EXHIBIT 10.1

 

SECOND AMENDMENT TO CREDIT AGREEMENT

 

This Second Amendment to Credit Agreement (this “Second Amendment”), dated as of
March 15, 2005 (the “Effective Date”), is by and among DELTA PETROLEUM
CORPORATION, a Colorado corporation (“Borrower”), JPMORGAN CHASE BANK, N.A.,
successor by merger to Bank One, NA (Main Office Chicago), a national banking
association, as Administrative Agent (“Administrative Agent”), and each of the
financial institutions a party hereto as Banks (hereinafter collectively
referred to as “Banks,” and individually, “Bank”).

 

W I T N E S S E T H:

 

WHEREAS, Borrower, Administrative Agent, JPMorgan Chase Bank, N.A., successor by
merger to Bank One, NA (Main Office Chicago), Bank of Oklahoma, N.A., U.S. Bank
National Association and Hibernia National Bank (hereinafter collectively
referred to as “Existing Banks,” and individually, “Existing Bank”) are parties
to that certain Credit Agreement dated as of November 5, 2004 (as heretofore
amended, 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, Existing Banks have made revolving
loans to Borrower;

 

WHEREAS, in connection with the execution of this Second Amendment, certain of
the Existing Banks (herein referred to as “Assigning Banks”) have entered into
Assignment and Acceptance Agreements with Comerica Bank and Bank of Scotland
(herein referred to as “Assignee Banks”), pursuant to which such Assigning Banks
assigned to Assignee Banks, and Assignee Banks acquired from such Assigning
Banks (as applicable), a portion of each such Assigning Bank’s Commitments and a
portion of the Revolving Loans and Letter of Credit Exposure held by each such
Assigning Bank under the Credit Agreement; and

 

WHEREAS, Schedule 1.1 attached hereto reflects the Commitments of each Bank
after giving effect to the Assignment and Acceptance Agreements described above;
and

 

WHEREAS, Borrower has designated Castle Texas Exploration Limited Partnership, a
Texas limited partnership (“Castle”), as a “Restricted Subsidiary” under the
Credit Agreement; and

 

WHEREAS, Borrower has requested that Banks (i) amend certain terms of the Credit
Agreement in certain respects, (ii) establish a Borrowing Base of $60,000,000 to
be effective as of the Effective Date and continuing until the next
Redetermination or other adjustment (as provided in the Credit Agreement) of the
Borrowing Base thereafter, and (iii) consent to certain transactions more
particularly described in Section 3 hereof; and

 

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WHEREAS, subject to and upon the terms and conditions set forth herein, Banks
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 Bank hereby agree as follows:

 

SECTION 1. Amendments. In reliance on the representations, warranties, covenants
and agreements contained in this Second Amendment, and subject to the
satisfaction of each condition precedent set forth in Section 4 hereof, the
Credit Agreement is hereby amended effective as of the Effective Date in the
manner provided in this Section 1.

 

1.1 Amendment to Definitions. The definitions of “Commitment Fee Percentage,”
“Letter of Credit Fee,” “Loan Papers,” “Permitted Senior Unsecured Debt,”
“Redetermination,” “Redetermination Date,” “Restricted Payment,” “Restricted
Subsidiary,” “Scheduled Redetermination,” “Special Redetermination” and
“Unrestricted Subsidiary” contained in Section 1.1 of the Credit Agreement shall
be amended to read in full as follows:

 

“Commitment Fee Percentage” means, on any date, the percentage determined by
reference to the ratio of Outstanding Credit to the Borrowing Base on such date
in accordance with the table below:

 

Ratio of Outstanding Credit to
Borrowing Base

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Commitment Fee
Percentage

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> 1.0 to 1

   0.500%

³ .90 to 1 and £ 1.0 to 1

   0.500%

³ .75 to 1 and < .90 to 1

   0.375%

³ .50 to 1 and < .75 to 1

   0.375%

< .50 to 1

   0.300%

 

“Letter of Credit Fee” means, with respect to any Letter of Credit issued
hereunder, a fee in an amount equal to the greater of (a) $500, or (b) a
percentage of the stated amount of such Letter of Credit (calculated on a per
annum basis based on the stated term of such Letter of Credit) determined by
reference to the ratio of the Outstanding Credit to the Borrowing Base in effect
on the date such Letter of Credit is issued in accordance with the table below:

 

Ratio of Outstanding Credit to
Borrowing Base

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Per Annum Letter of Credit Fee
Percentage

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> 1.0 to 1

   2.750%

³ .90 to 1 and £ 1.0 to 1

   2.250%

³. 75 to 1 and < .90 to 1

   2.000%

³. 50 to 1 and < .75 to 1

   1.750%

< .50 to 1

   1.500%

 

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“Loan Papers” means this Agreement, the First Amendment, the Second Amendment,
the Notes, each Facility Guaranty which may now or hereafter be executed, each
Borrower Pledge Agreement which may now or hereafter be executed, each
Subsidiary Pledge Agreement which may now or hereafter be executed, the Existing
Mortgages (as amended by the Assignment and Amendment to Mortgages), the
Assignments and Amendments to Mortgages, all Mortgages now or at any time
hereafter delivered pursuant to Section 5.1, all Letters of Credit, and all
other certificates, documents or instruments delivered in connection with this
Agreement, as the foregoing may be amended from time to time.

 

“Permitted Senior Unsecured Debt” means senior unsecured Debt of Borrower
resulting from the issuance by Borrower of its senior unsecured notes in an
aggregate outstanding principal balance at any time of not greater than
$150,000,000, and which (a) has a coupon rate of not greater than nine percent
(9%), (b) has a due date not earlier than April 1, 2015, (c) is not subject to
negative covenants or events of default (or other provisions which have the same
effect as negative covenants or events of default) which are more restrictive on
Borrower than those set forth in the Offering Memorandum, and (d) except in
connection with a “change of control” put option or certain other triggering
events relative to asset dispositions as set forth in the Offering Memorandum,
does not provide for or otherwise require any mandatory redemption, repayment,
defeasance, repurchase or other amortization prior to scheduled maturity.

