Document:

Exhibit 10.1 Development Agreement

Exhibit 10.1

DEVELOPMENT AGREEMENT

This DEVELOPMENT AGREEMENT (the "Agreement") dated October __, 2013 (the "Signing Date"), is by and between Ring Energy, Inc., (“Ring” or " Operator”) whose address is P.O. Box 11350, Midland, TX 79702, and Torchlight Energy Resources, Inc., (“Torchlight” or “Non-Operator”) whose address is 5700 W. Plano Parkway, Suite 3600, Plano, TX  75093.  Ring Energy, Inc. and Torchlight Energy Resources, Inc. shall be referred to herein, individually, as a "Party" and, collectively, as the "Parties."

RECITALS

A. Ring Energy, Inc. and Torchlight Energy Resources, Inc., entered into a Letter of Intent (“LOI”) dated September 27, 2013, memorializing the Parties’ desire to enter into a Development Agreement for the development of the lands described on Exhibit “A” to the LOI (the “Subject Acreage”);

B. the Parties provided for an Area of Mutual Interest to include “Subject Acreage”; 

C. the Parties are entering into this Agreement to govern their rights and obligations with respect to the development of the “Subject Acreage” and to provide for the efficient and effective management of such property; and

D.  the Parties now desire to set forth their respective rights and obligations with respect to the development of the “Subject Acreage”.

NOW THEREFORE, the Parties hereby agree as follows:

ARTICLE I.  DEFINITIONS AND INTERPRETATION.

Section 1.1

Definitions.  The terms defined in this Section 1.1, when used in this Agreement, have the meanings specified herein:

 “Agreement” has the meaning set forth in the Preamble.

 “Lease” means an Oil and Gas lease, including renewals, extensions, ratifications and amendments to such lease, and working interests, net revenue interests and other interests therein; rights of assignment and reassignment and undeveloped locations under or in an Oil and Gas lease; and other interests in rights to explore for and produce Oil and Gas.

“Lease Maintenance Payment” means any delay rental, shut-in payment, minimum royalty payment, or any other Lease payment necessary to maintain, renew or extend any of the Leases included in the Subject Acreage.

“Net Revenue Interest” means the share of production after all burdens, including royalty and overriding royalty, have been deducted from the working interest. 

 “Party” and “Parties” have the meaning set forth in the Preamble.

“Subject Acreage” means all of Ring’s leasehold acreage as described in Exhibit A. 

"Ring’s Costs" means all costs incurred by Ring with respect to the Subject Acreage as set forth on Exhibit D.

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Section 1.2

Interpretive Provisions.

(a)

The definitions of terms herein shall apply equally to the singular and plural forms of the terms defined.  Whenever the context may require, any pronoun shall include the corresponding masculine, feminine and neuter forms.  The words “include,” “includes” and “including” shall be deemed to be followed by the phrase “without limitation.”  The word “will” shall be construed to have the same meaning and effect as the word “shall.”  Unless the context requires otherwise, (i) any definition of or reference to any agreement, instrument or other document shall be construed as referring to such agreement, instrument or other document as from time to time amended, supplemented or otherwise modified, and (ii) any reference herein to any Person shall be construed to include such Person’s successors and assigns.

(b)

Section headings herein are included for convenience of reference only and shall not affect the interpretation of this Agreement.

ARTICLE II.   SCOPE; PARTIES’ INTERESTS; CONSIDERATION.

Section 2.1 

Scope.  This Agreement governs, among other things, the rights and obligations of the Parties with respect to the funding, development and operation of the Subject Acreage during the Term (as defined in Article VI).

Section 2.2

Development Program.  

(a)

Prior to the commencement of operations the Parties will enter into the Joint Operating Agreement (“JOA”) attached as Exhibit “B” to this agreement.  Ring will be designated as “Operator” under the JOA, and will remain Operator as long as Ring owns or controls any interest in the Subject Acreage.   During the Term of this Agreement, the Subject Acreage will be operated in accordance with the JOA and during the Term, in the event of a conflict between this Agreement and the JOA, this Agreement shall control. 

(b)

Attached as Exhibit “C” to this Agreement is a sample form Authority for Expenditure provided by Ring .Execution of this agreement is evidence of Torchlight’s approval of this form of Authority for Expenditure for use in developing and operating the Subject Acreage.  

(c)

Attached as Exhibit “D” to this Agreement is the schedule of Ring's Costs as of the Signing Date.  Torchlight expressly agrees that Ring’s Costs as set forth on Exhibit “D” are reasonable and that they will apply with respect to its performance under the Agreement.

(d)

At the time of execution of this Agreement, Torchlight will pay Ring $1,000,000.00 in cash.  

(e) 

Thirty days prior to commencement of operations, Torchlight will pay to Ring an additional amount equal to the difference between $1,000,000.00 and 50% of  Ring’s Costs as set forth on Exhibit “D” (the “Initial Program Payment”).   For purposes of this paragraph, “commencement of operations” is defined as filing a drilling permit or signing a drilling contract.  

(f)

The Parties will conduct an initial five-well drilling program (the “Initial Program”).  For each well, unless both parties agree not to complete the well, the well will be completed to the tanks.  All drilling, completion, and any other necessary costs incurred will be charged against the Initial Program Payment.  The Initial Program will continue until (1) five Initial Program wells have been drilled and either (a) completed to the tanks, or (b) the parties have agreed not to complete the said Initial Program wells, or (2) the balance of the Initial Program Payment is charged down to $100,000, in which case the Initial Program will be concluded at the completion of any well in progress.  

