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  Exhibit 10.11    
    

 
 

  EMPLOYMENT AGREEMENT    
    

        This Employment Agreement ("Agreement") is entered into effective as of March 28, 2007 by and between Venoco, Inc., a
Delaware corporation ("Company"), and Edward J. O'Donnell ("Employee"). 

        WHEREAS,
the Company desires to employ Employee as a Senior Vice President and Employee desires to accept such employment; 

        NOW,
THEREFORE, in consideration of the mutual covenants, representations, warranties, and agreements contained herein, and for other valuable consideration, the receipt and adequacy of
which are hereby acknowledged, the parties agree as follows: 

        1.    Employment.    The Company hereby employs Employee and Employee hereby accepts employment by the Company,
effective March 28, 2007 as a Senior Vice President on the terms and conditions set forth in this Agreement. 

        2.    Term of Employment.    Subject to the provisions for earlier termination provided in the Agreement, the term of
this Agreement (the "Term") shall commence on the effective date of this Agreement as stated above and shall terminate on December 31, 2008; provided,
however, commencing on January 1, 2008 and on each January 1 thereafter, the term of this Agreement shall automatically be extended one additional year unless,
not later than September 30 of the preceding year, the Board of Directors of the Company (the "Board") shall give written notice to Employee that the Term of the Agreement shall cease to be so
extended; provided, further, that if a Change in Control, as defined in Section 8, shall have occurred during the original or extended Term of
this Agreement, the Term shall continue in effect for a period of not less than 36 months beyond the date of such Change in Control. In no event, however, shall the Term of this Agreement
extend beyond the end of the calendar month in which Employee's 65th birthday occurs. Notwithstanding any provision of this Agreement to the contrary, termination of this Agreement shall not
alter or impair any rights or benefits of Employee (or Employee's estate or beneficiaries) that have arisen under this Agreement on or prior to such termination, including, without limitation, the
provisions of Sections 9(c), 15 and 18. 

        3.    Employee's Duties.    During the Term of this Agreement, Employee shall serve as a Senior Vice President of the
Company, based in Carpinteria, California, and with such customary duties and responsibilities as may from time to time be assigned to him by the Chief Executive Officer, President, Chief Operating
Officer and the Board, provided that such duties are at all times consistent with the duties of such position. 

        Employee
agrees to devote reasonable attention and time during normal business hours to the business and affairs of the Company and, to the extent necessary to discharge the duties and
responsibilities assigned to Employee hereunder, to use reasonable best efforts to perform faithfully and efficiently such duties and responsibilities. 

        4.    Base Compensation.    For services rendered by Employee under this Agreement, the Company shall pay to Employee
a base salary ("Base Compensation") of $227,000 per annum, payable in accordance with the Company's customary payroll practice for its executive officers. The amount of Base Compensation shall be
reviewed periodically and may be increased to reflect inflation or such other adjustments as the Board may deem appropriate but Base Compensation, as increased, may not be decreased thereafter. 

        5.    Signing Bonus/Annual Bonuses.    Employee shall be paid a signing bonus of $30,000 on or before April 2,
2007. Employee shall be eligible to participate in the Company's incentive compensation plan; under which cash bonuses are paid to employees based upon the performance of both the Company and the
employee. The target annual bonus for the position of Senior Vice President shall be 

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40%
of Base Compensation. The annual bonus award will be determined by the Company's Compensation Committee each year for performance during the prior year and paid on April 1 of the
year in which it is determined. The amount of the bonus shall be based on performance of the Employee and the Company as measured against goals established by the Compensation Committee. 

        6.    Restricted Stock/Stock Options.    

        (a)   Upon
final approval of the Company's 2007 Long Term Incentive Program, Employee shall be granted 7000 shares of restricted stock, with vesting subject to achievement of
performance goals as determined by Compensation Committee which in no event shall be less favorable than the vesting conditions applicable to other senior executives of the Company. 

        (b)   On
August 26, 2005 Employee, in his capacity as a director of the Company, was granted options on 45,000 shares of Company stock at an exercise price of $10.67
per share, with vesting to occur over a four year period (the "Director Options"). As of the effective date Employee shall resign from the Board of Directors of the Company and unvested Director
Options shall be deemed vested. Pursuant to the award agreement for the Director Options, Employee shall have until March 27, 2009 to exercise Director Options. If on March 26, 2009 any
Director Options remain unexercised Employee shall be issued new options on such date in an amount equivalent to the number of unexercised options as of that date, as may have been adjusted for stock
splits (the "Replacement Options"). The granting of Replacement Options shall not affect Employee's right to exercise expiring Director Options on March 27, 2009. The Replacement Options shall
be fully vested on the date of grant. The exercise price for the Replacement Options shall be the greater of the closing price of the Company's stock on the day preceding the date of the grant
(March 25, 2009) or $10.67 (as adjusted for stock splits). The exercise period for the Replacement Options shall terminate on August 25, 2015. 

        7.    Additional Benefits.    In addition to the other compensation and benefits provided for in this Agreement,
Employee shall be entitled to receive all fringe benefits and perquisites offered by the Company to its executive officers. Such benefits shall include, without limitation, four weeks paid vacation
per year; participation in the Company's 401(k) Plan; participation in other incentive and benefit plans offered generally to key employees; participation in various employee benefit plans or programs
provided to the employees of the Company in general, subject to the regular eligibility requirements with respect to each of such benefit plans or programs; and such other benefits or perquisites as
may be approved by the Board during the Term of this Agreement. In addition, Employee shall be entitled to receive mortgage assistance in the amount of $2050.00 per month commencing on April 1,
2007 and continuing for the first 24 months of this Agreement. Nothing in this paragraph shall be deemed to prohibit the Company from making any changes in any plans, programs or benefits
described in this Section 7, provided the change similarly affects all executives of the Company similarly situated. 

        8.    Change in Control.    

        For
purposes of this Agreement, a "Change in Control" shall mean the occurrence of one of the following events: 

          (i)  Any
"person" (as such term is used in Section 13(d) and 14(d) of the Exchange Act) other than Timothy M. Marquez, Bernadette B. Marquez, their respective legal
representatives, devisees, donees and heirs and any Trust for the benefit of either or both of Timothy M. Marquez and Bernadette B. Marquez and/or the issue of either of them (the "Marquez Family")
becomes a "beneficial owner" (as defined in Rule 13d-3 under the Securities Exchange Act of 1934), directly or indirectly, of securities of the Company representing more than 50% of
the combined voting power of the Company's then outstanding securities, or the outstanding securities of a successor entity in the event of a business combination between the Company and another
entity; provided 

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that
for purposes of this paragraph a "person" shall not include the entity with which the Company may consummate a business combination; 

         (ii)  the
stockholders of the Company approve a plan of complete liquidation of the Company or an agreement for the sale or disposition by the Company of all or substantially
all of the Company's assets. For purposes of this clause (ii), the term "the sale or disposition by the Company of all or substantially all of the Company's assets" shall mean a sale or other
disposition transaction or series of related transactions (other than transactions related to the creation of a master limited partnership or royalty trust in which the Company continues its corporate
existence), involving assets of the Company or of any direct or indirect subsidiary of the Company (including the stock of any direct or indirect subsidiary of the Company) in which the value of the
assets or stock being sold or otherwise disposed of (as measured by the purchase price being paid therefor or by such other method as the Board determines is appropriate in a case where there is no
readily ascertainable purchase price) constitutes more than two-thirds of the "fair market value of the Company" (as hereinafter defined). For purposes of the preceding sentence, the "fair
market value of the Company" shall be the aggregate market value of the Company's outstanding common stock (on a fully diluted basis) plus the aggregate market value of the Company's other outstanding
equity securities. The aggregate market value of the Company's equity securities shall be determined by multiplying the number of shares of the Company's common stock (on a fully diluted basis)
outstanding on the date of the execution and delivery of a definitive agreement with respect to the transaction or series of related transactions (the "Transaction Date") by the average closing price
of such security for the ten trading days immediately preceding the Transaction Date, or if not publicly traded, by such other method as the Board shall determine is appropriate; or 

        (iii)  the
Marquez Family is no longer the largest beneficial owner of the Company's outstanding voting securities and Timothy Marquez is no longer the Chief Executive
Officer or Chairman of the Board of Directors of the Company. 

