Exhibit 10.1
     Execution Version
 
 
SEVENTH AMENDMENT TO
AMENDED AND RESTATED CREDIT AGREEMENT
Dated November 15, 2009
Among
RESOLUTE ANETH, LLC,
as Borrower,
WACHOVIA BANK, NATIONAL ASSOCIATION,
as Administrative Agent,
WELLS FARGO BANK, NATIONAL ASSOCIATION
and BMO CAPITAL MARKETS FINANCING, INC.,
as Co-Syndication Agents,
DEUTSCHE BANK SECURITIES INC. and FORTIS CAPITAL CORP.,
as Co-Documentation Agents,
and
The Lenders Party Hereto
 
 

 

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     THIS SEVENTH AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT (this
“Seventh Amendment”), dated as of November 15, 2009, is by and among Resolute
Aneth, LLC, a Delaware limited liability company (the “Borrower”), Resolute
Energy Corporation, a Delaware corporation, and certain of its subsidiaries
(collectively, the “Guarantors”), Wachovia Bank, National Association, as
Administrative Agent (the “Administrative Agent”), Wells Fargo Bank, National
Association and BMO Capital Markets Financing, Inc., as Co-Syndication Agents
(the “Co-Syndication Agents”), Deutsche Bank Securities Inc. and Fortis Capital
Corp., as Co-Documentation Agents (the “Co-Documentation Agents”) and the other
Lenders party hereto (the “Lenders”).
Recitals
     WHEREAS, the Borrower, the Guarantors, the Administrative Agent and the
other lenders party thereto entered into that certain Amended and Restated
Credit Agreement, dated April 14, 2006, as amended by that certain First
Amendment to Amended and Restated Credit Agreement, dated June 27, 2007, that
certain Second Amendment to Amended and Restated Credit Agreement, dated
September 12, 2007, that certain Third Amendment to Amended and Restated Credit
Agreement dated September 30, 2008, that certain Fourth Amendment to Amended and
Restated Credit Agreement dated May 12, 2009, that certain Fifth Amendment to
Amended and Restated Credit Agreement dated July 28, 2009, and that certain
Sixth Amendment to Amended and Restated Credit Agreement dated September 17,
2009 (as the same may be amended, modified, supplemented or restated from time
to time, the “Credit Agreement”);
     WHEREAS, the Borrower has requested that the Administrative Agent and the
Majority Lenders amend the Credit Agreement to adjust the definition of “EBITDA”
to add back transaction costs associated with the Hicks Merger; and
     WHEREAS, subject to the satisfaction of the conditions set forth herein,
the Administrative Agent and the Majority Lenders are willing to amend the
Credit Agreement and to take such other actions as provided herein.
     NOW, THEREFORE, in consideration of the premises and the mutual covenants
contained herein and in the Credit Agreement, and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the
parties hereto, intending to be legally bound, hereby agree as follows:
ARTICLE I
Definitions
Each capitalized term used in this Seventh Amendment and not defined herein
shall have the meaning assigned to such term in the Credit Agreement.
ARTICLE II
Amendments

 

