borrower and the Subsidiaries either own or have valid licenses or other rights to use all databases, geological data, geophysical data, engineering data, seismic data, maps, interpretations and other technical information used in their businesses as presently conducted, subject to the limitations contained in the agreements governing the use of the same, which limitations are customary for companies engaged in the business of the exploration and production of Hydrocarbons, with such exceptions as could not reasonably be expected to have a Material Adverse Effect.
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SectionΒ 7.17 Maintenance of Properties. Except for such acts or failures to act as could not be reasonably expected to have a Material Adverse Effect, the Oil and Gas Properties (and Properties unitized therewith) of the Borrower and the Subsidiaries have been maintained, operated and developed in a good and workmanlike manner and in conformity with all Governmental Requirements and in conformity with the provisions of all leases, subleases or other contracts comprising a part of the Hydrocarbon Interests and other contracts and agreements forming a part of the Oil and Gas Properties of the Borrower and the Subsidiaries. Specifically in connection with the foregoing, except for those as could not be reasonably expected to have a Material Adverse Effect, (a)Β no Oil and Gas Property of the Borrower or any Subsidiary is subject to having allowable production reduced below the full and regular allowable (including the maximum permissible tolerance) because of any overproduction (whether or not the same was permissible at the time) and (b)Β none of the xxxxx comprising a part of the Oil and Gas Properties (or Properties unitized therewith) of the Borrower or any Subsidiary is deviated from the vertical more than the maximum permitted by Governmental Requirements, and such xxxxx are, in fact, bottomed under and are producing from, and the well bores are wholly within, the Oil and Gas Properties (or in the case of xxxxx located on Properties unitized therewith, such unitized Properties) of the Borrower or such Subsidiary. All pipelines, xxxxx, gas processing plants, platforms and other material improvements, fixtures and equipment owned in whole or in part by the Borrower or any of its Subsidiaries that are necessary to conduct normal operations are being maintained in a state adequate to conduct normal operations, and with respect to such of the foregoing which are operated by the Borrower or any of its Subsidiaries, in a manner consistent with the Borrowerβs or its Subsidiariesβ past practices (other than those the failure of which to maintain in accordance with thisΒ SectionΒ 7.17 could not reasonably be expected to have a Material Adverse Effect).
SectionΒ 7.18 Gas Imbalances, Prepayments. Except as set forth on ScheduleΒ 7.18 or on the most recent certificate delivered pursuant toΒ SectionΒ 8.12(c), on a net basis there are no gas imbalances, take or pay or other prepayments which would require the Borrower or any of the Subsidiaries to deliver Hydrocarbons produced from the Oil and Gas Properties at some future time without then or thereafter receiving full payment therefor exceeding 75,000 Mcf of gas (on an Mcf equivalent basis) in the aggregate.
SectionΒ 7.19 Marketing of Production. Except for contracts listed and in effect on the date hereof on ScheduleΒ 7.19, and thereafter either disclosed in writing to the Administrative Agent or included in the most recently delivered Reserve Report (with respect to all of which contracts the Borrower represents that it or the Subsidiaries are receiving a price for all production sold thereunder which is computed substantially in accordance with the terms of the relevant contract and are not having deliveries curtailed substantially below the subject Propertyβs delivery capacity), no material agreements exist which are not cancelable on 60 daysβ notice or less without penalty or detriment for the sale of production from the Borrowerβs or the Subsidiariesβ Hydrocarbons (including, without limitation, calls on or other rights to purchase, production, whether or not the same are currently being exercised) that (a)Β pertain to the sale of production at a fixed price and (b)Β have a maturity or expiry date of longer than six (6)Β months from the date hereof.
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SectionΒ 7.20 Swap Agreements and Qualified ECP Guarantor. ScheduleΒ 7.20, as of the date hereof, and after the date hereof, each report required to be delivered by the Borrower pursuant toΒ SectionΒ 8.01(e), sets forth, a true and complete list of all Swap Agreements of the Borrower and each Subsidiary, the material terms thereof (including the type, term, effective date, termination date and notional amounts or volumes), the net xxxx to market value thereof, all credit support agreements relating thereto (including any margin required or supplied) and the counterparty to each such agreement. The Parent, OP LLC and the Borrower are each Qualified ECP Guarantors.
SectionΒ 7.21 Use of Loans and Letters of Credit. The proceeds of the Loans and the Letters of Credit shall be used to provide working capital for exploration and production operations and to provide funding for general corporate purposes. The Parent, OP LLC, the Borrower, the Subsidiaries and the DevCos are not engaged principally, or as one of its or their important activities, in the business of extending credit for the purpose, whether immediate, incidental or ultimate, of buying or carrying margin stock (within the meaning of Regulation T, U or X of the Board). No part of the proceeds of any Loan or Letter of Credit will be used for any purpose which violates the provisions of Regulations T, U or X of the Board. None of the Parent, OP LLC or the Borrower nor any of their respective Subsidiaries will directly or indirectly use the proceeds from the Loans or lend, contribute or otherwise make available such proceeds to any Subsidiary, joint venture partner or other Person, for the purpose of financing the activities of any Person subject to any applicable sanctions administered by OFAC or in violation of the FCPA.
SectionΒ 7.22 Solvency. After giving effect to the transactions contemplated hereby, (a)Β the aggregate assets (after giving effect to amounts that could reasonably be received by reason of indemnity, offset, insurance or any similar arrangement), at a fair valuation, of the Borrower, the Guarantors and the DevCos, taken as a whole, will exceed the aggregate Debt of the Borrower, the Guarantors and the DevCos on a consolidated basis, as the Debt becomes absolute and matures, (b)Β each of the Borrower, the Guarantors and the DevCos will not have incurred or intended to incur, and will not believe that it will incur, Debt beyond its ability to pay such Debt (after taking into account the timing and amounts of cash to be received by each of the Borrower, the Guarantors and the DevCos and the amounts to be payable on or in respect of its liabilities, and giving effect to amounts that could reasonably be received by reason of indemnity, offset, insurance or any similar arrangement) as such Debt becomes absolute and matures and (c)Β each of the Borrower, the Guarantors and the DevCos will not have (and will have no reason to believe that it will have thereafter) unreasonably small capital for the conduct of its business.
SectionΒ 7.23 Foreign Corrupt Practices. None of the Parent, OP LLC or the Borrower nor any of their respective Subsidiaries nor any DevCo, nor any director, officer, agent, employee or Affiliate of the Parent, OP LLC or the Borrower or any of their respective Subsidiaries or any DevCo is aware of or has taken any action, directly or indirectly, that would result in a material violation by such Persons of the FCPA, including without limitation, making use of the mails or any means or instrumentality of interstate commerce corruptly in furtherance of an offer, payment, promise to pay or authorization of the payment of any money, or other property, gift, promise to give, or authorization of the giving of anything of value to any βforeign officialβ (as such term is defined in the FCPA) or any foreign political party or official thereof or
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any candidate for foreign political office, in contravention of the FCPA; and, the Parent, OP LLC and the Borrower, and their respective Subsidiaries and the DevCos and each of their respective Affiliates have conducted their business in material compliance with the FCPA and have instituted and maintain policies and procedures designed to ensure, and which are reasonably expected to continue to ensure, continued compliance therewith.
SectionΒ 7.24 OFAC. None of the Parent, OP LLC, the Borrower nor any of their respective Subsidiaries nor any DevCo, nor any director, officer, agent, employee or Affiliate of the Parent, OP LLC or the Borrower or any of their respective Subsidiaries or any DevCo is currently subject to any material sanctions administered by OFAC, and the Parent, OP LLC and the Borrower will not directly or indirectly use the proceeds from the Loans or lend, contribute or otherwise make available such proceeds to any Subsidiary, any DevCo joint venture partner or other Person, for the purpose of financing the activities of any Person currently subject to any sanctions administered by OFAC.
SectionΒ 7.25 OP International. As of the Effective Date, OP International and its Subsidiaries own no assets other than Equity Interests in subsidiaries that do not own assets.
SectionΒ 7.26 EEA Financial Institutions. No Credit Party or any DevCo is an EEA Financial Institution.
SectionΒ 7.27 DevCo Properties.
(a) Each DevCo has good and valid title to, valid leasehold interests in, or valid easements, rights of way or other property interests in all of the Mortgaged Properties owned by it free and clear of all Liens except Excepted Liens and Permitted OMP Credit Facility Liens.
(b) The Gathering Systems of each DevCo are covered by valid and subsisting recorded fee deeds, leases, easements, rights of way, servitudes, permits, licenses and other instruments and agreements (collectively, βRights of Wayβ) in favor of the DevCos (or their predecessors in interest), except where the failure of the Gathering Systems to be so covered, individually or in the aggregate, (i)Β does not interfere with the ordinary conduct of business of such DevCo, (ii)Β does not materially detract from the value or the use of the portion of the Gathering Systems which are not covered and (iii)Β could not reasonably be expected to have a Material Adverse Effect.
(c) The Rights of Way of each DevCo establish a contiguous and continuous right of way for the Gathering Systems and grant the DevCos (or their predecessors in interest) the right to construct, operate, and maintain the Gathering Systems in, over, under, or across the land covered thereby in the same way that a prudent owner and operator would inspect, operate, repair, and maintain similar assets and in the same way as the DevCos have inspected, operated, repaired, and maintained the Gathering Systems prior to the Effective Date; provided, however, (i)Β some of the Rights of Way granted to the DevCos (or their predecessors in interest) by private parties and Governmental Authorities are revocable at the right of the applicable grantor, (ii)Β some of the Rights of Way cross properties that are subject to liens in favor of third parties that have not been subordinated to the Rights of Way, and (iii)Β some
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Xxxxxx xx Xxx are subject to certain defects, limitations and restrictions; provided, further, none of the limitations, defects, and restrictions described in clausesΒ (i), (ii) and (iii)Β above, individually or in the aggregate, (A)Β interfere with the ordinary conduct of business of the DevCos, (B)Β materially detract from the value or the use of the portion of the Gathering Systems which are covered or (C)Β could reasonably be expected to have a Material Adverse Effect.
(d) Each Processing Plant of the DevCos is or will be located on lands covered by fee deeds, real property leases, or other instruments (collectively βDeedsβ) in favor of the DevCos (or their predecessors in interest) and their respective successors and assigns. The Deeds grant the DevCos (or their predecessors in interest) the right to construct, operate, and maintain such Processing Plant on the land covered thereby in the same way that a prudent owner and operator would inspect, operate, repair, and maintain similar assets.
(e) All Rights of Way and all Deeds necessary for the conduct of the business of the DevCos are valid and subsisting, in full force and effect, and there exists no breach, default or event or circumstance that, with the giving of notice or the passage of time or both, would give rise to a default under any such Rights of Way or Deeds that could reasonably be expected to have a Material Adverse Effect. All rental and other payments due under any Rights of Way or Deeds by the DevCos (and their predecessors in interest) have been duly paid in accordance with the terms thereof, except to the extent that a failure to do so, individually or in the aggregate, could not reasonably be expected to have a Material Adverse Effect.
(f) The rights and Properties presently owned, leased or licensed by the DevCos, including all Rights of Way and Deeds, include all rights and Properties necessary to permit the DevCos to conduct their businesses in all material respects in the same manner as such businesses have been conducted prior to the date hereof.
(g) Neither the businesses nor the Properties of the DevCos is affected in any manner that could reasonably be expected to have a Material Adverse Effect as a result of any fire, explosion, earthquake, flood, drought, windstorm, accident, strike or other labor disturbance, embargo, requisition or taking of Property or cancellation of contracts, permits or concessions by a Governmental Authority, riot, activities of armed forces or acts of God or of any public enemy.
(h) No eminent domain proceeding or taking has been commenced or, to the knowledge of the DevCos is contemplated with respect to all or any portion of the Midstream Properties of the DevCos, except for that which, individually or in the aggregate, could not reasonably be expected to have a Material Adverse Effect.
(i) No portion of the Midstream Properties of the DevCos has, since the date of this Agreement, suffered any material damage by fire or other casualty loss except that which has heretofore been repaired or replaced or is in the process of being repaired or replaced.
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(j) Except for such acts or failures to act as could not be reasonably expected to have a Material Adverse Effect, the offices, plants, gas processing plants, pipelines, improvements, fixtures, equipment, and other Property owned, leased or used by each DevCo in the conduct of its business is (i)Β being maintained in a state adequate to conduct normal operations, (ii)Β in good operating condition, subject to ordinary wear and tear, and routine maintenance or repair, (iii)Β sufficient for the operation of such business as currently conducted, and (iv)Β in conformity with all Governmental Requirements relating thereto.
SectionΒ 7.28 FERC. To the extent, if any, that any portion of the Gathering Systems of any DevCo is an interstate common carrier pipeline subject to the jurisdiction of the FERC (an βInterstate Pipelineβ):
(a) The rates on file with the FERC with respect to such Interstate Pipeline are just and reasonable pursuant to the Energy Policy Act, and to the knowledge of the Parent and the Borrower, no provision of the tariff containing such rates is unduly discriminatory or preferential.
(b) Each DevCo is in compliance, in all material respects, with all rules, regulations and orders of the FERC applicable to such Interstate Pipeline.
(c) As of the date of this Agreement, no DevCo is liable for any refunds or interest thereon as a result of an order from the FERC.
(d) Each applicable DevCoβs report, if any, on Form 6 filed with the FERC complies as to form with all applicable legal requirements and does not contain any untrue statement of a material fact or omit to state a material fact required to make the statements therein not misleading.
(e) Without limiting the generality of SectionΒ 7.07(a) of this Agreement, no certificate, license, permit, consent, authorization or order (to the extent not otherwise obtained) is required by any DevCo from the FERC to construct, own, operate and maintain any such Interstate Pipeline or to transport and/or distribute Refined Products on such Interstate Pipeline under existing contracts and agreements as the Interstate Pipelines are presently owned, operated and maintained.
SectionΒ 7.29 State Regulation. Each DevCo is in compliance, in all material respects, with all rules, regulations and orders of all rules, regulations and orders of any State agency with jurisdiction to regulate its Midstream Properties, and as of the date of this Agreement, no DevCo is liable for any refunds or interest thereon as a result of an order from any such State agency.
SectionΒ 7.30 Title to Refined Products. No DevCo has title to any of the Refined Products which are transported and/or distributed through the Gathering Systems, except pursuant to agreements under which the relevant DevCo does not have any exposure to commodity price volatility as a result of having title to such Refined Products.
SectionΒ 7.31 Flood Insurance Related Matters. Except as set forth on ScheduleΒ 7.31 as it may be supplemented from time to time by delivery of a written notice to the Administrative Agent, no Mortgage encumbers improved real property that contains Buildings or Manufactured (Mobile) Homes (as those terms are defined in applicable Flood Insurance Regulations). The Credit Parties and the DevCos have obtained flood insurance in accordance with SectionΒ 8.07 with respect to each Building constituting Mortgaged Property that is located in a special flood hazard area.
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ARTICLEΒ VIII
Affirmative Covenants
Until the Commitments have expired or been terminated and the principal of and interest on each Loan and all fees payable hereunder and all other amounts payable under the Loan Documents shall have been paid in full and all Letters of Credit shall have expired or terminated and all LC Disbursements shall have been reimbursed, each of the Parent, OP LLC and the Borrower covenants and agrees with the Lenders that:
SectionΒ 8.01 Financial Statements; Other Information. The Parent, OP LLC and/or the Borrower will furnish to the Administrative Agent and each Lender:
(a) Annual Financial Statements. As soon as available, but in any event in accordance with then applicable law and not later than 90 days after the end of each fiscal year of the Parent, (i)Β its audited consolidated balance sheet and related statements of operations, membersβ equity and cash flows as of the end of and for such year, setting forth in each case in comparative form the figures for the previous fiscal year, all reported on by independent public accountants of recognized national standing (without a βgoing concernβ or like qualification or exception and without any qualification or exception as to the scope of such audit) to the effect that such consolidated financial statements present fairly in all material respects the financial condition and results of operations of the Parent and its Consolidated Subsidiaries and the DevCos on a consolidated basis in accordance with GAAP consistently applied.
(b) Quarterly Financial Statements. As soon as available, but in any event in accordance with then applicable law and not later than 60 days after the end of each of the first three fiscal quarters of each fiscal year of the Parent, its consolidated balance sheet and related statements of operations, membersβ equity and cash flows as of the end of and for such fiscal quarter and the then elapsed portion of the fiscal year, setting forth in each case in comparative form the figures for the corresponding period or periods of (or, in the case of the balance sheet, as of the end of) the previous fiscal year, all certified by one of its Financial Officers as presenting fairly in all material respects the financial condition and results of operations of the Parent and its Consolidated Subsidiaries and the DevCos on a consolidated basis in accordance with GAAP consistently applied, subject to normal year-end audit adjustments and the absence of footnotes.
(c) Certificate of Financial Officer - Compliance. Concurrently with any delivery of financial statements underΒ SectionΒ 8.01(a) orΒ SectionΒ 8.01(b), a certificate of a Financial Officer in substantially the form of ExhibitΒ D hereto (i)Β certifying as to whether a Default has occurred and, if a Default has occurred, specifying the details thereof and any action taken or proposed to be taken with respect thereto, (ii)Β setting forth reasonably detailed calculations demonstrating compliance withΒ SectionΒ 8.13(b) andΒ SectionΒ 9.01 and (iii)Β stating whether any change in GAAP or in the application thereof has occurred since the date of the audited financial statements referred to inΒ SectionΒ 7.04 and, if any such change has occurred, specifying the effect of such change on the financial statements accompanying such certificate.
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(d) Certificate of Financial Officer - Consolidating Information. Concurrently with any delivery of financial statements underΒ SectionΒ 8.01(a) orΒ SectionΒ 8.01(b), a certificate of a Financial Officer setting forth consolidating spreadsheets that show all Subsidiaries of the Parent, excluding the Borrower, and the eliminating entries, in such form as would be presentable to the auditors of the Parent.
(e) Certificate of Financial Officer β Swap Agreements. Concurrently with any delivery of financial statements underΒ SectionΒ 8.01(a) orΒ SectionΒ 8.01(b), a certificate of a Financial Officer, in form and substance satisfactory to the Administrative Agent, setting forth as of the last Business Day of such quarter, a true and complete list of all Swap Agreements of the Borrower and each Subsidiary, the material terms thereof (including the type, term, effective date, termination date and notional amounts or volumes), the net xxxx-to-market value therefor, any new credit support agreements relating thereto not listed on ScheduleΒ 7.20, any margin required or supplied under any credit support document, and the counterparty to each such agreement.
(f) Certificate of Insurer - Insurance Coverage. Concurrently with any delivery of financial statements underΒ SectionΒ 8.01(a), a certificate of insurance coverage from each insurer with respect to the insurance required byΒ SectionΒ 8.07, in form and substance satisfactory to the Administrative Agent, and, if requested by the Administrative Agent or any Lender, all copies of the applicable policies.
(g) Other Accounting Reports. Promptly upon receipt thereof, a copy of each other report or letter submitted to the Parent, OP LLC, the Borrower or any Subsidiaries by independent accountants in connection with any annual, interim or special audit made by them of the books of the Parent, OP LLC, the Borrower or any such Subsidiary, and a copy of any response by the Parent, OP LLC, the Borrower or any such Subsidiary, or the board of directors or other appropriate governing body of the Parent, OP LLC, the Borrower or any such Subsidiary, to such letter or report.
(h) SEC and Other Filings; Reports to Shareholders. Promptly after the same become publicly available, copies of all periodic and other reports, proxy statements and other materials filed by the Parent, OP LLC, the Borrower or any Subsidiary with the SEC, or with any national securities exchange, or distributed by the Borrower to its shareholders generally, as the case may be.
(i) Notices Under Material Instruments. Promptly after the furnishing thereof, copies of any financial statement, report or notice furnished to or by any Person pursuant to the terms of any preferred stock designation, indenture, loan or credit or other similar agreement, other than this Agreement and not otherwise required to be furnished to the Lenders pursuant to any other provision of thisΒ SectionΒ 8.01.
(j) Lists of Purchasers. Concurrently with the delivery of any Reserve Report to the Administrative Agent pursuant toΒ SectionΒ 8.12, a list of all Persons purchasing Hydrocarbons from the Borrower or any Subsidiary in respect of the Oil and Gas Properties expected to account for 80% of the revenues for the sale of Hydrocarbons produced from the Oil and Gas Properties in the three month period immediately preceding the effective date of the most recent Reserve Report.
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(k) Notice of Sales of Oil and Gas Properties. Prior to entering into any legally binding agreement to sell, transfer, assign or otherwise dispose of any Oil or Gas Properties (as defined in subsectionsΒ (a),Β (b),Β (c),Β (d) andΒ (e) of the definition thereof (other than, with respect to clauseΒ (e), oil that would not otherwise be included but for the fact that it has been stored in tanks in the ordinary course of business for a short period of time pending collection and sale) or any Equity Interests in any Subsidiary in accordance withΒ SectionΒ 9.11, prior written notice of such disposition, the price thereof and the anticipated date of closing and any other details thereof reasonably requested by the Administrative Agent or any Lender.
(l) Notice of Casualty Events. Prompt written notice, and in any event within three Business Days of the Parentβs OP LLCβs or the Borrowerβs knowledge thereof, of the occurrence of any Casualty Event or the commencement of any action or proceeding that could reasonably be expected to result in a Casualty Event.
(m) Information Regarding Borrower and Guarantors. Prompt written notice of (and in any event at least twenty (20)Β days prior thereto) any change (i)Β in the Borrowerβs, any Guarantorβs or any DevCoβs corporate name or in any trade name used to identify such Person in the conduct of its business or in the ownership of its Properties, (ii)Β in the location of the Borrowerβs, any Guarantorβs or any DevCoβs chief executive office or principal place of business, (iii)Β in the Borrowerβs, any Guarantorβs or any DevCoβs identity or corporate structure or in the jurisdiction in which such Person is incorporated or formed, (iv)Β in the Borrowerβs, any Guarantorβs or any DevCoβs jurisdiction of organization or such Personβs organizational identification number in such jurisdiction of organization, and (v)Β in the Borrowerβs, any Guarantorβs or any DevCoβs federal taxpayer identification number.
(n) Production Report and Lease Operating Statements. Within 60 days after the end of each of the first three fiscal quarters for each calendar month during the then current fiscal year to date, and within 90 days after the end of the fiscal year, a report setting forth the volume of production and sales attributable to production (and the prices at which such sales were made and the revenues derived from such sales) for each such calendar month from the Oil and Gas Properties.
(o) Notice of Certain Changes. Promptly, but in no event within five (5)Β Business Days after the execution thereof, copies of any amendment, modification or supplement to the certificate or articles of incorporation, by-laws or any other organic document of the Parent, OP LLC, the Borrower, any Subsidiary or any DevCo.
(p) Notice of Swap Agreement Modifications. Prompt written notice of any amendment to or other modification of any Swap Agreement or the terms thereof since the delivery of the last certificate pursuant toΒ SectionΒ 8.01(e) (including a summary of the terms of such amendment or modification and the net xxxx-to-market value therefor).
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(q) Other Requested Information. Promptly following any request therefor, such other information regarding the operations, business affairs and financial condition of the Parent, OP LLC, the Borrower or any Subsidiary (including, without limitation, any Plan and any reports or other information required to be filed with respect thereto under the Code or under ERISA), or compliance with the terms of this Agreement or any other Loan Document, as the Administrative Agent or any Lender may reasonably request.
(r) Issuance of Senior Notes and Permitted Refinancing Debt. In the event the Parent decides to issue Senior Notes (including any Convertible Notes) or any Permitted Refinancing Debt as contemplated byΒ SectionΒ 9.02(j), three (3)Β Business Days prior written notice of such offering therefor, the amount thereof and the anticipated date of closing and a copy of the preliminary offering memorandum (if any) and the final offering memorandum (if any) and any other material documents relating to such offering of Senior Notes or such Permitted Refinancing Debt and whether such issuance of Debt is intended to Redeem any Senior Notes.
(s) Regulatory Notices. Promptly, but in any event within five (5)Β Business Days after receipt thereof by any DevCo, a copy of any form of notice, summons, citation, proceeding or order received from the FERC asserting jurisdiction over any material portion of the Gathering Systems.
SectionΒ 8.02 Notices of Material Events. The Parent, OP LLC and/or the Borrower will furnish to the Administrative Agent and each Lender prompt written notice of the following:
(a) the occurrence of any Default;
(b) the filing or commencement of, or the threat in writing of, any action, suit, proceeding, investigation or arbitration by or before any arbitrator or Governmental Authority against or affecting the Parent, OP LLC, the Borrower or any Affiliate thereof or any DevCo not previously disclosed in writing to the Lenders or any material adverse development in any action, suit, proceeding, investigation or arbitration (whether or not previously disclosed to the Lenders) that, in either case could reasonably be expected to result in liability in excess of $2,500,000, not fully covered by insurance, subject to normal deductibles; and
(c) any other development that results in, or could reasonably be expected to result in, a Material Adverse Effect.
Each notice delivered under thisΒ SectionΒ 8.02 shall be accompanied by a statement of a Responsible Officer setting forth the details of the event or development requiring such notice and any action taken or proposed to be taken with respect thereto.
SectionΒ 8.03 Existence; Conduct of Business. The Parent, OP LLC and the Borrower will, and will cause each Subsidiary and DevCo to, do or cause to be done all things necessary to preserve, renew and keep in full force and effect its legal existence and the rights, licenses, permits, privileges and franchises material to the conduct of its business and maintain, if necessary, its qualification to do business in each other jurisdiction in which its Oil and Gas Properties (or in the case of the DevCos, their Midstream Properties) are located or the ownership of its Properties requires such qualification, except where the failure to so qualify could not reasonably be expected to have a Material Adverse Effect; provided that the foregoing shall not prohibit any merger, consolidation, liquidation or dissolution permitted underΒ SectionΒ 9.11.
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SectionΒ 8.04 Payment of Obligations. The Parent, OP LLC and the Borrower will, and will cause each Subsidiary and each DevCo to, pay its obligations, including Tax liabilities of the Parent, OP LLC, the Borrower, each Subsidiary and each DevCo before the same shall become delinquent or in default, except where (a)Β the validity or amount thereof is being contested in good faith by appropriate proceedings, (b)Β the Parent, OP LLC, the Borrower, such Subsidiary or such DevCo has set aside on its books adequate reserves with respect thereto in accordance with GAAP and (c)Β the failure to make payment pending such contest could not reasonably be expected to result in a Material Adverse Effect or result in the seizure or levy of any material Property of the Parent, OP LLC, the Borrower, any Subsidiary or any DevCo.