        9.    Termination.    This Agreement may be terminated prior to the end of its Term as set forth below. 

        (a)   Resignation.    Employee may resign, including by reason of retirement, his position at any time. In the event
of such resignation, except in the case of resignation on or following a Change in Control for
Good Reason (as defined below), Employee shall not be entitled to further compensation pursuant to this Agreement. 

        (b)   Death.    If Employee's employment is terminated due to his death, the Company shall pay Employee's
beneficiaries or legal representatives (i) within 15 days, any Base Compensation and vacation pay which had accrued hereunder at the date of Employee's death; and (ii) within
30 days, the same benefits that Employee would receive in the event of Discharge following a Change in Control as described in Section 9(c)(i), below. 

        (c)   Discharge.

          (i)  The
Company may terminate this Agreement and Employee's employment for any reason deemed sufficient by the Company upon notice as provided in Section 12.
However, in the event that Employee's employment is terminated during the Term by the Company on or following a Change in Control and for any reason other than his Misconduct (as defined in
Section 9(c)(ii) below) then: (A) the Company shall pay in a lump sum, in cash, to Employee, within 15 days of the Date of Termination, an amount equal to three times the sum of
(1) Employee's Base Compensation, (2) an amount equal to the highest incentive award paid or payable, as the case may be, to Employee under the Company's Incentive Compensation Plan
during the current year and the three years prior to termination, (3) an amount equal to the amount of contributions that the Company would have made on behalf of Employee 

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under
the Company's 401(k) Plan during the prior year disregarding any limitations on benefits or covered compensation imposed by I.R.C. Sections 401(a)(17), 401(k), 401(m) or 415;
(B) for the 36-month period after such Date of Termination, the Company shall provide or arrange to provide Employee (and Employee's dependents) with group health insurance benefits
substantially similar to those which Employee (and Employee's dependents) were receiving immediately prior to the Notice of Termination, with the Employee charged a monthly premium(s) for such
coverage(s) that does not exceed the premium(s) charged to an active employee for comparable coverage(s); benefits otherwise receivable by Employee pursuant to this clause (B) shall be reduced
to the extent comparable benefits are actually received by Employee (and Employee's dependents) during the 36-month period following Employee's termination, and any such benefits actually
received by Employee shall be reported to the Company (to the extent coverage and/or benefits received under a self-insured health plan of the Company (any successor or affiliate) are
taxable to Employee, the Company shall make Employee "whole" on a net after tax basis); (C) within 30 days of the Date of Termination or, if later, the first date on which such payment
would not subject Employee to suit under Section 16(b) of the Securities Exchange Act of 1934, if applicable, the Company shall offer to pay to Employee for cancellation of all outstanding
stock-based awards then held by Employee on the Date of Termination (collectively, "Awards"), a lump sum amount in cash equal to the sum of the value (with respect to an option or stock appreciation
right, the "spread"; and with respect to restricted stock or phantom stock, the value of an unrestricted share) of all such Awards, calculated, where applicable, as if all corporate performance goals
had been achieved (thus warranting full value of the Award) and in the case where the Company's stock is not publicly traded, using a fair market value on the Date of Termination as determined by an
independent third party
agreeable to the Company and Employee; and (D) within 30 days after the Date of Termination, the Company shall pay to Employee an amount equal to 36 times the excess of (i) the
monthly premium payable immediately prior to the Notice of Termination for life, disability and accident benefits substantially similar to those which employee (and Employee's dependents) were
receiving at such time, over (ii) the aggregate monthly premiums(s) charged to the Executive for such coverage at such time. 

         (ii)  Notwithstanding
the foregoing provisions of this Section 9, in the event Employee is terminated because of Misconduct, the Company shall have no compensation
obligations pursuant to this Agreement after the Date of Termination. As used herein, "Misconduct" means (a) the willful and continued failure by Employee to substantially perform his duties
with the Company (other than any such failure resulting from Employee's incapacity due to physical or mental illness or any such actual or anticipated failure after the issuance of a Notice of
Termination by Employee for Good Reason), after a written demand for substantial performance is delivered to Employee by the Board, which demand specifically identifies the manner in which the Board
believes that Employee has not substantially performed his duties, or (b) the willful engaging by Employee in conduct which is demonstrably and materially injurious to the Company, monetarily
or otherwise. For purposes hereof, no act, or failure to act, on Employee's part shall be deemed "willful" unless done, or omitted to be done, by Employee not in good faith and without reasonable
belief that Employee's action or omission was in the best interest of the Company. Notwithstanding the foregoing, Employee shall not be deemed to have been terminated for Misconduct unless and until
there shall have been delivered to Employee a copy of a resolution duly adopted by the affirmative vote of not less than three-quarters of the entire membership of the Board at a meeting of the Board
called and held for such purpose (after reasonable notice to Employee and an opportunity for Employee, together with Employee's counsel, to be heard before the Board), finding that in the good faith
opinion of the Board Employee was guilty of conduct set forth above and specifying the particulars thereof in detail. 

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        (iii)  If
the Company terminates this Agreement and Employee's employment before the expiration of the Term, other than following a Change in Control and other than for
Misconduct, the Company shall pay in a lump sum, in cash, to Employee within 15 days of the Date of Termination, an amount equal to two times the sum of (1) Employee's Base Compensation
and (2) an amount equal the greater of $90,800 or the highest incentive award paid or payable, as the case may be, during the three years prior to termination. 

        (d)   Disability.

          (i)  If
Employee shall have been absent from the full-time performance of Employee's duties with the Company for six consecutive months as a result of Employee's
incapacity due to physical or mental illness, as determined by Employee's physician, and within 30 days after written Notice of Termination is given by the Company Employee shall not have
returned to the
full-time performance of Employee's duties, Employee's employment may be terminated by the Company for "Disability" and Employee shall upon such termination be entitled to receive the
payments described in Section 9(c)(i) as though Employee has been terminated following a Change in Control. 

         (ii)  If
Employee fails during any period during the Term to perform Employee's full-time duties with the Company as a result of incapacity due to physical or
mental illness, as determined by Employee's physician, Employee shall continue to receive his Base Compensation, together with all compensation payable to Employee under the Company's Long Term
Disability Plan or other similar plan during such period until this Agreement is terminated. 

        (e)   Resignation for Good Reason.    In the event of a Change in Control, Employee shall be entitled to terminate
his employment for Good Reason as defined herein. If Employee terminates his employment for Good Reason, Employee shall be entitled to the compensation and benefits provided in
Paragraph 9(c)(i) hereof. "Good Reason" shall mean (1) the breach of any of the Company's obligations under this Agreement without Employee's express written consent or (2) the
occurrence of any of the following circumstances without Employee's express written consent unless such breach or circumstances are fully corrected prior to the Date of Termination specified in the
Notice of Termination pursuant to Subsection 9(f) given in respect thereof: 

          (i)  the
assignment to Employee of any duties that, in the good faith opinion of Employee, are inconsistent with the position in the Company that Employee held immediately
prior thereto, or an adverse alteration (as determined in good faith by Employee) in the nature or status of Employee's office, title, responsibilities, including reporting responsibilities, or the
conditions of Employee's employment from those in effect immediately prior thereto or a failure to maintain Employee as Senior Vice President; 

         (ii)  a
reduction in Employee's Base Compensation; 

        (iii)  the
failure by the Company to pay to Employee any portion of Employee's current compensation or to pay to Employee any portion of an installment of deferred
compensation under any deferred compensation program of the Company within seven days of the date such compensation is due; 

        (iv)  the
failure by the Company to continue in effect any compensation plan in which Employee participates that is material to Employee's total compensation unless an
equitable arrangement (embodied in an ongoing substitute or alternative plan) has been made with respect to such plan, or the failure by the Company to continue Employee's participation therein (or in
such substitute or alternative plan) on a basis not materially less favorable, both in terms of the amount of benefits provided and the level of Employee's participation relative to other
participants, as existed at the time of the Change in Control; 