 

“Redetermination” means any Scheduled Redetermination, Special Redetermination,
Manti Redetermination, or other redetermination of the Borrowing Base pursuant
to Section 4.4. Notwithstanding anything to the contrary contained herein, no
redetermination of the Borrowing Base pursuant to Section 4.4 shall be deemed or
construed to be a Special Redetermination.

 

“Redetermination Date” means (a) with respect to any Scheduled Redetermination,
each April 1 and October 1, commencing October 1, 2005, (b) with respect to any
Special Redetermination, the first day of the first month which is not less than
twenty (20) Domestic Business Days following the date of a request for a Special
Redetermination, (c) with respect to any redetermination of the Borrowing Base
pursuant to Section 4.4, the date of the consummation of any applicable Asset
Disposition, and (d) with respect to any Manti Redetermination, each Manti
Redetermination Date. The Closing Date and the Effective Date (as

 

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defined in the Second Amendment) shall also constitute Redetermination Dates for
purposes of this Agreement.

 

“Restricted Payment” means, with respect to any Person, (a) any Distribution by
such Person, (b) any capital contribution, loan or advance by any Credit Party
to any Unrestricted Subsidiary, (c) the issuance of a Guarantee by any Credit
Party with respect to any Debt or other obligation of any Unrestricted
Subsidiary, other than Guarantees of Permitted Senior Unsecured Debt permitted
by Section 9.1(e) hereof, (d) the retirement, redemption, defeasance, repurchase
or prepayment prior to scheduled maturity by such Person or any Affiliate of
such Person of any Debt of such Person, or (e) the retirement, redemption or
payment by Borrower or any Affiliate of Borrower of any part of the principal of
the Permitted Senior Unsecured Debt at any time prior to the termination of all
Commitments and the payment and performance in full of the Obligations.

 

“Restricted Subsidiary” means, as of the Effective Date (as defined in the
Second Amendment), DEC, Castle and Piper, and shall also mean any other
Subsidiary of Borrower which Borrower hereafter designates as a “Restricted
Subsidiary;” provided, that, no Subsidiary of Borrower will be a Restricted
Subsidiary unless (a) one hundred percent (100%) of its issued and outstanding
Equity has been pledged to Administrative Agent to secure the Obligations
pursuant to a Borrower Pledge Agreement or a Subsidiary Pledge Agreement, and
(b) it has executed a Facility Guaranty.

 

“Scheduled Redetermination” means any Redetermination of the Borrowing Base
pursuant to Section 4.2.

 

“Special Redetermination” means any Redetermination of the Borrowing Base
pursuant to Section 4.3.

 

“Unrestricted Subsidiary” means any Subsidiary of Borrower which is not a
Restricted Subsidiary and shall include, as of the Effective Date (as defined in
the Second Amendment), Amber, Big Dog and Shark.

 

1.2 Additional Definitions. Section 1.1 of the Credit Agreement shall be amended
to add the following definitions to such Section:

 

“Offering Memorandum” means that certain preliminary offering memorandum dated
February 25, 2005 relating to the Permitted Senior Unsecured Debt.

 

“Second Amendment” means that certain Second Amendment to Credit Agreement dated
as of March 15, 2005, among Borrower, Administrative Agent and Banks party
thereto.

 

1.3 Deletion of Definitions. Section 1.1 of the Credit Agreement shall be
amended to delete the following definitions from such Section: “Conforming
Borrowing

 

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Base,” “Debt Issuance Reduction Amount,” “Mandatory Debt Issuance
Redetermination” and “Title Approved Properties.”

 

1.4 Amendment to Borrowing Base Provisions. Article IV of the Credit Agreement
shall be amended and restated to read in full as follows:

 

“ARTICLE IV

BORROWING BASE

 

Section 4.1 Reserve Report; Proposed Borrowing Base. The aggregate amount of
credit available to Borrower under this Agreement shall be limited by a
Borrowing Base (herein so called) which shall be determined by Banks at the
times and in accordance with the standards and procedures set forth in this
Article IV. As soon as available and in any event by February 28 and August 31
of each year, commencing August 31, 2005, Borrower shall deliver to
Administrative Agent and each Bank a Reserve Report prepared as of the
immediately preceding December 31 and June 30, respectively. Simultaneously with
the delivery to Administrative Agent and each Bank of each Reserve Report,
Borrower shall notify Administrative Agent and each Bank of the amount of the
Borrowing Base which Borrower requests become effective on the next
Redetermination Date (or such date promptly following such Redetermination Date
as Required Banks shall elect).

 

Section 4.2 Scheduled Redeterminations of the Borrowing Base; Procedures and
Standards. Based in part on the Reserve Reports made available to Banks pursuant
to Section 4.1, Banks shall redetermine the Borrowing Base on or prior to the
next Redetermination Date (or such date promptly thereafter as reasonably
possible based on the engineering and other information available to Banks). Any
Borrowing Base which becomes effective as a result of any Redetermination of the
Borrowing Base shall be subject to the following restrictions: (a) such
Borrowing Base shall not exceed the Borrowing Base requested by Borrower
pursuant to Section 4.1 or Section 4.3 (as applicable), (b) such Borrowing Base
shall not exceed the Total Commitment then in effect, (c) to the extent such
Borrowing Base represents an increase from the Borrowing Base in effect prior to
such Redetermination, such Borrowing Base shall be approved by all Banks, and
(d) to the extent such Borrowing Base represents a decrease in the Borrowing
Base in effect prior to such Redetermination, or a reaffirmation of such prior
Borrowing Base, such Borrowing Base shall be approved by Required Banks. Each
Redetermination shall be made by Banks in their sole discretion. Without
limiting such discretion, Borrower acknowledges and agrees that Banks (i) may
make such assumptions regarding appropriate existing and projected pricing for
Hydrocarbons as they deem appropriate in their sole discretion, (ii) may make
such assumptions regarding projected rates and quantities of future production
of Hydrocarbons from the Mineral Interests owned by Borrower as they deem
appropriate in their sole discretion, (iii) may consider the projected cash
requirements of the Credit Parties, (iv) are not required to consider any asset
other than Proved Mineral Interests owned by Borrower which are subject to first

 

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and prior Liens in favor of Administrative Agent for the ratable benefit of
Banks to the extent required by Section 5.1 hereof, and (v) may make such other
assumptions, considerations and exclusions as Banks deem appropriate in the
exercise of their sole discretion. It is further acknowledged and agreed that
each Bank may consider such other credit factors as it deems appropriate in the
exercise of its sole discretion and shall have no obligation in connection with
any Redetermination to approve any increase from the Borrowing Base in effect
prior to such Redetermination. Promptly following any Redetermination of the
Borrowing Base, Administrative Agent shall notify Borrower of the amount of the
Borrowing Base as redetermined, which Borrowing Base shall be effective as of
the date specified in such notice, and shall remain in effect for all purposes
of this Agreement until the next Redetermination.

