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Exhibit 4.17    
  

 
 

SECOND AMENDMENT TO COMBINED CREDIT AGREEMENTS    
  

        THIS SECOND AMENDMENT TO COMBINED CREDIT AGREEMENTS, dated as of April 3, 2002 (the "Amendment"), among
Forest Oil Corporation, a New York corporation (the "U.S. Borrower"), Canadian Forest Oil Ltd. and each other subsidiary of Canadian Forest which
becomes a "Borrower" (as defined in the Canadian Credit Agreement) under the Canadian Credit Agreement (the "Canadian Borrowers"), 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"), Bank of America, N.A., as U.S. Syndication Agent,
Citibank, N.A., as U.S. Documentation Agent, J.P. Morgan Bank Canada, successor to The Chase Manhattan Bank of Canada, as Canadian Administrative Agent, Bank of Montreal, as Canadian Syndication
Agent, The Toronto-Dominion Bank, as Canadian Documentation Agent, and JPMorgan Chase Bank, successor to The Chase Manhattan Bank, as Global Administrative Agent (in such capacity, together with its
successors in such capacity, the "Global Administrative Agent"). 

W I T N E S S E T H:  

        1.    The
U.S. Borrower, Global Administrative Agent, the U.S. Syndication Agent, the U.S. Documentation Agent, and the U.S. Lenders are parties to that certain Credit
Agreement dated as of October 10, 2000, as previously amended (as previously 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 Borrowers, Global Administrative Agent, the Canadian Administrative Agent, the Canadian Syndication Agent, the Canadian Documentation Agent, and the Canadian
Lenders are parties to that certain Credit Agreement dated as of October 10, 2000, as previously amended (as previously 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
Borrowers. 

        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.    Sections 7.1(a)(ii) and (iii) of the U.S. Credit Agreement hereby are
amended in their entirety to read as follows: 

"
(ii) (A) Senior Notes in an aggregate principal amount not to exceed at any one time U.S.$675,000,000; and (B) Subordinated Debt with an aggregate principal amount outstanding not to exceed
the sum of U.S.$200,000,000 less any increase in the principal amount of Subordinated Indebtedness-101/2% Senior Subordinated
Notes not otherwise permitted under Section 7.1(a)(iii) in excess of the principal amount for such notes set forth on  Schedule 7.1(a);

        (iii)  Indebtedness
existing on the date hereof and set forth in Schedule 7.1(a), and any Indebtedness
("Refinancing Indebtedness") issued in exchange for or the proceeds of which are used to repay, refund, refinance or discharge or otherwise retire any
Indebtedness set forth on Schedule 7.1(a) ("Refinanced Indebtedness"),  provided that such Refinancing
Indebtedness (A) shall not exceed the principal amount (other than through the capitalization of premiums, fees,
expenses and interest on the Refinanced Indebtedness) of the Refinanced Indebtedness as of the date of 

 

this Agreement, (B) is subordinated upon terms and conditions substantially identical to the Refinanced Indebtedness, and (C) shall not contain terms and conditions materially more
onerous to Borrower and its Restricted Subsidiaries than those contained in the Refinanced Indebtedness;". 

        II.    Effectiveness.    This Amendment shall become effective as of the date hereof when the
Global Administrative Agent shall have received counterparts hereof duly executed by the U.S. Borrower, the Canadian Borrowers, the Global Administrative Agent and at least the Required 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). 

        III.    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 Borrowers 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 U.S. Borrower and its Restricted Subsidiaries is duly organized, validly existing and in good standing under the laws of the jurisdiction of its
organization, has all requisite power and authority to carry on its business as now conducted and, except where the failure to do so, individually or in the aggregate, could not reasonably be expected
to result in a Material Adverse Effect, is qualified to do business in, and is in good standing in, every jurisdiction where such qualification is required. 

        (iii)  The
execution, delivery and performance by U.S. Borrower of this Amendment and each other Combined Loan Document executed or to be executed by it, and the execution,
delivery and performance by each other Combined Loan Party of this Amendment and each other Combined Loan Document executed or to be executed by it, are within U.S. Borrower's and each such Combined
Loan Party's corporate, limited liability company and/or partnership powers, and have been duly authorized by all necessary corporate, limited liability company and/or partnership action, and if
required, stockholder, member and/or partner action. This Amendment and each other Combined Loan Document executed or to be executed by it has been duly executed and delivered by U.S. Borrower and
constitutes, and this Amendment and each other Combined Loan Document executed or to be executed by any Combined Loan Party, when executed and delivered by such Combined Loan Party, will constitute, a
legal, valid and binding obligation of U.S. Borrower or such Combined Loan Party (as the case may be), enforceable in accordance with their respective terms, subject to applicable bankruptcy,
insolvency, reorganization, moratorium or other laws affecting creditors' rights generally and subject to general principles of equity, regardless of whether considered in a proceeding in equity or at
law. 