(g) 

At the conclusion of the Initial Program, the Parties will have up to 120 days to evaluate the Initial Program (the “Initial Evaluation Period”).  Thirty days before the end of the Initial Evaluation Period (and not more than 90 days after the conclusion of the Initial Program), Torchlight will pay an amount equal to 50% of Ring’s Costs (“the Second Program Payment”) to Ring.  

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(h)

After the Initial Evaluation Period, the Parties will conduct a second five-well drilling program (the “Second Program”) according to the terms of this Agreement.  For each well, unless both parties agree not to complete the well, the well will be completed to the tanks.    All drilling, completion, and any other costs incurred against the balance of the funds paid to Ring under (e) and (g) of this Section 2.1.  The Second Program will continue until five Second Program wells have been drilled and either (a) completed to the tanks, or (b) the parties have agreed not to complete the said Second Program wells.  

 Section 2.3

Parties’ Interests.  

(a)

At any point in the development program outlined above,  if total drilling, completion, and any other necessary costs incurred equal Torchlight’s contributions under Section 2.2 (e), (g), and (h), Torchlight and Ring will become equal owners in the Subject Acreage, this Agreement will terminate in accordance with Article VI, and further development and operation of the Subject Acreage will be according to the terms of the JOA.  

(b)

If, after the Second Program is concluded, total drilling, completion, and any other necessary costs incurred are less than Ring’s Costs, then the parties will drill additional wells until Torchlight’s payments to Ring are exhausted.  At that point, Torchlight will become an equal owner with Ring in the Subject Acreage, this Agreement will terminate in accordance with Article VI, and any further development and operation will be according to the terms of the JOA.   

(c)

If Torchlight fails to make payment according to Section 2.2 (e), (g), and (h), then Torchlight will earn only a 50% interest in the proration unit attributable to each well drilled and completed.

(d) 

Unless and until Torchlight becomes an equal owner in the Subject Acreage, the Subsequent Operations provisions of the JOA with respect to Operations by Less than All Parties, Article VI, will not apply.  

(e) 

For each lease included in the Subject Acreage, Ring will assign 50% of its interest in the lease.  (Ring owns approximately 80% Net Revenue Interest (“NRI”) in each lease.)

ARTICLE III.  AREA OF MUTUAL INTEREST AND ADDITIONAL ACREAGE

Section 3.1

Area of Mutual Interest.  The Parties hereby establish an Area of Mutual Interest (“AMI”) consisting of  the Counties of Gray, Finney, and Haskell, Kansas. The AMI shall be in effect until both this Agreement and the JOA have terminated. 

Section 3.2

Acquisition of Acreage in the AMI.

(a)

If either Party acquires or seeks to acquire any Working Interests within the AMI, it shall provide written notice of its intent to acquire. Within 30 days after receipt of written notice, the other Party shall have the right, but not the obligation, to participate in such acquisition on an equal percentage basis by giving written notice of its intent to participate. A Party’s failure to exercise its option to participate as described herein shall be deemed an election not to participate.

(b) 

A Party exercising its option to participate as described in (a) shall pay its equal share of the acquisition costs, including Lease bonuses, broker fees, expenses, abstract costs, title opinions and all other costs of due diligence, including third party costs, to the Operator according to the terms of the JOA.

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ARTICLE IV. TRANSFERS AND PREFERENTIAL RIGHTS

Section 4.1.  Preferential Rights.  If Torchlight desires or is compelled to assign, sell, transfer, convey, encumber, or dispose of, whether by assignment, sale, farmout, pledge, merger, or otherwise, including by transfer of ownership or control of ownership of the business entity that is a Party or a successor to a Party to this Agreement (“Transfer”), all or any portion of  its rights or interest under this Agreement, the Subject Acreage, or any other rights or interests obtained or acquired under this Agreement,  Torchlight shall promptly give written notice to Ring, with full information concerning its proposed Transfer, which notice shall include: (1) the name and address of the prospective purchaser, assignee, or transferee (who must be ready, willing and able to purchase or accept the transfer); (2) the purchase price or in the event of the transfer of a business entity or group of properties, an allocation of that portion of the purchase price attributable to its interest in the oil and gas estate under this Agreement or in the Unit Area (including information sufficient to evaluate the reasonableness of said allocation); (3) a legal description sufficient to identify the property and interest; and (4) all other terms of the proposed Transfer. Ring shall then have the preferential or preemptive right, for a period of thirty (30) days after the notice is received, to elect to purchase Torchlight’s rights or interests, at the same price and on the same terms and conditions.

Section 4.2.  Consent to Assign.  If Ring chooses not to exercise its right to participate as described in (a), Torchlight may not consummate the Transfer without Ring’s consent, which will not be unreasonably withheld. 

Section 4.3  Right to Participate.   In the event that either Party desires or is compelled to Transfer all or any portion of its rights, interests, assets and properties that are subject to the terms of this Agreement or the JOA, such Party must provide the other Party the right and opportunity to Transfer its rights, interests, assets and properties to the same degree and on the same terms.

