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Exhibit 10.10    
    

 
 

FIRST AMENDMENT TO THIRD
  AMENDED AND RESTATED CREDIT AGREEMENT    
    

        THIS FIRST AMENDMENT TO THIRD AMENDED AND RESTATED CREDIT AGREEMENT (hereinafter referred to as the "Amendment")
executed as of the 31st day of March, 2004, by and among ADDISON ENERGY INC., an Alberta, Canada corporation (the "Borrower"), BANK ONE, NA,
CANADA BRANCH, a national banking association ("Bank One"), each of the financial institutions which is a party hereto (as evidenced by the signature
pages to this Amendment) or which may from time to time become a party hereto pursuant to the provisions of Section 28 of the Third Amended and Restated Credit Agreement or any successor or
assignee thereof (hereinafter collectively referred to as "Lenders", and individually, "Lender"), Bank
One, as Administrative Agent ("Agent"), BNP PARIBAS (CANADA), as Syndication Agent, THE BANK OF NOVA SCOTIA, as Co-Documentation Agent and
THE TORONTO-DOMINION BANK, as Co-Documentation Agent. Capitalized terms used but not defined in this Amendment have the meanings assigned to such terms in that certain Third Amended and
Restated Credit Agreement dated as of January 27, 2004, by and among the Borrower, Agent and the Lenders (as amended, supplemented or otherwise modified from time to time, the
"Credit Agreement"). 

 
 

WITNESSETH:    
    

        WHEREAS, the Borrower has requested that the Agent and the Lenders amend the Credit Agreement to permit the U.S.
Borrowers to enter into additional Rate Management Transactions that, together with the Rate Management Transactions described on Schedule 9 to the Credit Agreement, as in effect on the date
hereof, are designed to hedge, provide a price floor for, or swap up to 47,200,000 mmbtu of crude oil and/or natural gas with a term expiring no later than December 31, 2013; and Agent and the
Lenders have agreed to do so on the terms and conditions hereinafter set forth. 

        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, Agent and the Lenders, hereby agree as follows: 

SECTION 1. Amendment to Credit Agreement.    Subject to the satisfaction or waiver in writing of each condition precedent set forth in  Section 3 hereof, 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. 

        1.1   Additional Definitions. The following definition shall be and it hereby is added in alphabetical order to  Section 1 of the Credit Agreement: 

        First Amendment Effective Date means March 31, 2004.

        1.2   Amended Definitions. The following definitions in Section 1 of the
Credit Agreement shall be and they hereby are amended in their entirety as follows: 

        North Coast Counterparty means, with respect to each North Coast Hedge, (i) each of the Persons identified as a counterparty
to a North Coast Hedge on the attached Schedule 9 and (ii) from and after the First Amendment Effective Date, any Approved Counterparty that is a Lender (for purposes of this definition,
as defined in the preamble to the U.S. Credit Agreement) or an Affiliate of any Lender on the date any U.S. Borrower enters into such North Coast Hedge with such Approved Counterparty regardless of
whether such Approved Counterparty or its Affiliate ceases to be a Lender thereafter. For the avoidance of doubt, no counterparty to any particular Rate Management Transaction of any U.S. Borrower
shall be a "North Coast Counterparty" unless such counterparty is a Lender or an Affiliate of a Lender at the time such U.S. Borrower or U.S. Borrowers and such counterparty enter into such Rate
Management Transaction.

        North Coast Hedge means (i) the Rate Management Transactions entered into by the U.S. Borrowers with a North Coast
Counterparty described on the attached Schedule 9 and (ii) from and after the First  

 

 Amendment Effective Date, all other Rate Management Transactions entered into by any U.S. Borrower with a North Coast Counterparty, that, together with all other such Rate Management Transactions then
in effect (including the Rate Management Transactions described in clause (i) above), is designed to hedge, provide a price floor for, or swap crude oil or natural gas or otherwise sell not
more than 47,200,000 mmbtu of the aggregate anticipated production from proved, developed producing reserves of crude oil and/or natural gas of North Coast; provided that such (x) Rate
Management Transaction has a term expiring no later than December 31, 2013 and (y) with respect to any such Rate Management Transaction entered into after the First Amendment Effective
Date, the U.S. Borrowers include such Rate Management Transaction on the list required under Section 12(a)(vi) hereof for the first fiscal quarter ending after any
U.S. Borrower enters into such Rate Management Transaction and thereafter. Any Rate Management Transaction included on the list required under Section 12(a)(vi)
shall be a "North Coast Hedge" and, unless otherwise terminated in accordance with its terms, shall remain on such list unless otherwise removed by the U.S. Borrowers with the prior written consent of
the Agent, Required Lenders and the Lender or Lender Affiliate counterparty to such Rate Management Transaction.