        (iv)  The
execution, delivery and performance by the U.S. Borrower of this Amendment and each other Combined Loan Document executed or to be executed by it, and the
execution, delivery and performance by each other Combined Loan Party of this Amendment and each Loan Document executed or to be executed by such Combined Loan Party, (a) do not require any
Governmental Approval or third party approvals, except such as have been obtained or made and are in full force and effect and except filings necessary to perfect Liens created under the Combined Loan
Documents, (b) will not violate any applicable Governmental Rule or the Organic Documents of U.S. Borrower or any such Combined Loan Party or any order of any Governmental Authority,
(c) will not violate or result in a default under any indenture, agreement or other instrument binding upon U.S. Borrower or any such Combined Loan Party or its assets, or give rise to a right
thereunder to require any payment to be made by U.S. Borrower or any such 

2

 

Combined Loan Party, and (d) will not result in the creation or imposition of any Lien on any asset of U.S. Borrower or any such Combined Loan Party except Liens created under the Combined
Loan Documents. 

        (v)  No
Default under the Combined Loan Documents has occurred and is continuing and 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 which individually or in the aggregate could reasonably be expected to have a Material Adverse Effect. 

        IV.    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. 

        V.    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. 

        VI.    Governing Law.    THIS AMENDMENT SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE
STATE OF NEW YORK.  

        VII.    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. 

        VIII.    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. 

        IX.    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. 

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

        XI.    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 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.  

[SIGNATURES BEGIN ON FOLLOWING PAGE]  

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        IN WITNESS WHEREOF, the U.S. Borrower, the Canadian Borrowers, the 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
	

 	
 	

FOREST OIL CORPORATION
	

 	
 	

By:	
 	

/s/  DONALD H. STEVENS      

	 	 	 	 	Name:	 	Donald H. Stevens
	 	 	 	 	Title:	 	Vice President and Treasurer
	 	 	CANADIAN BORROWER
	

 	
 	

CANADIAN FOREST OIL LTD.
	

 	
 	

By:	
 	

/s/  JOAN C. SONNEN      

	 	 	 	 	Name:	 	Joan C. Sonnen
	 	 	 	 	Title:	 	Vice President

S-1

 

	 	 	AGENTS AND COMBINED LENDERS
	

 	
 	
JPMORGAN CHASE BANK, successor to The Chase Manhattan Bank, as Global Administrative Agent and as a U.S. Lender
	

 	
 	

By:	
 	

/s/  ROBERT C. MERTENSOTTO      

	 	 	 	 	Name:	 	Robert C. Mertensotto
	 	 	 	 	Title:	 	Managing Director

S-2

 

	 	 	BANK OF AMERICA, N.A., as U.S. Syndication Agent and as a U.S. Lender
	

 	
 	

By:	
 	

/s/  RICHARD L. STEIN      

	 	 	 	 	Name:	 	Richard L. Stein
	 	 	 	 	Title:	 	Principal

S-3

 

	 	 	CITIBANK, N.A., as U.S. Documentation Agent and as a U.S. Lender
	

 	
 	

By:	
 	

/s/  DOUGLAS A. WHIDDON      

	 	 	 	 	Name:	 	Douglas A. Whiddon
	 	 	 	 	Title:	 	Attorney-in-fact

S-4

 

	 	 	BANK OF MONTREAL, as a U.S. Lender
	

 	
 	

By:	
 	

/s/  JAMES V. DUCOTE      

	 	 	 	 	Name:	 	James V. Ducote
	 	 	 	 	Title:	 	Director

S-5

 

	 	 	TORONTO DOMINION (TEXAS), INC., as a U.S. Lender
	

 	
 	

By:	
 	

/s/  JILL HALL      

	 	 	 	 	Name:	 	Jill Hall
	 	 	 	 	Title:	 	Vice President

S-6

 

	 	 	ABN AMRO BANK N.V., as a U.S. Lender
	

 	
 	

By:	
 	

/s/  FRANK R. RUSSO, JR.      

	 	 	 	 	Name:	 	Frank R. Russo, Jr.
	 	 	 	 	Title:	 	Group Vice President
	

 	
 	

By:	
 	

/s/  JEFFERY G. WHITE      

	 	 	 	 	Name:	 	Jeffery G. White
	 	 	 	 	Title:	 	Vice President

S-7

 

	 	 	BANK OF SCOTLAND, as a U.S. Lender
	

 	
 	

By:	
 	

/s/  JOSEPH FRATUS      

	 	 	 	 	Name:	 	Joseph Fratus
	 	 	 	 	Title:	 	Vice President

S-8

 

	 	 	BANK ONE, NA (Main Office Chicago), as a U.S. Lender
	

 	
 	

By:	
 	

/s/  STEPHEN LESCHER      

	 	 	 	 	Name:	 	Stephen Lescher
	 	 	 	 	Title:	 	Director, Capital Markets

S-9

 

	 	 	CHRISTIANIA BANK OG KREDITKASSE, ASA NEW YORK BRANCH, as a U.S. Lender
	

 	
 	

By:	
 	