ARTICLE V.  LAND AND GEOSCIENCE DATA

Section 5.1

Land Information.  Each Party will have access to existing leasehold documentation now or hereafter developed or obtained by any Party in connection with the Subject Acreage or acquisition of interests in the AMI including all Lease, land, title and division order files (including any available abstracts of title, title opinions and reports, and title curative documents), contracts, accounting records, correspondence, permitting, engineering, production, and well files (including any well logs), to the extent such access is not prohibited pursuant to any third party confidentiality agreement or applicable Law.  Such information has been, and shall be, provided to the other Party without warranty as to completeness or accuracy.  

Section 5.2

Geoscience Data.  To the extent that a Party is not prohibited pursuant to any third party agreement or applicable Law, such Party will provide to any other Party, upon request, all seismic and geological data and other similar information including drainage data, seismic surveys, geological and geophysical maps, shot point location maps, information regarding fracing of wells and related information regarding the development and operation of the Subject Acreage that such Party may possess.  

Section 5.3

No Warranty of Accuracy.  THE PARTIES RECOGNIZE AND AGREE THAT ALL MATERIALS, DOCUMENTS, AND OTHER INFORMATION, MADE AVAILABLE TO IT AT ANY TIME IN CONNECTION WITH THIS AGREEMENT, WHETHER MADE AVAILABLE PURSUANT TO THIS SECTION OR OTHERWISE, ARE MADE AVAILABLE TO IT AS AN ACCOMMODATION, AND WITHOUT REPRESENTATION OR WARRANTY OF ANY KIND, WHETHER EXPRESS, IMPLIED OR STATUTORY, AS TO THE ACCURACY AND COMPLETENESS OF SUCH MATERIALS, DOCUMENTS, AND OTHER INFORMATION.  EACH PARTY EXPRESSLY AGREES THAT ANY RELIANCE UPON OR CONCLUSIONS DRAWN THEREFROM SHALL BE AT SUCH PARTY’S OWN RISK TO THE MAXIMUM EXTENT PERMITTED BY LAW AND SHALL NOT GIVE RISE TO ANY LIABILITY OF OR AGAINST THE OTHER PARTY.  EACH PARTY HEREBY WAIVES AND RELEASES ANY CLAIMS ARISING UNDER THIS AGREEMENT, COMMON LAW OR ANY STATUTE ARISING OUT OF ANY MATERIALS, DOCUMENTS OR INFORMATION PROVIDED TO SUCH PARTY.  

Section 5.4  Special Warranty.  As to the Subject Acreage, Ring warrants title against the lawful claims of all persons claiming by, through, and under it, but not otherwise.

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ARTICLE VI.  TERM AND TERMINATION

Section 6.1

Term and Termination.  The term of this Agreement shall begin on the Signing Date and, unless earlier terminated by mutual written agreement of the Parties, shall continue until Torchlight becomes an equal owner with Ring in the Subject Acreage by matching Ring’s Costs, at which time the Parties will be subject solely to the JOA, or the conclusion of the Initial Program and Second Program if Torchlight does not become an equal owner with Ring in the Subject Area.

Section 6.2

Survival of Certain Provisions.  The provisions of Sections 2.2(a), 2.3, 7.9, 7.10, 7.11, 7.13, and Articles III and IV shall survive termination of this Agreement.

ARTICLE VII.  MISCELLANEOUS PROVISIONS

Section 7.1

Non-Solicit; Non-Hire.  Neither Party may, without the prior written consent of the employing Party, directly or indirectly, hire, employ, retain as a contractor or enter into any contract or other agreement with any of the officers or employees of any other Party or its Affiliates, or otherwise solicit, induce or otherwise encourage any officer or employee of any other Party or its Affiliates to discontinue, cancel or refrain from entering into any business relationship (contractual or otherwise) with the other Party or any Affiliate of such Party.  Each Party must cause its Representatives to comply with this Section 7.1. The foregoing restrictions will expire with respect to any officer or employee two years following the date on which such officer or employee ceases its association or  employment with the originally employing Party or its Affiliates.

Section 7.2

Notices.  All notices and communications required or permitted under this Agreement shall be in writing addressed as indicated below, and any communication or delivery hereunder shall be deemed to have been duly delivered upon the earliest of: (a) actual receipt by the Party to be notified; (b) if by facsimile or electronic mail transmission, upon confirmation by the recipient of receipt, provided that a copy of such notice has also been sent by Federal Express overnight delivery (or other reputable overnight delivery service); or (c) if by Federal Express overnight delivery (or other reputable overnight delivery service), two days after deposited with such service.  Addresses for all such notices and communication shall be as follows:

Notices

Ring Energy, Inc. ., a Nevada Corporation

Torchlight Energy Resources, Inc., a Nevada Corporation

______________________________________

______________________________________

______________________________________

______________________________________

______________________________________

______________________________________

______________________________________

______________________________________

Any Party may, upon written notice to the each other Party, change the address and Person to whom such communications are to be directed.

Section 7.3

Relationship of the Parties.  This Agreement is strictly contractual in nature and is not intended to create, and shall not be construed to create, an association for profit, a trust, an agency, a joint venture, a partnership or other relationship of partnership, or Entity of any kind between the Parties, or otherwise to create fiduciary duties between the Parties.  

Section 7.4

Publicity and Recordation of Documents.  Neither the  Operator nor any Non-Operating Interest Holder, nor their respective Affiliates, shall issue any press release or similar public announcement pertaining to this Agreement or the JOA or the transactions contemplated hereby or thereby without the prior consent of the other Parties (which consent shall not be unreasonably withheld, delayed or conditioned), except as may be required by applicable Law or by obligations pursuant to any listing agreement with any national securities exchange, as reasonably determined by the Party issuing such press release or making such public announcement, in which case such issuing or announcing party shall provide prior notice of such press release or public announcement to the other Party; provided, in the case of any press release or public announcement to be issued or made in connection with the consummation of this transaction, the Parties agree to reasonably cooperate in advance of such issuance or announcement.  