SectionΒ 8.05 Performance of Obligations under Loan Documents. The Parent, OP LLC and the Borrower will pay the Notes according to the reading, tenor and effect thereof, and the Parent, OP LLC and the Borrower will, and will cause each Subsidiary and each DevCo to, do and perform every act and discharge all of the obligations to be performed and discharged by them under the Loan Documents, including, without limitation, this Agreement, at the time or times and in the manner specified.
SectionΒ 8.06 Operation and Maintenance of Properties. The Borrower, at its own expense, will, and will cause each Subsidiary to:
(a) operate its Oil and Gas Properties and other material Properties or cause such Oil and Gas Properties and other material Properties to be operated in a careful and efficient manner in accordance with the practices of the industry and in compliance with all applicable contracts and agreements and in compliance with all Governmental Requirements, including, without limitation, applicable proration requirements and Environmental Laws, and all applicable laws, rules and regulations of every other Governmental Authority from time to time constituted to regulate the development and operation of its Oil and Gas Properties and the production and sale of Hydrocarbons and other minerals therefrom, except, in each case, where the failure to comply could not reasonably be expected to have a Material Adverse Effect.
(b) keep and maintain all Property material to the conduct of its business in good working order and condition, ordinary wear and tear excepted preserve, maintain and keep in good repair, working order and efficiency (ordinary wear and tear excepted) all of its material Oil and Gas Properties and other material Properties, including, without limitation, all equipment, machinery and facilities.
(c) promptly pay and discharge, or make reasonable and customary efforts to cause to be paid and discharged, all delay rentals, royalties, expenses and indebtedness accruing under the leases or other agreements affecting or pertaining to its Oil and Gas Properties and will do all other things necessary to keep unimpaired their rights with respect thereto and prevent any forfeiture thereof or default thereunder, except, in each case, where the failure to do so could not reasonably be expected to have a Material Adverse Effect.
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(d) promptly perform or make reasonable and customary efforts to cause to be performed, in accordance with industry standards, the obligations required by each and all of the assignments, deeds, leases, sub-leases, contracts and agreements affecting its interests in its Oil and Gas Properties and other material Properties, except, in each case, where the failure to do so could not reasonably be expected to have a Material Adverse Effect.
(e) operate its Oil and Gas Properties and other material Properties or cause or make reasonable and customary efforts to cause such Oil and Gas Properties and other material Properties to be operated in accordance with the practices of the industry and in material compliance with all applicable contracts and agreements and in compliance in all material respects with all Governmental Requirements.
(f) to the extent the Borrower is not the operator of any Property, the Borrower shall use commercially reasonable efforts to cause the operator to comply with thisΒ SectionΒ 8.06.
SectionΒ 8.07 Insurance. The Parent, OP LLC and the Borrower will, and will cause each of their respective Subsidiaries and each DevCo to, maintain, with financially sound and reputable insurance companies, insurance in such amounts and against such risks as are customarily maintained by companies engaged in the same or similar businesses operating in the same or similar locations. The loss payable clauses or provisions in said insurance policy or policies insuring any of the collateral for the Loans shall be endorsed in favor of and made payable to the Administrative Agent as its interests may appear and such policies shall name the Administrative Agent and the Lenders as βadditional insuredsβ and/or βlender loss payeesβ and provide that the insurer will endeavor to give at least 30 days prior notice of any cancellation to the Administrative Agent. With respect to each portion of the real Property (other than pipelines) of any Credit Party or any DevCo on which any Building is located, the Borrower will, and will cause each other Credit Party and DevCo to, obtain flood insurance in such total amount as the applicable Flood Insurance Regulations may require, if at any time such βBuildingβ is located on any such real Property in a special flood hazard area, and otherwise comply with Flood Insurance Regulations.
SectionΒ 8.08 Books and Records; Inspection Rights. The Parent, OP LLC and the Borrower will, and will cause each Subsidiary and DevCo to, keep proper books of record and account in which full, true and correct entries are made of all dealings and transactions in relation to its business and activities. The Parent, OP LLC and the Borrower will, and will cause each Subsidiary and DevCo to, permit any representatives designated by the Administrative Agent or any Lender, upon reasonable prior notice, to visit and inspect its Properties, to examine and make extracts from its books and records, and to discuss its affairs, finances and condition with its officers and independent accountants, all at such reasonable times and as often as reasonably requested.
SectionΒ 8.09 Compliance with Laws. The Parent, OP LLC and the Borrower will, and will cause each Subsidiary and DevCo to, comply with all laws, rules, regulations and orders of any Governmental Authority applicable to it or its Property, except where the failure to do so, individually or in the aggregate, could not reasonably be expected to result in a Material Adverse Effect.
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SectionΒ 8.10 Environmental Matters.
(a) The Parent, OP LLC and the Borrower shall at their sole expense: (i)Β comply, and shall cause its Properties and operations and each Subsidiary and each DevCo and each Subsidiaryβs and each DevCoβs Properties and operations to comply, with all applicable Environmental Laws, the breach of which could be reasonably expected to have a Material Adverse Effect; (ii)Β not dispose of or otherwise release, and shall cause each Subsidiary and DevCo not to dispose of or otherwise release, any oil, oil and gas waste, hazardous substance, or solid waste on, under, about or from any of the Borrowerβs or its Subsidiariesβ or the DevCosβ Properties or any other Property to the extent caused by the Borrowerβs or any of its Subsidiariesβ or any DevCoβs operations except in compliance with applicable Environmental Laws, the disposal or release of which could reasonably be expected to have a Material Adverse Effect; (iii)Β timely obtain or file, and shall cause each Subsidiary to timely obtain or file, all notices, permits, licenses, exemptions, approvals, registrations or other authorizations, if any, required under applicable Environmental Laws to be obtained or filed in connection with the operation or use of the Borrowerβs or the Subsidiariesβ Properties, which failure to obtain or file could reasonably be expected to have a Material Adverse Effect; (iv)Β promptly commence and diligently prosecute to completion, and shall cause each Subsidiary and DevCo to promptly commence and diligently prosecute to completion, any assessment, evaluation, investigation, monitoring, containment, cleanup, removal, repair, restoration, remediation or other remedial obligations (collectively, the βRemedial Workβ) in the event any Remedial Work is required or reasonably necessary under applicable Environmental Laws and industry practice because of or in connection with the actual or suspected past, present or future disposal or other release of any oil, oil and gas waste, hazardous substance or solid waste on, under, about or from any of the Borrowerβs or the Subsidiariesβ or the DevCosβ Properties, which failure to commence and diligently prosecute to completion could reasonably be expected to have a Material Adverse Effect; and (v)Β establish and implement, and shall cause each Subsidiary and DevCo to establish and implement, such policies of environmental audit and compliance as may be necessary to determine and assure that the Borrowerβs and the Subsidiariesβ and the DevCosβ obligations under thisΒ SectionΒ 8.10(a) are timely and fully satisfied, which failure to establish and implement could reasonably be expected to have a Material Adverse Effect.
(b) The Parent, OP LLC and the Borrower will promptly, but in no event later than five days after the Borrowerβs knowledge of the occurrence of a triggering event, notify the Administrative Agent and the Lenders in writing of any threatened action, investigation or inquiry by any Governmental Authority or any threatened demand or lawsuit by any landowner or other third party against the Borrower or the Subsidiaries or the DevCos or their respective Properties of which the Borrower has knowledge in connection with any Environmental Laws (excluding routine testing and corrective action) if the Borrower reasonably anticipates that such action will result in liability (whether individually or in the aggregate) in excess of $2,500,000, not fully covered by insurance, subject to normal deductibles.
(c) The Parent, OP LLC and the Borrower will, and will cause each Subsidiary to, provide environmental audits and tests in accordance with American Society of Testing Materials standards upon reasonable request by the Administrative Agent and the Lenders and no more than once per year in the absence of any Event of Default (or as otherwise required to be obtained by the Administrative Agent or the Lenders by any Governmental Authority), in connection with any future acquisitions of Oil and Gas Properties or other Properties.
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SectionΒ 8.11 Further Assurances.
(a) The Parent, OP LLC and the Borrower at their sole expense will, and will cause each Subsidiary and DevCo to, promptly execute and deliver to the Administrative Agent all such other documents, agreements and instruments reasonably requested by the Administrative Agent to comply with, cure any defects or accomplish the conditions precedent, covenants and agreements of the Parent, OP LLC, the Borrower, any Subsidiary or any DevCo, as the case may be, in the Loan Documents, including the Notes, or to further evidence and more fully describe the collateral intended as security for the Indebtedness, or to correct any omissions in this Agreement or the Security Instruments, or to state more fully the obligations secured therein, or to perfect, protect or preserve any Liens created pursuant to this Agreement or any of the Security Instruments or the priority thereof, or to make any recordings, file any notices or obtain any consents, all as may be reasonably necessary or appropriate, in the sole discretion of the Administrative Agent, in connection therewith.
(b) The Parent, OP LLC and the Borrower hereby authorizes the Administrative Agent to file one or more financing or continuation statements, and amendments thereto, relative to all or any part of the Collateral without the signature of the Borrower or any other Guarantor or any DevCo where permitted by law. A carbon, photographic or other reproduction of the Security Instruments or any financing statement covering the Collateral or any part thereof shall be sufficient as a financing statement where permitted by law. The Parent, OP LLC and the Borrower acknowledge and agree that any such financing statement may describe the collateral as βall assetsβ of the applicable Credit Party or applicable DevCo or words of similar effect as may be required by the Administrative Agent
SectionΒ 8.12 Reserve Reports.
(a) On or before MarchΒ 1st and SeptemberΒ 1st of each year, commencing SeptemberΒ 1, 2013, the Borrower shall furnish to the Administrative Agent and the Lenders a Reserve Report evaluating the Oil and Gas Properties of the Borrower and its Subsidiaries as of the immediately preceding JanuaryΒ 1 and JulyΒ 1. The Reserve Report as of JanuaryΒ 1 of each year shall be comprised of (i)Β a report prepared by one or more Approved Petroleum Engineers with regards to not less than 80% of the total value of the Oil and Gas Properties of the Borrower and its Subsidiaries and (ii)Β a report on the remainder of the Oil and Gas Properties of the Borrower and its Subsidiaries prepared by or under the supervision of the chief engineer of the Borrower who shall certify that such portion of such Reserve Report (x)Β is true and correct in all material respects, and (y)Β has been prepared in accordance with the procedures used to prepare the portion of such Reserve Report that was prepared by one or more Approved Petroleum Engineers. The JulyΒ 1 Reserve Report of each year shall be prepared by or under the supervision of the chief engineer of the Borrower who shall certify such Reserve Report (x)Β to be true and accurate in all material respects and (y)Β to have been prepared in accordance with the procedures used in the immediately preceding JanuaryΒ 1 Reserve Report. For purposes of thisΒ SectionΒ 8.12(a), with respect to any Reserve Report (or portion thereof)
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prepared by or under the supervision of the chief engineer of the Borrower, it is understood that projections concerning volumes attributable to the Oil and Gas Properties and production and cost estimates contained in each Reserve Report are necessarily based upon professional opinions, estimates and projections and that none of the Parent, OP LLC, the Borrower, the Subsidiaries or such Responsible Officer warrants that such opinions, estimates and projections will ultimately prove to have been accurate.
(b) In the event of an Interim Redetermination, the Borrower shall furnish to the Administrative Agent and the Lenders a Reserve Report prepared by or under the supervision of the chief engineer of the Borrower who shall certify such Reserve Report to be true and accurate in all material respects, it being understood that projections concerning volumes attributable to the Oil and Gas Properties and production and cost estimates contained in each Reserve Report are necessarily based upon professional opinions, estimates and projections and that none of the Parent, OP LLC, the Borrower, the Subsidiaries or such Responsible Officer warrants that such opinions, estimates and projections will ultimately prove to have been accurate, and to have been prepared in accordance with the procedures used in the immediately preceding JanuaryΒ 1 Reserve Report. For any Interim Redetermination requested by the Administrative Agent or the Borrower pursuant toΒ SectionΒ 2.07(b), the Borrower shall provide such Reserve Report with an βas ofβ date as required by the Administrative Agent as soon as possible, but in any event no later than thirty (30)Β days following the receipt of such request.
(c) No later than (x)Β MarchΒ 15 in the case of the Reserve Report required to be delivered on or prior to MarchΒ 1, (y)Β SeptemberΒ 15 in the case of the Reserve Report required to be delivered on or prior to SeptemberΒ 1 and (z)Β fifteen days after any Reserve Report delivered pursuant toΒ SectionΒ 8.12(b), the Borrower shall provide to the Administrative Agent and the Lenders a certificate from a Responsible Officer certifying that: (i)Β the information contained in the Reserve Report and any other information delivered in connection therewith is true and correct in all material respects, it being understood that projections concerning volumes attributable to the Oil and Gas Properties and production and cost estimates contained in each Reserve Report are necessarily based upon professional opinions, estimates and projections and that none the Parent, OP LLC, the Borrower, the Subsidiaries or such Responsible Officer warrants that such opinions, estimates and projections will ultimately prove to have been accurate, (ii)Β the Borrower or the Subsidiaries owns good and defensible title to the Oil and Gas Properties evaluated in such Reserve Report and such Properties are free of all Liens except for Liens permitted byΒ SectionΒ 9.03, (iii)Β except as set forth on an exhibit to the certificate, on a net basis there are no gas imbalances, take or pay or other prepayments in excess of the volume specified inΒ SectionΒ 7.18 with respect to its Oil and Gas Properties evaluated in such Reserve Report which would require the Borrower or any Subsidiary to deliver Hydrocarbons either generally or produced from such Oil and Gas Properties at some future time without then or thereafter receiving full payment therefor, (iv)Β none of their Oil and Gas Properties (as defined in subsections (a), (b), (c), (d) and (e)Β of the definition thereof) have been sold since the date of the last Borrowing Base determination except as set forth on an exhibit to the certificate, which certificate shall list all of its Oil and Gas Properties (as defined in subsections (a), (b), (c), (d) and (e)Β of the definition thereof) sold and in such detail as reasonably required by the Administrative Agent; provided that, this clauseΒ (iv)Β shall not apply to the sale of oil that would not otherwise be included in such
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certificate but for the fact that it has been stored in tanks in the ordinary course of business for a short period of time pending collection and sale, (v)Β attached to the certificate is a list of all marketing agreements entered into subsequent to the later of the date hereof or the most recently delivered Reserve Report which the Borrower could reasonably be expected to have been obligated to list on ScheduleΒ 7.19 had such agreement been in effect on the date hereof and (vi)Β attached thereto is a schedule of the Oil and Gas Properties evaluated by such Reserve Report that are Mortgaged Properties and demonstrating the percentage of the total proved value of such Mortgaged Properties represent in compliance withΒ SectionΒ 8.14(a).
SectionΒ 8.13 TitleΒ Information.
(a) On or before the delivery to the Administrative Agent and the Lenders of each Reserve Report required byΒ SectionΒ 8.12(a), the Borrower will deliver title information in form and substance reasonably acceptable to the Administrative Agent covering enough of the Oil and Gas Properties evaluated by such Reserve Report that were not included in the immediately preceding Reserve Report, so that the Administrative Agent shall have received together with title information previously delivered to the Administrative Agent, reasonably satisfactory title information on at least 80% of the total value of the Oil and Gas Properties evaluated by such Reserve Report.
(b) If the Borrower has provided title information for additional Properties underΒ SectionΒ 8.13(a), the Borrower shall, within 60 days of notice from the Administrative Agent that title defects or exceptions exist with respect to such additional Properties, either (i)Β cure any such title defects or exceptions (including defects or exceptions as to priority) which are not permitted byΒ SectionΒ 9.03 raised by such information, (ii)Β substitute acceptable Mortgaged Properties with no title defects or exceptions except for Excepted Liens (other than Excepted Liens described in clausesΒ (e),Β (g) andΒ (h) of such definition) having an equivalent value or (iii)Β deliver title information in form and substance reasonably acceptable to the Administrative Agent so that the Administrative Agent shall have received, together with title information previously delivered to the Administrative Agent, reasonably satisfactory title information on at least 80% of the value of the Oil and Gas Properties evaluated by such Reserve Report.
(c) If the Borrower is unable to cure any title defect requested by the Administrative Agent or the Lenders to be cured within the 60-day period or the Borrower does not comply with the requirements to provide reasonably acceptable title information covering 80% of the value of the Oil and Gas Properties evaluated in the most recent Reserve Report, such default shall not be a Default, but instead the Administrative Agent and/or the Required Lenders shall have the right to exercise the following remedy in their sole discretion from time to time, and any failure to so exercise this remedy at any time shall not be a waiver as to future exercise of the remedy by the Administrative Agent or the Lenders. To the extent that the Administrative Agent or the Required Lenders are not reasonably satisfied with title to any Mortgaged Property after the 60-day period has elapsed, such unacceptable Mortgaged Property shall not count towards the 80% requirement, and the Administrative Agent may send a notice to the Borrower and the Lenders that the then outstanding Borrowing Base shall be reduced by an amount as determined by the Required Lenders to cause the Borrower to be in compliance with the requirement to provide reasonably acceptable title information on 80% of the value of the Oil and Gas Properties. This new Borrowing Base shall become effective immediately after receipt of such notice.
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SectionΒ 8.14 Additional Collateral; Additional Guarantors.
(a) In connection with each redetermination of the Borrowing Base, the Borrower shall review the Reserve Report and the list of current Mortgaged Properties (as described inΒ SectionΒ 8.12(c)(vi)) to ascertain whether the Mortgaged Properties represent at least 90% of the total value of the Oil and Gas Properties evaluated in the most recently completed Reserve Report after giving effect to exploration and production activities, acquisitions, dispositions and production. In the event that the Mortgaged Properties do not represent at least 90% of such total value, then the Borrower shall, and shall cause the Subsidiaries to, grant, within thirty (30)Β days of delivery of the certificate required underΒ SectionΒ 8.12(c), to the Administrative Agent as security for the Indebtedness a first-priority Lien interest (provided that Excepted Liens of the type described in clausesΒ (a)Β to (d)Β and (f) of the definition thereof may exist, but subject to the provisos at the end of such definition) on additional Oil and Gas Properties of the Credit Parties not already subject to a Lien of the Security Instruments such that after giving effect thereto, the Mortgaged Properties will represent at least 90% of such total value; provided that notwithstanding the foregoing, until the date that is thirty (30)Β days following the Fifth Amendment Effective Date (or such later date as the Administrative Agent may agree in its sole discretion), the Mortgaged Properties shall only need to represent 80% of the total value of the Oil and Gas Properties evaluated in the most recently completed Reserve Report. All such Liens will be created and perfected by and in accordance with the provisions of deeds of trust, security agreements and financing statements or other Security Instruments, all in form and substance reasonably satisfactory to the Administrative Agent and in sufficient executed (and acknowledged where necessary or appropriate) counterparts for recording purposes. In order to comply with the foregoing, if any Subsidiary places a Lien on its Oil and Gas Properties and such Subsidiary is not a Guarantor, then it shall become a Guarantor and comply withΒ SectionΒ 8.14(b).
(b) The Parent, OP LLC and the Borrower shall promptly cause each Material Subsidiary, and any other Domestic Subsidiary that guarantees any Debt of any other Credit Party, to guarantee the Indebtedness pursuant to the Guaranty and Security Agreement. In connection with any such guaranty, the Parent, OP LLC and the Borrower shall (A)Β cause such Domestic Subsidiary to execute and deliver the Guaranty and Security Agreement or a supplement thereto, as applicable, (B)Β cause the Credit Party that owns Equity Interests in such Domestic Subsidiary to pledge all of the Equity Interests of such new Domestic Subsidiary owned by such Credit Party pursuant to the Guaranty and Security Agreement (including, without limitation, delivery (if applicable) of original certificates evidencing the Equity Interests of such Domestic Subsidiary, together with an appropriate undated stock powers for each certificate duly executed in blank by the registered owner thereof) and (C)Β execute and deliver such other additional closing documents, certificates and legal opinions as shall reasonably be requested by the Administrative Agent.
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(c) In the event that the Borrower or any Material Subsidiary becomes the owner of a Foreign Subsidiary which has total assets in excess of $1,000,000, then the Borrower shall promptly, or shall cause such Material Subsidiary to promptly, pledge 65% of all the Equity Interests of such Foreign Subsidiary (including, without limitation, delivery of original stock certificates evidencing such Equity Interests of such Foreign Subsidiary, together with appropriate stock powers for each certificate duly executed in blank by the registered owner thereof) and execute and deliver such other additional closing documents, certificates and legal opinions as shall reasonably be requested by the Administrative Agent.
(d) If any Event of Default shall occur and be continuing, then the Parent, OP LLC and the Borrower shall, and shall cause each Domestic Subsidiary of either thereof to, within ten (10)Β Business Days after notice by Administrative Agent, grant to the Administrative Agent as security for the Indebtedness a first-priority Lien interest (provided that Excepted Liens of the type described in clausesΒ (a) toΒ (d) andΒ (f) of the definition thereof may exist, but subject to the provisos at the end of such definition) on all of their Oil and Gas Properties not already subject to a Lien of the Security Instruments such that after giving effect thereto, the Mortgaged Properties will represent substantially all of the Oil and Gas Properties of the Borrower and the Domestic Subsidiaries. All such Liens will be created and perfected by and in accordance with the provisions of deeds of trust, security agreements and financing statements or other Security Instruments, all in form and substance reasonably satisfactory to the Administrative Agent and in sufficiently executed (and acknowledged where necessary or appropriate) counterparts for recording purposes.
(e) Notwithstanding any provision in any of the Loan Documents to the contrary (except for the DevCo Mortgages), in no event is any Building (as defined in the applicable Flood Insurance Regulations) or Manufactured (Mobile) Home (as defined in the applicable Flood Insurance Regulations) owned by any Credit Party included in the Mortgaged Property and no Building or Manufactured (Mobile) Home shall be encumbered by any Security Instrument; provided, that (i)Β the applicable Credit Partyβs interests in all lands and Hydrocarbons situated under any such Building or Manufactured (Mobile) Home shall be included in the Mortgaged Property and shall be encumbered by the Security Instruments and (ii)Β the Parent, OP LLC and the Borrower shall not, and shall not permit any of their respective Subsidiaries to, permit to exist any Lien on any Building or Manufactured (Mobile) Home except Excepted Liens. For the avoidance of doubt, the exclusion contained in this SectionΒ 8.14(e) shall not apply to the DevCo Mortgages.
(f) The Parent, OP LLC and the Borrower shall promptly cause each DevCo to guarantee the Indebtedness pursuant to the DevCo Guaranty. In connection with any such guaranty, the Parent, OP LLC and the Borrower shall (i)Β cause such DevCo to execute and deliver a DevCo Mortgage, (ii)Β cause the Credit Party that owns Equity Interests in such DevCo to pledge all of the Equity Interests of such DevCo pursuant to the Guaranty and Security Agreement (including, without limitation, delivery (if applicable) of original certificates evidencing the Equity Interests of such DevCo, together with an appropriate undated stock powers for each certificate duly executed in blank by the registered owner thereof) and (iii)Β execute and deliver such other additional closing documents, certificates and legal opinions as shall reasonably be requested by the Administrative Agent. The Parent, OP LLC and the Borrower shall, and shall cause each DevCo to, in connection with but reasonably prior to its delivery of additional Security Instruments pursuant to this SectionΒ 8.14(f), provide to the Administrative Agent the applicable Flood Deliverables with respect to any real property that will be subject to such additional Security Instruments.
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(g) Within thirty (30)Β days (or such longer period not to exceed ninety (90)Β days as the Administrative Agent may agree in its sole discretion) afterΒ each semi-annual period ending on JuneΒ 30 or DecemberΒ 31, beginning with the period beginning on the date hereof and ending on DecemberΒ 31, 2017, the Parent, OP LLC and the Borrower shall cause the DevCos to provide to the Administrative Agent, without duplication, copies of all recorded Deeds and/or Rights of Way with respect to its Midstream Properties that have been received or otherwise acquired by any DevCo during such period, and to execute and deliver mortgages or other applicable Security Instruments on such Midstream Properties, Deeds and/or Rights of Way in favor of the Administrative Agent, in each case in form and substance satisfactory to the Administrative Agent. In connection with the foregoing, to the extent reasonably requested by the Administrative Agent, the Borrower shall deliver, or shall cause to be delivered, (x)Β title and extended coverage insurance covering real property subject to the additional Security Instruments in an amount equal to the purchase price of such interest in real property (or such other amount as shall be reasonably specified by the Administrative Agent) as well as a current ALTA survey thereof, together with a surveyorβs certificate, (y)Β any consents or estoppels reasonably deemed necessary or advisable by the Administrative Agent in connection with such Security Instruments, each of the foregoing in form and substance reasonably satisfactory to the Administrative Agent and (z)Β legal opinions, which opinions shall be in form and substance, and from counsel, reasonably satisfactory to the Administrative Agent.
SectionΒ 8.15 ERISA Compliance. The Parent, OP LLC and the Borrower will promptly furnish and will cause their respective Subsidiaries and any ERISA Affiliate to promptly furnish to the Administrative Agent (a)Β promptly after the filing thereof with the United States Secretary of Labor or the Internal Revenue Service, copies of each annual and other report with respect to each Plan or any trust created thereunder, and (b)Β immediately upon becoming aware of the occurrence of any βprohibited transaction,β as described in sectionΒ 406 of ERISA or in sectionΒ 4975 of the Code, in connection with any Plan or any trust created thereunder, a written notice signed by the President or the principal Financial Officer, the Parent, the Subsidiary or the ERISA Affiliate, as the case may be, specifying the nature thereof, what action the Borrower, the Parent, OP LLC, the Subsidiary or the ERISA Affiliate is taking or proposes to take with respect thereto, and, when known, any action taken or proposed by the Internal Revenue Service or the Department of Labor with respect thereto.
SectionΒ 8.16 DevCo Properties. The Parent, OP LLC and the Borrower will cause each DevCo to:
(a) operate its Midstream Properties and other material Properties or cause such Midstream and other material Properties to be operated in a careful and efficient manner in accordance with the practices of the industry and in compliance with all applicable contracts and agreements and in compliance with all Governmental Requirements, including, without limitation, applicable proration requirements and Environmental Laws, and all applicable laws, rules and regulations of every other Governmental Authority, except, in each case, where the failure to comply could not reasonably be expected to have a Material Adverse Effect.
