Exhibit 10.1

 

SECOND AMENDMENT TO FOURTH AMENDED AND RESTATED

CREDIT AGREEMENT

 

This SECOND AMENDMENT TO FOURTH AMENDED AND RESTATED CREDIT AGREEMENT (this
“Amendment”) is made as of July 8, 2011, by and among ANTERO RESOURCES
CORPORATION, a Delaware corporation (“Antero”), ANTERO RESOURCES PICEANCE
CORPORATION, a Delaware corporation (“Antero Piceance”), ANTERO RESOURCES
PIPELINE CORPORATION, a Delaware corporation (“Antero Pipeline”), and ANTERO
RESOURCES APPALACHIAN CORPORATION, a Delaware corporation (“Antero Appalachian”
and, together with Antero, Antero Piceance and Antero Pipeline, each, a
“Borrower” and collectively, the “Borrowers”), CERTAIN SUBSIDIARIES OF
BORROWERS, as Guarantors, the LENDERS party hereto, and JPMORGAN CHASE BANK,
N.A., as Administrative Agent (in such capacity, the “Administrative Agent”). 
Unless otherwise expressly defined herein, capitalized terms used but not
defined in this Amendment have the meanings assigned to such terms in the Credit
Agreement (as defined below).

 

WITNESSETH:

 

WHEREAS, the Borrowers, the Guarantors, the Administrative Agent and the Lenders
have entered into that certain Fourth Amended and Restated Credit Agreement,
dated as of November 4, 2010 (as amended, restated, amended and restated,
supplemented or otherwise modified from time to time, the “Credit Agreement”);
and

 

WHEREAS, the Administrative Agent, the Lenders, the Borrowers and the Guarantors
have agreed to amend the Credit Agreement as provided herein subject to the
terms and conditions set forth herein.

 

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, the Borrowers, the
Guarantors, the Administrative Agent and the Lenders hereby agree as follows:

 

SECTION 1.                            Amendments to Credit Agreement.  Subject
to the satisfaction or waiver in writing of each condition precedent set forth
in Section 2 of this Amendment, and in reliance on the representations,
warranties, covenants and agreements contained in this Amendment, the Credit
Agreement shall be amended in the manner provided in this Section 1.

 

1.1               Amended Definition.  The following definition in Section 1.01
of the Credit Agreement shall be and it hereby is amended and restated in its
entirety to read as follows:

 

“EBITDAX” means, with respect to any Person for any period, Consolidated Net
Income for such period; plus without duplication and to the extent deducted in
the calculation of Consolidated Net Income for such period, the sum of (a) any
provision for (or less any benefit for) income or franchise Taxes;
(b) Consolidated Interest Expense; (c) amortization, depletion, depreciation and
exploration expense; and (d) any non-cash losses, expenses, impairments or
charges (including losses arising from ceiling test writedowns,

 

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non-cash losses or charges resulting from the requirements of SFAS 123, 123R,
133 or 143, but excluding accruals of or reserves for cash charges for any
future period); provided that cash payments made during such period or in any
future period in respect of non-cash charges, expenses or losses, other than any
such excluded charge, expense or loss described in the parenthetical to this
clause (d) shall be subtracted from Consolidated Net Income in calculating
EBITDAX for the period in which such payments are made; minus, to the extent
included in the calculation of Consolidated Net Income, the sum of (i) interest
income, (ii) any extraordinary income or gains; and (iii) any other non-cash
income or gain, including non-cash income or gains resulting from the
requirements of SFAS 123, 123R, 133 or 143, but excluding any items that
represent the reversal of any accrual of, or cash reserve for, anticipated cash
charges in any prior period that are described in clause (d) above; provided
that, with respect to the determination of Holdings’ compliance with the
Interest Coverage Ratio set forth in Section 7.12 for any period, EBITDAX for
such period shall be adjusted to give effect, on a pro forma basis and
consistent with GAAP, to any Acquisitions or Dispositions made during such
period as if such Acquisition or Disposition, as the case may be, was made at
the beginning of such period.

 

1.2               Additional Definitions.  The following definitions shall be
and they hereby are added to Section 1.01 of the Credit Agreement in appropriate
alphabetical order:

 

“Consolidated Interest Expense” means for any period, without duplication, the
aggregate of all interest expense of Holdings and its Consolidated Subsidiaries
that are Credit Parties as determined in accordance with GAAP, including (a) all
interest, fees and costs payable with respect to the Indebtedness of such
Persons to the extent treated as interest in accordance with GAAP (other than
fees and costs which may be capitalized as transaction costs in accordance with
GAAP) and (b) the interest component of Capital Lease Obligations, to the extent
treated as interest in accordance with GAAP.