 

Section 4.3 Special Redetermination.

 

(a) In addition to Scheduled Redeterminations and the other Redeterminations
provided for in this Article IV, Borrower and Required Banks shall each be
permitted to request a Special Redetermination of the Borrowing Base once in
each period between Scheduled Redeterminations. Any request by Required Banks
pursuant to this Section 4.3(a) shall be submitted to Administrative Agent and
Borrower. Any request by Borrower pursuant to this Section 4.3(a) shall be
submitted to Administrative Agent and each Bank and at the time of such request
Borrower shall (A) deliver to Administrative Agent and each Bank a Reserve
Report, and (B) also notify Administrative Agent and each Bank of the Borrowing
Base requested by Borrower in connection with such Special Redetermination.

 

(b) Any Special Redetermination shall be made by Banks in accordance with the
procedures and standards set forth in Section 4.2; provided, that, no Reserve
Report will be required to be delivered to Administrative Agent and Banks in
connection with any Special Redetermination requested by Required Banks pursuant
to Section 4.3(a) above.

 

Section 4.4 Asset Disposition Adjustment. In addition to the other
Redeterminations provided for in this Article IV, Required Banks shall be
permitted to redetermine the Borrowing Base in connection with, and
simultaneously with, the consummation of an Asset Disposition described in the
proviso of Section 9.5(b), and reduce the Borrowing Base by an amount equal to
the Borrowing Base value of the Borrowing Base Properties which are the subject
of such Asset Disposition (which shall be the Borrowing Base value assigned
thereto by Administrative Agent and approved by Required Banks). In the event
Required Banks elect to redetermine the Borrowing Base in accordance with this
Section 4.4, Administrative Agent shall notify Borrower promptly, but in any
event no less than one (1) Domestic Business Day prior to the consummation of
the Asset Disposition, of the amount of the Borrowing Base as redetermined,
which Borrowing Base shall be effective as of the date specified in such notice,
and shall remain in effect for all purposes of this Agreement until the next

 

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Redetermination. Notwithstanding anything to the contrary contained herein,
Borrower agrees that any such Redetermination pursuant to this Section 4.4 shall
not be construed or deemed to be a Special Redetermination hereunder.

 

Section 4.5 Borrowing Base Deficiency. To the extent a Borrowing Base Deficiency
exists after giving effect to any Redetermination (other than in connection with
a Redetermination pursuant to Section 4.4 or Section 4.6 hereof), Borrower
shall, within ten (10) days following notice thereof from Administrative Agent,
provide written notice (the “Election Notice”) to Administrative Agent stating
the action which Borrower proposes to take to remedy such Borrowing Base
Deficiency, and Borrower shall thereafter, at its option, either (a) within
thirty (30) days following the delivery of the Election Notice, make a
prepayment or prepayments of principal on the Revolving Loan in an amount
sufficient to eliminate such Borrowing Base Deficiency, and if such Borrowing
Base Deficiency cannot be eliminated pursuant to this Section 4.5 by prepayment
of the Revolving Loan in full (as a result of outstanding Letter of Credit
Exposure), Borrower shall also at such time deposit with Administrative Agent
sufficient cash to be held by Administrative Agent to secure outstanding Letter
of Credit Exposure in the manner contemplated by Section 2.1(b) as necessary to
eliminate such Borrowing Base Deficiency, (b) eliminate such Borrowing Base
Deficiency by making three (3) consecutive mandatory prepayments of principal on
the Revolving Loan, each of which shall be in the amount of one-third (1/3rd) of
the amount of such Borrowing Base Deficiency, commencing on the first Monthly
Date following the delivery of the Election Notice, and continuing on each
Monthly Date thereafter, (c) within ninety (90) days following the delivery of
the Election Notice, submit (and pledge as collateral pursuant to Article V
hereof) additional oil and gas properties owned by Borrower and its Subsidiaries
for consideration in connection with the determination of the Borrowing Base
which Administrative Agent and Banks deem sufficient in their sole discretion to
eliminate such Borrowing Base Deficiency, or (d) eliminate such Borrowing Base
Deficiency through a combination of prepayments on the Revolving Loan and
submission of additional oil and gas properties for inclusion in the Borrowing
Base as set forth in subclauses (a) and (c) above. Notwithstanding the
foregoing, upon any Redetermination of the Borrowing Base pursuant to Section
4.4 or Section 4.6 hereof which results in a Borrowing Base Deficiency (or
increase in an existing Borrowing Base Deficiency), Borrower shall immediately
make a mandatory prepayment of principal on the Revolving Loan in an amount
sufficient to eliminate such Borrowing Base Deficiency.

 

Section 4.6 Manti Redetermination. In addition to the other Redeterminations
provided for in this Article IV, Required Banks shall be permitted to make an
additional Redetermination of the Borrowing Base on each Manti Redetermination
Date (or as of a date shortly thereafter to be designated by Administrative
Agent in a notice to Borrower), pursuant to which Required Banks may reduce the
Borrowing Base by such amount as Required Banks shall determine in their sole
discretion as a result of any downward adjustment to the

 

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Purchase Price or Final Settlement Statement (as each such term is defined in
the Manti Acquisition Agreement).

 

Section 4.7 Borrowing Base As of Second Amendment Effective Date.
Notwithstanding anything to the contrary contained herein, the Borrowing Base in
effect during the period commencing on the Effective Date (as defined in the
Second Amendment) and ending on the effective date of the first Redetermination
after such Effective Date shall be $60,000,000.”

