exv10w1






Exhibit 10.1




EXECUTION VERSION




FIFTH AMENDMENT TO CREDIT AGREEMENT




     This FIFTH AMENDMENT TO CREDIT AGREEMENT (this “Amendment”) is dated as of August 28,
2009, among GASCO ENERGY, INC. (“Borrower”), CERTAIN SUBSIDIARIES OF BORROWER, as
Guarantors (the “Guarantors”), the LENDERS party hereto (the “Lenders”), and
JPMORGAN CHASE BANK, N.A., as Administrative Agent (“Administrative Agent”). Unless the
context otherwise requires or 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 Borrower, the Guarantors, the Administrative Agent and the Lenders have entered
into that certain Credit Agreement dated as of March 29, 2006 (as the same has been and may
hereafter be amended, restated, supplemented or otherwise modified from time to time, the
“Credit Agreement”); and



     WHEREAS, the Borrower, the Guarantors, the Administrative Agent and the Lenders desire to
amend the Credit Agreement as provided herein upon 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 Borrower, the Guarantors, the Lenders and the Administrative
Agent 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 effective as of the
date Borrower satisfies the conditions set forth in Section 2 of this Amendment.



     1.1 Amended Definitions. Section 1.01 of the Credit Agreement shall be and it hereby
is amended by amending and restating the following definition in its entirety to read as follows:




     “Applicable Rate” means, for any day, with respect to any Eurodollar
Loan or ABR Loan, or with respect to the Unused Commitment Fees payable hereunder,
as the case may be, the applicable rate per annum set forth below under the caption
“Eurodollar Spread”, “ABR Spread” or “Unused Commitment Fee Rate”, as the case may
be, based upon the Borrowing Base Usage applicable on such date:




					
	 	 	 	 	 
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	 	 	 	 	 	 	ABR	 	Unused Commitment
	Borrowing Base Usage	 	Eurodollar Spread	 	Spread	 	Fee Rate
	≥ 90%
	 	 	350 b.p.	 	 	 	250 b.p.	 	 	 	50 b.p.	 
	≥ 75% and < 90%
	 	 	300 b.p.	 	 	 	200 b.p.	 	 	 	50 b.p.	 
	≥ 50% and < 75%
	 	 	275 b.p.	 	 	 	175 b.p.	 	 	 	50 b.p.	 
	< 50%
	 	 	250 b.p.	 	 	 	150 b.p.	 	 	 	50 b.p.	 







     Each change in the Applicable Rate shall apply during the period commencing on
the effective date of such change and ending on the date immediately preceding the
effective date of the next change.



     1.2 Mandatory Prepayment of Loans. Clause (a) of Section 2.10 of the Credit Agreement
shall be and it hereby is amended and restated in its entirety to read as follows:




     (a) Except as otherwise provided in Section 2.10(b), in the event a Borrowing
Base Deficiency exists, the Borrower shall, within thirty (30) days (or in the case
of a Borrowing Base Deficiency arising from or related to the Special
Redetermination of the Borrowing Base by the Required Lenders on or about September
30, 2009, within fifteen (15) days) after written notice from the Administrative
Agent to the Borrower of such Borrowing Base Deficiency, notify the Administrative
Agent which of the following actions it will take to eliminate such Borrowing Base
Deficiency and within sixty (60) days (or in the case of a Borrowing Base Deficiency
arising from or related to the Special Redetermination of the Borrowing Base by the
Required Lenders on or about September 30, 2009, within thirty (30) days) after such
notice from the Administrative Agent (a) by instruments satisfactory in form and
substance to the Required Lenders, provide the Lenders with additional security
consisting of Oil and Gas Interests with value and quality satisfactory to the
Lenders in their sole discretion to eliminate such Borrowing Base Deficiency, (b)
prepay, without premium or penalty, the principal amount of the Loans in an amount
sufficient to eliminate such Borrowing Base Deficiency or (c) by a combination of
such additional security and such prepayment eliminate such Borrowing Base
Deficiency.