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Section 7.5

Waiver.  No waiver by any Party, whether express or implied, of any right under any provision of this Agreement shall constitute a waiver of such Party’s right at any other time or a waiver of such Party’s rights under any other provision of this Agreement unless it is made in writing and signed by an authorized representative of the Party.   No failure by any Party to take any action with respect to any breach of this Agreement or default shall constitute a waiver of a Party’s right to enforce any provision of this Agreement or to take action with respect to such breach or default or any subsequent breach or default. 

Section 7.6

Amendments; Binding Effect.  This Agreement, including this Section 8.6 and the exhibits and schedules hereto, shall not be amended or modified except in writing signed by or on behalf of all of the Parties.  The provisions of this Agreement shall constitute a covenant running with the land,  and shall remain in full force and effect and be binding upon and inure to the benefit of the Parties and their respective permitted successors and assigns.

Section 7.7

No Third Party Beneficiaries.  Except as otherwise expressly set forth in this Agreement, nothing in this Agreement shall create or be deemed to create any third-party beneficiary rights in any Person or Entity not party to this Agreement.

Section 7.8

Severability.  If any provision of this Agreement is held invalid or unenforceable, such invalidity or unenforceability shall not affect in any way the validity or enforceability of any other provision of this Agreement.  

Section 7.9

Governing Law.  THIS AGREEMENT AND THE LEGAL RELATIONS AMONG THE PARTIES SHALL BE GOVERNED AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH THE LAWS OF THE STATE OF TEXAS, EXCLUDING ANY CONFLICTS OF LAW RULE OR PRINCIPLE THAT MIGHT REFER CONSTRUCTION OF SUCH PROVISIONS TO THE LAWS OF ANOTHER JURISDICTION.  THE PARTIES CONSENT TO VENUE IN ANY STATE OR FEDERAL COURT OF COMPETENT JURISDICTION IN THE WESTERN DISTRICT OF TEXAS.

Section 7.10

Waiver of Consequential Damages.  NOTWITHSTANDING ANY OTHER PROVISION OF THIS AGREEMENT TO THE CONTRARY, EACH PARTY HEREBY EXPRESSLY DISCLAIMS, WAIVES AND RELEASES THE OTHER PARTY FROM ITS OWN SPECIAL, EXEMPLARY, PUNITIVE, CONSEQUENTIAL, INCIDENTAL, AND INDIRECT DAMAGES (INCLUDING LOSS OF, DAMAGE TO OR DELAY IN PROFIT, REVENUE OR PRODUCTION) RELATING TO, ASSOCIATED WITH, OR ARISING OUT OF THIS AGREEMENT AND THE TRANSACTIONS CONTEMPLATED HEREBY.  NO LAW, THEORY, OR PUBLIC POLICY SHALL BE GIVEN EFFECT WHICH WOULD UNDERMINE, DIMINISH, OR REDUCE THE EFFECTIVENESS OF THE FOREGOING WAIVER, IT BEING THE EXPRESS INTENT, UNDERSTANDING, AND AGREEMENT OF THE PARTIES THAT SUCH DAMAGE WAIVER IS TO BE GIVEN THE FULLEST EFFECT, NOTWITHSTANDING THE NEGLIGENCE (WHETHER SOLE, JOINT OR CONCURRENT), GROSS NEGLIGENCE, WILLFUL MISCONDUCT, STRICT LIABILITY OR OTHER LEGAL FAULT OF ANY PARTY.

Section 7.11

Confidentiality.

(a)

Except for disclosures to Affiliates and reasonable disclosures for financing purposes, Representatives of a Party who need to know information for purposes of performing this Agreement or the JOA, accountants, legal counsel and other advisors or in connection with any proposed merger or acquisition transaction involving a Party, in each case under circumstances in which the disclosing Party takes reasonable steps to maintain confidentiality, or for purposes of a sale or other transfer of interests to a third party, provided that such third party has executed a confidentiality agreement, all confidential information, data and interpretations resulting from the activities under this Agreement (“Confidential Data”) shall be confidential.  The term “Confidential Data” does not include information that (i) is generally available to the public, or (ii) is within a Party’s possession prior to the date hereof; provided, however, that the source of such information was not known by such Party to be bound by a confidentiality agreement with, or other contractual, legal or fiduciary obligation of confidentiality to, any other Party.

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(b)

Except as provided herein or otherwise required by Law, any JOA or other binding contract, no Party shall distribute or disclose any Confidential Data to third parties, the press or other media, without the written consent of the other Parties.  In the event that any Party or its Representatives are requested or required (by oral questions, interrogatories, requests for information or documents in legal proceedings, subpoena, civil investigative demand or other similar process) to disclose any of the Confidential Data, such Party shall provide the other Parties with prompt written notice of any such request or requirement so that the other Parties may seek a protective order or other appropriate remedy and/or waive compliance with the provisions of this Agreement.  If, in the absence of a protective order or other remedy or the receipt of a waiver by each other Party, a Party or its Representatives are nonetheless legally compelled to disclose Confidential Data to any tribunal or else stand liable for contempt or suffer other censure or penalty, such Party or its Representatives may, without liability hereunder, disclose to such tribunal only that portion of the Confidential Data that it is legally required to be disclosed; provided, however, that such Party will exercise its best reasonable efforts to preserve the confidentiality of the Confidential Data, including by cooperating with the other Parties to obtain an appropriate protective order or other reliable assurance that confidential treatment will be accorded the Confidential Data by such tribunal.  Further, nothing contained in this Section shall preclude any Party from making such disclosures as may be required by any applicable federal or state securities law or regulations.

