Document:

exv10w4

     Exhibit 10.4

EXECUTION

FIFTH AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT

     THIS FIFTH AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT (this “Fifth Amendment”) is
entered into as of June 30, 2009, among QUEST RESOURCE CORPORATION, a Nevada corporation (the
“Borrower”), the Guarantors listed on the signature pages hereto, ROYAL BANK OF CANADA, as
Administrative Agent and Collateral Agent for the Lenders parties to the hereinafter defined Credit
Agreement (in such capacities, the “Administrative Agent” and “Collateral Agent,” respectively),
and as the Lender.

     Reference is made to the Amended and Restated Credit Agreement dated as of July 11, 2008 among
Borrower, the Administrative Agent, the Collateral Agent and the Lender, as amended by that certain
First Amendment to Amended and Restated Credit Agreement dated as of October 24, 2008, Second
Amendment to Amended and Restated Credit Agreement dated as of November 4, 2008, Third Amendment to
Amended and Restated Credit Agreement dated as of January 30, 2009 and Fourth Amendment to Amended
and Restated Credit Agreement dated as of May 29, 2009 (as amended, the “Credit Agreement”).
Unless otherwise defined in this Fifth Amendment, capitalized terms used herein shall have the
meaning set forth in the Credit Agreement; all section, exhibit and schedule references herein are
to sections, exhibits and schedules in the Credit Agreement; and all paragraph references herein
are to paragraphs in this Fifth Amendment.

RECITALS

          The Borrower, Administrative Agent and Lender desire to, among other things, enter into this
Fifth Amendment to amend certain provisions of the Credit Agreement.

     Accordingly, for adequate and sufficient consideration, the parties hereto agree, as follows:

     Paragraph 1. Amendments. Effective as of the Fifth Amendment Effective Date
(hereinafter defined), the Credit Agreement is amended as follows:

     1.1 Definitions. Section 1.01 of the Credit Agreement is amended as follows:

     (a) The following definitions are amended in their entirety to read as follows:

     “Agreement means this Amended and Restated Credit Agreement as amended by the
First Amendment to Credit Agreement, the Second Amendment to Credit Agreement, the
Third Amendment to Credit Agreement, the Fourth Amendment to Credit Agreement and
the Fifth Amendment to Credit Agreement.”

     “Loan Documents means this Agreement, each Term Note, the PIK Note, the Second
PIK Note, the Interest Deferral Note, each of the Collateral Documents, the
Agent/Arranger Fee Letter, each Borrowing Notice, each Letter of Credit Application,
the L/C Terms and Conditions, each Compliance Certificate, the Guaranties, and each
other agreement, document or instrument delivered by any Loan Party from time to
time in connection with this Agreement and the Term Notes.”

Fifth Amendment to Quest

Resource Corporation

Amended and Restated Credit Agreement

1

 

     “Maturity Date means (a) with respect to the Original Term Loan and the PIK
Notes, the Original Term Loan Maturity Date, (b) with respect to the Interest
Deferral Note, September 30, 2009 and (c) with respect to the Additional Term Loan,
the Additional Term Loan Maturity Date.”

     (b) The following definitions are inserted alphabetically into Section 1.01 of the Credit
Agreement:

     “Fifth Amendment Effective Date means June 30, 2009.”

     “Fifth Amendment to Credit Agreement means that certain Fifth Amendment to
Amended and Restated Credit Agreement dated as of June 30, 2009, among the Borrower,
Royal Bank of Canada, as Administrative Agent, Collateral Agent and as the Lender.”

     “Interest Deferral Note means a promissory note of the Borrower dated the Fifth
Amendment Effective Date, in the original principal amount of $862,785.96 and
substantially in the form of Exhibit B-5, attached to the Fifth Amendment evidencing
the obligation of Borrower to pay the amount of deferred interest due and payable on
June 30, 2009, and all renewals and extensions of all or any part thereof.”

     “PIK Notes means collectively the PIK Note and Second PIK Note and all renewals
and extensions of all or any part thereof.”

     “Second PIK Note means a promissory note of the Borrower dated the Fifth
Amendment Effective Date, in the original principal amount of $25,000.00 and
substantially in the form of Exhibit B-4, attached to the Fifth Amendment evidencing
the obligation of Borrower to repay the amendment fee earned in full as of the Fifth
Amendment Effective Date and all renewals and extensions of all or any part
thereof.”

     1.2 Section 2.04(a). Section 2.04(a) of the Credit Agreement is amended in its
entirety to read as follows:

     “(a) Optional Prepayments. The Borrower may, upon delivery of a
Repayment Notice to the Administrative Agent, at any time or from time to time
voluntarily prepay in whole or in part the Term Loan Principal Debt, PIK Notes and
Interest Deferral Note without premium or penalty; provided that (i) such notice
must be received by the Administrative Agent not later than noon, New York time, (A)
three Business Days prior to any date of prepayment of Eurodollar Rate Loans, and
(B) the date of prepayment of Base Rate Loans; (ii) any prepayment of Eurodollar
Rate Loans shall be in a principal amount of $1,000,000 or a whole multiple of
$1,000,000 in excess thereof; and (iii) any prepayment of Base Rate Loans shall be
in a principal amount of $25,000 or a whole multiple of $25,000 in excess thereof.
Each such notice shall specify the date and amount of such prepayment and the
Type(s) of Term Loan to be prepaid. The Administrative Agent will promptly notify
each Lender of its receipt of each such notice, and of such Lender’s Pro Rata Share
of such prepayment. If such notice is given by the Borrower, the Borrower shall
make such prepayment and the payment amount specified in such notice shall be due
and payable on the date specified therein. Any prepayment of a Eurodollar Rate Loan
shall be accompanied by all accrued interest

Fifth Amendment to Quest

Resource Corporation

Amended and Restated Credit Agreement

2

 

thereon, together with any additional amounts required pursuant to Section
3.05.” Each such prepayment shall be applied to the Term Loans, PIK Notes and/or
Interest Deferral Note of the Lenders in accordance with their respective Pro Rata
Share.

