Exhibit 10.1
CONFORMED COPY
 
 
ULTRA RESOURCES, INC.
FIRST SUPPLEMENT TO MASTER NOTE PURCHASE AGREEMENT
Dated as of March 5, 2009
$235,000,000 Senior Notes
$62,000,000 7.31% Senior Notes, Series 2009-A, due March 1, 2016
$173,000,000 7.77% Senior Notes, Series 2009-B, due March 1, 2019
 
 
Series 2009-A PPN: 90388@ AC5
Series 2009-B PPN: 90388@ AD3

 

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ULTRA RESOURCES, INC.
363 N Sam Houston Parkway E
Suite 1200
Houston Texas 77060
Phone: 281-876-0120
Fax: 281-876-2831
FIRST SUPPLEMENT TO MASTER NOTE PURCHASE
AGREEMENT DATED AS OF MARCH 6, 2008
Dated as of March 5, 2009
TO EACH OF THE PURCHASERS LISTED IN
     THE ATTACHED SCHEDULE A:
Ladies and Gentlemen:
     This First Supplement to Master Note Purchase Agreement (the “Supplement”
or “this Agreement”) is among ULTRA RESOURCES, INC., a Wyoming corporation (the
“Company”), and the institutional investors named on the attached Schedule A
(the “Purchasers”).
     Reference is hereby made to the Master Note Purchase Agreement dated as of
March 6, 2008 (the “Note Purchase Agreement”) between the Company and the
purchasers listed on Schedule A thereto. Capitalized terms not otherwise defined
herein shall have the meanings ascribed in the Note Purchase Agreement.
Reference is further made to Section 1.2 of the Note Purchase Agreement, which
provides that each series of Additional Notes will be issued pursuant to a
Supplement.
     The Company agrees with the Purchasers as follows:
     1. Authorization of the New Series of Additional Notes. The Company has
authorized the issue and sale of $235,000,000 aggregate principal amount of
Notes consisting of (i) $62,000,000 aggregate principal amount of its 7.31%
Senior Notes, Series 2009-A, due March 1, 2016 (the “Series 2009-A Notes”) and
(ii) $173,000,000 aggregate principal amount of its 7.77% Senior Notes,
Series 2009-B, due March 1, 2019 (the “Series 2009-B Notes” and, together with
the Series 2009-A Notes, the “Series 2009 Notes”). The Series 2009 Notes,
together with the Series 2008 Notes heretofore issued pursuant to the Note
Purchase Agreement and each series of Additional Notes that may from time to
time hereafter be issued pursuant to the provisions of Section 1.2 of the Note
Purchase Agreement, are collectively referred to as the “Notes” (such term shall
also include any such notes issued in substitution therefor pursuant to
Section 13 of the Note Purchase Agreement). The Series 2009 Notes shall be
substantially in the form set out in Exhibits 1(a) and 1(b) to this Supplement,
with such changes therefrom, if any, as may be approved by the Purchasers and
the Company.

 