        1.3   Amended Affirmative Covenant. Section 12(a) of the Credit Agreement shall be and it hereby
is amended by deleting the "and" at the end of clause (iv), deleting the period at the end of clause (v), inserting "; and" at the end of clause (v), and inserting the following
clause at the end of such Section as Section 12(a)(vi): 

        (vi)  As
soon as available, and in any event within forty-five (45) days after the end of each fiscal quarter of each year, a list of all North Coast
Hedges then in effect and not otherwise described on Schedule "9" attached hereto. 

SECTION 2. Reaffirmation of Representations and Warranties.    Except to the extent its provisions are specifically amended, modified or
superseded by this Amendment, the representations, warranties and affirmative and negative covenants of the Borrower contained in the Credit Agreement are incorporated herein by reference for all
purposes as if copied herein in full. The Borrower hereby restates and reaffirms each and every term and provision of the Credit Agreement, as amended, including, without limitation, all
representations, warranties and affirmative and negative covenants. Except to the extent its provisions are specifically amended, modified or superseded by this Amendment, the Credit Agreement, as
amended, and all terms and provisions thereof shall remain in full force and effect, and the same in all respects are confirmed and approved by the Borrower, the Agent and the Lenders. 

SECTION 3. Conditions.    The amendment 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 3. 

        3.1   Execution and Delivery. The Borrower shall have executed and delivered this Amendment, and other required documents, all
in form and substance satisfactory to the Agent. 

        3.2   Amendment of Other Agreements. The Agent shall have received a fully-executed copy of the amendment to the U.S. Credit
Agreement in the form attached hereto as Exhibit "A". 

        3.3   Representations and Warranties. The representations and warranties of the Borrower under this Amendment are true and
correct in all material respects as of such date, as if then made (except to the extent that such representations and warranties related solely to an earlier date). 

        3.4   No Event of Default. No Event of Default shall have occurred and be continuing nor shall any event have occurred or
failed to occur which, with the passage of time or service of notice, or both, would constitute an Event of Default. 

        3.5   Other Documents. The Agent shall have received such other instruments and documents incidental and appropriate to the
transaction provided for herein as the Agent or its counsel may reasonably request, and all such documents shall be in form and substance satisfactory to the Agent. 

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        3.6   Legal Matters Satisfactory. All legal matters incident to the consummation of the transactions contemplated hereby shall
be reasonably satisfactory to special counsel for the Agent retained at the expense of the Borrower. 

SECTION 4. Miscellaneous.  

        4.1   Additional Representations and Warranties. The Borrower hereby represents and warrants that all factual information, if
any, heretofore and contemporaneously furnished by or on behalf of the Borrower to Agent for purposes of or in connection with this Amendment does not contain any untrue statement of a material fact
or omit to state any material fact necessary to keep the statements contained herein or therein from being misleading. Each of the foregoing representations and warranties shall constitute a
representation and warranty of the Borrower made under the Credit Agreement, and it shall be an Event of Default if any such representation and warranty shall prove to have been incorrect or false in
any material respect at the time given. Each of the representations and warranties made under the Credit Agreement (including those made herein) shall survive and not be waived by the execution and
delivery of this Amendment or any investigation by Agent or the Lenders. 

