EXHIBIT 10.1

 

LIMITED WAIVER REGARDING CREDIT AGREEMENT

THIS LIMITED WAIVER REGARDING CREDIT AGREEMENT (this “Limited Waiver”), dated as
of March 26, 2009 (the “Effective Date”), is entered into by and among PIONEER
SOUTHWEST ENERGY PARTNERS L.P., a Delaware limited partnership(the “Borrower”),
each lender party hereto, BANK OF AMERICA, N.A., as Administrative Agent, Swing
Line Lender and L/C Issuer, WELLS FARGO BANK, N. A., as Syndication Agent, and
BMO CAPITAL MARKETS FINANCING, INC., as Documentation Agent.

W I T N E S S E T H:

WHEREAS, the Borrower, the lenders party thereto (collectively, the “Lenders”
and individually, a “Lender”), the Swing Line Lender, the L/C Issuer, the
Administrative Agent, the Syndication Agent and the Documentation Agent have
entered into that certain Credit Agreement, dated as of October 29, 2007, as
amended by that certain Amendment to Credit Agreement, dated as of December 14,
2007, as further amended by that certain Second Amendment to Credit Agreement,
dated as of February 15, 2008, as further amended by that certain Third
Amendment to Credit Agreement, dated as of April 15, 2008, by and among the
Borrower, the Lenders, the Swing Line Lender, the L/C Issuer, the Administrative
Agent, the Syndication Agent and the Documentation Agent (as may be further
amended or otherwise modified, the “Credit Agreement”); and

WHEREAS, Borrower and its Restricted Subsidiaries have entered into certain Swap
Contracts with Qualified Counterparties with respect to approximately 45% or
more of the forecasted production attributable to Oil and Gas Properties
constituting proved developed producing reserves described in the most recent
Reserve Report for all periods through December 31, 2011 (the “Existing Swap
Contracts”); and

WHEREAS, the Borrower has requested that the Lenders, Swing Line Lender, the L/C
Issuer, the Administrative Agent, the Syndication Agent and the Documentation
Agent waive certain provisions of the Credit Agreement and the Lenders party
hereto, the Swing Line Lender, the L/C Issuer, the Administrative Agent, the
Syndication Agent and the Documentation Agent are willing to waive certain
provisions of the Credit Agreement related to the Existing Swap Contracts as set
forth herein.

NOW THEREFORE, in consideration of the foregoing and the mutual agreements set
forth herein, the parties hereto agree as follows:

SECTION 1.Definitions. Unless otherwise defined in this Limited Waiver, each
capitalized term used in this Limited Waiver has the meaning assigned to such
term in the Credit Agreement.

 

 

SECTION 2.

Limited Waiver of Section 6.11(b) of the Credit Agreement.

(a)       The Lenders party hereto, the Swing Line Lender, the L/C Issuer, the
Administrative Agent, the Syndication Agent and the Documentation Agent hereby
waive the requirements of clause (b) of Section 6.11 of the Credit Agreement
that the Borrower and its Restricted Subsidiaries shall have entered into, on or
before

 

--------------------------------------------------------------------------------

Limited Waiver Regarding Credit Agreement

 

 

April 1, 2009, and at all times thereafter maintain, Swap Contracts with
Qualified Counterparties with respect to not less than 50% of the forecasted
production attributable to Oil and Gas Properties constituting proved developed
producing (PDP) reserves described in the most recent Reserve Report for the
period from January 1, 2011 through December 31, 2011, so long as Borrower and
its Restricted Subsidiaries maintain the Existing Swap Contracts with respect to
such period.

(b)       The express waiver set forth in this Section 2 is limited to the
extent described herein and shall not be construed as a waiver of any other
agreement, covenant, or restriction set forth in the Credit Agreement, including
Section 6.11(c), or any other Loan Document or of any other provision of, or
time periods set forth in, clause (b) of Section 6.11 of the Credit Agreement,
other than as specified herein. The L/C Issuer and the Lenders reserve the right
to exercise any rights and remedies available to them in connection with any
present or future defaults with respect to the Credit Agreement or any other
provision of any other Loan Document.

SECTION 3.        Representations and Warranties, Etc. To induce the Lenders to
enter into this Limited Waiver, the Borrower represents and warrants to the
Administrative Agent and the Lenders that as of the date hereof, after giving
effect to this Limited Waiver:

(a)       each of the representations and warranties by the Borrower contained
in the Credit Agreement and in the other Loan Documents are true and correct on
and as of the date hereof in all material respects as though made as of the date
hereof, except those that by their terms relate solely as to an earlier date, in
which event they shall be true and correct on and as of such earlier date;

(b)       the execution, delivery and performance of this Limited Waiver has
been duly authorized by all requisite organizational action on the part of the
Borrower;

(c)       the Credit Agreement and each other Loan Document constitute valid and
legally binding agreements enforceable against each Loan Party that is a party
thereto in accordance with their respective terms, except as such enforceability
may be limited by applicable bankruptcy, insolvency, reorganization, moratorium,
fraudulent transfer or other similar laws relating to or affecting creditors’
rights generally and by general principles of equity, regardless of whether
considered in a proceeding in equity or at law; and

(d)       no Default or Event of Default exists under the Credit Agreement or
any of the other Loan Documents.