 
	 	 	 	 	

	 	 	 	 	Name:	 	 
	 	 	 	 	Title:	 	 
	

 	
 	

By:	
 	

 
	 	 	 	 	

	 	 	 	 	Name:	 	 
	 	 	 	 	Title:	 	 

S-10

 

	 	 	FORTIS CAPITAL CORP., as a U.S. Lender
	

 	
 	

By:	
 	

 
	 	 	 	 	

	 	 	 	 	Name:	 	 
	 	 	 	 	Title:	 	 
	

 	
 	

By:	
 	

 
	 	 	 	 	

	 	 	 	 	Name:	 	 
	 	 	 	 	Title:	 	 

S-11

 

	 	 	U.S. BANK NATIONAL ASSOCIATION, as a U.S. Lender
	

 	
 	

 
	

 	
 	

By:	
 	

/s/  CAROLINE M. MCCLURG      

	 	 	 	 	Name:	 	Caroline M. McClurg
	 	 	 	 	Title:	 	Vice President

S-12

 

	 	 	BNP PARIBAS, as a U.S. Lender
	

 	
 	

By:	
 	

/s/  DAVID DODD      

	 	 	 	 	Name:	 	David Dodd
	 	 	 	 	Title:	 	Director
	

 	
 	

By:	
 	

/s/  BETSY JOCHER      

	 	 	 	 	Name:	 	Betsy Jocher
	 	 	 	 	Title:	 	Vice President

S-13

 

	 	 	CREDIT AGRICOLE INDOSUEZ, as a U.S. Lender
	

 	
 	

By:	
 	

/s/  BRIAN KNEZEAR      

	 	 	 	 	Name:	 	Brian Knezear
	 	 	 	 	Title:	 	First Vice President
	

 	
 	

By:	
 	

/s/  MICHAEL D. WILLIS      

	 	 	 	 	Name:	 	Michael D. Willis
	 	 	 	 	Title:	 	Vice President

S-14

 

	 	 	CREDIT SUISSE FIRST BOSTON, as a U.S. Lender
	

 	
 	

By:	
 	

/s/  PAUL L. COLÓN      

	 	 	 	 	Name:	 	Paul L. Colón
	 	 	 	 	Title:	 	Vice President
	

 	
 	

By:	
 	

/s/  VANESSA GOMEZ      

	 	 	 	 	Name:	 	Vanessa Gomez
	 	 	 	 	Title:	 	Associate

S-15

 

	 	 	GENERAL ELECTRIC CAPITAL CORPORATION as a U.S. Lender
	

 	
 	

By:	
 	

 
	 	 	 	 	

	 	 	 	 	Name:	 	 
	 	 	 	 	Title:	 	 

S-16

 

	 	 	MIZUHO CORPORATE BANK, formerly The Fuji Bank, Limited, as a U.S. Lender
	

 	
 	

By:	
 	

 
	 	 	 	 	

	 	 	 	 	Name:	 	 
	 	 	 	 	Title:	 	 

S-17

 

	 	 	THE BANK OF NEW YORK, as a U.S. Lender
	

 	
 	

By:	
 	

/s/  PETER W. KELLER      

	 	 	 	 	Name:	 	Peter W. Keller
	 	 	 	 	Title:	 	Vice President

S-18

 

	 	 	HIBERNIA NATIONAL BANK, as a U.S. Lender
	

 	
 	

By:	
 	

/s/  DARIA MAHONEY      

	 	 	 	 	Name:	 	Daria Mahoney
	 	 	 	 	Title:	 	Vice President

S-19

 

	 	 	THE INDUSTRIAL BANK OF JAPAN, LIMITED, NEW YORK BRANCH, as a U.S. Lender
	

 	
 	

By:	
 	

 
	 	 	 	 	

	 	 	 	 	Name:	 	 
	 	 	 	 	Title:	 	 

S-20

 

	 	 	UFJ BANK, formerly know as The Sanwa Bank, Limited, as a U.S. Lender
	

 	
 	

By:	
 	

/s/  CLYDE L. REDFORD      

	 	 	 	 	Name:	 	Clyde L. Redford
	 	 	 	 	Title:	 	Senior Vice President

S-21

 

	 	 	SOCIETE GENERALE, SOUTHWEST AGENCY, as a U.S. Lender
	

 	
 	

By:	
 	

/s/  CARY HUGHES      

	 	 	 	 	Name:	 	Cary Hughes
	 	 	 	 	Title:	 	Director

S-22

 

	 	 	ING CAPITAL LLC, as a U.S. Lender
	

 	
 	

By:	
 	

/s/  RONALD SCHERPENHUIJSEN ROM      

	 	 	 	 	Name:	 	Ronald Scherpenhuijsen Rom
	 	 	 	 	Title:	 	Managing Director

S-23

 

	 	 	J.P. MORGAN BANK CANADA, successor to The Chase Manhattan Bank of Canada, as Canadian Administrative Agent
	

 	
 	

By:	
 	

