CONSENT AND FOURTH AMENDMENT TO THE STOCKHOLDERS AGREEMENT

EX-10.17 9 d942692dex1017.htm EX-10.17 EX-10.17

Exhibit 10.17

CONSENT AND FOURTH AMENDMENT TO

THE STOCKHOLDERS AGREEMENT

This CONSENT AND FOURTH AMENDMENT (this “Consent and Amendment”) TO THE STOCKHOLDERS AGREEMENT dated as of November 17, 2011, as amended by Amendment No. 1 thereto dated as of December 22, 2011, as amended by Amendment No. 2 thereto dated as of January 31, 2012, as amended by Section 2 of the Waiver Agreement dated August 16, 2012 (as so amended, the “Stockholders Agreement”), by and among Plains Offshore Operations Inc., a Delaware corporation (the “Company”), Freeport-McMoRan Oil & Gas LLC (formerly Plains Exploration & Production Company), a Delaware limited liability company (“FM O&G”), and PXP Resources LLC, a Delaware limited liability company (“PXP Resources”), and each investor named in Schedule A thereto (collectively, the “Investors”) is made and entered into as of January 15, 2014 by and among the Company, FM O&G, PXP Resources and the undersigned Investors in accordance with Section 3.06 of the Stockholders Agreement. All capitalized terms used but not otherwise defined herein shall have the meaning set forth in the Stockholders Agreement.

WHEREAS, pursuant to the Notice of Intention to Issue Additional Equity dated November 15, 2013, the Investors have agreed to fund their Pro Rata Percentages of certain Cost Overruns through the purchase of shares of Preferred Stock together with non-detachable Warrants to be issued by the Company in accordance with Section 2.04 of the Stockholders Agreement on January 15, 2014 (the “Equity Funding”);

WHEREAS, the Company, FM O&G, PXP Resources and the undersigned Investors, whose consent or approval would constitute Majority Preferred Approval (as defined in the Stockholders Agreement), desire to amend the Stockholders Agreement to reflect the Equity Funding and to approve the amendment (the “COD Amendment”) to the Certificate of Designation of 8.0% Convertible Preferred Stock of the Company dated November 17, 2011, in the form attached as Exhibit A hereto, increasing the number of shares designated as “8.0% Convertible Preferred Stock”.

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

 

1) Amendment to the Stockholders Agreement. Upon the consummation of the Equity Funding, Schedule A to the Stockholders Agreement is hereby amended by deleting the table entirely and inserting in its place the table attached as Exhibit B hereto.

 

2) COD Amendment. PXP Resources and the undersigned Investors hereby approve the adoption of the COD Amendment and authorize and direct the officers of the Company to take all such further actions, on behalf of the Company, as they may deem necessary, desirable or convenient to carry out the intent of the foregoing approval, including the filing of the COD Amendment with the Secretary of State of the State of Delaware and the execution by any one of them, on behalf of the Company, of all other and further agreements, requests, certificates, instruments or documents, and the doing of all such further acts, necessary or appropriate to reflect or effect the foregoing.


3) Miscellaneous. The provisions of Sections 3.01 (Counterparts), 3.03 (Governing Law) and 3.04 (Waiver of Jury Trial) of the Stockholders Agreement shall apply, mutatis mutandis, to this Consent and Amendment.

 

4) Full Force and Effect. Except as amended hereby, each of the Company, FM O&G, PXP Resources and each of the Investors acknowledges and agrees that all provisions of the Stockholders Agreement remain in full force and effect as originally written. Any references set forth in any document delivered in connection with the Stockholders Agreement shall be deemed to include a reference to the Stockholders Agreement as amended by this Consent and Amendment, whether or not so stated in the document.

[Signature page follows.]

 

2


IN WITNESS WHEREOF, the parties hereto have entered into this Consent and Amendment as of the date first written above.

 

PLAINS OFFSHORE OPERATIONS INC.
  By:  

/s/ Marc A. Hensel

    Name:   Marc A. Hensel
    Title:   Vice President
PXP RESOURCES LLC
  By:  

/s/ Marc A. Hensel

    Name:   Marc A. Hensel
    Title:   Vice President
FREEPORT-MCMORAN OIL & GAS LLC
  By:  

/s/ Marc A. Hensel

    Name:   Marc A. Hensel
    Title:   Vice President

 

[Signature Page to Consent and Fourth Amendment to Stockholders Agreement]


EIG ENERGY FUND XV, L.P.
A Delaware limited partnership (“Fund XV”)
  By:  

EIG Management Company, LLC, as Sub-adviser to and Attorney-in-Fact for TCW Asset Management Company, Manager of Fund XV

      By:  

/s/ Kurt A. Talbot

        Name:   Kurt A. Talbot
        Title:   Co-president and Chief Investment Officer
      By:  

/s/ Patrick H. Hickey

        Name:   Patrick H. Hickey
        Title:   Senior Vice President
EIG ENERGY FUND XV-A, L.P.
A Delaware limited partnership (“Fund XV-A”)
  By:   EIG Management Company, LLC, as Sub-adviser to and Attorney-in-Fact for TCW Asset Management Company, Manager of Fund XV-A
      By:  

/s/ Kurt A. Talbot

        Name:   Kurt A. Talbot
        Title:   Co-president and Chief Investment Officer
      By:  

/s/ Patrick H. Hickey

        Name:   Patrick H. Hickey
        Title:   Senior Vice President

 

[Signature Page to Consent and Fourth Amendment to Stockholders Agreement]


EIG ENERGY FUND XV-B, L.P.
A Delaware limited partnership (“Fund XV-B”)
  By:   EIG Management Company, LLC, as Sub-adviser to and Attorney-in-Fact for TCW Asset Management Company, Manager of Fund XV-B
      By:  