     1.3 Section 2.04(b). Section 2.04(b) of the Credit Agreement is amended in its
entirety to read as follows:

     “(b) Mandatory Prepayments-Collateral Deficiency. Except for any
Collateral Deficiency occurring during the fiscal quarters ended December 31, 2008,
March 31, 2009, June 30, 2009 and September 30, 2009, if for any reason a Collateral
Deficiency exists, Borrower shall notify Administrative Agent in writing of such
Collateral Deficiency within five (5) Business Days after becoming aware of such
Collateral Deficiency and indicate in such written notice Borrower’s plan to cure
such Collateral Deficiency. The Collateral Deficiency must be cured on or before
the thirtieth (30th ) day after Borrower becomes aware of such Collateral
Deficiency. To cure such Collateral Deficiency, Borrower may elect to do one or
more of the following:

     (i) repay Original Term Loan Principal Debt in an aggregate amount sufficient
to eliminate such Collateral Deficiency within such thirty (30) day cure period, and

     (ii) pledge additional MLP Units or Oil & Gas Properties owned by the Borrower
or another Loan Party having sufficient Pledged Collateral Market Value, as of the
date of such pledge, to eliminate such Collateral Deficiency.”

     1.4 Section 2.07(c). Section 2.07(c) of the Credit Agreement is amended in its
entirety to read as follows:

     “(c) Interest on each Term Loan shall be due and payable in arrears on each
Interest Payment Date applicable thereto and at such other times as may be specified
herein; provided however, with respect to the $862,785.96 interest payable on the
June 30, 2009 Interest Payment Date, such interest shall be deferred, shall be
evidenced by the Interest Deferral Note and shall not be required to be paid until
September 30, 2009. Interest hereunder shall be due and payable in accordance with
the terms hereof before and after judgment, and before and after the commencement of
any proceeding under any Debtor Relief Law.”

     1.5 Section 2.08. A new Section 2.08(c) is added to the Credit Agreement to read in
its entirety as follows:

     “(c) Fifth Amendment Amendment Fee. On the Fifth Amendment Effective
Date, the Lenders shall have earned in full a $25,000 amendment fee, which is
non-refundable. Instead of paying such fee on such date, the Lenders will allow the
fee to be evidenced by the Second PIK Note. Interest shall accrue on the Second PIK
Note at the Adjusted Base Rate and will be payable at the Maturity Date. The Second
PIK Note may be prepaid at any time without premium or penalty and the Indebtedness
evidenced thereby shall be deemed a Base Rate Loan for purposes of this Agreement
and constitute an Obligation and be entitled to the benefits of the Collateral
Documents.”

Fifth Amendment to Quest

Resource Corporation

Amended and Restated Credit Agreement

3

 

     1.6 Section 6.01(b). Section 6.01(b) of the Credit Agreement is amended to read in its
entirety as follows::

     “(b) as soon as available, but in any event within 45 days after the end of
each of the first three fiscal quarters of each fiscal year of the Borrower, an
unaudited stand alone balance sheet of the Borrower as at the end of such fiscal
quarter, and the related statements of income and cash flows for such fiscal quarter
and for the portion of the Borrower’s fiscal year then ended (provided, that if the
Borrower is a public company, such financial statements shall be required to be
furnished no later than the date that the Borrower is required to timely file its
quarterly report on Form 10-Q with the Securities Exchange Commission (taking into
account any extension of time available under Rule 12b-25 under the Securities
Exchange Act of 1934)), setting forth in each case in comparative form the figures
for the corresponding fiscal quarter of the previous fiscal year of the Borrower and
the corresponding portion of the previous fiscal year of the Borrower, if any, all
in reasonable detail and certified by a Responsible Officer of the Borrower, as
fairly presenting in all material respects the financial condition, results of
operations and cash flows of the Borrower in accordance with GAAP (except as
otherwise noted herein), subject only to normal year-end audit adjustments and the
absence of footnotes and to adjustments or restatements arising out of or related to
the Misappropriation Transaction; provided delivery of the unaudited stand alone
balance sheet, statement of income and cash flows of the Borrower for the fiscal
quarters ending September 30, 2008 and March 31, 2009 may be delayed and not
delivered to the Administrative Agent until August 15, 2009”.

     1.7 Sections 7.17(a) and (b). Sections 7.17(a) and (b) of the Credit Agreement are
amended in their entirety to read as follows:

     “(a) Interest Coverage Ratio. Permit the Interest Coverage Ratio at any fiscal
quarter-end, commencing with the quarter-ended September 30, 2008, to be less than
2.5 to 1.0; provided the foregoing covenant shall be waived for the quarters-ended
December 31, 2008, March 31, 2009 and June 30, 2009.

     (b) Leverage Ratio. Permit the Leverage Ratio at any fiscal quarter-end,
commencing with the quarter-ended September 30, 2008, to be greater than 2.0 to 1.0;
provided the foregoing covenant shall be waived for the quarters-ended December 31,
2008, March 31, 2009 and June 30, 2009.”

