Exhibit 10.3

 

 

FOURTH AMENDMENT TO

SECOND AMENDED AND RESTATED CREDIT AGREEMENT

Dated December 7, 2012

Among

RESOLUTE ENERGY CORPORATION,

as Borrower,

CERTAIN OF ITS SUBSIDIARIES,

as Guarantors,

WELLS FARGO BANK, NATIONAL ASSOCIATION,

as Administrative Agent,

and

The Lenders Party Hereto

 

 

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THIS FOURTH AMENDMENT TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT (this
“Fourth Amendment”), dated as of December 7, 2012, is by and among Resolute
Energy Corporation, a Delaware corporation (the “Borrower”), certain of its
subsidiaries (collectively, the “Guarantors”), Wells Fargo Bank, National
Association, as Administrative Agent (the “Administrative Agent”) and the
lenders party hereto (the “Lenders”).

Recitals

WHEREAS, the Borrower, the Guarantors, the Administrative Agent and the other
lenders party thereto entered into that certain Second Amended and Restated
Credit Agreement, dated as of March 30, 2010 (as amended by the First Amendment
to Second Amended and Restated Credit Agreement dated April 18, 2011, the Second
Amendment to Second Amended and Restated Credit Agreement dated April 25, 2011
and the Third Amendment to Second Amended and Restated Credit Agreement dated as
of April 13, 2012 and as the same may be further amended, modified, supplemented
or restated from time to time, the “Credit Agreement”);

WHEREAS, the Borrower has requested that the Administrative Agent and the
Lenders amend the Credit Agreement as set forth herein; and

WHEREAS, subject to the satisfaction of the conditions set forth herein, the
Administrative Agent and the Lenders are willing to amend the Credit Agreement
as provided herein.

NOW, THEREFORE, in consideration of the premises and the mutual covenants
contained herein and in the Credit Agreement, and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the
parties hereto, intending to be legally bound, hereby agree as follows:

ARTICLE I

Definitions

Each capitalized term used in this Fourth Amendment and not defined herein shall
have the meaning assigned to such term in the Credit Agreement. Unless otherwise
indicated, all section references in this Fourth Amendment refer to sections of
the Credit Agreement.

 

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ARTICLE II

Amendments

Section 2.01 Amendments to Section 1.02 of the Credit Agreement. Subject to
Article III of this Fourth Amendment, the Credit Agreement is amended as
follows:

(a) Section 1.02 of the Credit Agreement is hereby amended by adding the
following new definitions in their proper alphabetical order:

“‘Celero Acquisition’ means the acquisition of certain Oil and Gas Properties by
Resolute Natural Resources Southwest, LLC from Celero Energy II, LP and Caprock
Land & Cattle, LLC pursuant to that certain Purchase and Sale Agreement,
effective as of August 1, 2012.”

“‘Fourth Amendment’ means that certain Fourth Amendment to Second Amended and
Restated Credit Agreement, dated as of December 7, 2012, among the Borrower, the
Administrative Agent and the Lenders party thereto.”

“‘Fourth Amendment Effective Date’ means the first Business Day on which all of
the conditions precedent set forth in Article III of the Fourth Amendment shall
have been satisfied.”

(b) The definition of “Agreement” in Section 1.02 of the Credit Agreement is
hereby amended by deleting it in its entirety and inserting the following in
lieu thereof:

“‘Agreement’ means this Credit Agreement, as amended by the First Amendment, the
Second Amendment, the Third Amendment and the Fourth Amendment, as the same may
from time to time be amended, modified, supplemented or restated.”

Section 2.02 Amendment to Section 9.02(f). Section 9.02(f) of the Credit
Agreement is hereby amended by deleting it in its entirety and inserting the
following in lieu thereof:

“Unsecured Debt with a maturity date that is at least six (6) months after the
Maturity Date; provided that for each $1.00 of such unsecured Debt over
$400,000,000 incurred by the Loan Parties in the aggregate, the Borrowing Base
shall be reduced, effective immediately upon the incurrence of such unsecured
Debt, by $0.25 and any mandatory prepayments required by Section 3.04(c)(iii)
shall be made concurrently therewith; provided further, that if the Celero
Acquisition does not occur on or before February 26, 2013 and if such
outstanding unsecured Debt exceeds $275,000,000 on such date, the Borrowing Base
shall be reduced, effective immediately upon such date, by $0.25 for each $1.00
of such outstanding unsecured Debt in excess of $275,000,000.”

ARTICLE III

Conditions Precedent

This Fourth Amendment shall be subject to the satisfaction of the following
conditions precedent:

(a) The Administrative Agent shall have received from the Borrower, each of the
Guarantors and each of the Lenders party thereto, counterparts (in such number
as may be requested by the Administrative Agent) of this Fourth Amendment signed
on behalf of such Persons.

