Exhibit 10.17

 

SECOND AMENDMENT TO COMBINED CREDIT AGREEMENTS

 

THIS SECOND AMENDMENT TO COMBINED CREDIT AGREEMENTS, dated as of January 11,
2005 (this “Amendment”), among QUICKSILVER RESOURCES INC., a Delaware
corporation (the “U.S. Borrower”), MGV ENERGY INC., an Alberta, Canada
corporation (the “Canadian Borrower”), each of the lenders that is a signatory
to, or which becomes a signatory to, the U.S. Credit Agreement (together with
its successors and assigns, the “U.S. Lenders”), each of the lenders that is a
signatory to, or which becomes a signatory to, the Canadian Credit Agreement
(together with its successors and assigns, the “Canadian Lenders”, and together
with the U.S. Lenders, the “Combined Lenders”), JPMORGAN CHASE BANK, N.A.
(successor by merger to Bank One, N.A.), as Global Administrative Agent (in such
capacity, together with its successors in such capacity, the “Global
Administrative Agent”), JPMORGAN CHASE BANK, N.A., TORONTO BRANCH (successor by
merger to Bank One, N.A., Canada Branch), as Canadian Administrative Agent (in
such capacity, together with its successors in such capacity, the “Canadian
Administrative Agent”), BNP PARIBAS and BANK OF AMERICA, N.A., as Co-Global
Syndication Agents, and FORTIS CAPITAL CORP. and THE BANK OF NOVA SCOTIA, as
Co-Global Documentation Agents.

 

W I T N E S S E T H:

 

1. The U.S. Borrower, the Global Administrative Agent, the Co-Global Syndication
Agents, the Co-Global Documentation Agents, and the U.S. Lenders are parties to
that certain Credit Agreement dated as of July 28, 2004, as amended by that
certain First Amendment to Combined Credit Agreements dated as of September 21,
2004 ( as amended, the “U.S. Credit Agreement”), pursuant to which the U.S.
Lenders agreed to make loans to and extensions of credit on behalf of the U.S.
Borrower.

 

2. The Canadian Borrower, the Global Administrative Agent, the Canadian
Administrative Agent, the Co-Global Syndication Agents, the Co-Global
Documentation Agents, and the Canadian Lenders are parties to that certain
Credit Agreement dated as of July 28, 2004, as amended by that certain First
Amendment to Combined Credit Agreements dated as of September 21, 2004 ( as
amended, the “Canadian Credit Agreement”, and together with the U.S. Credit
Agreement, the “Combined Credit Agreements”), pursuant to which the Canadian
Lenders agreed to make loans to and extensions of credit on behalf of the
Canadian Borrower.

 

3. The parties to the Combined Credit Agreements intend to amend the Combined
Credit Agreements as follows:

 

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

 

I. Amendments to U.S. Credit Agreement.

 

A. Subsection (n) of the definition of “Permitted Investments” contained in
Section 1.1 of the U.S. Credit Agreement hereby is amended by deleting the
reference to “U.S.$10,000,000” and replacing such reference with
“U.S.$20,000,000”.

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B. Subsection (p) of the definition of “Permitted Investments” contained in
Section 1.1 of the U.S. Credit Agreement hereby is amended by deleting the
reference to “U.S.$10,000,000” and replacing such reference with
“U.S.$20,000,000”.

 

C. Section 2.7(d)(ii) of the U.S. Credit Agreement hereby is amended by deleting
the phrase “; provided, however, that at no time prior to the first scheduled
redetermination of the Global Borrowing Base following the Global Effective Date
shall the Allocated Canadian Borrowing Base exceed U.S.$150,000,000”.

 

D. Section 2.7(d)(iv) of the U.S. Credit Agreement hereby is amended (i) by
revising the first sentence thereof to read as follows:

 

“So long as no Default or Event of Default shall have occurred and be
continuing, from time to time but in no event more than (i) four (4) times per
Fiscal Year and (ii) once every thirty (30) days, upon at least five (5)
Business Days prior written notice to the Global Administrative Agent, the
Borrower may reallocate the Global Borrowing Base between the Allocated U.S.
Borrowing Base and the Allocated Canadian Borrowing Base (a “Discretionary
Borrowing Base Reallocation”).”

 

, and (ii) by deleting from the last sentence thereof the reference to “ten (10)
Business Days” and replacing such reference with “five (5) Business Days”.