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     Section 2.01 Amendments to Section 1.02 of the Credit Agreement.
          (a) Section 1.02 of the Credit Agreement is hereby amended by adding
the following new definitions in their proper alphabetical order:
     ““Seventh Amendment” means that certain Seventh Amendment to Amended and
Restated Credit Agreement, dated as of November 15, 2009, among the Borrower,
the Administrative Agent and the other Lenders party thereto.”
     ““Seventh Amendment Effective Date” means November 15, 2009.”
          (b) The definition of “Agreement” in Section 1.02 of the Credit
Agreement is hereby amended by deleting it in its entirety and inserting the
following in lieu thereof:
     ““Agreement” means this Credit Agreement, as amended by the First
Amendment, further amended by the Second Amendment, further amended by the Third
Amendment, further amended by the Fourth Amendment, further amended by the Fifth
Amendment, further amended by the Sixth Amendment, and further Amended by the
Seventh Amendment, as the same may from time to time be amended, modified,
supplemented or restated.”
          (c) The definition of “EBITDA” in Section 1.02 of the Credit Agreement
is hereby amended by deleting it in its entirety and inserting the following in
lieu thereof:
     ““EBITDA” means, for any period, the sum of (a) Consolidated Net Income for
such period, plus (b) the following expenses or charges to the extent deducted
from Consolidated Net Income in such period: (i) interest, (ii) income and
franchise taxes, (iii) depreciation, depletion, amortization, and other non-cash
charges, and (iv) costs and expenses incurred in connection with the Hicks
Merger not to exceed $32,500,000, minus (c) all non-cash income added to
Consolidated Net Income.”
ARTICLE III
Conditions Precedent
     This Seventh Amendment shall be subject to the satisfaction of the
following conditions precedent or concurrent on or before November 16, 2009, and
after giving effect to this Seventh Amendment:
     (a) the Borrower, each of the Guarantors and each of the Majority Lenders
shall have executed and delivered counterparts of this Seventh Amendment;
     (b) the Lenders shall have received all expenses for which invoices have
been presented, on or before the Seventh Amendment Effective Date; and
     (c) the Lenders shall have received such legal opinions, officer’s
certificates, resolutions, documents and other instruments as are customary for
transactions of this type or as they may reasonably request.

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ARTICLE IV
Representations and Warranties
     The Borrower hereby represents and warrants to each Lender that:
     (a) Each of the representations and warranties made by the Borrower under
the Credit Agreement and each other Loan Document is true and correct on and as
of the actual date of execution of this Seventh Amendment by the Borrower, as if
made on and as of such date, except for any representations and warranties made
as of a specified date, which are true and correct as of such specified date.
     (b) At the time of, and immediately after giving effect to, this Seventh
Amendment, no Default has occurred and is continuing.
     (c) The execution, delivery and performance by the Borrower of this Seventh
Amendment have been duly authorized by the Borrower.
     (d) This Seventh Amendment constitutes the legal, valid and binding
obligation of the Borrower, enforceable against the Borrower in accordance with
its terms.
     (e) The execution, delivery and performance by the Borrower of this Seventh
Amendment (i) does not require any consent or approval of, registration or
filing with, or any other action by, any Governmental Authority or any other
third Person (including shareholders or any class of directors, whether
interested or disinterested, of the Borrower or any other Person), nor is any
such consent, approval, registration, filing or other action necessary for the
validity or enforceability of this Seventh Amendment or any Loan Document or the
consummation of the transactions contemplated thereby, except such as have been
obtained or made and are in full force and effect other than those third party
approvals or consents which, if not made or obtained, would not cause a Default
hereunder, could not reasonably be expected to have a Material Adverse Effect or
do not have an adverse effect on the enforceability of the Loan Documents,
(ii) will not violate any applicable law or regulation or the charter, by-laws
or other organizational documents of the Borrower or any Restricted Subsidiary
or any order of any Governmental Authority, (iii) will not violate or result in
a default under any indenture, agreement or other instrument binding upon the
Borrower or any Restricted Subsidiary or its Properties, or give rise to a right
thereunder to require any payment to be made by the Borrower or such Restricted
Subsidiary and (iv) will not result in the creation or imposition of any Lien on
any Property of the Borrower or any Restricted Subsidiary (other than the Liens
created by this Seventh Amendment or the Loan Documents).
ARTICLE V
Miscellaneous
     Section 5.01 Credit Agreement in Full Force and Effect as Amended. Except
as specifically amended hereby, the Credit Agreement and other Loan Documents
shall remain in full force and effect and are hereby ratified and confirmed as
so amended. Except as expressly set forth herein, this Seventh Amendment shall
not be deemed to be a waiver, amendment or modification of any provisions of the
Credit Agreement or any other Loan Document or any right, power or remedy of the
Administrative Agent or Lenders, or constitute a waiver of any provision