/s/  DREW MCDONALD      

	 	 	 	 	Name:	 	Drew McDonald
	 	 	 	 	Title:	 	Vice President
	

 	
 	

By:	
 	

/s/  CHRISTINE CHAN      

	 	 	 	 	Name:	 	Christine Chan
	 	 	 	 	Title:	 	Vice President

S-24

 

	 	 	JPMORGAN CHASE BANK, TORONTO BRANCH, as a Canadian Lender
	

 	
 	

By:	
 	

/s/  DREW MCDONALD      

	 	 	 	 	Name:	 	Drew McDonald
	 	 	 	 	Title:	 	Vice President
	

 	
 	

By:	
 	

/s/  CHRISTINE CHAN      

	 	 	 	 	Name:	 	Christine Chan
	 	 	 	 	Title:	 	Vice President

S-25

 

	 	 	BANK OF MONTREAL, as Canadian Syndication Agent and as a Canadian Lender
	

 	
 	

By:	
 	

/s/  JAMES V. DUCOTE      

	 	 	 	 	Name:	 	James V. Ducote
	 	 	 	 	Title:	 	Director

S-26

 

	 	 	THE TORONTO-DOMINION BANK, as Canadian Documentation Agent and as a Canadian Lender
	

 	
 	

By:	
 	

/s/  DEBBI L. BRITO      

	 	 	 	 	Name:	 	Debbi L. Brito
	 	 	 	 	Title:	 	Asst. Mgr. Corporate Credit & Compliance

S-27

 

	 	 	BANK OF AMERICA CANADA, as a Canadian Lender
	

 	
 	

By:	
 	

 
	 	 	 	 	

	 	 	 	 	Name:	 	 
	 	 	 	 	Title:	 	 

S-28

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Exhibit 4.17

SECOND AMENDMENT TO COMBINED CREDIT AGREEMENTSQuickLinks
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Exhibit 4.18    
  

 
  THIRD AMENDMENT TO COMBINED CREDIT AGREEMENTS    
  

        THIS THIRD AMENDMENT TO COMBINED CREDIT AGREEMENTS, dated as of May 31, 2002 (the "Amendment"), among
Forest Oil Corporation, a New York corporation (the "U.S. Borrower"), Canadian Forest Oil Ltd. and each other subsidiary of Canadian Forest which
becomes a "Borrower" (as defined in the Canadian Credit Agreement) under the Canadian Credit Agreement (the "Canadian Borrowers"), 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"), Bank of America, N.A., as U.S. Syndication Agent,
Citibank, N.A., as U.S. Documentation Agent, J.P. Morgan Bank Canada, successor to The Chase Manhattan Bank of Canada, as Canadian Administrative Agent, Bank of Montreal, as Canadian Syndication
Agent, The Toronto-Dominion Bank, as Canadian Documentation Agent, and JPMorgan Chase Bank, successor to The Chase Manhattan Bank, as Global Administrative Agent (in such capacity, together with its
successors in such capacity, the "Global Administrative Agent"). 

 
 

W I T N E S S E T H:    
  

        1.    The
U.S. Borrower, Global Administrative Agent, the U.S. Syndication Agent, the U.S. Documentation Agent, and the U.S. Lenders are parties to that certain Credit
Agreement dated as of October 10, 2000, as previously amended (as previously 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 Borrowers, Global Administrative Agent, the Canadian Administrative Agent, the Canadian Syndication Agent, the Canadian Documentation Agent, and the Canadian
Lenders are parties to that certain Credit Agreement dated as of October 10, 2000, as previously amended (as previously 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
Borrowers. 

        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.    Section 1.1 of the U.S. Credit Agreement hereby is amended by inserting the following definitions of "Senior
Unsecured Debt Rating" and "Senior Unsecured Debt Rating Level" in appropriate alphabetical order: 

"    "Senior Unsecured Debt Rating" means, on the date of determination, the ratings by Moody's and S&P of senior, unsecured,
long-term indebtedness for borrowed money of Borrower that is not Guaranteed by any other Person (other than a Restricted Subsidiary which has executed a Guaranty) or subject to any other
credit enhancement. 

"    "Senior Unsecured Debt Rating Level" means the level set forth below that corresponds to the lower Senior Unsecured Debt Rating issued
from time to time by Moody's or S&P, as applicable, to Borrower: 

	 
	 	Moody's
	 	S&P

	Level I	 	Baa3 and higher	 	BBB- and higher
	Level II	 	Ba1 or lower	 	BB+ or lower

 