        4.2   Indemnification. The Borrower agrees to indemnify and hold harmless Agent and the Lenders and their respective officers,
employees, agents, attorneys and representatives (singularly, an "Indemnified Party", and collectively, the "Indemnified Parties") from and against any loss, cost, liability, damage or expense
(including the reasonable fees and out-of-pocket expenses of counsel to Agent or the Lenders, including all local counsel hired by such counsel)
("Claim") incurred by Agent or the Lenders in investigating or preparing for, defending against, or providing evidence, producing documents or taking
any other action in respect of any commenced or threatened litigation, administrative proceeding or investigation under any federal securities law, federal or state environmental law, or any other
statute of any jurisdiction, or any regulation, or at common law or otherwise, which is alleged to arise out of or is based upon any acts, practices or omissions or alleged acts, practices or
omissions of the Borrower or its agents or arises in connection with the duties, obligations or performance of the Indemnified Parties in negotiating, preparing, executing, accepting, keeping,
completing, countersigning, issuing, selling, delivering, releasing, assigning, handling, certifying, processing or receiving or taking any other action with respect to the Loan Documents and all
documents, items and materials contemplated thereby even if any of the foregoing arises out of an Indemnified Party's ordinary negligence. The indemnity set forth herein shall be in addition to any
other obligations or liabilities of the Borrower to the Lenders hereunder or at common law or otherwise, and shall survive any termination of this Amendment, the expiration of the Loan and the payment
of all indebtedness of the Borrower to the Lenders hereunder and under the Notes, provided that the Borrower shall have no obligation under this section to the Lenders with respect to any of the
foregoing arising out of the gross negligence or willful misconduct of the Lenders. If any Claim is asserted against any Indemnified Party, the Indemnified Party shall endeavor to notify the Borrower
of such Claim (but failure to do so shall not affect the indemnification herein made except to the extent of the actual harm caused by such failure). The Indemnified Party shall have the right to
employ, at the Borrower's expense, counsel of the Indemnified Parties' choosing and to control the defense of the Claim. The Borrower may at its own expense also participate in the defense of any
Claim. Each Indemnified Party may employ separate counsel in connection with any Claim to the extent such Indemnified Party believes it reasonably prudent to protect such Indemnified Party.  The parties intend for the
provisions of this Section to apply to and protect each Indemnified Party from the consequences of strict liability imposed or threatened to be
imposed on any Indemnified Party as well as from the consequences of its own negligence, whether or not that negligence is the sole, contributing, or concurring cause of any Claim, but not from any
portion of such Claim arising from the gross negligence or willful misconduct of any Indemnified Party.

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        4.3   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. However, this Amendment shall bind no party
until the Borrower, Agent and Lenders have executed a counterpart. Facsimiles shall be effective as originals. 

        4.4   WRITTEN CREDIT AGREEMENT. THE CREDIT AGREEMENT, AS AMENDED, REPRESENTS THE FINAL AGREEMENT BETWEEN AND 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 BETWEEN AND AMONG THE PARTIES. 

        4.5   No Impairment. The Borrower acknowledges and agrees that the renewal, extension and amendment of the Credit Agreement
shall not be considered a novation of account or new contract but that all existing rights, titles, powers, and estates in favor of Agent and the Lenders constitute valid and existing obligations in
favor of Agent and the Lenders. The Borrower confirms and agrees that (a) neither the execution of this Amendment nor any other Loan Document nor the consummation of the transactions described
herein and therein shall in any way effect, impair or limit the covenants, liabilities, obligations and duties of the Borrower under the Loan Documents and (b) the obligations evidenced and
secured by the Loan Documents continue in full force and effect. 

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        IN WITNESS WHEREOF, the parties have caused this First Amendment to Third Amended and Restated Credit Agreement to be duly executed as of
the date first above written. 

	 	 	BORROWER:
	

 	
 	

ADDISON ENERGY INC.
	
 	
 	

By: /s/  J. DOUGLAS RAMSEY      
 Name: J. Douglas Ramsey

Title: Vice President and Chief Financial Officer

	 	 	LENDERS:
	

 	
 	

BANK ONE, NA, CANADA BRANCH

as a Lender and as Administrative Agent
	

 	
 	

By: /s/  THOMAS E. BOTH      
 Name: Thomas E. Both

Title: Director, Capital Markets

	 	 	BNP PARIBAS (CANADA)

as a Lender and as Syndication Agent
	

 	
 	

By: /s/  EDWARD PAK      
 Edward Pak

Name: Edward Pak

Title: Assistant Vice President
	

 	
 	

By: /s/  MICHAEL GOSSELIN      
 Name: Michael Gosselin

Title: Managing Director

	 	 	COMERICA BANK, CANADA BRANCH

as a Lender
	

 	
 	