     1.3 Special Redeterminations. The first sentence of Section 3.03 of the Credit
Agreement shall be and it hereby is amended and restated in its entirety to read as follows:




     In addition to Scheduled Redeterminations, (a) the Borrower shall be permitted
to request a Special Redetermination of the Borrowing Base once between each
Scheduled Redetermination and (b) the Required Lenders shall be permitted to request
a Special Redetermination of the Borrowing Base once between each Scheduled
Redetermination; provided that, in addition to any




					
	 	 	 	 	 
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Special Redetermination of the
Borrowing Base pursuant to this clause (b), the Required Lenders shall make a
Special Redetermination on or about September 30, 2009.



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 Required Lenders and the Administrative
Agent shall have executed and delivered this Amendment and any other required document, all in form
and substance satisfactory to Administrative Agent.



     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 prior to the date hereof, and all such
documents shall be in form and substance reasonably satisfactory to the Administrative Agent.



SECTION 3. Representations and Warranties of the Credit Parties. To induce the Lenders to enter
into this Amendment, each Credit Party hereby represents and warrants to the Administrative Agent
and 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 or in any other Loan Document is true and correct in all material respects on the
date hereof (except to the extent such representations and warranties relate solely to an earlier
date, in which case, such representations and warranties are true and correct as of such earlier
date).



     3.2 Corporate Authority; No Conflicts. The execution, delivery and performance by such Credit
Party of this Amendment and all documents, instruments and agreements contemplated herein are
within such Credit Party’s corporate or other organizational powers, have been duly authorized by
all 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 such Credit Party or result in the creation or imposition of any Lien
upon any of the assets of such Credit Party except for Liens permitted under Section 7.02 of the
Credit Agreement.



     3.3 Enforceability. This Amendment constitutes the valid and binding obligation of such
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.




					
	 	 	 	 	 
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     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.



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 Credit Party hereby agrees 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
law of the State of Texas.



[Signature Pages Follow]




					
	 	 	 	 	 
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     IN WITNESS WHEREOF, the parties have caused this Fifth Amendment to Credit Agreement to be
duly executed as of the date first above written.



	 	 	 	 	 
	 	BORROWER:



GASCO ENERGY, INC.

 	 
	 	By:  	/s/ W. King Grant
 	 
	 	 	Name:  	W. King Grant 	 
	 	 	Title:  	Executive Vice President and Chief


Financial Officer 	 
	 



	 	 	 	 	 
	 	GUARANTORS:



GASCO PRODUCTION COMPANY

 	 
	 	By:  	/s/ W. King Grant
 	 
	 	 	Name:  	W. King Grant 	 
	 	 	Title:  	Executive Vice President and Chief

Financial Officer 	 
	 



	 	 	 	 	 
	 	RIVERBEND GAS GATHERING, LLC

 	 
	 	By: 	Gasco Energy, Inc. 
Its Managing Member
 	 



	 	 	 	 	 
	 	By:  	                     /s/ W. King Grant
 	 
	 	 	Name:  	W. King Grant 	 
	 	 	Title:  	Executive Vice President and Chief

Financial Officer 	 



	 	 	 	 	 
	 	MYTON OILFIELD RENTALS, LLC

 	 
	 	By: 	Gasco Energy, Inc.
 Its Managing Member
 	 



	 	 	 	 	 
	 	By:  	                     /s/ W. King Grant
 	 
	 	 	Name:  	W. King Grant 	 
	 	 	Title:  	Executive Vice President and Chief

Financial Officer 	 
	 



Fifth Amendment to Credit Agreement — Signature Page




 









 








	 	 	 	 	 
	 	JPMORGAN CHASE BANK, N.A.,

as a Lender and as Administrative Agent,

 	 
	 	By:  	/s/ John Runger
 	 
	 	 	Name:  	John Runger 	 
	 	 	Title:  	Managing Director 	 
	 



Fifth Amendment to Credit Agreement — Signature Page





 









 








	 	 	 	 	 
	 	GUARANTY BANK AND TRUST COMPANY

as a Lender

 	 
	 	By:  	/s/ Gail J. Nofsinger
 	 
	 	 	Name:  	Gail J. Nofsinger 	 
	 	 	Title:  	Senior Vice President 	 
	 



Fifth Amendment to Credit Agreement — Signature Page