 

II. Amendments to Canadian Credit Agreement.

 

A. Section 2.7(d)(ii) of the Canadian Credit Agreement hereby is amended by
deleting the phrase “; provided, however, that at no time prior to the first
scheduled redetermination of the Global Borrowing Base following the Global
Effective Date shall the Allocated Canadian Borrowing Base exceed
U.S.$150,000,000”.

 

B. Section 2.7(d)(iv) of the Canadian Credit Agreement hereby is amended (i) by
revising the first sentence thereof to read as follows:

 

“So long as no Default or Event of Default shall have occurred and be
continuing, from time to time but in no event more than (i) four (4) times per
Fiscal Year and (ii) once every thirty (30) days, upon at least five (5)
Business Days prior written notice to the Global Administrative Agent, the
Borrower may reallocate the Global Borrowing Base between the Allocated U.S.
Borrowing Base and the Allocated Canadian Borrowing Base (a “Discretionary
Borrowing Base Reallocation”).”

 

, and (ii) by deleting from the last sentence thereof the reference to “ten (10)
Business Days” and replacing such reference with “five (5) Business Days”.

 

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III. Effectiveness. This Amendment shall become effective as of the date (the
“Effective Date”) when the Global Administrative Agent shall have received:

 

  A. Counterparts hereof duly executed by the U.S. Borrower, the Canadian
Borrower, the Global Administrative Agent, the Canadian Administrative Agent and
the Combined Lenders (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); and

 

  B. An amendment fee for the account of each Combined Lender in the manner and
amount agreed upon between U.S. Borrower and the Global Administrative Agent in
that certain fee letter dated December 30, 2004 and (ii) such other fees
otherwise agreed to in writing by the U.S. Borrower.

 

IV. Reaffirmation of Representations and Warranties. To induce the Combined
Lenders and the Global Administrative Agent to enter into this Amendment, the
U.S. Borrower and the Canadian Borrower hereby reaffirm, as of the date hereof,
the following:

 

(i) The representations and warranties of each Loan Party (as such term is
defined in the U.S. Credit Agreement and the Canadian Credit Agreement,
collectively, the “Combined Loan Parties”) set forth in the Combined Loan
Documents to which it is a party are true and correct 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 date).

 

(ii) Each of the Combined Loan Parties (a) is a corporation, partnership or
limited liability company duly incorporated or organized (as applicable),
validly existing and in good standing under the laws of its jurisdiction of
incorporation or organization, (b) has all corporate, partnership or limited
liability company power (as applicable) and all material governmental licenses,
authorizations, consents and approvals required to carry on its businesses as
now conducted and as proposed to be conducted, and (c) is duly qualified to
transact business as a foreign corporation, partnership or limited liability
company in each jurisdiction where a failure to be so qualified would reasonably
be expected to have a Material Adverse Effect.

 

(iii) The execution, delivery and performance of this Amendment and the other
Combined Loan Documents by each Combined Loan Party (to the extent each Loan
Party is a party to this Agreement and such Loan Documents) (a) are within such
Loan Party’s corporate, partnership or limited liability company powers, (b)
when executed will be duly authorized by all necessary corporate, partnership or
limited liability company action, (c) require no action by or in respect of, or
filing with, any Governmental Authority (other than (i) actions or filings
pursuant to the Exchange Act and (ii) actions or filings that have been taken or
made and are in full force and effect) and (d) do not contravene, or constitute
a default under, any provision of applicable Governmental Rule (including,
without limitation, Regulation U) or of the articles or certificate of
incorporation, bylaws, regulations, partnership agreement or comparable charter
documents of any Combined Loan Party or of any agreement, judgment, injunction,
order, decree or other instrument binding upon any Combined Loan Party or result
in the creation or imposition of any Lien on any Borrowing Base Property or
Collateral other than the Liens securing the Combined Obligations.

 

 

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(iv) This Amendment and each other Combined Loan Document constitutes, or when
executed and delivered will constitute, valid and binding obligations of each
Combined Loan Party which is a party thereto, enforceable against each such
Combined Loan Party which executes the same in accordance with its terms except
as the enforceability thereof may be limited by (i) bankruptcy, insolvency,
reorganization, moratorium, or similar Governmental Rules affecting creditors’
rights generally, and (ii) equitable principles of general applicability
(whether enforcement is sought by proceedings at law or in equity).