     Paragraph 2. Effective Date. This Fifth Amendment shall not become effective until the
date (such date, the “Fifth Amendment Effective Date”) the Administrative Agent receives all of the
agreements, documents, certificates, instruments, and other items described below:

     (a) this Fifth Amendment, executed by the Borrower, the Guarantors, the Administrative and the
Lender;

     (b) payment on the Fifth Amendment Effective Date to the Administrative Agent of a $25,000
amendment fee which fee shall be fully earned and nonrefundable on the Fifth Amendment Effective
Date in the form of a payment-in-kind note (“Second PIK Note”) that shall be paid on the first to
occur of the Maturity Date or the repayment of the Obligations;

Fifth Amendment to Quest

Resource Corporation

Amended and Restated Credit Agreement

4

 

     (c) the Second PIK Note and Interest Deferral Note executed by the Borrower;

     (d) such certificates of resolutions or other action, incumbency certificates and/or other
certificates of officers of Borrower as the Administrative Agent may require to establish the
identities of and verify the authority and capacity of each officer thereof authorized to act in
connection with this Agreement and the other Loan Documents to which such Loan Party is a party;

     (e) fees and expenses required to be paid pursuant to Paragraph 5 of this Fifth Amendment, to
the extent invoiced prior to the Fifth Amendment Effective Date; and

     (f) such other assurances, certificates, documents and consents as the Administrative Agent
may require.

     Paragraph 3. Acknowledgment and Ratification. The Borrower and the Guarantors each (i)
consent to the agreements in this Fifth Amendment and (ii) agree and acknowledge that the
execution, delivery, and performance of this Fifth Amendment shall in no way release, diminish,
impair, reduce, or otherwise affect the respective obligations of the Borrower or any Guarantor
under the Loan Documents to which it is a party, which Loan Documents shall remain in full force
and effect, as amended and waived hereby, and all rights thereunder are hereby ratified and
confirmed.

     Paragraph 4. Representations. The Borrower and the Guarantors each represent and
warrant to the Administrative Agent and the Lender that as of the Fifth Amendment Effective Date
and after giving effect to the waivers and amendments set forth in this Fifth Amendment (a) all
representations and warranties in the Loan Documents are true and correct in all material respects
as though made on the date hereof, except to the extent that any of them speak to a different
specific date, and (b) no Default or Event of Default exists.

     Paragraph 5. Expenses. The Borrower shall pay on demand all reasonable costs, fees,
and expenses paid or incurred by the Administrative Agent incident to this Fifth Amendment,
including, without limitation, Attorney Costs in connection with the negotiation, preparation,
delivery, and execution of this Fifth Amendment and any related documents, filing and recording
costs, and the costs of title insurance endorsements, if any.

     Paragraph 6. Miscellaneous.

          This Fifth Amendment is a “Loan Document” referred to in the Credit Agreement. The provisions
relating to Loan Documents in Article X of the Credit Agreement are incorporated in this Fifth
Amendment by reference. Unless stated otherwise (i) the singular number includes the plural and
vice versa and words of any gender include each other gender, in each case, as appropriate, (ii)
headings and captions may not be construed in interpreting provisions, (iii) this Fifth Amendment
must be construed, and its performance enforced, under New York law and applicable federal law,
and (iv) if any part of this Fifth Amendment is for any reason found to be unenforceable, all other
portions of it nevertheless remain enforceable.

     Paragraph 7. Entire Agreement. This Fifth Amendment represents the final agreement
between the parties about the subject matter of this amendment 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.

Fifth Amendment to Quest

Resource Corporation

Amended and Restated Credit Agreement

5

 

     Paragraph 8. Parties. This Fifth Amendment binds and inures to the benefit of the
Borrower, the Guarantors, the Administrative Agent, the Collateral Agent and the Lender, and their
respective successors and assigns.

     Paragraph 9. Further Assurances. The parties hereto each agree to execute from time to
time such further documents as may be necessary to implement the terms of this Fifth Amendment.

     Paragraph 10. Release. As additional consideration for the execution, delivery and
performance of this Fifth Amendment by the parties hereto and to induce the Administrative Agent,
the Collateral Agent and the Lender to enter into this Fifth Amendment, the Borrower warrants and
represents to the Administrative Agent, the Collateral Agent and the Lender that no facts, events,
statuses or conditions exist or have existed which, either now or with the passage of time or
giving of notice, or both, constitute or will constitute a basis for any claim or cause of action
against the Administrative Agent, the Collateral Agent and the Lender or any defense to (i) the
payment of Obligations under the Term Notes and/or the Loan Documents, or (ii) the performance of
any of its obligations with respect to the Term Notes and/or the Loan Documents. In the event any
such facts, events, statuses or conditions exist or have existed, Borrower unconditionally and
irrevocably hereby RELEASES, RELINQUISHES and forever DISCHARGES Administrative Agent, the
Collateral Agent and the Lender, as well as their predecessors, successors, assigns, agents,
officers, directors, shareholders, employees and representatives, of and from any and all claims,
demands, actions and causes of action of any and every kind or character, past or present, which
Borrower may have against any of them or their predecessors, successors, assigns, agents, officers,
directors, shareholders, employees and representatives arising out of or with respect to (a) any
right or power to bring any claim for usury or to pursue any cause of action based on any claim of
usury, and (b) any and all transactions relating to the Loan Documents occurring prior to the date
hereof, including any loss, cost or damage, of any kind or character, arising out of or in any way
connected with or in any way resulting from the acts, actions or omissions of any of them, and
their predecessors, successors, assigns, agents, officers, directors, shareholders, employees and
representatives, including any breach of fiduciary duty, breach of any duty of fair dealing, breach
of confidence, breach of funding commitment, undue influence, duress, economic coercion, conflict
of interest, negligence, bad faith, malpractice, intentional or negligent infliction of mental
distress, tortious interference with contractual relations, tortious interference with corporate
governance or prospective business advantage, breach of contract, deceptive trade practices, libel,
slander or conspiracy, but in each case only to the extent permitted by applicable Law.

