Exhibit 10.1

 

SIXTEENTH AMENDMENT TO
SECOND AMENDED AND RESTATED CREDIT AGREEMENT
AND
LIMITED CONSENT

 

THIS SIXTEENTH AMENDMENT TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT AND
LIMITED CONSENT (this “Amendment”), effective as of the 2nd day of April, 2013
(the “Effective Date”), is entered into by and among MAGNUM HUNTER RESOURCES
CORPORATION, a Delaware corporation (the “Borrower”), the guarantors party
hereto (the “Guarantors”), the lenders party hereto (the “Lenders”) and BANK OF
MONTREAL, as administrative agent for the Lenders (the “Administrative Agent”).

 

RECITALS

 

WHEREAS, the Borrower, the Lenders and the Administrative Agent entered into
that certain Second Amended and Restated Credit Agreement dated April 13, 2011
(as amended, restated, amended and restated, supplemented or otherwise modified
from time to time, the “Credit Agreement”);

 

WHEREAS, the Borrower has advised the Administrative Agent and the Lenders that
it is negotiating to sell 100% of the Equity Interests of Eagle Ford
Hunter, Inc. to Penn Virginia Oil & Gas Corporation, a Virginia corporation (the
“Purchaser”), pursuant to that certain Stock Purchase Agreement (the “Eagle Ford
Sale Agreement”), by and among the Borrower, the Purchaser and Penn Virginia
Corporation, a Virginia corporation (“PVA”);

 

WHEREAS, the sale contemplated by the Eagle Ford Sale Agreement (the “Eagle Ford
Sale”) is not permitted under Section 9.11(d) of the Credit Agreement because a
portion of the consideration therefor may consist of common stock of PVA (the
“PVA Stock”);

 

WHEREAS, as a result of the anticipated inclusion of the PVA Stock in the
consideration to be paid to Borrower upon consummation of the Eagle Ford Sale,
the entering into of the Eagle Ford Sale Agreement by the Borrower and the
consummation of the Eagle Ford Sale constitutes an Investment under the Credit
Agreement, which Investment is not permitted under Section 9.05 of the Credit
Agreement;

 

WHEREAS, the Borrower has requested that the Lenders (a) waive
Section 9.11(d) of the Credit Agreement to the limited extent necessary to
permit the Borrower to enter into the Eagle Ford Sale Agreement and consummate
the Eagle Ford Sale and (b) agree to amend the Credit Agreement to permit the
ownership and future disposition by the Borrower of the PVA Stock;

 

WHEREAS, said parties are willing to so waive and amend the Credit Agreement
subject to the terms and conditions set forth herein.

 

NOW, THEREFORE, in consideration of the foregoing and the mutual covenants set
forth in this Amendment, the Borrower, the Guarantors, the Lenders and the
Administrative Agent agree as follows:

 

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1.                                      Defined Terms.  Unless otherwise defined
herein, capitalized terms used herein have the meanings assigned to them in the
Credit Agreement.

 

2.                                      Limited Consent and Waiver.  Subject to
the terms and conditions set forth herein, the undersigned Lenders hereby waive
subsection (1) of Section 9.11(d) of the Credit Agreement to the limited extent
necessary to permit the Borrower to consummate the Eagle Ford Sale, provided the
following conditions have been satisfied:

 

(a)                                 the Eagle Ford Sale shall be consummated
substantially consistent with the terms and conditions of the Eagle Ford Sale
Agreement, without waiver or amendment of any material terms thereof not
otherwise approved by the Administrative Agent (such approval not to be
unreasonably withheld);

 

(b)                                 no Event of Default shall exist before or
immediately after giving effect to the Eagle Ford Sale;

 

(c)                                  the Borrower shall have delivered a
certificate of a Responsible Officer certifying that the consideration received
in respect of the Eagle Ford Sale is equal to or greater than the fair market
value of the assets that are the subject of the Eagle Ford Sale; and

 

(d)                                 the conditions set forth in subsections (2),
(3) and (4) of Section 9.11(d) of the Credit Agreement shall be satisfied.

