Document:

Exhibit 10.1

Exhibit 10.1

EXECUTION VERSION

 

SECOND AMENDMENT TO

CREDIT AGREEMENT

dated as of

September 30, 2009

among

PETROQUEST ENERGY, INC.,

as Parent,

PETROQUEST ENERGY, L.L.C.,

as Borrower,

JPMORGAN CHASE BANK, N.A.,

as Administrative Agent,

and

The Lenders Party Hereto

 

CALYON NEW YORK BRANCH,

as Syndication Agent,

and

BANK OF AMERICA, N.A.,

as Documentation Agent

 

J.P. MORGAN SECURITIES INC. and CALYON NEW YORK BRANCH

Co-Lead Arrangers

 

 

 

 

SECOND AMENDMENT TO CREDIT AGREEMENT

THIS SECOND AMENDMENT TO CREDIT AGREEMENT (this “Second Amendment”) dated as of
September 30, 2009, is among PETROQUEST ENERGY, INC., a Delaware corporation, as the
Parent, PETROQUEST ENERGY, L.L.C., a Louisiana limited liability company, as the Borrower,
JPMORGAN CHASE BANK, N.A., as Administrative Agent, CALYON NEW YORK BRANCH, as
Syndication Agent, and BANK OF AMERICA, N.A., as Documentation Agent, and the Lenders
party hereto.

R E C I T A L S

A. The Parent, the Borrower, the Administrative Agent and the Lenders are parties to that
certain Credit Agreement dated as of October 2, 2008, as amended by that certain First Amendment to
Credit Agreement dated as of March 24, 2009 (as amended, the “Credit Agreement”), pursuant
to which the Lenders have made certain loans to and extensions of credit for the account of the
Borrower.

B. The Borrower has requested and the Lenders have agreed to amend certain provisions of the
Credit Agreement in order to clarify certain provisions contained therein.

C. NOW, THEREFORE, in consideration of the premises and the mutual covenants herein contained,
for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged,
the parties hereto agree as follows:

Section 1. Defined Terms. Each capitalized term used herein but not otherwise defined
herein has the meaning given such term in the Credit Agreement. Unless otherwise indicated, all
article and section references in this Second Amendment refer to articles and sections of the
Credit Agreement.

Section 2. Amendments to Credit Agreement.

2.1 Amendments to Section 1.02.

(a) The definition of “Agreement” is hereby deleted and replaced in its entirety to
read as follows:

“Agreement” means this Credit Agreement, as amended by the First
Amendment and as further amended by the Second Amendment, as the same may from time
to time be amended, modified, supplemented or restated.

(b) The definition of “Second Amendment” is hereby added where alphabetically
appropriate to read as follows:

“Second Amendment” means the Second Amendment to Credit Agreement dated
as of September 30, 2009 among the Parent, the Borrower, the Administrative Agent,
the Syndication Agent, the Documentation Agent and the Lenders party thereto.

 

 

 

2.2 Amendment to Article VIII. Article VIII is hereby amended by deleting Section
8.18 in its entirety.

2.3 Amendment to Section 9.12(d). Section 9.12(d) is hereby amended in its entirety
to read as follows:

(d) the sale or other disposition (including Casualty Events) of any Oil and Gas
Property or any interest therein or any of its Subsidiaries (other than the Borrower) owning
Oil and Gas Properties; provided that with respect to this clause (d), (1) the consideration
received in respect of such sale or other disposition (including without limitation, asset
exchanges under Section 1031 of the Code) shall be equal to or greater than the fair market
value of the Oil and Gas Property, interest therein or Subsidiary subject of such sale or
other disposition (as reasonably determined by its board of directors and, if requested by
the Administrative Agent, the Borrower shall deliver a certificate of its Responsible
Officer certifying to that effect), (2) if such sale or other disposition of Oil and Gas
Property or Subsidiary owning Oil and Gas Properties under this clause (d) (together with
any transfers or dispositions under clause (b)) included in the most recently delivered
Reserve Report during any period between two successive Scheduled Redetermination Dates has
a fair market value in excess of five percent (5%) of the Borrowing Base as then in effect
(as determined by the Administrative Agent), individually or in the aggregate, the Borrowing
Base shall be reduced, effective immediately upon such sale or disposition, by an amount
equal to the value, if any, attributed to such Property in the Borrowing Base based on the
most recently delivered Reserve Report and (3) if any such sale or other disposition is of a
Subsidiary owning Oil and Gas Properties, such sale or other disposition shall include all
the Equity Interests of such Subsidiary; and

2.4 Redetermination of Borrowing Base. For the period from and including October 1,
2009 to but excluding the next Redetermination Date, the amount of the Borrowing Base shall be
$100,000,000. Notwithstanding the foregoing, the Borrowing Base may be subject to further
adjustments from time to time pursuant to Section 8.13(c), Section 8.16 and Section 9.12(d).