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of the Credit Agreement or any other Loan Document, or any other document,
instrument and/or agreement executed or delivered in connection therewith or of
any Default or Event of Default under any of the foregoing, in each case whether
arising before or after the date hereof or as a result of performance hereunder
or thereunder. This Seventh Amendment also shall not preclude the future
exercise of any right, remedy, power, or privilege available to the
Administrative Agent and/or Lenders whether under the Credit Agreement, the
other Loan Documents, at law or otherwise. All references to the Credit
Agreement shall be deemed to mean the Credit Agreement as modified hereby. The
parties hereto agree to be bound by the terms and conditions of the Credit
Agreement and Loan Documents as amended by this Seventh Amendment, as though
such terms and conditions were set forth herein. Each reference in the Credit
Agreement to “this Agreement,” “hereunder,” “hereof,” “herein” or words of
similar import shall mean and be a reference to the Credit Agreement as amended
by this Seventh Amendment, and each reference herein or in any other Loan
Documents to the “Credit Agreement” shall mean and be a reference to the Credit
Agreement as amended and modified by this Seventh Amendment.
     Section 5.02 GOVERNING LAW. THIS SEVENTH AMENDMENT, AND THE RIGHTS AND
OBLIGATIONS OF THE PARTIES HEREUNDER, SHALL BE CONSTRUED IN ACCORDANCE WITH AND
BE GOVERNED BY THE LAWS OF THE STATE OF NEW YORK.
     Section 5.03 Descriptive Headings, Etc. The descriptive headings of the
sections of this Seventh Amendment are inserted for convenience only and shall
not be deemed to affect the meaning or construction of any of the provisions
hereof. The statements made and the terms defined in the recitals to this
Seventh Amendment are hereby incorporated into this Seventh Amendment in their
entirety.
     Section 5.04 Payment of Expenses. The Borrower agrees to pay or reimburse
the Administrative Agent for all of its reasonable out-of-pocket costs and
expenses incurred in connection with this Seventh Amendment, the Loan Documents
and any other documents prepared in connection herewith and the transactions
contemplated hereby, including, without limitation, the reasonable fees and
disbursements of counsel to the Lenders. The agreement set forth in this
Section 5.04 shall survive the termination of this Seventh Amendment and the
Credit Agreement.
     Section 5.05 Entire Agreement. This Seventh Amendment and the documents
referred to herein represent the entire understanding of the parties hereto
regarding the subject matter hereof and supersede all prior and contemporaneous
oral and written agreements of the parties hereto with respect to the subject
matter hereof. This Seventh Amendment is a Loan Document executed under the
Credit Agreement.
     Section 5.06 Counterparts. This Seventh Amendment may be executed in any
number of counterparts and by different parties on separate counterparts, each
of which shall constitute an original but all of which when taken together shall
constitute but one agreement. Delivery of an executed counterpart of the
signature page of this Seventh Amendment by facsimile or other electronic
transmission shall be effective as delivery of a manually executed counterpart
thereof.

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     Section 5.07 Successors. The execution and delivery of this Seventh
Amendment by any Lender shall be binding upon each of its successors and
assigns.
[Signatures Begin on Next Page]

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

            RESOLUTE ANETH, LLC
      By:   /s/ Theodore Gazulis         Theodore Gazulis,        Vice President
— Finance and Chief Financial Officer     

GUARANTORS:

            RESOLUTE ENERGY CORPORATION

HICKS ACQUISITION COMPANY I, INC.

RESOLUTE NATURAL RESOURCES COMPANY, LLC (f/k/a Resolute Natural Resources
Company)

RNRC HOLDINGS, INC.

RESOLUTE WYOMING, INC. (f/k/a Primary Natural Resources, Inc.)

