Exhibit 10.2

 

FIRST AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT

 

This First Amendment to Amended and Restated Credit Agreement (this “First
Amendment”) is effective as of December 15, 2005 (the “Amendment Effective
Date”), by and among Cimarex Energy Co., a Delaware corporation (“Borrower”),
JPMorgan Chase Bank, N.A., a national banking association, as Administrative
Agent (“Administrative Agent”), and each of the financial institutions a party
to the Credit Agreement (as hereinafter defined) as Lenders (hereinafter
collectively referred to as “Lenders,” and individually, “Lender”).

 

W I T N E S S E T H:

 

WHEREAS, Borrower, Administrative Agent and Lenders are parties to that certain
Amended and Restated Credit Agreement dated as of June 13, 2005 (the “Credit
Agreement”) (unless otherwise defined herein, all terms used herein with their
initial letter capitalized shall have the meaning given such terms in the Credit
Agreement (as amended hereby)); and

 

WHEREAS, pursuant to the Credit Agreement, Lenders have made revolving credit
loans to Borrower; and

 

WHEREAS, Borrower has requested that Lenders (i) amend certain terms of the
Credit Agreement in certain respects, and (ii) waive their right to cause a
redetermination of the Borrowing Base in connection with Property dispositions
consummated prior to December 31, 2005, all as more particularly set forth
herein; and

 

WHEREAS, subject to the terms and conditions set forth herein, Lenders have
agreed to Borrower’s requests.

 

NOW THEREFORE, for and in consideration of the mutual covenants and agreements
herein contained and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged and confessed, Borrower,
Administrative Agent and each Lender hereby agree as follows:

 

SECTION 1.           Amendments. In reliance on the representations, warranties,
covenants and agreements contained in this First Amendment, and subject to the
satisfaction of the conditions precedent set forth in Section 3 hereof, the
Credit Agreement is hereby amended effective as of the Amendment Effective Date
in the manner provided in this Section 1.

 

1.1.          Amendment to Asset Sale Covenant. Section 7.4(iv) of the Credit
Agreement shall be amended to read in full as follows:

 

“(iv)        Leases, sales or other dispositions of its Property that, together
with all other Property of the Borrower and its Subsidiaries previously leased,
sold or disposed of (other than (i), (ii) and (iii) above) as permitted by this
Section during (A) the period commencing on the Closing Date and ending on
December 31, 2005, do not constitute more than $175,000,000 (based on sales
price) in the aggregate; and (B) any Fiscal Year thereafter commencing with the
Fiscal Year ending December 31, 2006, do not constitute

 

1

--------------------------------------------------------------------------------

 

more than 10% of the Engineered Value of the Borrowing Base Properties as
determined by Administrative Agent in its sole discretion.”

 

SECTION 2.           Limited Waiver. Borrower has requested that Lenders waive
their right, contained in Section 2.6.6(b) of the Credit Agreement, to initiate
and cause a redetermination of the Borrowing Base upon the consummation of any
disposition of any Property of Borrower and its Subsidiaries pursuant to
Section 7.4(iv)(A) of the Credit Agreement, which disposition relates to
Property constituting (or which potentially constitutes) more than 10% of the
Engineered Value of the Borrowing Base Properties (the “Subject
Redetermination”). In reliance on the representations, warranties, covenants and
agreements contained in the Credit Agreement and this First Amendment, and
subject to the satisfaction of the conditions precedent set forth in Section 3
hereof (and in the Credit Agreement, as amended by this First Amendment, as
applicable), Lenders hereby waive their right to initiate and cause the Subject
Redetermination in connection with dispositions of any Property of Borrower or
its Subsidiaries consummated prior to December 31, 2005 to the extent, but only
to the extent, such dispositions are otherwise consummated in compliance with
Section 7.4(iv) of the Credit Agreement, as amended by this First Amendment. The
waiver contained in this Section 2 is limited solely to the Subject
Redetermination and the applicable provisions of Section 2.6.6(b) of the Credit
Agreement, and solely with respect to Property dispositions consummated on or
prior to December 31, 2005 as described above. Nothing contained herein shall be
deemed a waiver of any other provision of the Credit Agreement or any other Loan
Document.

 

SECTION 3.           Conditions Precedent. The effectiveness of (a) the
amendments to the Credit Agreement contained in Section 1 hereof, and (b) the
consent and waiver contained in Section 2 hereof, is subject to the satisfaction
of each of the following conditions precedent:

 

3.1.          No Default. After giving effect to the amendments and waivers
contained herein, no Default or Event of Default shall have occurred which is
continuing.

 

3.2.          Other Documents. Administrative Agent shall have been provided
with such other documents, instruments and agreements, and Borrower shall have
taken such actions, as Administrative Agent may reasonably require in connection
with this First Amendment and the transactions contemplated hereby.

