Exhibit 10.1

 

NINTH AMENDMENT TO COMBINED CREDIT AGREEMENTS

 

THIS NINTH AMENDMENT TO COMBINED CREDIT AGREEMENTS, dated as of June 22, 2004
(the “Amendment”), among Forest Oil Corporation, a New York corporation (the
“U.S. Borrower”), Canadian Forest Oil Ltd. (“Canadian Forest”) and each other
subsidiary of Canadian Forest which becomes a “Borrower” (as defined in the
Canadian Credit Agreement) under the Canadian Credit Agreement (the “Canadian
Borrowers”), each of the lenders that is a signatory to, or which becomes a
signatory to, the U.S. Credit Agreement (together with its successors and
assigns, the “U.S. Lenders”), each of the lenders that is a signatory to, or
which becomes a signatory to, the Canadian Credit Agreement (together with its
successors and assigns, the “Canadian Lenders”, and together with the U.S.
Lenders, the “Combined Lenders”), Bank of America, N.A., as U.S. Syndication
Agent, Citibank, N.A., as U.S. Documentation Agent, JPMorgan Chase Bank, Toronto
Branch, successor to J.P. Morgan Bank Canada, successor to The Chase Manhattan
Bank of Canada, as Canadian Administrative Agent, Bank of Montreal, as Canadian
Syndication Agent, The Toronto-Dominion Bank, as Canadian Documentation Agent,
and JPMorgan Chase Bank, successor to The Chase Manhattan Bank, as Global
Administrative Agent (in such capacity, together with its successors in such
capacity, the “Global Administrative Agent”).

 

W I T N E S S E T H:

 

1.                                       The U.S. Borrower, Global
Administrative Agent, the U.S. Syndication Agent, the U.S. Documentation Agent,
and the U.S. Lenders are parties to that certain Credit Agreement dated as of
October 10, 2000, as previously amended (as previously amended, the “U.S. Credit
Agreement”), pursuant to which the U.S. Lenders agreed to make loans to and
extensions of credit on behalf of the U.S. Borrower.

 

2.                                       The Canadian Borrowers, Global
Administrative Agent, the Canadian Administrative Agent, the Canadian
Syndication Agent, the Canadian Documentation Agent, and the Canadian Lenders
are parties to that certain Credit Agreement dated as of October 10, 2000, as
previously amended (as previously amended, the “Canadian Credit Agreement”, and
together with the U.S. Credit Agreement, the “Combined Credit Agreements”),
pursuant to which the Canadian Lenders agreed to make loans to and extensions of
credit on behalf of the Canadian Borrowers.

 

3.                                       The parties to the Combined Credit
Agreements intend to amend the Combined Credit Agreements as follows:

 

NOW, THEREFORE, in consideration of the premises and the mutual covenants herein
contained, the parties hereto agree as follows:

 

I.                                         Amendment to U.S. Credit Agreement.

 

Section 7.1(c)(i) of the U.S. Credit Agreement is amended by deleting the
reference to “U.S.$150,000,000” and inserting in lieu thereof
“U.S.$200,000,000”.

 

II.                                     Effectiveness.  This Amendment shall
become effective as of the date (the “Effective Date”) when the Global
Administrative Agent shall have received counterparts hereof

 

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duly executed by the U.S. Borrower, the Canadian Borrowers, the Global
Administrative Agent, the Canadian Administrative Agent and at least the
Required Lenders (or, in the case of any party as to which an executed
counterpart shall not have been received, telegraphic, telex, or other written
confirmation from such party of execution of a counterpart hereof by such
party).

 

III.                                 Reaffirmation of Representations and
Warranties.  To induce the Combined Lenders and the Global Administrative Agent
to enter into this Amendment, the U.S. Borrower and the Canadian Borrowers
hereby reaffirm, as of the date hereof, the following:

 

(i)                                     The representations and warranties of
each Loan Party (as such term is defined in the U.S. Credit Agreement and the
Canadian Credit Agreement, collectively, the “Combined Loan Parties”) set forth
in the Combined Loan Documents to which it is a party are true and correct on
and as of the date hereof (or, if stated to have been made expressly as of an
earlier date, were true and correct in all material respects as of such date).