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         (v)  the
failure by the Company to continue to provide Employee with benefits substantially similar to those enjoyed by Employee under any of the Company's life insurance,
medical, health and accident, or disability plans in which Employee was participating at the time of this Agreement; the taking of any action by the Company which would directly or indirectly
materially reduce any of such benefits or deprive Employee of any material fringe benefit enjoyed by Employee at the time of this Agreement, or the failure by the Company to provide Employee with the
number of paid vacation days to which Employee is entitled on the basis of years of service with the Company (and its predecessors) in accordance with the Company's normal vacation policy in effect at
the time of the Change in Control; 

        (vi)  the
failure of the Company to obtain a satisfactory agreement from any successor to assume and agree to perform this Agreement, as contemplated in Section 14
hereof; 

       (vii)  requiring
Employee to work anywhere other than the location of the Company's offices in Carpinteria, California except for required travel on the Company's business to
an extent substantially consistent with Employee's business travel obligations immediately prior to the time of the Change in Control; 

      (viii)  the
amendment, modification or repeal of any provision of the Certificate of Incorporation, or the Bylaws of the Company which was in effect immediately prior to time
of this Agreement, if such amendment, modification or repeal would materially adversely effect Employee's right to indemnification by the Company; or 

        (ix)  any
purported termination of Employee's employment that is not effected pursuant to a Notice of Termination satisfying the requirements of Subsection (f) hereof,
which purported termination shall not be effective for purposes of this Agreement. 

        Notwithstanding
anything in this Agreement to the contrary, if Employee's employment with the Company terminates prior to, but within six months of, the date on which a Change in Control
occurs and it is reasonably demonstrated by Employee that such termination of employment was (i) by the Company in connection with or anticipation of the Change in Control or (ii) by
Employee under circumstances which would have constituted Good Reason if the circumstances arose on or after the Change in Control, then, for purposes of this Agreement, Employee shall be deemed to
have continued employment with the Company until the date of the Change in Control and then terminated his employment on such date for Good Reason. 

        Employee's
right to terminate employment pursuant to this subsection shall not be affected by Employee's incapacity due to physical or mental illness. In addition, Employee's continued
employment following any event, act or omission, regardless of the length of such continued employment, shall not constitute Employee's consent to, or a waiver of Employee's rights with respect to,
such event, act or omission constituting a Good Reason circumstance hereunder. 

        (f)    Notice of Termination.    On and after a Change in Control, any purported termination of Employee's employment
by the Company or by Employee shall be communicated by written Notice of Termination to the other party hereto in accordance with Section 12 hereof. For purposes of this Agreement, a "Notice of
Termination" shall mean a notice which shall set forth in reasonable detail the reason for termination of Employee's employment, or in the case of resignation for Good Reason, said notice must specify
in reasonable detail the basis for such resignation. No purported termination which is not effected pursuant to this Section 9(f) shall be effective. 

        (g)   Date of Termination.    "Date of Termination" shall mean the date specified in the Notice of Termination.
Either party may, within 15 days after any Notice of Termination is given, provide notice to the other party pursuant to Section 12 hereof that a dispute exists concerning the
termination. Notwithstanding the pendency of any such dispute, the Company will continue to pay 

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Employee
his full compensation in effect when the notice giving rise to the dispute was given (including, but not limited to, Base Compensation) and continue Employee as a participant in all
compensation, benefit and insurance plans in which Employee was participating when the notice giving rise to the dispute was given, until the dispute is finally resolved in accordance with
Section 18 hereof, but in no event past the expiration date of this Agreement. Any payments and benefits provided during such period of dispute shall not reduce any other payments or benefits
due Employee under this Agreement nor shall Employee be liable to repay the Company for such payments and benefits if it is finally determined the Employee is not entitled to payments under the other
provisions of this Agreement following Employee's termination of employment. 

        (h)   Mitigation.    Except as otherwise provided in Section 9(c)(i) with regard to group health benefits,
Employee shall not be required to mitigate the amount of any payment provided for in this Section 9 by seeking other employment or otherwise, nor shall the amount of any payment or benefit
provided for in this Agreement be reduced by any compensation earned by Employee as a result of employment by another employer, self-employment earnings, by retirement benefits, by offset
against any amount claimed to be owing by Employee to the Company, or otherwise. No amounts payable to Employee under any plan or program of the Company shall reduce or offset any amounts payable to
Employee under this Agreement. 

        (i)    Section 280G.

        (1)   To
provide Employee with adequate protection in connection with his ongoing employment with the Company, this Agreement provides Employee with various benefits in the
event of termination of Employee's employment with the Company. If Employee's employment is terminated following a "change in control" of the Company, within the meaning of Section 280G of the
Internal Revenue Code of 1986, as amended (the "Code"), a portion of those benefits could be characterized as "excess parachute payments" within the meaning of Section 280G of the Code. With
respect to issues related to excess parachute payments, the parties have agreed as set forth herein. 

        (2)   Anything
in this Agreement to the contrary notwithstanding, the payments and distributions by the Company or any other person to or for the benefit of Employee (whether
paid or payable or distributed or distributable pursuant to the terms of this Agreement or otherwise (a "Payment") shall be reduced as provided below if the Company shall determine that (A) the
Payment would be subject to the excise tax imposed by Section 4999 of the Code or any interest or penalties would be incurred by Employee with respect to such excise tax (such excise tax,
together with any such interest and penalties, are hereinafter collectively referred to as the "Excise Tax") and (B) the amount of the Payment that Employee would retain on any
after-tax, present value basis would be increased as a result of such reduction by $5,000 or more. The Employee may by written notice to the Company designate the order in which such
parachute payments will be reduced or modified so that the Excise Tax is eliminated and the Company is not denied any federal income tax deductions for any "parachute payments" because of
Section 280G. 

        (j)    Section 409A.

        (1)   Anything
in this Agreement to the contrary notwithstanding, if (1) on the date of termination of Employee's employment with the Company, any of the Company's
stock is publicly traded on an established securities market or otherwise (within the meaning of Section 409A(a)(2)(B)(i) of the Code) and (2) as a result of such termination, the
Employee would receive any payment that, absent the application of this paragraph 9(j), would be subject to interest and additional tax imposed pursuant to Section 409A(a) of the Code as
a result of the application of Section 409A(2)(B)(i) of the Code, then no such payment shall be payable prior to the date that is the earliest of (i) 6 months after the Employee's
termination 

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date,
(ii) the Employee's death or (iii) such other date as will cause such payment not to be subject to such interest and additional tax. 

        (2)   It
is the intention of the parties that payments or benefits payable under this Agreement not be subject to the additional tax imposed pursuant to Section 409A of
the Code. To the extent such potential payments or benefits could become subject to such Section, the parties shall cooperate to amend this Agreement with the goal of giving Employee the economic
benefits described herein in a manner that does not result in such tax being imposed. 

        10.    Non-exclusivity of Rights.    Nothing in this Agreement shall prevent or limit Employee's
continuing or future participation in any benefit, bonus, incentive or other plan or program provided by the Company or any of its affiliated companies and for which Employee may qualify, nor shall
anything herein limit or otherwise adversely affect such rights as Employee may have under any stock option or other agreements with the Company or any of its affiliated companies. 

        11.    Assignability.    The obligations of Employee hereunder are personal and may not be assigned or delegated by
him or transferred in any manner whatsoever, nor are such obligations subject to involuntary alienation, assignment or transfer. The Company shall have the right to assign this Agreement and to
delegate all rights, duties and obligations hereunder, either in whole or in part, to any parent, affiliate, successor or subsidiary organization or company of the Company, so long as the obligations
of the Company under this Agreement remain the obligations of the Company. 

        12.    Notice.    For the purpose of this Agreement, notices and all other communications provided for in the
Agreement shall be in writing and shall be deemed to have been duly given when delivered or mailed by United States registered mail, return receipt requested, postage prepaid, addressed to the Company
at its principal office address, directed to the attention of the Board with a copy to the Secretary of the Company, and to Employee at Employee's residence address on the records of the Company or to
such other address as either party may have furnished to the other in writing in accordance herewith except that notice of change of address shall be effective only upon receipt. 

        13.    Validity.    The invalidity or unenforceability of any provision of this Agreement shall not affect the
validity or enforceability of any other provision of this Agreement, which shall remain in full force and effect. 