 

1.5 Amendment to Asset Disposition Covenant. Section 9.5 of the Credit Agreement
shall be amended to read in full as follows:

 

“Section 9.5 Asset Dispositions. Borrower will not, nor will Borrower permit any
other Credit Party to, sell, lease, transfer, abandon or otherwise dispose of
any asset other than (a) the sale in the ordinary course of business of
Hydrocarbons produced from Borrower’s Mineral Interests, and (b) provided no
Event of Default or Borrowing Base Deficiency exists, the sale, lease, transfer,
abandonment, exchange or other disposition of other assets; provided, that, no
sale, lease, transfer, abandonment, exchange or other disposition by Borrower or
any of its Subsidiaries of Borrowing Base Properties with an aggregate value
(which, in the case of assets consisting of Mineral Interests, shall be the
Recognized Value of such Mineral Interests and, in the case of any exchange,
shall be the net value or net Recognized Value realized or resulting from such
exchange) in any period between Scheduled Redeterminations (for purposes of this
clause (b) the Closing Date will be deemed to be a Scheduled Redetermination) in
excess of five percent (5%) of the Borrowing Base then in effect shall be
permitted pursuant to this clause (b) unless each of the following conditions is
satisfied: (i) Borrower shall have provided Administrative Agent with not less
than ten (10) Domestic Business Days written notice of such sale, lease,
transfer, abandonment, exchange or other disposition, which notice shall include
a specific description of the assets to be sold, leased, transferred, abandoned,
exchanged or otherwise disposed, (ii) any Redetermination of the Borrowing Base
pursuant to Section 4.4 hereof shall have occurred, (iii) all mandatory
prepayments required by Section 2.6 in connection with such sale, lease,
transfer, abandonment, exchange or other disposition are made concurrently with
the closing thereof, (iv) no Borrowing Base Deficiency will exist after
consummation of such sale, lease, transfer, abandonment, exchange or other
disposition (and application of the proceeds thereof to the mandatory
prepayments required by Section 2.6), and (v) no Default has occurred which is
continuing. In no event will Borrower sell, transfer or dispose of any Equity in
any Subsidiary nor will any Credit Party issue or sell any Equity or any option,
warrant or other right to acquire such Equity or security convertible into such
Equity to any Person other than the Credit Party which is the direct parent of
such issuer on the Closing Date.”

 

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1.6 Amendment to Financial Covenant. Section 10.2 of the Credit Agreement shall
be amended and restated in its entirety to read in full as follows:

 

“Section 10.2 Consolidated Net Debt to Consolidated EBITDAX. As of the end of
the Fiscal Quarter ending December 31, 2004, Borrower will not permit its ratio
of Consolidated Total Debt as of the end of such Fiscal Quarter to Consolidated
EBITDAX for the four (4) Fiscal Quarter period then ended to be greater than 3.0
to 1.0. As of the end of any Fiscal Quarter thereafter ending on or prior to
June 30, 2006, commencing with the Fiscal Quarter ending March 31, 2005,
Borrower will not permit its ratio of Consolidated Net Debt as of the end of
such Fiscal Quarter to Consolidated EBITDAX for the four (4) Fiscal Quarter
period then ended to be greater than 3.5 to 1.0. As of the end of any Fiscal
Quarter thereafter, commencing with the Fiscal Quarter ending September 30,
2006, Borrower will not permit its ratio of Consolidated Net Debt as of the end
of such Fiscal Quarter to Consolidated EBITDAX for the four (4) Fiscal Quarter
period then ended to be greater than 3.0 to 1.0.”

 

1.7 Schedule 1.1. Schedule 1.1 to the Credit Agreement is hereby amended and
restated in its entirety in the form of Schedule 1.1 attached to this Second
Amendment.

 

1.8 Schedule 7.13. Schedule 7.13 to the Credit Agreement is hereby amended and
restated in its entirety in the form of Schedule 7.13 attached to this Second
Amendment.

 

SECTION 2. Borrowing Base. In reliance on the representations, warranties,
covenants and agreements contained in the Credit Agreement and this Second
Amendment, and subject to the satisfaction of each condition precedent set for
in Section 4 hereof, Borrower, Administrative Agent and each Bank agree that the
Borrowing Base in effect for the period from and after the Effective Date until
the next Redetermination thereafter shall be $60,000,000. Borrower,
Administrative Agent and Banks agree that the Redetermination provided for in
this Section 2 shall not be construed or deemed to be a Special Redetermination
for purposes of Section 4.3 of the Credit Agreement.

 

SECTION 3. Consent and Waiver. Borrower has requested that Banks (a) consent to
the Debt Issuance (as such term is defined in the Credit Agreement, as amended
through and including the Effective Date) and (b) waive any provision of the
Credit Agreement and the other Loan Papers to the extent such provisions
prohibit the consummation of such transaction. In reliance on the
representations, warranties, covenants and agreements contained in the Credit
Agreement and this Second Amendment, and subject to the satisfaction of the
conditions precedent set forth in Section 4 hereof (and in the Credit Agreement,
as amended through and including the Effective Date), Banks hereby (A) consent
to the Debt Issuance, provided such issuance is consummated on or prior to March
31, 2005, and (B) waive any provision of the Credit Agreement and the other Loan
Papers to the extent such provisions prohibit the consummation of the Debt
Issuance. The consents and waivers contained in this Section 3 are limited
solely to the Debt Issuance, and the applicable provisions of the Credit
Agreement to the extent they prohibit the consummation of such transaction, and
solely for the time period set forth above. Nothing contained herein shall be
deemed (1) a consent to any action other than the consummation of the Debt
Issuance within the applicable time period set forth above, or (2) a

 

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waiver of any provisions of the Credit Agreement or any other Loan Paper except
to the extent any such provision prohibits the consummation of such transaction.

 

SECTION 4. Conditions Precedent. The effectiveness of the amendments to the
Credit Agreement contained in Section 1 hereof is subject to the satisfaction of
each condition precedent set forth in this Section 4:

 

4.1 Notes. Administrative Agent shall have received a Note payable to the order
of each Bank (as applicable), each in the amount of such Bank’s Commitment after
giving effect to the Assignment and Acceptance Agreements referenced in the
recitals hereto.