 

(ii)                                  Each of the U.S. Borrower and its
Restricted Subsidiaries is duly organized, validly existing and in good standing
under the laws of the jurisdiction of its organization, has all requisite power
and authority to carry on its business as now conducted and, except where the
failure to do so, individually or in the aggregate, could not reasonably be
expected to result in a Material Adverse Effect, is qualified to do business in,
and is in good standing in, every jurisdiction where such qualification is
required.

 

(iii)                               The execution, delivery and performance by
U.S. Borrower of this Amendment and each other Combined Loan Document executed
or to be executed by it, and the execution, delivery and performance by each
other Combined Loan Party of this Amendment and each other Combined Loan
Document executed or to be executed by it, are within U.S. Borrower’s and each
such Combined Loan Party’s corporate, limited liability company and/or
partnership powers, and have been duly authorized by all necessary corporate,
limited liability company and/or partnership action, and if required,
stockholder, member and/or partner action.  This Amendment and each other
Combined Loan Document executed or to be executed by it has been duly executed
and delivered by U.S. Borrower and constitutes, and this Amendment and each
other Combined Loan Document executed or to be executed by any Combined Loan
Party, when executed and delivered by such Combined Loan Party, will constitute,
a legal, valid and binding obligation of U.S. Borrower or such Combined Loan
Party (as the case may be), enforceable in accordance with their respective
terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium
or other laws affecting creditors’ rights generally and subject to general
principles of equity, regardless of whether considered in a proceeding in equity
or at law.

 

(iv)                              The execution, delivery and performance by the
U.S. Borrower of this Amendment and each other Combined Loan Document executed
or to be executed by it, and the execution, delivery and performance by each
other Combined Loan Party of this Amendment and each Loan Document executed or
to be executed by such Combined Loan Party, (a) do not require any Governmental
Approval or third party approvals,

 

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except such as have been obtained or made and are in full force and effect and
except filings necessary to perfect Liens created under the Combined Loan
Documents, (b) will not violate any applicable Governmental Rule or the Organic
Documents of U.S. Borrower or any such Combined Loan Party or any order of any
Governmental Authority, (c) will not violate or result in a default under any
indenture, agreement or other instrument binding upon U.S. Borrower or any such
Combined Loan Party or its assets, or give rise to a right thereunder to require
any payment to be made by U.S. Borrower or any such Combined Loan Party, and (d)
will not result in the creation or imposition of any Lien on any asset of U.S.
Borrower or any such Combined Loan Party except Liens created under the Combined
Loan Documents.

 

(v)                                 No Default under the Combined Loan Documents
has occurred and is continuing and the U.S. Borrower is in compliance with the
financial covenants set forth in Article VI of the U.S. Credit Agreement.

 

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

 

IV.                                Defined Terms.  Except as amended hereby,
terms used herein when defined in the U.S. Credit Agreement shall have the same
meanings herein unless the context otherwise requires.

 

V.                                    Reaffirmation of Combined Credit
Agreements.  This Amendment shall be deemed to be an amendment to the Combined
Credit Agreements, and the Combined Credit Agreements, as amended hereby, are
hereby ratified, approved and confirmed in each and every respect.  All
references to the Combined Credit Agreements herein and in any other document,
instrument, agreement or writing shall hereafter be deemed to refer to the
Combined Credit Agreements as amended hereby.

 

VI.                                Governing Law.  THIS AMENDMENT SHALL BE
CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.

 

VII.                            Severability of Provisions. Any provision of
this Amendment held to be invalid, illegal or unenforceable in any jurisdiction
shall, as to such jurisdiction, be ineffective to the extent of such invalidity,
illegality or unenforceability without affecting the validity, legality and
enforceability of the remaining provisions hereof; and the invalidity of a
particular provision in a particular jurisdiction shall not invalidate such
provision in any other jurisdiction.

 

VIII.                        Counterparts. This Amendment may be executed in
counterparts (and by different parties hereto on different counterparts), each
of which shall constitute an original, but all of which when taken together
shall constitute a single contract.  Delivery of an executed counterpart of a
signature page of this Amendment by telecopy shall be effective as delivery of a
manually executed counterpart of this Amendment.