        14.    Successors; Binding Agreement.    

        (a)   The
Company will require any successor (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of the business and/or
assets of the Company to expressly assume and agree to perform this Agreement in the same manner and to the same extent that the Company would be required to perform it if no such succession had taken
place. Failure of the Company to obtain such agreement prior to the effectiveness of any such succession shall be a breach of this Agreement and shall entitle Employee to compensation from the Company
in the same amount and on the same terms as he would be entitled to hereunder if he terminated his employment for Good Reason, except that for purposes of implementing the foregoing, the date on which
any such succession becomes effective shall be deemed the Date of Termination. As used herein, the term "Company" shall include any successor to its business and/or assets as aforesaid which executes
and delivers the Agreement provided for in this Section 14 or which otherwise becomes bound by all terms and provisions of this Agreement by operation of law. 

        (b)   This
Agreement and all rights of Employee hereunder shall inure to the benefit of and be enforceable by Employee's personal or legal representatives, executors,
administrators, successors, heirs, distributees, devisees and legatees. If Employee should die while any amounts would be payable to him hereunder if he had continued to live, all such amounts, unless
otherwise provided herein, shall be paid 

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in
accordance with the terms of this Agreement to Employee's devisee, legatee, or other designee or, if there be no such designee, to Employee's estate. 

        15.    Indemnification.    In consideration of the premises and of the mutual agreements set forth in this Agreement,
the parties hereto further agree as follows: 

        (a)   The
Company shall pay on behalf of Employee and Employee's executors, administrators or assigns, any amount which Employee is or becomes legally obligated to pay as a
result of any claim or claims made against Employee by reason of the fact that Employee served as an employee, director and/or officer of the Company or because of any actual or alleged breach of
duty, neglect, error, misstatement, misleading statement, omission or other act done, or suffered or wrongfully attempted by Employee in Employee's capacity as an employee, Director and/or Officer of
the Company. The payments that the Company will be obligated to make hereunder shall include (without limitation) damages, judgments, settlements, costs and expenses of investigation, costs and
expenses of defense of legal actions, claims and proceedings and appeals therefrom, and costs of attachments and similar bonds; provided, however, that
the Company shall not be obligated to pay fines or other obligations or fees imposed by law or otherwise that it is prohibited by applicable law from paying as indemnity or for any other reason. 

        (b)   Costs
and expenses (including, without limitation, attorneys' fees) incurred by Employee in defending or investigating any action, suit, proceeding or claim shall be
paid by the Company in advance of the final disposition of such matter upon receipt of a written undertaking by or on behalf of Employee to repay any such amounts if it is ultimately determined that
Employee is not entitled to indemnification under the terms of this Agreement. 

        (c)   If
a claim under this Agreement is not paid by or on behalf of the Company within ninety days after a written claim has been received by the Company, Employee may at any
time thereafter bring suit against the Company to recover the unpaid amount of the claim and, if successful in whole or in part, Employee shall also be entitled to be paid the expense of prosecuting
such claim. 

        (d)   In
the event of payment under this Agreement, the Company shall be subrogated to the extent of such payment to all of the rights of recovery of Employee, who shall
execute all papers required and shall do everything that may be necessary to secure such rights, including the execution of such documents necessary to enable the Company effectively to bring suit to
enforce such rights. 

        (e)   The
Company shall not be liable under this Agreement to make any payment in connection with any claim made against Employee: 

        (1)   for
which payment is actually made to Employee under an insurance policy maintained by the Company, except in respect of any excess beyond the amount of payment under
such insurance; 

        (2)   for
which Employee is indemnified by the Company otherwise than pursuant to this Agreement; 

        (3)   based
upon or attributable to Employee gaining in fact any personal profit or advantage to which Employee was not legally entitled; 

        (4)   for
an accounting of profits made from the purchase or sale by Employee of securities of the Company within the meaning of Section 16(b) of the Securities
Exchange Act of 1934 and amendments thereto; or 

        (5)   brought
about or contributed to by the dishonesty of Employee; provided, however, that notwithstanding the foregoing,
Employee shall be protected under this Agreement as to 

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any
claims upon which suit may be brought alleging dishonesty on the part of Employee, unless a judgment or other final adjudication thereof adverse to Employee shall establish that Employee committed
acts of active and deliberate dishonesty with actual dishonest purpose and intent, which acts were material to the cause of action so adjudicated. 

        (f)    Employee,
as a condition precedent to his right to be indemnified under this Agreement, shall give to the Company notice in writing as soon as practicable of any claim
made against him for which indemnity will or could be sought under this Agreement. Notice to the Company shall be directed to the Company, Attention: Secretary (or such other address as the Company
shall designate in writing to Employee). Notice shall be deemed received if sent by prepaid mail properly addressed, the date of such notice being the date postmarked. In addition, Employee shall give
the Company such information and cooperation as it may reasonably require and as shall be within Employee's power. 

        (g)   Nothing
herein shall be deemed to diminish or otherwise restrict Employee's right to indemnification under any provision of the Certificate of Incorporation or Bylaws of
the Company or under Delaware law. 

        (h)   During
the Term and for a period of six years thereafter, the Company shall cause Employee to be covered by and named as an insured under a policy or contract of
insurance obtained by it to insure its directors and officers against personal liability for acts or omissions in connection with service as an officer or director of the Company or service in other
capacities at the request of the Company. The coverage provided to Employee pursuant to this Section shall be of a scope and on terms and conditions at least as favorable as the coverage provided to
Employee on the termination date of this Agreement. 

        16.    Miscellaneous.    No provision of this Agreement may be modified, waived or discharged unless such waiver,
modification or discharge is agreed to in writing and signed by Employee and such officer as may be specifically authorized by the Board. No waiver by either party hereto at any time of any breach by
the other party hereto of, or in compliance with, any condition or provision of this Agreement to be performed by such other party shall be deemed a waiver of similar or dissimilar provisions or
conditions at the same or at any prior or subsequent time. This Agreement is an integration of the parties agreement; no agreement or representations, oral or otherwise, express or implied, with
respect to the subject matter hereof have been made by either party which are not set forth expressly in this Agreement. The validity, interpretation, construction and performance of this Agreement
shall be governed by the laws of the State of Delaware. 

        17.    Counterparts.    This Agreement may be executed in one or more counterparts, each of which shall be deemed to
be an original but all of which together will constitute one and the same instrument. 

        18.    Arbitration.    Employee shall be permitted (but not required) to elect that any dispute or controversy arising
under or in connection with this Agreement be settled by arbitration in Denver, Colorado or in the city in which Employee then resides in accordance with the rules of the American Arbitration
Association then in effect. Judgment may be entered on the arbitrator's award in any court having jurisdiction. Reasonable legal fees and costs incurred by Employee in connection with the resolution
of any dispute or controversy under or in connection with this Agreement shall be paid by the Company as bills for such services are presented by Employee to the Company. 

        19.    Prior Agreements.    This agreement supersedes and replaces in full any previously existing employment
agreement (written or oral) between the parties. 

        20.    Knowledge of Terms and Conditions.    Employee has received a copy of this Agreement in advance of his
execution hereof and has consulted with his own attorney with respect to the terms and conditions hereof and the transactions contemplated under this Agreement. Employee has executed this 

10

 

Agreement
with full knowledge of the terms and conditions contained herein and acknowledges that he has had the opportunity to obtain information regarding the Company and concerning the terms and
conditions of this Agreement. In making his decision to enter into this Agreement, Employee has relied solely upon independent investigations he made and acknowledges that he is not relying on the
Company, any affiliate of the Company or any officer, director or employee of the Company for advice with respect to any tax or other economic considerations involved in the transactions contemplated
under this Agreement, including those arising under Section 409A of the Internal Revenue Code of 1986, as amended. 

        IN
WITNESS WHEREOF, the parties have executed this Agreement effective for all purposes as of March 28, 2007. 

					
	 
	 	Venoco, Inc.
	

