Exhibit 10.1

 

[EXECUTION COPY]

 

FIFTH AMENDMENT TO CREDIT AGREEMENT

 

THIS FIFTH AMENDMENT TO CREDIT AGREEMENT (this “Amendment”), dated as of
July 26, 2013, is among LONE PINE RESOURCES INC., a Delaware corporation
(“Parent”), LONE PINE RESOURCES CANADA LTD., formerly known as Canadian Forest
Oil Ltd., a corporation amalgamated under the laws of the Province of Alberta,
Canada (“Borrower”), each of the lenders that is a signatory to, or which
becomes a signatory to, the Credit Agreement (together with its successors and
assigns, the “Lenders”), JPMORGAN CHASE BANK, N.A., TORONTO BRANCH, as
Administrative Agent (the “Administrative Agent”), and the other agents party
thereto.

 

W I T N E S S E T H:

 

1.                                      Parent, Borrower, the Administrative
Agent, the Lenders and others as agents are parties to that certain Credit
Agreement dated as of March 18, 2011, as previously amended pursuant to that
certain First Amendment to Credit Agreement, dated as of April 29, 2011, that
certain Second Amendment to Credit Agreement, dated as of September 21, 2011,
that certain Third Amendment to Credit Agreement, dated as of February 5, 2012,
and that certain Fourth Amendment to Credit Agreement, dated as of April 12,
2013 (as amended, the “Credit Agreement”), pursuant to which the Lenders agreed
to make loans to, and extensions of credit on behalf of, Borrower.

 

2.                                      The parties to the Credit Agreement
intend to amend the Credit Agreement as set forth herein.

 

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

 

I.                                        Amendment.

 

A.                                    Section 2.10(b)(1) of the Credit Agreement
hereby is amended in its entirety to read as follows:

 

“                                          (1)                                
in the case of a Borrowing Base Deficiency resulting from a redetermination or
reduction of the Borrowing Base, prepay, or cause to be prepaid, Loans in an
aggregate principal amount equal to such deficiency, together with interest on
the principal amount paid accrued as of the date of such prepayment and, if
after prepaying all of the Loans (other than Bankers Acceptances) a Borrowing
Base Deficiency remains as a result of a BA Exposure, pay to the Administrative
Agent an amount equal to such remaining Borrowing Base Deficiency to be held as
cash collateral as provided in Section 2.23(m), and, if after prepaying all of
the Loans (other than Bankers Acceptances) and providing cash collateral for all
Bankers’ Acceptances pursuant to this Section, a Borrowing Base Deficiency
remains as a result of an LC Exposure, pay to the Administrative Agent an amount
equal to such remaining Borrowing Base Deficiency to be held as cash collateral
as provided in Section 2.4(i); provided that Borrower shall be obligated to make
(or cause to be made) such prepayment and/or deposit of cash collateral
immediately as of the Deficiency Notification Date with respect to such
deficiency;”.

 

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B.                                    Section 5.1(f) of the Credit Agreement
hereby is amended in its entirety to read as follows:

 

“                                          (f)                                  
Within fifteen (15) days following the end of each calendar month, a report
titled “Monthly Financial Results” substantially in the form attached as
Exhibit N, certified as being accurate by an Authorized Officer.”

 

C.                                    Section 6.1 of the Credit Agreement hereby
is amended in its entirety to read as follows:

 

“                                          SECTION 6.1  Ratio of Total Debt to
EBITDA.  Parent will not permit its ratio of Total Debt outstanding to EBITDA
(calculated for the last four consecutive fiscal quarter period then most
recently ended for which financial statements are available) to be greater than
(i) for any period on or before June 30, 2013, 5.75 to 1.0 and (ii) for any
period after June 30, 2013, 4.00 to 1.0.”

 

D.                                    The Credit Agreement hereby is amended by
inserting Exhibit N attached to this Amendment as Exhibit N to the Credit
Agreement.

 

II.                                   Effectiveness.  This Amendment shall
become effective as of July 26, 2013 (the “Fifth Amendment Effective Date”) when
the Administrative Agent shall have received:

 

A.                                    Counterparts hereof duly executed by
Borrower, Parent, the Administrative Agent and the Majority Lenders and
acknowledgement of the Guarantors (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);

 

B.                                    Duly executed counterparts of an Amended
and Restated Demand Debenture and Negative Pledge from Borrower and Lone Pine
Resources (Holdings) Inc., respectively, in form and substance acceptable to the
Administrative Agent, in its reasonable discretion, together with such other
documents or instruments as the Administrative Agent may reasonably request in
connection therewith; and

 

C.                                    Payment of (i) an amendment fee for the
account of each Lender executing this Amendment and returning its signature
page to the Administrative Agent on or before 4:00 p.m., Houston time, July 24,
2013 equal to 10 basis points multiplied by such Lender’s Applicable Percentage
of the current Borrowing Base, (ii) such other fees otherwise agreed in writing
by the Borrower, and (iii) all fees and expenses incurred or payable by the
Administrative Agent (including, without limitation, reasonable fees and
expenses of counsel for the Administrative Agent), arising in connection with
the negotiations, preparation and execution of this Amendment and all other
instruments and documents to be delivered in connection herewith as well as
otherwise outstanding on the date hereof.

 

III.                              Reaffirmation of Representations and
Warranties.  To induce the Lenders and the Administrative Agent to enter into
this Amendment, Parent and Borrower each hereby reaffirms, as of the date
hereof, that the representations and warranties of each Loan Party set forth in
the Loan Documents to which it is a party (as amended hereby) are true and
correct in all

 

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material respects 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 earlier date).