(b) keep and maintain all Property material to the conduct of its business in good working order and condition, ordinary wear and tear excepted, and preserve, maintain and keep in good repair, working order and efficiency (ordinary wear and tear excepted) all of its material Midstream Properties and other material Properties, including, without limitation, all equipment, machinery and facilities, except where failure to do so could not reasonably be expected to have a Material Adverse Effect.
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(c) promptly perform or make reasonable and customary efforts to cause to be performed, in accordance with industry standards, the obligations required by each and all of the assignments, deeds, leases, sub-leases, contracts and agreements affecting its interests in its Midstream Properties and other material Properties, except, in each case, where the failure to do so could not reasonably be expected to have a Material Adverse Effect.
(d) maintain or cause the maintenance of the interests and rights (i)Β which are necessary to maintain the Rights of Way for the Gathering Systems and to maintain the other Midstream Properties, and (ii)Β which individually or in the aggregate, could, if not maintained, reasonably be expected to have a Material Adverse Effect.
(e) subject to Excepted Liens, maintain the Gathering Systems within the confines of the Rights of Way without material encroachment upon any adjoining property and maintain the Processing Plants within the boundaries of the Deeds and without material encroachment upon any adjoining property.
(f) maintain such rights of ingress and egress necessary to permit the DevCos to inspect, operate, repair, and maintain the Gathering Systems and the other Midstream Properties to the extent that failure to maintain such rights, individually or in the aggregate, could reasonably be expected to have a Material Adverse Effect and provided that the DevCos may hire third parties to perform these functions.
(g) maintain all material agreements, licenses, permits, and other rights required for any of the foregoing described in this SectionΒ 8.16 in full force and effect in accordance with their terms, timely make any payments due thereunder, and prevent any default thereunder which could result in a termination or loss thereof, except any such failure to pay or default that could not reasonably, individually or in the aggregate, be expected to cause a Material Adverse Effect.
(h) to the extent any DevCo is not the operator of any Property, such DevCo shall use commercially reasonable efforts to cause the operator to comply with this SectionΒ 8.16, but failure of the operator to so comply will not constitute a Default or Event of Default hereunder.
SectionΒ 8.17 Marketing Activities. The Parent, OP LLC and the Borrower will not, and will not permit any Subsidiaries to, engage in marketing activities for any Hydrocarbons or enter into any contracts related thereto other than (a)Β contracts for the sale of Hydrocarbons scheduled or reasonably estimated to be produced from their proved Oil and Gas Properties during the period of such contract, (b)Β contracts for the sale of Hydrocarbons scheduled or reasonably estimated to be produced from proved Oil and Gas Properties of third parties during the period of such contract associated with the Oil and Gas Properties of the Borrower and the Subsidiaries that the Borrower or one of the Subsidiaries has the right to market pursuant to joint operating agreements, unitization agreements or other similar contracts that are usual and customary in the
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oil and gas business and (c)Β other contracts for the purchase and/or sale of Hydrocarbons of third parties (i)Β which have generally offsetting provisions (i.e., corresponding pricing mechanics, delivery dates and points and volumes) such that no βpositionβ is taken and (ii)Β for which appropriate credit support has been taken to alleviate the material credit risks of the counterparty thereto.
SectionΒ 8.18 Commodity Exchange Act Keepwell Provisions. Each of the Parent, OP LLC and the Borrower, to the extent that it is a Qualified ECP Guarantor, hereby guarantees the payment and performance of all Indebtedness of each Credit Party (other than itself) and absolutely, unconditionally and irrevocably undertakes to provide such funds or other support as may be needed from time to time by each Credit Party (other than itself) in order for such Credit Party to honor its obligations under the Guaranty and Security Agreement including obligations with respect to Swap Agreements (provided, however, that the Parent, OP LLC and the Borrower, to the extent each is a Qualified ECP Guarantor, shall only be liable under thisΒ SectionΒ 8.18 for the maximum amount of such liability that can be hereby incurred (a)Β without rendering its obligations under thisΒ SectionΒ 8.18, or otherwise under this Agreement or any Loan Document, as it relates to such other Credit Parties, voidable under applicable law relating to fraudulent conveyance or fraudulent transfer, and not for any greater amount and (b)Β without rendering such Credit Party liable for amounts to creditors, other than the Secured Parties, that such Credit Party would not otherwise have made available to such creditors if thisΒ SectionΒ 8.18 was not in effect). The obligations of the Parent, OP LLC and the Borrower, to the extent each is a Qualified ECP Guarantor, under thisΒ SectionΒ 8.18 shall remain in full force and effect until all Indebtedness is paid in full to the Lenders, the Administrative Agent and all other Secured Parties, and all of the Lendersβ Commitments are terminated. Each of the Parent, OP LLC and the Borrower that is a Qualified ECP Guarantor intends that thisΒ SectionΒ 8.18 constitute, and thisΒ SectionΒ 8.18 shall be deemed to constitute, a βkeepwell, support, or other agreementβ for the benefit of each other Credit Party for all purposes of SectionΒ 1a(18)(A)(v)(II) of the Commodity Exchange Act.
SectionΒ 8.19 DevCo Guaranty. Each of the Parent, OP LLC and the Borrower shall cause each DevCo to comply with the covenants contained in the DevCo Guaranty.
SectionΒ 8.20 Ownership of DevCo Equity Interests. The Parent, OP LLC and the Borrower (a)Β shall cause 100% of the Equity Interests in each DevCo to be owned collectively (i)Β directly by OMS and (ii)Β directly or indirectly by OMP and (b)Β shall not permit any other Person to own any Equity Interest in any DevCo.
SectionΒ 8.21 Ownership of General Partner Equity Interests. The Parent, OP LLC and the Borrower (a)Β shall cause 100% of the Equity Interests in the General Partner (other than the ClassΒ B Units) to be ownedΒ directly or indirectly by the Parent and (b)Β shall not permit any other Person to own any Equity Interest in the General Partner (other than the ClassΒ B Units).
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ARTICLEΒ IX
Negative Covenants
Until the Commitments have expired or terminated and the principal of and interest on each Loan and all fees payable hereunder and all other amounts payable under the Loan Documents have been paid in full and all Letters of Credit have expired or terminated and all LC Disbursements shall have been reimbursed, each of the Parent, OP LLC and the Borrower covenants and agrees with the Lenders that:
SectionΒ 9.01 Financial Covenants.
(a) Ratio of EBITDAX to Interest Expense. The Parent, OP LLC and the Borrower will not, as of the last day of any fiscal quarter, permit the ratio of (i)Β EBITDAX for the four fiscal quarter period ending on such date to (ii)Β Interest Expense for the four fiscal quarter period ending on such date to be less than 2.5 to 1.0.
(b) Current Ratio. The Parent, OP LLC and the Borrower will not permit, as of the last day of any fiscal quarter, the ratio of (i)Β consolidated current assets (including the unused amount of the total Commitments, but excluding non-cash assets under ASC 815) of the Parent and the Consolidated Subsidiaries to (ii)Β consolidated current liabilities (excluding non-cash obligations under ASC 815 and current maturities under this Agreement) of the Parent and the Consolidated Subsidiaries to be less than 1.0 to 1.0.
(c) Ratio of Total Debt to EBITDAX. The Parent, OP LLC and the Borrower will not, as of the last day of any fiscal quarter commencing with the first full fiscal quarter ending after the Trigger Date, permit the ratio of Total Debt as of such time to Annualized EBITDAX to be greater than (i)Β 4.25 to 1.0 for the first two full fiscal quarters ending after the Trigger Date and (ii)Β 4.00 to 1.00 for each fiscal quarter thereafter.
SectionΒ 9.02 Debt. The Parent, OP LLC, the Borrower will not, and will not permit any of their respective Subsidiaries to, incur, create, assume or suffer to exist any Debt, except:
(a) the Notes or other Indebtedness arising under the Loan Documents or any guaranty of or suretyship arrangement for the Notes or other Indebtedness arising under the Loan Documents.
(b) Debt of the Borrower and the Subsidiaries existing on the date hereof that is reflected in the Financial Statements.
(c) accounts payable and accrued expenses, liabilities or other obligations to pay the deferred purchase price of Property or services, from time to time incurred in the ordinary course of business which are not greater than sixty (60)Β days past the date of invoice or delinquent or which are being contested in good faith by appropriate action and for which adequate reserves have been maintained in accordance with GAAP.
(d) Debt under Capital Leases not to exceed $10,000,000.
(e) Debt associated with bonds or surety obligations required by Governmental Requirements in connection with the operation of the Oil and Gas Properties.
(f) intercompany Debt between the Parent, OP LLC, the Borrower and any Subsidiary or between Subsidiaries to the extent permitted byΒ SectionΒ 9.05(g); provided that (i)Β such Debt is not held, assigned, transferred, negotiated or pledged to any Person other than
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the Parent, OP LLC, the Borrower or one of its Wholly-Owned Subsidiaries, (ii)Β any such Debt owed by the Parent, OP LLC, the Borrower or a Guarantor shall be subordinated to the Indebtedness on terms set forth in the Guaranty and Security Agreement and (iii)Β any such Debt shall not have any scheduled amortization prior to AugustΒ 5, 2018.
(g) endorsements of negotiable instruments for collection in the ordinary course of business.
(h) other Debt (excluding Debt of Foreign Subsidiaries) not to exceed $10,000,000 in the aggregate at any one time outstanding.
(i) Debt of Foreign Subsidiaries to non-Affiliated Persons that is not secured by liens on any property of, not guaranteed by and not other otherwise of recourse to the Borrower or any Guarantor.
(j) unsecured Senior Notes of the Parent and any guarantees thereof and any unsecured Permitted Refinancing Debt and any guarantees thereof; provided that (i)Β the Borrower shall have complied withΒ SectionΒ 8.01(r), (ii)Β at the time of incurring such Senior Notes or Permitted Refinancing Debt (A)Β no Default has occurred and is then continuing and (B)Β no Default would result from the incurrence of such Senior Notes or Permitted Refinancing Debt, as applicable, after giving effect on a pro forma basis to the incurrence of such Senior Notes or Permitted Refinancing Debt (and any concurrent repayment of Debt with the proceeds of such incurrence, if any), (iii)Β on the same day as the incurrence of such Debt (or in the case of Permitted Refinancing Debt, on the Reduction Date), the Borrowing Base shall be adjusted to the extent required byΒ SectionΒ 2.07(e) and prepayment is made to the extent required byΒ SectionΒ 3.04(c)(iv) and no Borrowing Base Deficiency would then exist after giving effect to such adjustment and prepayment, (iv)Β such Senior Notes or Permitted Refinancing Debt, as applicable, do not have any scheduled principal amortization prior to the date which is one year after the Maturity Date, (v)Β such Senior Notes or Permitted Refinancing Debt does not mature sooner than the date which is one year after the Maturity Date, (vi)Β such Senior Notes or Permitted Refinancing Debt and any guarantees thereof are on terms, taken as a whole, at least as favorable to the Borrower and the Guarantors as market terms for issuers of similar size and credit quality given the then prevailing market conditions as determined by the Administrative Agent and (vii)Β such Senior Notes or Permitted Refinancing Debt do not have any mandatory prepayment or redemption provisions (other than customary change of control or asset sale tender offer provisions) which would require a mandatory prepayment or redemption in priority to the Indebtedness; provided that if such Senior Notes are issued to finance all or a portion of a direct or indirect acquisition of Oil and Gas Properties, such Senior Notes may contain mandatory prepayment or redemption provisions providing for the repayment or redemption of such Senior Notes in the event that such acquisition is not consummated by a certain date in an amount not to exceed the principal amount of such Senior Notes and any accrued interest thereon through the prepayment or redemption date.
SectionΒ 9.03 Liens. The Parent, OP LLC and the Borrower will not, and will not permit any of their respective Subsidiaries to, create, incur, assume or permit to exist any Lien on any of its Properties (now owned or hereafter acquired), except:
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(a) Liens securing the payment of any Indebtedness.
(b) Excepted Liens.
(c) Liens securing Capital Leases permitted byΒ SectionΒ 9.02(d) but only on the Property under lease.
(d) Liens securing intercompany Debt underΒ SectionΒ 9.02(f), provided that such Liens are subordinated on terms satisfactory to the Administrative Agent and the Required Lenders.
(e) Liens on Property not constituting collateral for the Indebtedness and not otherwise permitted by the foregoing clauses of thisΒ SectionΒ 9.03; provided that the aggregate principal or face amount of all Debt secured under thisΒ SectionΒ 9.03(e) shall not exceed $2,500,000 at any time.
SectionΒ 9.04 Dividends, Distributions and Redemptions; Repayment of Senior Notes and Amendment to Terms of Senior Notes.
(a) Restricted Payments. The Parent, OP LLC and the Borrower will not, and will not permit any of their respective Subsidiaries to, declare or make, or agree to pay or make, directly or indirectly, any Restricted Payment, return any capital or make any distribution of its Property to its Equity Interest holders, except (i)Β the Parent and OP LLC may declare and pay dividends with respect to its Equity Interests payable solely in additional shares of its Equity Interests (other than Disqualified Capital Stock), (ii)Β Subsidiaries (other than the General Partner) of the Parent may declare and pay dividends ratably with respect to their Equity Interests, (iii)Β the Parent and OP LLC may make Restricted Payments pursuant to and in accordance with stock option plans or other benefit plans for management or employees of the Borrower and its Subsidiaries, (iv)Β the Parent, OP LLC and the Borrower may make payments to former employees in connection with the termination of such former employeeβs employment in an aggregate amount not to exceed $250,000 in any calendar year for the purpose of repurchasing Equity Interests in any member of the Parent, OP LLC or the Borrower, as applicable, issued to such former employee pursuant to stock option plans or other benefit plans for management or employees of the Borrower and its Subsidiaries, (v)Β the Parent may pay the purchase price for any Permitted Bond Hedge Transaction(s), (vi)Β the Parent may pay cash and/or deliver common stock upon the settlement, termination or redemption of any Permitted Warrant Transaction(s), (vii)Β the Parent may pay cash and/or deliver common stock in satisfaction of the Parentβs obligations in respect of the Convertible Notes whether upon conversion of such securities, upon the occurrence of a change of control (or similar event, however so defined by the terms of such securities) or other customary mandatory prepayment or redemption event permitted byΒ SectionΒ 9.02(j)(vii), upon repurchase of such securities pursuant to a Redemption thereof otherwise permitted by this Agreement or at maturity of such securities, (viii)Β the General Partner may declare and make Restricted Payments to any other Credit Party and (ix)Β so long has no Default, Event of Default or Borrowing Base Deficency has occurred and is continuting, the General Partner may declare and make Restricted Payments in cash ratably with respect to all of its Equity Interests (inclusive of the ClassΒ A Units (as defined in the General Partners LLC Agreement) and the ClassΒ B Units).
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(b) Repayment of Senior Notes, Permitted Refinancing Debt and Convertible Notes; Amendment to Terms of Senior Notes, Permitted Refinancing Debt and Convertible Notes. The Parent, OP LLC and the Borrower will not, and will not permit any of their respective Subsidiaries to, prior to the date that is ninety-one (91)Β days after the Maturity Date: (i)Β call, make or offer to make any optional or voluntary Redemption of or otherwise optionally or voluntarily Redeem (whether in whole or in part) the Senior Notes, Permitted Refinancing Debt or the Convertible Notes; provided that (A)Β the Parent may Redeem the Senior Notes, Permitted Refinancing Debt or Convertible Notes in one or more transactions in an aggregate amount not to exceed the net cash proceeds of any sale of Equity Interests (other than Disqualified Capital Stock) of the Parent to the extent that (x)Β such Redemption is consummated within 180 days of the consummation of such sale of Equity Interest (or, with respect to any Equity Interests sold pursuant to that certain Underwriting Agreement dated as of JanuaryΒ 28, 2016, between the Parent and Citigroup Global Markets Inc., within 270 days of such sale) and (y)Β after giving pro forma effect to such Redemption, no Default, Event of Default or Borrowing Base Deficiency shall have occurred and be continuing, (B)Β the Parent may Redeem the Senior Notes, Permitted Refinancing Debt or Convertible Notes in one more transactions to the extent that (x)Β the Specified Redemption Test is satisfied at the time of such Redemption, (y)Β the amount paid in respect of any Senior Note, Permitted Refinancing Debt or Convertible Note does not exceed 60% of the stated principal amount of such Senior Note and (z)Β the aggregate cash consideration paid by the Parent in respect of all Redemptions of Senior Notes, Permitted Refinancing Debt or Convertible Note pursuant to thisΒ SectionΒ 9.04(b)(i)(B) shall not exceed $175,000,000, (C)Β the Parent may Redeem the Senior Notes or Permitted Refinancing Debt with the proceeds of any Permitted Refinancing Debt substantially concurrently with the incurrence of such Permitted Refinancing Debt, provided that in the case of Permitted Refinancing Debt incurred pursuant to a Qualified Convertible Notes Offering, such Redemption must be consummated within ninety days of the incurrence of such Permitted Refinancing Debt, and (D)Β the Parent may Redeem the 2019 Notes with the proceeds received by the Credit Parties from the Midstream MLP Contribution provided that (x)Β such Redemption must occur within one hundred eighty (180)Β days after the consummation of the Midstream MLP IPO and (y)Β after giving pro forma effect to such Redemption, no Default, Event of Default or Borrowing Base Deficiency shall have occurred and be continuing, or (ii)Β amend, modify, waive or otherwise change, consent or agree to any amendment, modification, waiver or other change to, any of the terms of the Senior Notes or the Senior Notes Indenture or the terms of any Permitted Refinancing Debt and the agreements governing any Permitted Refinancing Debt or the terms of the Convertible Notes or the Convertible Notes Indenture if (A)Β the effect thereof would be to shorten its maturity or average life or increase the amount of any payment of principal thereof or increase the rate or shorten any period for payment of interest thereon or (B)Β such action requires the payment of a consent fee (howsoever described), provided that the foregoing shall not prohibit the execution of supplemental indentures associated with the incurrence of additional Senior Notes or Permitted Refinancing Debt to the extent permitted byΒ SectionΒ 9.02(j) or the execution of supplemental indentures to add guarantors if required by the terms of any Senior Notes Indenture, any Convertible Notes Indenture or any agreement governing any Permitted Refinancing Debt provided such Person complies withΒ SectionΒ 8.14(b) or (C)Β with respect to Senior Notes,
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Convertible Notes or Permitted Refinancing Debt that are subordinated to the Indebtedness or any other Debt, designate any Debt (other than obligations of the Borrower and the Subsidiaries pursuant to the Loan Documents) as βSpecified Senior Indebtednessβ or βSpecified Guarantor Senior Indebtednessβ or give any such other Debt any other similar designation for the purposes of any Senior Notes Indenture, Convertible Notes Indenture or any agreement governing any Permitted Refinancing Debt that are subordinated to the Indebtedness or any other Debt.
SectionΒ 9.05 Investments, Loans and Advances. The Parent, OP LLC and the Borrower will not, and will not permit any of their respective Subsidiaries to, make or permit to remain outstanding any Investments in or to any Person, except that the foregoing restriction shall not apply to:
(a) Investments made prior to the Effective Date reflected in the Financial Statements or which are disclosed to the Lenders in ScheduleΒ 9.05.
(b) accounts receivable arising in the ordinary course of business.
(c) direct obligations of the United States or any agency thereof, or obligations guaranteed by the United States or any agency thereof, in each case maturing within one year from the date of creation thereof.
(d) commercial paper maturing within one year from the date of creation thereof rated in the highest grade by S&P or Xxxxxβx.
(e) deposits maturing within one year from the date of creation thereof with, including certificates of deposit issued by, any Lender or any office located in the United States of any other bank or trust company which is organized under the laws of the United States or any state thereof, has capital, surplus and undivided profits aggregating at least $100,000,000 (as of the date of such bank or trust companyβs most recent financial reports) and has a short term deposit rating of no lower than A2 or P2, as such rating is set forth from time to time, by S&P or Xxxxxβx, respectively or, in the case of any Foreign Subsidiary, a bank organized in a jurisdiction in which the Foreign Subsidiary conducts operations having assets in excess of $500,000,000 (or its equivalent in another currency).
(f) deposits in money market funds investing exclusively in Investments described inΒ SectionΒ 9.05(c),Β SectionΒ 9.05(d) orΒ SectionΒ 9.05(e).
(g) Investments (i)Β made by any Credit Party in or to any other Credit Party, (ii)Β made by the Borrower or any Subsidiary in or to OP International, provided that the aggregate of all Investments made by the Borrower and the Guarantors in or to OP International shall not exceed $10,000,000 at any time, and (iii)Β made by the Borrower or any Domestic Subsidiary in or to any Foreign Subsidiary in an aggregate amount at any one time outstanding not to exceed $50,000,000; provided that, with respect to this clauseΒ (iii), no such Investment shall be made unless (A)Β both prior to and after giving effect to such Investment no Default or Event of Default exists and (B)Β after giving effect to such Investment the Borrowing Base then in effect exceeds the total Revolving Credit Exposures by at least an amount equal to ten percent (10%) of the then current Borrowing Base less cash then maintained by the Borrower.
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(h) subject to the limits inΒ SectionΒ 9.06, Investments (including, without limitation, capital contributions) in general or limited partnerships or other types of entities (each a βventureβ) entered into by the Borrower or a Subsidiary with others in the ordinary course of business; provided that (i)Β any such venture is engaged exclusively in oil and gas exploration, development, production, processing and related activities, including transportation, (ii)Β the interest in such venture is acquired in the ordinary course of business and on fair and reasonable terms and (iii)Β such venture interests acquired and capital contributions made (valued as of the date such interest was acquired or the contribution made) do not exceed, in the aggregate at any time outstanding an amount equal to $10,000,000.
(i) subject to the limits inΒ SectionΒ 9.06, Investments in direct ownership interests in additional Oil and Gas Properties and gas gathering systems related thereto or related to farm-out, farm-in, participation agreements, joint operating, joint venture or area of mutual interest agreements, gathering systems, pipelines or other similar arrangements which are usual and customary in the oil and gas exploration and production business located within the geographic boundaries of the United States of America.
(j) loans or advances to employees, officers or directors in the ordinary course of business of the Borrower or any Subsidiary, in each case only as permitted by applicable law, including SectionΒ 402 of the Sarbanes Oxley Act of 2002, but in any event not to exceed $500,000 in the aggregate at any time.
(k) Investments in stock, obligations or securities received in settlement of debts arising from Investments permitted under thisΒ SectionΒ 9.05 owing to the Borrower or any Subsidiary as a result of a bankruptcy or other insolvency proceeding of the obligor in respect of such debts or upon the enforcement of any Lien in favor of the Borrower or any of its Subsidiaries; provided that the Borrower shall give the Administrative Agent prompt written notice in the event that the aggregate amount of all Investments held at any one time under thisΒ SectionΒ 9.05(k) exceeds $1,000,000.
(l) other Investments not to exceed $10,000,000 in the aggregate at any time.
(m) guarantees of Debt permitted byΒ SectionΒ 9.02(a) orΒ (j).
(n) Investments made by the Credit Parties in any DevCo (other than any Investment in the form of the purchase of Equity Interests in such DevCo from OMP or one of its subsidiaries); provided that for any Investment in any DevCo made after the Ninth Amendment Effective Date (i)Β no Default, Event of Default or Borrowing Base Deficiency exists or results therefrom, (ii)Β such Investments shall be made solely for the purposes of funding Capital Expenditures of such DevCo which expenditures the Borrower reasonably expects to be made within ninety (90)Β days following the date of such Investment, and (iii)Β the amount of any such Investment shall not exceed, at the time made, the product of (A)Β the DevCo Ownership Percentage with respect to such DevCo as of the date of such Investment multiplied by (B)Β the total amount of such Capital Expenditures described in the foregoing clauseΒ (ii).
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(o) Investments made by the Credit Parties in OMP and its subsidiaries in an aggregate amount not to exceed $50,000,000 at any time; provided that (i)Β the Borrower shall be in pro forma compliance with the covenants contained in SectionΒ 9.01 after giving effect to any such Investment and (ii)Β after giving pro forma effect to such Investment, no Default or Event of Default shall have occurred and be continuing and the current total Revolving Credit Exposures shall not exceed 85% of the total Commitments (i.e., the least of (x)Β the Aggregate Maximum Credit Amounts, (y)Β the then effective Borrowing Base and (z)Β the Aggregate Elected Commitment Amounts) at such time.
(p) Investments in OMP, its subsidiaries or any DevCo made by the Credit Parties pursuant to any Drop Down Disposition permitted by SectionΒ 9.12(f).
(q) to the extent constituting an Investment, Swap Agreements permitted under SectionΒ 9.18 and guarantees thereof.
SectionΒ 9.06 Nature of Business; International Operations. The Parent, OP LLC and the Borrower will not, and will not permit any of their respective Subsidiaries to, allow any material change to be made in the character of its business as an independent oil and gas exploration and production company. From and after the date hereof, the Borrower and the Domestic Subsidiaries will not acquire or make any other expenditure (whether such expenditure is capital, operating or otherwise) in or related to, any Oil and Gas Properties not located within the geographical boundaries of the United States.
SectionΒ 9.07 Proceeds of Notes. The Borrower will not permit the proceeds of the Notes to be used for any purpose other than those permitted byΒ SectionΒ 7.21. Neither the Borrower nor any Person acting on behalf of the Borrower has taken or will take any action which might cause any of the Loan Documents to violate Regulations T, U or X or any other regulation of the Board or to violate SectionΒ 7 of the Securities Exchange Act of 1934 or any rule or regulation thereunder, in each case as now in effect or as the same may hereinafter be in effect. If requested by the Administrative Agent, the Borrower will furnish to the Administrative Agent and each Lender a statement to the foregoing effect in conformity with the requirements of FR Form U-1 or such other form referred to in Regulation U, Regulation T or Regulation X of the Board, as the case may be.