 	
 	

 	
 	

 
	 
	 	By:	 	/s/ Timothy M. Marquez

  Timothy M. Marquez

Chief Executive Officer
	 
	 	  Employee

	 
	 	 By:
	 	 /s/ Edward J. O'Donnell

  Edward J. O'Donnell

11

QuickLinks

Exhibit 10.11

EMPLOYMENT AGREEMENTExhibit 10.3

 

THIRD AMENDMENT

 

TO

 

FIFTH AMENDED AND RESTATED

SENIOR REVOLVING CREDIT AGREEMENT

 

among

 

PETROHAWK ENERGY CORPORATION,

as the Borrower,

 

BNP PARIBAS,

as Administrative Agent,

 

and

 

THE LENDERS PARTY HERETO

 

 

Dated as of April 29, 2011

 

 

THIRD AMENDMENT TO

FIFTH AMENDED AND RESTATED SENIOR REVOLVING CREDIT AGREEMENT

 

This THIRD AMENDMENT TO FIFTH AMENDED AND RESTATED SENIOR REVOLVING CREDIT AGREEMENT (this “Third Amendment”) executed as of April 29, 2011 is among PETROHAWK ENERGY CORPORATION, a corporation duly formed and existing under the laws of the State of Delaware (the “Borrower”); each of the Guarantors signatory hereto (the “Guarantors”); each of the Lenders from time to time party hereto; and BNP PARIBAS (in its individual capacity, “BNP Paribas”), as administrative agent for the Lenders (in such capacity, together with its successors in such capacity, the “Administrative Agent”).

 

Recitals

 

A.                                   The Borrower, the Administrative Agent, the other Agents and Lenders named and defined therein as lenders and agents, are parties to that certain Fifth Amended and Restated Senior Revolving Credit Agreement dated as of August 2, 2010, as amended by the First Amendment to Fifth Amended and Restated Senior Revolving Credit Agreement, dated as of November 8, 2010, and by the Second Amendment to Fifth Amended and Restated Senior Revolving Credit Agreement, dated as of December 22, 2010, pursuant to which such lenders and agents provided certain loans and extensions of credit to the Borrower (as amended, the “Credit Agreement”).

 

B.                                     The Borrower has requested, and the Borrower, the Administrative Agent and the Lenders have agreed to amend certain provisions of the Credit Agreement.

 

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 which is defined in the Credit Agreement, but which is not defined in this Third Amendment, shall have the meaning ascribed such term in the Credit Agreement.  Unless otherwise indicated, all section references in this Third Amendment refer to sections in the Credit Agreement.

 

Section 2.                             Amendments to Credit Agreement.

 

2.1                                 Certain Defined Terms.  The following defined terms in Section 1.02 are hereby amended and restated, or added, in their entirety as follows:

 

“‘Agreement’ means this Fifth Amended and Restated Senior Revolving Credit Agreement, as amended by the First Amendment to Fifth Amended and Restated Senior Revolving Credit Agreement, dated as of November 8, 2010, by the Second Amendment to Fifth Amended and Restated Senior Revolving Credit Agreement, dated as of December 22, 2010 and by the Third Amendment to Fifth Amended and Restated Senior Revolving Credit Agreement, dated as of April 29, 2011, as the same may from time to time be further amended, modified, supplemented or restated.

 

1

 

“Applicable Margin” means, for any day, with respect to any ABR Loan or Eurodollar Loan, or with respect to the Commitment Fee Rate, as the case may be, the rate per annum set forth in the Borrowing Base Utilization Grid below based upon the Borrowing Base Utilization Percentage then in effect:

 

	
Borrowing Base
   Utilization Percentage
    	
 
    	
<25%
    	
 
    	
325%
 <50%
    	
 
    	
350%
 <75%
    	
 
    	
375%
 <90%
    	
 
    	
390%
    	
 
    
	
LIBOR Margin
    	
 
    	
1.50
    	
%
    	
1.75
    	
%
    	
2.00
    	
%
    	
2.25
    	
%
    	
2.50
    	
%
    
	
ABR Margin
    	
 
    	
0.50
    	
%
    	
0.75
    	
%
    	
1.00
    	
%
    	
1.25
    	
%
    	
1.50
    	
%
    
	
Commitment Fee Rate
    	
 
    	
0.375
    	
%
    	
0.375
    	
%
    	
0.50
    	
%
    	
0.50
    	
%
    	
0.50
    	
%
    

 

Each change in the Applicable Margin 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, provided, however, that if at any time the Borrower fails to deliver a Reserve Report pursuant to Section 8.12(a), then the “Applicable Margin” means the rate per annum set forth on the grid when the Borrowing Base Utilization Percentage is at its highest level.

 

“Commitment Fee Rate” has the meaning set forth in the definition of “Applicable Margin”.

 

“Interest Expense” means, for any period, the sum (determined without duplication) of the aggregate of (a) all cash dividends paid on the Borrower’s preferred Equity Interests and (b) gross interest expense of the Borrower and the Consolidated Restricted Subsidiaries for such period, including to the extent included in interest expense under GAAP:  (i) capitalized interest and (ii) the portion of any payments or accruals under Capital Leases allocable to interest expense, plus the portion of any payments or accruals under Synthetic Leases allocable to interest expense whether or not the same constitutes interest expense under GAAP but (c) excluding:  (i) amortization of debt issuance costs, (ii) amortization of original debt issuance discounts and premiums and (iii) costs associated with Permitted Refinancing Debt.

 

“Majority Lenders” means, at any time while no Loans or LC Exposure is outstanding, Lenders having at least fifty-one percent (51%) of the Aggregate Maximum Credit Amounts; and at any time while any Loans or LC Exposure are outstanding, Lenders holding at least fifty-one percent (51%) of the outstanding aggregate principal amount of the Loans or participation interests in Letters of Credit (without regard to any sale by a Lender of a participation in any Loan under Section 12.04(c)).

 

“Maturity Date” means July 1, 2016.

 

2

 

“Super Majority Lenders” means, at any time while no Loans or LC Exposure is outstanding, Lenders having at least sixty-six and two-thirds percent (66-2/3%) of the Aggregate Maximum Credit Amounts; and at any time while any Loans or LC Exposure are outstanding, Lenders holding at least sixty-six and two-thirds percent (66-2/3%) of the outstanding aggregate principal amount of the Loans or participation interests in Letters of Credit (without regard to any sale by a Lender of a participation in any Loan under Section 12.04(c)).

 

2.2                                 Amendment to Section 2.07(b).  Section 2.07(b) is hereby amended by replacing the term “Majority Lenders” in each instance of its use in Section 2.07(b) with the term “Super Majority Lenders”.

 

2.3                                 Amendment to Section 3.05(a).  Section 3.05(a) is hereby amended and restated in its entirety as follows:

 

“Commitment Fees.  The Borrower agrees to pay to the Administrative Agent for the account of each Lender a commitment fee, which shall accrue at the applicable Commitment Fee Rate on the average daily amount of the unused amount of the Commitment of such Lender during the period from and including the date of this Agreement to but excluding the Termination Date, provided that, for purposes of determining the Commitment of a Lender for this Section 3.05(a), each Lender’s Applicable Percentage of the then effective Borrowing Base shall be equal to such Lender’s Applicable Percentage of the sum of (i) the then effective Oil and Gas Borrowing Base and (ii) $100,000,000.  Accrued commitment fees shall be payable in arrears on the last day of March, June, September and December of each year and on the Termination Date, commencing on the first such date to occur after the date hereof.  All commitment fees shall be computed on the basis of a year of 360 days, unless such computation would exceed the Highest Lawful Rate, in which case interest shall be computed on the basis of a year of 365 days (or 366 days in a leap year), and shall be payable for the actual number of days elapsed (including the first day but excluding the last day).”

 

2.4                                 Amendment to Section 8.01(e).  Section 8.01(e) is hereby amended and restated in its entirety as follows:

 

“(e)                            Certificate of Financial Officer — Swap Agreements.  Concurrently with any delivery of any Reserve Report or at such other times as may be reasonably requested by the Administrative Agent, a certificate of a Financial Officer, in form and substance satisfactory to the Administrative Agent, setting forth as of the date of such Reserve Report, a true and complete list of all Swap Agreements of the Borrower and each Restricted Subsidiary, the material terms thereof (including the type, term, effective date, termination date and notional amounts or volumes), the net mark-to-market value therefor, any new credit support agreements relating thereto not listed on Schedule 7.20, any margin required or supplied under any credit support document, and the counterparty to each such agreement.”