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     2. Sale and Purchase of Series 2009 Notes. Subject to the terms and
conditions herein and in the Note Purchase Agreement, the Company will issue and
sell to each Purchaser and each Purchaser will purchase from the Company, at the
Closing provided for in Section 3, Series 2009 Notes in the principal amount
specified opposite such Purchaser’s name in the attached Schedule A at the
purchase price of 100% of the principal amount thereof. The obligations of the
Purchasers are several and not joint obligations and each Purchaser shall have
no liability to any Person for the performance or non-performance by any other
Purchaser hereunder.
     3. Closing. The sale and purchase of the Series 2009 Notes to be purchased
by the Purchasers shall occur at the offices of Foley & Lardner LLP, 321 North
Clark Street, Suite 2800, Chicago, Illinois 60654, at 9:00 a.m., Chicago time,
at a closing (the “Closing”) on March 5, 2009 or on such other Business Day
thereafter on or prior to March 15, 2009 as may be agreed upon by the Company
and you and the other Purchasers. At the Closing, the Company will deliver to
you the Series 2009 Notes to be purchased by you in the form of a single Note
(or such greater number of Series 2009 Notes in denominations of at least
$500,000 as you may request) dated the date of the Closing and registered in
your name (or in the name of your nominee), against delivery by you to the
Company or its order of immediately available funds in the amount of the
purchase price therefor by wire transfer of immediately available funds for the
account of the Company to account number 192648101 at JP Morgan Chase Bank, NA,
New York, New York, ABA number 021000021. If at the Closing the Company fails to
tender such Series 2009 Notes to any Purchaser as provided above in this
Section 3, or any of the conditions specified in Section 4 shall not have been
fulfilled to such Purchaser’s satisfaction, such Purchaser shall, at such
Purchaser’s election, be relieved of all further obligations under this
Agreement, without thereby waiving any rights such Purchaser may have by reason
of such failure or such nonfulfillment.
     4. Conditions to Closing. Each Purchaser’s obligation to purchase and pay
for the Series 2009 Notes to be sold to such Purchaser at the Closing is subject
to the fulfillment to such Purchaser’s satisfaction, prior to or at the Closing,
of the conditions set forth in Section 4 of the Note Purchase Agreement, as
hereafter modified and to the following additional conditions:
     (a) References in Section 4 of the Note Purchase Agreement to the
“Series 2008 Notes” shall be deemed to be references to the Series 2009 Notes
and references to the “Closing” shall be deemed to refer to the Closing as such
term is defined in this Supplement;
     (b) Except as supplemented, amended or superseded by the representations
and warranties set forth in Schedule 4, each of the representations and
warranties of the Company set forth in Section 5 of the Note Purchase Agreement
shall be correct as of the date of Closing and the Company shall have delivered
to each Purchaser an Officer’s Certificate, dated the date of the Closing
certifying that such condition has been fulfilled;
     (c) The reference in Section 4.3 of the Note Purchase Agreement to the
resolutions “relating to the authorization, execution and delivery of the Notes,
this

2

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Agreement and the Parent Guaranty” shall be deemed to be a reference to the
Series 2009 Notes, the Supplement and the confirmation of the Parent Guaranty
set forth herein (“Confirmation of the Parent Guaranty”);
     (d) The reference in Section 4.10 of the Note Purchase Agreement to the
“Parent Guaranty” shall be deemed to be a reference to the Confirmation of the
Parent Guaranty; and
     (e) Contemporaneously with the Closing, the Company shall sell to each
Purchaser, and each Purchaser shall purchase, the Series 2009 Notes to be
purchased by such Purchaser at the Closing as specified in Schedule A.
     5. Required Prepayments of the Series 2009 Notes. No regularly scheduled
prepayments are due on the Series 2009 Notes prior to their stated maturity.
     6. Representations of the Purchasers. Each Purchaser represents and
warrants that the representations and warranties set forth in Section 6 of the
Note Purchase Agreement are true and correct on the date hereof with respect to
the purchase of the Series 2009 Notes by such Purchaser.
     7. Applicability of Note Purchase Agreement. The Company and each Purchaser
agree to be bound by and comply with the terms and provisions of the Note
Purchase Agreement as fully and completely as if such Purchaser were an original
signatory to the Note Purchase Agreement.
     8. Liens Securing Obligations Under Credit Agreement. Anything in the Note
Purchase Agreement to the contrary notwithstanding, the Company will not, and
will not permit any Restricted Subsidiary to, create, incur, assume or suffer to
exist, directly or indirectly, any Lien on its properties or assets, including
capital stock, whether now owned or hereafter acquired, in favor of the lenders
or other creditors who are party to the Credit Agreement to secure loans under
the Credit Agreement unless concurrently therewith the Company shall make or
cause to be made effective provision whereby the Notes are secured by such Lien
equally and ratably with any and all other Indebtedness thereby secured pursuant
to terms reasonably acceptable to the Required Holders. A default by the Company
in the performance of or compliance with this Section 8 shall be deemed to be an
Event of Default under Section 11(c) of the Note Purchase Agreement, for all
purposes under the Note Purchase Agreement and under this Supplement.

3

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     If you are in agreement with the foregoing, please sign the form of
agreement on the accompanying counterpart of this Agreement and return it to the
Company, whereupon the foregoing shall become a binding agreement between you
and the Company. This Agreement may be executed in any number of counterparts,
each executed counterpart constituting an original but all together only one
agreement.

            Very truly yours,

ULTRA RESOURCES, INC.
      By:   /s/ Marshall D. Smith         Name:   Marshall D. Smith       
Title:   Chief Financial Officer   

S-1

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              The foregoing is agreed to as of the date thereof.
 
            JOHN HANCOCK LIFE INSURANCE COMPANY
 
            By:   /s/ Eugene X. Hodge, Jr.              
 
  Name:   Eugene X. Hodge, Jr.    
 