For
purposes of the foregoing, (a) if either Moody's or S&P shall not have in effect a Senior Unsecured Debt Rating (other than by reason of the circumstances referred to in the last sentence
of this definition), then such rating agency shall be deemed to have established a Senior Unsecured Debt Rating of Level II; (b) if the Senior Unsecured Debt Ratings established or deemed to
have been established by Moody's and S&P shall fall within different Levels, the applicable Level shall be based on the lower of the two Senior Unsecured Debt Ratings; and (c) if the Senior
Unsecured Debt Ratings established or deemed to have been established by Moody's and S&P shall be changed (other than as a result of a change in the rating system of Moody's or S&P), such change shall
be effective as of the date on which it is first announced by the applicable rating agency, irrespective of when notice of such change shall have been furnished by Borrower to the Agents and the
Lenders pursuant to Section 5.2(a)(ii) hereof or otherwise. Each change in the Senior Unsecured Debt Rating Level 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 such change to the Senior Unsecured Debt Rating Level. If the rating
system of Moody's or S&P shall change, or if any such rating agency shall cease to be in the business of rating corporate debt obligations, Borrower and the Lenders shall negotiate in good faith to
amend this definition to reflect such changed rating system or the unavailability of ratings from such rating agency and, pending the effectiveness of any such amendment, the Senior Unsecured Debt
Rating Level shall be determined by reference to the rating most recently in effect prior to such change or cessation.." 

        B.    The
definition of "Applicable Rating Level" in Section 1.1 of the U.S. Credit Agreement hereby is amended by
replacing the reference to "Section 5.2(e)" with "Section 5.2(a)(ii)". 

        C.    Sections 5.1(e) and (f) of the U.S. Credit Agreement hereby are amended in
their entirety to read as follows: 

"    (e)
At any time when the Senior Unsecured Debt Rating Level of Borrower is Level II, by May 1st of each year, a Reserve Report prepared by Borrower and audited by an Approved
Engineer (the "Independent Reserve Report"), and by October 1st of each year, a Reserve Report prepared by Borrower, utilizing a mathematical average of the customary discount rates and price
decks of the Technical Lenders and in form and substance acceptable to the Global Administrative Agent (the "Internal Reserve Report"); 

     (f)
At any time when the Senior Unsecured Debt Rating Level of Borrower is Level II, concurrently with the delivery of any Reserve Report, a completed certificate
calculating and certifying the Present Value of the Properties of Borrower and its Restricted Subsidiaries as of the effective date of such Reserve Report, executed on behalf of Borrower by an
Authorized Officer, provided, that such Present Value calculation shall not be considered effective for the purposes of this Agreement if the Technical Lenders determine, acting reasonably, that
either (i) the calculations used to determine such Present Value as so certified and calculated by Borrower were not based on the mathematical average of the customary discount rates and price
decks of the Technical Lenders or (ii) the calculations used to determine such Present Value are incorrect or mistaken, it being understood that in the event that the Technical Lenders believe
that the circumstances described in either clause (i) or clause (ii) above has occurred, the Global Administrative Agent shall promptly notify Borrower, and Borrower and Technical
Lenders will cooperate to determine the appropriate amount for such Present Value;". 

2

 

        D.    Section 5.2(a)(ii) of the U.S. Credit Agreement hereby is amended in its entirety to read as follows: 

"    (ii)
an announcement by Moody's or S&P of a change in (A) the Senior Unsecured Debt Rating, (B) the Bank Credit Facility Rating or (C) any other rating of Borrower
or any of its Subsidiaries;". 

        E.    Section 5.15(c) of the U.S. Credit Agreement hereby is amended in its entirety to read as follows: 

"    (c)
If at any time when the Senior Unsecured Debt Rating Level of Borrower is Level II, Global Administrative Agent shall have received currently effective, duly executed Loan Documents
encumbering Oil and Gas Properties of Borrower and its Restricted Subsidiaries constituting less than 75% of the Present Value of Oil and Gas Properties of Borrower and its Restricted Subsidiaries,
then Borrower shall, or shall cause its Restricted Subsidiaries to, execute and deliver to the Global Administrative Agent supplemental or additional Security Documents, in form and substance
reasonably satisfactory to the Global Administrative Agent and its counsel, covering additional Oil and Gas Properties of Borrower and its Restricted Subsidiaries not then encumbered by any Combined
Loan Documents such that the Global Administrative Agent shall have received currently effective duly executed Security Documents encumbering Oil and Gas Properties of Borrower and its Restricted
Subsidiaries constituting 75% or more of the Present Value of Oil and Gas Properties of Borrower and its Restricted Subsidiaries." 

        F.    Section 6.1 of the U.S. Credit Agreement hereby is amended in its entirety to read as follows 

"    SECTION
6.1. Ratio of Total Debt to EBITDA. Borrower will not permit its ratio of Total Debt outstanding to EBITDA (calculated for the
last four consecutive fiscal quarter period then most recently ended for which financial statements are available) (i) at any time when the Applicable Rating Level of Borrower is Level III, to
be greater than 4.00 to 1.00, and (ii) at any time when the Applicable Rating Level of Borrower is Level I or Level II, to be greater than (A) 3.50 to 1.00 for periods of calculation
ending on or before December 31, 2003 and (B) 3.25 to 1.00 for periods of calculation ending after December 31, 2003." 

        G.    Section 6.2 of the U.S. Credit Agreement hereby is amended in its entirety to read as follows: 

"    SECTION
6.2 [Intentionally omitted]." 