Section 3. Conditions Precedent. This Second Amendment shall not become effective until
the date on which each of the following conditions is satisfied (or waived in accordance with
Section 12.02 of the Credit Agreement):

3.1 The Administrative Agent shall have received from the Required Lenders, the Borrower and
each Guarantor, counterparts (in such number as may be requested by the Administrative Agent) of
this Second Amendment signed on behalf of such Persons.

3.2 The Administrative Agent shall have received such other documents as the Administrative
Agent or special counsel to the Administrative Agent may reasonably request.

3.3 No Default or Event of Default shall have occurred and be continuing, after giving effect
to the terms of this Second Amendment.

 

2

 

The Administrative Agent is hereby authorized and directed to declare this Second Amendment to
be effective when it has received documents confirming or certifying, to the satisfaction of the
Administrative Agent, compliance with the conditions set forth in this Section 3 or the waiver of
such conditions as permitted hereby. Such declaration shall be final, conclusive and binding upon
all parties to the Credit Agreement for all purposes.

Section 4. Miscellaneous.

4.1 Confirmation. The provisions of the Credit Agreement, as amended by this Second
Amendment, shall remain in full force and effect following the effectiveness of this Second
Amendment.

4.2 Ratification and Affirmation; Representations and Warranties. Each of the
Borrower and each Guarantor hereby (a) ratifies and affirms its respective obligations under, and
acknowledges, renews and extends its respective continued liability under, each Loan Document to
which it is a party and agrees that each Loan Document to which it is a party remains in full force
and effect, except as expressly amended hereby, notwithstanding the amendments contained herein and
(b) represents and warrants to the Lenders that, as of the date hereof, after giving effect to the
terms of this Second Amendment: (i) all of the representations and warranties contained in each
Loan Document to which it is a party are true and correct, 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, (ii) no Default has occurred and is continuing and (iii) no Material Adverse Effect shall
have occurred. 

4.3 Loan Document. This Second Amendment is a “Loan Document” as defined and
described in the Credit Agreement and all of the terms and provisions of the Credit Agreement
relating to Loan Documents shall apply hereto.

4.4 Counterparts. This Second Amendment may be executed by one or more of the parties
hereto in any number of separate counterparts, and all of such counterparts taken together shall be
deemed to constitute one and the same instrument. Delivery of this Second Amendment by facsimile
transmission shall be effective as delivery of a manually executed counterpart hereof.

4.5 NO ORAL AGREEMENT. THIS SECOND AMENDMENT, THE CREDIT AGREEMENT AND THE OTHER LOAN
DOCUMENTS AND ANY SEPARATE LETTER AGREEMENTS WITH RESPECT TO FEES PAYABLE TO THE ADMINISTRATIVE
AGENT CONSTITUTE THE ENTIRE CONTRACT AMONG THE PARTIES RELATING TO THE SUBJECT MATTER HEREOF AND
THEREOF AND SUPERSEDE ANY AND ALL PREVIOUS AGREEMENTS AND UNDERSTANDINGS, ORAL OR WRITTEN, RELATING
TO THE SUBJECT MATTER HEREOF AND THEREOF. THIS SECOND AMENDMENT, THE CREDIT AGREEMENT AND THE OTHER
LOAN DOCUMENTS REPRESENT THE FINAL AGREEMENT AMONG THE PARTIES HERETO AND THERETO AND MAY NOT BE
CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR
SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE
PARTIES.

 

3

 

4.6 GOVERNING LAW. THIS SECOND AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH, THE LAWS OF THE STATE OF TEXAS. 

4.7 Payment of Expenses. The Borrower agrees to pay or reimburse the Administrative
Agent for all of its out-of-pocket costs and expenses incurred in connection with this Second
Amendment, any other documents prepared in connection herewith and the transactions contemplated
hereby, including, without limitation, the reasonable fees and disbursements of counsel to the
Administrative Agent.

4.8 Severability. Any provision of this Second Amendment which is prohibited or
unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of
such prohibition or unenforceability without invalidating the remaining provisions hereof, and any
such prohibition or unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction.

4.9 Successors and Assigns. This Second Amendment shall be binding upon and inure to
the benefit of the parties hereto and its respective successors and assigns.

[SIGNATURES BEGIN NEXT PAGE]

 

4

 

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

	 	 	 	 	 
	BORROWER:

	 	PETROQUEST ENERGY, L.L.C.	 	 
	 
	 	 	 	 
	 

	 	/s/ W. Todd Zehnder
 

W. Todd Zehnder
	 	 
	 

	 	Executive Vice President, Chief Financial Officer
and Treasurer	 	 
	 
	 	 	 	 
	PARENT:

	 	PETROQUEST ENERGY, INC.	 	 
	 