 

3

 

2.5                                 Amendment to Section 8.01(n).  Section 8.01(n) is hereby amended and restated in its entirety as follows:

 

“(n)                           Certain Production Information and Lease Operating Statements.  Within sixty (60) days after the end of each fiscal quarter, a report setting forth, for each calendar month during the then current fiscal year to the end of such fiscal quarter on a production date basis, the volume of production and sales attributable to production for which cash activity has been recorded (and the prices at which such sales were made and the revenues derived from such sales) for each such calendar month from the Oil and Gas Properties, and setting forth the related ad valorem, severance and production taxes and lease operating expenses attributable thereto and incurred for each such calendar month.”

 

2.6                                 Amendment to Section 8.13(c).  Section 8.13(c) is hereby amended by replacing the term “Majority Lenders” in Section 8.13(c) with the term “Super Majority Lenders”.

 

2.7                                 Amendment to Section 9.06.  Section 9.06 is hereby amended by replacing each reference to Section 9.05(l) in Section 9.06(b) and Section 9.06(c) with a reference to Section 9.05(m).

 

2.8                                 Amendment to Section 11.03.  Section 11.03 is hereby amended by replacing the parenthetical phrase “(or such other number or percentage of the Lenders as shall be necessary under the circumstances as provided in Section 12.02)” in Section 11.03 with the parenthetical phrase “(or such other number or percentage of Lenders as shall be necessary under the circumstances as provided in Section 2.07(b), Section 5.04(b), Section 8.13(c) or Section 12.02)”.

 

2.9                                 Amendments to Section 12.02(b).

 

(a)                                  Section 12.02(b)(ii) is hereby amended by replacing the term “Majority Lenders” in each instance of its use in Section 12.02(b)(ii) with the term “Super Majority Lenders”.

 

(b)                                 Section 12.02(b)(ix)(B) is hereby amended and restated in its entirety as follows:

 

“(B) the definitions of “Majority Lenders”, “Super Majority Lenders”, “Required Lenders, “Midstream Component” or “Midstream EBITDA”,”

 

2.10                           Amendment to Annex I.  Annex I is hereby amended by deleting such Annex in its entirety and replacing it with Annex I attached hereto.

 

Section 3.                             Increase in Aggregate Maximum Credit Amounts and Adjustment to Borrowing Base.

 

3.1                                 Increase in Aggregate Maximum Credit Amounts and Reallocation of Commitments and Loans.  The Lenders have agreed among themselves, in consultation with the Borrower, to increase the Aggregate Maximum Credit Amounts and Commitments by allowing

 

4

 

each of the Lenders to increase its Maximum Credit Amount.  Subject to the terms of this Third Amendment, the Administrative Agent and the Borrower hereby consent to such increase.  On the Third Amendment Effective Date and after giving effect to such increase, the Maximum Credit Amount and Commitment of each Lender shall be as set forth on Annex I of this Third Amendment which Annex I supersedes and replaces the Annex I to the Credit Agreement.  On the Third Amendment Effective Date, the Administrative Agent shall record the information contained in Annex I attached hereto in the Register required to be maintained by the Administrative Agent pursuant to Section 12.04(b)(iv).

 

3.2                                 Adjustment to Oil and Gas Borrowing Base.  For the period from and including the Third Amendment Effective Date to but excluding the next Redetermination Date, the Oil and Gas Borrowing Base shall be $1,800,000,000.  Notwithstanding the foregoing, the Oil and Gas Borrowing Base may be subject to further adjustments from time to time pursuant to Section 2.07(d), Section 8.13(c) or Section 9.13.

 

Section 4.                             Conditions Precedent.  The effectiveness of this Third Amendment is subject to the receipt by the Administrative Agent of the following documents and satisfaction of the other conditions provided in this Section 4, each of which shall be reasonably satisfactory to the Administrative Agent in form and substance (the date on which such documents are received and conditions satisfied or waived pursuant to the Credit Agreement, the “Third Amendment Effective Date”):

 

4.1                                 The Administrative Agent and the Lenders shall have received all fees and other amounts due and payable on or prior to the Third Amendment Effective Date, including, to the extent invoiced, reimbursement or payment of all out-of-pocket expenses required to be reimbursed or paid by the Borrower hereunder.

 

4.2                                 The Administrative Agent shall have received from the Borrower, each Lender, and each of the Guarantors, counterparts (in such number as may be requested by the Administrative Agent) of this Third Amendment signed on behalf of such Person.

 

4.3                                 The Administrative Agent shall have received from each party thereto duly executed counterparts (in such number as may be requested by the Administrative Agent) of the Security Instruments described in Exhibit A of this Third Amendment.

 

4.4                                 The Administrative Agent shall have received an opinion of (i) Porter & Hedges L.L.P., special counsel to the Borrower, in form and substance reasonably acceptable to the Administrative Agent, and (ii) local counsel in Louisiana in form an substance reasonably satisfactory to the Administrative Agent.

 

4.5                                 No Default or Event of Default shall have occurred and be continuing as of the Third Amendment Effective Date.

 

4.6                                 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 Third Amendment to be effective when it has received documents confirming or certifying, to the

 

5

 

satisfaction of the Administrative Agent, compliance with the conditions set forth in this Section 4 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 5.                             Representations and Warranties; Etc.  The Borrower and each Guarantor hereby affirms:  (a) that as of the date of execution and delivery of this Third Amendment, and after giving effect to the transactions contemplated hereby, 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 (unless made as of a specific earlier date, in which case, was true as of such date); and (b) that after giving effect to this Third Amendment, no Defaults exist under the Loan Documents or will exist under the Loan Documents.

 

Section 6.                             Miscellaneous.

 

6.1                                 Confirmation.  The provisions of the Credit Agreement (as amended by this Third Amendment) shall remain in full force and effect in accordance with its terms following the effectiveness of this Third Amendment.

 

6.2                                 Ratification and Affirmation of Borrower and Guarantors.  The Borrower and Guarantors hereby expressly (a) acknowledge the terms of this Third Amendment, (b) ratify and affirm their obligations under the Loan Documents to which they are a party, (c) acknowledge, renew and extend their continued liabilities under the Guarantee Agreement and the other Security Instruments to which they are a party and agree that their guarantee under the Guarantee Agreement and the other Security Instruments to which they are a party remains in full force and effect with respect to the Indebtedness as amended hereby.

 

6.3                                 Counterparts.  This Third 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.

 

6.4                                 No Oral Agreement.  THIS WRITTEN THIRD AMENDMENT, THE CREDIT AGREEMENT AND THE OTHER LOAN DOCUMENTS EXECUTED IN CONNECTION HEREWITH AND THEREWITH REPRESENT THE FINAL 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.

 

6.5                                 Governing Law.  THIS THIRD AMENDMENT (INCLUDING, BUT NOT LIMITED TO, THE VALIDITY AND ENFORCEABILITY HEREOF) SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF TEXAS.

 

[SIGNATURES BEGIN ON NEXT PAGE]

 

6

 

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

 

	
BORROWER:
    	
 
    	
PETROHAWK ENERGY CORPORATION
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/ Mark J. Mize
    
	
 
    	
 
    	
 
    	
Mark   J. Mize
    
	
 
    	
 
    	
 
    	
Executive   Vice President — Chief Financial
    
	
 
    	
 
    	
 
    	
Officer   and Treasurer
    

 

Third Amendment – Fifth Amended and Restated Senior Revolving Credit Agreement

Signature Page 1

 

	
GUARANTORS:
    	
 
    	
PETROHAWK OPERATING COMPANY
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
P-H ENERGY, LLC
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
HAWK FIELD SERVICES, LLC
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
PETROHAWK PROPERTIES, LP
    
	
 
    	
 
    	
 
    	
By:
    	
P-H Energy, LLC
    
	
 
    	
 
    	
 
    	
 
    	
Its General Partner
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
WINWELL RESOURCES, L.L.C.
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
WSF, INC.
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
KCS RESOURCES, LLC
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
KCS ENERGY SERVICES, INC.
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
MEDALLION CALIFORNIA PROPERTIES COMPANY
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
PROLIQ, INC.
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
ONE TEC, LLC
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
ONE TEC OPERATING, LLC
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
BISON RANCH, LLC
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
HK   TRANSPORTATION, LLC
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
PETROHAWK   HOLDINGS, LLC
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/ Mark J. Mize
    