 

IX.                                Headings.  Article and section headings used
herein are for convenience of reference only, are not part of this Amendment and
shall not affect the construction of, or be taken into consideration in
interpreting, this Amendment.

 

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X.                                    Successors and Assigns.  This Amendment
shall be binding upon and inure to the benefit of the parties hereto and their
respective successors and assigns.

 

XI.                                No Oral Agreements.  THIS AMENDMENT, THE
COMBINED CREDIT AGREEMENTS, AS AMENDED HEREBY, AND THE OTHER COMBINED LOAN
DOCUMENTS REPRESENT THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE
CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL
AGREEMENTS OF THE PARTIES.

 

THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.

 

[SIGNATURES BEGIN ON FOLLOWING PAGE]

 

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IN WITNESS WHEREOF, the U.S. Borrower, the Canadian Borrowers, the undersigned
Combined Lenders, the Global Administrative Agent, and the other “agents” under
the Combined Credit Agreements have executed this Amendment as of the date first
above written.

 

 

U.S. BORROWER

 

 

 

FOREST OIL CORPORATION

 

 

 

 

 

By

:   /s/ CAROLINE M. MCCLURG

 

Name:

Caroline M. McClurg

 

Title:

Treasurer

 

 

 

 

 

CANADIAN BORROWERS

 

 

 

CANADIAN FOREST OIL LTD.

 

 

 

 

 

By:

/s/ JOAN C. SONNEN

 

Name:

Joan C. Sonnen

 

Title:

Vice President

 

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AGENTS AND COMBINED LENDERS

 

 

 

JPMORGAN CHASE BANK, successor to The Chase Manhattan Bank, as Global
Administrative Agent, as a U.S. Lender and as a Technical Lender

 

 

 

 

 

By

:  /s/ROBERT C. MERTENSOTTO

 

Name:

Robert C. Mertensotto

 

Title:

Managing Director

 

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BANK OF AMERICA, N.A., as U.S. Syndication Agent, as a U.S. Lender and as a
Technical Lender

 

 

 

 

 

By

:  /s/RICHARD L. STEIN

 

Name:

Richard L. Stein

 

Title:

Principal

 

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CITIBANK, N.A., as U.S. Documentation Agent, as a
U.S. Lender and as a Technical Lender

 

 

 

 

 

By

:  /s/ JORONNE JETER

 

Name:

Joronne Jeter

 

Title:

Attorney-in-Fact

 

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BANK OF MONTREAL, as a U.S. Lender

 

 

 

 

 

By

:  /s/ J.B. WHITMORE

 

Name:

J.B. Whitmore

 

Title:

Managing Director

 

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TORONTO DOMINION (TEXAS), INC., as a
U.S. Lender

 

 

 

 

 

By

:  /s/ NEVA NESBITT

 

Name:

Neva Nesbitt

 

Title:

Vice President

 

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ABN AMRO BANK N.V., as a U.S. Lender

 

 

 

 

 

By

:  /s/ JOHN D. REED

 

Name:

John D. Reed

 

Title:

Vice President

 

 

 

 

 

By:

/s/ QUANDRA L. KELLEY

 

Name:

Quandra L. Kelley

 

Title:

Assistant Vice President

 

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BANK OF SCOTLAND, as a U.S. Lender

 

 

 

 

 

By:

/s/ KAREN WORKMAN

 

Name:

Karen Workman

 

Title:

Assistant Vice President

 

S-8

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BANK ONE, NA (Main Office Chicago), as a U.S. Lender

 

 

 

 

 

By:

/s/ TOM K. MARTIN

 

Name:

Tom K. Martin

 

Title:

Associate Director

 

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MERITA BANK PLC, as a U.S. Lender

 

 

 

 

 

By:

 

 

Name:

 

Title:

 

 

 

 

 

By:

 

 

Name:

 

Title:

 

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FORTIS CAPITAL CORP., as a U.S. Lender

 

 

 

 

 

By:

/s/ DEIRDRE SANBORN

 

Name:

Deirdre Sanborn

 

Title:

Vice President

 

 

 

 

 

By:

/s/ DARRELL W. HOLLEY

 