 

3.                                      Amendments to Credit Agreement.

 

(a)                                 Amendment to Section 9.05.  Section 9.05 of
the Credit Agreement is hereby amended to delete the word “and” at the end of
subsection (s) thereof, delete the period at the end of subsection (t) thereof
and replace said period with a semicolon and the word “and” and add the
following new subsection (u) to the end of said Section 9.05:

 

“(u)                           Investments in the common stock of Penn Virginia
Corporation received by the Borrower as a portion of the consideration for the
sale of the Equity Interests of Eagle Ford Hunter, Inc. to Penn Virginia Oil &
Gas Corporation, in an aggregate amount not to exceed the lesser of
(i) $40,000,000 and (ii) ten percent (10%) of the total consideration to be paid
to the Borrower in connection with such sale, measured on the date of execution
of the stock purchase agreement in respect thereof; provided that this
subsection (u) shall cease to be effective from and after the sale, transfer or
disposition of all of such Investments by the Borrower.”

 

(b)                                 Amendment to Section 9.11.  Section 9.11 of
the Credit Agreement is hereby amended to restate subsection (h) thereof in its
entirety as follows:

 

“(h)                           the sale, transfer or disposition of the
Investments described in subsections (t) and (u) of Section 9.05;”.

 

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4.                                      Ratification.  Each of the Borrower and
the Guarantors hereby ratifies all of its respective obligations under the
Credit Agreement and each of the Loan Documents to which it is a party, and
agrees and acknowledges that the Credit Agreement and each of the Loan Documents
to which it is a party are and shall continue to be in full force and effect as
amended and modified by this Amendment.  Except as provided herein, nothing in
this Amendment extinguishes, novates or releases any right, claim, lien,
security interest or entitlement of any of the Lenders or the Administrative
Agent created by or contained in any of such documents nor is the Borrower nor
any Guarantor released from any covenant, warranty or obligation created by or
contained herein or therein.

 

5.                                      Representations and Warranties.  The
Borrower and Guarantors hereby represent and warrant to the Administrative Agent
and the Lenders that (a) this Amendment has been duly executed and delivered on
behalf of the Borrower and Guarantors, (b) this Amendment constitutes a valid
and legally binding agreement enforceable against the Borrower and Guarantors in
accordance with its terms, subject to applicable bankruptcy, insolvency,
fraudulent transfer, reorganization, moratorium or other laws affecting
creditors’ rights generally and subject to general principles of equity,
regardless of whether considered in a proceeding in equity or at law, (c) the
representations and warranties contained in the Credit Agreement and the 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 to the extent any such
representations and warranties are expressly limited to an earlier date, in
which case, such representations and warranties shall continue to be true and
correct as of such specified earlier date), (d) after giving effect to this
Amendment, no Default or Event of Default exists under the Credit Agreement or
under any Loan Document as of the Effective Date and (e) the execution, delivery
and performance of this Amendment has been duly authorized by the Borrower and
Guarantors.

 

6.                                      Conditions to Effectiveness.  This
Amendment shall be effective on the Effective Date upon satisfaction of the
following conditions:

 

(a)                                 the Borrower, the Guarantors and the
Required Lenders shall have executed and delivered to the Administrative Agent
counterparts of this Amendment; and

 

(b)                                 the Borrower shall have paid to the
Administrative Agent and the Lenders all fees and expenses that are due in
connection with this Amendment.

 

7.                                      Counterparts.  This Amendment may be
signed in any number of counterparts, which may be delivered in original,
electronic or facsimile form each of which shall be construed as an original,
but all of which together shall constitute one and the same instrument.

 

8.                                      Governing Law.  This Amendment, all
Notes, the other Loan Documents and all other documents executed in connection
herewith shall be deemed to be contracts and agreements under the laws of the
State of New York and of the United States of America and for all purposes shall
be construed in accordance with, and governed by, the laws of New York and of
the United States.

 

9.                                      Final Agreement of the Parties.  Any
previous agreement among the parties with respect to the subject matter hereof
is superseded by the Credit Agreement, as amended by this

 

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Amendment.  Nothing in this Amendment, express or implied is intended to confer
upon any party other than the parties hereto any rights, remedies, obligations
or liabilities under or by reason of this Amendment.

 

[Signature Pages Follow]

 

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IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed
by their respective officers thereunto duly authorized as of the Effective Date.