     Paragraph 11. Execution in Counterparts. This Fifth Amendment may be executed in any number of
counterparts (and by different parties hereto in different counterparts), each of which when so
executed shall be deemed to be an original and all of which when taken together shall constitute
one and the same agreement. Delivery of an executed counterpart of a signature page of this Fifth
Amendment by telecopier or other electronic means shall be effective as delivery of a manually
executed counterpart of this Fifth Amendment.

     The parties hereto have executed this Fifth Amendment in multiple counterparts to be effective
as of the Fifth Amendment Effective Date.

Remainder of Page Intentionally Blank

Signature Pages to Follow.

Fifth Amendment to Quest

Resource Corporation

Amended and Restated Credit Agreement

6

 

     IN WITNESS WHEREOF, the parties hereto have caused this Fifth Amendment to be duly executed as
of the Fifth Amendment Effective Date.

	 	 	 	 	 
	 	BORROWER:

QUEST RESOURCE CORPORATION,

as Borrower

 	 
	 	By:  	/s/ David Lawler
 	 
	 	 	David Lawler 	 
	 	 	President 	 
	 

     The undersigned, as the Guarantors referred to in the Credit Agreement, as amended by this
Fifth Amendment, hereby consent to this Fifth Amendment and hereby confirm and agree that (i) the
Loan Documents (which specifically includes the Guaranty executed by each Guarantor and each
Security Agreement and Mortgage executed by each Guarantor) in effect on the date hereof to which
each are a party are, and shall continue to be, in full force and effect and are hereby confirmed
and ratified in all respects except that, upon the effectiveness of, and on and after the Fifth
Amendment Effective Date, all references in such Loan Documents to the Credit Agreement shall mean
the Credit Agreement as amended by this Fifth Amendment, and (ii) such Loan Documents consisting of
Guaranties, Security Agreements, Mortgages, and assignments and all of the collateral described
therein do, and shall continue to, secure the payment by the Borrower of the Obligations under the
Credit Agreement.

	 	 	 	 	 
	 	GUARANTORS:

QUEST OIL & GAS, LLC,

as a Guarantor

 	 
	 	By:  	/s/ David Lawler
 	 
	 	 	David Lawler, 	 
	 	 	President 	 
	 
	 	QUEST ENERGY SERVICE, LLC,

as a Guarantor

 	 
	 	By:  	/s/ David Lawler
 	 
	 	 	David Lawler, 	 
	 	 	President 	 
	 

Fifth Amendment to Quest

Resource Corporation

Amended and Restated Credit Agreement

Signature Page 1

 

	 	 	 	 	 
	 	QUEST EASTERN RESOURCE, LLC,

as a Guarantor

 	 
	 	By:  	/s/ David Lawler
 	 
	 	 	David Lawler, 	 
	 	 	President 	 
	 
	 	QUEST MERGERSUB, INC.

as a Guarantor

 	 
	 	By:  	/s/ David Lawler
 	 
	 	 	David Lawler, 	 
	 	 	President 	 
	 

Fifth Amendment to Quest

Resource Corporation

Amended and Restated Credit Agreement

Signature Page 2

 

	 	 	 	 	 
	 	ADMINISTRATIVE AGENT:

ROYAL BANK OF CANADA,

as Administrative Agent and Collateral Agent

 	 
	 	By:  	/s/ Susan Khokher
 	 
	 	 	Name:  	Susan Khokher 	 
	 	 	Title:  	Manager, Agency 	 
	 

Fifth Amendment to Quest

Resource Corporation

Amended and Restated Credit Agreement

Signature Page 3

 

	 	 	 	 	 
	 	L/C ISSUER AND LENDER:

ROYAL BANK OF CANADA, as a Lender

and L/C Issuer

 	 
	 	By:  	/s/ Leslie P. Vowell
 	 
	 	 	Leslie P. Vowell 	 
	 	 	Attorney-in-Fact 	 
	 

Fifth Amendment to Quest

Resource Corporation

Amended and Restated Credit Agreement

Signature Page 4

 

Exhibit B-4

FORM OF SECOND PIK NOTE

			
	$25,000.00
	 	June 30, 2009

     FOR VALUE RECEIVED, the undersigned (the “Borrower”), hereby promises to pay to the order of
ROYAL BANK OF CANADA (the “Lender”), on the Maturity Date (as defined in the Credit Agreement
referred to below) the principal amount of TWENTY-FIVE THOUSAND AND NO Dollars ($25,000.00) due and
payable by the Borrower to the Lender on the Maturity Date under that certain Amended and Restated
Credit Agreement, dated as of July 11, 2008 (as amended, restated, extended, supplemented or
otherwise modified in writing from time to time, the “Credit Agreement”; the terms defined therein
being used herein as therein defined), among the Borrower, the Lenders from time to time party
thereto, and Royal Bank of Canada, as Administrative Agent and Collateral Agent.

     The Borrower promises to pay interest on the unpaid principal amount of this Second PIK Note
from the date hereof until such principal amount is paid in full, at the Adjusted Base Rate,
payable at maturity. All payments of principal and interest shall be made to the Administrative
Agent for the account of the Lender in Dollars in immediately available funds to the account
designated by the Administrative Agent in the Credit Agreement. If any amount is not paid in full
when due hereunder, such unpaid amount shall bear interest, to be paid upon demand, from the due
date thereof until the date of actual payment (and before as well as after judgment) computed at
the per annum rate set forth in the Credit Agreement.