Section 7.12

Exhibits.   The exhibits and schedules referred to herein are attached hereto and expressly incorporated herein for all purposes.  

Section 7.13

Interpretation.  It is expressly agreed by the Parties that neither this Agreement nor the JOA shall be construed against any Party thereto, and no consideration shall be given or presumption made, on the basis of who drafted this Agreement or the JOA.  Each Party agrees that this Agreement has been purposefully drawn and correctly reflects its understanding of the contemplated transactions and, therefore, waives the application of any Law or rule of construction based on which party drafted or supplied any agreement, document, or provision thereof.

Section 7.14

Conflicting Provisions.  This Agreement and the JOA, read as a whole, set forth the Parties’ rights, responsibilities and liabilities with respect to the transactions contemplated by this Agreement.  In the event of any conflict with any provision of the JOA, this Agreement shall control. 

Section 7.15

Representations and Warranties.  Each Party represents and warrants to the other Parties as follows:

(a)

If such Party is an Entity, such Party is duly organized, validly existing and in good standing under the laws of the jurisdiction of its formation or incorporation.

(b)

Such Party has full power and authority to enter into and perform this Agreement and the JOA and the transactions contemplated herein and therein.  The execution, delivery, and performance by such Party of this Agreement has been duly and validly authorized and approved by all necessary company action on the part of such party.  This Agreement and the JOA is the valid and binding obligation of such Party and enforceable against such party in accordance with its terms, subject to the effects of bankruptcy, insolvency, reorganization, moratorium, and similar Laws.

Section 7.16

Entire Agreement.  This Agreement, the JOA, and the exhibits and schedules hereto and thereto, and any other documents delivered in connection with this Agreement contain the entire agreement of the Parties with respect to the subject matter hereof and supersede all previous agreements or communications between the Parties, verbal or written, with respect to the subject matter hereof.  Each Party agrees that no other Party (including its agents and Representatives) has made any representation, warranty, covenant or agreement to or with such party relating to this Agreement or the transactions contemplated hereby, other than those expressly set forth in this Agreement, the JOA, and the exhibits and schedules hereto and thereto.

Section 7.17

Further Assurances.  The Parties shall provide to each other such information with respect to the transactions contemplated hereby as may be reasonably requested and shall execute and deliver to each other such further documents and take such further action as may be reasonably requested by any Party to document, complete or give full effect to the terms and provisions of this Agreement and the transactions contemplated herein.

Section 7.18

Multiple Counterparts.  This Agreement may be executed in any number of counterparts, all of which together shall constitute one agreement binding on the Parties hereto.  A facsimile or email transmission of a scanned, executed counterpart of this Agreement shall be sufficient to bind a party hereto to the same extent as an original.

[SIGNATURE PAGE FOLLOWS]

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In Witness Whereof, this Agreement is executed and effective as of the Signing Date.

Ring Energy, Inc. ., a Nevada Corporation

Torchlight Energy Resources, Inc., a Nevada Corporation

/s/ David A. Fowler

/s/ John A. Brda 

David A. Fowler

John A. Brda

President

PresidentExhibit 10.1

 

NINTH AMENDMENT TO FOURTH AMENDED AND RESTATED

CREDIT AGREEMENT

 

This NINTH AMENDMENT TO FOURTH AMENDED AND RESTATED CREDIT AGREEMENT (this “Amendment”) is made as of October 21, 2013, by and among ANTERO RESOURCES CORPORATION, a Delaware corporation, formerly known as Antero Resources Appalachian Corporation and successor by merger to each of Antero Resources Arkoma LLC, Antero Resources Piceance LLC and Antero Resources Pipeline LLC (the “Borrower”), CERTAIN SUBSIDIARIES OF BORROWER, as Guarantors, the LENDERS party hereto, and JPMORGAN CHASE BANK, N.A., as Administrative Agent (in such capacity, the “Administrative Agent”).  Unless otherwise expressly defined herein, capitalized terms used but not defined in this Amendment have the meanings assigned to such terms in the Credit Agreement (as defined below).

 

WITNESSETH:

 

WHEREAS, the Borrower, the Guarantors, the Administrative Agent and the Lenders have entered into that certain Fourth Amended and Restated Credit Agreement, dated as of November 4, 2010 (as amended, restated, amended and restated, supplemented or otherwise modified from time to time, the “Credit Agreement”); and

 

WHEREAS, the Administrative Agent, the Lenders, the Borrower and the Guarantors have agreed to amend the Credit Agreement as provided herein subject to the terms and conditions set forth herein.

 

NOW, THEREFORE, for and in consideration of the mutual covenants and agreements herein contained and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged and confessed, the Borrower, the Guarantors, the Administrative Agent and the Lenders hereby agree as follows:

 

SECTION 1.                                       Amendments to Credit Agreement.  Subject to the satisfaction or waiver in writing of each condition precedent set forth in Section 3 of this Amendment, and in reliance on the representations, warranties, covenants and agreements contained in this Amendment, the Credit Agreement shall be amended in the manner provided in this Section 1.