By: /s/  ROBERT C. ROSEN      
 Name: Robert C. Rosen

Title: Vice President

	 	 	THE BANK OF NOVA SCOTIA

as a Lender and as a Co-Documentation Agent
	

 	
 	

By:
Name:
Title:

	 	 	JPMORGAN CHASE BANK, TORONTO BRANCH

as a Lender
	

 	
 	

By: /s/  DREW MCDONALD      
 Name: Drew McDonald

Title: Vice President

	 	 	THE TORONTO-DOMINION BANK

as a Lender and as a Co-Documentation Agent
	

 	
 	

By: /s/  DEBBI BRITO      
 Name: Debbi Brito

Title: Assistant Manager Corporate Accounts

	 	 	UNION BANK OF CALIFORNIA

CANADA BRANCH

as a Lender
	

 	
 	

By: /s/  DUSTIN GASPARI      
 Name: Dustin Gaspari

Title: Vice President
	

 	
 	

By: /s/  JAMES CHEPYHA      
 Name: James Chepyha

Title: Vice President

	 	 	CREDIT SUISSE FIRST BOSTON TORONTO BRANCH

as a Lender
	

 	
 	

By:
Name:
Title:

	

 	
 	

By:
Name:
Title:

	 	 	BANK OF AMERICA N.A.,

CANADA BRANCH

by its Canada branch as a Lender
	

 	
 	

By:
Name:
Title:

EXHIBIT A

FIRST AMENDMENT TO U.S. CREDIT AGREEMENT 

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Exhibit 10.10

FIRST AMENDMENT TO THIRD AMENDED AND RESTATED CREDIT AGREEMENT

WITNESSETHQuickLinks
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Exhibit 10.11    
    

 
 

SECOND AMENDMENT TO THIRD
  AMENDED AND RESTATED CREDIT AGREEMENT
  AND
  CONSENT TO ISSUANCE OF ADDITIONAL SENIOR NOTES    
    

        THIS SECOND AMENDMENT TO THIRD AMENDED AND RESTATED CREDIT AGREEMENT AND CONSENT TO ISSUANCE OF ADDITIONAL SENIOR NOTES (hereinafter referred to as this
"Second Amendment") executed as of the 31st day of March, 2004, by and among ADDISON ENERGY INC., an Alberta, Canada corporation
(the "Borrower"), BANK ONE, NA, CANADA BRANCH, a national banking association ("Bank One"), each of the
financial institutions which is a party hereto (as evidenced by the signature pages to this Second Amendment) or which may from time to time become a party hereto pursuant to the provisions of  Section 28 of the Credit Agreement (hereinafter defined) or any successor or assignee thereof (hereinafter collectively referred to as
"Lenders", and individually, "Lender"), Bank One, as Administrative Agent
("Agent"), BNP PARIBAS (CANADA), as Syndication Agent, THE BANK OF NOVA SCOTIA, as Co-Documentation Agent and THE TORONTO-DOMINION BANK, as
Co-Documentation Agent. 

WITNESSETH:  

        WHEREAS, the Borrower, the Agent and the Lenders are parties to that certain Third Amended and Restated Credit
Agreement dated as of January 27, 2004, as amended by that certain First Amendment to Third Amended and Restated Credit Agreement dated as of March 31, 2004 (as so amended, and as the
same may be hereafter amended, supplemented or otherwise modified from time to time, the "Credit Agreement"). 

        WHEREAS, the Borrower has requested that the Agent and the Lenders (a) consent to the issuance by the Company of an additional
$100,000,000 in aggregate principal amount of its 71/4% Senior Notes Due
2011 (the "New Notes") under, and pursuant to the provisions of Section 2.13 of, the Indenture,
and (b) in connection therewith, amend the Credit Agreement to permit the Company to issue the New Notes under, and pursuant to the provisions of  Section 2.13 of, the Indenture, and the Agent
and the Lenders have agreed to do so upon and subject to the terms and conditions hereinafter set
forth. 

        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, Agent and the Lenders, hereby agree as follows: 

SECTION 1. Definitions and Defined Terms.

         1.1   Each capitalized term used but not defined in this Second Amendment have the meanings assigned to such term in the Credit Agreement.

