Document:

nfx10q-09302011ex102.htm

Exhibit 10.2

 

EXECUTION VERSION

 

 

 

 

 

FIRST AMENDMENT

 

TO

 

CREDIT AGREEMENT

 

Dated as of September 27, 2011

 

AMONG

 

NEWFIELD EXPLORATION COMPANY,

 

AS BORROWER,

 

JPMORGAN CHASE BANK, N.A.,

 

AS ADMINISTRATIVE AGENT,

 

AND

 

THE LENDERS PARTY HERETO

 

 

  

  

 

  

FIRST AMENDMENT TO CREDIT AGREEMENT

 

THIS FIRST AMENDMENT TO CREDIT AGREEMENT (this “First Amendment”) dated as of September 27, 2011, among NEWFIELD EXPLORATION COMPANY, a Delaware corporation, (the “Borrower”); each of the lenders party to the Credit Agreement referred to below (collectively, the “Lenders”); and JPMORGAN CHASE BANK, N.A., as administrative agent for the Lenders (in such capacity, together with its successors in such capacity, the “Administrative Agent”).

 

R E C I T A L S

 

A.           The Borrower, the Administrative Agent and the Lenders are parties to that certain Credit Agreement dated as of June 2, 2011 (the “Credit Agreement”), pursuant to which the Lenders have made certain credit available to and on behalf of the Borrower.

 

B.           The Borrower, the Administrative Agent and the Required Lenders desire to amend certain provisions of the Credit Agreement.

 

C.           NOW, THEREFORE, to induce the Administrative Agent and the Required Lenders to enter into this First Amendment and 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, as amended by this First Amendment. Unless otherwise indicated, all section references in this First Amendment refer to sections of the Credit Agreement.

 

Section 2.   Amendments to Credit Agreement.

 

 

2.1   Amendment to Section 1.01.  Section 1.01 is hereby amended by amending the definition of “Agreement” to read:

 

“‘Agreement’ means this Credit Agreement, as amended by that certain First Amendment dated as of September 27, 2011, as the same may from time to time be amended, modified, supplemented or restated.”

 

2.2   Amendment to Section 6.05.  Clause (i) of Section 6.05 is hereby amended to read:

 

(i) the foregoing shall not apply to restrictions and conditions imposed by law or by this Agreement or restrictions or conditions imposed by any indenture, instrument or agreement governing senior Indebtedness of the Borrower requiring such Indebtedness to be secured equally and ratably with other senior Indebtedness of the Borrower,

 

Section 3.   Conditions Precedent.  This First Amendment shall become effective on the date (such date, the “First Amendment Effective Date”), when each of the following conditions is satisfied (or waived in accordance with Section 9.02 of the Credit Agreement):

 

  

  

 

3

 

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

 

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

 

The Administrative Agent is hereby authorized and directed to declare this First 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 in Section 9.02 of the Credit Agreement.  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 First Amendment, shall remain in full force and effect following the effectiveness of this First Amendment.

 

4.2 Ratification and Affirmation; Representations and Warranties.  The Borrower hereby (a) ratifies and affirms its obligations under, and acknowledges its 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 as expressly amended hereby and (b) represents and warrants to the Lenders that as of the date hereof, after giving effect to the terms of this First Amendment:

 

      (i) all of the representations and warranties contained in each Loan Document to which it is a party are true and correct in all material respects (except that any such representations and warranties that are qualified as to materiality shall be true and correct in all respects), 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 in all material respects as of such specified earlier date;

 

      (ii) no Default or Event of Default has occurred and is continuing; and

 

          (iii) no event or events have occurred which individually or in the aggregate could reasonably be expected to have a Material Adverse Effect.

 

4.3 Counterparts. This First 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 First Amendment by facsimile transmission shall be effective as delivery of a manually executed counterpart hereof.

 

4.4 NO ORAL AGREEMENT. THIS FIRST AMENDMENT, THE CREDIT AGREEMENT AND THE OTHER LOAN DOCUMENTS EXECUTED IN CONNECTION HEREWITH AND THEREWITH REPRESENT THE FINAL 

 

  

  

 

4

 

AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR UNWRITTEN ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO SUBSEQUENT ORAL AGREEMENTS BETWEEN THE PARTIES.

 

4.5 GOVERNING LAW. THIS FIRST AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

 

 

[SIGNATURES BEGIN NEXT PAGE]

 

 

  

  

 

  

5

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

 

 

	
BORROWER:

	
NEWFIELD EXPLORATION COMPANY

 

 

	  	
By:                  /s/ Terry W. Rathert                                              

Name:  Terry W. Rathert

Title:    Executive Vice President & 

                         Chief Financial Officer

 

 

  

  

 

  

6

	
ADMINISTRATIVE AGENT AND 

LENDER:

	
JPMORGAN CHASE BANK, N.A.