 

“Interest Coverage Ratio” means, with respect to any fiscal quarter, the ratio
of (i) the sum of the Consolidated EBITDAX of Holdings for the trailing four
fiscal quarter period ending on the last day of such fiscal quarter to (ii) the
sum of the Consolidated Interest Expense of Holdings for the trailing four
fiscal quarter period ending on the last day of such fiscal quarter.

 

1.3                   Deleted Definition.  The defined term “Leverage Ratio”
located in Section 1.01 of the Credit Agreement shall be and it hereby is
deleted in its entirety.

 

1.4                               Interest Coverage Ratio. Section 7.12 of the
Credit Agreement shall be and it hereby is amended and restated in its entirety
to read as follows:

 

Section 7.12                            Interest Coverage Ratio.  At the end of
each fiscal quarter ending on or after June 30, 2011, the Interest Coverage
Ratio will not be less than 2.50 to 1.0.

 

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SECTION 2.                            Conditions.  The amendments to the Credit
Agreement contained in Section 1 of this Amendment shall be effective upon the
satisfaction of each of the conditions set forth in this Section 2.

 

2.1               Execution and Delivery.  Each Credit Party, the Majority
Lenders, and the Administrative Agent shall have executed and delivered this
Amendment.

 

2.2               No Default.  No Default shall have occurred and be continuing
or shall result from the effectiveness of this Amendment.

 

2.3               Other Documents.  The Administrative Agent shall have received
such other instruments and documents incidental and appropriate to the
transaction provided for herein as the Administrative Agent or its special
counsel may reasonably request, and all such documents shall be in form and
substance reasonably satisfactory to the Administrative Agent.

 

SECTION 3.                            Representations and Warranties of Credit
Parties.  To induce the Lenders to enter into this Amendment, each Credit Party
hereby represents and warrants to the Lenders as follows:

 

3.1               Reaffirmation of Representations and Warranties/Further
Assurances.  After giving effect to the amendments herein, each representation
and warranty of such Credit Party contained in the Credit Agreement and in each
of the other Loan Documents is true and correct in all material respects as of
the date hereof (except to the extent such representations and warranties
specifically refer to an earlier date, in which case they are true and correct
in all material respects as of such earlier date).

 

3.2               Corporate Authority; No Conflicts.  The execution, delivery
and performance by each Credit Party of this Amendment are within such Credit
Party’s corporate or other organizational powers, have been duly authorized by
necessary action, require no action by or in respect of, or filing with, any
court or agency of government and do not violate or constitute a default under
any provision of any applicable law or other agreements binding upon any Credit
Party or result in the creation or imposition of any Lien upon any of the assets
of any Credit Party except for Permitted Liens and otherwise as permitted in the
Credit Agreement.

 

3.3               Enforceability.  This Amendment constitutes the valid and
binding obligation of the Borrowers and each other Credit Party 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.

 

3.4               No Default.  As of the date hereof, both before and
immediately after giving effect to this Amendment, no Default has occurred and
is continuing.

 

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SECTION 4.                            Miscellaneous.

 

4.1               Reaffirmation of Loan Documents and Liens.  Any and all of the
terms and provisions of the Credit Agreement and the Loan Documents shall,
except as amended and modified hereby, remain in full force and effect and are
hereby in all respects ratified and confirmed by each Credit Party.  Each
Borrower and each Guarantor hereby agree that the amendments and modifications
herein contained shall in no manner affect or impair the liabilities, duties and
obligations of any Credit Party under the Credit Agreement and the other Loan
Documents or the Liens securing the payment and performance thereof.

 

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

 

4.3               Legal Expenses.  Each Credit Party hereby agrees to pay all
reasonable fees and expenses of special counsel to the Administrative Agent
incurred by the Administrative Agent in connection with the preparation,
negotiation and execution of this Amendment and all related documents.

 

4.4               Counterparts.  This Amendment may be executed in one or more
counterparts and by different parties hereto in separate counterparts each of
which when so executed and delivered shall be deemed an original, but all such
counterparts together shall constitute but one and the same instrument;
signature pages may be detached from multiple separate counterparts and attached
to a single counterpart so that all signature pages are physically attached to
the same document.  Delivery of photocopies of the signature pages to this
Amendment by facsimile or electronic mail shall be effective as delivery of
manually executed counterparts of this Amendment.

 

4.5               Complete Agreement.  THIS AMENDMENT, THE CREDIT AGREEMENT, AND
THE OTHER LOAN DOCUMENTS REPRESENT THE FINAL AGREEMENT BETWEEN 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 THE PARTIES.

 

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

 

4.7               Governing Law.  This Amendment shall be construed in
accordance with and governed by the laws of the State of New York.

 

4.8               Loan Document.  This Amendment shall constitute a Loan
Document for all purposes and in all respects.

 

[Remainder of page intentionally blank.

Signature pages follow.]