        1.2   As used in this Second Amendment, the following terms shall have the respective meanings set forth, or to which reference is made, below:

        1.2.1    Additional Securities has the meaning ascribed to such term in the Indenture. 

        1.2.2    Consolidated Coverage Ratio has the meaning ascribed to such term in the Indenture. 

        1.2.3    Incur has the meaning ascribed to such term in the Indenture. 

        1.2.4    Incurrence has the meaning ascribed to such term in the Indenture. 

        1.2.5    Indebtedness has the meaning ascribed to such term in the Indenture. 

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        1.2.6    Net Cash Proceeds has the meaning ascribed to such term in the Indenture. 

        1.2.7    Officers' Certificate has the meaning ascribed to such term in the Indenture. 

        1.2.8    Opinion of Counsel has the meaning ascribed to such term in the Indenture. 

        1.2.9    U.S. Credit Agreement Amendment and Consent means an agreement in form and substance comparable
to this Agreement (a) effecting an amendment to Section 13(g)(viii) of the U.S. Credit Agreement identical to the amendment  Section 13(g)(ix) of the Credit Agreement effected by Section 2.1 of this Amendment, and
(b) evidencing a consent of the requisite lenders under the Canadian Credit Agreement identical to the consent set forth in Section 3 of
this Amendment. 

SECTION 2. Amendment to Credit Agreement.    Subject to the satisfaction or waiver in writing of each condition precedent set forth in  Section 6 hereof, and in reliance on the representations, warranties, covenants and agreements contained in this Second Amendment, the Credit
Agreement shall be amended in the manner provided in this Section 2. 

        2.1   Amendment to Negative Covenant. Section 13(g)(ix) of the Credit Agreement shall be and it hereby is
amended in its
entirety to read as follows: 

        (ix)    the Senior Notes, provided the aggregate principal amount of such indebtedness does not exceed $450,000,000; or

SECTION 3. Consent to Issuance of New Notes.    Subject to the satisfaction or waiver in writing of each condition precedent set forth in  Section 6 hereof, and in reliance on the representations, warranties, covenants and agreements contained in this Second Amendment, the Agent and
the Lenders hereby consent to (a) the issuance by the Company of the New Notes under, and pursuant to the provisions of Section 2.13 of,
the Indenture, (b) the amendment, modification or supplement to the Senior Note Documents for the sole purpose of reflecting the issuance of the New Notes if, after giving effect to each such
amendment, modification or supplement (i) the maximum principal amount of the Senior Notes outstanding under the Indenture shall not be increased to an amount in excess of $450,000,000,
(ii) except as provided in clause (i) preceding, the Borrower is in compliance with the provisions of Section
13(r) of the Credit Agreement, (iii) the New Notes constitute Additional Securities permitted to be issued and be outstanding under the Indenture, and (iv) the
New Notes constitute "Notes," as that term is defined in the Senior Notes Intercreditor Agreement. 

SECTION 4. Reaffirmation of Representations and Warranties.    Except to the extent its provisions are specifically amended, modified or
superseded by this Second Amendment, the representations, warranties and affirmative and negative covenants of the Borrower contained in the Credit Agreement are incorporated herein by reference for
all purposes as if copied herein in full. The Borrower hereby restates and reaffirms each and every term and provision of the Credit Agreement, as amended,
including, without limitation, all representations, warranties and affirmative and negative covenants. Except to the extent its provisions are specifically amended, modified or superseded by this
Second Amendment, the Credit Agreement, as amended, and all terms and provisions thereof shall remain in full force and effect, and the same in all respects are confirmed and approved by the Borrower,
the Agent and the Lenders. 

SECTION 5. Additional Representations and Warranties.    In order to induce the Agent and the Lenders to enter into this Second Amendment, the
Borrower represents and warrants to the Agent and to each of the Lenders that: 

        5.1   Factual Information. All factual information heretofore or contemporaneously furnished by or on behalf of the Borrower to Agent for
purposes of
or in connection with this Second Amendment does not contain any untrue statement of a material fact or omit to state any material fact necessary to keep the statements contained herein or therein
from being misleading. 