SectionΒ 9.08 Limitation on Leases. The Parent, OP LLC and the Borrower will not, and will not permit any of their respective Subsidiaries to, create, incur, assume or suffer to exist any obligation for the payment of rent or hire of Property of any kind whatsoever (real or personal but excluding Capital Leases, leases of corporate and field office space utilized by the Borrower and its Subsidiaries in the ordinary course of business and leases of Hydrocarbon Interests), under leases or lease agreements which would cause the aggregate amount of all payments made by the Borrower and the Subsidiaries pursuant to all such leases or lease agreements, including, without limitation, any residual payments at the end of any lease, to exceed $4,000,000 in any period of twelve consecutive calendar months during the life of such leases.
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SectionΒ 9.09 ERISA Compliance. The Parent, OP LLC and the Borrower will not, and will not permit any of their respective Subsidiaries to, at any time:
(a) engage in, or permit any ERISA Affiliate to engage in, any transaction in connection with which the Borrower, a Subsidiary or any ERISA Affiliate could be subjected to either a material civil penalty assessed pursuant to subsectionsΒ (c), (i), (l) or (m)Β of sectionΒ 502 of ERISA or a material tax imposed by ChapterΒ 43 of Subtitle D of the Code.
(b) fail to make, or permit any ERISA Affiliate to fail to make, full payment when due of all material amounts which, under the provisions of any Plan, agreement relating thereto or applicable law, the Borrower, a Subsidiary or any ERISA Affiliate is required to pay as contributions thereto.
(c) permit to exist, or allow any ERISA Affiliate to permit to exist, any accumulated funding deficiency within the meaning of sectionΒ 302 of ERISA or sectionΒ 412 of the Code, whether or not waived, with respect to any Plan.
(d) contribute to or assume an obligation to contribute to, or permit any ERISA Affiliate to contribute to or assume an obligation to contribute to, (i)Β any employee welfare benefit plan, as defined in section 3(1)Β of ERISA, including, without limitation, any such plan maintained to provide benefits to former employees of such entities, that may not be terminated by such entities in their sole discretion at any time without any material liability or (ii)Β any employee pension benefit plan, as defined in section 3(2)Β of ERISA, that is subject to TitleΒ IV of ERISA, section 302 of ERISA or section 412 of the Code.
SectionΒ 9.10 Sale or Discount of Receivables. Except for receivables obtained by the Borrower or any Subsidiary out of the ordinary course of business or the settlement of joint interest billing accounts in the ordinary course of business or discounts granted to settle collection of accounts receivable or the sale of defaulted accounts arising in the ordinary course of business in connection with the compromise or collection thereof and not in connection with any financing transaction, the Parent, OP LLC and the Borrower will not, and will not permit any of their respective Subsidiaries to, discount or sell (with or without recourse) any of its notes receivable or accounts receivable.
SectionΒ 9.11 Mergers, Etc. The Parent, OP LLC and the Borrower will not, and will not permit any of their respective Subsidiaries to, merge into or with or consolidate with any other Person, or sell, lease or otherwise dispose of (whether in one transaction or in a series of transactions) all or substantially all of its Property to any other Person, except that (a)Β any Wholly-Owned Domestic Subsidiary may merge with any other Wholly-Owned Domestic Subsidiary, (b)Β the Parent, OP LLC and/or Borrower may merge with any Wholly-Owned Domestic Subsidiary so long as the Parent, OP LLC and/or Borrower is the survivor, (c)Β any Foreign Subsidiary may merge with any other Foreign Subsidiary; provided that if one of such Foreign Subsidiaries is a Wholly-Owned Subsidiary, the survivor shall be a Wholly-Owned Subsidiary, and (d)Β OP International may merge with and into any Credit Party so long as such Credit Party is the survivor.
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SectionΒ 9.12 Sale of Properties and Liquidation of Swap Agreements. The Parent, OP LLC and the Borrower will not, and will not permit any of their respective Subsidiaries to, sell, assign, farm-out, convey or otherwise transfer any Property or to Liquidate any Swap Agreement in respect of commodities except for (a)Β the sale of Hydrocarbons in the ordinary course of business; (b)Β farmouts in the ordinary course of business of undeveloped acreage or undrilled depths and assignments in connection with such farmouts; (c)Β the sale or transfer of equipment that is no longer necessary for the business of the Borrower or such Subsidiary or is replaced by equipment of at least comparable value and use; (d)Β the sale or other disposition (including Casualty Events) of any Oil and Gas Property or any interest therein or any Subsidiary owning Oil and Gas Properties and the Liquidation of any Swap Agreement in respect of commodities; provided that (i)Β 100% of the consideration or settlement proceeds received in respect of such sale or other disposition or the Liquidation of any Swap Agreement in respect of commodities shall be cash, (ii)Β the consideration or settlement proceeds received in respect of such sale or other disposition or the Liquidation of any Swap Agreement in respect of commodities shall be equal to or greater than the fair market value of the Oil and Gas Property, interest therein or Subsidiary subject of such sale or other disposition, or Swap Agreement subject of such Liquidation (as reasonably determined by a Responsible Officer of the Borrower or by the appropriate governing body of the Parent and/or the Borrower, as applicable, and, if requested by the Administrative Agent, the Borrower shall deliver a certificate of a Responsible Officer of the Borrower certifying to that effect), (iii)Β if such sale or other disposition of Oil and Gas Property or Subsidiary owning Oil and Gas Properties included in the most recently delivered Reserve Report and Swap Agreements Liquidated pursuant to this clauseΒ (d), when aggregated with any sale or other disposition pursuant to clauses (f)Β and (g), during any period between two successive Scheduled Redetermination Dates has a fair market value or settlement value, as applicable, in excess of five percent (5%) of the then effective Borrowing Base, individually or in the aggregate, the Borrowing Base shall be reduced, effective immediately upon such sale, disposition or Liquidation, by an amount equal to the Borrowing Base Value of such Properties sold or disposed of and Swap Agreements in respect of Commodities Liquidated; provided further that if a Borrowing Base Deficiency would result from such reduction in the Borrowing Base, the Borrower shall prepay the Borrowings, prior to or contemporaneously with the consummation of such sale, disposition and/or Liquidation, to the extent that such prepayment would have required pursuant toΒ SectionΒ 3.04(c)(iii) after giving effect to such reduction in the Borrowing Base and (iv)Β if any such sale or other disposition is of a Subsidiary owning Oil and Gas Properties, such sale or other disposition shall include all the Equity Interests of such Subsidiary; (e)Β the Midstream MLP Contribution, provided that (i)Β the Credit Parties shall receive cash consideration in respect of the Midstream MLP Contribution of at least $113,000,000, (ii)Β after giving effect to the Midstream MLP Contribution, the Parent shall have directly or indirectly (x)Β sole ownership of the Equity Interests in the General Partner other than the ClassΒ B Units, (y)Β ownership of at least 50% of the limited partnership units of the Midstream MLP, (z)Β ownership of at least 60% of the Equity Interests in Beartooth and 90% of the Equity Interests in Bobcat and (iii)Β each DevCo shall have executed a DevCo Guaranty and a DevCo Mortgage encumbering its Midstream Properties, (f)Β Drop Down Dispositions after the Ninth Amendment Effective Date to the extent (i)Β at the time of such Drop Down Disposition, no Default, Event of Default or Borrowing Base Deficiency shall exist or would result from such Drop Down Disposition, (ii)Β after giving pro forma effect to such Drop Down Disposition, the Borrower shall be in compliance with the financial covenants contained in SectionΒ 9.01, (iii)
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after giving effect to the Drop Down Disposition, the amount of the undrawn Commitments shall represent at least 10% of the aggregate Commitments at such time, (iv)Β the consideration for such Drop Down Disposition shall be fair to the Credit Parties (as reasonably determined by the board of directors (or comparable governing body) of the Parent and, if requested by the Administrative Agent, the Borrower shall deliver a certificate of a Responsible Officer of the Borrower certifying to that effect), (v)Β the consideration received by the Credit Parties shall consist of cash, cash equivalents and/or Equity Interests in the Midstream MLP, (vi)Β if the consideration received in respect of any such Drop Down Disposition pursuant to this clauseΒ (f) during any period between two successive Scheduled Redetermination Dates, when aggregated with any sales or other dispositions during such period pursuant to clauses (d)Β and (g) of this section or this clause (f), is in excess of five percent (5%) of the then effective Borrowing Base, individually or in the aggregate, the Administrative Agent or the Required Lenders may elect in their sole discretion reduce the Borrowing Base in connection with such sale or disposition; provided further that if a Borrowing Base Deficiency would result from such any reduction in the Borrowing Base pursuant to this SectionΒ 9.12(f), the Borrower shall prepay the Borrowings, prior to or contemporaneously with the consummation of such sale, disposition and/or Liquidation, to the extent that such prepayment would have required pursuant toΒ SectionΒ 3.04(c)(iii) after giving effect to such reduction in the Borrowing Base, (g)Β sales or other dispositions of the common limited partnership interests in the Midstream MLP to the extent at the time of such sale or disposition (i)Β no Default, Event of Default or Borrowing Base Deficiency shall exist or would result from such sale or disposition, (ii)Β after giving pro forma effect to such sale or disposition, the Borrower shall be in compliance with the financial covenants contained in SectionΒ 9.01, (iii)Β the consideration received by the Credit Parties shall only consist of cash, and (iv)Β if the consideration received in respect of any such sales or other dispositions of the common limited partnership interests in the Midstream MLP pursuant to this clauseΒ (g) during any period between two successive Scheduled Redetermination Dates, when aggregated with any sales or other dispositions during such period pursuant to clauses (d)Β and (f) of this section or this clause (g), is in excess of five percent (5%) of the then effective Borrowing Base, individually or in the aggregate, the Administrative Agent or the Required Lenders may elect in their sole discretion reduce the Borrowing Base in connection with such sale or disposition; provided further that if a Borrowing Base Deficiency would result from such any reduction in the Borrowing Base pursuant to this SectionΒ 9.12(g), the Borrower shall prepay the Borrowings, prior to or contemporaneously with the consummation of such sale, disposition and/or Liquidation, to the extent that such prepayment would have required pursuant toΒ SectionΒ 3.04(c)(iii) after giving effect to such reduction in the Borrowing Base and (h)Β sales and other dispositions of Properties not regulated byΒ SectionΒ 9.12(a) toΒ (g) having a fair market value not to exceed $2,500,000 during any 12-month period.
SectionΒ 9.13 Environmental Matters. The Parent, OP LLC and the Borrower will not, and will not permit any of their respective Subsidiaries or DevCos to, cause or permit any of its Property to be in violation of, or do anything or permit anything to be done which will subject any such Property to any Remedial Work under any Environmental Laws, assuming disclosure to the applicable Governmental Authority of all relevant facts, conditions and circumstances, if any, pertaining to such Property where such violations or remedial obligations could reasonably be expected to have a Material Adverse Effect.
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SectionΒ 9.14 Transactions with Affiliates. The Parent, OP LLC and the Borrower will not, and will not permit any of their respective Subsidiaries to, enter into any transaction, including, without limitation, any purchase, sale, lease or exchange of Property or the rendering of any service, with any Affiliate (other than the Guarantors and Wholly-Owned Subsidiaries of the Borrower) unless such transactions are otherwise permitted under this Agreement and are upon fair and reasonable terms no less favorable to it than it would obtain in a comparable armβs length transaction with a Person not an Affiliate.
SectionΒ 9.15 Subsidiaries. The Parent, OP LLC and the Borrower will not, and will not permit any of their respective Subsidiaries to, create or acquire any additional Subsidiary unless the Borrower gives written notice to the Administrative Agent of such creation or acquisition and complies withΒ SectionΒ 8.14(b),Β SectionΒ 8.14(c) andΒ SectionΒ 8.14(d). The Borrower shall not, and shall not permit any of its Subsidiaries to, sell, assign or otherwise dispose of any Equity Interests in any Subsidiary except in compliance withΒ SectionΒ 9.12(d). The Credit Parties shall not sell, assign or otherwise dispose of any Equity Interests in any DevCo except in compliance withΒ SectionΒ 9.12(e) and SectionΒ 9.12(f). The Parent and OP LLC shall not, and shall not permit any of their respective Subsidiaries to, sell, assign or otherwise dispose of any Equity Interests in the General Partner other than issuances of ClassΒ B Units in the General Partner pursuant to the terms of the General Partner LLC Agreement. The Parent, OP LLC shall not, and shall not permit any of its Domestic Subsidiaries to, sell, assign or otherwise dispose of any Equity Interests in any Domestic Subsidiary except in compliance withΒ SectionΒ 9.12(d). The Parent, OP LLC and the Borrower will not permit any Equity Interests of any DevCo or the General Partner (other than the ClassΒ B Units) to be directly owned by any Person other than the Parent or a Subsidiary that is a Guarantor, and in the case of of the DevCos, the Midstream MLP and its subsidiaries.
SectionΒ 9.16 Negative Pledge Agreements; Dividend Restrictions. The Parent, OP LLC and the Borrower will not, and will not permit any of their respective Subsidiaries or the DevCos to, create, incur, assume or suffer to exist any contract, agreement or understanding (other than (a)Β this Agreement, the Security Instruments or Capital Leases creating Liens permitted byΒ SectionΒ 9.03(c) andΒ (d), (b)Β any leases or licenses or similar contracts as they affect any Property or Lien subject to a lease or license, (c)Β any restriction with respect to a Subsidiary imposed pursuant to an agreement entered into for the direct or indirect sale or disposition of all or substantially all the equity or Property of such Subsidiary (or the Property that is subject to such restriction) pending the closing of such sale or disposition, (d)Β customary provisions with respect to the distribution of Property in joint venture agreements or (e)Β in the case of the DevCos, agreements governing the OMP Credit Facility) which in any way prohibits or restricts the granting, conveying, creation or imposition of any Lien on any of its Property in favor of the Administrative Agent and the Lenders or restricts any Subsidiary from paying dividends or making distributions to the Borrower or any Guarantor, or which requires the consent of or notice to other Persons in connection therewith.
SectionΒ 9.17 Gas Imbalances, Take-or-Pay or Other Prepayments. The Parent, OP LLC and the Borrower will not, and will not permit any of their respective Subsidiaries to, allow gas imbalances, take-or-pay or other prepayments with respect to the Oil and Gas Properties of the Borrower or any Subsidiary that would require the Borrower or such Subsidiary to deliver Hydrocarbons at some future time without then or thereafter receiving full payment therefor to exceed 75,000 Mcf of gas (on an Mcf equivalent basis) in the aggregate.
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SectionΒ 9.18 Swap Agreements.
(a) The Parent, OP LLC and the Borrower will not, and will not permit any of their respective Subsidiaries to, enter into any Swap Agreements with any Person other than (i)Β Swap Agreements in respect of commodities (A)Β with an Approved Counterparty and (B)Β the notional volumes for which (when aggregated with other commodity Swap Agreements then in effect other than basis differential swaps on volumes already hedged pursuant to other Swap Agreements) do not exceed, as of the date such Swap Agreement is executed, (1)Β for the period from 1 to 12 months after the date of execution of such Swap Agreement, 110% of the Current Production for each month during the period during which such Swap Agreement is in effect for each of crude oil and natural gas, calculated separately (but in no event to exceed 100% of the forecasted production, as reasonably determined by the Borrower, of each of crude oil and natural gas, calculated separately, of the Borrower and its Subsidiaries for each such month), (2)Β for the period from 13 to 24 months after the date of execution of such Swap Agreement, 100% of the Current Production for each month during the period during which such Swap Agreement is in effect for each of crude oil and natural gas, calculated separately, (3)Β for the period from 25 to 36 months after such date of execution, 75% of the Current Production for each month during the period during which such Swap Agreement is in effect for each of crude oil and natural gas, calculated separately, and (4)Β for the period from 37 to 60 months after such date of execution, 50% of the Current Production for each month during the period during which such Swap Agreement is in effect for each of crude oil and natural gas, calculated separately; provided, that the Borrower may purchase puts and floors the notional volumes for which exceed the foregoing percentage limitations (but which do not cause all notional volumes hedged to exceed 100% of the Current Production for any period beyond the last day of the second calendar year following the calendar year in which such puts and/or floors are purchased), (ii)Β Swap Agreements in respect of interest rates with an Approved Counterparty, as follows: (A)Β Swap Agreements effectively converting interest rates from fixed to floating, the notional amounts of which (when aggregated with all other Swap Agreements of the Borrower and its Subsidiaries then in effect effectively converting interest rates from fixed to floating) do not exceed 50% of the then outstanding principal amount of the Borrowerβs Debt for borrowed money which bears interest at a fixed rate and (B)Β Swap Agreements effectively converting interest rates from floating to fixed, the notional amounts of which (when aggregated with all other Swap Agreements of the Borrower and its Subsidiaries then in effect effectively converting interest rates from floating to fixed) do not exceed 75% of the then outstanding principal amount of the Borrowerβs Debt for borrowed money which bears interest at a floating rate, (iii)Β any Permitted Bond Hedge Transaction(s), and (iv)Β any Permitted Warrant Transaction. In no event shall any Swap Agreement contain any requirement for the Borrower or any Subsidiary to post, during the term of this Agreement, collateral or margin to secure their obligations under such Swap Agreement or to cover market exposures and in no event shall (1)Β any Swap Agreements in respect of interest rates have a term beyond 48 months from the date of execution thereof or (2)Β any Swap Agreements in respect of commodities have a term beyond 60 months from the date of execution thereof.
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(b) Except as permitted byΒ SectionΒ 9.12(d), the Parent, OP LLC and the Borrower will not, and will not permit any of their respective Subsidiaries to Liquidate, or create any off-setting positions in respect of any hedge position in respect of commodities (whether evidenced by a floor, put or Swap Agreement), without the prior written consent of the Majority Lenders.
SectionΒ 9.19 Covenants of Parent, OP LLC and General Partner. The Parent and OP LLC covenant and agree with the Administrative Agent and the Lenders that neither the Parent nor OP LLC shall own or lease any Oil and Gas Properties that are included in the Borrowing Base nor be the operator under any operating agreement governing operations thereon. The Parent and OP LLC covenant and agree with the Administrative Agent and the Lenders that neither the Parent nor OP LLC shall directly own any Equity Interest in any DevCo. The Parent and OP LLC covenant and agree that the General Partner shall not (a)Β engage any operating or business activities other than ownership of the general partner interests of the Midstream MLP and other related and incidental activities related to the ownership of such general partnership interests and (b)Β own any Property or assets other than such general partnership interests and such rights or other interests incidental to such ownership.
SectionΒ 9.20 Non-Qualified ECP Guarantors. The Parent, OP LLC and the Borrower shall not permit any Credit Party that is not a Qualified ECP Guarantor to own, at any time, any Oil and Gas Properties or any Equity Interests in any Subsidiaries or any DevCo.
SectionΒ 9.21 Changes to Organizational Documents of General Partner. The Parent, OP LLC and the Borrower shall not permit the General Partner to amend, supplement or otherwise modify its certificate of formation, limited liability company agreement or any other organic document of the General Partner in any manner that would be adverse to the Lenders in any material respect; provided that any amendment, supplement or other modification to the General Partner LLC Agreement that (a)Β materially alters the definition of βAvailable Cashβ contained therein in a way that results in an increase in such βAvailable Cashβ or (b)Β grants any additional rights or power to the ClassΒ B Units shall, in each case, be deemed to be adverse to Lenders in a material respect.
ARTICLEΒ X
Events of Default; Remedies
SectionΒ 10.01 Events of Default. One or more of the following events shall constitute an βEvent of Defaultβ:
(a) the Borrower shall fail to pay any principal of any Loan or any reimbursement obligation in respect of any LC Disbursement when and as the same shall become due and payable, whether at the due date thereof or at a date fixed for prepayment thereof, by acceleration or otherwise.
(b) the Borrower shall fail to pay any interest on any Loan or any fee or any other amount (other than an amount referred to inΒ SectionΒ 10.01(a)) payable under any Loan Document, when and as the same shall become due and payable, and such failure shall continue unremedied for a period of three (3)Β Business Days.
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(c) any representation or warranty made or deemed made by or on behalf of the Parent, OP LLC, the Borrower, any Subsidiary or any DevCo in or in connection with any Loan Document or any amendment or modification of any Loan Document or waiver under such Loan Document, or in any report, certificate, financial statement or other document furnished pursuant to or in connection with any Loan Document or any amendment or modification thereof or waiver thereunder, shall prove to have been incorrect in any material respect when made or deemed made (or, if already qualified by materiality, Material Adverse Effect or a similar qualification, true and correct in all respects).
(d) the Parent, OP LLC, the Borrower, any Subsidiary or any DevCo shall fail to observe or perform any covenant, condition or agreement contained inΒ SectionΒ 8.01(i),Β SectionΒ 8.01(m),Β SectionΒ 8.02,Β SectionΒ 8.03,Β SectionΒ 8.14, SectionΒ 8.19, SectionΒ 8.20 or SectionΒ 8.21 or in ArticleΒ IX.
(e) the Parent, OP LLC, the Borrower, any Subsidiary or any DevCo shall fail to observe or perform any covenant, condition or agreement contained in this Agreement (other than those specified inΒ SectionΒ 10.01(a),Β SectionΒ 10.01(b) orΒ SectionΒ 10.01(d)) or any other Loan Document, and such failure shall continue unremedied for a period of 30 days after the earlier to occur of (i)Β notice thereof from the Administrative Agent to the Borrower (which notice will be given at the request of any Lender) or (ii)Β a Responsible Officer of the Borrower or such Subsidiary otherwise becoming aware of such default.
(f) the Borrower, any Guarantor or any DevCo shall fail to make any payment (whether of principal or interest and regardless of amount) in respect of any Material Indebtedness, when and as the same shall become due and payable and such failure continues beyond any applicable grace period.
(g) any event or condition (other than customary change of control or asset sale tender offer provisions of the Senior Notes Indenture, the Convertible Notes Indenture or any agreement governing any Permitted Refinancing Debt which would require a mandatory prepayment or redemption of the Debt arising thereunder) occurs that results in any Material Indebtedness becoming due prior to its scheduled maturity or that enables or permits (with or without the giving of notice, the lapse of time or both) the holder or holders of any Material Indebtedness or any trustee or agent on its or their behalf to cause any Material Indebtedness to become due, or to require the Redemption thereof or any offer to Redeem to be made in respect thereof, prior to its scheduled maturity or require the Parent, OP LLC, the Borrower, any Subsidiary or any DevCo to make an offer in respect thereof and such event or condition continues beyond any applicable grace period.
(h) an involuntary proceeding shall be commenced or an involuntary petition shall be filed seeking (i)Β liquidation, reorganization or other relief in respect of the Parent, OP LLC, the Borrower, any Subsidiary or any DevCo or its debts, or of a substantial part of its assets, under any Federal, state or foreign bankruptcy, insolvency, receivership or similar law now or hereafter in effect or (ii)Β the appointment of a receiver, trustee, custodian, sequestrator, conservator or similar official for the Parent, OP LLC, the Borrower, any Subsidiary or any DevCo or for a substantial part of its assets, and, in any such case, such proceeding or petition shall continue undismissed for thirty (30)Β days or an order or decree approving or ordering any of the foregoing shall be entered.
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(i) the Parent, OP LLC, the Borrower, any Subsidiary or any DevCo shall (i)Β voluntarily commence any proceeding or file any petition seeking liquidation, reorganization or other relief under any Federal, state or foreign bankruptcy, insolvency, receivership or similar law now or hereafter in effect, (ii)Β consent to the institution of, or fail to contest in a timely and appropriate manner, any proceeding or petition described inΒ SectionΒ 10.01(h), (iii)Β apply for or consent to the appointment of a receiver, trustee, custodian, sequestrator, conservator or similar official for the Parent, OP LLC, Borrower, any Subsidiary or any DevCo or for a substantial part of its assets, (iv)Β file an answer admitting the material allegations of a petition filed against it in any such proceeding, (v)Β make a general assignment for the benefit of creditors or (vi)Β take any action for the purpose of effecting any of the foregoing; or any member/s of the Parent (that owns greater than 10% of its membership interests), OP LLC or the Borrower shall make any request or take any action for the purpose of calling a meeting of the members of the Parent, OP LLC or the Borrower to consider a resolution to dissolve and wind up the Parentβs, OP LLCβs or the Borrowerβs affairs.
(j) the Parent, OP LLC, the Borrower, any Subsidiary or any DevCo shall become unable, admit in writing its inability or fail generally to pay its debts as they become due.
(k) (i)Β one or more judgments for the payment of money in an aggregate amount in excess of $2,000,000 (to the extent not covered by independent third party insurance provided by insurers of the highest claims paying rating or financial strength as to which the insurer does not dispute coverage and is not subject to an insolvency proceeding) or (ii)Β any one or more non-monetary judgments that have, or could reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect, shall be rendered against the Parent, OP LLC, the Borrower, any Subsidiary, and DevCo or any combination thereof and the same shall remain undischarged for a period of 30 consecutive days during which execution shall not be effectively stayed, or any action shall be legally taken by a judgment creditor to attach or levy upon any assets of the Parent, OP LLC, the Borrower, any Subsidiary or any DevCo to enforce any such judgment.
(l) the Loan Documents after delivery thereof shall for any reason, except to the extent permitted by the terms thereof or as otherwise acceptable to the Administrative Agent in its sole discretion, cease to be in full force and effect and valid, binding and enforceable in accordance with their terms against the Borrower or a Guarantor or a DevCo party thereto, or in the case of the Intercreditor Agreement, against any other party thereto, or shall be repudiated by any of them, or cease to create a valid and perfected Lien of the priority required thereby on any of the Collateral purported to be covered thereby, except to the extent permitted by the terms of this Agreement, or the Parent, OP LLC, the Borrower, any Subsidiary or any DevCo or any of their Affiliates shall so state in writing.
(m) a Change in Control shall occur.
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SectionΒ 10.02 Remedies.