SECTION 4.        Ratification. The Borrower hereby ratifies, approves and
confirms, as of the Effective Date, (a) the covenants and agreements contained
in each Loan Document to which it is a party and (b) all of the Obligations
under the Credit Agreement and the other Loan Documents.

SECTION 5.        Effectiveness. This Limited Waiver shall become effective as
of the Effective Date when all of the conditions set forth in this Section have
been satisfied.

 

 

-2-

 

 

 

--------------------------------------------------------------------------------

Limited Waiver Regarding Credit Agreement

 

 

(a)       The Administrative Agent shall have received duly executed
counterparts of this Limited Waiver from the Borrower and the Required Lenders;
and

(b)       The Administrative Agent shall have received (i) all reasonable
documented out-of-pocket fees, costs and expenses incurred in connection with
the negotiation, preparation, execution and delivery of this Limited Waiver and
related documents (including all reasonable documented fees, charges and
disbursements of counsel to the Administrative Agent), and (ii) all other
reasonable fees, costs and expenses due and payable pursuant to Section 10.04 of
the Credit Agreement, in each case under either clause (i) or (ii) above, to the
extent then invoiced.

SECTION 6.        Governing Law; Severability; Integration. THIS LIMITED WAIVER
SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF
TEXAS. If any provision of this Limited Waiver, the Credit Agreement or any
other Loan Document is held to be illegal, invalid or unenforceable, (a) the
legality, validity and enforceability of the remaining provisions of this
Limited Waiver, the Credit Agreement and the other Loan Documents shall not be
affected or impaired thereby and (b) the parties shall endeavor in good faith
negotiations to replace the illegal, invalid or unenforceable provisions with
valid provisions the economic effect of which comes as close as possible to that
of the illegal, invalid or unenforceable provisions. The invalidity of a
provision in a particular jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction. This Limited Waiver, the
Credit Agreement and the other Loan Documents constitute the entire contract
among the parties relating to the subject matter hereof and supersede any and
all previous agreements and understandings, oral or written, relating to the
subject matter hereof.

SECTION 7.        Execution in Counterparts. This Limited Waiver may be executed
by the parties hereto in several counterparts (and by different parties hereto
in different counterparts), each of which shall constitute an original and all
of which when taken together shall constitute a single document.

SECTION 8.        Successors and Assigns. This Limited Waiver shall be binding
upon and inure to the benefit of the parties hereto and their respective
permitted successors and assigns; provided, however, that (a) no Borrower may
assign or transfer its rights or obligations hereunder without the prior written
consent of the Administrative Agent and each Lender; and (b) the rights of sale,
assignment and transfer of the Lenders are subject to Section 10.06 of the
Credit Agreement.

SECTION 9.        Miscellaneous. (a) The execution, delivery and effectiveness
of this Limited Waiver shall not, except as expressly provided herein, operate
as a waiver of any default of the Borrower or any right, power or remedy of the
Administrative Agent, the L/C Issuer, the Syndication Agent, the Documentation
Agent or the Lenders under any of the Loan Documents, nor constitute a waiver of
any provision of any of the Loan Documents; (b) this Limited Waiver is a Loan
Document executed pursuant to the Credit Agreement and shall (unless otherwise
expressly indicated therein) be construed, administered and applied in
accordance with the terms and provisions of the Credit Agreement; and (c) a
facsimile signature of any party hereto shall be deemed to be an original
signature for purposes of this Limited Waiver.

 

 

-3-

 

 

 

--------------------------------------------------------------------------------

Limited Waiver Regarding Credit Agreement

 

 

SECTION 10.      ENTIRE AGREEMENT. THIS LIMITED WAIVER, THE CREDIT AGREEMENT AND
THE OTHER LOAN DOCUMENTS REPRESENT THE FINAL AGREEMENT AMONG 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 AMONG THE
PARTIES.

[Remainder of Page Left Intentionally Blank]

 

 

-4-

 

 

 

--------------------------------------------------------------------------------

Limited Waiver Regarding Credit Agreement

 

 

IN WITNESS WHEREOF, the parties hereto have caused this Limited Waiver to be
duly executed as of the date first above written.

 

 

PIONEER SOUTHWEST ENERGY

 

PARTNERS L.P.