 

(v) Neither a Default nor an Event of Default has occurred or will exist under
either Combined Credit Agreement after giving effect to the transactions
contemplated by this Amendment or the other Combined Loan Documents. Neither the
U.S. Borrower or any of its Subsidiaries nor the Canadian Borrower or any of its
Subsidiaries is in default under, nor has any event or circumstance occurred
which, but for the expiration of any applicable grace period or the giving of
notice, or both, would constitute a default under, any Material Agreement to
which the U.S. Borrower or any of its Subsidiaries or the Canadian Borrower or
any of its Subsidiaries is a party or by which the U.S. Borrower or any of its
Subsidiaries or the Canadian Borrower or any of its Subsidiaries is bound which
default would reasonably be expected to have a Material Adverse Effect. The U.S.
Borrower is in compliance with the financial covenants set forth in Article VI
of the U.S. Credit Agreement.

 

(vi) No event or events have occurred since December 31, 2003 which individually
or in the aggregate would reasonably be expected to have a Material Adverse
Effect.

 

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

 

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

 

VII. Governing Law. THIS AMENDMENT SHALL BE CONSTRUED IN ACCORDANCE WITH THE
LAWS OF THE STATE OF TEXAS.

 

NOTWITHSTANDING THE FOREGOING SENTENCE AND AFTER GIVING EFFECT TO THE TEXTUAL
AMENDMENTS CONTAINED IN SECTIONS I AND II OF THIS AMENDMENT, (i) THE U.S. CREDIT
AGREEMENT (AS AMENDED HEREBY) SHALL CONTINUE TO BE GOVERNED BY, AND CONSTRUED IN

 

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ACCORDANCE WITH, THE LAW SPECIFIED IN SECTION 10.9(a) OF THE U.S. CREDIT
AGREEMENT, AND (ii) THE CANADIAN CREDIT AGREEMENT (AS AMENDED HEREBY) SHALL
CONTINUE TO BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW SPECIFIED
IN SECTION 10.9(a) OF THE CANADIAN CREDIT AGREEMENT.

 

VIII. 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.

 

IX. 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.

 

X. 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.

 

XI. Successors and Assigns. This Amendment shall be binding upon and inure to
the benefit of the parties hereto and their respective successors and assigns
permitted hereby (including any Affiliate of an Issuing Bank that issues any
Letter of Credit), except that neither the U.S. Borrower nor the Canadian
Borrower may not assign or otherwise transfer any of its rights or obligations
hereunder without the prior written consent of the Global Administrative Agent,
each Issuing Bank and each Combined Lender (and any attempted assignment or
transfer by either the U.S. Borrower or the Canadian Borrower without such
consent shall be null and void).

 

XII. No Oral Agreements. THIS AMENDMENT, THE COMBINED CREDIT AGREEMENTS, AS
AMENDED HEREBY, AND THE OTHER COMBINED LOAN DOCUMENTS REPRESENT THE FINAL
AGREEMENT BETWEEN THE PARTIES WITH RESPECT TO THE SUBJECT MATTER HEREOF AND
THEREOF 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.

 

[SIGNATURES BEGIN ON FOLLOWING PAGE]

 

 

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IN WITNESS WHEREOF, the U.S. Borrower, the Canadian Borrower, the undersigned
Combined Lenders, the Global Administrative Agent, and the other “agents” under
the Combined Credit Agreements have executed this Amendment as of the date first
above written.

 

U.S. BORROWER QUICKSILVER RESOURCES INC. By:  

/s/ MarLu Hiller

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Name:   MarLu Hiller Title:   Treasurer CANADIAN BORROWER MGV ENERGY INC. By:  

/s/ MarLu Hiller

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Name:   MarLu Hiller Title:   Treasurer

 

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AGENTS AND COMBINED LENDERS JPMORGAN CHASE BANK, N.A. (successor by merger to
Bank One, N.A.), as Global Administrative Agent and as a U.S. Lender By:  

/s/ J. Scott Fowler

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Name:   J. Scott Fowler Title:   Vice President

 

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BNP PARIBAS, as a Co-Global Syndication Agent and as a U.S. Lender By:  

/s/ Brian M. Malone

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Name:   Brian M. Malone Title:   Managing Director By:  

/s/ Betsy Jocher

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Name:   Betsy Jocher Title:   Vice President

 

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BANK OF AMERICA, N.A., as a Co-Global Syndication Agent and as a U.S. Lender By:
 