 

SECTION 4.           Representations and Warranties of Borrower. To induce the
Lenders and Administrative Agent to enter into this First Amendment, Borrower
hereby represents and warrants to Lenders and Administrative Agent as follows:

 

4.1.          Reaffirm Existing Representations and Warranties. Each
representation and warranty of Borrower contained in the Credit Agreement and
the other Loan Documents is true and correct on the date hereof and will be true
and correct after giving effect to the amendments set forth in Section 1 hereof.

 

4.2.          Due Authorization; No Conflict. The execution, delivery and
performance by Borrower of this First Amendment are within Borrower’s corporate
powers, have been duly authorized by all necessary action, require no action by
or in respect of, or filing with, any governmental body, agency or official and
do not violate or constitute a default under any

 

2

--------------------------------------------------------------------------------

 

provision of applicable law or any material agreement binding upon Borrower or
result in the creation or imposition of any Lien upon any of the assets of
Borrower or any of its Subsidiaries.

 

4.3.          Validity and Enforceability. This First Amendment constitutes the
valid and binding obligation of Borrower enforceable in accordance with its
terms, except as (i) the enforceability thereof may be limited by bankruptcy,
insolvency or similar laws affecting creditor’s rights generally, and (ii) the
availability of equitable remedies may be limited by equitable principles of
general application.

 

4.4.          No Default or Event of Default. After giving effect to the
amendments and waiver contained herein, no Default or Event of Default has
occurred which is continuing.

 

SECTION 5.           Miscellaneous.

 

5.1.          Reaffirmation of Loan Documents. Any and all of the terms and
provisions of the Credit Agreement and the Loan Documents shall, except as
amended and modified hereby, remain in full force and effect. The amendments
contemplated hereby shall not limit or impair any Liens securing the
Obligations, each of which are hereby ratified, affirmed and extended to secure
the Obligations as they may be increased pursuant hereto.

 

5.2.          Parties in Interest. All of the terms and provisions of this First
Amendment shall bind and inure to the benefit of the parties hereto and their
respective successors and assigns.

 

5.3.          Legal Expenses. Borrower hereby agrees to pay on demand all
reasonable fees and expenses of counsel to Administrative Agent incurred by
Administrative Agent in connection with the preparation, negotiation and
execution of this First Amendment and all related documents.

 

5.4.          Counterparts. This First Amendment may be executed in
counterparts, and all parties need not execute the same counterpart; however, no
party shall be bound by this First Amendment until Borrower, Administrative
Agent and Required Lenders have executed a counterpart. Facsimiles shall be
effective as originals.

 

5.5.          Complete Agreement. THIS FIRST AMENDMENT, THE CREDIT AGREEMENT AND
THE OTHER LOAN DOCUMENTS REPRESENT THE FINAL AGREEMENT AMONG THE PARTIES AND
MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR ORAL AGREEMENTS
OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN OR AMONG THE
PARTIES.

 

5.6.          Headings. The headings, captions and arrangements used in this
First Amendment are, unless specified otherwise, for convenience only and shall
not be deemed to limit, amplify or modify the terms of this First Amendment, nor
affect the meaning thereof.

 

5.7.          Effectiveness. This First Amendment shall be effective
automatically and without necessity of any further action by Borrower,
Administrative Agent or Lenders when counterparts hereof have been executed by
Borrower, Administrative Agent and Required Lenders, and all conditions to the
effectiveness hereof set forth herein have been satisfied.

 

3

--------------------------------------------------------------------------------

 

IN WITNESS WHEREOF, the parties hereto have caused this First Amendment to be
duly executed by their respective authorized officers on the date and year first
above written.

 

[Signature pages to follow]

 

4

--------------------------------------------------------------------------------

 

 

CIMAREX ENERGY CO.,

 

a Delaware corporation

 

 

 

 

 

By:

/s/ Paul Korus

 

 

Name:

Paul Korus

 

 

Title:

Vice President, Chief Financial Officer, Treasurer

 

 

 

[SIGNATURE PAGE TO FIRST AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT]

 

--------------------------------------------------------------------------------

 

 

ADMINISTRATIVE AGENT:

 

 

 

JPMORGAN CHASE BANK, N.A., as
Administrative Agent

 

 

 

 

 

By:

/s/ J. Scott Fowler

 

 

 

J. Scott Fowler,

 

 

Vice President

 

 

 

 

 

 

LENDERS:

 

 

 

JPMORGAN CHASE BANK, N.A., Individually
as a Lender and as LC Issuer

 

 

 

 

 

By:

/s/ J. Scott Fowler

 

 

 

J. Scott Fowler,

 

 

Vice President

 

--------------------------------------------------------------------------------

 

 

U.S. BANK NATIONAL ASSOCIATION

 

 

 

 

 

By:

/s/ Kathryn A. Gaiter

 

 

Name:

Kathryn A. Gaiter

 

 

Title:

Vice President

 

 

--------------------------------------------------------------------------------

 

 

BANK OF AMERICA, N.A.