 

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

 

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

 

VI.                               Governing Law.  THIS AMENDMENT SHALL BE
CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE PROVINCE OF ALBERTA AND CANADA
APPLICABLE THEREIN.

 

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.

 

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 CREDIT
AGREEMENT, AS AMENDED HEREBY, AND THE OTHER 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, Parent, Borrower, the undersigned Lenders and the
Administrative Agent under the Credit Agreement have executed this Amendment as
of the date first above written.

 

 

LONE PINE RESOURCES INC.

 

 

 

By:

/s/ Shane K. Abel

 

Name: Shane K. Abel

 

Title: Vice President, Finance &Chief Financial Officer

 

 

 

 

 

LONE PINE RESOURCES CANADA LTD., formerly known as Canadian Forest Oil Ltd.

 

 

 

By:

/s/ Shane K. Abel

 

Name: Shane K. Abel

 

Title: Vice President, Finance &Chief Financial Officer

 

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CONSENT OF GUARANTORS

 

Each of the undersigned Guarantors hereby consent to the terms, provisions and
conditions contained in this Fifth Amendment.  Each Guarantor hereby
acknowledges and agrees that (a) the execution, delivery and performance of the
Fifth Amendment will not adversely affect or impair any of its obligations to
Administrative Agent and the Lenders evidenced by or arising under or in respect
of the applicable Guaranty or any other Loan Document, as applicable,
(b) payment of all of the present and future Obligations owed by the Borrower is
guaranteed to the Administrative Agent and the Lenders by each Guarantor under
and pursuant to the applicable Guaranty, and (c) each Guaranty and each other
Loan Document pursuant to which any Guarantor is a party, as applicable, is in
full force and effect on the date hereof and each Guaranty is hereby ratified
and confirmed.

 

 

LONE PINE RESOURCES INC.

 

LONE PINE RESOURCES (HOLDINGS) INC., formerly known as Forest Oil Energy
Corporation

 

 

By:

/s/ Shane K. Abel

 

 

Name: Shane K. Abel

 

By:

/s/ Tim Granger

Title: Vice President, Finance & Chief Financial Officer

 

Name: Tim Granger

 

 

Title: President

 

 

 

WISER OIL DELAWARE, LLC

 

WISER DELAWARE LLC

 

 

 

By: Class A Manager of Wiser Oil Delaware, LLC

 

By: Class A Manager of Wiser Delaware LLC

Lone Pine Resources Inc.

 

Lone Pine Resources Inc.

 

 

 

By:

/s/ Patrick R. McDonald

 

By:

/s/ Patrick R. McDonald

Name: Patrick R. McDonald

 

Name: Patrick R. McDonald

Title: Chairman

 

Title: Chairman

 

 

 

Signed at: Denver, CO, USA

 

Signed at: Denver, CO, USA

 

 

 

By: Class B Manager of Wiser Oil Delaware, LLC

 

By: Class B Manager of Wiser Delaware LLC

 

 

 

By:

/s/ Mary S. Stawikey

 

By:

/s/ Mary S. Stawikey

Name: Mary S. Stawikey

 

Name: Mary S. Stawikey

Title: Manager

 

Title: Manager

 

 

 

Signed at: Wilmington, DE, USA

 

Signed at: Wilmington, DE, USA

 

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JPMORGAN CHASE BANK, N.A., TORONTO BRANCH, as Administrative Agent and as a
Lender

 

 

 

 

 

By:

/s/ Geraldine King

 

Name: Geraldine King

 

Title: Special Credits Senior Asset Manager

 

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THE TORONTO-DOMINION BANK, as a Co-Syndication Agent and as a Lender

 

 

 

 

 

By:

 

 

Name:

 

Title:

 

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BANK OF MONTREAL, as a Co-Syndication Agent and as a Lender

 

 

 

 

 

By:

/s/ Michael M. Johnson

 

Name: Michael M. Johnson

 

Title: Vice President

 

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THE BANK OF NOVA SCOTIA, as a Co-Documentation Agent and as a Lender

 

 

 

 

 

By:

/s/ Albert Kwan

 

Name: Albert Kwan

 

Title: Director

 

 

 

By:

/s/ Michael Linder

 

Name: Michael Linder

 

Title: Director

 

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WELLS FARGO FINANCIAL CORPORATION CANADA, as a Co-Documentation Agent and as a
Lender

 

 

 

 

 

By:

/s/ Richard Valade

 

Name: Richard Valade

 

Title: President

 

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UNION BANK, CANADA BRANCH, as a Lender

 

 

 

 

 

By:

 

 

Name:

 

Title:

 

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CREDIT SUISSE AG, CAYMAN ISLANDS BRANCH (f/k/a CREDIT SUISSE, Cayman Islands
Branch), as a Lender

 

 

 

 

 

By:

/s/ Megan Kane

 

Name: Megan Kane

 

Title: Authorized Signatory

 

 

 

By:

/s/ Bryan J. Matthews

 

Name: Bryan J. Matthews

 

Title: Authorized Signatory

 

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WELLS FARGO BANK, N.A., Canadian Branch, as a Lender

 

 

 

 

 

By:

/s/ Amanda Hussain

 

Name: Amanda Hussain

 

Title: Associate

 

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CANADIAN IMPERIAL BANK OF COMMERCE, as a Lender

 

 

 

 

 

By:

 

 

Name:

 

Title:

 

 

 

 

 

By:

 

 

Name:

 

Title:

 

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ROYAL BANK OF CANADA, as a Lender

 

 

 

 

 

By:

 

 

Name:

 

Title:

 

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Exhibit N

 

[Form of]

 

Monthly Financial Results

 

[see attached]

 

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