	 	 	 	 
	 

	 	/s/ W. Todd Zehnder
 

W. Todd Zehnder
	 	 
	 

	 	Executive Vice President, Chief Financial Officer
and Treasurer	 	 
	 
	 	 	 	 
	GUARANTOR:

	 	TDC ENERGY, LLC	 	 
	 
	 	 	 	 
	 

	 	/s/ W. Todd Zehnder
 

W. Todd Zehnder
	 	 
	 

	 	Executive Vice President, Chief Financial Officer
and Treasurer	 	 

[Signature Page to Second Amendment]

 

 

	 	 	 	 	 	 	 
	ADMINISTRATIVE AGENT:

	 	JPMORGAN

CHASE BANK, N.A.	 	 
	AND LENDER	 	individually, as a Lender, as Administrative Agent 

and as Issuing Bank
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Jo Linda Papadakis
 

Name: Jo Linda Papadakis
	 	 
	 

	 	 	 	Title:   Vice President	 	 

[Signature Page to Second Amendment]

 

 

	 	 	 	 	 	 	 
	SYNDICATION AGENT:	 	CALYON NEW YORK BRANCH
	AND LENDER
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Page Dillehunt
 

Name: Page Dillehunt
	 	 
	 

	 	 	 	Title:   Managing Director	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Michael Willis
 

Name: Michael Willis
	 	 
	 

	 	 	 	Title:   Managing Director	 	 

[Signature Page to Second Amendment]

 

 

	 	 	 	 	 	 	 
	DOCUMENTATION AGENT:	 	BANK OF AMERICA, N.A.
	AND LENDER
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Sandra M. Serie
 

Name: Sandra M. Serie
	 	 
	 

	 	 	 	Title:   Vice President	 	 

[Signature Page to Second Amendment]

 

 

	 	 	 	 	 	 	 
	LENDER:	 	WELLS FARGO BANK, N.A.
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Douglas L. McDowell
 

Name: Douglas L. McDowell
	 	 
	 

	 	 	 	Title:   Vice President, Senior Portfolio Manager	 	 

[Signature Page to Second Amendment]

 

 

	 	 	 	 	 	 	 
	LENDER:	 	WHITNEY NATIONAL BANK
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ William Jochetz
 

Name: William Jochetz
	 	 
	 

	 	 	 	Title:    Officer	 	 

[Signature Page to Second Amendment]exv10w1

Exhibit 10.1

PEROT SYSTEMS CORPORATION

2001 LONG-TERM INCENTIVE PLAN

(AS AMENDED AND RESTATED EFFECTIVE JANUARY 1, 2007)

PLAN AMENDMENT

     The Perot Systems Corporation 2001 Long-Term Incentive Plan, as amended and restated effective
January 1, 2007 (the “Plan”), is hereby further amended, effective as of September 20, 2009, as
follows:

     1. Section 2(ll) of the Plan is hereby amended in its entirety to read as follows:

(ll) “Total Disability” means a mental or physical condition that results in an
Employee’s continued entitlement to long term disability benefits under the U.S.
Social Security Act, provided that such mental or physical condition is not the
result of any condition or circumstance that the Administrator, in its sole
discretion, determines to have resulted from the Awardee’s illegal or reckless use
of alcohol, drugs or other chemical substances, or from actions taken by the Awardee
with the intention of causing self-injury or with reckless disregard for personal
health and safety.

     2. Section 11(c) of the Plan is hereby amended by deleting the first sentence of said Section
in its entirety an substituting in lieu thereof the following:

Unless otherwise provided for by the Administrator in the Award Agreement, if an
Awardee ceases to be an Employee as a result of the Awardee’s Total Disability, (i)
the Awardee’s Stock Award shall immediately vest with respect to all Shares covered
by such Stock Award, and (ii) to the extent that the Awardee purchased the
Restricted Stock, the Company shall have a right to repurchase the unvested
Restricted Stock at the lesser of (A) the Fair Market Value or (B) the original
price paid by the Awardee, on or after the Awardee’s Severance Date.

     3. Section 11(d) of the Plan is hereby amended by deleting the first sentence of said Section
in its entirety an substituting in lieu thereof the following:

Unless otherwise provided for by the Administrator in the Award Agreement, if an
Awardee ceases to be an Employee as a result of his or her death, the Awardee’s
Stock Award shall immediately vest with respect to all Shares covered by such Stock
Award.

     4. This Plan Amendment is intended to benefit the holders of outstanding Awards and shall not
be deemed to impair the rights of the holder under any such Award. Except as modified by this Plan
Amendment, all the terms and provisions of the Plan, as previously amended and restated, shall
continue in full force and effect.

[THE REMAINDER OF THIS PAGE WAS INTENTIONALLY LEFT BLANK]

 

 

     IN WITNESS WHEREOF, Perot Systems Corporation has caused this Plan Amendment to be executed on
its behalf by its duly-authorized officer on this 30th day of September, 2009.

	 	 	 	 	 
	 	PEROT SYSTEMS CORPORATION

 	 
	 	By:  	/s/ John E. Harper
 	 
	 	Title: 	  Vice President and Chief Financial Officer

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