(a) In the case of an Event of Default other than one described inΒ SectionΒ 10.01(h),Β SectionΒ 10.01(i) orΒ SectionΒ 10.01(j), at any time thereafter during the continuance of such Event of Default, the Administrative Agent may, and at the request of the Majority Lenders, shall, by notice to the Borrower, take either or both of the following actions, at the same or different times: (i)Β terminate the Commitments, and thereupon the Commitments shall terminate immediately, and (ii)Β declare the Notes and the Loans then outstanding to be due and payable in whole (or in part, in which case any principal not so declared to be due and payable may thereafter be declared to be due and payable), and thereupon the principal of the Loans so declared to be due and payable, together with accrued interest thereon and all fees and other obligations of the Borrower and the Guarantors accrued hereunder and under the Notes and the other Loan Documents (including, without limitation, the payment of cash collateral to secure the LC Exposure as provided inΒ SectionΒ 2.08(j)), shall become due and payable immediately, without presentment, demand, protest, notice of intent to accelerate, notice of acceleration or other notice of any kind, all of which are hereby waived by the Borrower and each Guarantor; and in case of an Event of Default described inΒ SectionΒ 10.01(h),Β SectionΒ 10.01(i) orΒ SectionΒ 10.01(j), the Commitments shall automatically terminate and the Notes and the principal of the Loans then outstanding, together with accrued interest thereon and all fees and the other obligations of the Borrower and the Guarantors accrued hereunder and under the Notes and the other Loan Documents (including, without limitation, the payment of cash collateral to secure the LC Exposure as provided inΒ SectionΒ 2.08(j)), shall automatically become due and payable, without presentment, demand, protest or other notice of any kind, all of which are hereby waived by the Borrower and each Guarantor.
(b) In the case of the occurrence of an Event of Default, the Administrative Agent and the Lenders will have all other rights and remedies available at law and equity, subject solely in the case of the DevCo Collateral, to the terms and conditions of the Intercreditor Agreement.
(c) All proceeds realized from the liquidation or other disposition of Collateral or otherwise received after maturity of the Notes, whether by acceleration or otherwise, shall be applied:
(i) first, to payment or reimbursement of that portion of the Indebtedness constituting fees, expenses and indemnities payable to the Administrative Agent in its capacity as such;
(ii) second, pro rata to payment or reimbursement of that portion of the Indebtedness constituting fees, expenses and indemnities payable to the Lenders;
(iii) third, pro rata to payment of accrued interest on the Loans;
(iv) fourth, pro rata to payment of (A)Β principal outstanding on the Loans, (B)Β LC Disbursements that have not yet been reimbursed by or on behalf of the Borrower at such time and (C)Β Secured Swap Indebtedness owing to Secured Swap Parties;
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(v) fifth, pro rata to any other Indebtedness owing to the Secured Parties and to cash collateral to be held by the Administrative Agent to secure the remaining LC Exposure; and
(vi) sixth, any excess, after all of the Indebtedness shall have been indefeasibly paid in full in cash, shall be paid to the Borrower or as otherwise required by any Governmental Requirement.
provided that, solely in the case of the DevCo Collateral, the proceeds from the realization of any DevCo Collateral (other than Restricted Payments made by a DevCo to the Borrower or a Subsidiary) shall be applied first in accordance with the terms of the Intercreditor Agreement and shall then be applied in accordance with the priorities set forth in this SectionΒ 10.02(c).
Notwithstanding the foregoing, amounts received from the Borrower or any Guarantor that is not an βeligible contract participantβ under the Commodity Exchange Act or any regulations promulgated thereunder shall not be applied to any Excluded Swap Obligations (it being understood, that in the event that any amount is applied to Indebtedness other than Excluded Swap Obligations as a result of this this clause, the Administrative Agent shall make such adjustments as it determines are appropriate to distributions pursuant to clause fourth above from amounts received from βeligible contract participantsβ under the Commodity Exchange Act or any regulations promulgated thereunder to ensure, as nearly as possible, that the proportional aggregate recoveries with respect to Indebtedness described in clause fourth above by the holders of any Excluded Swap Obligations are the same as the proportional aggregate recoveries with respect to other Indebtedness pursuant to clause fourth above).
ARTICLEΒ XI
The Agents
SectionΒ 11.01 Appointment; Powers. Each of the Lenders and the Issuing Bank hereby irrevocably appoints the Administrative Agent as its agent and authorizes the Administrative Agent to take such actions on its behalf and to exercise such powers as are delegated to the Administrative Agent by the terms hereof and the other Loan Documents, together with such actions and powers as are reasonably incidental thereto.
SectionΒ 11.02 Duties and Obligations of Administrative Agent. The Administrative Agent shall not have any duties or obligations except those expressly set forth in the Loan Documents. Without limiting the generality of the foregoing, (a)Β the Administrative Agent shall not be subject to any fiduciary or other implied duties, regardless of whether a Default has occurred and is continuing (the use of the term βagentβ herein and in the other Loan Documents with reference to the Administrative Agent is not intended to connote any fiduciary or other implied (or express) obligations arising under agency doctrine of any applicable law; rather, such term is used merely as a matter of market custom, and is intended to create or reflect only an administrative relationship between independent contracting parties), (b)Β the Administrative Agent shall have no duty to take any discretionary action or exercise any discretionary powers, except as provided inΒ SectionΒ 11.03, and (c)Β except as expressly set forth herein, the Administrative Agent shall not have any duty to disclose, and shall not be liable for the failure to disclose, any information relating to the Parent, OP LLC, the Borrower or any of its Subsidiaries
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or any DevCo that is communicated to or obtained by the bank serving as Administrative Agent or any of its Affiliates in any capacity. The Administrative Agent shall be deemed not to have knowledge of any Default unless and until written notice thereof is given to the Administrative Agent by the Parent, OP LLC, the Borrower or a Lender, and shall not be responsible for or have any duty to ascertain or inquire into (i)Β any statement, warranty or representation made in or in connection with this Agreement or any other Loan Document, (ii)Β the contents of any certificate, report or other document delivered hereunder or under any other Loan Document or in connection herewith or therewith, (iii)Β the performance or observance of any of the covenants, agreements or other terms or conditions set forth herein or in any other Loan Document, (iv)Β the validity, enforceability, effectiveness or genuineness of this Agreement, any other Loan Document or any other agreement, instrument or document, (v)Β the satisfaction of any condition set forth in ArticleΒ VI or elsewhere herein, other than to confirm receipt of items expressly required to be delivered to the Administrative Agent or as to those conditions precedent expressly required to be to the Administrative Agentβs satisfaction, (vi)Β the existence, value, perfection or priority of any collateral security or the financial or other condition of the Parent, OP LLC, the Borrower and its Subsidiaries or any DevCo or any other obligor or guarantor, or (vii)Β any failure by the Parent, OP LLC, the Borrower or any other Person (other than itself) to perform any of its obligations hereunder or under any other Loan Document or the performance or observance of any covenants, agreements or other terms or conditions set forth herein or therein. For purposes of determining compliance with the conditions specified in ArticleΒ VI, each Lender shall be deemed to have consented to, approved or accepted or to be satisfied with, each document or other matter required thereunder to be consented to or approved by or acceptable or satisfactory to a Lender unless the Administrative Agent shall have received written notice from such Lender prior to the proposed closing date specifying its objection thereto.
SectionΒ 11.03 Action by Administrative Agent. The Administrative Agent shall have no duty to take any discretionary action or exercise any discretionary powers, except discretionary rights and powers expressly contemplated hereby or by the other Loan Documents that the Administrative Agent is required to exercise in writing as directed by the Majority Lenders, Required Lenders or the Lenders, as applicable, (or such other number or percentage of the Lenders as shall be necessary under the circumstances as provided inΒ SectionΒ 12.02) and in all cases the Administrative Agent shall be fully justified in failing or refusing to act hereunder or under any other Loan Documents unless it shall (a)Β receive written instructions from the Majority Lenders, Required Lenders or the Lenders, as applicable, (or such other number or percentage of the Lenders as shall be necessary under the circumstances as provided inΒ SectionΒ 12.02) specifying the action to be taken and (b)Β be indemnified to its satisfaction by the Lenders against any and all liability and expenses which may be incurred by it by reason of taking or continuing to take any such action. The instructions as aforesaid and any action taken or failure to act pursuant thereto by the Administrative Agent shall be binding on all of the Lenders. If a Default has occurred and is continuing, then the Administrative Agent shall take such action with respect to such Default as shall be directed by the requisite Lenders in the written instructions (with indemnities) described in thisΒ SectionΒ 11.03, provided that, unless and until the Administrative Agent shall have received such directions, the Administrative Agent may (but shall not be obligated to) take such action, or refrain from taking such action, with respect to such Default as it shall deem advisable in the best interests of the Lenders. In no event, however, shall the Administrative Agent be required to take any action which exposes the Administrative Agent to
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personal liability or which is contrary to this Agreement, the Loan Documents or applicable law. No Agent shall be liable for any action taken or not taken by it with the consent or at the request of the Majority Lenders, Required Lenders or the Lenders, as applicable, (or such other number or percentage of the Lenders as shall be necessary under the circumstances as provided inΒ SectionΒ 12.02), and otherwise no Agent shall be liable for any action taken or not taken by it hereunder or under any other Loan Document or under any other document or instrument referred to or provided for herein or therein or in connection herewith or therewith INCLUDING ITS OWN ORDINARY NEGLIGENCE, except for its own gross negligence or willful misconduct.
SectionΒ 11.04 Reliance by Administrative Agent. The Administrative Agent shall be entitled to rely upon, and shall not incur any liability for relying upon, any notice, request, certificate, consent, statement, instrument, document or other writing believed by it to be genuine and to have been signed or sent by the proper Person. The Administrative Agent also may rely upon any statement made to it orally or by telephone and believed by it to be made by the proper Person, and shall not incur any liability for relying thereon and each of the Parent, OP LLC, the Borrower, the Lenders and the Issuing Bank hereby waives the right to dispute the Administrative Agentβs record of such statement, except in the case of gross negligence or willful misconduct by the Administrative Agent. The Administrative Agent may consult with legal counsel (who may be counsel for the Borrower), independent accountants and other experts selected by it, and shall not be liable for any action taken or not taken by it in accordance with the advice of any such counsel, accountants or experts. The Administrative Agent may deem and treat the payee of any Note as the holder thereof for all purposes hereof unless and until a written notice of the assignment or transfer thereof permitted hereunder shall have been filed with the Administrative Agent.
SectionΒ 11.05 Subagents. The Administrative Agent may perform any and all its duties and exercise its rights and powers by or through any one or more sub-agents appointed by the Administrative Agent. The Administrative Agent and any such sub-agent may perform any and all its duties and exercise its rights and powers through their respective Related Parties. The exculpatory provisions of the preceding Sections of this ArticleΒ XI shall apply to any such sub-agent and to the Related Parties of the Administrative Agent and any such sub-agent, and shall apply to their respective activities in connection with the syndication of the credit facilities provided for herein as well as activities as Administrative Agent.
SectionΒ 11.06 Resignation of Administrative Agent. Subject to the appointment and acceptance of a successor Administrative Agent as provided in thisΒ SectionΒ 11.06, the Administrative Agent may resign at any time by notifying the Lenders, the Issuing Bank and the Borrower, and the Administrative Agent may be removed at any time by the Required Lenders if the Administrative Agent, in its capacity as a Lender, is a Defaulting Lender at such time. Upon any such resignation or removal, the Required Lenders shall have the right, in consultation with the Borrower, to appoint a successor. If no successor shall have been so appointed by the Required Lenders and shall have accepted such appointment within 30 days after the retiring Administrative Agent gives notice of its resignation or removal of the retiring Administrative Agent, then the retiring Administrative Agent may, on behalf of the Lenders and the Issuing Bank, appoint a successor Administrative Agent. Upon the acceptance of its appointment as Administrative Agent hereunder by a successor, such successor shall succeed to and become
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vested with all the rights, powers, privileges and duties of the retiring Administrative Agent, and the retiring Administrative Agent shall be discharged from its duties and obligations hereunder. The fees payable by the Borrower to a successor Administrative Agent shall be the same as those payable to its predecessor unless otherwise agreed between the Borrower and such successor. After the Administrative Agentβs resignation hereunder, the provisions of this ArticleΒ XI andΒ SectionΒ 12.03 shall continue in effect for the benefit of such retiring Administrative Agent, its sub-agents and their respective Related Parties in respect of any actions taken or omitted to be taken by any of them while it was acting as Agent.
SectionΒ 11.07 Agents as Lenders. Each bank serving as an Agent hereunder shall have the same rights and powers in its capacity as a Lender as any other Lender and may exercise the same as though it were not an Agent, and such bank and its Affiliates may accept deposits from, lend money to and generally engage in any kind of business with the Parent, OP LLC, the Borrower or any Subsidiary or other Affiliate thereof as if it were not an Agent hereunder.
SectionΒ 11.08 No Reliance. Each Lender acknowledges that it has, independently and without reliance upon the Administrative Agent, any other Agent or any other Lender and based on such documents and information as it has deemed appropriate, made its own credit analysis and decision to enter into this Agreement and each other Loan Document to which it is a party. Each Lender also acknowledges that it will, independently and without reliance upon the Administrative Agent, any other Agent or any other Lender and based on such documents and information as it shall from time to time deem appropriate, continue to make its own decisions in taking or not taking action under or based upon this Agreement, any other Loan Document, any related agreement or any document furnished hereunder or thereunder. The Agents shall not be required to keep themselves informed as to the performance or observance by the Borrower or any of its Subsidiaries or any DevCo of this Agreement, the Loan Documents or any other document referred to or provided for herein or to inspect the Properties or books of the Borrower or its Subsidiaries or the DevCos. Except for notices, reports and other documents and information expressly required to be furnished to the Lenders by the Administrative Agent hereunder, no Agent or the Arranger shall have any duty or responsibility to provide any Lender with any credit or other information concerning the affairs, financial condition or business of the Borrower (or any of its Affiliates) which may come into the possession of such Agent or any of its Affiliates. In this regard, each Lender acknowledges that XxxxxxΒ & XxxxxxΒ L.L.P. is acting in this transaction as special counsel to the Administrative Agent only, except to the extent otherwise expressly stated in any legal opinion or any Loan Document. Each other party hereto will consult with its own legal counsel to the extent that it deems necessary in connection with the Loan Documents and the matters contemplated therein.
SectionΒ 11.09 Administrative Agent May File Proofs of Claim. In case of the pendency of any receivership, insolvency, liquidation, bankruptcy, reorganization, arrangement, adjustment, composition or other judicial proceeding relative to the Borrower or any of its Subsidiaries or any DevCo, the Administrative Agent (irrespective of whether the principal of any Loan shall then be due and payable as herein expressed or by declaration or otherwise and irrespective of whether the Administrative Agent shall have made any demand on the Borrower) shall be entitled and empowered, by intervention in such proceeding or otherwise:
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(a) to file and prove a claim for the whole amount of the principal and interest owing and unpaid in respect of the Loans and all other Indebtedness that are owing and unpaid and to file such other documents as may be necessary or advisable in order to have the claims of the Lenders and the Administrative Agent (including any claim for the reasonable compensation, expenses, disbursements and advances of the Lenders and the Administrative Agent and their respective agents and counsel and all other amounts due the Lenders and the Administrative Agent underΒ SectionΒ 12.03) allowed in such judicial proceeding; and
(b) to collect and receive any monies or other property payable or deliverable on any such claims and to distribute the same;
and any custodian, receiver, assignee, trustee, liquidator, sequestrator or other similar official in any such judicial proceeding is hereby authorized by each Lender to make such payments to the Administrative Agent and, in the event that the Administrative Agent shall consent to the making of such payments directly to the Lenders, to pay to the Administrative Agent any amount due for the reasonable compensation, expenses, disbursements and advances of the Administrative Agent and its agents and counsel, and any other amounts due the Administrative Agent underΒ SectionΒ 12.03.
Nothing contained herein shall be deemed to authorize the Administrative Agent to authorize or consent to or accept or adopt on behalf of any Lender any plan of reorganization, arrangement, adjustment or composition affecting the Indebtedness or the rights of any Lender or to authorize the Administrative Agent to vote in respect of the claim of any Lender in any such proceeding.
SectionΒ 11.10 Authority of Administrative Agent to Release Collateral and Liens. Each Lender and the Issuing Bank hereby authorizes the Administrative Agent to release any Collateral or Guarantor or DevCo that is permitted to be sold or released pursuant to the terms of the Loan Documents. Each Lender and the Issuing Bank hereby authorizes the Administrative Agent to execute and deliver to the Borrower, at the Borrowerβs sole cost and expense, any and all releases of Liens, termination statements, assignments or other documents reasonably requested by the Borrower in connection with any sale or other disposition of Property or release of a Guarantor or of a DevCo to the extent such sale or other disposition or release of Guarantor or of a DevCo is permitted by the terms ofΒ SectionΒ 9.12 or is otherwise authorized by the terms of the Loan Documents.
SectionΒ 11.11 The Arranger. The Arranger shall have no duties, responsibilities or liabilities under this Agreement.
SectionΒ 11.12 Intercreditor Agreement. The Lenders hereby authorize the Administrative Agent to enter into any such Intercreditor Agreement with respect to the Permitted OMP Credit Facility Liens. Each Lender (by receiving the benefits thereunder and of the Collateral pledged pursuant to the Security Instruments) agrees that the terms of the Intercreditor Agreement shall be binding on such Lender and its successors and assigns, as if it were a party thereto.
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ARTICLEΒ XII
Miscellaneous
SectionΒ 12.01 Notices.
(a) Except in the case of notices and other communications expressly permitted to be given by telephone (and subject toΒ SectionΒ 12.01(b)), all notices and other communications provided for herein shall be in writing and shall be delivered by hand or overnight courier service, mailed by certified or registered mail or sent by facsimile or e-mail, as follows:
(i) if to the Borrower or the Parent, OP LLC, to it at 0000 Xxxxxx, Xxxxx 0000, Xxxxxxx, Xxxxx 00000, Attention of Michael Lou (Facsimile No. (000) 000-0000, e-mail address: xxxx@xxxxxxxxxxxxxx.xxx);
(ii) if to the Administrative Agent, to it at 0000 Xxxxxxxxx, Xxxxx 000, Xxxxxxx, Xxxxx, 00000; Attention of Xx Xxx (Facsimile No. (000) 000-0000, e-mail address: Xxxxxx.Xxx@xxxxxxxxxx.xxx), with a copy to WLS Charlotte Agency Services (Facsimile No. (000) 000-0000, email address: Xxxxx.Xxxxxxx@xxxxxxxxxx.xxx), 0000 X. XX Xxxxxx Xxxx., Xxxxxxxxx, XX 00000;
(iii) if to any other Lender, to it at its address (or telecopy number) set forth in its Administrative Questionnaire.
(b) Notices and other communications to the Lenders hereunder may be delivered or furnished by electronic communications pursuant to procedures approved by the Administrative Agent; provided that the foregoing shall not apply to notices pursuant to ArticleΒ II, ArticleΒ III, ArticleΒ IV and ArticleΒ V unless otherwise agreed by the Administrative Agent and the applicable Lender. The Administrative Agent or the Borrower may, in its discretion, agree to accept notices and other communications to it hereunder by electronic communications pursuant to procedures approved by it; provided that approval of such procedures may be limited to particular notices or communications.
(c) Any party hereto may change its address or telecopy number for notices and other communications hereunder by notice to the other parties hereto. All notices and other communications given to any party hereto in accordance with the provisions of this Agreement shall be deemed to have been given on the date of receipt.
SectionΒ 12.02 Waivers; Amendments.
(a) No failure on the part of the Administrative Agent, any other Agent, the Issuing Bank or any Lender to exercise and no delay in exercising, and no course of dealing with respect to, any right, power or privilege, or any abandonment or discontinuance of steps to enforce such right, power or privilege, under any of the Loan Documents shall operate as a waiver thereof, nor shall any single or partial exercise of any right, power or privilege under any of the Loan Documents preclude any other or further exercise thereof or the exercise of any other right, power or privilege. The rights and remedies of the Administrative Agent, any other Agent, the Issuing Bank and the Lenders hereunder and under the other Loan Documents
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are cumulative and are not exclusive of any rights or remedies that they would otherwise have. No waiver of any provision of this Agreement or any other Loan Document or consent to any departure by the Borrower therefrom shall in any event be effective unless the same shall be permitted byΒ SectionΒ 12.02(b), and then such waiver or consent shall be effective only in the specific instance and for the purpose for which given. Without limiting the generality of the foregoing, the making of a Loan or issuance of a Letter of Credit shall not be construed as a waiver of any Default, regardless of whether the Administrative Agent, any other Agent, any Lender or the Issuing Bank may have had notice or knowledge of such Default at the time.
(b) Neither this Agreement nor any provision hereof nor any other Security Instrument nor any provision thereof may be waived, amended or modified except pursuant to an agreement or agreements in writing entered into by the Borrower and the Majority Lenders or by the Borrower and the Administrative Agent with the consent of the Majority Lenders; provided that no such agreement shall (i)Β increase the Maximum Credit Amount or Elected Commitment of any Lender without the written consent of such Lender, (ii)Β increase the Borrowing Base without the written consent of the Requisite Increase Lenders, decrease or maintain the Borrowing Base without the consent of the Required Lenders, or modifyΒ SectionΒ 2.07 in any manner that results in an increase in the Borrowing Base without the consent of each Lender, (iii)Β reduce the principal amount of any Loan or LC Disbursement or reduce the rate of interest thereon, or reduce any fees payable hereunder, or reduce any other Indebtedness hereunder or under any other Loan Document, without the written consent of each Lender affected thereby, (iv)Β postpone the scheduled date of payment or prepayment of the principal amount of any Loan or LC Disbursement, or any interest thereon, or any fees payable hereunder, or any other Indebtedness hereunder or under any other Loan Document, or reduce the amount of, waive or excuse any such payment, or postpone or extend the Termination Date without the written consent of each Lender affected thereby, (v)Β changeΒ SectionΒ 4.01(b) orΒ SectionΒ 4.01(c) in a manner that would alter the pro rata sharing of payments required thereby, without the written consent of each Lender, (vi)Β waive or amendΒ SectionΒ 3.04(c),Β SectionΒ 6.01,Β SectionΒ 8.14,Β SectionΒ 10.02(c) orΒ SectionΒ 12.14 or change the definition of the terms βDomestic Subsidiaryβ, βForeign Subsidiaryβ, βMaterial Subsidiaryβ, βSubsidiaryβ or βApplicable Percentageβ, without the written consent of each Lender (other than any Defaulting Lender), (vii)Β release any Guarantor (except as set forth in the Guaranty and Security Agreement or as provided for inΒ SectionΒ 11.10), release all or substantially all of the collateral (other than as provided inΒ SectionΒ 11.10), or reduce the percentage set forth inΒ SectionΒ 8.14, without the written consent of each Lender (other than any Defaulting Lender), or (viii)Β change any of the provisions of thisΒ SectionΒ 12.02(b) or the definitions of βMajority Lendersβ, βRequisite Increase Lendersβ, βRequired Lendersβ or any other provision hereof specifying the number or percentage of Lenders required to waive, amend or modify any rights hereunder or under any other Loan Documents or make any determination or grant any consent hereunder or any other Loan Documents, without the written consent of each Lender; provided, further that no such agreement shall amend, modify or otherwise affect the rights or duties of the Administrative Agent, any other Agent or the Issuing Bank hereunder or under any other Loan Document without the prior written consent of the Administrative Agent, such other Agent or the Issuing Bank, as the case may be. Notwithstanding the foregoing, any supplement to ScheduleΒ 7.14 (Subsidiaries) shall be effective simply by delivering to the Administrative Agent a supplemental schedule clearly marked as such and, upon receipt, the Administrative Agent will promptly deliver a copy thereof to the Lenders.
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SectionΒ 12.03 Expenses, Indemnity; Damage Waiver.
(a) The Borrower shall pay (i)Β all reasonable out-of-pocket expenses incurred by the Administrative Agent and its Affiliates, including, without limitation, the reasonable fees, charges and disbursements of counsel and other outside consultants for the Administrative Agent, the reasonable travel, photocopy, mailing, courier, telephone and other similar expenses, and the cost of environmental audits and surveys and appraisals, in connection with the syndication of the credit facilities provided for herein, the preparation, negotiation, execution, delivery and administration (both before and after the execution hereof and including advice of counsel to the Administrative Agent as to the rights and duties of the Administrative Agent and the Lenders with respect thereto) of this Agreement and the other Loan Documents and any amendments, modifications or waivers of or consents related to the provisions hereof or thereof (whether or not the transactions contemplated hereby or thereby shall be consummated), (ii)Β all costs, expenses, Taxes, assessments and other charges incurred by any Agent or any Lender in connection with any filing, registration, recording or perfection of any security interest contemplated by this Agreement or any Security Instrument or any other document referred to therein, (iii)Β all reasonable out-of-pocket expenses incurred by the Issuing Bank in connection with the issuance, amendment, renewal or extension of any Letter of Credit or any demand for payment thereunder, and (iv)Β all out-of-pocket expenses incurred by any Agent, the Issuing Bank or any Lender, including the reasonable fees, charges and disbursements of any counsel for any Agent, the Issuing Bank or any Lender, in connection with the enforcement or protection of its rights in connection with this Agreement or any other Loan Document, including its rights under thisΒ SectionΒ 12.03, or in connection with the Loans made or Letters of Credit issued hereunder, including, without limitation, all such out-of-pocket expenses incurred during any workout, restructuring or negotiations in respect of such Loans or Letters of Credit, except in the case of out-of-pocket expenses described in this clauseΒ (iv)Β to the extent that SectionΒ 12.03Β (b) expressly provides that the Borrower shall not indemnify such party for such out-of-pocket expenses.
