Exhibit 10.1

 

Execution Version

 

FIRST AMENDMENT

 

TO

 

CREDIT AGREEMENT

 

DATED AS OF JULY 19, 2012

 

AMONG

 

CIMAREX ENERGY CO.,

AS BORROWER,

 

THE GUARANTORS,

 

JPMORGAN CHASE BANK, N.A.,

AS ADMINISTRATIVE AGENT,

 

AND

 

THE LENDERS PARTY HERETO

 

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J.P. MORGAN SECURITIES LLC,

as Sole Bookrunner

 

J.P. MORGAN SECURITIES LLC and WELLS FARGO SECURITIES, LLC,

as Joint Lead Arrangers

 

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FIRST AMENDMENT TO CREDIT AGREEMENT

 

THIS FIRST AMENDMENT TO CREDIT AGREEMENT (this “First Amendment”) dated as of
July 19, 2012, is among CIMAREX ENERGY CO., a Delaware corporation, (the
“Borrower”), the Guarantors signatory hereto, each of the lenders party to the
Credit Agreement referred to below (collectively, the “Lenders”), and JPMORGAN
CHASE BANK, N.A., as administrative agent for the Lenders (in such capacity,
together with its successors in such capacity, the “Administrative Agent”).

 

R E C I T A L S

 

A.                                    The Borrower, the Administrative Agent,
the Lenders and the other Agents party thereto are parties to that certain
Credit Agreement dated as of July 14, 2011 (the “Credit Agreement”), pursuant to
which the Lenders have made certain credit and other financial accommodations
available to and on behalf of the Borrower and its Subsidiaries.

 

B.                                    The Borrower has requested and the
Administrative Agent and the Lenders have agreed to amend certain provisions of
the Credit Agreement.

 

C.                                    Now, therefore, to induce the
Administrative Agent and the Majority Lenders to enter into this First Amendment
and 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:

 

Section 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 First Amendment. 
Unless otherwise indicated, all section references in this First Amendment refer
to sections of the Credit Agreement.

 

Section 2.                                           Amendments to Credit
Agreement.

 

2.1                               Amendment to Section 1.02.

 

(a)                                 Section 1.02 is hereby amended by deleting
the defined term “Agreement” to read as follows:

 

“Agreement” means this Credit Agreement, as amended by that certain First
Amendment dated as of July 19, 2012, and as the same may from time to time be
further amended, modified, supplemented or restated.

 

(b)                                 Section 1.02 is hereby amended by adding the
term “First Amendment” in the appropriate alphabetical order:

 

“First Amendment” means that certain First Amendment to Credit Agreement dated
as of July 19, 2012.

 

2.2                               Amendment to Annex I.  Annex I is hereby
replaced with Annex I to this First Amendment.

 

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Section 3.                                           Increase in Commitments. 
The Majority Lenders, the Administrative Agent and the Borrower hereby agree as
follows, as of the First Amendment Effective Date:

 

(a)                                 the Aggregate Maximum Credit Amount is
increased from $800,000,000 to $1,000,000,000, and

 

(b)                                 each Lender (each an “Increasing Lender”)
has increased its Maximum Credit Amount to the amount set forth opposite its
name on Annex I.

 

The Administrative Agent and the Borrower hereby consent to each Increasing
Lender increasing its Maximum Credit Amount.  On the First Amendment Effective
Date, the Maximum Credit Amount of each Lender shall be as set forth on Annex I
of this First Amendment.

 

Section 4.                                           Conditions Precedent.  This
First Amendment shall become effective on the date, on or before July 31, 2012
(such date, the “First Amendment Effective Date”), when each of the following
conditions is satisfied (or waived in accordance with Section 12.02):

 

4.1                               The Administrative Agent shall have received
(a) all fees and other amounts due and payable on or prior to the First
Amendment Effective Date including upfront fees due to each Increasing Lender in
an amount equal to 0.40% of the excess of such Increasing Lender’s Maximum
Credit Amount on the First Amendment Effective Date over such Person’s Maximum
Credit Amount immediately preceding the First Amendment Effective Date and all
other fees the Borrower has agreed to pay in connection with this First
Amendment and (b) to the extent invoiced, reimbursement or payment of all
out-of-pocket expenses required to be reimbursed or paid by the Borrower under
the Credit Agreement.

 

4.2                               The Administrative Agent shall have received
from each Increasing Lender and the Majority Lenders and the Borrower,
counterparts (in such number as may be requested by the Administrative Agent) of
this First Amendment signed on behalf of such Person.