 

4.2 Facility Guaranty. Administrative Agent shall have received a Facility
Guaranty duly completed and executed by Castle.

 

4.3 Pledge Acknowledgment. Administrative Agent shall have received a Pledge
Acknowledgement, in the form attached to the Borrower Pledge Agreement, duly
completed and executed by Borrower and Castle, pursuant to which the Equity of
Castle owned by Borrower shall be and become a part of the “Pledged Equity”
under and as defined in the Borrower Pledge Agreement.

 

4.4 Debt Issuance. Prior to the consummation of the Debt Issuance,
Administrative Agent shall have received fully executed copies of the Permitted
Senior Unsecured Debt Documents (as defined in the Credit Agreement, as amended
through and including the Effective Date) and other material documents,
instruments and agreements evidencing the terms and conditions of the Permitted
Senior Unsecured Debt, together with a certificate from an Authorized Officer of
certifying that (1) such copies are accurate and complete and represent the
complete understanding and agreement of the parties thereto, and (2) no material
right or obligation of any party thereto has been modified, amended or waived.

 

4.5 Officer’s Certificate; Opinions, etc. Borrower shall have delivered, or
cause to be delivered, to Administrative Agent a certificate of an Authorized
Officer of Castle, certificates of Governmental Authorities, a certified copy of
the certificate of limited partnership and limited partnership agreement of
Castle, certified copies of resolutions of the general partner of Castle and
such other documents, instruments and agreements and an opinion of counsel to
Castle to evidence the valid corporate existence and authority to conduct
business of Castle and the due authorization, execution and delivery of the
Facility Guaranty and any other documents related thereto, all in a form and
substance satisfactory to Administrative Agent and its counsel.

 

4.6 No Defaults. Prior to and after giving effect to the amendments contained in
Section 1 hereof, no Default, Event of Default or Borrowing Base Deficiency
shall exist.

 

4.7 Fees and Expenses. Borrower shall have paid (a) all fee and amounts as
Borrower shall be required to pay to Administrative Agent and its Affiliates
pursuant to any separate agreement between or among Borrower, Administrative
Agent and/or its

 

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Affiliates, and (b) all reasonable fees and expenses incurred by Administrative
Agent in connection with the preparation, negotiation and execution of this
Second Amendment, including, without limitation, all reasonable fees and
expenses of Vinson & Elkins L.L.P., counsel to Administrative Agent.

 

4.8 Other Documentation. Administrative Agent shall have received such other
documents, instruments and agreements as it or any Bank may reasonably request,
all in form and substance reasonably satisfactory to Administrative Agent and
Banks.

 

SECTION 5. Representations and Warranties of Borrower. To induce Banks and
Administrative Agent to enter into this Second Amendment, Borrower hereby
represents and warrants to Banks and Administrative Agent as follows:

 

5.1 Due Authorization; No Conflict. The execution, delivery and performance by
Borrower of this Second 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 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 except Permitted Encumbrances.

 

5.2 Validity and Enforceability. This Second 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.

 

5.3 Accuracy of Representations and Warranties. Each representation and warranty
of each Credit Party contained in the Loan Papers is true and correct in all
material respects as of the date hereof (except to the extent such
representations and warranties are expressly made as of a particular date, in
which event such representations and warranties were true and correct as of such
date).

 

5.4 Absence of Defaults. Prior to and after giving effect to the amendments
contained in Section 1 hereof, no Default or Event of Default has occurred which
is continuing.

 

5.5 No Defense. Borrower has no defense to payment of, or any counterclaim or
rights of set-off with respect to, all or any portion of the Obligations.

 

SECTION 6. Miscellaneous.

 

6.1 Reaffirmation of Loan Papers. Any and all of the terms and provisions of the
Credit Agreement and the Loan Papers shall, except as amended and modified
hereby, remain in full force and effect, and are hereby ratified and confirmed.
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.

 

11

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

6.2 Confirmation of Loan Papers and Liens. As a material inducement to Banks to
make the agreements and grant the consents, waivers and amendments set forth
herein, Borrower hereby (a) acknowledges and confirms the continuing existence,
validity and effectiveness of the Loan Papers and the Liens granted thereunder,
(b) agrees that the execution, delivery and performance of this Second Amendment
and the consummation of the transaction contemplated hereby shall not in any way
release, diminish, impair, reduce or otherwise adversely affect such Loan Papers
and Liens, and (c) acknowledges and agrees that the Liens granted under the Loan
Papers secure, and after the consummation of the transactions contemplated
hereby will continue to secure, the payment and performance of the Obligations
as first priority perfected Liens.

 

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

 

6.4 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 Second
Amendment.

 

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

 

6.6 Complete Agreement. THIS SECOND AMENDMENT, THE CREDIT AGREEMENT AND THE
OTHER LOAN PAPERS 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.

 

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

 

6.8 Effectiveness. This Second Amendment shall be effective automatically and
without necessity of any further action by Borrower, Administrative Agent or
Banks when counterparts hereof have been executed by Borrower, Administrative
Agent and Required Banks, and all conditions to the effectiveness hereof set
forth herein and in the Credit Agreement have been satisfied (including, without
limitation, all conditions precedent set forth in Section 4 hereof).

 

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

 

[Signature pages to follow]

 

12

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

 

SIGNATURE PAGE TO

SECOND AMENDMENT TO CREDIT AGREEMENT

BY AND AMONG

DELTA PETROLEUM CORPORATION, AS BORROWER,

JPMORGAN CHASE BANK, N.A., AS ADMINISTRATIVE AGENT

AND THE BANKS PARTY THERETO

 

BORROWER:

DELTA PETROLEUM CORPORATION,

a Colorado corporation

By:  

/s/ Kevin K. Nanke

Name:

 

Kevin K. Nanke

Title:

 

Chief Financial Officer and Treasurer

 

Each of the undersigned (i) consent and agree to this Second Amendment, and (ii)
agree that the Loan Papers to which it is a party shall remain in full force and
effect and shall continue to be the legal, valid and binding obligation of such
Person, enforceable against it in accordance with its terms.