 

 

	  	
By:                  /s/ Marshall Trenckmann                                              

Name:  Marshall Trenckmann

Title:    Vice President

 

 

 

 

  

  

 

  

7

	  	  
	
LENDER:

	
WELLS FARGO BANK, N.A.

 

 

	  	
By:                 /s/ Doug McDowell                                              

Name:  Doug McDowell

Title:    Director

 

 

  

  

 

  

8

	  	  
	
LENDER:

	
COMPASS BANK

 

	  	
By:                  /s/ Ann Van Wagner                                              

Name:  Ann Van Wagner

Title:    Vice President

 

 

  

  

 

  

9

	  	  
	
LENDER:

	
DNB NOR BANK ASA

 

 

	  	
By:                  /s/ Thomas Targen                                              

Name:   Thomas Targen

Title:     Senior Vice President

                          Head of Corporate Banking

 

 

	  	
By:                 /s/ Stian Lovseth                                              

Name:  Stian Lovseth

Title:    Vice President

 

 

  

  

 

  

10

	  	  
	
LENDER:

	
THE BANK OF TOKYO-MITSUBISHI 

UFJ, LTD.

 

 

	  	
By:                    /s/ William S. Rogers                                              

Name:   Will Rogers

Title:      Authorized Signatory

 

 

  

  

 

  

11

	  	  
	
LENDER:

	
CIBC, INC.

 

 

	  	
By:      ___________________________________________

Name:

Title:

 

 

	  	
By:      ___________________________________________

Name:

Title:

 

 

	  	  

  

  

 

  

12

	  	  
	
LENDER:

	
MIZUHO CORPORATE BANK LTD.

 

 

	  	
By:      __________________________________________

Name:

Title:

 

 

  

  

 

  

13

	  	  
	
LENDER:

	
SUMITOMO MITSUI BANKING 

CORPORATION

 

 

	  	
By:      __________________________________________

Name:

Title:

 

 

  

  

 

  

14

	  	  
	
LENDER:

	
ROYAL BANK OF CANADA

 

 

	  	
By:      _________________________________________

Name:

Title:

 

 

  

  

 

  

15

	  	  
	
LENDER:

	
U.S. BANK NATIONAL ASSOCIATION

 

 

	  	
By:      __________________________________________

Name:

Title:

 

 

  

  

 

  

16

	  	  
	
LENDER:

	
BARCLAYS BANK PLC

 

 

	  	
By:      ___________________________________________

Name:

Title:

 

 

  

  

 

  

17

	  	  
	
LENDER:

	
CITIBANK, N.A.

 

 

	  	
By:      ____________________________________________

Name:

Title:

 

 

  

  

 

  

18

	  	  
	
LENDER:

	
GOLDMAN SACHS BANK USA

 

 

	  	
By:      ___________________________________________

Name:

Title:Exhibit 10.1

 

 

July 29, 2011

 

 

Mr. David M. Cote

Chairman and Chief Executive Officer

Honeywell International Inc.

101 Columbia Road

Morristown, NJ 07962

 

Re: Equity Grant Enhancements

 

Dear Dave:

 

I am pleased to confirm additional terms and conditions of your
benefits package. The enhanced equity benefits described in this letter agreement (the “Agreement”) were recommended
by the Management Development and Compensation Committee of the Board of Directors and approved by the Board of Directors at its
meeting on July 29, 2011, and will be effective as of the date you execute this letter. The terms and conditions of these enhanced
equity benefits can be summarized as follows:

 

1.     
Stock Option Vesting

 

If you retire from Honeywell after April 1, 2015 and otherwise
satisfy the conditions more fully described in Paragraph 7 below, all outstanding, unvested stock options that were (i) granted
prior to April 1, 2015, and (ii) granted more that twelve (12) months prior to your retirement date, shall become vested on your
retirement date. If all or a portion of any such stock option grant is subject to performance conditions, vesting in that portion
of the award will occur at the end of the related performance cycle (even if this occurs after retirement), but only to the extent
Honeywell determines that the applicable performance conditions have been satisfied. Any such options that have, or potentially
could have, their vesting dates accelerated under this Agreement shall hereinafter be referred to as the “Retention Options.”

 

2.     
Time to Exercise

 

Notwithstanding anything contained in the 2006 Stock Incentive
Plan of Honeywell International Inc. and its Affiliates and the 2011 Stock Incentive Plan of Honeywell International Inc. and its
Affiliates, as well as any successor plans (collectively the “Honeywell Stock Plans”) or associated Award Agreements
to the contrary, if any Retention Options vest pursuant to Paragraph 1 above, you shall have the full remaining term to exercise
(i.e., typically 10 years from the date of each stock option grant) any vested stock options granted prior to April 1, 2015.

 

3.     
Change in Control

 

In the event of a Change in Control (as defined in the 2011 Stock
Incentive Plan of Honeywell International Inc. and its Affiliates) of the Company prior to April 1, 2015, your unvested stock options
shall become nonforfeitable in accordance with the applicable Honeywell Stock Plans. If, after a Change in Control, your Honeywell
stock options are not cashed out, the period within which you have to exercise any stock options shall be governed by this Agreement,
in conjunction with the applicable Honeywell Stock Plans and Award Agreements.