Name:

Darrell W. Holley

 

Title:

Managing Director

 

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U.S. BANK NATIONAL ASSOCIATION, as a U.S. Lender

 

 

 

 

 

By:

 

 

Name:

 

Title:

 

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BNP PARIBAS, formerly Paribas, as a U.S. Lender

 

 

 

 

 

By:

/s/ DAVID DODD

 

Name:

David Dodd

 

Title:

Director

 

 

 

 

 

By:

/s/ BETSY JOCHER

 

Name:

Betsy Jocher

 

Title:

Vice President

 

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THE BANK OF NOVA SCOTIA, as a U.S. Lender

 

 

 

 

 

By:

/s/ NADINE BELL

 

Name:

Nadine Bell

 

Title:

Senior Manager

 

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CREDIT SUISSE FIRST BOSTON, as a U.S. Lender

 

 

 

 

 

By:

/s/ PAUL L. COLON

 

Name:

Paul L. Colon

 

Title:

Director

 

 

 

 

 

By:

/s/ VANESSA GOMEZ

 

Name:

Vanessa Gomez

 

Title:

Associate

 

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COMPASS BANK, as a U.S. Lender

 

 

 

 

 

By:

/s/ JOHN M. FALBO

 

Name:

John M. Falbo

 

Title:

Senior Vice President

 

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MIZUHO CORPORATE BANK, formerly The Fuji Bank, Limited, as a U.S. Lender

 

 

 

MIZUHO CORPORATE BANK, formerly The Industrial Bank of Japan, Limited, New York
Branch, as a U.S. Lender

 

 

 

 

 

By:

 

 

Name:

 

 

Title:

 

 

S-17

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THE BANK OF NEW YORK, as a U.S. Lender

 

 

 

 

 

By:

/s/ JOHN N. WATT

 

Name:

John N. Watt

 

Title:

Vice President

 

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HIBERNIA NATIONAL BANK, as a U.S. Lender

 

 

 

 

 

By:

/s/D. MAHONEY

 

Name:

Daria Mahoney

 

Title:

Vice President

 

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UFJ BANK, formerly known as The Sanwa Bank,
Limited, as a U.S. Lender

 

 

 

 

 

By:

/s/ CLYDE L. REDFORD

 

Name:

Clyde L. Redford

 

Title:

Senior Vice President

 

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SOCIETE GENERALE, SOUTHWEST AGENCY, as a U.S. Lender

 

 

 

 

 

By:

/s/ JOSH ROGERS

 

Name:

Josh Rogers

 

Title:

Vice President

 

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ING CAPITAL LLC, as a U.S. Lender

 

 

 

 

 

By:

/s/ SUBHA PASUMARTI

 

Name:

Subha Pasumarti

 

Title:

Director

 

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COMERICA BANK, successor by merger with Comerica Bank-Texas, as a U.S. Lender

 

 

 

 

 

By

/s/ PETER L. SEFZIK

 

Name:

Peter L. Sefzik

 

Title:

Vice President

 

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JPMORGAN CHASE BANK, TORONTO BRANCH, as Canadian Administrative Agent and as a
Canadian Lender

 

 

 

 

 

By:

/s/ D. MCDONALD

 

Name:

Drew McDonald

 

Title:

Vice President

 

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BANK OF MONTREAL, as Canadian Syndication Agent and as a Canadian Lender

 

 

 

 

 

By:

/s/ J.B. WHITMORE

 

Name:

J.B. Whitmore

 

Title:

Managing Director

 

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THE TORONTO-DOMINION BANK, as Canadian Documentation Agent and as a Canadian
Lender

 

 

 

 

 

By:

/s/ D. BRITO

 

Name:

Debbi Brito

 

Title:

Assistant Manager,
Corporate Credit Compliance

 

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BANK OF AMERICA, N.A., Canada Branch, as a Canadian Lender

 

 

 

 

 

By:

 

 

Name:

 

 

Title:

 

 

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WASHINGTON MUTUAL BANK, FA, as a U.S. Lender

 

 

 

 

 

By:

/s/ DAVID W. PHILLIPS

 

Name:

David W. Phillips

 

Title:

Vice President

 

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