     This Second PIK Note is the Second PIK Note referred to in the Credit Agreement, is entitled
to the benefits thereof and is subject to optional prepayment in whole or in part as provided
therein. This Second PIK Note is also entitled to the benefits of each Subsidiary Guaranty. Upon
the occurrence of one or more of the Events of Default specified in the Credit Agreement, all
amounts then remaining unpaid on this Second PIK Note shall become, or may be declared to be,
immediately due and payable all as provided in the Credit Agreement. The Loan evidenced by this
Second PIK Note shall be evidenced by one or more loan accounts or records maintained by the Lender
in the ordinary course of business. The Lender may also attach schedules to this Second PIK Note
and endorse thereon the date, amount and maturity of its Loans hereunder and payments with respect
thereto.

     This Second PIK Note is a Loan Document and is subject to Section 10.10 of the Credit
Agreement, which is incorporated herein by reference the same as if set forth herein verbatim.

     The Borrower, for itself, its successors and assigns, hereby waives diligence, presentment,
protest and demand and notice of protest, notice of intent to accelerate, notice of acceleration,
demand, dishonor and non-payment of this Second PIK Note.

Fifth Amendment to Quest

Resource Corporation

Amended and Restated Credit Agreement

Exhibit B-4 Page 1

 

     THIS SECOND PIK NOTE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE
STATE OF NEW YORK.

	 	 	 	 	 
	 	QUEST RESOURCE CORPORATION,

a Nevada corporation, as Borrower

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Fifth Amendment to Quest

Resource Corporation

Amended and Restated Credit Agreement

Exhibit B-4 Page 2

 

Exhibit B-5

FORM OF INTEREST DEFERRAL NOTE

			
	$862,785.96
	 	June 30, 2009

     FOR VALUE RECEIVED, the undersigned (the “Borrower”), hereby promises to pay to the order of
ROYAL BANK OF CANADA (the “Lender”), on September 30, 2009 the principal amount of EIGHT HUNDRED
SIXTY-TWO THOUSAND SEVEN HUNDRED EIGHTY-FIVE AND 96/100 Dollars ($862,785.96) due and payable by
the Borrower to the Lender on such date under that certain Amended and Restated Credit Agreement,
dated as of July 11, 2008 (as amended, restated, extended, supplemented or otherwise modified in
writing from time to time, the “Credit Agreement”; the terms defined therein being used herein as
therein defined), among the Borrower, the Lenders from time to time party thereto, and Royal Bank
of Canada, as Administrative Agent and Collateral Agent.

     The Borrower promises to pay interest on the unpaid principal amount of this Interest Deferral
Note from the date hereof until such principal amount is paid in full, at the Adjusted Base Rate,
payable September 30, 2009. All payments of principal and interest shall be made to the
Administrative Agent for the account of the Lender in Dollars in immediately available funds to the
account designated by the Administrative Agent in the Credit Agreement. If any amount is not paid
in full when due hereunder, such unpaid amount shall bear interest, to be paid upon demand, from
the due date thereof until the date of actual payment (and before as well as after judgment)
computed at the per annum rate set forth in the Credit Agreement.

     This Interest Deferral Note is the Interest Deferral Note referred to in the Credit Agreement,
is entitled to the benefits thereof and is subject to optional prepayment in whole or in part as
provided therein. This Interest Deferral Note is also entitled to the benefits of each Subsidiary
Guaranty. Upon the occurrence of one or more of the Events of Default specified in the Credit
Agreement, all amounts then remaining unpaid on this Interest Deferral Note shall become, or may be
declared to be, immediately due and payable all as provided in the Credit Agreement. The Loan
evidenced by this Interest Deferral Note shall be evidenced by one or more loan accounts or records
maintained by the Lender in the ordinary course of business. The Lender may also attach schedules
to this Interest Deferral Note and endorse thereon the date, amount and maturity of its Loans
hereunder and payments with respect thereto.

     This Interest Deferral Note is a Loan Document and is subject to Section 10.10 of the Credit
Agreement, which is incorporated herein by reference the same as if set forth herein verbatim.

     The Borrower, for itself, its successors and assigns, hereby waives diligence, presentment,
protest and demand and notice of protest, notice of intent to accelerate, notice of acceleration,
demand, dishonor and non-payment of this Interest Deferral Note.

Fifth Amendment to Quest

Resource Corporation

Amended and Restated Credit Agreement

Exhibit B-5 Page 1

 

     THIS INTEREST DEFERRAL NOTE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF
THE STATE OF NEW YORK.

	 	 	 	 	 
	 	QUEST RESOURCE CORPORATION,

a Nevada corporation, as Borrower

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Fifth Amendment to Quest

Resource Corporation

Amended and Restated Credit Agreement

Exhibit B-5 Page 2exv10w5

Exhibit 10.5

EXECUTION

FOURTH AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT

     THIS FOURTH AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT (this “Fourth Amendment”) is
entered into as of June 30, 2009 among QUEST CHEROKEE, LLC, a Delaware limited liability company
(the “Borrower”), QUEST ENERGY PARTNERS, L.P., a Delaware limited partnership (the “MLP”), QUEST
CHEROKEE OILFIELD SERVICE, LLC, a Delaware limited liability company (“QCOS”, QCOS and MLP
collectively called the “Guarantors” and individually a “Guarantor”), ROYAL BANK OF CANADA, as
Administrative Agent and Collateral Agent for the Lenders parties to the hereinafter defined Credit
Agreement (in such capacities, the “Administrative Agent” and “Collateral Agent,” respectively),
KEYBANK NATIONAL ASSOCIATION, as Documentation Agent, and the undersigned Lenders comprising
Required Lenders.