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        5.2   Conforming Additional Securities. The New Notes constitute and conform to the requirements of Additional Securities for all purposes under
the
Indenture. 

         5.3   Consolidated Coverage Ratio. On the date hereof, and after giving effect to the issuance of the New Notes on a pro
forma basis, the Consolidated Coverage Ratio exceeds 2.5 to 1. 

Each
of the foregoing representations and warranties shall constitute a representation and warranty of the Borrower made under the Credit Agreement, and it shall be an Event of Default if any such
representation and warranty shall prove to have been incorrect or false in any material respect at the time given. Each of the representations and warranties made under the Credit Agreement (including
those made herein) shall survive and not be waived by the execution and delivery of this Second Amendment or any investigation by the Agent or the Lenders. 

SECTION 6. Conditions.    The amendment to the Credit Agreement contained in Section 2
of this Second Amendment and the consents contained in Section 3 of this Second Amendment shall be effective upon the satisfaction of each of the
conditions set forth in this Section 6. 

        6.1   Execution and Delivery by Borrower. The Borrower shall have executed and delivered this Second Amendment, and other required documents,
all in
form and substance satisfactory to the Agent. 

         6.2   Execution and Delivery by Majority Lenders. This Second Amendment shall have been executed by Majority Lenders, and the Agent shall have
received
counterparts, in form and substance satisfactory to the Agent, evidencing such execution by Majority Lenders. 

        6.3   Amendment of U.S. Credit Agreement. The Agent shall have received a fully-executed copy of the U.S. Credit Agreement Amendment and
Consent. 

         6.4   Representations and Warranties. The representations and warranties of the Borrower under this Second Amendment are true and correct in
all
material respects as of the date of issuance of the New Notes, as if then made (except to the extent that such representations and warranties related solely to an earlier date). 

        6.5   No Event of Default. On the date of issuance of the New Notes, both before such issuance is effected and after giving effect to such
issuance, no
Event of Default shall have occurred and be continuing nor shall any event have occurred or failed to occur which, with the passage of time or service of notice, or both, would constitute an Event of
Default. 

         6.6   Consummation of New Notes Issuance The Trustee shall have authenticated the New Notes in accordance with the provisions of the Indenture,
and the
Company shall have consummated the issuance of the New Notes and have received gross proceeds of at least $100,000,000 from the issuance of the New Notes; 

        6.7   Reduction of Credit Agreement Indebtedness. The Borrower shall have provided Agent with evidence reasonably acceptable to Agent that the
principal amount of the indebtedness outstanding under the Credit Agreement on the date of issuance of the Senior Notes has been, or contemporaneously with the issuance of the Senior Notes will be
reduced by payment from the Net Cash Proceeds derived from the issuance of the Senior Notes in the amount equal to the lesser of (a) the full amount of the Net Cash Proceeds derived from the
issuance of the Senior Notes and (b) the amount by which the principal amount of the indebtedness outstanding under the Credit Agreement on the date of issuance of the Senior Notes exceeds
C$1,000.00. 

        6.8   Senior Loan Documents. The Borrower shall have provided to the Agent copies of (a) any prospectus, offering memorandum or similar
document
(and all amendments and supplements thereto) furnished by the Company prior to the issuance of the New Notes to prospective purchasers of the New Notes, and (b) all documents executed by the
Company and delivered to the Trustee in connection 

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with
the issuance of the New Notes, including, without limitation, each document effecting an amendment, modification or supplement to any Senior Note Document. 

         6.9   Officers' Certificates. The Borrower shall have provided to the Agent (a) a copy of the Officers' Certificate delivered to the
Trustee by
the Company pursuant to Section 2.13 of the Indenture, certified as being true, correct and complete by the Persons who executed such Officers'
Certificate and accompanied by a written authorization from the Persons who executed such Officers' Certificate stating that Agent and the Lenders may rely on such Officers' Certificate as though it
were addressed to them, and (b) a copy of each other Officers' Certificate, if any, delivered to the Trustee by the Company pursuant to  Section 14.04(1) of the Indenture in connection with the
authentication and issuance of the New Notes, in each case certified as being true,
correct and complete by the Persons who executed such Officers' Certificate and accompanied by a written authorization from the Person who executed such Officers' Certificate stating that Agent and
the Lenders may rely on such Officers' Certificate as though it were addressed to them. 