 

1.1                                             Schedules.  Schedule 1.01 to the Credit Agreement shall be and it hereby is amended in its entirety and replaced with Schedule 1.01 attached hereto.

 

SECTION 2.                                       Departing Lender and Reduction and Reallocation of Commitments and Loans.  Upon the effectiveness of this Amendment, the Aggregate Commitment shall be automatically reduced to $1,500,000,000. The Lenders have agreed among themselves to reallocate their respective Commitments under the Credit Agreement in accordance with Section 2.02 of the Credit Agreement without the requirement of any prior written notice from the Borrower.  In addition, Bank of Scotland plc (the “Departing Lender”) desires to assign all of its rights and obligations as a Lender under the Credit Agreement to certain other Lenders and to no longer be a party to the Credit Agreement.  Each of the Administrative Agent and the Borrower hereby consent to the reallocation of the Aggregate Commitment and the Departing Lender’s

 

ANTERO RESOURCES

NINTH AMENDMENT

 

1

 

assignment of its rights, interests, liabilities and obligations under the Credit Agreement to certain other Lenders.  On the date this Amendment becomes effective and after giving effect to such reallocation of the Aggregate Commitment and the receipt by Departing Lender of the principal amount of all Loans owing to it, the Commitment of the Departing Lender shall terminate and the Commitment and Applicable Percentage of each Lender shall be as set forth on Schedule 1.01 of this Amendment and the Departing Lender shall cease to be a party to the Credit Agreement, provided it shall continue to have the benefit of those provisions which by their terms are stated to survive the termination of the Credit Agreement.  Each Lender hereby consents to the Commitments set forth on Schedule 1.01 of this Amendment.  The reduction in the Aggregate Commitment shall be made ratably among the Lenders (other than the Departing Lender) in accordance with each Lender’s Applicable Percentage, as determined by the Administrative Agent, such that, after giving effect thereto, the principal amount of each Lender’s outstanding Loans shall be and be deemed to be equal to its Applicable Percentage of the aggregate outstanding principal amount of all Loans as set forth on Schedule 1.01 of this Amendment.  The reduction in the Aggregate Commitment shall be deemed to have been consummated pursuant to the terms of Section 2.02 of the Credit Agreement.  The reallocation of the Aggregate Commitment among the Lenders, including the assignment by the Departing Lender of all of its rights, interests, liabilities and obligations under the Credit Agreement to the other Lenders, shall be deemed to have been consummated pursuant to the terms of the Assignment and Assumption attached as Exhibit A to the Credit Agreement as if the Lenders, including the Departing Lender, had executed an Assignment and Assumption with respect to such reallocation.  The Administrative Agent hereby waives the $3,500 processing and recordation fee set forth in Section 11.04(b)(ii)(C) of the Credit Agreement with respect to the assignments and reallocations contemplated by this Section 3.  To the extent requested by any Lender, including the Departing Lender, and in accordance with Section 2.16 of the Credit Agreement, the Borrower shall pay to such Lender, within the time period prescribed by Section 2.16 of the Credit Agreement, any amounts required to be paid by the Borrower under Section 2.16 of the Credit Agreement in the event the payment of any principal of any Eurodollar Loan or the conversion of any Eurodollar Loan other than on the last day of an Interest Period applicable thereto is required in connection with the addition and reallocation contemplated by this Section 2.

 

SECTION 3.                                       Conditions.  The amendments to the Credit Agreement contained in Section 1 of this Amendment, and the reduction, reallocation and departure of the Departing Lender contained in Section 2 of this Amendment, shall be effective upon the satisfaction of each of the conditions set forth in this Section 3.

 

3.1                               Execution and Delivery.  Each Credit Party, the Lenders (or at least the required percentage thereof), and the Administrative Agent shall have executed and delivered this Amendment.

 

3.2                               No Default.  No Default shall have occurred and be continuing or shall result from the effectiveness of this Amendment.

 

3.3                               Other Documents.  The Administrative Agent shall have received such other instruments and documents incidental and appropriate to the transactions provided for herein as

 

2

 

the Administrative Agent or its special counsel may reasonably request, and all such documents shall be in form and substance reasonably satisfactory to the Administrative Agent.

 

SECTION 4.                                       Representations and Warranties of Credit Parties.  To induce the Lenders to enter into this Amendment, each Credit Party hereby represents and warrants to the Lenders as follows:

 

4.1                               Reaffirmation of Representations and Warranties/Further Assurances.  After giving effect to the amendments herein, each representation and warranty of such Credit Party contained in the Credit Agreement and in each of the other Loan Documents is true and correct in all material respects as of the date hereof or, if qualified by materiality or Material Adverse Effect, such representation and warranty is true and correct in all respects (except to the extent such representations and warranties specifically refer to an earlier date, in which case they are true and correct in all material respects as of such earlier date or if qualified by materiality or Material Adverse Effect, such representation and warranty is true and correct in all respects).

 

4.2                               Corporate Authority; No Conflicts.  The execution, delivery and performance by each Credit Party of this Amendment are within such Credit Party’s corporate or other organizational powers, have been duly authorized by necessary action, require no action by or in respect of, or filing with, any court or agency of government and do not violate or constitute a default under any provision of any applicable law or other agreements binding upon any Credit Party or result in the creation or imposition of any Lien upon any of the assets of any Credit Party except for Permitted Liens and otherwise as permitted in the Credit Agreement.