     Reference is made to the Amended and Restated Credit Agreement dated as of November 15, 2007
among Borrower, the Administrative Agent, the Collateral Agent and the Lenders parties thereto, as
amended by a First Amendment to Amended and Restated Credit Agreement dated as of April 15, 2008, a
Second Amendment to Amended and Restated Credit Agreement dated as of October 28, 2008 and a
Third Amendment to Amended and Restated Credit Agreement dated as of May 29, 2009 (as amended,
the “Credit Agreement”). Unless otherwise defined in this Fourth Amendment, capitalized terms used
herein shall have the meaning set forth in the Credit Agreement; all section, exhibit and schedule
references herein are to sections, exhibits and schedules in the Credit Agreement; and all
paragraph references herein are to paragraphs in this Fourth Amendment.

RECITALS

     A. The Borrower, Administrative Agent and Lenders desire to enter into this Fourth Amendment.

     Accordingly, for adequate and sufficient consideration, the parties hereto agree, as follows:

     Paragraph 1. Amendments. Effective as of the Fourth Amendment Effective Date
(hereinafter defined), the Credit Agreement is amended as follows:

     1.1 Definitions. Section 1.01 of the Credit Agreement is amended as follows:

     (a) The following definition is amended in its entirety to read as follows:

     “Agreement means this Amended and Restated Credit Agreement as amended by the
First Amendment to Credit Agreement, the Second Amendment to Credit Agreement, the
Third Amendment to Credit Agreement and the Fourth Amendment to Credit Agreement.”

     (b) The following definitions are inserted alphabetically into Section 1.01 of the Credit
Agreement:

          “Fourth Amendment Effective Date means June 30, 2009.”

Fourth Amendment to Quest

Cherokee Amended and

Restated Credit Agreement

1

 

     “Fourth Amendment to Credit Agreement means that certain Fourth Amendment to
Amended and Restated Credit Agreement dated as of June 30, 2009, among the Borrower,
Royal Bank of Canada, as Administrative Agent, Collateral Agent and as a Lender,
KeyBank National Association, as Documentation Agent and the Lenders party thereto
comprising Required Lenders.”

     1.2 Section 6.02(b). Section 6.02(b) of the Credit Agreement is amended to
read in its entirety as follows:

     “(b) as soon as available, but in any event within 45 days after the end of
each of the first three fiscal quarters of each fiscal year of the MLP, an unaudited
consolidated balance sheet of the MLP and its Subsidiaries as at the end of such
fiscal quarter, and the related statements of income and cash flows for such fiscal
quarter and for the portion of the MLP’s fiscal year then ended (provided, that if
the MLP is a public company, such financial statements shall be required to be
furnished no later than the date that the MLP is required to timely file its
quarterly report on Form 10-Q with the Securities Exchange Commission (taking into
account any extension of time available under Rule 12b-25 under the Securities
Exchange Act of 1934)), setting forth in each case in comparative form the figures
for the corresponding fiscal quarter of the previous fiscal year of the MLP and the
corresponding portion of the previous fiscal year of the MLP, if any, all in
reasonable detail and certified by a Responsible Officer of the Borrower, as fairly
presenting in all material respects the financial condition, results of operations
and cash flows of the MLP and its Subsidiaries in accordance with GAAP (except as
otherwise noted herein), subject only to normal year-end audit adjustments and the
absence of footnotes and to adjustments or restatements arising out of or related to
the Misappropriation Transaction; provided, delivery of the unaudited balance sheet,
statement of income and cash flows of the MLP and its Subsidiaries for the fiscal
quarters ending September 30, 2008 and March 31, 2009 may be delayed and not
delivered to the Administrative Agent until August 15, 2009;”

     Paragraph 2. Effective Date. This Fourth Amendment shall not become effective until
the date (such date, the “Fourth Amendment Effective Date”) the Administrative Agent receives all
of the agreements, documents, certificates, instruments, and other items described below:

     (a) this Fourth Amendment, executed by the Borrower, the Guarantors, the Administrative and
the Required Lenders;

     (b) from the Borrower and the existing Guarantors, such certificates of secretary, assistant
secretary, manager, or general partner, as applicable, as the Administrative Agent may require,
certifying (i) resolutions of its board of directors, managers or members (or their equivalent)
authorizing the execution and performance of this Fourth Amendment and the other Loan Documents
which such Person is executing in connection herewith, (ii) the incumbency and signature of the
officer executing such documents, and (iii) no change in such Person’s organizational documents
since November 15, 2007, other than the Amendment No. 1 to the Partnership Agreement (MLP)
effective as of January 1, 2008;

     (c) payment on the Fourth Amendment Effective Date to the Administrative Agent of a
$185,000.00 amendment fee which fee will be shared ratably among each Lender timely approving the
Fourth Amendment, which fee once paid will be fully earned and nonrefundable (as used in this
Fourth

Fourth Amendment to Quest

Cherokee Amended and

Restated Credit Agreement

2

 

Amendment, ratably shared means that proportion which the Borrowing Base of a timely approving
Lender bears to the Borrowing Base of all timely approving Lenders);

     (d) fees and expenses required to be paid pursuant to Paragraph 5 of this Fourth Amendment, to
the extent invoiced prior to the Fourth Amendment Effective Date; and

     (e) such other assurances, certificates, documents and consents as the Administrative Agent
may require.