 

 

BORROWER:

 

 

 

 

MAGNUM HUNTER RESOURCES

 

CORPORATION, a Delaware corporation

 

 

 

 

 

 

 

By:

/s/ Ronald D. Ormand

 

 

Ronald D. Ormand

 

 

Chief Financial Officer

 

 

 

 

 

 

 

GUARANTORS:

 

 

 

 

PRC WILLISTON, LLC,

 

a Delaware limited liability company

 

 

 

 

By:

Magnum Hunter Resources Corporation,

 

 

its sole member

 

 

 

 

 

 

 

 

 

By:

/s/ Ronald D. Ormand

 

 

 

Ronald D. Ormand

 

 

 

Chief Financial Officer

 

 

 

 

 

 

 

MAGNUM HUNTER RESOURCES LP,

 

a Delaware limited partnership

 

 

 

 

By:

Magnum Hunter Resources GP, LLC,

 

 

its general partner

 

 

 

 

 

 

By:

Magnum Hunter Resources Corporation,

 

 

 

its sole member

 

 

 

 

 

 

 

 

 

 

 

By:

/s/ Ronald D. Ormand

 

 

 

 

Ronald D. Ormand

 

 

 

 

Chief Financial Officer

 

Signature Page to Sixteenth Amendment to Credit Agreement

 

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MAGNUM HUNTER RESOURCES GP, LLC,

 

a Delaware limited liability company

 

 

 

 

By:

Magnum Hunter Resources Corporation,

 

 

its sole member

 

 

 

 

 

 

 

 

 

By:

/s/ Ronald D. Ormand

 

 

 

Ronald D. Ormand

 

 

 

Chief Financial Officer

 

 

 

 

 

 

 

TRIAD HUNTER, LLC,

 

a Delaware limited liability company

 

 

 

 

 

 

 

By:

/s/ Ronald D. Ormand

 

 

Ronald D. Ormand

 

 

Vice President

 

 

 

 

 

 

 

EAGLE FORD HUNTER, INC.,

 

a Colorado corporation

 

 

 

 

 

 

 

By:

/s/ Ronald D. Ormand

 

 

Ronald D. Ormand

 

 

Secretary

 

 

 

 

 

 

 

MAGNUM HUNTER PRODUCTION INC.,

 

a Kentucky corporation

 

 

 

 

 

 

 

By:

/s/ Ronald D. Ormand

 

 

Ronald D. Ormand

 

 

Chief Financial Officer

 

 

 

 

 

 

 

NGAS HUNTER, LLC

 

 

 

 

 

 

 

By:

/s/ Ronald D. Ormand

 

 

Ronald D. Ormand

 

 

Vice President and Treasurer

 

Signature Page to Sixteenth Amendment to Credit Agreement

 

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MHR CALLCO CORPORATION,

 

a corporation existing under the laws of the Province of Alberta

 

 

 

 

 

 

 

By:

/s/ Ronald D. Ormand

 

 

Ronald D. Ormand

 

 

Vice President

 

 

 

 

 

 

 

MHR EXCHANGECO CORPORATION,

 

a corporation existing under the laws of the Province of Alberta

 

 

 

 

 

 

 

By:

/s/ Ronald D. Ormand

 

 

Ronald D. Ormand

 

 

Vice President

 

 

 

 

 

 

 

WILLISTON HUNTER CANADA, INC.,

 

a corporation existing under the laws of the Province of Alberta

 

 

 

 

 

 

 

By:

/s/ Ronald D. Ormand

 

 

Ronald D. Ormand

 

 

Executive Vice President and Chief Financial Officer

 

 

 

 

 

 

 

WILLISTON HUNTER INC.,

 

a Delaware corporation

 

 

 

 

 

 

 

By:

/s/ Ronald D. Ormand

 

 

Ronald D. Ormand

 

 

Executive Vice President and Chief Financial Officer

 

Signature Page to Sixteenth Amendment to Credit Agreement

 

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WILLISTON HUNTER ND, LLC,

 

a Delaware limited liability company

 

 

 

 

 

 

 

By:

/s/ Ronald D. Ormand

 

 

Ronald D. Ormand

 

 

Vice President and Treasurer

 

 

 

 

 

 

 

BAKKEN HUNTER, LLC,

 

a Delaware limited liability company

 

 

 

 

 

 

 

By:

/s/ Ronald D. Ormand

 

 

Ronald D. Ormand

 

 

Executive Vice President

 

 

 

 

 

 

 

MAGNUM HUNTER MARKETING, LLC,

 

a Delaware limited liability company

 

 

 

 

 

 

 

By:

/s/ Ronald D. Ormand

 

 

Ronald D. Ormand

 

 

Executive Vice President and Treasurer

 

 

 

 

 

 

 

VIKING INTERNATIONAL RESOURCES CO., INC.,

 

a Delaware limited liability company

 

 

 

 

 

 

 

By:

/s/ Ronald D. Ormand

 

 

Ronald D. Ormand

 

 

Executive Vice President and Treasurer

 

Signature Page to Sixteenth Amendment to Credit Agreement

 