  Title:   Managing Director    
 
            JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.)
 
            By:   /s/ Eugene X. Hodge, Jr.              
 
  Name:   Eugene X. Hodge, Jr.    
 
  Title:   Authorized Signatory    
 
            JOHN HANCOCK VARIABLE LIFE INSURANCE COMPANY
 
            By:   /s/ Eugene X. Hodge, Jr.              
 
  Name:   Eugene X. Hodge, Jr.    
 
  Title:   Authorized Signatory    
 
            JPMORGAN CHASE BANK,
not individually but solely in its capacity as
Directed Trustee for the SBC Master Pension Trust
 
            By:   /s/ Amy L. Schneeberger              
 
  Name:   Amy L. Schneeberger    
 
  Title:   Vice President    

S-2

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              TEACHERS INSURANCE AND ANNUITY ASSOCIATION OF AMERICA
 
            By:   /s/ Marina Mavrakis              
 
  Name:   Marina Mavrakis    
 
  Title:   Managing Director    

S-3

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              PACIFIC LIFE INSURANCE COMPANY
 
            By:   /s/ Diane W. Dales              
 
  Name:   Diane W. Dales    
 
  Title:   Assistant Vice President    
 
            By:   /s/ Cathy Schwartz              
 
  Name:   Cathy Schwartz    
 
  Title:   Assistant Secretary    

S-4

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              MASSACHUSETTS MUTUAL LIFE INSURANCE COMPANY BY:   Babson Capital
Management LLC,
as Investment Adviser    
 
            By:   /s/ Elisabeth A. Perenick              
 
  Name:   Elisabeth A. Perenick    
 
  Title:   Managing Director    
 
            C.M. LIFE INSURANCE COMPANY
BY:   Babson Capital Management LLC,
as Investment Adviser    
 
            By:   /s/ Elisabeth A. Perenick              
 
  Name:   Elisabeth A. Perenick    
 
  Title:   Managing Director    

S-5

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              THE PRUDENTIAL INSURANCE COMPANY
OF AMERICA
 
            By:   /s/ Brian N. Thomas                   Brian N. Thomas        
Vice President    
 
            GATEWAY RECOVERY TRUST
 
            By:   Prudential Investment Management, Inc.,
as Asset Manager    
 
            By:   /s/ Brian N. Thomas                   Brian N. Thomas        
Vice President    

S-6

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              UNITED OF OMAHA LIFE INSURANCE COMPANY
 
            By:   /s/ Justin P. Kavan              
 
  Name:   Justin P. Kavan    
 
  Title:   Vice President    

S-7

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              MODERN WOODMEN OF AMERICA
 
            By:   /s/ Nick S. Coin              
 
  Name:   Nick S. Coin    
 
  Title:   Treasurer & Investment Manager    

S-8

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              PHOENIX LIFE INSURANCE COMPANY
 
            By:   /s/ Christopher M. Wilkos              
 
  Name:   Christopher M. Wilkos    
 
  Title:   Senior Vice President
Corporate Portfolio Management
Phoenix Life Insurance Company    
 
            PHL VARIABLE INSURANCE COMPANY
 
            By:   /s/ Christopher M. Wilkos              
 
  Name:   Christopher M. Wilkos, CFA    
 
  Title:   Senior Vice President
Corporate Portfolio Management
PHL Variable Insurance Company    

S-9

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              SOUTHERN FARM BUREAU LIFE INSURANCE COMPANY
 
            By:   /s/ David Divine         Name: David Divine    
 
  Title:   Portfolio Manager    

S-10

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              TRAVELERS CASUALTY AND SURETY COMPANY OF AMERICA
 
            By:   /s/ David D. Rowland              
 
  Name:   David D. Rowland    
 
  Title:   SVP, Fixed Income Investments    
 
            ST. PAUL FIRE AND MARINE INSURANCE COMPANY
 
            By:   /s/ David D. Rowland              
 
  Name:   David D. Rowland    
 
  Title:   SVP, Fixed Income Investments    

S-11

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              JACKSON NATIONAL LIFE INSURANCE COMPANY
 
            By:   PPM America, Inc., as attorney in fact,
on behalf of Jackson National Life Insurance Company    
 
            By:   /s/ Luke S. Stifflear              
 
  Name:   Luke S. Stifflear    
 
  Title:   Senior Managing Director    

S-12

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              NATIONAL LIFE INSURANCE COMPANY
 
            By:   /s/ R. Scott Higgins              
 
  Name:   R. Scott Higgins    
 
  Title:   Senior Vice President
Sentinel Asset Management    

S-13

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              COUNTRY LIFE INSURANCE COMPANY
 
            By:   /s/ John Jacobs              
 
  Name:   John Jacobs    
 
  Title:   Director — Fixed Income    

S-14

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CONFIRMATION
     Each of the undersigned acknowledges receipt of the foregoing First
Supplement dated as of March 5, 2009 to the Master Note Purchase Agreement dated
as of March 6, 2008 and confirms the continuing validity and enforceability
against such undersigned of the Parent Guaranty.