 

4.     
Termination Other Than for Cause

 

In the event you are involuntarily terminated by the Company other
than for Cause (as defined in your employment contract dated February 18, 2002, as amended from time to time) prior to April 1,
2015, any unvested Retention Options that were granted more than twelve (12) months prior to your date of termination shall become
vested as of your date of termination and you shall thereafter have the full remaining term to exercise those Retention Options.
Notwithstanding the foregoing, in the event any such Retention Options are subject to performance conditions, vesting in such Retention
Options will not occur, if at all, until the end of the related performance cycle (even if this occurs after termination of employment),
and only to the extent Honeywell determines that the applicable performance conditions have been satisfied.

 

5.     
Termination for Cause

 

In the event you are terminated by the Company for Cause (as defined
in your employment contract dated February 18, 2002, as amended from time to time) prior to April 1, 2015, this Agreement shall
immediately terminate and your rights with respect to all of your stock options, whether vested or unvested, shall be treated under
the terms of the applicable Honeywell Stock Plans and Award Agreements.

 

6.     
Death or Disability

 

In the event of your death or Disability (as defined in the 2011
Stock Incentive Plan of Honeywell International Inc. and its Affiliates) after the execution of this Agreement, you/your estate
shall have the full remaining term to exercise any stock options granted to you prior to April 1, 2015. Notwithstanding the foregoing,
in the event any stock options are subject to performance conditions, this Paragraph 6 shall only apply only to the extent such
stock options vest in accordance with the terms of the applicable Honeywell Stock Plans and Award Agreements.

 

7.     
Conditions Applicable to Retention Options

 

The rights and benefits described in this Agreement are subject
to the following terms and conditions:

 

	Prior to April 1, 2015, you may not engage (which includes pursuing
any CEO opportunities you may become aware of through unsolicited contacts), or knowingly permit another person to engage on your
behalf, in an external CEO search unless you have been involuntarily terminated other than for Cause prior to April 1, 2015; and
	Prior to April 1, 2015, and other than your current responsibilities
with the JPMorgan Chase & Co. Board of Directors and the Kohlberg Kravis Roberts & Co. Advisory Board, you may not accept
a position with another company, organization or entity, including any governmental agency or quasi-governmental body, unless(i)
you have been involuntarily terminated other than for Cause prior to April 1, 2015, or (ii) the Company’s Board of Directors
has otherwise consented to your service in such position; and
	You must provide Honeywell with twelve (12) months of transition
services before you voluntarily terminate your employment for any reason, including retirement; provided, however, you shall not
be treated as not having satisfied this condition if you become Disabled (as defined in the 2011 Stock Incentive Plan of Honeywell
International Inc. and its Affiliates). Notwithstanding the foregoing, the transition period may be shortened, in the sole and
absolute discretion the Board of Directors, if the Board determines that a shorter transition period is in the Company’s
best interest; and

 

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	You have not violated or threatened to violate the terms of any
noncompetition, nonsolicit, confidentiality or intellectual property covenants applicable to you under any other written agreement
between you and the Company; and
	You must not be terminated for Cause (consistent with Paragraph
4 definition).

 

If the Company determines, in its sole judgment, that you have
not satisfied any of these conditions, or that you have violated or threatened to violate the terms of any noncompetition, nonsolicit,
confidentiality or intellectual property covenants applicable to you under any other written agreement between you and the Company,
Honeywell shall have the right, along with any other legal or equitable remedies of which it may be able to avail itself, to withhold
and/or recoup the value of any consideration you realize pursuant to this Agreement. This Agreement is intended to supplement,
not supersede, any other rights Honeywell may have to recoup equity awards under the terms of the applicable stock plans or award
agreements, or to pursue to other rights or remedies described more fully in any other agreement between you and the Company.

 

8.     
Modification and Waiver

 

This Agreement may be amended or modified only by an agreement
in writing. The failure by the Company to declare a breach or otherwise to assert its rights under this Agreement shall not be
construed as a waiver of any right the Company has under this Agreement.

 

9.     
Effect of Stock Plans and Award Agreements

 

All other terms and conditions of your equity grants shall remain
subject to the terms and conditions of the applicable stock plans and award agreements.

 

10.     
Section 409A

 

These extraordinary equity vesting provisions are subject to the
requirements of Internal Revenue Code Section 409A, and you agree that this Agreement may be modified to the extent necessary to
comply therewith.

 

Please indicate your acceptance of the terms and conditions of
this letter by returning a signed copy of this letter to my attention.

 

Congratulations,

 

 

/s/ D. Scott Davis

D. Scott Davis

Chairman

Management Development and Compensation Committee

of the Board of Directors

Honeywell International Inc.

 

Read and Accepted:

 

 

/s/ David M. Cote                     Date: August 4, 2011

David M. Cote

 

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