     Paragraph 3. Acknowledgment and Ratification. The Borrower and the Guarantors each (i)
consent to the agreements in this Fourth Amendment and (ii) agree and acknowledge that the
execution, delivery, and performance of this Fourth Amendment shall in no way release, diminish,
impair, reduce, or otherwise affect the respective obligations of the Borrower or any Guarantor
under the Loan Documents to which it is a party, which Loan Documents shall remain in full force
and effect, as amended and waived hereby, and all rights thereunder are hereby ratified and
confirmed.

     Paragraph 4. Representations. The Borrower and the Guarantors each represent and
warrant to the Administrative Agent and the Lenders that as of the Fourth Amendment Effective Date
and after giving effect to the waivers and amendments set forth in this Fourth Amendment (a) all
representations and warranties in the Loan Documents are true and correct in all material respects
as though made on the date hereof, except to the extent that any of them speak to a different
specific date, and (b) no Default or Event of Default exists.

     Paragraph 5. Expenses. The Borrower shall pay on demand all reasonable costs, fees,
and expenses paid or incurred by the Administrative Agent incident to this Fourth Amendment,
including, without limitation, Attorney Costs in connection with the negotiation, preparation,
delivery, and execution of this Fourth Amendment and any related documents, filing and recording
costs, and the costs of title insurance endorsements, if any.

     Paragraph 6. Miscellaneous.

     (a) This Fourth Amendment is a “Loan Document” referred to in the Credit Agreement. The
provisions relating to Loan Documents in Article X of the Credit Agreement are incorporated in this
Fourth Amendment by reference. Unless stated otherwise (i) the singular number includes the plural
and vice versa and words of any gender include each other gender, in each case, as appropriate,
(ii) headings and captions may not be construed in interpreting provisions, (iii) this Fourth
Amendment will be construed, and its performance enforced, under New York law and applicable
federal law, (iv) if any part of this Fourth Amendment is for any reason found to be unenforceable,
all other portions of it nevertheless remain enforceable, and (v) this Fourth Amendment may be
executed in any number of counterparts with the same effect as if all signatories had signed the
same document, and all of those counterparts must be construed together to constitute the same
document.

     Paragraph 7. Entire Agreement. This Fourth amendment represents the final
agreement between the parties about the subject matter of this amendment 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.

Fourth Amendment to Quest

Cherokee Amended and

Restated Credit Agreement

3

 

     Paragraph 8. Parties. This Fourth Amendment binds and inures to the benefit of the
Borrower, the Guarantors, the Administrative Agent, the Collateral Agent, the Documentation Agent,
the Lenders, and their respective successors and assigns.

     Paragraph 9. Further Assurances. The parties hereto each agree to execute from time to
time such further documents as may be necessary to implement the terms of this Fourth Amendment.

     Paragraph 10. Release. As additional consideration for the execution, delivery and
performance of this Fourth Amendment by the parties hereto and to induce the Administrative Agent,
the Collateral Agent and the Lenders to enter into this Fourth Amendment, the Borrower warrants and
represents to the Administrative Agent, the Collateral Agent and the Lenders that no facts, events,
statuses or conditions exist or have existed which, either now or with the passage of time or
giving of notice, or both, constitute or will constitute a basis for any claim or cause of action
against the Administrative Agent, the Collateral Agent or any Lender or any defense to (i) the
payment of Obligations under the Revolving Notes and/or the Loan Documents, or (ii) the performance
of any of its obligations with respect to the Revolving Notes and/or the Loan Documents. In the
event any such facts, events, statuses or conditions exist or have existed, Borrower
unconditionally and irrevocably hereby RELEASES, RELINQUISHES and forever DISCHARGES Administrative
Agent, the Collateral Agent and the Lenders, as well as their predecessors, successors, assigns,
agents, officers, directors, shareholders, employees and representatives, of and from any and all
claims, demands, actions and causes of action of any and every kind or character, past or present,
which Borrower may have against any of them or their predecessors, successors, assigns, agents,
officers, directors, shareholders, employees and representatives arising out of or with respect to
(a) any right or power to bring any claim for usury or to pursue any cause of action based on any
claim of usury, and (b) any and all transactions relating to the Loan Documents occurring prior to
the date hereof, including any loss, cost or damage, of any kind or character, arising out of or in
any way connected with or in any way resulting from the acts, actions or omissions of any of them,
and their predecessors, successors, assigns, agents, officers, directors, shareholders, employees
and representatives, including any breach of fiduciary duty, breach of any duty of fair dealing,
breach of confidence, breach of funding commitment, undue influence, duress, economic coercion,
conflict of interest, negligence, bad faith, malpractice, intentional or negligent infliction of
mental distress, tortious interference with contractual relations, tortious interference with
corporate governance or prospective business advantage, breach of contract, deceptive trade
practices, libel, slander or conspiracy, but in each case only to the extent permitted by
applicable Law.

     The parties hereto have executed this Fourth Amendment in multiple counterparts to be
effective as of the Fourth Amendment Effective Date.

Remainder of Page Intentionally Blank

Signature Pages to Follow.

Fourth Amendment to Quest

Cherokee Amended and

Restated Credit Agreement

4

 

     IN WITNESS WHEREOF, the parties hereto have caused this Fourth Amendment to be duly executed
as of the Fourth Amendment Effective Date.