 

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(b) The Administrative Agent shall have received from the Borrower a true and
complete copy of the Purchase and Sale Agreement, effective as of August 1,
2012, among Celero Energy II, LP and Caprock Land & Cattle, LLC, as sellers, and
Resolute Natural Resources Southwest, LLC, as buyer, and duly executed by all
parties thereto, and such Purchase and Sale Agreement shall be in full force and
effect.

(c) The Administrative Agent and the Lenders shall have received all fees and
other amounts due and payable on or prior to the Fourth Amendment Effective
Date, including, 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.

ARTICLE IV

Representations and Warranties

Each Loan Party hereby represents and warrants to each Lender that:

(a) Each of the representations and warranties made by it under the Credit
Agreement and each other Loan Document is true and correct on and as of the
actual date of its execution of this Fourth Amendment, as if made on and as of
such date, except for any representations and warranties made as of a specified
date, which are true and correct as of such specified date.

(b) At the time of, and immediately after giving effect to, this Fourth
Amendment, no Default has occurred and is continuing.

(c) The execution, delivery and performance by it of this Fourth Amendment have
been duly authorized by it.

(d) This Fourth Amendment constitutes its legal, valid and binding obligation,
enforceable against it in accordance with its terms.

(e) The execution, delivery and performance by it of this Fourth Amendment
(i) does not require any consent or approval of, registration or filing with, or
any other action by, any Governmental Authority or any other third Person
(including shareholders or any class of directors, whether interested or
disinterested, of it or any other Person), nor is any such consent, approval,
registration, filing or other action necessary for the validity or
enforceability of this Fourth Amendment or any Loan Document or the consummation
of the transactions contemplated thereby, except such as have been obtained or
made and are in full force and effect other than those third party approvals or
consents which, if not made or obtained, would not cause a Default hereunder,
could not reasonably be expected to have a Material Adverse Effect or do not
have an adverse effect on the enforceability of the Loan Documents, (ii) will
not violate any applicable law or regulation or the charter, by-laws or other
organizational documents of it or any Restricted Subsidiary or any order of any
Governmental Authority, (iii) will not violate or result in a default under any
indenture, agreement or other instrument binding upon it or any Restricted
Subsidiary or its Properties, or give rise to a right thereunder to require any
payment to be made by the it or such Restricted Subsidiary and (iv) will not
result in the creation or imposition of any Lien on any Property of any Loan
Party or any Restricted Subsidiary (other than the Liens created by this Fourth
Amendment or the Loan Documents and any unexpired and unexercised Navajo
Preferential Right).

 

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ARTICLE V

Miscellaneous

Section 5.01 Credit Agreement in Full Force and Effect as Amended. Except as
specifically amended hereby, the Credit Agreement and other Loan Documents shall
remain in full force and effect and are hereby ratified and confirmed as so
amended. Except as expressly set forth herein, this Fourth Amendment shall not
be deemed to be a waiver, amendment or modification of any provisions of the
Credit Agreement or any other Loan Document or any right, power or remedy of the
Administrative Agent or Lenders, or constitute a waiver of any provision of the
Credit Agreement or any other Loan Document, or any other document, instrument
and/or agreement executed or delivered in connection therewith or of any Default
or Event of Default under any of the foregoing, in each case whether arising
before or after the date hereof or as a result of performance hereunder or
thereunder. This Fourth Amendment also shall not preclude the future exercise of
any right, remedy, power, or privilege available to the Administrative Agent
and/or Lenders whether under the Credit Agreement, the other Loan Documents, at
law or otherwise. All references to the Credit Agreement shall be deemed to mean
the Credit Agreement as modified hereby. The parties hereto agree to be bound by
the terms and conditions of the Credit Agreement and Loan Documents as amended
by this Fourth Amendment, as though such terms and conditions were set forth
herein. Each reference in the Credit Agreement to “this Agreement,” “hereunder,”
“hereof,” “herein” or words of similar import shall mean and be a reference to
the Credit Agreement as amended by this Fourth Amendment, and each reference
herein or in any other Loan Documents to the “Credit Agreement” shall mean and
be a reference to the Credit Agreement as amended and modified by this Fourth
Amendment.

Section 5.02 GOVERNING LAW. THIS FOURTH AMENDMENT, AND THE RIGHTS AND
OBLIGATIONS OF THE PARTIES HEREUNDER, SHALL BE CONSTRUED IN ACCORDANCE WITH AND
BE GOVERNED BY THE LAWS OF THE STATE OF NEW YORK.