 

4.3                               Enforceability.  This Amendment constitutes the valid and binding obligation of the Borrower and each other Credit Party enforceable in accordance with its terms, except as (i) the enforceability thereof may be limited by bankruptcy, insolvency or similar laws affecting creditor’s rights generally, and (ii) the availability of equitable remedies may be limited by equitable principles of general application.

 

4.4                               No Default.  As of the date hereof, both before and immediately after giving effect to this Amendment, no Default has occurred and is continuing.

 

SECTION 5.                                       Miscellaneous.

 

5.1                               Reaffirmation of Loan Documents and Liens.  Any and all of the terms and provisions of the Credit Agreement and the Loan Documents shall, except as amended and modified hereby, remain in full force and effect and are hereby in all respects ratified and confirmed by each Credit Party.  The Borrower and each Guarantor hereby agrees that the amendments and modifications herein contained shall in no manner affect or impair the liabilities, duties and obligations of any Credit Party under the Credit Agreement and the other Loan Documents or the Liens securing the payment and performance thereof.

 

5.2                               Parties in Interest.  All of the terms and provisions of this Amendment shall bind and inure to the benefit of the parties hereto and their respective successors and assigns.

 

3

 

5.3                               Legal Expenses.  Each Credit Party hereby agrees to pay all reasonable fees and expenses of special counsel to the Administrative Agent incurred by the Administrative Agent in connection with the preparation, negotiation and execution of this Amendment and all related documents.

 

5.4                               Counterparts.  This Amendment may be executed in one or more counterparts and by different parties hereto in separate counterparts each of which when so executed and delivered shall be deemed an original, but all such counterparts together shall constitute but one and the same instrument; signature pages may be detached from multiple separate counterparts and attached to a single counterpart so that all signature pages are physically attached to the same document.  Delivery of photocopies of the signature pages to this Amendment by facsimile or electronic mail shall be effective as delivery of manually executed counterparts of this Amendment.

 

5.5                               Complete Agreement.  THIS AMENDMENT, THE CREDIT AGREEMENT, AND THE OTHER LOAN DOCUMENTS REPRESENT THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR ORAL AGREEMENTS OF THE PARTIES.  THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.

 

5.6                               Headings.  The headings, captions and arrangements used in this Amendment are, unless specified otherwise, for convenience only and shall not be deemed to limit, amplify or modify the terms of this Amendment, nor affect the meaning thereof.

 

5.7                               Governing Law.  This Amendment shall be construed in accordance with and governed by the laws of the State of New York.

 

5.8                               Loan Document.  This Amendment shall constitute a Loan Document for all purposes and in all respects.

 

[Remainder of page intentionally blank]

 

4

 

IN WITNESS WHEREOF, the parties have caused this Amendment to be duly executed by their respective authorized officers to be effective as of the date first above written.

 

	
 
    	
BORROWER:
    
	
 
    	
 
    
	
 
    	
ANTERO   RESOURCES CORPORATION (formerly known as Antero Resources Appalachian   Corporation and successor by merger to each of Antero Resources Arkoma LLC,   Antero Resources Piceance LLC and Antero Resources Pipeline LLC)
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Alvyn A. Schopp
    
	
 
    	
 
    	
Name:
    	
Alvyn   A. Schopp
    
	
 
    	
 
    	
Title:
    	
Chief   Administrative Officer and Regional Vice President
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
RESTRICTED   SUBSIDIARIES:
    
	
 
    	
 
    
	
 
    	
ANTERO   RESOURCES FINANCE CORPORATION
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Alvyn A. Schopp
    
	
 
    	
 
    	
Name:
    	
Alvyn   A. Schopp
    
	
 
    	
 
    	
Title:
    	
Chief   Administrative Officer and Regional Vice President
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
ANTERO   RESOURCES BLUESTONE LLC
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Alvyn A. Schopp
    
	
 
    	
 
    	
Name:   
    	
Alvyn   A. Schopp
    
	
 
    	
 
    	
Title:
    	
Chief   Administrative Officer and Regional Vice President
    

 

SIGNATURE PAGE

 

 

	
 
    	
JPMORGAN   CHASE BANK, N.A.,
    
	
 
    	
as   Administrative Agent, Issuing Bank and a Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   David Morris
    
	
 
    	
 
    	
Name:
    	
David   Morris
    
	
 
    	
 
    	
Title:
    	
Authorized   Officer
    

 

SIGNATURE PAGE

 

 

	
 
    	
WELLS   FARGO BANK, N.A.,
    
	
 
    	
as   Syndication Agent and a Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Suzanne Ridenhour
    
	
 
    	
 
    	
Name:
    	
Suzanne   Ridenhour
    
	
 
    	
 
    	
Title:
    	
Director
    

 

SIGNATURE PAGE

 

 

	
 
    	
UNION   BANK, N.A.,
    
	
 
    	
as   Co-Documentation Agent and a Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Lara Sorokolit
    
	
 
    	
 
    	
Name:
    	
Lara   Sorokolit
    
	
 
    	
 
    	
Title:
    	
Vice   President
    

 

SIGNATURE PAGE

 

 

	
 
    	
CREDIT   AGRICOLE CORPORATE AND INVESTMENT BANK,
    
	
 
    	
as   Co-Documentation Agent and a Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Dennis Petito
    
	
 
    	
 
    	
Name:
    	
Dennis   Petito
    
	
 