	
 
    	
 
    	
 
    	
Mark   J. Mize
    
	
 
    	
 
    	
 
    	
Executive   Vice President — Chief Financial
    
	
 
    	
 
    	
 
    	
Officer   and Treasurer
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
BIG   HAWK SERVICES, LLC
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/ Mark J. Mize
    
	
 
    	
 
    	
 
    	
Mark   J. Mize
    
	
 
    	
 
    	
 
    	
Treasurer
    
						

 

Third Amendment – Fifth Amended and Restated Senior Revolving Credit Agreement

Signature Page 2

 

	
 
    	
 
    	
HK ENERGY MARKETING, LLC
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/ Mark J. Mize
    
	
 
    	
 
    	
 
    	
Mark   J. Mize
    
	
 
    	
 
    	
 
    	
Chief   Financial Officer and Treasurer
    

 

Third Amendment – Fifth Amended and Restated Senior Revolving Credit Agreement

Signature Page 3

 

	
ADMINISTRATIVE AGENT:
    	
 
    	
BNP PARIBAS,
    
	
 
    	
 
    	
as   Administrative Agent and Lender
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/ Juan Carlos Sandoval
    
	
 
    	
 
    	
Name:   Juan Carlos Sandoval
    
	
 
    	
 
    	
Title:   Director
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/ Edward Pak
    
	
 
    	
 
    	
Name:   Edward Pak
    
	
 
    	
 
    	
Title:   Director
    

 

Third Amendment – Fifth Amended and Restated Senior Revolving Credit Agreement

Signature Page 4

 

	
CO-SYNDICATION   AGENT:
    	
 
    	
BANK OF MONTREAL, as Co-Syndication
    
	
 
    	
 
    	
Agent   and Lender
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/ James V. Ducote
    
	
 
    	
 
    	
Name:   James V. Ducote
    
	
 
    	
 
    	
Title:   Director
    

 

Third Amendment – Fifth Amended and Restated Senior Revolving Credit Agreement

Signature Page 5

 

	
CO-SYNDICATION   AGENT:
    	
 
    	
BANK OF AMERICA, N.A., as Co-Syndication
    
	
 
    	
 
    	
Agent   and Lender
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/ Jeffrey H. Rathkamp
    
	
 
    	
 
    	
Name:   Jeffrey H. Rathkamp
    
	
 
    	
 
    	
Title:   Managing Director
    

 

Third Amendment – Fifth Amended and Restated Senior Revolving Credit Agreement

Signature Page 6

 

	
CO-DOCUMENTATION   AGENT:
    	
 
    	
JPMORGAN CHASE BANK, N.A., as
    
	
 
    	
 
    	
Co-Documentation   Agent and Lender
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/ Michael A. Kamauf
    
	
 
    	
 
    	
Name:   Michael A. Kamauf
    
	
 
    	
 
    	
Title:   Authorized Officer
    

 

Third Amendment – Fifth Amended and Restated Senior Revolving Credit Agreement

Signature Page 7

 

	
CO-DOCUMENTATION   AGENT:
    	
 
    	
WELLS FARGO BANK, N.A., as
    
	
 
    	
 
    	
Co-Documentation   Agent and Lender
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/ Doug McDowell
    
	
 
    	
 
    	
Name:   Doug McDowell
    
	
 
    	
 
    	
Title:   Director
    

 

Third Amendment – Fifth Amended and Restated Senior Revolving Credit Agreement

Signature Page 8

 

	
LENDERS:
    	
 
    	
BARCLAYS BANK PLC
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/ Allen Huang
    
	
 
    	
 
    	
Name:   Allen Huang
    
	
 
    	
 
    	
Title:   Assistant Vice President
    

 

Third Amendment – Fifth Amended and Restated Senior Revolving Credit Agreement

Signature Page 9

 

	
 
    	
 
    	
ROYAL   BANK OF CANADA
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/ Jay T. Sartain
    
	
 
    	
 
    	
Name:   Jay T. Sartain
    
	
 
    	
 
    	
Title:   Authorized Signatory
    

 

Third Amendment – Fifth Amended and Restated Senior Revolving Credit Agreement

Signature Page 10

 

	
 
    	
 
    	
MORGAN   STANLEY BANK, N.A.
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/ Sherrese Clarke
    
	
 
    	
 
    	
Name:   Sherrese Clarke
    
	
 
    	
 
    	
Title:   Authorized Signatory
    

 

Third Amendment – Fifth Amended and Restated Senior Revolving Credit Agreement

Signature Page 11

 

	
 
    	
MORGAN   STANLEY SENIOR FUNDING, INC.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Sherrese Clarke
    
	
 
    	
Name:   Sherrese Clarke
    
	
 
    	
Title:   Vice President
    

 

Third Amendment – Fifth Amended and Restated Senior Revolving Credit Agreement

Signature Page 12

 

	
 
    	
DEUTSCHE   BANK TRUST COMPANY AMERICAS
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Paul O’Leary
    
	
 
    	
Name:   Paul O’Leary
    
	
 
    	
Title:   Director
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Evelyn Thierry
    
	
 
    	
Name:   Evelyn Thierry
    
	
 
    	
Title:   Director
    

 

Third Amendment – Fifth Amended and Restated Senior Revolving Credit Agreement

Signature Page 13

 

	
 
    	
CREDIT   AGRICOLE CORPORATE AND INVESTMENT BANK
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Darrell Stanley
    
	
 
    	
Name:   Darrell Stanley
    
	
 
    	
Title:   Managing Director
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Sharada Manne
    
	
 
    	
Name:   Sharada Manne
    
	
 
    	
Title:   Director
    

 

Third Amendment – Fifth Amended and Restated Senior Revolving Credit Agreement

Signature Page 14

 

	
 
    	
CREDIT   SUISSE AG, CAYMAN ISLANDS BRANCH
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Karl M. Studer
    
	
 
    	
Name:   Karl M. Studer
    
	
 
    	
Title:   Director
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Vipul Dhadda
    
	
 
    	
Name:   Vipul Dhadda
    
	
 
    	
Title:   Associate
    

 

Third Amendment – Fifth Amended and Restated Senior Revolving Credit Agreement

Signature Page 15

 

	
 
    	
UBS   AG, STAMFORD BRANCH
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Mary E. Evans
    
	
 
    	
Name:   Mary E. Evans
    
	
 
    	
Title:   Associate Director
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Irja R. Otsa
    
	
 
    	
Name:   Irja R. Otsa
    
	
 
    	
Title:   Associate Director
    

 

Third Amendment – Fifth Amended and Restated Senior Revolving Credit Agreement

Signature Page 16

 

	
 
    	
CAPITAL   ONE, N.A.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Wesley Fontana
    
	
 
    	
Name:   Wesley Fontana
    
	
 
    	
Title:   Vice President
    

 

Third Amendment – Fifth Amended and Restated Senior Revolving Credit Agreement

Signature Page 17

 

	
 
    	
ING   CAPITAL LLC
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Charles Hall
    
	
 
    	
Name:   Charles Hall
    
	
 
    	
Title:   Managing Director
    

 

Third Amendment – Fifth Amended and Restated Senior Revolving Credit Agreement

Signature Page 18

 

	
 
    	
MIZUHO   CORPORATE BANK, LTD.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Leon Mo
    
	
 
    	
Name:   Leon Mo
    
	
 
    	
Title:   Authorized Signatory
    

 

Third Amendment – Fifth Amended and Restated Senior Revolving Credit Agreement

Signature Page 19

 

	
 
    	
AMEGY   BANK NATIONAL ASSOCIATION
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Charles W. Patterson
    
	
 
    	
Name:   Charles W. Patterson
    
	
 
    	
Title:   Senior Vice President
    

 

Third Amendment – Fifth Amended and Restated Senior Revolving Credit Agreement

Signature Page 20

 

	
 
    	
CITIBANK,   N.A.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ John Miller
    
	
 
    	
Name:   John Miller
    
	
 