Section 5.03 Descriptive Headings, Etc. The descriptive headings of the sections
of this Fourth Amendment are inserted for convenience only and shall not be
deemed to affect the meaning or construction of any of the provisions hereof.
The statements made and the terms defined in the recitals to this Fourth
Amendment are hereby incorporated into this Fourth Amendment in their entirety.

Section 5.04 Payment of Expenses. The Borrower agrees to pay or reimburse the
Administrative Agent for all of its reasonable out-of-pocket costs and expenses
incurred in connection with this Fourth Amendment, the Loan Documents and 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. The agreement set forth in
this Section 5.04 shall survive the termination of this Fourth Amendment and the
Credit Agreement.

Section 5.05 Entire Agreement. This Fourth Amendment and the documents referred
to herein represent the entire understanding of the parties hereto regarding the
subject matter hereof and supersede all prior and contemporaneous oral and
written agreements of the parties hereto with respect to the subject matter
hereof. This Fourth Amendment is a Loan Document executed under the Credit
Agreement.

 

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Section 5.06 Counterparts. This Fourth Amendment may be executed in any number
of counterparts and by different parties on separate counterparts, each of which
shall constitute an original but all of which when taken together shall
constitute but one agreement. Delivery of an executed counterpart of the
signature page of this Fourth Amendment by facsimile or other electronic
transmission shall be effective as delivery of a manually executed counterpart
thereof.

Section 5.07 Successors. The execution and delivery of this Fourth Amendment by
any Lender shall be binding upon each of its successors and assigns.

[Signatures Begin on Next Page]

 

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IN WITNESS WHEREOF, the parties hereto have caused this Fourth Amendment to be
duly executed by their respective authorized officers as of the date first
written above.

BORROWER:

 

    RESOLUTE ENERGY CORPORATION     By:  

/s/ James M. Piccone

      James M. Piccone       President GUARANTORS:     HICKS ACQUISITION COMPANY
I, INC.     RESOLUTE ANETH, LLC     RESOLUTE WYOMING, INC. (f/k/a Primary
Natural Resources, Inc.)     RESOLUTE NATURAL RESOURCES COMPANY, LLC (f/k/a
Resolute Natural Resources Company)     BWNR, LLC     WYNR, LLC     RESOLUTE
NORTHERN ROCKIES, LLC     RESOLUTE NATURAL RESOURCES SOUTHWEST, LLC     By:  

/s/ James M. Piccone

      James M. Piccone       President

 

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ADMINISTRATIVE AGENT AND LENDER:     WELLS FARGO BANK, NATIONAL ASSOCIATION,
successor-by-merger to Wachovia Bank, National Association, as Administrative
Agent and a Lender     By:  

/s/ Sarah Thomas

    Name:   Sarah Thomas     Title:   Vice President LENDER:     WELLS FARGO
BANK, NATIONAL ASSOCIATION     By:  

/s/ Sarah Thomas

    Name:   Sarah Thomas     Title:   Vice President

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LENDER:     BANK OF MONTREAL     By:  

/s/ Gumaro Tijerina

    Name:   Gumaro Tijerina     Title:   Director

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LENDER:     DEUTSCHE BANK TRUST COMPANY AMERICAS     By:  

/s/ Michael Getz

    Name:   Michael Getz     Title:   Vice President     By:  

/s/ Evelyn Thierry

    Name:   Evelyn Thierry     Title:   Director

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LENDER:     UNION BANK, N.A.     By:  

/s/ Zachary Holly

    Name:   Zachary Holly     Title:   Vice President

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LENDER:     BRANCH BANKING AND TRUST COMPANY     By:  

/s/ Deanna Breland

    Name:   Deanna Breland     Title:   Senior Vice President

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LENDER:     U.S. BANK NATIONAL ASSOCIATION     By:  

/s/ Jonathan H. Lee

    Name:   Jonathan H. Lee     Title:   Vice President

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LENDER:     BARCLAYS BANK PLC     By:  

/s/ Sreedhar R. Kona

    Name:   Sreedhar R. Kona     Title:   Assistant Vice President

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LENDER:     COMERICA BANK     By:  

/s/ Katya Evseev

    Name:   Katya Evseev     Title:   Assistant Vice President

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LENDER:     CAPITAL ONE, NATIONAL ASSOCIATION     By:  

/s/ Nancy M. Mak

    Name:   Nancy M. Mak     Title:   Senior Vice President

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LENDER:     CITIBANK, N.A.     By:  

/s/ Phil Ballard

    Name:   Phil Ballard     Title:   Vice President

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LENDER:     GUARANTY BANK AND TRUST COMPANY     By:  

/s/ Gail J. Nofsinger

    Name:   Gail J. Nofsinger     Title:   Senior Vice President