         6.10 Opinions of Counsel. The Borrower shall have provided to the Agent (a) a copy of the Opinion of Counsel delivered to the Trustee by the
Company pursuant to Section 2.13 of the Indenture, accompanied by a written authorization from the Person who executed such Opinion of Counsel
stating that Agent and the Lenders may rely on such Opinion of Counsel as though it were addressed to them, and (b) a copy of each other Opinion of Counsel, if any, delivered to the Trustee by
the Company pursuant to Section 14.04(2) of the Indenture in connection with the authentication and issuance of the New Notes, in each case
accompanied by a written authorization from the Person who executed such Opinion of Counsel stating that Agent and the Lenders may rely on such Opinion of Counsel as though it were addressed to them. 

        6.11 Confirmation of Trustee. The Agent shall have received a written confirmation of the Trustee, addressed to the Credit Agent (as that term is
defined in the Senior Notes Intercreditor Agreement), confirming that the New Notes are included in the "Notes," as that term is defined in the Senior Notes Intercreditor Agreement. 

         6.12 Other Documents. The Agent shall have received such other instruments and documents incidental and appropriate to the transaction provided for
herein as the Agent or its counsel may reasonably request, and all such documents shall be in form and substance satisfactory to the Agent. 

        6.13 Legal Matters Satisfactory. All legal matters incident to the consummation of the transactions contemplated hereby shall be reasonably
satisfactory to special counsel for the Agent retained at the expense of the Borrower. 

SECTION 7. Miscellaneous.

         7.1   Indemnification. The Borrower agrees to indemnify and hold harmless Agent and the Lenders and their respective officers, employees,
agents,
attorneys and representatives (singularly, an "Indemnified Party", and collectively, the "Indemnified Parties") from and against any loss, cost, liability, damage or expense (including the reasonable
fees and out-of-pocket expenses of counsel to Agent or the Lenders, including all local counsel hired by such counsel) ("Claim")
incurred by Agent or the Lenders in investigating or preparing for, defending against, or providing evidence, producing documents or taking any other action in respect of any commenced or threatened
litigation, administrative proceeding or investigation under any federal securities law, federal or state environmental law, or any other statute of any jurisdiction, or any regulation, or at common
law or otherwise, which is alleged to arise out of or is based upon any acts, practices or omissions or alleged acts, practices or omissions of the Borrower or its agents or arises in connection with
the duties, obligations or performance of the Indemnified Parties in negotiating, preparing, executing, accepting, keeping, completing, countersigning, issuing, selling, delivering, releasing,
assigning, handling, certifying, processing or receiving or taking any other action with respect to the Loan Documents and all 

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documents,
items and materials contemplated thereby even if any of the foregoing arises out of an Indemnified Party's ordinary negligence. The indemnity set forth herein shall be in addition to any
other obligations or liabilities of the Borrower to the Lenders hereunder or at common law or otherwise, and shall survive any termination of this Second Amendment, the expiration of the Loan and the
payment of all indebtedness of the Borrower to the Lenders hereunder and under the Notes, provided that the Borrower shall have no obligation under this  Section 7.1 to the Lenders with respect to
any of the foregoing arising out of the gross negligence or willful misconduct of the Lenders. If any
Claim is asserted against any Indemnified Party, the Indemnified Party shall endeavor to notify the Borrower of such Claim (but failure to do so shall not affect the indemnification herein made except
to the extent of the actual harm caused by such failure). The Indemnified Party shall have the right to employ, at the Borrower's expense, counsel of the Indemnified Parties' choosing and to control
the defense of the Claim. The Borrower may at its own expense also participate in the defense of any Claim. Each Indemnified Party may employ separate counsel in connection with any Claim to the
extent such Indemnified Party believes it reasonably prudent to protect such Indemnified Party. The parties intend for the provisions of this  Section 7.1 to
apply to and protect each Indemnified Party from the consequences of strict liability imposed or threatened to be imposed on any
Indemnified Party as well as from the consequences of its own negligence, whether or not that negligence is the sole, contributing, or concurring cause of any Claim, but not from any portion of such
Claim arising from the gross negligence or willful misconduct of any Indemnified Party.