 

 

 

 

By: Pioneer Natural Resources GP LLC, its general

 

partner

 

 

 

 

 

By:

/s/ Richard P. Dealy

 

Name:

Richard P. Dealy

 

Title:

Executive Vice President and Chief

 

 

Financial Officer

 

 

 

S-1

 

 

--------------------------------------------------------------------------------

Limited Waiver Regarding Credit Agreement

 

 

 

BANK OF AMERICA, N.A., as

 

Administrative Agent

 

 

 

 

By:

/s/ Ronald E. McKaig

 

Name:

Ronald E. McKaig

 

Title:

Senior Vice President

 

 

 

S-2

 

 

--------------------------------------------------------------------------------

Limited Waiver Regarding Credit Agreement

 

 

 

BANK OF AMERICA, N.A., as a Lender, L/C

 

Issuer and Swing Line Lender

 

 

 

 

By:

/s/ Ronald E. McKaig

 

Name:

Ronald E. McKaig

 

Title:

Senior Vice President

 

 

 

S-3

 

 

--------------------------------------------------------------------------------

Limited Waiver Regarding Credit Agreement

 

 

 

WELLS FARGO BANK, N.A., as Syndication

 

Agent and a Lender

 

 

 

 

By:

/s/ Charles D. Kirkham

 

Name:

Charles D. Kirkham

 

Title:

Senior Vice President

 

 

 

S-4

 

 

--------------------------------------------------------------------------------

Limited Waiver Regarding Credit Agreement

 

 

 

BMO CAPITAL MARKETS FINANCING,

 

INC., as Documentation Agent and a Lender

 

 

 

 

By:

 

Name:

James V. Ducote

 

Title:

Director

 

 

 

S-5

 

 

--------------------------------------------------------------------------------

Limited Waiver Regarding Credit Agreement

 

 

 

BARCLAYS BANK PLC, as a Lender

 

 

 

 

 

 

By:

/s/ Maria Lund

 

Name:

Maria Lund

 

Title:

Vice President

 

 

 

S-6

 

 

--------------------------------------------------------------------------------

Limited Waiver Regarding Credit Agreement

 

 

 

CITIBANK, N.A., as a Lender

 

 

 

 

 

 

By:

 

Name:

Ashish Sethi

 

Title:

Attorney-in-Fact

 

 

 

S-7

 

 

--------------------------------------------------------------------------------

Limited Waiver Regarding Credit Agreement

 

 

 

DEUTSCHE BANK AG NEW YORK

 

BRANCH, as a Lender

 

 

 

 

By:

 

Name:

Marcus Tarkington

 

Title:

Director

 

 

 

 

By:

 

Name:

Heidi Sandquist

 

Title:

Vice President

 

 

 

S-8

 

 

--------------------------------------------------------------------------------

Limited Waiver Regarding Credit Agreement

 

 

 

DNB NOR BANK ASA, as a Lender

 

 

 

 

 

 

By:

/s/ Thomas Tangen

 

Name:

Thomas Tangen

 

Title:

Senior Vice President

Head of Corporate Banking

 

 

 

 

By:

/s/ Philip F. Kurpiewski

 

Name:

Philip F. Kurpiewski

 

Title:

Senior Vice President

 

 

 

S-9

 

 

--------------------------------------------------------------------------------

Limited Waiver Regarding Credit Agreement

 

 

 

JP MORGAN CHASE BANK, N.A., as a Lender

 

 

 

 

 

 

By:

/s/ Robert W. Traband

 

Name:

Robert W. Traband

 

Title:

Executive Direor

 

 

 

S-10

 

 

--------------------------------------------------------------------------------

Limited Waiver Regarding Credit Agreement

 

 

 

THE ROYAL BANK OF SCOTLAND plc, as a

 

Lender

 

 

 

 

By:

/s/ David Slye

 

Name:

David Slye

 

Title:

Senior Vice President

 

 

 

S-11

 

 

--------------------------------------------------------------------------------

Limited Waiver Regarding Credit Agreement

 

 

 

TORONTO DOMINION (TEXAS) LLC, as a

 

Lender

 

 

 

 

By:

/s/ Ian Murray

 

Name:

Ian Murray

 

Title:

Authorized Signatory

 

 

 

S-12

 

 

--------------------------------------------------------------------------------

Limited Waiver Regarding Credit Agreement

 

 

 

UBS LOAN FINANCE LLC, as a Lender

 

 

 

 

 

 

By:

/s/ Marie Haddad

 

Name:

Marie Haddad

 

Title:

Associate Director

 

 

Banking Products Services, US

 

 

 

 

By:

/s/ Irja R. Otsa

 

Name:

Irja R. Otsa

 

Title:

Associate Director

 

 

Banking Products Services, US

 

 

 

S-13

 

 

--------------------------------------------------------------------------------

Limited Waiver Regarding Credit Agreement

 

 

 

U.S. BANK NATIONAL ASSOCIATION, as a

 

Lender

 

 

 

 

By:

 

Name:

Daria Mahoney

 

Title:

Vice President

 

 

 

S-14

 

 

--------------------------------------------------------------------------------

Limited Waiver Regarding Credit Agreement

 

 

 

SOCIETE GENERALE, as a Lender

 

 

 

 

 

 

By:

/s/ Kevin Joyce

 

Name:

Kevin Joyce

 

Title:

Vice-President

 

 

 

 

S-15