	 	 	 	 	 
	 	BORROWER:

QUEST CHEROKEE, LLC,

as Borrower

 	 
	 	By:  	/s/ David Lawler
 	 
	 	 	David Lawler 	 
	 	 	President 	 
	 
	 	GUARANTORS:

QUEST ENERGY PARTNERS, L.P.,

as a Guarantor

 	 
	 	By:  	 QUEST ENERGY GP, LLC,

Its General Partner

 	 
	 	By:  	
/s/ David Lawler
 	 
	 	 	David Lawler, 	 
	 	 	President 	 
	 
	 	QUEST CHEROKEE OILFIELD SERVICE, LLC,

as a Guarantor

 	 
	 	By:  	QUEST CHEROKEE, LLC,

Its Sole Member

 	 
	 	By:  	/s/ David Lawler
 	 
	 	 	David Lawler, 	 
	 	 	President 	 
	 

Fourth Amendment to Quest

Cherokee Amended and

Restated Credit Agreement

Signature Page 1

 

 

	 	 	 	 	 
	AGREED TO AS OF THE FOURTH

AMENDMENT EFFECTIVE DATE: 	
ADMINISTRATIVE AGENT:

ROYAL BANK OF CANADA,

as Administrative Agent and Collateral Agent

 	 
	 	By:  	/s/ Susan Khokher
 	 
	 	 	Name:  	Susan Khokher 	 
	 	 	Title:  	Manager, Agency 	 
	 

Fourth Amendment to Quest

Cherokee Amended and

Restated Credit Agreement

Signature Page 2

 

 

	 	 	 	 	 
	AGREED TO AS OF THE FOURTH

AMENDMENT EFFECTIVE DATE: 	
L/C ISSUER AND LENDER:

ROYAL BANK OF CANADA, as a Lender

and L/C Issuer

 	 
	 	By:  	/s/ Leslie P. Vowell
 	 
	 	 	Leslie P. Vowell 	 
	 	 	Attorney-in-Fact 	 
	 

Fourth Amendment to Quest

Cherokee Amended and

Restated Credit Agreement

Signature Page 3

 

 

	 	 	 	 	 
	AGREED TO AS OF THE FOURTH

AMENDMENT EFFECTIVE DATE: 	
KEYBANK NATIONAL ASSOCIATION,

as Documentation Agent and a Lender

 	 
	 	By:  	/s/ Todd Coker
 	 
	 	 	Name:  	Todd Coker 	 
	 	 	Title:  	Assistant Vice President 	 
	 

Fourth Amendment to Quest

Cherokee Amended and

Restated Credit Agreement

 

Signature Page 4

 

	 	 	 	 	 
	AGREED TO AS OF THE FOURTH

AMENDMENT EFFECTIVE DATE: 	
U.S. BANK NATIONAL ASSOCIATION,

as a Lender

 	 
	 	By:  	/s/ Bruce E. Hernandez
 	 
	 	 	Name:  	Bruce E. Hernandez 	 
	 	 	Title:  	Vice President 	 
	 

Fourth Amendment to Quest

Cherokee Amended and

Restated Credit Agreement

Signature Page 5
 

 

	 	 	 	 	 
	AGREED TO AS OF THE FOURTH

AMENDMENT EFFECTIVE DATE: 	
SOCIÉTÉ GÉNÉRALE, as a Lender

 	 
	 	By:  	/s/ Elena Robciuc
 	 
	 	 	Name:  	Elena Robciuc 	 
	 	 	Title:  	Director 	 
	 

Fourth Amendment to Quest

Cherokee Amended and

Restated Credit Agreement

Signature Page 6

 

 

	 	 	 	 	 
	AGREED TO AS OF THE FOURTH

AMENDMENT EFFECTIVE DATE: 	
WACHOVIA BANK, N.A., as a Lender

 	 
	 	By:  	  	 
	 	 	Name:  		 
	 	 	Title:  		 
	 

Fourth Amendment to Quest

Cherokee Amended and

Restated Credit Agreement

Signature Page 7 

 

	 	 	 	 	 
	AGREED TO AS OF THE FOURTH

AMENDMENT EFFECTIVE DATE: 	
COMERICA BANK, as a Lender

 	 
	 	By:  	/s/ Peter L. Sefzik
 	 
	 	 	Name:  	Peter L. Sefzik 	 
	 	 	Title:  	Senior Vice President 	 
	 

Fourth Amendment to Quest

Cherokee Amended and

Restated Credit Agreement

Signature Page 8

 

	 	 	 	 	 
	AGREED TO AS OF THE FOURTH

AMENDMENT EFFECTIVE DATE: 	
AMEGY BANK, N.A., as a Lender

 	 
	 	By:  	/s/ Stewart T. Lang
 	 
	 	 	Name:  	Stewart T. Lang 	 
	 	 	Title:  	Vice President 	 
	 

Fourth Amendment to Quest

Cherokee Amended and

Restated Credit Agreement

Signature Page 9

 

	 	 	 	 	 
	AGREED TO AS OF THE FOURTH

AMENDMENT EFFECTIVE DATE: 	
RZB FINANCE, LLC, as a Lender

 	 
	 	By:  	/s/ F. Dieter Beintrexler
 	 
	 	 	Name:  	F. Dieter Beintrexler 	 
	 	 	Title:  	President 	 
	 
	 	 	 
	 	By:  	                                 /s/ John A. Valiska
 	 
	 	 	Name:  	John A. Valiska 	 
	 	 	Title:  	First Vice President 	 
	 

Fourth Amendment to Quest

Cherokee Amended and

Restated Credit Agreement

Signature Page 10

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00160-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00160-of-00352.parquet"}]]