 

ACKNOWLEDGED AND AGREED TO BY:

DELTA EXPLORATION COMPANY, INC.,

a Colorado corporation

By:  

/s/ Kevin K. Nanke

Name:

 

Kevin K. Nanke

Title:

 

Chief Financial Officer

PIPER PETROLEUM COMPANY,

a Colorado corporation

By:  

/s/ Kevin K. Nanke

Name:

 

Kevin K. Nanke

Title:

 

Chief Financial Officer

 

[SIGNATURE PAGE]

 

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

 

SIGNATURE PAGE TO

SECOND AMENDMENT TO CREDIT AGREEMENT

BY AND AMONG

DELTA PETROLEUM CORPORATION, AS BORROWER,

JPMORGAN CHASE BANK, N.A., AS ADMINISTRATIVE AGENT

AND THE BANKS PARTY THERETO

 

ADMINISTRATIVE AGENT:

JPMORGAN CHASE BANK, N.A.,

as Administrative Agent

By:  

/s/ J. Scott Fowler

   

J. Scott Fowler,

   

Vice President

BANKS: JPMORGAN CHASE BANK, N.A. By:  

/s/ J. Scott Fowler

   

J. Scott Fowler,

   

Vice President

 

[SIGNATURE PAGE]

 

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

 

SIGNATURE PAGE TO

SECOND AMENDMENT TO CREDIT AGREEMENT

BY AND AMONG

DELTA PETROLEUM CORPORATION, AS BORROWER,

JPMORGAN CHASE BANK, N.A., AS ADMINISTRATIVE AGENT

AND THE BANKS PARTY THERETO

 

BANK OF OKLAHOMA, N.A. By:  

/s/ Thomas M. Foncannon

   

Thomas M. Foncannon

   

Senior Vice President

 

[SIGNATURE PAGE]

 

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

 

SIGNATURE PAGE TO

SECOND AMENDMENT TO CREDIT AGREEMENT

BY AND AMONG

DELTA PETROLEUM CORPORATION, AS BORROWER,

JPMORGAN CHASE BANK, N.A., AS ADMINISTRATIVE AGENT

AND THE BANKS PARTY THERETO

 

U.S. BANK NATIONAL ASSOCIATION By:  

/s/ Kathryn A. Gaiter

   

Kathryn A. Gaiter,

   

Vice President

 

[SIGNATURE PAGE]

 

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

 

SIGNATURE PAGE TO

SECOND AMENDMENT TO CREDIT AGREEMENT

BY AND AMONG

DELTA PETROLEUM CORPORATION, AS BORROWER,

JPMORGAN CHASE BANK, N.A., AS ADMINISTRATIVE AGENT

AND THE BANKS PARTY THERETO

 

HIBERNIA NATIONAL BANK By:  

/s/ Daria Mahoney

   

Daria Mahoney,

   

Vice President

 

[SIGNATURE PAGE]

 

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

 

SIGNATURE PAGE TO

SECOND AMENDMENT TO CREDIT AGREEMENT

BY AND AMONG

DELTA PETROLEUM CORPORATION, AS BORROWER,

JPMORGAN CHASE BANK, N.A., AS ADMINISTRATIVE AGENT

AND THE BANKS PARTY THERETO

 

COMERICA BANK By:  

/s/ Peter L. Sefzik

Name:

 

Peter L. Sefzik

Title:

 

Vice President

 

[SIGNATURE PAGE]

 

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

 

SIGNATURE PAGE TO

SECOND AMENDMENT TO CREDIT AGREEMENT

BY AND AMONG

DELTA PETROLEUM CORPORATION, AS BORROWER,

JPMORGAN CHASE BANK, N.A., AS ADMINISTRATIVE AGENT

AND THE BANKS PARTY THERETO

 

BANK OF SCOTLAND By:  

/s/ Karen Welch

Name:

 

Karen Welch

Title:

 

Assistant Vice President

 

[SIGNATURE PAGE]

 

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

 

SCHEDULE 1.1

 

Financial Institutions

 

BANKS

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

   COMMITMENT AMOUNT

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

   COMMITMENT PERCENTAGE

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

JPMorgan Chase Bank, N.A.

   $40,000,000.00    20.00%

Bank of Oklahoma, N.A.

   $40,000,000.00    20.00%

U.S. Bank National Association

   $40,000,000.00    20.00%

Hibernia National Bank

   $26,666,666.67    13.3333333334%

Comerica Bank

   $26,666,666.67    13.3333333333%

Bank of Scotland

   $26,666,666.66    13.3333333333%

Totals:

   $200,000,000    100.00%

 

BANKS

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

    

DOMESTIC LENDING OFFICE

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

    

EURODOLLAR LENDING OFFICE

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

    

ADDRESS FOR NOTICE

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

JPMorgan Chase Bank, N.A.     

131 South Dearborn

Mail Code IL1-0010

Chicago, Illinois 60603

Attn: Deborah Turner

Tel. No. (312) 385-7081

Fax No. (312) 385-7097

e-mail: deborah_a_turner@bankone.com

    

131 South Dearborn

Mail Code IL1-0010

Chicago, Illinois 60603

Attn: Deborah Turner

Tel. No. (312) 385-7081

Fax No. (312) 385-7097

e-mail: deborah_a_turner@bankone.com

    

131 South Dearborn

Mail Code IL1-0010

Chicago, Illinois 60603

Attn: Deborah Turner

Tel. No. (312) 385-7081

Fax No. (312) 385-7097

e-mail: deborah_a_turner@bankone.com

Bank of Oklahoma, N.A.     