(b) THE BORROWER SHALL INDEMNIFY EACH AGENT, THE ARRANGER, THE ISSUING BANK AND EACH LENDER, AND EACH RELATED PARTY OF ANY OF THE FOREGOING PERSONS (EACH SUCH PERSON BEING CALLED AN βINDEMNITEEβ) AGAINST, AND HOLD EACH INDEMNITEE HARMLESS FROM, ANY AND ALL LOSSES, CLAIMS, DAMAGES, LIABILITIES AND RELATED EXPENSES, INCLUDING THE FEES, CHARGES AND DISBURSEMENTS OF ANY COUNSEL FOR ANY INDEMNITEE, INCURRED BY OR ASSERTED AGAINST ANY INDEMNITEE ARISING OUT OF, IN CONNECTION WITH, OR AS A RESULT OF (i)Β THE EXECUTION OR DELIVERY OF THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT OR ANY AGREEMENT OR INSTRUMENT CONTEMPLATED HEREBY OR THEREBY (OTHER THAN EXPENSES IN CONNECTION WITH THE EXECUTION AND DELIVERY OF THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS DATED OF EVEN DATE HEREWITH, WHICH EXPENSES SHALL ONLY BE PAID BY THE BORROWER TO THE EXTENT PROVIDED IN SECTIONΒ 12.03(a)), (ii)Β THE PERFORMANCE BY THE PARTIES HERETO OR THE PARTIES TO ANY OTHER
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LOAN DOCUMENT OF THEIR RESPECTIVE OBLIGATIONS HEREUNDER OR THEREUNDER OR THE CONSUMMATION OF THE TRANSACTIONS CONTEMPLATED HEREBY OR BY ANY OTHER LOAN DOCUMENT, (iii)Β THE FAILURE OF THE BORROWER OR ANY SUBSIDIARY OR ANY DEVCO TO COMPLY WITH THE TERMS OF ANY LOAN DOCUMENT, INCLUDING THIS AGREEMENT, OR WITH ANY GOVERNMENTAL REQUIREMENT, (iv)Β ANY INACCURACY OF ANY REPRESENTATION OR ANY BREACH OF ANY WARRANTY OR COVENANT OF THE BORROWER OR ANY GUARANTOR OR ANY DEVCO SET FORTH IN ANY OF THE LOAN DOCUMENTS OR ANY INSTRUMENTS, DOCUMENTS OR CERTIFICATIONS DELIVERED IN CONNECTION THEREWITH, (v)Β ANY LOAN OR LETTER OF CREDIT OR THE USE OF THE PROCEEDS THEREFROM, INCLUDING, WITHOUT LIMITATION, (A)Β ANY REFUSAL BY THE ISSUING BANK TO HONOR A DEMAND FOR PAYMENT UNDER A LETTER OF CREDIT IF THE DOCUMENTS PRESENTED IN CONNECTION WITH SUCH DEMAND DO NOT STRICTLY COMPLY WITH THE TERMS OF SUCH LETTER OF CREDIT, OR (B)Β THE PAYMENT OF A DRAWING UNDER ANY LETTER OF CREDIT NOTWITHSTANDING THE NON-COMPLIANCE, NON-DELIVERY OR OTHER IMPROPER PRESENTATION OF THE DOCUMENTS PRESENTED IN CONNECTION THEREWITH, (vi)Β ANY OTHER ASPECT OF THE LOAN DOCUMENTS, (vii)Β THE OPERATIONS OF THE BUSINESS OF THE BORROWER AND ITS SUBSIDIARIES AND THE DEVCOS BY THE BORROWER AND ITS SUBSIDIARIES AND THE DEVCOS, (viii)Β ANY ASSERTION THAT THE LENDERS WERE NOT ENTITLED TO RECEIVE THE PROCEEDS RECEIVED PURSUANT TO THE SECURITY INSTRUMENTS, (ix)Β ANY ENVIRONMENTAL LAW APPLICABLE TO THE BORROWER OR ANY SUBSIDIARY OR ANY DEVCO OR ANY OF THEIR PROPERTIES, INCLUDING WITHOUT LIMITATION, THE PRESENCE, GENERATION, STORAGE, RELEASE, THREATENED RELEASE, USE, TRANSPORT, DISPOSAL, ARRANGEMENT OF DISPOSAL OR TREATMENT OF OIL, OIL AND GAS WASTES, SOLID WASTES OR HAZARDOUS MATERIALS ON ANY OF THEIR PROPERTIES, (x)Β THE BREACH OR NON-COMPLIANCE BY THE BORROWER OR ANY SUBSIDIARY OR ANY DEVCO WITH ANY ENVIRONMENTAL LAW APPLICABLE TO THE BORROWER OR ANY SUBSIDIARY OR ANY DEVCO, (xi)Β THE PAST OWNERSHIP BY THE BORROWER OR ANY SUBSIDIARY OR ANY DEVCO OF ANY OF THEIR PROPERTIES OR PAST ACTIVITY ON ANY OF THEIR PROPERTIES WHICH, THOUGH LAWFUL AND FULLY PERMISSIBLE AT THE TIME, COULD RESULT IN PRESENT LIABILITY, (xii)Β THE PRESENCE, USE, RELEASE, STORAGE, TREATMENT, DISPOSAL, GENERATION, THREATENED RELEASE, TRANSPORT, ARRANGEMENT FOR TRANSPORT OR ARRANGEMENT FOR DISPOSAL OF OIL, OIL AND GAS WASTES, SOLID WASTES OR HAZARDOUS MATERIALS ON OR AT ANY OF THE PROPERTIES OWNED OR OPERATED BY THE BORROWER OR ANY SUBSIDIARY OR ANY DEVCO OR ANY ACTUAL OR ALLEGED PRESENCE OR RELEASE OF HAZARDOUS MATERIALS ON OR FROM ANY PROPERTY OWNED OR OPERATED BY THE BORROWER OR ANY OF ITS SUBSIDIARIES OR ANY DEVCO, (xiii)Β ANY ENVIRONMENTAL LIABILITY RELATED IN ANY WAY TO THE BORROWER OR ANY OF ITS SUBSIDIARIES OR ANY DEVCO, (xiv)Β ANY OTHER ENVIRONMENTAL, HEALTH OR SAFETY CONDITION IN CONNECTION WITH THE LOAN DOCUMENTS, OR (xv)Β ANY ACTUAL OR PROSPECTIVE CLAIM, LITIGATION,
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INVESTIGATION OR PROCEEDING RELATING TO ANY OF THE FOREGOING, WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY AND REGARDLESS OF WHETHER ANY INDEMNITEE IS A PARTY THERETO, AND SUCH INDEMNITY SHALL EXTEND TO EACH INDEMNITEE NOTWITHSTANDING THE SOLE OR CONCURRENT NEGLIGENCE OF EVERY KIND OR CHARACTER WHATSOEVER, INCLUDING ITS OWN ORDINARY NEGLIGENCE, WHETHER ACTIVE OR PASSIVE, WHETHER AN AFFIRMATIVE ACT OR AN OMISSION, INCLUDING WITHOUT LIMITATION, ALL TYPES OF NEGLIGENT CONDUCT IDENTIFIED IN THE RESTATEMENT (SECOND) OF TORTS OF ONE OR MORE OF THE INDEMNITEES OR BY REASON OF STRICT LIABILITY IMPOSED WITHOUT FAULT ON ANY ONE OR MORE OF THE INDEMNITEES; PROVIDED THAT SUCH INDEMNITY SHALL NOT, AS TO ANY INDEMNITEE, BE AVAILABLE TO THE EXTENT THAT SUCH LOSSES, CLAIMS, DAMAGES, LIABILITIES OR RELATED EXPENSES ARE DETERMINED BY A COURT OF COMPETENT JURISDICTION BY FINAL AND NONAPPEALABLE JUDGMENT TO HAVE RESULTED FROM THE GROSS NEGLIGENCE OR WILLFUL MISCONDUCT OF SUCH INDEMNITEE; PROVIDED THAT THE BORROWER SHALL NOT INDEMNIFY ANY INDEMNITEE FOR (I)Β ANY FINANCIAL LIABILITIES OF A LENDER TO THE PARENT, OP LLC, THE BORROWER OR ANY SUBSIDIARY PURSUANT TO AND IN ACCORDANCE WITH THE TERMS OF A SWAP AGREEMENT, (ii)Β CLAIMS AMONG LENDERS OR BETWEEN LENDERS AND THEIR RELATED PARTIES TO THE EXTENT NOT RELATED TO A BREACH OF AN OBLIGATION OF THE PARENT, OP LLC, THE BORROWER OR ANY SUBSIDIARY AND (iii)Β LOSSES, CLAIMS, DAMAGES, LIABILITIES OR RELATED EXPENSES THAT ARE DETERMINED BY A COURT OF COMPETENT JURISDICTION BY FINAL AND NONAPPEALABLE JUDGMENT TO BE A DIRECT RESULT OF A MATERIAL BREACH OF THIS AGREEMENT BY SUCH INDEMNITEE.
(c) To the extent that the Borrower fails to pay any amount required to be paid by it to any Agent, the Arranger or the Issuing Bank underΒ SectionΒ 12.03(a) orΒ (b), each Lender severally agrees to pay to such Agent, the Arranger or the Issuing Bank, as the case may be, such Lenderβs Applicable Percentage (determined as of the time that the applicable unreimbursed expense or indemnity payment is sought) of such unpaid amount; provided that the unreimbursed expense or indemnified loss, claim, damage, liability or related expense, as the case may be, was incurred by or asserted against such Agent, the Arranger or the Issuing Bank in its capacity as such.
(d) To the extent permitted by applicable law, the Parent, OP LLC and the Borrower shall not assert, and hereby waive, any claim against any Indemnitee, on any theory of liability, for special, indirect, consequential or punitive damages (as opposed to direct or actual damages) arising out of, in connection with, or as a result of, this Agreement, any other Loan Document or any agreement or instrument contemplated hereby or thereby, the Transactions, any Loan or Letter of Credit or the use of the proceeds thereof.
(e) All amounts due under thisΒ SectionΒ 12.03 shall be payable not later than 10 days after written demand therefor.
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SectionΒ 12.04 Successors and Assigns.
(a) The provisions of this Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns permitted hereby (including any Affiliate of the Issuing Bank that issues any Letter of Credit), except that (i)Β the Borrower may not assign or otherwise transfer any of its rights or obligations hereunder without the prior written consent of each Lender (and any attempted assignment or transfer by the Borrower without such consent shall be null and void) and (ii)Β no Lender may assign or otherwise transfer its rights or obligations hereunder except in accordance with thisΒ SectionΒ 12.04. Nothing in this Agreement, expressed or implied, shall be construed to confer upon any Person (other than the parties hereto, their respective successors and assigns permitted hereby (including any Affiliate of the Issuing Bank that issues any Letter of Credit), Participants (to the extent provided inΒ SectionΒ 12.04(c)) and, to the extent expressly contemplated hereby, the Related Parties of each of the Administrative Agent, the Issuing Bank and the Lenders) any legal or equitable right, remedy or claim under or by reason of this Agreement.
(b) (i)Β Subject to the conditions set forth inΒ SectionΒ 12.04(b)(ii), any Lender may assign to one or more assignees all or a portion of its rights and obligations under this Agreement (including all or a portion of its Commitment and the Loans at the time owing to it) with the prior written consent (such consent not to be unreasonably withheld or delayed) of:
(A) the Borrower, provided that no consent of the Borrower shall be required if such assignment is to a Lender, an Affiliate of a Lender, an Approved Fund, or, if an Event of Default has occurred and is continuing, is to any other assignee; and
(B) the Administrative Agent, provided that no consent of the Administrative Agent shall be required for an assignment to an assignee that is a Lender or an Affiliate of a Lender immediately prior to giving effect to such assignment.
(ii) Assignments shall be subject to the following additional conditions:
(A) except in the case of an assignment to a Lender or an Affiliate of a Lender or an assignment of the entire remaining amount of the assigning Lenderβs Commitment or Loans, the amount of the Commitment or Loans of the assigning Lender subject to each such assignment (determined as of the date the Assignment and Assumption with respect to such assignment is delivered to the Administrative Agent) shall not be less than $5,000,000 unless each of the Borrower and the Administrative Agent otherwise consent, provided that no such consent of the Borrower shall be required if an Event of Default has occurred and is continuing;
(B) each partial assignment shall be made as an assignment of a proportionate part of all the assigning Lenderβs rights and obligations under this Agreement;
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(C) the parties to each assignment shall execute and deliver to the Administrative Agent an Assignment and Assumption, together with a processing and recordation fee of $3,500;
(D) the assignee, if it shall not be a Lender, shall deliver to the Administrative Agent an Administrative Questionnaire;
(E) no such assignment shall be made to a natural person (or a holding company, investment vehicle or trust for, or owned and operated for the primary benefit of, a natural Person) or an Industry Competitor, the Borrower or any of the Borrowerβs Affiliates or Subsidiaries; and
(F) in no event may any Lender assign all or a portion of its rights and obligations under this Agreement to the Borrower or any Affiliate of the Borrower.
(iii) Subject toΒ SectionΒ 12.04(b)(iv) and the acceptance and recording thereof, from and after the effective date specified in each Assignment and Assumption the assignee thereunder shall be a party hereto and, to the extent of the interest assigned by such Assignment and Assumption, have the rights and obligations of a Lender under this Agreement, and the assigning Lender thereunder shall, to the extent of the interest assigned by such Assignment and Assumption, be released from its obligations under this Agreement (and, in the case of an Assignment and Assumption covering all of the assigning Lenderβs rights and obligations under this Agreement, such Lender shall cease to be a party hereto but shall continue to be entitled to the benefits ofΒ SectionΒ 5.01,Β SectionΒ 5.02,Β SectionΒ 5.03 andΒ SectionΒ 12.03). Any assignment or transfer by a Lender of rights or obligations under this Agreement that does not comply with thisΒ SectionΒ 12.04 shall be treated for purposes of this Agreement as a sale by such Lender of a participation in such rights and obligations in accordance withΒ SectionΒ 12.04(c).
(iv) The Administrative Agent, acting for this purpose as a non-fiduciary agent of the Borrower, shall maintain at one of its offices a copy of each Assignment and Assumption delivered to it and a register for the recordation of the names and addresses of the Lenders, and the Maximum Credit Amount and Elected Commitment of, and principal amount of the Loans and LC Disbursements owing to, each Lender pursuant to the terms hereof from time to time (the βRegisterβ). The entries in the Register shall be conclusive (absent manifest error), and the Borrower, the Administrative Agent, the Issuing Bank and the Lenders may treat each Person whose name is recorded in the Register pursuant to the terms hereof as a Lender hereunder for all purposes of this Agreement, notwithstanding notice to the contrary. The Register shall be available for inspection by the Borrower, the Issuing Bank and any Lender, at any reasonable time and from time to time upon reasonable prior notice. In connection with any changes to the Register, if necessary, the Administrative Agent will reflect the revisions on AnnexΒ I and forward a copy of such revised AnnexΒ I to the Borrower, the Issuing Bank and each Lender.
(v) Upon its receipt of a duly completed Assignment and Assumption executed by an assigning Lender and an assignee, the assigneeβs completed Administrative Questionnaire (unless the assignee shall already be a Lender hereunder), the processing and recordation fee referred to inΒ SectionΒ 12.04(b) and any written consent to such assignment
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required byΒ SectionΒ 12.04(b), the Administrative Agent shall accept such Assignment and Assumption and record the information contained therein in the Register. No assignment shall be effective for purposes of this Agreement unless it has been recorded in the Register as provided in thisΒ SectionΒ 12.04(b).
(c) (i)Β Any Lender may, without the consent of the Borrower, the Administrative Agent or the Issuing Bank, sell participations to one or more banks or other entities (a βParticipantβ) in all or a portion of such Lenderβs rights and obligations under this Agreement (including all or a portion of its Commitment and the Loans owing to it); provided that (A)Β such Lenderβs obligations under this Agreement shall remain unchanged, (B)Β such Lender shall remain solely responsible to the other parties hereto for the performance of such obligations, (C)Β the Borrower, the Administrative Agent, the Issuing Bank and the other Lenders shall continue to deal solely and directly with such Lender in connection with such Lenderβs rights and obligations under this Agreement, and (D)Β no such participation may be sold to a natural Person or an Industry Competitor. Any agreement or instrument pursuant to which a Lender sells such a participation shall provide that such Lender shall retain the sole right to enforce this Agreement and to approve any amendment, modification or waiver of any provision of this Agreement; provided that such agreement or instrument may provide that such Lender will not, without the consent of the Participant, agree to any amendment, modification or waiver described in the proviso toΒ SectionΒ 12.02 that affects such Participant. In addition such agreement must provide that the Participant be bound by the provisions ofΒ SectionΒ 12.03. Subject toΒ SectionΒ 12.04(c)(ii), the Borrower agrees that each Participant shall be entitled to the benefits ofΒ SectionΒ 5.01,Β SectionΒ 5.02 andΒ SectionΒ 5.03 to the same extent as if it were a Lender and had acquired its interest by assignment pursuant toΒ SectionΒ 12.04(b). To the extent permitted by law, each Participant also shall be entitled to the benefits ofΒ SectionΒ 12.08 as though it were a Lender, provided such Participant agrees to be subject toΒ SectionΒ 4.01(c) as though it were a Lender. Each Lender that sells a participation shall, acting solely for this purpose as a non-fiduciary agent of the Borrower, maintain a register on which it enters the name and address of each Participant and the principal amounts (and stated interest) of each Participantβs interest in the Loans or other obligations under the Loan Documents (the βParticipant Registerβ); provided that no Lender shall have any obligation to disclose all or any portion of the Participant Register (including the identity of any Participant or any information relating to a Participantβs interest in any commitments, loans, letters of credit or its other obligations under any Loan Document) to any Person except to the extent that such disclosure is necessary to establish that such commitment, loan, letter of credit or other obligation is in registered form under SectionΒ 5f.103-1(c) of the United States Treasury Regulations. The entries in the Participant Register shall be conclusive absent manifest error, and such Lender shall treat each Person whose name is recorded in the Participant Register as the owner of such participation for all purposes of this Agreement notwithstanding any notice to the contrary. For the avoidance of doubt, the Administrative Agent (in its capacity as Administrative Agent) shall have no responsibility for maintaining a Participant Register.
(ii) A Participant shall not be entitled to receive any greater payment underΒ SectionΒ 5.01 orΒ SectionΒ 5.03 than the applicable Lender would have been entitled to receive with respect to the participation sold to such Participant, unless the sale of the participation to such Participant is made with the Borrowerβs prior written consent. A
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Participant that would be a Foreign Lender if it were a Lender shall not be entitled to the benefits ofΒ SectionΒ 5.03 unless the Borrower is notified of the participation sold to such Participant and such Participant agrees, for the benefit of the Borrower, to comply withΒ SectionΒ 5.03(e) as though it were a Lender.
(d) Any Lender may at any time pledge or assign a security interest in all or any portion of its rights under this Agreement to secure obligations of such Lender, including, without limitation, any pledge or assignment to secure obligations to a Federal Reserve Bank or other central banking authority, and thisΒ SectionΒ 12.04(d) shall not apply to any such pledge or assignment of a security interest; provided that no such pledge or assignment of a security interest shall release a Lender from any of its obligations hereunder or substitute any such pledgee or assignee for such Lender as a party hereto.
(e) Notwithstanding any other provisions of thisΒ SectionΒ 12.04, no transfer or assignment of the interests or obligations of any Lender or any grant of participations therein shall be permitted if such transfer, assignment or grant would require the Borrower and the Guarantors to file a registration statement with the SEC or to qualify the Loans under the βBlue Skyβ laws of any state.
SectionΒ 12.05 Survival; Revival; Reinstatement.
(a) All covenants, agreements, representations and warranties made by Parent and the Borrower herein and in the certificates or other instruments delivered in connection with or pursuant to this Agreement or any other Loan Document shall be considered to have been relied upon by the other parties hereto and shall survive the execution and delivery of this Agreement and the making of any Loans and issuance of any Letters of Credit, regardless of any investigation made by any such other party or on its behalf and notwithstanding that the Administrative Agent, any other Agent, the Issuing Bank or any Lender may have had notice or knowledge of any Default or incorrect representation or warranty at the time any credit is extended hereunder, and shall continue in full force and effect as long as the principal of or any accrued interest on any Loan or any fee or any other amount payable under this Agreement is outstanding and unpaid or any Letter of Credit is outstanding and so long as the Commitments have not expired or terminated. The provisions ofΒ SectionΒ 5.01,Β SectionΒ 5.02,Β SectionΒ 5.03 andΒ SectionΒ 12.03 and ArticleΒ XI shall survive and remain in full force and effect for a period of 180 days following the Maturity Date, regardless of the consummation of the transactions contemplated hereby, the repayment of the Loans, the expiration or termination of the Letters of Credit and the Commitments or the termination of this Agreement, any other Loan Document or any provision hereof or thereof.
(b) To the extent that any payments on the Indebtedness or proceeds of any Collateral are subsequently invalidated, declared to be fraudulent or preferential, set aside or required to be repaid to a trustee, debtor in possession, receiver or other Person under any bankruptcy law, common law or equitable cause, then to such extent, the Indebtedness so satisfied shall be revived and continue as if such payment or proceeds had not been received and the Administrative Agentβs and the Lendersβ Liens, security interests, rights, powers and remedies under this Agreement and each Loan Document shall continue in full force and effect. In such event, each Loan Document shall be automatically reinstated and the Parent, OP LLC and the Borrower shall take such action as may be reasonably requested by the Administrative Agent and the Lenders to effect such reinstatement.
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SectionΒ 12.06 Counterparts; Integration; Effectiveness.
(a) This Agreement may be executed in counterparts (and by different parties hereto on different counterparts), each of which shall constitute an original, but all of which when taken together shall constitute a single contract.
(b) This Agreement, the other Loan Documents and any separate letter agreements with respect to fees payable to the Administrative Agent constitute the entire contract among the parties relating to the subject matter hereof and thereof and supersede any and all previous agreements and understandings, oral or written, relating to the subject matter hereof and thereof. THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS REPRESENT THE FINAL AGREEMENT AMONG THE PARTIES HERETO AND THERETO AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.
(c) Except as provided inΒ SectionΒ 6.01, this Agreement shall become effective when it shall have been executed by the Administrative Agent and when the Administrative Agent shall have received counterparts hereof which, when taken together, bear the signatures of each of the other parties hereto, and thereafter shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns. Delivery of an executed counterpart of a signature page of this Agreement by telecopy shall be effective as delivery of a manually executed counterpart of this Agreement.
SectionΒ 12.07 Severability. Any provision of this Agreement or any other Loan Document held to be invalid, illegal or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such invalidity, illegality or unenforceability without affecting the validity, legality and enforceability of the remaining provisions hereof or thereof; and the invalidity of a particular provision in a particular jurisdiction shall not invalidate such provision in any other jurisdiction.
SectionΒ 12.08 Right of Setoff. If an Event of Default shall have occurred and be continuing, each Lender and each of its Affiliates is hereby authorized at any time and from time to time, to the fullest extent permitted by law, to set off and apply any and all deposits (general or special, time or demand, provisional or final) at any time held and other obligations (of whatsoever kind, including, without limitations obligations under Swap Agreements) at any time owing by such Lender or Affiliate to or for the credit or the account of the Parent, OP LLC, the Borrower or any Subsidiary or any DevCo against any of and all the obligations of the Parent, OP LLC, the Borrower or any Subsidiary or any DevCo owed to such Lender now or hereafter existing under this Agreement or any other Loan Document, irrespective of whether or not such Lender shall have made any demand under this Agreement or any other Loan Document and although such obligations may be unmatured. The rights of each Lender under thisΒ SectionΒ 12.08 are in addition to other rights and remedies (including other rights of setoff) which such Lender or its Affiliates may have.
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SectionΒ 12.09 GOVERNING LAW; JURISDICTION; CONSENT TO SERVICE OF PROCESS.
(a) THIS AGREEMENT AND THE NOTES SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK EXCEPT TO THE EXTENT THAT UNITED STATES FEDERAL LAW PERMITS ANY LENDER TO CONTRACT FOR, CHARGE, RECEIVE, RESERVE OR TAKE INTEREST AT THE RATE ALLOWED BY THE LAWS OF THE STATE WHERE SUCH LENDER IS LOCATED.
(b) ANY LEGAL ACTION OR PROCEEDING WITH RESPECT TO THE LOAN DOCUMENTS SHALL BE BROUGHT IN THE COURTS OF THE STATE OF NEW YORK OR OF THE UNITED STATES OF AMERICA FOR THE SOUTHERN DISTRICT OF NEW YORK, AND, BY EXECUTION AND DELIVERY OF THIS AGREEMENT, EACH PARTY HEREBY ACCEPTS FOR ITSELF AND (TO THE EXTENT PERMITTED BY LAW) IN RESPECT OF ITS PROPERTY, GENERALLY AND UNCONDITIONALLY, THE JURISDICTION OF THE AFORESAID COURTS. EACH PARTY HEREBY IRREVOCABLY WAIVES ANY OBJECTION, INCLUDING, WITHOUT LIMITATION, ANY OBJECTION TO THE LAYING OF VENUE OR BASED ON THE GROUNDS OF FORUM NON CONVENIENS, WHICH IT MAY NOW OR HEREAFTER HAVE TO THE BRINGING OF ANY SUCH ACTION OR PROCEEDING IN SUCH RESPECTIVE JURISDICTIONS. THIS SUBMISSION TO JURISDICTION IS NON-EXCLUSIVE AND DOES NOT PRECLUDE A PARTY FROM OBTAINING JURISDICTION OVER ANOTHER PARTY IN ANY COURT OTHERWISE HAVING JURISDICTION.
(c) EACH PARTY IRREVOCABLY CONSENTS TO THE SERVICE OF PROCESS OF ANY OF THE AFOREMENTIONED COURTS IN ANY SUCH ACTION OR PROCEEDING BY THE MAILING OF COPIES THEREOF BY REGISTERED OR CERTIFIED MAIL, POSTAGE PREPAID, TO IT AT THE ADDRESS SPECIFIED IN SECTIONΒ 12.01 OR SUCH OTHER ADDRESS AS IS SPECIFIED PURSUANT TO SECTIONΒ 12.01 (OR ITS ASSIGNMENT AND ASSUMPTION), SUCH SERVICE TO BECOME EFFECTIVE THIRTY (30)Β DAYS AFTER SUCH MAILING. NOTHING HEREIN SHALL AFFECT THE RIGHT OF A PARTY OR ANY HOLDER OF A NOTE TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY LAW OR TO COMMENCE LEGAL PROCEEDINGS OR OTHERWISE PROCEED AGAINST ANOTHER PARTY IN ANY OTHER JURISDICTION.
(d) EACH PARTY HEREBY (i)Β IRREVOCABLY AND UNCONDITIONALLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT AND FOR ANY COUNTERCLAIM THEREIN; (ii)Β IRREVOCABLY WAIVES, TO THE MAXIMUM EXTENT NOT PROHIBITED BY LAW, ANY RIGHT IT MAY HAVE TO CLAIM OR RECOVER IN ANY SUCH LITIGATION ANY SPECIAL, EXEMPLARY, PUNITIVE OR CONSEQUENTIAL
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DAMAGES, OR DAMAGES OTHER THAN, OR IN ADDITION TO, ACTUAL DAMAGES; PROVIDED THAT NOTHING CONTAINED IN THIS SECTIONΒ 12.09(d)(ii) SHALL LIMIT THE BORROWERβS INDEMNIFICATION OBLIGATIONS TO THE EXTENT SET FORTH IN SECTIONΒ 12.03 TO THE EXTENT SUCH SPECIAL, EXEMPLARY, PUNITIVE OR CONSEQUENTIAL DAMAGES ARE INCLUDED IN ANY THIRD PARTY CLAIM IN CONNECTION WITH WHICH SUCH INDEMNITEE IS OTHERWISE ENTITLED TO INDEMNIFICATION HEREUNDER; (iii)Β CERTIFIES THAT NO PARTY HERETO NOR ANY REPRESENTATIVE OR AGENT OF COUNSEL FOR ANY PARTY HERETO HAS REPRESENTED, EXPRESSLY OR OTHERWISE, OR IMPLIED THAT SUCH PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVERS, AND (iv)Β ACKNOWLEDGES THAT IT HAS BEEN INDUCED TO ENTER INTO THIS AGREEMENT, THE LOAN DOCUMENTS AND THE TRANSACTIONS CONTEMPLATED HEREBY AND THEREBY BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS CONTAINED IN THIS SECTIONΒ 12.09.