            ULTRA PETROLEUM CORP.
      By:   /s/ Marshall D. Smith         Name:   Marshall D. Smith       
Title:   Chief Financial Officer        UP ENERGY CORPORATION
      By:   /s/ Marshall D. Smith         Name:   Marshall D. Smith       
Title:   Chief Financial Officer     

S-15

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Exhibit 1(a) to Supplement
[FORM OF SERIES 2009-A NOTE]
THIS NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 AND MAY NOT
BE SOLD OR TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION EXCEPT PURSUANT TO AN
EXEMPTION THEREFROM UNDER SUCH ACT.
ULTRA RESOURCES, INC.
7.31% Senior Note due March 1, 2016

      No. RA-[     ]   [Date] $[               ]   PPN: 90388@ AC5

     FOR VALUE RECEIVED, the undersigned, ULTRA RESOURCES, INC. (herein called
the “Company”), a corporation organized and existing under the laws of the state
of Wyoming, promises to pay to [           ], or registered assigns, the
principal sum of $[               ] on March 1, 2016, with interest (computed on
the basis of a 360-day year of twelve 30-day months) (a) on the unpaid balance
thereof at the rate of 7.31% per annum from the date hereof, payable
semiannually, on September 1 and March 1 in each year, commencing with the
September 1 or March 1 next succeeding the date hereof, until the principal
hereof shall have become due and payable, and (b) to the extent permitted by
law, at a rate per annum from time to time equal to the greater of (i) 9.31% or
(ii) 2% over the rate of interest publicly announced by JPMorgan Chase Bank,
N.A. from time to time in New York, New York as its “base” or “prime” rate, on
any overdue payment of interest, any overdue payment (including any overdue
prepayment) of principal and any overdue payment of any Make-Whole Amount,
payable semiannually as aforesaid (or, at the option of the registered holder
hereof, on demand), but in each case in no event in excess of the maximum
nonusurious rate of interest permitted under applicable law.
     Payments of principal of, interest on and any Make-Whole Amount with
respect to this Note are to be made in lawful money of the United States of
America at the principal office of JPMorgan Chase Bank, N.A. in New York, New
York or at such other place as the Company shall have designated by written
notice to the holder of this Note as provided in the Note Purchase Agreement
referred to below.
     This Note is one of a series of Senior Notes (herein called the “Notes”)
issued pursuant to the Master Note Purchase Agreement dated as of March 6, 2008,
as supplemented by a First Supplement dated as of March 5, 2009 (as supplemented
and from time to time amended
Exhibit 1(a)

 

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and supplemented, the “Note Purchase Agreement”), between the Company and the
respective Purchasers named therein and is entitled to the benefits thereof.
Each holder of this Note will be deemed, by its acceptance hereof, (i) to have
agreed to the confidentiality provisions set forth in Section 20 of the Note
Purchase Agreement and (ii) to have made the representations set forth in
Sections 6.2 of the Note Purchase Agreement. Unless otherwise indicated,
capitalized terms used in this Note shall have the respective meanings ascribed
to such terms in the Note Purchase Agreement.
     This Note is a registered Note and, as provided in the Note Purchase
Agreement, upon surrender of this Note for registration of transfer, duly
endorsed, or accompanied by a written instrument of transfer duly executed, by
the registered holder hereof or such holder’s attorney duly authorized in
writing, a new Note for a like principal amount will be issued to, and
registered in the name of, the transferee. Prior to due presentment for
registration of transfer, the Company may treat the Person in whose name this
Note is registered as the owner hereof for the purpose of receiving payment and
for all other purposes, and the Company will not be affected by any notice to
the contrary.
     This Note is subject to optional prepayment, in whole or from time to time
in part, at the times and on the terms specified in the Note Purchase Agreement,
but not otherwise.
     If an Event of Default occurs and is continuing, the principal of this Note
may be declared or otherwise become due and payable in the manner, at the price
(including any applicable Make-Whole Amount) and with the effect provided in the
Note Purchase Agreement.
     This Note shall be construed and enforced in accordance with, and the
rights of the parties shall be governed by, the law of the state of New York
excluding choice-of-law principles of the law of such state that would require
the application of the laws of a jurisdiction other than such state.