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ADMINISTRATIVE AGENT AND LENDER:

 

 

 

BANK OF MONTREAL

 

 

 

 

 

 

By:

/s/ Gumaro Tijerina

 

 

Gumaro Tijerina

 

 

Director

 

Signature Page to Sixteenth Amendment to Credit Agreement

 

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LENDER:

 

 

 

CAPITAL ONE, NATIONAL ASSOCIATION

 

 

 

 

 

 

By:

/s/ Nancy M. Mak

 

Name:

Nancy M. Mak

 

Title:

Senior Vice President

 

Signature Page to Sixteenth Amendment to Credit Agreement

 

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LENDER:

 

 

 

CITIBANK, N.A.

 

 

 

 

 

 

 

By:

/s/ Eamon Baqui

 

Name:

Eamon Baqui

 

Title:

Vice-President

 

Signature Page to Sixteenth Amendment to Credit Agreement

 

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LENDER:

 

 

 

DEUTSCHE BANK TRUST COMPANY AMERICAS

 

 

 

 

 

 

 

By:

/s/ Calli S. Hayes

 

Name:

Calli S. Hayes

 

Title:

Managing Director

 

 

 

 

 

 

 

By:

/s/ Eric Pratt

 

Name:

Eric Pratt

 

Title:

Director

 

Signature Page to Sixteenth Amendment to Credit Agreement

 

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LENDER

 

 

 

ROYAL BANK OF CANADA

 

 

 

 

 

 

By:

/s/ Mark Lumpkin, Jr.

 

Name:

Mark Lumpkin, Jr.

 

Title:

Authorized Signatory

 

Signature Page to Sixteenth Amendment to Credit Agreement

 

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LENDER:

 

 

 

UBS LOAN FINANCE LLC

 

 

 

 

 

 

By:

/s/ Lana Gifas

 

Name:

Lana Gifas

 

Title:

Director

 

 

 

 

 

 

 

By:

/s/ Joselin Fernandes

 

Name:

Joselin Fernandes

 

Title:

Associate Director

 

Signature Page to Sixteenth Amendment to Credit Agreement

 

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LENDER

 

 

 

ABN AMRO CAPITAL USA LLC

 

 

 

 

 

 

By:

/s/ Urvashi Zutshi

 

Name:

Urvashi Zutshi

 

Title:

Managing Director

 

 

 

 

 

 

 

By:

/s/ David L. Montgomery

 

Name:

David L. Montgomery

 

Title:

Director

 

Signature Page to Sixteenth Amendment to Credit Agreement

 

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LENDER

 

 

 

BANK OF AMERICA, N.A.

 

 

 

 

 

 

By:

/s/ Jason Zilewicz

 

Name:

Jason Zilewicz

 

Title:

Assistant Vice President

 

Signature Page to Sixteenth Amendment to Credit Agreement

 

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LENDER:

 

 

 

KEYBANK NATIONAL ASSOCIATION

 

 

 

 

 

 

 

By:

/s/ Chulley Bogle

 

Name:

Chulley Bogle

 

Title:

Vice President

 

Signature Page to Sixteenth Amendment to Credit Agreement

 

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LENDER:

 

 

 

SUNTRUST BANK

 

 

 

 

 

 

By:

/s/ Shannon Juhan

 

Name:

Shannon Juhan

 

Title:

Vice President

 

Signature Page to Sixteenth Amendment to Credit Agreement

 

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LENDER:

 

 

 

AMEGY BANK NATIONAL ASSOCIATION

 

 

 

 

 

 

By:

/s/ H. Brock Hudson

 

Name:

H. Brock Hudson

 

Title:

Senior Vice President

 

Signature Page to Sixteenth Amendment to Credit Agreement

 

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LENDER:

 

 

 

CREDIT SUISSE AG, Cayman Islands Branch

 

 

 

 

 

 

By:

/s/ Vipul Dhadda

 

Name:

Vipul Dhadda

 

Title:

Vice President

 

 

 

 

 

 

 

By:

/s/ Wei-Jen Yuan

 

Name:

Wei-Jen Yuan

 

Title:

Associate

 

Signature Page to Sixteenth Amendment to Credit Agreement

 

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LENDER:

 

 

 

GOLDMAN SACHS BANK USA

 

 

 

 

 

 

By:

/s/ Michelle Latzoni

 

Name:

Michelle Latzoni

 

Title:

Authorized Signatory

 

Signature Page to Sixteenth Amendment to Credit Agreement

 

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