/s/ Kurt A. Talbot

        Name:   Kurt A. Talbot
        Title:   Co-president and Chief Investment Officer
      By:  

/s/ Patrick H. Hickey

        Name:   Patrick H. Hickey
        Title:   Senior Vice President
EIG ENERGY XV BLOCKER (PLAINS), LLC
A Delaware limited liability company (“Blocker”)
  By:   EIG Management Company, LLC, as Manager of Blocker
      By:  

/s/ Kurt A. Talbot

        Name:   Kurt A. Talbot
        Title:   Co-president and Chief Investment Officer
      By:  

/s/ Patrick H. Hickey

        Name:   Patrick H. Hickey
        Title:   Senior Vice President

 

[Signature Page to Consent and Fourth Amendment to Stockholders Agreement]


Exhibit A

COD Amendment

[see attached]

 

[Exhibit A – COD Amendment]


Exhibit B

Schedule A to Stockholders Agreement

 

Purchaser

   Number of
Shares of
Convertible
Preferred
Stock
     Number of
Escrowed
Class A
Shares
     Number of
Warrants
     Aggregate
Purchase Price
 

EIG Energy Fund XV, L.P.

c/o EIG Management Company, LLC

1700 Pennsylvania Avenue, NW, Suite 800

Washington, DC 20006

Attn: Niranjan Ravindran

Phone: 202 ###-###-####

Fax: 202 ###-###-####

e-mail: ***@***

     124,464         22,844,654         2,522,747       $ 124,464,000   

EIG Energy Fund XV-A, L.P.

c/o EIG Management Company, LLC

1700 Pennsylvania Avenue, NW, Suite 800

Washington, DC 20006

Attn: Niranjan Ravindran

Phone: 202 ###-###-####

Fax: 202 ###-###-####

e-mail: ***@***

     84,951         15,592,333         1,721,862       $ 84,951,000   

EIG Energy Fund XV-B, L.P.

c/o EIG Management Company, LLC

1700 Pennsylvania Avenue, NW, Suite 800

Washington, DC 20006

Attn: Niranjan Ravindran

Phone: 202 ###-###-####

Fax: 202 ###-###-####

e-mail: ***@***

     82,132         15,074,780         1,664,725       $ 82,132,000   

EIG Energy XV Blocker (Plains), LLC

c/o EIG Management Company, LLC

1700 Pennsylvania Avenue, NW, Suite 800

Washington, DC 20006

Attn: Niranjan Ravindran

Phone: 202 ###-###-####

Fax: 202 ###-###-####

e-mail: ***@***

     66,587         12,221,567         1,349,644       $ 66,587,000   

MTP Energy Master Fund Ltd

c/o Magnetar Financial LLC

1603 Orrington Avenue, 13th Floor

Evanston, IL 60201

Attention: Zoe Allen

Phone: (847)  ###-###-####

email: ***@***

     19,697         3,615,333         399,236       $ 19,697,000   

MTP Energy Opportunities Fund I LLC

c/o Magnetar Financial LLC

1603 Orrington Avenue, 13th Floor

Evanston, IL 60201

Attention: Zoe Allen

Phone: (847)  ###-###-####

email: ***@***

     5,267         966,667         106,756       $ 5,267,000   

MTP Opportunity Fund, LLC

c/o BlackRock Alternative Advisors

601 Union Street, 56th Floor

Seattle, WA 98101

Attn: Megan Hannah

Fax: (206)  ###-###-####

email: ***@***

     10,323         1,894,666         209,237       $ 10,323,000   

 

[Exhibit B - Schedule A to Stockholders Agreement]


with a copy to

BAA Legal Department

601 Union Street, 56th Floor

Seattle, WA 98101

email: ***@***:

           

Triangle Peak Partners Private Equity, LP

P.O. Box 3788

Carmel Plaza, Suite 305 (Ocean & Mission Streets)

Carmel, CA 93921

Attention: Michael C. Morgan, Managing Member

Phone:

Fax: (831)  ###-###-####

     5,266         966,667         106,736       $ 5,266,000   

Hipparchus Fund LP

c/o Magnetar Financial LLC

1603 Orrington Avenue, 13th Floor

Evanston, IL 60201

Attention: Zoe Allen

Phone: (847)  ###-###-####

email: ***@***

     1,580         290,000         32,024       $ 1,580,000   

FSEP Term Funding, LLC

c/o GSO Capital Partners LP

345 Park Avenue, 31st Floor

New York, NY 10154

Attention: GSO Legal

Telephone: (212)  ###-###-####

Facsimile: (212)  ###-###-####

Email: ***@***

With copy to: Robert Horn

Telephone: (212)  ###-###-####

Email: ***@***

     21,067         3,866,666         427,005       $ 21,067,000   

Race Street Funding LLC

c/o GSO / Blackstone Debt Funds Management LLC

345 Park Avenue, 31st Floor

New York, NY 10154

Attention: Brad Marshall

Phone: (212)  ###-###-####

Fax: (972)  ###-###-####

email: ***@***

     21,066         3,866,667         426,985       $ 21,066,000   

Locust Street Funding LLC

c/o GSO Capital Partners LP

345 Park Avenue, 31st Floor

New York, NY 10154

Attention: GSO Legal

Phone: (212)  ###-###-####

Fax: (212)  ###-###-####

email: ***@***

With copy to: Robert Horn

Phone: (212)  ###-###-####

email: ***@***

     31,600         5,800,000         640,496       $ 31,600,000   

Total

     474,000         87,000,000         9,607,453       $ 474,000,000   

 

[Exhibit B - Schedule A to Stockholders Agreement]