 

4.3                               To the extent requested by a Increasing Lender
with a change in its Maximum Credit Amount, the Administrative Agent shall have
received duly executed Notes payable to each such Lender in a principal amount
equal to its Maximum Credit Amount dated as of the First Amendment Effective
Date.

 

4.4                               The Administrative Agent shall have received a
certificate of the Secretary or an Assistant Secretary of the Borrower and each
Guarantor setting forth (a) resolutions of its board of directors with respect
to the authorization of the Borrower or such Guarantor to execute and deliver
this First Amendment and to enter into the transactions contemplated in those
documents, (b) the officers of the Borrower or such Guarantor (i) who are
authorized to sign this First Amendment and (ii) 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 the Credit Agreement and the
transactions contemplated hereby, (c) specimen signatures of such authorized
officers, and (d) that there have

 

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been no changes to the Organizational Documents of the Borrower and such
Guarantor since July 14, 2011 (or if there have been any changes, attaching
copies, certified as being true and complete of the related documents).  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.

 

4.5                               The Administrative Agent shall have received
an opinion of Bryan Cave LLP, special counsel to the Borrower, in form and
substance reasonably satisfactory to it.

 

4.6                               No Default shall have occurred and be
continuing as of the date hereof, after giving effect to the terms of this First
Amendment.

 

The Administrative Agent is hereby authorized and directed to declare this First
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 Section 4 or the waiver of such conditions as
permitted in Section 12.02.  Such declaration shall be final, conclusive and
binding upon all parties to the Credit Agreement for all purposes.

 

Section 5.                                           Miscellaneous.

 

5.1                               Confirmation. The provisions of the Credit
Agreement, as amended by this First Amendment, shall remain in full force and
effect following the effectiveness of this First Amendment.

 

5.2                               Ratification and Affirmation; Representations
and Warranties.  Each of the Borrower and the Guarantors hereby (a) acknowledges
the terms of this First Amendment; (b) 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) represents
and warrants to the Lenders that as of the date hereof, after giving effect to
the terms of this First Amendment:

 

(i)                                     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 (except those which have a materiality
qualifier, which shall be true and correct as so qualified), 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 as of such specified earlier date,

 

(ii)                                  no Default or Event of Default has
occurred and is continuing, and

 

(iii)                               no event or events have occurred which
individually or in the aggregate could reasonably be expected to have a Material
Adverse Effect.

 

5.3                               Loan Document.  This First Amendment is a Loan
Document.

 

5.4                               Counterparts. This First 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 First

 

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Amendment by facsimile transmission shall be effective as delivery of a manually
executed counterpart hereof.

 

5.5                               NO ORAL AGREEMENT.  THIS FIRST 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 FIRST 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
Section 12.03, 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 First 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 First
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 Agreement shall
be binding upon and inure to the benefit of the parties hereto and their
respective successors and assigns.

 

[SIGNATURES BEGIN NEXT PAGE]

 

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IN WITNESS WHEREOF, the parties hereto have caused this First Amendment to be
duly executed as of the date first written above.

 

 

BORROWER:

CIMAREX ENERGY CO.

 

 

 

 

 

By:

/s/ Paul Korus

 

 

Paul Korus

 

 

Senior Vice President and

 

 

Chief Financial Officer

 

[Signature Page to First Amendment to Credit Agreement]

 

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GUARANTORS:

KEY PRODUCTION COMPANY, INC.

 

 

 

MAGNUM HUNTER PRODUCTION, INC.

 

 

 

CIMAREX GAS GATHERING, INC.

 

 

 

CONMAG ENERGY CORPORATION

 

 

 

CIMAREX ENERGY CO. OF COLORADO

 

 

 

OKLAHOMA GAS PROCESSING, INC.

 

 

 

PRIZE ENERGY RESOURCES, INC.

 

 

 

 

 

By:

/s/ Sherri M. Nitta

 

 

Sherri M. Nitta

 

 

Treasurer

 

[Signature Page to First Amendment to Credit Agreement]

 

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JPMORGAN CHASE BANK, N.A.,

 

as Administrative Agent

 

 

 

 

 

By:

/s/ David Morris

 

Name:

David Morris

 

Title:

Authorized Officer

 

[Signature Page to First Amendment to Credit Agreement]

 

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LENDER:

JPMORGAN CHASE BANK, N.A.