SectionΒ 12.10 Headings. Article and Section headings and the Table of Contents used herein are for convenience of reference only, are not part of this Agreement and shall not affect the construction of, or be taken into consideration in interpreting, this Agreement.
SectionΒ 12.11 Confidentiality. Each of the Administrative Agent, the Issuing Bank and the Lenders agrees to maintain the confidentiality of the Information (as defined below), except that Information may be disclosed (a)Β to its and its Affiliatesβ directors, officers, employees and agents, including accountants, legal counsel and other advisors (it being understood that the Persons to whom such disclosure is made will be informed of the confidential nature of such Information and instructed to keep such Information confidential), (b)Β to the extent requested by any regulatory authority, (c)Β to the extent required by applicable laws or regulations or by any subpoena or similar legal process, (d)Β to any other party to this Agreement or any other Loan Document, (e)Β in connection with the exercise of any remedies hereunder or under any other Loan Document or any suit, action or proceeding relating to this Agreement or any other Loan Document or the enforcement of rights hereunder or thereunder, (f)Β subject to an agreement containing provisions substantially the same as those of thisΒ SectionΒ 12.11, to (i)Β any assignee of or Participant in, or any prospective assignee of or Participant in, any of its rights or obligations under this Agreement or (ii)Β any actual or prospective counterparty (or its advisors) to any Swap Agreement relating to the Parent, OP LLC or the Borrower and its obligations, (g)Β with the consent of the Borrower, (h)Β to any nationally recognized rating agency that requires access to information about a Lenderβs investment portfolio in connection with ratings issued with respect to such Lender or to any collector of market data or (i)Β to the extent such Information (i)Β becomes publicly available other than as a result of a breach of thisΒ SectionΒ 12.11 or (ii)Β becomes available to the Administrative Agent, the Issuing Bank or any Lender on a nonconfidential basis from a source other than the Parent, OP LLC or the Borrower. For the purposes of thisΒ SectionΒ 12.11, βInformationβ means all information received from the Parent, OP LLC, the Borrower, any Subsidiary or any DevCo relating to the Parent, OP LLC, the Borrower, any Subsidiary or any DevCo and their businesses, other than any such information that is available to the Administrative Agent, the Issuing Bank or any Lender on a nonconfidential basis prior to disclosure by the Parent, OP LLC, the Borrower, a Subsidiary or a DevCo; provided that, in the case of information received from the Parent, OP LLC, the
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Borrower, any Subsidiary or any DevCo after the date hereof, such information is clearly identified at the time of delivery as confidential. Any Person required to maintain the confidentiality of Information as provided in thisΒ SectionΒ 12.11 shall be considered to have complied with its obligation to do so if such Person has exercised the same degree of care to maintain the confidentiality of such Information as such Person would accord to its own confidential information. Notwithstanding anything herein to the contrary, βInformationβ shall not include, and the Borrower, the Borrowerβs Subsidiaries, the Administrative Agent, each Lender and the respective Affiliates of each of the foregoing (and the respective partners, directors, officers, employees, agents, advisors and other representatives of the aforementioned Persons), and any other party, may disclose to any and all Persons, without limitation of any kind (a)Β any information with respect to the United States federal and state income tax treatment of the transactions contemplated hereby and any facts that may be relevant to understanding the United States federal or state income tax treatment of such transactions (βtax structureβ), which facts shall not include for this purpose the names of the parties or any other person named herein, or information that would permit identification of the parties or such other persons, or any pricing terms or other nonpublic business or financial information that is unrelated to such tax treatment or tax structure, and (b)Β all materials of any kind (including opinions or other tax analyses) that are provided to the Borrower, the Administrative Agent or such Lender relating to such tax treatment or tax structure.
SectionΒ 12.12 Interest Rate Limitation. It is the intention of the parties hereto that each Lender shall conform strictly to usury laws applicable to it. Accordingly, if the transactions contemplated hereby would be usurious as to any Lender under laws applicable to it (including the laws of the United States of America and the State of Texas or any other jurisdiction whose laws may be mandatorily applicable to such Lender notwithstanding the other provisions of this Agreement), then, in that event, notwithstanding anything to the contrary in any of the Loan Documents or any agreement entered into in connection with or as security for the Notes, it is agreed as follows: (a)Β the aggregate of all consideration which constitutes interest under law applicable to any Lender that is contracted for, taken, reserved, charged or received by such Lender under any of the Loan Documents or agreements or otherwise in connection with the Notes shall under no circumstances exceed the maximum amount allowed by such applicable law, and any excess shall be canceled automatically and if theretofore paid shall be credited by such Lender on the principal amount of the Indebtedness (or, to the extent that the principal amount of the Indebtedness shall have been or would thereby be paid in full, refunded by such Lender to the Borrower); and (b)Β in the event that the maturity of the Notes is accelerated by reason of an election of the holder thereof resulting from any Event of Default under this Agreement or otherwise, or in the event of any required or permitted prepayment, then such consideration that constitutes interest under law applicable to any Lender may never include more than the maximum amount allowed by such applicable law, and excess interest, if any, provided for in this Agreement or otherwise shall be canceled automatically by such Lender as of the date of such acceleration or prepayment and, if theretofore paid, shall be credited by such Lender on the principal amount of the Indebtedness (or, to the extent that the principal amount of the Indebtedness shall have been or would thereby be paid in full, refunded by such Lender to the Borrower). All sums paid or agreed to be paid to any Lender for the use, forbearance or detention of sums due hereunder shall, to the extent permitted by law applicable to such Lender, be amortized, prorated, allocated and spread throughout the stated term of the Loans evidenced by the Notes until payment in full so that the rate or amount of interest on account of any Loans
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128
hereunder does not exceed the maximum amount allowed by such applicable law. If at any time and from time to time (i)Β the amount of interest payable to any Lender on any date shall be computed at the Highest Lawful Rate applicable to such Lender pursuant to thisΒ SectionΒ 12.12 and (ii)Β in respect of any subsequent interest computation period the amount of interest otherwise payable to such Lender would be less than the amount of interest payable to such Lender computed at the Highest Lawful Rate applicable to such Lender, then the amount of interest payable to such Lender in respect of such subsequent interest computation period shall continue to be computed at the Highest Lawful Rate applicable to such Lender until the total amount of interest payable to such Lender shall equal the total amount of interest which would have been payable to such Lender if the total amount of interest had been computed without giving effect to thisΒ SectionΒ 12.12. To the extent that ChapterΒ 303 of the Texas Finance Code is relevant for the purpose of determining the Highest Lawful Rate applicable to a Lender, such Lender elects to determine the applicable rate ceiling under such Chapter by the weekly ceiling from time to time in effect. ChapterΒ 346 of the Texas Finance Code does not apply to the Borrowerβs obligations hereunder.
SectionΒ 12.13 EXCULPATION PROVISIONS. EACH OF THE PARTIES HERETO SPECIFICALLY AGREES THAT IT HAS A DUTY TO READ THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS AND AGREES THAT IT IS CHARGED WITH NOTICE AND KNOWLEDGE OF THE TERMS OF THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS; THAT IT HAS IN FACT READ THIS AGREEMENT AND IS FULLY INFORMED AND HAS FULL NOTICE AND KNOWLEDGE OF THE TERMS, CONDITIONS AND EFFECTS OF THIS AGREEMENT; THAT IT HAS BEEN REPRESENTED BY INDEPENDENT LEGAL COUNSEL OF ITS CHOICE THROUGHOUT THE NEGOTIATIONS PRECEDING ITS EXECUTION OF THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS; AND HAS RECEIVED THE ADVICE OF ITS ATTORNEY IN ENTERING INTO THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS; AND THAT IT RECOGNIZES THAT CERTAIN OF THE TERMS OF THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS RESULT IN ONE PARTY ASSUMING THE LIABILITY INHERENT IN SOME ASPECTS OF THE TRANSACTION AND RELIEVING THE OTHER PARTY OF ITS RESPONSIBILITY FOR SUCH LIABILITY. EACH PARTY HERETO AGREES AND COVENANTS THAT IT WILL NOT CONTEST THE VALIDITY OR ENFORCEABILITY OF ANY EXCULPATORY PROVISION OF THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS ON THE BASIS THAT THE PARTY HAD NO NOTICE OR KNOWLEDGE OF SUCH PROVISION OR THAT THE PROVISION IS NOT βCONSPICUOUS.β
SectionΒ 12.14 Collateral Matters; Swap Agreements. The benefit of the Security Instruments and of the provisions of this Agreement relating to any Collateral securing the Indebtedness shall also extend to and be available to Secured Swap Parties on a pro rata basis (but subject to the terms of the Loan Documents, including, without limitation, provisions thereof relating to the application and priority of payments to the Persons entitled thereto) in respect of any obligations of the a Parent, the Borrower or any of its Subsidiaries which arise under Secured Swap Agreements. No Secured Swap Party shall have any voting rights under any Loan Document as a result of the existence of obligations owed to it under any such Swap Agreements.
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SectionΒ 12.15 No Third Party Beneficiaries. This Agreement, the other Loan Documents, and the agreement of the Lenders to make Loans and the Issuing Bank to issue, amend, renew or extend Letters of Credit hereunder are solely for the benefit of the Borrower, and no other Person (including, without limitation, any Subsidiary of the Borrower, any obligor, contractor, subcontractor, supplier or materialsman) shall have any rights, claims, remedies or privileges hereunder or under any other Loan Document against the Administrative Agent, any other Agent, the Issuing Bank or any Lender for any reason whatsoever. There are no third party beneficiaries.
SectionΒ 12.16 USA Patriot Act Notice. Each Lender hereby notifies the Parent, OP LLC and the Borrower that pursuant to the requirements of the USA Patriot Act (TitleΒ III of Pub.Β L.Β 107-56 (signed into law OctoberΒ 26, 2001)) (the βActβ), it is required to obtain, verify and record information that identifies the Parent, OP LLC and the Borrower, which information includes the name, tax identification and address of the Parent, OP LLC and the Borrower and other information that will allow such Lender to identify the Parent, OP LLC and the Borrower in accordance with the Act.
SectionΒ 12.17 True-Up Loans. Upon the effectiveness of this Agreement, (a)Β each Lender who holds Loans in an aggregate amount less than its Applicable Percentage (after giving effect to this amendment and restatement) of all Loans shall advance new Loans which shall be disbursed to the Administrative Agent and used to repay Loans outstanding to each Lender who holds Loans in an aggregate amount greater than its Applicable Percentage of all Loans, (b)Β each Lenderβs participation in each Letter of Credit shall be automatically adjusted to equal its Applicable Percentage (after giving effect to this amendment and restatement), and (c)Β such other adjustments shall be made as the Administrative Agent shall specify so that each Lenderβs Credit Exposure equals its Applicable Percentage (after giving effect to this amendment and restatement) of the total Credit Exposures of all of the Lenders. The loans and/or adjustments described in this paragraphΒ are referred to herein as the βTrue-Up Loansβ.
SectionΒ 12.18 Restatement; Existing Credit Agreement. The parties hereto agree that this Agreement is a restatement of, and an extension of and amendment to, the Existing Credit Agreement. This Agreement does not in any way constitute a novation of the Existing Credit Agreement, but is an amendment and restatement of same.
SectionΒ 12.19 Acknowledgement and Consent to Bail-In of EEA Financial Institutions. Notwithstanding anything to the contrary in any Loan Document or in any other agreement, arrangement or understanding among any such parties, each party hereto acknowledges that any liability of any EEA Financial Institution arising under any Loan Document, to the extent such liability is unsecured, may be subject to the Write-Down and Conversion Powers of an EEA Resolution Authority and agrees and consents to, and acknowledges and agrees to be bound by:
(a) the application of any Write-Down and Conversion Powers by an EEA Resolution Authority to any such liabilities arising hereunder which may be payable to it by any party hereto that is an EEA Financial Institution; and
(b) the effects of any Bail-In Action on any such liability, including, if applicable:
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(i) a reduction in full or in part or cancellation of any such liability;
(ii) a conversion of all, or a portion of, such liability into shares or other instruments of ownership in such EEA Financial Institution, its parent undertaking, or a bridge institution that may be issued to it or otherwise conferred on it, and that such shares or other instruments of ownership will be accepted by it in lieu of any rights with respect to any such liability under this Agreement or any other Loan Document; or
(iii) the variation of the terms of such liability in connection with the exercise of the Write-Down and Conversion Powers of any EEA Resolution Authority.
SectionΒ 12.20 No Advisory or Fiduciary Responsibility. In connection with all aspects of each transaction contemplated hereby (including in connection with any amendment, waiver or other modification hereof or of any other Loan Document), each of the Parent, OP LLC and the Borrower acknowledges and agrees, and acknowledges its Subsidiariesβ understanding, that: (a)Β (i)Β no fiduciary, advisory or agency relationship between the Parent, OP LLC, the Borrower and their respective Subsidiaries and the Administrative Agent or any Lender is intended to be or has been created in respect of the transactions contemplated hereby or by the other Loan Documents, irrespective of whether the Administrative Agent or any Lender has advised or is advising the Parent, the Borrower or any Subsidiary on other matters; (ii)Β the arranging and other services regarding this Agreement provided by the Administrative Agent and the Lenders are armβs-length commercial transactions between the Parent, the Borrower and their Subsidiaries, on the one hand, and the Administrative Agent and the Lenders, on the other hand; (iii)Β each of the Parent OP LLC andΒ the Borrower has consulted its own legal, accounting, regulatory and tax advisors to the extent that it has deemed appropriate; and (iv)Β each of the Parent, OP LLC and the Borrower is capable of evaluating, and understands and accepts, the terms, risks and conditions of the transactions contemplated hereby and by the other Loan Documents; and (b)Β (i)Β the Administrative Agent and the Lenders each is and has been acting solely as a principal and, except as expressly agreed in writing by the relevant parties, has not been, is not, and will not be acting as an advisor, agent or fiduciary for the Parent, OP LLC, the Borrower or any of their Subsidiaries, or any other Person; (ii)Β neither the Administrative Agent nor the Lenders has any obligation to the Parent, OP LLC, the Borrower or any of their Subsidiaries with respect to the transactions contemplated hereby except those obligations expressly set forth herein and in the other Loan Documents; and (iii)Β the Administrative Agent and the Lenders and their respective Affiliates may be engaged, for their own accounts or the accounts of customers, in a broad range of transactions that involve interests that differ from those of the Parent, OP LLC, the Borrower and their Subsidiaries, and neither the Administrative Agent nor the Lenders has any obligation to disclose any of such interests to the Parent, OP LLC, the Borrower or their respective Subsidiaries. To the fullest extent permitted by Governmental Requirement, each of the Parent, OP LLC and the Borrower hereby waives and releases any claims that it may have against the Administrative Agent and the Lenders with respect to any breach or alleged breach of agency or fiduciary duty in connection with any aspect of any transaction contemplated hereby.
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131
ANNEX I
LIST OF MAXIMUM CREDIT AMOUNTS
AND ELECTED COMMITMENTS
Aggregate Maximum Credit Amounts and
Aggregate Elected Commitment Amounts
Β
Name of Lender |
Β Β | Applicable Percentage |
Β | Β | Maximum Credit Amount |
Β | Β Β | Elected Commitment | Β | |||
Xxxxx Fargo Bank, N.A. |
Β Β | Β | 11.147540984 | %Β | Β | $ | 278,688,524.52 | Β | Β Β | $ | 128,196,721.29 | Β |
Citibank, N.A. |
Β Β | Β | 9.836065574 | %Β | Β | $ | 245,901,639.31 | Β | Β Β | $ | 113,114,754.10 | Β |
JPMorgan Chase Bank, N.A. |
Β Β | Β | 9.836065574 | %Β | Β | $ | 245,901,639.31 | Β | Β Β | $ | 113,114,754.10 | Β |
Royal Bank of Canada |
Β Β | Β | 8.000000000 | %Β | Β | $ | 221,311,475.41 | Β | Β Β | $ | 101,803,278.69 | Β |
Capital One, National Association |
Β Β | Β | 5.573770492 | %Β | Β | $ | 139,344,262.31 | Β | Β Β | $ | 64,098,360.66 | Β |
Compass Bank |
Β Β | Β | 5.573770492 | %Β | Β | $ | 139,344,262.31 | Β | Β Β | $ | 64,098,360.66 | Β |
Canadian Imperial Bank Of Commerce, New York Branch |
Β Β | Β | 5.000000000 | %Β | Β | $ | 139,344,262.31 | Β | Β Β | $ | 64,098,360.66 | Β |
Deutsche Bank AG New York Branch |
Β Β | Β | 5.573770492 | %Β | Β | $ | 139,344,262.31 | Β | Β Β | $ | 64,098,360.66 | Β |
ING Capital LLC |
Β Β | Β | 5.573770492 | %Β | Β | $ | 139,344,262.31 | Β | Β Β | $ | 64,098,360.66 | Β |
Citizens Bank, N.A. |
Β Β | Β | 5.573770492 | %Β | Β | $ | 139,344,262.31 | Β | Β Β | $ | 64,098,360.66 | Β |
U.S. Bank National Association |
Β Β | Β | 5.573770492 | %Β | Β | $ | 139,344,262.31 | Β | Β Β | $ | 64,098,360.66 | Β |
Amegy Bank National Association |
Β Β | Β | 3.278688525 | %Β | Β | $ | 81,967,213.12 | Β | Β Β | $ | 37,704,918.03 | Β |
BOKF, National Association DBA Bank of Texas |
Β Β | Β | 3.278688525 | %Β | Β | $ | 81,967,213.12 | Β | Β Β | $ | 37,704,918.03 | Β |
Branch Banking and Trust Company |
Β Β | Β | 3.278688525 | %Β | Β | $ | 81,967,213.12 | Β | Β Β | $ | 37,704,918.03 | Β |
Comerica Bank |
Β Β | Β | 3.278688525 | %Β | Β | $ | 81,967,213.12 | Β | Β Β | $ | 37,704,918.03 | Β |
Credit Suisse AG, Cayman Islands Branch |
Β Β | Β | 3.278688525 | %Β | Β | $ | 81,967,213.12 | Β | Β Β | $ | 37,704,918.03 | Β |
Regions Bank |
Β Β | Β | 3.278688525 | %Β | Β | $ | 81,967,213.12 | Β | Β Β | $ | 37,704,918.03 | Β |
Iberiabank |
Β Β | Β | 1.639344262 | %Β | Β | $ | 40,983,606.56 | Β | Β Β | $ | 18,852,459.02 | Β |
TOTAL |
Β Β | Β | 100.00 | %Β | Β | $ | 2,500,000,000.00 | Β | Β Β | $ | 1,150,000,000.00 | Β |
Β
Annex I - 1
EXHIBIT A
FORM OF NOTE
Β
$[Β Β Β Β ],000,000.00 | Β | [ | Β Β | ], 201Β Β Β Β |
FOR VALUE RECEIVED, Oasis Petroleum North America LLC, a Delaware limited liability company (the βBorrowerβ) hereby promises to pay [Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β ] (the βLenderβ), at the principal office of Xxxxx Fargo Bank, N.A., as administrative agent (the βAdministrative Agentβ), the principal sum of [Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β ] Dollars ($[Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β ]) (or such lesser amount as shall equal the aggregate unpaid principal amount of the Loans made by the Lender to the Borrower under the Credit Agreement, as hereinafter defined), in lawful money of the United States of America and in immediately available funds, on the dates and in the principal amounts provided in the Credit Agreement, and to pay interest on the unpaid principal amount of each such Loan, at such office, in like money and funds, for the period commencing on the date of such Loan until such Loan shall be paid in full, at the rates per annum and on the dates provided in the Credit Agreement.
The date, amount, Type, interest rate, Interest Period and maturity of each Loan made by the Lender to the Borrower, and each payment made on account of the principal thereof, shall be recorded by the Lender on its books and, prior to any transfer of this Note, may be endorsed by the Lender on the schedules attached hereto or any continuation thereof or on any separate record maintained by the Lender. Failure to make any such notation or to attach a schedule shall not affect any Lenderβs or the Borrowerβs rights or obligations in respect of such Loans or affect the validity of such transfer by any Lender of this Note.
This Note is one of the Notes referred to in the Second Amended and Restated Credit Agreement dated as of AprilΒ 5, 2013 among the Borrower, the Administrative Agent, the other Credit Parties party thereto and the other agents and lenders signatory thereto (including the Lender), and evidences Loans made by the Lender thereunder (such Second Amended and Restated Credit Agreement as the same may be amended, supplemented or restated from time to time, the βCredit Agreementβ). Capitalized terms used in this Note have the respective meanings assigned to them in the Credit Agreement.
This Note is issued pursuant to, and is subject to the terms and conditions set forth in, the Credit Agreement and is entitled to the benefits provided for in the Credit Agreement and the other Loan Documents. The Credit Agreement provides for the acceleration of the maturity of this Note upon the occurrence of certain events, for prepayments of Loans upon the terms and conditions specified therein and other provisions relevant to this Note.
THIS NOTE SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.
Β
OASIS PETROLEUM NORTH AMERICA LLC | ||
By: | Β | Β |
Name: | Β | Β |
Title: | Β | Β |
Β
Exhibit A - 1
EXHIBIT B
FORM OF BORROWING REQUEST
[Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β ], 201[ ]
Oasis Petroleum North America LLC, a Delaware limited liability company (the βBorrowerβ), pursuant to SectionΒ 2.03 of the Second Amended and Restated Credit Agreement dated as of AprilΒ 5, 2013 (together with all amendments, restatements, supplements or other modifications thereto, the βCredit Agreementβ) among the Borrower, Oasis Petroleum Inc., a Delaware corporation (the βParentβ), Oasis Petroleum LLC, a Delaware limited liability company (βOP LLCβ), Xxxxx Fargo Bank, N.A., as Administrative Agent and the other agents and lenders (the βLendersβ) which are or become parties thereto (unless otherwise defined herein, each capitalized term used herein is defined in the Credit Agreement), hereby request a Borrowing as follows:
(i) Aggregate amount of the requested Borrowing is $[Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β ];
(ii) Date of such Borrowing is [Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β ], 201[Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β ];
(iii) Requested Borrowing is to be [an ABR Borrowing] [a Eurodollar Borrowing];
(iv) In the case of a Eurodollar Borrowing, the initial Interest Period applicable thereto is [Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β ];
(v) Amount of Borrowing Base in effect on the date hereof is $[Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β ];
(vi) Amount of the Aggregate Elected Commitment Amounts on the date hereof is $[Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β ];
(vii) Total Revolving Credit Exposures on the date hereof (i.e., outstanding principal amount of Loans and total LC Exposure) is $[Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β ]; and
(viii) Pro forma total Revolving Credit Exposures (giving effect to the requested Borrowing) is $[Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β ];
(ix) At the time of and immediately after giving effect to the requested Borrowing, the Borrower together with the other Credit Parties shall not have any cash or cash equivalents (other than cash collateral) in excess of $100,000,000 in the aggregate (other than (i)Β any cash set aside to pay royalty obligations of the Credit Parties then due and owing to unaffiliated third parties and for which the Credit Parties have issued checks or have initiated wires or ACH transfers (or will issue checks or initiate wires or ACH transfers within 24 hours of such time) in order to pay, (ii)Β any cash set aside to pay in the ordinary course of business amounts (other than royalty obligations) of the Credit Parties then due and owing to unaffiliated third parties and for which the Credit Parties have issued checks or have initiated wires or ACH transfers in order to pay and (iii)Β any cash of the Credit Parties constituting purchase price deposits held in escrow by an unaffiliated third party pursuant to a binding and enforceable purchase and sale agreement with an unaffiliated third party containing customary provisions regarding the payment and refunding of such deposits;) and
Β
Exhibit B - 1
(x) Location and number of the Borrowerβs account to which funds are to be disbursed, which shall comply with the requirements ofΒ SectionΒ 2.05 of the Credit Agreement, is as follows:
[Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β ]
[Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β ]
[Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β ]
[Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β ]
[Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β ]
Β
Exhibit B - 2
The undersigned certifies that he/she is the [Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β ] of the Borrower, and that as such he/she is authorized to execute this certificate on behalf of the Borrower. The undersigned further certifies (only in his/her capacity as an officer and not individually), represents and warrants on behalf of the Borrower that the Borrower is entitled to receive the requested Borrowing under the terms and conditions of the Credit Agreement.
Β
OASIS PETROLEUM NORTH AMERICA LLC |
By: | Β | Β |
Name: | Β | Β |
Title: | Β | Β |
Β
Exhibit B - 3
EXHIBIT C
FORM OF INTEREST ELECTION REQUEST
[Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β ] [Β Β Β Β ], 201[Β Β Β Β ]
Oasis Petroleum North America LLC, a Delaware limited liability company (the βBorrowerβ), pursuant toΒ SectionΒ 2.04 of the Second Amended and Restated Credit Agreement dated as of AprilΒ 5, 2013 (together with all amendments, restatements, supplements or other modifications thereto, the βCredit Agreementβ) among the Borrower, Xxxxx Fargo Bank, N.A., as Administrative Agent, the other Credit Parties party thereto and the other agents and lenders (the βLendersβ) which are or become parties thereto (unless otherwise defined herein, each capitalized term used herein is defined in the Credit Agreement), hereby makes an Interest Election Request as follows:
(i) The Borrowing to which this Interest Election Request applies, and if different options are being elected with respect to different portions thereof, the portions thereof to be allocated to each resulting Borrowing (in which case the information specified pursuant to (iii)Β and (iv)Β below shall be specified for each resulting Borrowing) is [Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β ];
(ii) The effective date of the election made pursuant to this Interest Election Request is [Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β ], 201[Β Β Β Β ];[and]
(iii) The resulting Borrowing is to be [an ABR Borrowing] [a Eurodollar Borrowing][; and]
(iv) [[If the resulting Borrowing is a Eurodollar Borrowing] The Interest Period applicable to the resulting Borrowing after giving effect to such election is [Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β ].]