 

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

 

 

BORROWERS:

 

 

 

ANTERO RESOURCES CORPORATION

 

 

 

ANTERO RESOURCES PICEANCE CORPORATION

 

 

 

ANTERO RESOURCES PIPELINE CORPORATION

 

 

 

ANTERO RESOURCES APPALACHIAN CORPORATION

 

 

 

 

 

By:

/s/ Alvyn A. Schopp

 

 

Name:

Alvyn A. Schopp

 

 

Title:

Treasurer and Vice President,

 

 

 

Administration and Accounting

 

 

 

 

 

RESTRICTED SUBSIDIARIES:

 

 

 

ANTERO RESOURCES FINANCE CORPORATION

 

 

 

 

 

By:

/s/ Alvyn A. Schopp

 

 

Name:

Alvyn A. Schopp

 

 

Title:

Treasurer and Vice President,

 

 

 

Administration and Accounting

 

 

 

ANTERO RESOURCES BLUESTONE LLC

 

 

 

 

 

By:

s/ Alvyn A. Schopp

 

 

Name:

Alvyn A. Schopp

 

 

Title:

Vice President — Accounting &
Administration/Treasurer

 

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JPMORGAN CHASE BANK, N.A.,

 

as Administrative Agent, Issuing Bank and a Lender

 

 

 

 

 

By:

/s/ Brian Orlando

 

 

Name:

Brian Orlando

 

 

Title:

Authorized Officer

 

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WELLS FARGO BANK, N.A.,

 

as Syndication Agent and a Lender

 

 

 

 

 

By:

/s/ Oleg Kogan

 

 

Name:

Oleg Kogan

 

 

Title:

Director

 

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BANK OF SCOTLAND PLC,

 

as Co-Documentation Agent and a Lender

 

 

 

 

 

By:

/s/ Julia R. Franklin

 

 

Name:

Julia R. Franklin

 

 

Title:

Assistant Vice President

 

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BNP PARIBAS,

 

as Co-Documentation Agent and a Lender

 

 

 

 

 

By:

/s/ Russell Otts

 

 

Name:

Russell Otts

 

 

Title:

Director

 

 

 

 

 

 

 

 

 

By:

/s/ Matt Turner

 

 

Name:

Matt Turner

 

 

Title:

Vice President

 

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CREDIT AGRICOLE CORPORATE AND INVESTMENT BANK,

 

as Co-Documentation  Agent and  a Lender

 

 

 

 

 

By:

/s/ Mark A. Roche

 

 

Name:

Mark A. Roche

 

 

Title:

Managing Director

 

 

 

 

 

 

 

 

 

By:

/s/ Sharada Manne

 

 

Name:

Sharada Manne

 

 

Title:

Director

 

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DEUTSCHE BANK TRUST COMPANY AMERICAS,

 

as Co-Documentation Agent and a Lender

 

 

 

 

 

By:

/s/ Michael Getz

 

 

Name:

Michael Getz

 

 

Title:

Vice President

 

 

 

 

 

 

 

 

 

By:

/s/ Evelyn Thierry

 

 

Name:

Evelyn Thierry

 

 

Title:

Director

 

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UNION BANK, N.A.,

 

as Co-Documentation Agent and  a Lender

 

 

 

 

 

By:

/s/ Jarrod Bourgeois

 

 

Name:

Jarrod Bourgeois

 

 

Title:

Vice President

 

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BARCLAYS BANK PLC,

 

as a Lender

 

 

 

 

 

By:

/s/ Vanessa A. Kurbatskiy

 

 

Name:

Vanessa A. Kurbatskiy

 

 

Title:

Vice President

 

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COMERICA BANK,

 

as a Lender

 

 

 

 

 

By:

/s/ Paul J. Edmonds

 

 

Name:

Paul J. Edmonds

 

 

Title:

VicePresident

 

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CREDIT SUISSE AG, CAYMAN ISLANDS BRANCH,

 

as a Lender

 

 

 

 

 

By:

/s/ Nupur Kumar

 

 

Name:

Nupur Kumar

 

 

Title:

Vice President

 

 

 

 

 

By:

/s/ Rahul Parmar

 

 

Name:

Rahul Parmar

 

 

Title:

Associate

 

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KEY BANK NATIONAL ASSOCIATION,

 

as a Lender

 

 

 

 

 

By:

/s/ David Morris

 

 

Name:

David Morris

 

 

Title:

Vice President

 

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U.S. BANK NATIONAL ASSOCIATION,

 

as a Lender

 

 

 

 

 

By:

 

 

 

Name:

 

 

Title:

 

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GUARANTY BANK AND TRUST COMPANY,

 

as a Lender

 

 

 

 

 

By:

/s/ Gail J. Nofsinger

 

 

Name:

Gail J. Nofsinger

 

 

Title:

Senior Vice President

 

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