         7.2   Counterparts. This Second 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. However, this Second Amendment shall bind no party until the
Borrower, the Agent and Majority Lenders have executed a counterpart. Facsimiles shall be effective as originals. 

         7.3   WRITTEN CREDIT AGREEMENT. THE CREDIT AGREEMENT, AS AMENDED, AND THE OTHER LOAN DOCUMENTS REPRESENT THE FINAL AGREEMENT BETWEEN AND 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 BETWEEN AND AMONG THE PARTIES. 

         7.4   No Impairment. The Borrower confirms and agrees that (a) neither the execution of this Second Amendment nor any other Loan Document
nor
the consummation of the transactions described herein and therein shall in any way effect, impair or limit the covenants, liabilities, obligations and duties of the Borrower under the Loan Documents
and (b) the obligations evidenced and secured by the Loan Documents continue in full force and effect. 

5

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

	 	 	BORROWER:
	

 	
 	
ADDISON ENERGY INC.
	

 	
 	

By:	

/s/  J. DOUGLAS RAMSEY      

	 	 	Name:	J. Douglas Ramsey
	 	 	Title:	Vice President and Chief Financial Officer

	 	 	LENDERS:
	

 	
 	
BANK ONE, NA, CANADA BRANCH

as a Lender and as Administrative Agent
	

 	
 	

By:	

/s/  WM. MARK CRANMER      

	 	 	Name:	Wm. Mark Cranmer

	 	 	Title:	Director—Banc One Capital Markets

	 	 	BNP PARIBAS (CANADA)

as a Lender and as Syndication Agent
	

 	
 	

By:	

/s/  EDWARD PAK      

	 	 	Name:	Edward Pak

	 	 	Title:	Assistant Vice President

	

 	
 	

By:	

/s/  MICHAEL GOSSELIN      

	 	 	Name:	Michael Gosselin

	 	 	Title:	Managing Director

	 	 	COMERICA BANK, CANADA BRANCH

as a Lender
	

 	
 	

By:	

/s/  ROBERT C. ROSEN      

	 	 	Name:	Robert C. Rosen

	 	 	Title:	Vice President

	 	 	THE BANK OF NOVA SCOTIA

as a Lender and as a Co-Documentation Agent
	

 	
 	

By:	

/s/  BRIAN WILLIAMSON      

	 	 	Name:	Brian Williamson
	 	 	Title:	Director

	 	 	JPMORGAN CHASE BANK,

TORONTO BRANCH

as a Lender
	

 	
 	

By:	

/s/  DREW MCDONALD      

	 	 	Name:	Drew McDonald

	 	 	Title:	Vice President

	 	 	THE TORONTO-DOMINION BANK

as a Lender and as a Co-Documentation Agent
	

 	
 	

By:	

/s/  DARIN KANJI      

	 	 	Name:	Darin Kanji

	 	 	Title:	Corporate Credit Admin. Assistant Manager

	 	 	UNION BANK OF CALIFORNIA

CANADA BRANCH

as a Lender
	

 	
 	

By:	

/s/  DUSTIN GASPARI      

	 	 	Name:	Dustin Gaspari

	 	 	Title:	Vice President

	

 	
 	

By:	

/s/  JAMES CHEPYHA      

	 	 	Name:	James Chepyha

	 	 	Title:	Vice President

	 	 	CREDIT SUISSE FIRST BOSTON

TORONTO BRANCH

as a Lender
	

 	
 	

By:	

/s/  ALAIN DAOUST      

	 	 	Name:	Alain Daoust

	 	 	Title:	Director

	

 	
 	

By:	

/s/  PETER CHAUVIN      

	 	 	Name:	Peter Chauvin

	 	 	Title:	Vice President

	 	 	BANK OF AMERICA N.A.,

CANADA BRANCH

by its Canada branch

as a Lender
	

 	
 	

By:	

/s/  MEDINA SALES DE ANDRADE      

	 	 	Name:	Medina Sales de Andrade

	 	 	Title:	Assistant Vice President

QuickLinks

Exhibit 10.11

SECOND AMENDMENT TO THIRD AMENDED AND RESTATED CREDIT AGREEMENT AND CONSENT TO ISSUANCE OF ADDITIONAL SENIOR NOTES

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