 

 

 

 

 

By:

/s/ Gregory B. Hanson

 

 

Name:

Gregory B. Hanson

 

 

Title:

Vice President

 

 

--------------------------------------------------------------------------------

 

 

WELLS FARGO BANK, N.A.

 

 

 

 

 

By:

/s/ Duc Duong

 

 

Name:

Duc Duong

 

 

Title:

Vice President

 

 

--------------------------------------------------------------------------------

 

 

UNION BANK OF CALIFORNIA, N.A.

 

 

 

 

 

By:

/s/ Dustin Gasparl

 

 

Name:

Dustin Gasparl

 

 

Title:

Vice President

 

 

--------------------------------------------------------------------------------

 

 

COMERICA BANK

 

 

 

 

 

By:

/s/ Peter L. Sefzik

 

 

Name:

Peter L. Sefzik

 

 

Title:

Vice President

 

 

--------------------------------------------------------------------------------

 

 

DEUTSCHE BANK TRUST COMPANY
AMERICAS

 

 

 

 

 

By:

David E. Sisler

 

 

Name:

David E. Sisler

 

 

Title:

Director

 

 

 

 

 

 

By:

 

 

 

Name:

 

 

 

Title:

 

 

 

--------------------------------------------------------------------------------

 

 

BANK OF OKLAHOMA, N.A.

 

 

 

 

 

By:

Michael M. Lega

 

 

Name:

Michael M. Lega

 

 

Title:

Senior Vice President

 

 

--------------------------------------------------------------------------------

 

 

NATEXIS BANQUES POPULAIRES

 

 

 

 

 

By:

Donovan C. Broussard

 

 

Name:

Donovan C. Broussard

 

 

Title:

Vice President & Manager

 

 

 

 

 

 

By:

Daniel Payer

 

 

Name:

Daniel Payer

 

 

Title:

Vice President

 

 

--------------------------------------------------------------------------------

 

 

COMPASS BANK

 

 

 

 

 

By:

Murray E. Brasseux

 

 

Name:

Murray E. Brasseux

 

 

Title:

Executive Vice President

 

 

--------------------------------------------------------------------------------

 

 

BNP PARIBAS

 

 

 

 

 

By:

David Dodd

 

 

Name:

David Dodd

 

 

Title:

Director

 

 

 

 

 

 

By:

Russell Otts

 

 

Name:

Russell Otts

 

 

Title:

Vice President

 

 

--------------------------------------------------------------------------------

 

 

BANK OF SCOTLAND

 

 

 

 

 

By:

/s/ Karen Welch

 

 

Name:

Karen Welch

 

 

Title:

Assistant Vice President

 

 

--------------------------------------------------------------------------------

 

 

FORTIS CAPITAL CORP.

 

 

 

 

 

By:

/s/

 

 

Name:

 

 

 

Title:

Senior Vice President

 

 

 

 

 

 

By:

/s/ Darrell Holley

 

 

Name:

Darrell Holley

 

 

Title:

Managing Director

 

 

--------------------------------------------------------------------------------

 

 

HARRIS NESBITT FINANCING, INC.

 

 

 

 

 

By:

Mary Lou Allen

 

 

Name:

Mary Lou Allen

 

 

Title:

Vice President

 

 

--------------------------------------------------------------------------------

 

 

CALYON NEW YORK BRANCH

 

 

 

 

 

By:

/s/

 

 

Name:

 

 

 

Title:

Director

 

 

 

 

 

 

By:

/s/

 

 

Name:

 

 

 

Title:

Vice President

 

 

--------------------------------------------------------------------------------

 

 

STERLING BANK

 

 

 

 

 

By:

Melissa A. Bauman

 

 

Name:

Melissa A. Bauman

 

 

Title:

Senior Vice President

 

 

--------------------------------------------------------------------------------

 

 

SOCIÉTÉ GÉNÉRALE

 

 

 

 

 

By:

/s/ Elena Robciuc

 

 

Name:

Elena Robciuc

 

 

Title:

 

 

 

--------------------------------------------------------------------------------

 

 

KEYBANK, N.A.

 

 

 

 

 

By:

 /s/ Thomas Rajan

 

 

Name:

Thomas Rajan

 

 

Title:

Vice President

 

 

--------------------------------------------------------------------------------

 

 

CITICORP NORTH AMERICA, INC.

 

 

 

 

 

By:

 /s/

 

 

Name:

 

 

 

Title:

Vice President

 

 

--------------------------------------------------------------------------------