The undersigned certifies (only in his capacity as an officer and not individually) that he/she is the [Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β ] of the Borrower, and that as such he/she is authorized to execute this certificate on behalf of the Borrower. The undersigned further certifies (only in his/her capacity as an officer and not individually), represents and warrants on behalf of the Borrower that the Borrower is entitled to receive the requested continuation or conversion under the terms and conditions of the Credit Agreement.
Β
OASIS PETROLEUM NORTH AMERICA LLC |
By: | Β | Β |
Name: | Β | Β |
Title: | Β | Β |
Β
Exhibit C - 1
EXHIBIT D
FORM OF COMPLIANCE CERTIFICATE
The undersigned hereby certifies (only in his/her capacity as an officer and not individually) that he/she is the [Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β ] of Oasis Petroleum Inc., a Delaware corporation (the βParentβ), the [Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β ] of Oasis Petroleum LLC, a Delaware limited liability company (βOP LLCβ) and the [Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β ] of Oasis Petroleum North America LLC, a Delaware limited liability company (the βBorrowerβ) and that as such he/she is authorized to execute this certificate on behalf of the Parent, OP LLC and the Borrower, respectively. With reference to the Second Amended and Restated Credit Agreement dated as of AprilΒ 5, 2013 (together with all amendments, restatements, supplements or other modifications thereto being the βAgreementβ) among the Parent, the Borrower, Xxxxx Fargo Bank, N.A., as Administrative Agent, the other Credit Parties party thereto and the other agents and lenders (the βLendersβ) which are or become a party thereto, and such Lenders, the undersigned represents and warrants as follows (each capitalized term used herein having the same meaning given to it in the Agreement unless otherwise specified):
(a) The representations and warranties of the Parent, OP LLC and the Borrower contained in ArticleΒ VII of the Agreement and in the Loan Documents and otherwise made in writing by or on behalf of the Parent and the Borrower pursuant to the Agreement and the Loan Documents were true and correct when made, and are repeated at and as of the time of delivery hereof and are true and correct in all material respects (or, if already qualified by materiality, Material Adverse Effect or a similar qualification, true and correct in all respects) at and as of the time of delivery hereof, except to the extent such representations and warranties are expressly limited to an earlier date or the Majority Lenders have expressly consented in writing to the contrary.
(b) The Parent and the Borrower have performed and complied with all agreements and conditions contained in the Agreement and in the Loan Documents required to be performed or complied with by it prior to or at the time of delivery hereof [or specify default and describe].
(c) Since DecemberΒ 31, 2012, no change has occurred, either in any case or in the aggregate, in the condition, financial or otherwise, of the Parent, OP LLC, the Borrower or any Subsidiary which could reasonably be expected to have a Material Adverse Effect [or specify event].
(d) There exists no Default or Event of Default [or specify Default and describe].
(e) Attached hereto are the detailed computations necessary to determine whether the Borrower is in compliance withΒ SectionΒ 9.01 as of the end of the [fiscal quarter][fiscal year] ending [Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β ].
Β
Exhibit D - 1
EXECUTED AND DELIVERED this [Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β ] day of [Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β ].
Β
By: | Β | Β |
Name: | Β | Β |
Title: | Β | Β |
OASIS PETROLEUM LLC |
By: | Β | Β |
Name: | Β | Β |
Title: | Β | Β |
OASIS PETROLEUM NORTH AMERICA LLC |
By: | Β | Β |
Name: | Β | Β |
Title: | Β | Β |
Β
Exhibit D - 2
EXHIBIT E-1
SECURITY INSTRUMENTS
Β
1) | Second Amended and Restated Guaranty and Security Agreement dated as of AprilΒ 5, 2013 among the Borrower, and OP LLC, the Parent and the other Guarantors as Grantors, and the Administrative Agent. |
Β
2) | Financing Statements in respect of item 1. |
Β
3) | Second Amended and Restated Mortgage-Collateral Real Estate Mortgage, Deed of Trust, Assignment of As-Extracted Collateral, Security Agreement and Financing Statement from the Borrower to Xxxxx Xxxxxx, as Trustee, for the benefit of the Administrative Agent and the other Secured Parties, dated AprilΒ 5, 2013 (Montana and North Dakota). |
Β
Exhibit X-0 - 0
XXXXXXX X-0
FORM OF
SECOND AMENDED AND RESTATED GUARANTY AND SECURITY AGREEMENT
[attached]
Β
Exhibit E-3 - 1
EXHIBIT F
FORM OF
ASSIGNMENT AND ASSUMPTION
This Assignment and Assumption (the βAssignment and Assumptionβ) is dated as of the Effective Date set forth below and is entered into by and between [Insert name of Assignor] (the βAssignorβ) and [Insert name of Assignee] (the βAssigneeβ). Capitalized terms used but not defined herein shall have the meanings given to them in the Credit Agreement identified below (as amended, the βCredit Agreementβ), receipt of a copy of which is hereby acknowledged by the Assignee. The Standard Terms and Conditions set forth in AnnexΒ 1 attached hereto are hereby agreed to and incorporated herein by reference and made a part of this Assignment and Assumption as if set forth herein in full.
For an agreed consideration, the Assignor hereby irrevocably sells and assigns to the Assignee, and the Assignee hereby irrevocably purchases and assumes from the Assignor, subject to and in accordance with the Standard Terms and Conditions and the Credit Agreement, as of the Effective Date inserted by the Administrative Agent as contemplated below (i)Β all of the Assignorβs rights and obligations in its capacity as a Lender under the Credit Agreement and any other documents or instruments delivered pursuant thereto to the extent related to the amount and percentage interest identified below of all of such outstanding rights and obligations of the Assignor under the respective facilities identified below (including any letters of credit and guarantees included in such facilities) and (ii)Β to the extent permitted to be assigned under applicable law, all claims, suits, causes of action and any other right of the Assignor (in its capacity as a Lender) against any Person, whether known or unknown, arising under or in connection with the Credit Agreement, any other documents or instruments delivered pursuant thereto or the loan transactions governed thereby or in any way based on or related to any of the foregoing, including contract claims, tort claims, malpractice claims, statutory claims and all other claims at law or in equity related to the rights and obligations sold and assigned pursuant to clauseΒ (i) above (the rights and obligations sold and assigned pursuant to clausesΒ (i) and (ii)Β above being referred to herein collectively as the βAssigned Interestβ). Such sale and assignment is without recourse to the Assignor and, except as expressly provided in this Assignment and Assumption, without representation or warranty by the Assignor.
Β
1.Β Β Β Β Β Β Assignor: |
Β Β | Β |
Β Β | |
2.Β Β Β Β Β Β Assignee: |
Β Β | Β |
Β Β | |
Β Β | [and is an Affiliate/Approved Fund of [identify Lender]1] | |||
3.Β Β Β Β Β Β Borrower: |
Β Β | Oasis Petroleum North America LLC | ||
4.Β Β Β Β Β Β Administrative Agent: |
Β Β | Xxxxx Fargo Bank, N.A., as the administrative agent under the Credit Agreement |
Β
Β
1Β | Select as applicable. |
Β
Exhibit F - 1
5.Β Β Β Β Β Β Credit Agreement: |
Β Β | The Second Amended and Restated Credit Agreement dated as of AprilΒ 5, 2013 among Oasis Petroleum North America LLC, the Lenders parties thereto, Xxxxx Fargo Bank, N.A., as Administrative Agent the other Credit Parties party thereto, and the other agents parties thereto. | ||
6. Assigned Interest: | Β Β |
Β
Commitment Assigned |
Β Β | Aggregate Amount of for all Lenders |
Β Β | Amount of Commitment/Loans Assigned |
Β Β | Percentage Assigned of Commitment/Loans2 |
Β Β | $ | Β Β | $ | Β Β | % | |
Β Β | $ | Β Β | $ | Β Β | % | |
Β Β | $ | Β Β | $ | Β Β | % |
Β
7.Β Β Β Β Β Β EffectiveΒ Date: |
Β Β | ___________ __, 201_ [TO BE INSERTED BY ADMINISTRATIVE AGENT AND WHICH SHALL BE THE EFFECTIVE DATE OF RECORDATION OF TRANSFER IN THE REGISTER THEREFOR.] |
The terms set forth in this Assignment and Assumption are hereby agreed to:
Β
ASSIGNOR | ||
[NAME OF ASSIGNOR] |
By: | Β | Β |
Name: | Β | Β |
Title: | Β | Β |
ASSIGNEE | ||
[NAME OF ASSIGNEE] |
By: | Β | Β |
Name: | Β | Β |
Title: | Β | Β |
Β
2Β | Set forth, to at least 9 decimals, as a percentage of the Commitment/Loans of all Lenders thereunder. |
Β
Exhibit F - 2
Consented to and Accepted: | ||
XXXXX FARGO BANK, N.A., Β Β Β Β Β Β Β Β as Administrative Agent |
By: | Β | Β |
Name: | Β | Β |
Title: | Β | Β |
By: | Β | Β |
Name: | Β | Β |
Title: | Β | Β |
Consented to: | ||
OASIS PETROLEUM NORTH AMERICA LLC |
By: | Β | Β |
Name: | Β | Β |
Title: | Β | Β |
Β
Exhibit F - 3
ANNEX 1
STANDARD TERMS AND CONDITIONS FOR
ASSIGNMENT AND ASSUMPTION
1. Representations and Warranties.
1.1 Assignor. The Assignor (a)Β represents and warrants that (i)Β it is the legal and beneficial owner of the Assigned Interest, (ii)Β the Assigned Interest is free and clear of any lien, encumbrance or other adverse claim and (iii)Β it has full power and authority, and has taken all action necessary, to execute and deliver this Assignment and Assumption and to consummate the transactions contemplated hereby; and (b)Β assumes no responsibility with respect to (i)Β any statements, warranties or representations made in or in connection with the Credit Agreement or any other Loan Document, (ii)Β the execution, legality, validity, enforceability, genuineness, sufficiency or value of the Loan Documents or any collateral thereunder, (iii)Β the financial condition of the Borrower, any of its Subsidiaries or Affiliates or any other Person obligated in respect of any Loan Document or (iv)Β the performance or observance by the Borrower, any of its Subsidiaries or Affiliates or any other Person of any of their respective obligations under any Loan Document.
1.2. Assignee. The Assignee (a)Β represents and warrants that (i)Β it has full power and authority, and has taken all action necessary, to execute and deliver this Assignment and Assumption and to consummate the transactions contemplated hereby and to become a Lender under the Credit Agreement, (ii)Β it satisfies the requirements, if any, specified in the Credit Agreement that are required to be satisfied by it in order to acquire the Assigned Interest and become a Lender, (iii)Β from and after the Effective Date, it shall be bound by the provisions of the Credit Agreement as a Lender thereunder and, to the extent of the Assigned Interest, shall have the obligations of a Lender thereunder, (iv)Β it has received a copy of the Credit Agreement, together with copies of the most recent financial statements delivered pursuant toΒ SectionΒ 8.01 thereof, as applicable, and such other documents and information as it has deemed appropriate to make its own credit analysis and decision to enter into this Assignment and Assumption and to purchase the Assigned Interest on the basis of which it has made such analysis and decision independently and without reliance on the Administrative Agent or any other Lender, and (v)Β if it is a Foreign Lender, attached to the Assignment and Assumption is any documentation required to be delivered by it pursuant to the terms of the Credit Agreement, duly completed and executed by the Assignee; and (b)Β agrees that (i)Β it will, independently and without reliance on the Administrative Agent, the Assignor or any other Lender, and based on such documents and information as it shall deem appropriate at the time, continue to make its own credit decisions in taking or not taking action under the Loan Documents, and (ii)Β it will perform in accordance with their terms all of the obligations which by the terms of the Loan Documents are required to be performed by it as a Lender.
2. Payments. From and after the Effective Date, the Administrative Agent shall make all payments in respect of the Assigned Interest (including payments of principal, interest, fees and other amounts) to the Assignor for amounts which have accrued to but excluding the Effective Date and to the Assignee for amounts which have accrued from and after the Effective Date.
Β
Exhibit F - 4
3. General Provisions. This Assignment and Assumption shall be binding upon, and inure to the benefit of, the parties hereto and their respective successors and assigns. This Assignment and Assumption may be executed in any number of counterparts, which together shall constitute one instrument. Delivery of an executed counterpart of a signature page of this Assignment and Assumption by telecopy shall be effective as delivery of a manually executed counterpart of this Assignment and Assumption. This Assignment and Assumption shall be governed by, and construed in accordance with, the law of the State of Texas.
Β
Exhibit F - 5
EXHIBIT G
FORM OF
ELECTED COMMITMENT INCREASE CERTIFICATE
[Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β ], 20[Β Β Β Β ]
Β
To: | Xxxxx Fargo Bank, N.A., |
Β Β | as Administrative Agent |
The Borrower, the Administrative Agent, the other Credit Parties party thereto and certain Lenders and other agents have heretofore entered into a Second Amended and Restated Credit Agreement, dated as of AprilΒ 5, 2013 (as amended, restated, supplemented or otherwise modified from time to time, the βCredit Agreementβ). Capitalized terms not otherwise defined herein shall have the meaning given to such terms in the Credit Agreement.
This Elected Commitment Increase Certificate is being delivered pursuant toΒ SectionΒ 2.06(c) of the Credit Agreement.
Please be advised that the undersigned Lender has agreed (a)Β to increase its Elected Commitment under the Credit Agreement effective [Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β ], 20[Β Β Β Β ] from $[Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β ] to $[Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β ] and (b)Β that it shall continue to be a party in all respects to the Credit Agreement and the other Loan Documents.
Β
Very truly yours, | ||
OASIS PETROLEUM NORTH AMERICA LLC, a Delaware limited liability company |
By: | Β | Β |
Name: | Β | Β |
Title: | Β | Β |
Β
Exhibit G - 1
Accepted and Agreed: | ||
XXXXX FARGO BANK, N.A., Β Β Β Β as Administrative Agent |
By: | Β | Β |
Name: | Β | Β |
Title: | Β | Β |
Accepted and Agreed: | ||
[Name of Increasing Lender] |
By: | Β | Β |
Name: | Β | Β |
Title: | Β | Β |
Β
Exhibit G - 2
EXHIBIT H
FORM OF
ADDITIONAL LENDER CERTIFICATE
[Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β ], 20[Β Β Β Β ]
Β
To: | Xxxxx Fargo Bank, N.A., |
as Administrative Agent
The Borrower, the Administrative Agent, the other Credit Parties party thereto and certain Lenders and other agents have heretofore entered into a Second Amended and Restated Credit Agreement, dated as of AprilΒ 5, 2013 (as amended, restated, supplemented or otherwise modified from time to time, the βCredit Agreementβ). Capitalized terms not otherwise defined herein shall have the meaning given to such terms in the Credit Agreement.
This Additional Lender Certificate is being delivered pursuant toΒ SectionΒ 2.06(c) of the Credit Agreement.
Please be advised that the undersigned Additional Lender has agreed (a)Β to become a Lender under the Credit Agreement effective [Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β ], 20[Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β ] with a Maximum Aggregate Credit Amount of $[Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β ] and an Elected Commitment of $[Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β ] and (b)Β that it shall be a party in all respects to the Credit Agreement and the other Loan Documents.
This Additional Lender Certificate is being delivered to the Administrative Agent together with (i)Β if the Additional Lender is a Foreign Lender, any documentation required to be delivered by such Additional Lender pursuant toΒ SectionΒ 5.03(e) of the Credit Agreement, duly completed and executed by the Additional Lender, and (ii)Β an Administrative Questionnaire in the form supplied by the Administrative Agent, duly completed by the Additional Lender. The [Borrower/Additional Lender] shall pay the fee payable to the Administrative Agent pursuant toΒ SectionΒ 2.06(c)(ii)(G) of the Credit Agreement.
Β
Very truly yours, | ||
OASIS PETROLEUM NORTH AMERICA LLC, a Delaware limited liability company | ||
By: | Β | Β |
Name: | Β | Β |
Title: | Β | Β |
Β
Exhibit H - 1
Accepted and Agreed: | ||
XXXXX FARGO BANK, N.A., as Administrative Agent | ||
By: | Β | Β |
Name: | Β | Β |
Title: | Β | Β |
Accepted and Agreed: | ||
[Name of Increasing Lender] | ||
By: | Β | Β |
Name: | Β | Β |
Title: | Β | Β |
Β
Exhibit H - 2
EXHIBIT I-1
FORM OF
U.S. TAX COMPLIANCE CERTIFICATE
(FOREIGN LENDERS; NOT PARTNERSHIPS)
(For Foreign Lenders That Are Not Partnerships ForΒ U.S. Federal Income Tax Purposes)
Reference is hereby made to the Second Amended and Restated Credit Agreement dated as of AprilΒ 5, 2013 (as amended, supplemented or otherwise modified from time to time, the βCredit Agreementβ), among Oasis Petroleum North America LLC, a Delaware limited liability company, as Borrower, Xxxxx Fargo Bank, N.A., as Administrative Agent, the other Credit Parties party thereto, the financial institutions from time to time party thereto as Lenders, and the other Agents party thereto.
Pursuant to the provisions ofΒ SectionΒ 5.03 of the Credit Agreement, the undersigned hereby certifies that (i)Β it is the sole record and beneficial owner of the Loan(s) (as well as any Note(s) evidencing such Loan(s)) in respect of which it is providing this certificate, (ii)Β it is not a bank within the meaning of SectionΒ 881(c)(3)(A) of the Code, (iii)Β it is not a ten percent shareholder of the Borrower within the meaning of SectionΒ 871(h)(3)(B) of the Code and (iv)Β it is not a controlled foreign corporation related to the Borrower as described in SectionΒ 881(c)(3)(C) of the Code.
The undersigned has furnished the Administrative Agent and the Borrower with a certificate of its non-U.S. Person status on IRS Form W-8BEN (or IRS Form W-8BEN-E, as applicable). By executing this certificate, the undersigned agrees that (1)Β if the information provided on this certificate changes, the undersigned shall promptly so inform the Borrower and the Administrative Agent, and (2)Β the undersigned shall have at all times furnished the Borrower and the Administrative Agent with a properly completed and currently effective certificate in either the calendar year in which each payment is to be made to the undersigned, or in either of the two calendar years preceding such payments.
Unless otherwise defined herein, terms defined in the Credit Agreement and used herein shall have the meanings given to them in the Credit Agreement.
Β
[NAME OF LENDER] | ||
By: | Β | Β |
Name: | Β | Β |
Title: | Β | Β |
Date:Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β , 20[Β Β Β Β ] |
Β
Β
Exhibit I-1 - 1
EXHIBIT I-2
FORM OF
U.S. TAX COMPLIANCE CERTIFICATE
(FOREIGN PARTICIPANTS; NOT PARTNERSHIPS)
(For Foreign Participants That Are Not Partnerships ForΒ U.S. Federal Income Tax Purposes)
Reference is hereby made to the Second Amended and Restated Credit Agreement dated as of AprilΒ 5, 2013 (as amended, supplemented or otherwise modified from time to time, the βCredit Agreementβ), among Oasis Petroleum North America LLC, a Delaware limited liability company, as Borrower, Xxxxx Fargo Bank, N.A., as Administrative Agent, the other Credit Parties party thereto, the financial institutions from time to time party thereto as Lenders, and the other Agents party thereto.
Pursuant to the provisions ofΒ SectionΒ 5.03 of the Credit Agreement, the undersigned hereby certifies that (i)Β it is the sole record and beneficial owner of the participation in respect of which it is providing this certificate, (ii)Β it is not a bank within the meaning of SectionΒ 881(c)(3)(A) of the Code, (iii)Β it is not a ten percent shareholder of the Borrower within the meaning of SectionΒ 871(h)(3)(B) of the Code, and (iv)Β it is not a controlled foreign corporation related to the Borrower as described in SectionΒ 881(c)(3)(C) of the Code.
The undersigned has furnished its participating Lender with a certificate of its non-U.S. Person status on IRS Form W-8BEN (or IRS Form W-8BEN-E, as applicable). By executing this certificate, the undersigned agrees that (1)Β if the information provided on this certificate changes, the undersigned shall promptly so inform such Lender in writing, and (2)Β the undersigned shall have at all times furnished such Lender with a properly completed and currently effective certificate in either the calendar year in which each payment is to be made to the undersigned, or in either of the two calendar years preceding such payments.
Unless otherwise defined herein, terms defined in the Credit Agreement and used herein shall have the meanings given to them in the Credit Agreement.
Β
[NAME OF PARTICIPANT] | ||
By: | Β | Β |
Name: | Β | Β |
Title: | Β | Β |
Date:Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β , 20[Β Β Β Β ] |
Β
Exhibit I-2 - 1
EXHIBIT I-3
FORM OF
U.S. TAX COMPLIANCE CERTIFICATE
(FOREIGN PARTICIPANTS; PARTNERSHIPS)
(For Foreign Participants That Are Partnerships ForΒ U.S. Federal Income Tax Purposes)
Reference is hereby made to the Second Amended and Restated Credit Agreement dated as of AprilΒ 5, 2013 (as amended, supplemented or otherwise modified from time to time, the βCredit Agreementβ), among Oasis Petroleum North America LLC, a Delaware limited liability company, as Borrower, Xxxxx Fargo Bank, N.A., as Administrative Agent, the other Credit Parties party thereto, the financial institutions from time to time party thereto as Lenders, and the other Agents party thereto.
Pursuant to the provisions ofΒ SectionΒ 5.03 of the Credit Agreement, the undersigned hereby certifies that (i)Β it is the sole record owner of the participation in respect of which it is providing this certificate, (ii)Β its direct or indirect partners/members are the sole beneficial owners of such participation, (iii)Β with respect such participation, neither the undersigned nor any of its direct or indirect partners/members is a bank extending credit pursuant to a loan agreement entered into in the ordinary course of its trade or business within the meaning of SectionΒ 881(c)(3)(A) of the Code, (iv)Β none of its direct or indirect partners/members is a ten percent shareholder of the Borrower within the meaning of SectionΒ 871(h)(3)(B) of the Code and (v)Β none of its direct or indirect partners/members is a controlled foreign corporation related to the Borrower as described in SectionΒ 881(c)(3)(C) of the Code.
The undersigned has furnished its participating Lender with IRS Form W-8IMY accompanied by one of the following forms from each of its partners/members that is claiming the portfolio interest exemption: (i)Β an IRS Form W-8BEN (or IRS Form W-8BEN-E, as applicable) or (ii)Β an IRS Form W-8IMY accompanied by an IRS Form W-8BEN (or IRS Form W-8BEN-E, as applicable) from each of such partnerβs/memberβs beneficial owners that is claiming the portfolio interest exemption. By executing this certificate, the undersigned agrees that (1)Β if the information provided on this certificate changes, the undersigned shall promptly so inform such Lender and (2)Β the undersigned shall have at all times furnished such Lender with a properly completed and currently effective certificate in either the calendar year in which each payment is to be made to the undersigned, or in either of the two calendar years preceding such payments.
Unless otherwise defined herein, terms defined in the Credit Agreement and used herein shall have the meanings given to them in the Credit Agreement.
Β
[NAME OF PARTICIPANT] | ||
By: | Β | Β |
Name: | Β | Β |
Title: | Β | Β |
Date:Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β , 20[Β Β Β Β ] |
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Exhibit I-3 - 1
EXHIBIT I-4
FORM OF
U.S. TAX COMPLIANCE CERTIFICATE
(FOREIGN LENDERS; PARTNERSHIPS)
(For Foreign Lenders That Are Partnerships ForΒ U.S. Federal Income Tax Purposes)
Reference is hereby made to the Second Amended and Restated Credit Agreement dated as of AprilΒ 5, 2013 (as amended, supplemented or otherwise modified from time to time, the βCredit Agreementβ), among Oasis Petroleum North America LLC, a Delaware limited liability company, as Borrower, Xxxxx Fargo Bank, N.A., as Administrative Agent, the other Credit Parties party thereto, the financial institutions from time to time party thereto as Lenders, and the other Agents party thereto.
Pursuant to the provisions ofΒ SectionΒ 5.03 of the Credit Agreement, the undersigned hereby certifies that (i)Β it is the sole record owner of the Loan(s) (as well as any Note(s) evidencing such Loan(s)) in respect of which it is providing this certificate, (ii)Β its direct or indirect partners/members are the sole beneficial owners of such Loan(s) (as well as any Note(s) evidencing such Loan(s)), (iii)Β with respect to the extension of credit pursuant to this Credit Agreement or any other Loan Document, neither the undersigned nor any of its direct or indirect partners/members is a bank extending credit pursuant to a loan agreement entered into in the ordinary course of its trade or business within the meaning of SectionΒ 881(c)(3)(A) of the Code, (iv)Β none of its direct or indirect partners/members is a ten percent shareholder of the Borrower within the meaning of SectionΒ 871(h)(3)(B) of the Code and (v)Β none of its direct or indirect partners/members is a controlled foreign corporation related to the Borrower as described in SectionΒ 881(c)(3)(C) of the Code.
The undersigned has furnished the Administrative Agent and the Borrower with IRS Form W-8IMY accompanied by one of the following forms from each of its partners/members that is claiming the portfolio interest exemption: (i)Β an IRS Form W-8BEN (or IRS Form W-8BEN-E, as applicable) or (ii)Β an IRS Form W-8IMY accompanied by an IRS Form W-8BEN (or IRS Form W-8BEN-E, as applicable) from each of such partnerβs/memberβs beneficial owners that is claiming the portfolio interest exemption. By executing this certificate, the undersigned agrees that (1)Β if the information provided on this certificate changes, the undersigned shall promptly so inform the Borrower and the Administrative Agent, and (2)Β the undersigned shall have at all times furnished the Borrower and the Administrative Agent with a properly completed and currently effective certificate in either the calendar year in which each payment is to be made to the undersigned, or in either of the two calendar years preceding such payments. Unless otherwise defined herein, terms defined in the Credit Agreement and used herein shall have the meanings given to them in the Credit Agreement.
Β
[NAME OF LENDER] | ||
By: | Β | Β |
Name: | Β | Β |
Title: | Β | Β |
Date:Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β , 20[Β Β Β Β ] |
Β
Β
Exhibit I-4 - 1