        H.    Section 6.3 of the U.S. Credit Agreement hereby is amended in its entirety to read as follows: 

"    SECTION
6.3. Ratio of Present Value to Total Debt. If the Applicable Rating Level of Borrower is Level II, then Borrower will not permit
its ratio of Present Value to Total Debt outstanding to be less than (A) 1.75 to 1.00 for periods of calculation ending on or before the earlier to occur ("Delivery
Date") of (I) May 1, 2004 or (II) the date the January 1, 2004 Reserve Report and the Present Value certificate have been delivered by Borrower
pursuant to Sections 5.1(e) and 5.1(f), and (B) 2.00 to 1.00 for periods of calculation ending at
any time after the Delivery Date." 

        I.    Section 6.4 of the U.S. Credit Agreement hereby is amended in its entirety to read as follows: 

"    SECTION
6.4 [Intentionally omitted]." 

        II.    Effectiveness.    This Amendment shall become effective as of
the date hereof when the Global Administrative Agent shall have received: 

        A.    Counterparts
hereof duly executed by the U.S. Borrower, the Canadian Borrowers, the Global Administrative Agent and at least the Required Lenders (or, in the case of any
party as to 

3

 

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 executing this Amendment and returning its signature page to the Global Administrative Agent on or before
May 31, 2002 in an amount agreed to by Borrower in its written request for this amendment. 

        III.    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 Borrowers 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 U.S. Borrower and its Restricted Subsidiaries is duly organized, validly existing and in good standing under the laws of the jurisdiction of its
organization, has all requisite power and authority to carry on its business as now conducted and, except where the failure to do so, individually or in the aggregate, could not reasonably be expected
to result in a Material Adverse Effect, is qualified to do business in, and is in good standing in, every jurisdiction where such qualification is required. 

        (iii)  The
execution, delivery and performance by U.S. Borrower of this Amendment and each other Combined Loan Document executed or to be executed by it, and the execution,
delivery and performance by each other Combined Loan Party of this Amendment and each other Combined Loan Document executed or to be executed by it, are within U.S. Borrower's and each such Combined
Loan Party's corporate, limited liability company and/or partnership powers, and have been duly authorized by all necessary corporate, limited liability company and/or partnership action, and if
required, stockholder, member and/or partner action. This Amendment and each other Combined Loan Document executed or to be executed by it has been duly executed and delivered by U.S. Borrower and
constitutes, and this Amendment and each other Combined Loan Document executed or to be executed by any Combined Loan Party, when executed and delivered by such Combined Loan Party, will constitute, a
legal, valid and binding obligation of U.S. Borrower or such Combined Loan Party (as the case may be), enforceable in accordance with their respective terms, subject to applicable bankruptcy,
insolvency, reorganization, moratorium or other laws affecting creditors' rights generally
and subject to general principles of equity, regardless of whether considered in a proceeding in equity or at law. 

        (iv)  The
execution, delivery and performance by the U.S. Borrower of this Amendment and each other Combined Loan Document executed or to be executed by it, and the
execution, delivery and performance by each other Combined Loan Party of this Amendment and each Loan Document executed or to be executed by such Combined Loan Party, (a) do not require any
Governmental Approval or third party approvals, except such as have been obtained or made and are in full force and effect and except filings necessary to perfect Liens created under the Combined Loan
Documents, (b) will not violate any applicable Governmental Rule or the Organic Documents of U.S. Borrower or any such Combined Loan Party or any order of any Governmental Authority,
(c) will not violate or result in a default under any indenture, agreement or other instrument binding upon U.S. Borrower or any such Combined Loan Party or its assets, or give rise to a right
thereunder to require any payment to be made by U.S. Borrower or any such Combined Loan Party, and (d) will not result in the creation or imposition of any Lien on any asset of U.S. Borrower or
any such Combined Loan Party except Liens created under the Combined Loan Documents. 

4

 

        (v)  No
Default under the Combined Loan Documents has occurred and is continuing and 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 which individually or in the aggregate could reasonably be expected to have a Material Adverse Effect. 

        IV.    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. 

        V.    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. 

        VI.    Governing Law.    THIS AMENDMENT SHALL
BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.

        VII.    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. 

        VIII.    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. 

        IX.    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. 

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

        XI.    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 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.  

[SIGNATURES BEGIN ON FOLLOWING PAGE]  

5

   
        IN WITNESS WHEREOF, the U.S. Borrower, the Canadian Borrowers, the 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
	

 	
 	

FOREST OIL CORPORATION
	

 	
 	

By:	
 	

/s/  DONALD H. STEVENS      

	 	 	 	 	Name:	 	Donald H. Stevens
	 	 	 	 	Title:	 	Vice President and Treasurer
	

 	
 	
CANADIAN BORROWER
	

 	
 	

CANADIAN FOREST OIL LTD.
	