 

 

 

 

 

By:

/s/ David Morris

 

Name:

David Morris

 

Title:

Authorized Officer

 

[Signature Page to First Amendment to Credit Agreement]

 

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LENDER:

COMPASS BANK

 

 

 

 

 

By:

/s/ James Neblett

 

Name:

James Neblett

 

Title:

Associate

 

[Signature Page to First Amendment to Credit Agreement]

 

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LENDER:

DEUTSCHE BANK TRUST COMPANY AMERICAS

 

 

 

 

 

By:

/s/ Courtney E. Meehan

 

Name:

Courtney E. Meehan

 

Title:

Vice President

 

 

 

By:

/s/ Michael Getz

 

Name:

Michael Getz

 

Title:

Vice President

 

[Signature Page to First Amendment to Credit Agreement]

 

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LENDER:

UNION BANK, N.A.

 

 

 

 

 

By:

/s/ Zachary Holly

 

Name:

Zachary Holly

 

Title:

Vice President

 

[Signature Page to First Amendment to Credit Agreement]

 

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LENDER:

WELLS FARGO BANK, N.A.

 

 

 

 

 

By:

/s/ Sarah Thomas

 

Name:

Sarah Thomas

 

Title:

Portfolio Manager

 

[Signature Page to First Amendment to Credit Agreement]

 

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LENDER:

BRANCH BANKING AND TRUST COMPANY

 

 

 

 

 

By:

/s/ Parul June

 

Name:

Parul June

 

Title:

Vice President

 

[Signature Page to First Amendment to Credit Agreement]

 

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LENDER:

CAPITAL ONE, N.A.

 

 

 

 

 

By:

/s/ Wesley Fontana

 

Name:

Wesley Fontana

 

Title:

Vice President

 

[Signature Page to First Amendment to Credit Agreement]

 

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LENDER:

CIBC INC.

 

 

 

 

 

By:

/s/ Trudy Nelson

 

Name:

Trudy Nelson

 

Title:

Authorized Signatory

 

 

 

 

 

By:

/s/ Richard Antl

 

Name:

Richard Antl

 

Title:

Authorized Signatory

 

[Signature Page to First Amendment to Credit Agreement]

 

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LENDER:

COMERICA BANK

 

 

 

 

 

By:

/s/ Justin Crawford

 

Name:

Justin Crawford

 

Title:

Vice President

 

[Signature Page to First Amendment to Credit Agreement]

 

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LENDER:

KEYBANK NATIONAL ASSOCIATION

 

 

 

 

 

By:

/s/ Paul J. Pace

 

Name:

Paul J. Pace

 

Title:

Senior Vice President

 

[Signature Page to First Amendment to Credit Agreement]

 

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LENDER:

U.S. BANK NATIONAL ASSOCIATION

 

 

 

 

 

By:

/s/ Bruce E. Hernandez

 

Name:

Bruce E. Hernandez

 

Title:

Vice President

 

[Signature Page to First Amendment to Credit Agreement]

 

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LENDER:

BOKF, N.A., D/B/A BANK OF OKLAHAOMA

 

 

 

 

 

By:

/s/ Michael M. Logan

 

Name:

Michael M. Logan

 

Title:

Senior Vice President

 

[Signature Page to First Amendment to Credit Agreement]

 

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LENDER:

BANK OF SCOTLAND PLC

 

 

 

 

 

By:

/s/ Karen Weich

 

Name:

Karen Weich

 

Title:

Vice President

 

[Signature Page to First Amendment to Credit Agreement]

 

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LENDER:

ING CAPITAL LLC

 

 

 

 

 

By:

/s/ Charles Hall

 

Name:

Charles Hall

 

Title:

Managing Director

 

[Signature Page to First Amendment to Credit Agreement]

 

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ANNEX I
LIST OF MAXIMUM CREDIT AMOUNTS

 

Name of Lender

 

Applicable
Percentage

 

Maximum Credit Amount

 

JPMorgan Chase Bank, N.A.

 

 

 

$

87,500,000

 

Compass Bank

 

 

 

87,500,000

 

Deutsche Bank Trust Company Americas

 

 

 

87,500,000

 

Union Bank, N.A.

 

 

 

87,500,000

 

Wells Fargo Bank, N.A.

 

 

 

87,500,000

 

Branch Banking and Trust Company

 

 

 

68,750,000

 

Capital One, N.A.

 

 

 

68,750,000

 

CIBC Inc.

 

 

 

68,750,000

 

Comerica Bank

 

 

 

68,750,000

 

KeyBank National Association

 

 

 

68,750,000

 

U.S. Bank National Association

 

 

 

68,750,000

 

BOKF, N.A., d/b/a Bank of Oklahoma

 

 

 

50,000,000

 

Bank of Scotland plc

 

 

 

50,000,000

 

ING Capital LLC

 

 

 

50,000,000

 

TOTAL

 

100.0000

%

$

1,000,000,000.00

 

 

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