            ULTRA RESOURCES, INC.
      By:           Name:           Title:      

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Exhibit 1(b) to Supplement
[FORM OF SERIES 2009-B NOTE]
THIS NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 AND MAY NOT
BE SOLD OR TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION EXCEPT PURSUANT TO AN
EXEMPTION THEREFROM UNDER SUCH ACT.
ULTRA RESOURCES, INC.
7.77% Senior Note due March 1, 2019

      No. RB-[     ]   [Date] $[               ]   PPN: 90388@ AD3

     FOR VALUE RECEIVED, the undersigned, ULTRA RESOURCES, INC. (herein called
the “Company”), a corporation organized and existing under the laws of the state
of Wyoming, promises to pay to [           ], or registered assigns, the
principal sum of $[               ] on March 1, 2019, with interest (computed on
the basis of a 360-day year of twelve 30-day months) (a) on the unpaid balance
thereof at the rate of 7.77% per annum from the date hereof, payable
semiannually, on September 1 and March 1 in each year, commencing with the
September 1 or March 1 next succeeding the date hereof, until the principal
hereof shall have become due and payable, and (b) to the extent permitted by
law, at a rate per annum from time to time equal to the greater of (i) 9.77% or
(ii) 2% over the rate of interest publicly announced by JPMorgan Chase Bank,
N.A. from time to time in New York, New York as its “base” or “prime” rate, on
any overdue payment of interest, any overdue payment (including any overdue
prepayment) of principal and any overdue payment of any Make-Whole Amount,
payable semiannually as aforesaid (or, at the option of the registered holder
hereof, on demand), but in each case in no event in excess of the maximum
nonusurious rate of interest permitted under applicable law.
     Payments of principal of, interest on and any Make-Whole Amount with
respect to this Note are to be made in lawful money of the United States of
America at the principal office of JPMorgan Chase Bank, N.A. in New York, New
York or at such other place as the Company shall have designated by written
notice to the holder of this Note as provided in the Note Purchase Agreement
referred to below.
     This Note is one of a series of Senior Notes (herein called the “Notes”)
issued pursuant to the Master Note Purchase Agreement dated as of March 6, 2008,
as supplemented by
Exhibit 1(b)

 

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a First Supplement dated as of March 5, 2009 (as supplemented and from time to
time amended and supplemented, the “Note Purchase Agreement”), between the
Company and the respective Purchasers named therein and is entitled to the
benefits thereof. Each holder of this Note will be deemed, by its acceptance
hereof, (i) to have agreed to the confidentiality provisions set forth in
Section 20 of the Note Purchase Agreement and (ii) to have made the
representations set forth in Sections 6.2 of the Note Purchase Agreement. Unless
otherwise indicated, capitalized terms used in this Note shall have the
respective meanings ascribed to such terms in the Note Purchase Agreement.
     This Note is a registered Note and, as provided in the Note Purchase
Agreement, upon surrender of this Note for registration of transfer, duly
endorsed, or accompanied by a written instrument of transfer duly executed, by
the registered holder hereof or such holder’s attorney duly authorized in
writing, a new Note for a like principal amount will be issued to, and
registered in the name of, the transferee. Prior to due presentment for
registration of transfer, the Company may treat the Person in whose name this
Note is registered as the owner hereof for the purpose of receiving payment and
for all other purposes, and the Company will not be affected by any notice to
the contrary.
     This Note is subject to optional prepayment, in whole or from time to time
in part, at the times and on the terms specified in the Note Purchase Agreement,
but not otherwise.
     If an Event of Default occurs and is continuing, the principal of this Note
may be declared or otherwise become due and payable in the manner, at the price
(including any applicable Make-Whole Amount) and with the effect provided in the
Note Purchase Agreement.
     This Note shall be construed and enforced in accordance with, and the
rights of the parties shall be governed by, the law of the state of New York
excluding choice-of-law principles of the law of such state that would require
the application of the laws of a jurisdiction other than such state.

            ULTRA RESOURCES, INC.
      By:           Name:           Title:        

2