 	
 	

By:	
 	

/s/  JOAN C. SONNEN      

	 	 	 	 	Name:	 	Joan C. Sonnen
	 	 	 	 	Title:	 	Vice President

S-1

 

	 	 	AGENTS AND COMBINED LENDERS
	

 	
 	
JPMORGAN CHASE BANK, successor to The Chase Manhattan Bank, as Global Administrative Agent and as a U.S. Lender
	

 	
 	

By:	
 	

/s/  ROBERT C. MERTENSOTTO      

	 	 	 	 	Name:	 	Robert C. Mertensotto
	 	 	 	 	Title:	 	MANAGING DIRECTOR

S-2

 

	 	 	BANK OF AMERICA, N.A., as U.S. Syndication Agent and as a U.S. Lender
	

 	
 	

By:	
 	

/s/  RICHARD L. STEIN      

	 	 	 	 	Name:	 	Richard L. Stein
	 	 	 	 	Title:	 	Principal

S-3

 

	 	 	CITIBANK, N.A., as U.S. Documentation Agent and as a U.S. Lender
	

 	
 	

By:	
 	

/s/  DOUGLAS A. WHIDDON      

	 	 	 	 	Name:	 	Douglas A. Whiddon
	 	 	 	 	Title:	 	Attorney-in-Fact

S-4

 

	 	 	BANK OF MONTREAL, as a U.S. Lender
	

 	
 	

By:	
 	

/s/  JAMES V. DUCOTE      

	 	 	 	 	Name:	 	James V. Ducote
	 	 	 	 	Title:	 	Director

S-5

 

	 	 	TORONTO DOMINION (TEXAS), INC., as a U.S. Lender
	

 	
 	

By:	
 	

/s/  DEBBIE A. GREENE      

	 	 	 	 	Name:	 	Debbie A. Greene
	 	 	 	 	Title:	 	Vice President

S-6

 

	 	 	ABN AMRO BANK N.V., as a U.S. Lender
	

 	
 	

By:	
 	

/s/  JEFFERY WHITE      

	 	 	 	 	Name:	 	Jeffery White
	 	 	 	 	Title:	 	Vice President
	

 	
 	

By:	
 	

/s/  JOHN REED      

	 	 	 	 	Name:	 	John Reed
	 	 	 	 	Title:	 	Vice President

S-7

 

	 	 	BANK OF SCOTLAND, as a U.S. Lender
	

 	
 	

By:	
 	

/s/  JOSEPH FRATUS      

	 	 	 	 	Name:	 	Joseph Fratus
	 	 	 	 	Title:	 	Vice President

S-8

 

	 	 	BANK ONE, NA (Main Office Chicago), as a U.S. Lender
	

 	
 	

By:	
 	

/s/  J. SCOTT FOWLER      

	 	 	 	 	Name:	 	J. Scott Fowler
	 	 	 	 	Title:	 	Director

S-9

 

	 	 	NORDEA BANK FINLAND, PLC, NEW YORK BRANCH f/k/a formerly Christiania Bank Og Kreditkasse, ASA New York Branch, as a U.S. Lender
	

 	
 	

By:	
 	

/s/  ANNE ENGEN      

	 	 	 	 	Name:	 	Anne Engen
	 	 	 	 	Title:	 	Vice President
	

 	
 	

By:	
 	

/s/  RONNY BJORNADAL      

	 	 	 	 	Name:	 	Ronny Bjornadal
	 	 	 	 	Title:	 	Vice President

S-10

 

	 	 	FORTIS CAPITAL CORP., as a U.S. Lender
	

 	
 	

By:	
 	

/s/  ILLEGIBLE      

	 	 	 	 	Name:	 	ILLEGIBLE
	 	 	 	 	Title:	 	Vice President
	

 	
 	

By:	
 	

/s/  DARRELL W. HOLLEY      

	 	 	 	 	Name:	 	Darrell W. Holley
	 	 	 	 	Title:	 	Managing Director

S-11

 

	 	 	U.S. BANK NATIONAL ASSOCIATION, as a U.S. Lender
	

 	
 	

By:	
 	

/s/  MATTHEW J. PURCHASE      

	 	 	 	 	Name:	 	Matthew J. Purchase
	 	 	 	 	Title:	 	Assistant Vice President

S-12

 

	 	 	BNP PARIBAS, as a U.S. Lender
	

 	
 	

By:	
 	

/s/  DAVID DODD      

	 	 	 	 	Name:	 	David Dodd
	 	 	 	 	Title:	 	Director
	

 	
 	

By:	
 	

/s/  BETSY JOCHER      

	 	 	 	 	Name:	 	Betsy Jocher
	 	 	 	 	Title:	 	Vice President

S-13

 

	 	 	CREDIT AGRICOLE INDOSUEZ, as a U.S. Lender
	

 	
 	

By:	
 	

/s/  MARK LVOFF      

	 	 	 	 	Name:	 	Mark Lvoff
	 	 	 	 	Title:	 	First Vice President

Head of Energy Platform
	

 	
 	

By:	
 	