BWNR, LLC

WYNR, LLC
      By:   /s/ Theodore Gazulis         Theodore Gazulis,        Vice President
— Finance and Chief Financial Officer     

Signature Page to
Seventh Amendment to Amended and Restated Credit Agreement

 

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            WACHOVIA BANK, NATIONAL ASSOCIATION,
as Administrative Agent and a Lender
      By:   /s/ Oleg Kogan         Oleg Kogan        Vice President     

Signature Page to
Seventh Amendment to Amended and Restated Credit Agreement

 

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            WELLS FARGO BANK, NATIONAL ASSOCIATION,
as Co-Syndication Agent and a Lender
      By:   /s/ Oleg Kogan         Oleg Kogan        Vice President     

Signature Page to
Seventh Amendment to Amended and Restated Credit Agreement

 

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            BMO CAPITAL MARKETS FINANCING, INC.,
as Co-Syndication Agent and a Lender
      By:   /s/ Gumaro Tijerina         Name:   Gumaro Tijerina        Title:  
Director     

Signature Page to
Seventh Amendment to Amended and Restated Credit Agreement

 

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            DEUTSCHE BANK SECURITIES INC.,
as Co-Documentation Agent
      By:   /s/ Valerie Shapiro         Name:   Valerie Shapiro        Title:  
Vice President              By:   /s/ Michael Getz         Name:   Michael Getz 
      Title:   Associate     

            DEUTSCHE BANK TRUST COMPANY AMERICAS, as a Lender
      By:   /s/ Marcus M. Tarkington         Name:   Marcus M. Tarkington       
Title:   Director              By:   /s/ Paul O’Leary         Name:   Paul
O’Leary        Title:   Director     

Signature Page to
Seventh Amendment to Amended and Restated Credit Agreement

 

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            FORTIS CAPITAL CORP.,
as Co-Documentation Agent and a Lender
      By:   /s/ Michaela Braun         Name:   Michaela Braun        Title:  
Vice President              By:   /s/ Stephen R. Staples         Name:   Stephen
R. Staples        Title:   Director     

Signature Page to
Seventh Amendment to Amended and Restated Credit Agreement

 

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            U.S. BANK NATIONAL ASSOCIATION,
as a Lender
      By:   /s/ Bruce E. Hernandez         Name:   Bruce E. Hernandez       
Title:   Vice President     

Signature Page to
Seventh Amendment to Amended and Restated Credit Agreement

 

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            UNION BANK, N.A.,
as a Lender
      By:   /s/ Douglas Gale         Name:   Douglas Gale        Title:   Vice
President     

Signature Page to
Seventh Amendment to Amended and Restated Credit Agreement

 

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            UBS LOAN FINANCE LLC,
as a Lender
      By:   /s/ Mary E. Evans         Name:   Mary E. Evans        Title:  
Associate Director              By:   /s/ Marie Haddad         Name:   Marie
Haddad        Title:   Associate Director     

Signature Page to
Seventh Amendment to Amended and Restated Credit Agreement

 

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            COMERICA BANK,
as a Lender
      By:   /s/ Matt Turner         Name:   Matt Turner        Title:  
Assistant Vice President     

Signature Page to
Seventh Amendment to Amended and Restated Credit Agreement

 

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            GUARANTY BANK AND TRUST COMPANY,
as a Lender
      By:   /s/ Gail J. Norsinger         Name:   Gail J. Norsinger       
Title:   Senior Vice President     

Signature Page to
Seventh Amendment to Amended and Restated Credit Agreement

 

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            CITICORP USA, INC.,
as a Lender
      By:   /s/ Todd J. Mogil         Name:   Todd J. Mogil        Title:   Vice
President     

Signature Page to
Seventh Amendment to Amended and Restated Credit Agreement

 

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            ALLIED IRISH BANKS, p.l.c.,
as a Lender
      By:   /s/ Vaughn Buck         Name:   Vaughn Buck        Title:  
Director              By:   /s/ David O’Driscol         Name:   David O’Driscol 
      Title:   Assistant Vice President     

Signature Page to
Seventh Amendment to Amended and Restated Credit Agreement