1625 Broadway

Suite 1570

Denver, Colorado 80202

Attn: Mary Anne Anderson

Tel No. (303) 534-9465

Fax No. (303) 534-9499

e-mail: manderson@bokf.com

    

1625 Broadway

Suite 1570

Denver, Colorado 80202

Attn: Mary Anne Anderson

Tel No. (303) 534-9465

Fax No. (303) 534-9499

e-mail: manderson@bokf.com

    

1625 Broadway

Suite 1570

Denver, Colorado 80202

Attn: Allen Rheem

Tel No. (303) 534-9463

Fax No. (303) 534-9499

e-mail: hrheem@bokf.com

U.S. Bank National Association     

555 SW Oak

PD-OR-P7LS

Portland, Oregon 97208

Attn: Josie Butalid

Tel No. (503) 275-7861

Fax No. (503) 275-8181

    

555 SW Oak

PD-OR-P7LS

Portland, Oregon 97208

Attn: Josie Butalid

Tel No. (503) 275-7861

Fax No. (503) 275-8181

    

918 Seventeenth Street

DN-CO-BB3E

Denver, Colorado 80202

Attn: Kathryn A. Gaiter

Tel No. (303) 585-4210

Fax No. (303) 585-4362

e-mail: kathryn.gaiter@usbank.com

Hibernia National Bank     

313 Carondelet Street

New Orleans, Louisiana 70130

Attn: Joyce Baker

Tel No. (504) 533-5352

Fax No. (504) 533-5434

e-mail: jbaker@hibernia.com

    

313 Carondelet Street

New Orleans, Louisiana 70130

Attn: Joyce Baker

Tel No. (504) 533-5352

Fax No. (504) 533-5434

e-mail: jbaker@hibernia.com

    

313 Carondelet Street

New Orleans, Louisiana 70130

Attn: Daria M. Mahoney

Tel No. (504) 533-2589

Fax No. (504) 533-5434

e-mail: dmahoney@hibernia.com

Comerica Bank     

1601 Elm Street

2nd Floor

Dallas, Texas 75201

Attn: Peter L. Sefzik

Tel No. (214) 969-6538

Fax No. (214) 969-6561

e-mail: peter_l_sefzik@comerica.com

    

1601 Elm Street

2nd Floor

Dallas, Texas 75201

Attn: Peter L. Sefzik

Tel No. (214) 969-6538

Fax No. (214) 969-6561

e-mail: peter_l_sefzik@comerica.com

    

1601 Elm Street

2nd Floor

Dallas, Texas 75201

Attn: Peter L. Sefzik

Tel No. (214) 969-6538

Fax No. (214) 969-6561

e-mail: peter_l_sefzik@comerica.com

 

Schedule 1.1 - 1

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

 

BANKS

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

  

DOMESTIC LENDING OFFICE

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

  

EURODOLLAR LENDING OFFICE

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

  

ADDRESS FOR NOTICE

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

Bank of Scotland   

______________________

______________________

______________________

Attn:__________________

Tel No. (___) ___-____

Fax No. (___) ___-____

e-mail: _________________

  

______________________

______________________

______________________

Attn:__________________

Tel No. (___) ___-____

Fax No. (___) ___-____

e-mail: _________________

  

______________________

______________________

______________________

Attn:__________________

Tel No. (___) ___-____

Fax No. (___) ___-____

e-mail: _________________

 

Administrative Agent - Address:

1717 Main Street, 4th Floor

Mail Code TX1-2448

Dallas, Texas 75201

Attn: J. Scott Fowler

Tel. No. (214) 290-2162

Fax No. (214) 290-2332

 

Schedule 1.1 - 2

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

 

SCHEDULE 7.13

 

Organizational Structure

 

1. Credit Party: Delta Petroleum Corporation (“Borrower”)

 

Jurisdiction of Incorporation: Colorado

 

Jurisdiction of Qualification as a Foreign Corporation: Alabama, California,
Kansas, Louisiana, Michigan, Montana, North Dakota, Pennsylvania, South Dakota,
Texas and Wyoming.

 

Authorized, issued and outstanding Equity of Borrower:

 

Authorized:   Common Stock, $0.01 par value, 300,000,000 shares     Preferred
Stock, $0.10 par value, 3,000,000 shares Issued and Outstanding:   39,349,449
shares of Common Stock     No shares of Preferred Stock

 

Outstanding warrants, options, subscription rights, convertible securities or
other rights to Equity of Borrower: See Attachment.

 

2. Credit Party: Delta Exploration Company, Inc. (“DEC”)

 

Jurisdiction of Incorporation: Colorado

 

Jurisdiction of Qualification as a Foreign Corporation: Alabama and
Pennsylvania.

 

Authorized, issued and outstanding Equity of DEC:

 

Authorized:   Common Stock, $0.01 par value, 300,000,000 shares     Preferred
Stock, $0.10 par value, 3,000,000 shares Issued and Outstanding:   100 shares of
Common Stock     No shares of Preferred Stock

 

Outstanding warrants, options, subscription rights, convertible securities or
other rights to Equity of DEC: None.

 

3. Credit Party: Piper Petroleum Company (“Piper”)

 

Jurisdiction of Incorporation: Colorado

 

Jurisdiction of Qualification as a Foreign Corporation: None.

 

Schedule 7.13 - 1

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

Authorized, issued and outstanding Equity of Piper:

 

Authorized:   Common Stock, $0.01 par value, 1,000 shares Issued and
Outstanding:   100 shares

 

Outstanding warrants, options, subscription rights, convertible securities or
other rights to Equity of Piper: None.

 

4. Credit Party: Castle Texas Exploration Limited Partnership (“Castle”)

 

Jurisdiction of Organization: Texas

 

Jurisdiction of Qualification as a Foreign Corporation: None.

 

Authorized, issued and outstanding Equity of Castle:

 

Issued and Outstanding:               % general partner interest held by
Borrower                 % limited partner interest held by Borrower

 

Outstanding warrants, options, subscription rights, convertible securities or
other rights to Equity of Castle: None.