    	
Title:   Attorney-in-Fact
    

 

Third Amendment – Fifth Amended and Restated Senior Revolving Credit Agreement

Signature Page 21

 

	
 
    	
KEYBANK NATIONAL ASSOCIATION
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ David Morris
    
	
 
    	
Name:   David Morris
    
	
 
    	
Title:   Vice President
    

 

Third Amendment – Fifth Amended and Restated Senior Revolving Credit Agreement

Signature Page 22

 

	
 
    	
SUNTRUST   BANK
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Gregory C. Magnuson
    
	
 
    	
Name:   Gregory C. Magnuson
    
	
 
    	
Title:   Vice President
    

 

Third Amendment – Fifth Amended and Restated Senior Revolving Credit Agreement

Signature Page 23

 

	
 
    	
SUMITOMO   MITSUI BANKING CORPORATION
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Masakazu Hasegawa
    
	
 
    	
Name:   Masakazu Hasegawa
    
	
 
    	
Title:   General Manager
    

 

Third Amendment – Fifth Amended and Restated Senior Revolving Credit Agreement

Signature Page 24

 

	
 
    	
THE   BANK OF NOVA SCOTIA
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ John Frazell
    
	
 
    	
Name:   John Frazell
    
	
 
    	
Title:   Director
    

 

Third Amendment – Fifth Amended and Restated Senior Revolving Credit Agreement

Signature Page 25

 

	
 
    	
GOLDMAN   SACHS BANK USA
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Mark Walton
    
	
 
    	
Name:   Mark Walton
    
	
 
    	
Title:   Authorized Signatory
    

 

Third Amendment – Fifth Amended and Restated Senior Revolving Credit Agreement

Signature Page 26

 

	
 
    	
NATIXIS
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Liana Tchernysheva
    
	
 
    	
Name:   Liana Tchernysheva
    
	
 
    	
Title:   Managing Director
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Louis P. Laville, III
    
	
 
    	
Name:   Louis P. Laville, III
    
	
 
    	
Title:   Managing Director
    

 

Third Amendment – Fifth Amended and Restated Senior Revolving Credit Agreement

Signature Page 27

 

	
 
    	
BANK   OF TEXAS, N.A.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Mari Salazar
    
	
 
    	
Name:   Mari Salazar
    
	
 
    	
Title:   Senior Vice President
    

 

Third Amendment – Fifth Amended and Restated Senior Revolving Credit Agreement

Signature Page 28

 

ANNEX I

LIST OF MAXIMUM CREDIT AMOUNTS

 

Aggregate Maximum Credit Amounts

 

	
Name of Lender
    	
 
    	
Applicable
   Percentage
    	
 
    	
Maximum
   Credit Amount
    	
 
    
	
BNP Paribas
    	
 
    	
7.702702635
    	
%
    	
$
    	
192,567,566
    	
 
    
	
Bank of Montreal
    	
 
    	
6.081081081
    	
%
    	
$
    	
152,027,027
    	
 
    
	
Bank of America, N.A.
    	
 
    	
6.081081081
    	
%
    	
$
    	
152,027,027
    	
 
    
	
Barclays Bank PLC
    	
 
    	
6.081081081
    	
%
    	
$
    	
152,027,027
    	
 
    
	
JP Morgan Chase Bank, N.A.
    	
 
    	
6.081081081
    	
%
    	
$
    	
152,027,027
    	
 
    
	
Royal Bank of Canada
    	
 
    	
6.081081081
    	
%
    	
$
    	
152,027,027
    	
 
    
	
Wells Fargo Bank, N.A.
    	
 
    	
6.081081081
    	
%
    	
$
    	
152,027,027
    	
 
    
	
Morgan Stanley Bank, N.A.
    	
 
    	
2.842105263
    	
%
    	
$
    	
71,052,632
    	
 
    
	
Morgan Stanley Senior Funding, Inc.
    	
 
    	
1.894736842
    	
%
    	
$
    	
47,368,421
    	
 
    
	
Deutsche Bank Trust Company Americas
    	
 
    	
5.129919416
    	
%
    	
$
    	
128,247,985
    	
 
    
	
Credit Agricole CIB
    	
 
    	
5.129919416
    	
%
    	
$
    	
128,247,985
    	
 
    
	
Credit Suisse, Cayman Islands Branch
    	
 
    	
4.736842105
    	
%
    	
$
    	
118,421,053
    	
 
    
	
UBS AG, Stamford Branch
    	
 
    	
5.129919416
    	
%
    	
$
    	
128,247,985
    	
 
    
	
Capital One, N.A.
    	
 
    	
4.736842105
    	
%
    	
$
    	
118,421,053
    	
 
    
	
ING Capital, LLC
    	
 
    	
3.157894737
    	
%
    	
$
    	
78,947,368
    	
 
    
	
Mizuho Corporate Bank, Ltd.
    	
 
    	
2.631578947
    	
%
    	
$
    	
65,789,474
    	
 
    
	
Amegy Bank National Association
    	
 
    	
2.157894737
    	
%
    	
$
    	
53,947,368
    	
 
    
	
Citibank, N.A.
    	
 
    	
3.157894737
    	
%
    	
$
    	
78,947,368
    	
 
    
	
KeyBank National Association
    	
 
    	
2.105263158
    	
%
    	
$
    	
52,631,579
    	
 
    
	
SunTrust Bank
    	
 
    	
2.000000000
    	
%
    	
$
    	
50,000,000
    	
 
    
	
Sumitomo Mitsui Banking Corporation
    	
 
    	
2.000000000
    	
%
    	
$
    	
50,000,000
    	
 
    
	
The Bank of Nova Scotia
    	
 
    	
2.000000000
    	
%
    	
$
    	
50,000,000
    	
 
    
	
Goldman Sachs Bank USA
    	
 
    	
2.000000000
    	
%
    	
$
    	
50,000,000
    	
 
    
	
Natixis
    	
 
    	
3.157894737
    	
%
    	
$
    	
78,947,368
    	
 
    
	
Bank of Texas, N.A.
    	
 
    	
1.842105263
    	
%
    	
$
    	
46,052,632
    	
 
    
	
TOTAL
    	
 
    	
100.000000000
    	
%
    	
$
    	
2,500,000,000.00
    	
 
    

 

 

EXHIBIT A

SECURITY INSTRUMENTS

 

1.                                       Mortgage, Fixture Filing, Assignment of As-Extracted Collateral, Security Agreement and Financing Statement dated as of April 28, 2011 and effective as of April 29, 2011 by KCS Resources, LLC, as Mortgagor, for the benefit of BNP Paribas, as Mortgagee and Administrative Agent, on behalf and for the ratable benefit of the Secured Parties (Louisiana).

 

2.                                       Mortgage, Fixture Filing, Assignment of As-Extracted Collateral, Security Agreement and Financing Statement dated as of April 28, 2011 and effective as of April 29, 2011 by Petrohawk Properties, LP, as Mortgagor, for the benefit of BNP Paribas, as Mortgagee and Administrative Agent, on behalf and for the ratable benefit of the Secured Parties (Louisiana).

 

3.                                       Mortgage, Fixture Filing, Assignment of As-Extracted Collateral, Security Agreement and Financing Statement dated as of April 28, 2011 and effective as of April 29, 2011 by Winwell Resources, L.L.C., as Mortgagor, for the benefit of BNP Paribas, as Mortgagee and Administrative Agent, on behalf and for the ratable benefit of the Secured Parties (Louisiana).

 

4.                                       Mortgage, Line of Credit Mortgage, Deed of Trust, Fixture Filing, Assignment of As-Extracted Collateral, Security Agreement and Financing Statement dated as of April 28, 2011 and effective as of April 29, 2011 from Petrohawk Properties, LP, as Mortgagor, to Brian M. Malone, as Trustee for the Benefit of BNP Paribas, as Administrative Agent, and Others (Texas).

 

5.                                       Deed of Trust, Assignment, Security Agreement, Fixture Filing and Financing Statement dated as of April 28, 2011 and effective as of April 29, 2011 from Hawk Field Services, LLC to Brian M. Malone, as Trustee for BNP Paribas, as Administrative Agent, on behalf and for the ratable benefit of the Secured Parties (Texas).

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