/s/  MICHAEL D. WILLIS      

	 	 	 	 	Name:	 	Michael D. Willis
	 	 	 	 	Title:	 	Vice President

S-14

 

	 	 	CREDIT SUISSE FIRST BOSTON, as a U.S. Lender
	

 	
 	

By:	
 	

/s/  JAMES P. MORAN      

	 	 	 	 	Name:	 	James P. Moran
	 	 	 	 	Title:	 	Director
	

 	
 	

By:	
 	

/s/  DAVID M. KOCZAN      

	 	 	 	 	Name:	 	David M. Koczan
	 	 	 	 	Title:	 	Associate

S-15

 

	 	 	GENERAL ELECTRIC CAPITAL CORPORATION as a U.S. Lender
	

 	
 	

By:	
 	

 	
 	

 
	 	 	 	 	

	 	 	 	 	Name:	 	 
	 	 	 	 	Title:	 	 

S-16

 

	 	 	MIZUHO CORPORATE BANK, formerly The Fuji Bank, Limited, as a U.S. Lender
	

 	
 	
MIZUHO CORPORATE BANK, formerly The Industrial Bank Of Japan, Limited, New York Branch, as a U.S. Lender
	

 	
 	

By:	
 	

/s/  THOMAS W. BOYLAN      

	 	 	 	 	Name:	 	Thomas W. Boylan
	 	 	 	 	Title:	 	VP & SR. Team Leader

S-17

 

	 	 	THE BANK OF NEW YORK, as a U.S. Lender
	

 	
 	

By:	
 	

/s/  PETER KELLER      

	 	 	 	 	Name:	 	Peter Keller
	 	 	 	 	Title:	 	Vice President

S-18

 

	 	 	HIBERNIA NATIONAL BANK, as a U.S. Lender
	

 	
 	

By:	
 	

/s/  DARIA MAHONEY      

	 	 	 	 	Name:	 	Daria Mahoney
	 	 	 	 	Title:	 	Vice President

S-19

 

	 	 	UFJ BANK, formerly known as The Sanwa Bank, Limited, as a U.S. Lender
	

 	
 	

By:	
 	

/s/  CLYDE L. REDFORD      

	 	 	 	 	Name:	 	Clyde L. Redford
	 	 	 	 	Title:	 	Senior Vice President

S-20

 

	 	 	SOCIETE GENERALE, SOUTHWEST AGENCY, as a U.S. Lender
	

 	
 	

By:	
 	

 	
 	

 
	 	 	 	 	

	 	 	 	 	Name:	 	 
	 	 	 	 	Title:	 	 

S-21

 

	 	 	ING CAPITAL LLC, as a U.S. Lender
	

 	
 	

By:	
 	

/s/  RONALD E.E. SCHERPENHUIJSEN ROM      

	 	 	 	 	Name:	 	Ronald E.E. Scherpenhuijsen Rom
	 	 	 	 	Title:	 	Managing Director

S-22

 

	 	 	J.P. MORGAN BANK CANADA, successor to The Chase Manhattan Bank of Canada, as Canadian Administrative Agent
	

 	
 	

By:	
 	

/s/  CHRISTINE CHAN      

	 	 	 	 	Name:	 	Christine Chan
	 	 	 	 	Title:	 	Vice President
	

 	
 	

By:	
 	

 	
 	

 
	 	 	 	 	

	 	 	 	 	Name:	 	 
	 	 	 	 	Title:	 	 

S-23

 

	 	 	JPMORGAN CHASE BANK, TORONTO BRANCH, as a Canadian Lender
	

 	
 	

By:	
 	

/s/  CHRISTINE CHAN      

	 	 	 	 	Name:	 	Christine Chan
	 	 	 	 	Title:	 	Vice President
	

 	
 	

By:	
 	

 	
 	

 
	 	 	 	 	

	 	 	 	 	Name:	 	 
	 	 	 	 	Title:	 	 

S-24

 

	 	 	BANK OF MONTREAL, as Canadian Syndication Agent and as a Canadian Lender
	

 	
 	

By:	
 	

/s/  JAMES V. DUCOTE      

	 	 	 	 	Name:	 	James V. Ducote
	 	 	 	 	Title:	 	Director

S-25

 

	 	 	THE TORONTO-DOMINION BANK, as Canadian Documentation Agent and as a Canadian Lender
	

 	
 	

By:	
 	

/s/  DEBBI L. BRITO      

	 	 	 	 	Name:	 	Debbi L. Brito
	 	 	 	 	Title:	 	Asst Mgr, Credit Administration & Compliance.

S-26

 

	 	 	BANK OF AMERICA CANADA, as a Canadian Lender
	

 	
 	

By:	
 	

/s/  RICHARD L. STEIN      

	 	 	 	 	Name:	 	Richard L. Stein
	 	 	 	 	Title:	 	Principal

S-27

QuickLinks

Exhibit 4.18

THIRD AMENDMENT TO COMBINED CREDIT AGREEMENTS

W I T N E S S E T H

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