 

Schedule 7.13 - 2

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

 

Delta Petroleum Corporation

Options/Warrants Outstanding

September 30, 2004

 

Inside Incentive Plan

 

Name

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

              Expiration Date

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

   Options/Warrants
Granted

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

   Option/Warrant
Price

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

   Cash to Delta

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

   Total
Options/Warrants
Outstanding

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

Aleron H. Larson, Jr.               09/01/08    160,000    0.0500    8,000.00   
                  11/05/09    100,000    1.7500    175,000.00                
07/14/00    07/14/10    300,000    3.7500    1,125,000.00                     
10/09/10    250,000    5.0000    1,250,000.00                 01/08/01   
01/08/11    200,000    3.2900    658,000.00                 08/26/03    08/26/13
   500,000    5.2900    2,645,000.00                 10/05/01    10/05/11   
175,000    2.3800    416,500.00    1,685,000 Roger A. Parker          07/14/00
   07/14/10    300,000    3.7500    1,125,000.00                      10/09/10
   250,000    5.0000    1,250,000.00                 01/08/01    01/08/11   
200,000    3.2900    658,000.00                 08/26/03    08/26/13    500,000
   5.2900    2,645,000.00                 10/05/01    10/05/11    175,000   
2.3800    416,500.00    1,425,000 Dawn Cretti          07/14/00    07/14/10   
2,500    3.7500    9,375.00      Kevin Nanke               09/01/08    34,047   
1.1250    38,302.88                      12/10/08    25,000    1.5625   
39,062.50                      05/12/09    100,000    1.7500    175,000.00     
                11/05/09    75,000    1.7500    131,250.00                
07/14/00    07/14/10    125,000    3.7500    468,750.00                 01/08/01
   01/08/11    100,000    3.2900    329,000.00                 08/26/03   
08/26/13    250,000    5.2900    1,322,500.00                 10/05/01   
10/05/11    100,000    2.3800    238,000.00    809,047 David Castaneda         
     11/14/06    0    6.0000    0.00                      11/14/06    25,000   
9.7500    243,750.00    25,000 Jerrie Eckelberger               12/31/06    725
   2.9800    2,160.50                 02/04/04    02/04/14    20,000    2.3100
   46,200.00    20,725 John Keller          02/07/03    02/07/13    20,000   
1.8700    37,400.00                 02/04/04    02/04/14    20,000    2.3100   
46,200.00    40,000 Russel Lewis          02/07/03    02/07/13    20,000   
1.8700    37,400.00                 02/04/04    02/04/14    20,000    2.3100   
46,200.00    40,000 James Wallace          02/05/02    02/05/12    2,500   
2.0200    5,050.00                 02/07/03    02/07/13    20,000    1.8700   
37,400.00                 02/04/04    02/04/14    20,000    2.3100    46,200.00
   42,500 Tracy Davison          10/05/01    10/05/11    2,500    2.3800   
5,950.00    2,500 Kent Lina          03/21/01    03/21/11    10,000    4.5625   
45,625.00                 03/21/01    03/22/11    20,000    4.5625    91,250.00
                03/21/01    03/23/11    20,000    4.5625    91,250.00    50,000
John Wallace          12/08/03    12/08/13    200,000    5.4400    1,088,000.00
     Wayne Wise    *     12/08/03    12/08/07    10,000    5.4400    54,400.00
     Karl Oserbuhr    * *   12/08/03    12/08/07    15,000    5.4400   
81,600.00      Lylle Coe    * *   12/08/03    12/08/07    25,000    5.4400   
136,000.00      Randy Arnold    * *   12/08/03    12/08/07    10,000    5.4400
   54,400.00      Gary Casteel    * *   03/01/04    03/01/08    25,000    9.0400
   226,000.00     

 

Schedule 7.13 - 3

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

Delta Petroleum Corporation

Options/Warrants Outstanding

September 30, 2004

 

Bob Dale    * *   03/01/04    03/01/08    12,000    9.0400      108,480.00     
Sapphire Falls    * *   03/01/04    03/01/08    5,000    9.0400      45,200.00
     Terry Hoffman    * *   03/01/04    03/01/08    8,000    9.0400     
72,320.00      Jacinda Nettik    * *   03/01/04    03/01/08    7,000    9.0400
     63,280.00      Jamie Ainsley          03/28/03    03/28/07    4,000   
3.3000      13,200.00      Cathy Lewis          03/28/03    03/28/07    5,000   
3.3000      16,500.00      Dayla Quest          03/28/03    03/28/07    5,000   
3.3000      16,500.00      Dawn Bradley          08/07/02    08/07/06    3,000
   3.2000      9,600.00      Nancy Broustuen          08/07/02    08/07/06   
3,500    3.2000      11,200.00      Victoria Crile          08/07/02    08/07/06
   5,000    3.2000      16,000.00      John Hopkinson          08/07/02   
08/07/06    5,000    3.2000      16,000.00      Laura Jividen          08/07/02
   08/07/06    5,000    3.2000      16,000.00      Timothy Phillips Jr.         
08/07/02    08/07/06    2,500    3.2000      8,000.00      Kenneth Radigan Jr.
         08/07/02    08/07/06    4,170    3.2000      13,344.00      Timothy
Smith          08/07/02    08/07/06    5,000    3.2000      16,000.00     
Snaryn Thompson          08/07/02    08/07/06    5,000    3.2000      16,000.00
     Gloria Vasquez          08/07/02    08/07/06    5,000    3.2000     
16,000.00      Julie Whalen          08/07/02    08/07/06    5,000    3.2000   
  16,000.00      Patty Christopher          08/07/02    08/07/06    15,000   
3.2000      48,000.00      Kent Harmony          08/07/02    08/07/06    15,000
   3.2000      48,000.00      Timothy Murin          08/07/02    08/07/06   
15,000    3.2000      48,000.00      Kent Lina          08/07/02    08/07/06   
10,000    3.2000      32,000.00      Cory Knote    * *   03/29/04    03/29/08   
14,000    10.9700      153,580.00      Donald Kincheloe    * *   04/04/04   
04/01/08    21,000    10.8000      226,800.00      Anthony Koester    * *  
04/16/04    04/16/08    5,000    11.6000      58,000.00      Michael McGinnis   
* *   04/16/04    04/16/08    5,000    11.6000      58,000.00      HL Darby    *
*   04/16/04    04/16/08    5,000    11.6000      58,000.00      Joshua Platt   
* *   05/01/04    05/01/08    10,000    13.4300      134,300.00      Greg Olson
   * *   05/25/04    05/25/08    23,000    13.3100      306,130.00              
           

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

       

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

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

    

*       Vesting over 4 years

                   4,659,442         $ 19,206,109.88                          

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

       

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

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

    

**     Vesting After 1 year

                                      Average Price per Option inside the Plan
                             $ 4.12                                    

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

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

                                                                  4,659,442     
                                

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

                 Average Price per Option inside and outside the Plan           
                  $ 4.12                                    

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

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

    

 

Schedule 7.13 - 4