/s/ Ronald E. McKaig

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Name:   Ronald E. McKaig Title:   Senior Vice President

 

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FORTIS CAPITAL CORP., as the Co-Global Documentation Agent and as a U.S. Lender
By:  

/s/ Christopher S. Parada

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Name:   Christopher S. Parada Title:   Vice President By:  

/s/ Darrell Holley

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Name:   Darrell Holley Title:   Managing Director

 

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THE BANK OF NOVA SCOTIA, as a Co-Global Documentation Agent and as a U.S. Lender
By:  

/s/ N. Bell

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Name:   N. Bell Title:   Senior Manager

 

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COMERICA BANK, as a U.S. Lender By:  

/s/ Michele L. Jones

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Name:   Michele L. Jones Title:  

Senior Vice President -

Texas Division

 

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THE ROYAL BANK OF SCOTLAND PLC, as a U.S. Lender By:  

/s/ Charles Zabriskie

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Name:   Charles Zabriskie Title:   Managing Director

 

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CALYON NEW YORK BRANCH, as a U.S.
Lender By:  

/s/ Philippe Soustra

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Name:   Phillippe Soustra Title:   Executive Vice President By:  

/s/ Pierre Debray

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Name:   Pierre Debray Title:   Managing Director

 

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CIBC INC., as a U.S. Lender By:  

/s/ John P. Burke

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Name:   John P. Burke Title:   Executive Director     CIBC World Markets Corp.,
as Agent

 

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COMPASS BANK, as a U.S. Lender By:  

/s/ Murray E. Brasseux

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Name:   Murray E. Brasseux Title:   Senior Vice President

 

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STERLING BANK, as a U.S. Lender By:  

/s/ Melissa Bauman

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Name:   Melissa Bauman Title:   Senior Vice President

 

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TORONTO DOMINION (TEXAS) LLC (as successor in interest to Toronto Dominion
(Texas), Inc.), as a U.S. Lender By:  

/s/ Neva Nesbitt

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Name:   Neva Nesbitt Title:   Authorized Agent

 

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HARRIS NESBITT FINANCING, INC., as a U.S. Lender By:  

/s/ James V. Ducote

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Name:   James V. Ducote Title:   Vice President

 

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SOCIETE GENERALE, as a U.S. Lender By:  

/s/ Stephen W. Warfel

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Name:   Stephen W. Warfel Title:   Vice President

 

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JPMORGAN CHASE BANK, N.A., TORONTO BRANCH, (successor by merger to Bank One,
N.A., Canada Branch), as Canadian Administrative Agent and as a Canadian Lender
By:  

/s/ J. Scott Fowler

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Name:   J. Scott Fowler Title:   Vice President

 

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BNP PARIBAS (CANADA), as a Canadian Lender By:  

/s/ Michael Gosselin

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Name:   Michael Gosselin Title:   Managing Director By:  

/s/ Edward Pak

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Name:   Edward Pak Title:   Assistant Vice President

 

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BANK OF AMERICA, N.A. (by its Canada branch), as a Canadian Lender By:  

/s/ Medina Sales De Andrade

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Name:   Medina Sales De Andrade Title:   Assistant Vice President

 

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THE BANK OF NOVA SCOTIA, as a Canadian Lender By:  

/s/ Brian Williamson

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Name:   Brian Williamson Title:   Director

 

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COMERICA BANK, CANADA BRANCH, as a Canadian Lender By:  

/s/ Robert C. Roseri

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Name:   Robert C. Roseri Title:   Vice President

 

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CANADIAN IMPERIAL BANK OF COMMERCE, as a Canadian Lender By:  

/s/ John P. Burke

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Name:   John P. Burke Title:   Executive Director     CIBC World Markets Corp.,
As Agent

 

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TORONTO DOMINION BANK, as a Canadian Lender By:  

/s/ Parin Kanji

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Name:   Parin Kanji Title:   Assistant Manager     Corporate Credit Compliance

 

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BANK OF MONTREAL, as a Canadian Lender By:  

/s/ James V. Ducote

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Name:   James V. Ducote Title:   Director

 

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SOCIETE GENERALE (CANADA), as a Canadian Lender By:  

/s/ Cynthia Hansen

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Name:   Cynthia Hansen Title:   Managing Director     Head of Corporate Credit
Group By:  

/s/ Francois Laliberte

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Name:   Francois Laliberte Title:   Deputy Head of Corporate Credit Group

 

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