    	
 
    	
Title:
    	
Managing   Director
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Michael D. Willis
    
	
 
    	
 
    	
Name:
    	
Michael   D. Willis
    
	
 
    	
 
    	
Title:
    	
Managing   Director
    

 

SIGNATURE PAGE

 

 

	
 
    	
BANK   OF SCOTLAND PLC,
    
	
 
    	
as   a Departing Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Karen Weich
    
	
 
    	
 
    	
Name:
    	
Karen   Weich
    
	
 
    	
 
    	
Title:
    	
Vice   President
    

 

SIGNATURE PAGE

 

 

	
 
    	
BARCLAYS   BANK PLC,
    
	
 
    	
as   a Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Irina Dimova
    
	
 
    	
 
    	
Name:
    	
Irina   Dimova
    
	
 
    	
 
    	
Title:
    	
Vice   President
    

 

SIGNATURE PAGE

 

 

	
 
    	
FIFTH   THIRD BANK,
    
	
 
    	
as   a Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Richard Butler
    
	
 
    	
 
    	
Name:
    	
Richard   Butler
    
	
 
    	
 
    	
Title:
    	
Senior   Vice President
    

 

SIGNATURE PAGE

 

 

	
 
    	
COMERICA   BANK,
    
	
 
    	
as   a Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Ekaterina Evseev
    
	
 
    	
 
    	
Name:
    	
Ekaterina   Evseev
    
	
 
    	
 
    	
Title:
    	
Assistant   Vice President
    

 

SIGNATURE PAGE

 

 

	
 
    	
CREDIT   SUISSE AG, CAYMAN ISLANDS BRANCH,
    
	
 
    	
as   a Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Vipul Dhadda
    
	
 
    	
 
    	
Name:
    	
Vipul   Dhadda
    
	
 
    	
 
    	
Title:
    	
Authorized   Signatory
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Michael Spaight
    
	
 
    	
 
    	
Name:
    	
Michael   Spaight
    
	
 
    	
 
    	
Title:
    	
Authorized   Signatory
    

 

SIGNATURE PAGE

 

 

	
 
    	
KEY BANK NATIONAL ASSOCIATION,
    
	
 
    	
as a Lender
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Paul J. Pace
    
	
 
    	
 
    	
Name:
    	
Paul J. Pace
    
	
 
    	
 
    	
Title:
    	
Senior Vice President
    

 

SIGNATURE PAGE

 

 

	
 
    	
U.S. BANK NATIONAL ASSOCIATION,
    
	
 
    	
as a Lender
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Daniel K. Hansen
    
	
 
    	
 
    	
Name:
    	
Daniel K. Hansen
    
	
 
    	
 
    	
Title:
    	
Vice President
    

 

SIGNATURE PAGE

 

 

	
 
    	
GUARANTY BANK AND TRUST   COMPANY,
    
	
 
    	
as a Lender
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Gail J. Nofsinger
    
	
 
    	
 
    	
Name:
    	
Gail J. Nofsinger
    
	
 
    	
 
    	
Title:
    	
Senior Vice President
    

 

SIGNATURE PAGE

 

 

	
 
    	
CITIBANK, N.A.,
    
	
 
    	
as a Lender
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Mason McGurrin
    
	
 
    	
 
    	
Name:
    	
Mason McGurrin
    
	
 
    	
 
    	
Title:
    	
Vice President
    

 

SIGNATURE PAGE

 

 

	
 
    	
CAPITAL ONE, NATIONAL   ASSOCIATION,
    
	
 
    	
as a Lender
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Victor Ponce de León
    
	
 
    	
 
    	
Name:
    	
Victor Ponce de León
    
	
 
    	
 
    	
Title:
    	
Vice President
    

 

SIGNATURE PAGE

 

 

	
 
    	
TORONTO DOMINION (NEW YORK)   LLC,
    
	
 
    	
as a Lender
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Masood Fikree
    
	
 
    	
 
    	
Name:
    	
Masood Fikree
    
	
 
    	
 
    	
Title:
    	
Authorized Signatory
    

 

SIGNATURE PAGE

 

 

	
 
    	
BRANCH BANKING AND TRUST   COMPANY,
    
	
 
    	
as a Lender
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ James Giordano
    
	
 
    	
 
    	
Name:
    	
James Giordano
    
	
 
    	
 
    	
Title:
    	
Vice President
    

 

SIGNATURE PAGE

 

 

	
 
    	
BMO HARRIS BANK N.A.,
    
	
 
    	
as a Lender
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Joseph A. Bliss
    
	
 
    	
 
    	
Name:
    	
Joseph A. Bliss
    
	
 
    	
 
    	
Title:
    	
Managing Director
    

 

SIGNATURE PAGE

 

 

SCHEDULE 1.01

 

Applicable Percentages and Commitments

 

	
Lender
    	
 
    	
Applicable
   Percentage
    	
 
    	
Commitment
    	
 
    
	
JPMorgan Chase Bank, N.A.
    	
 
    	
10.600000000
    	
%
    	
$
    	
159,000,000.00
    	
 
    
	
Wells Fargo Bank, N.A.
    	
 
    	
10.600000000
    	
%
    	
$
    	
159,000,000.00
    	
 
    
	
Credit Agricole Corporate and Investment Bank
    	
 
    	
8.800000000
    	
%
    	
$
    	
132,000,000.00
    	
 
    
	
Union Bank, N.A.
    	
 
    	
7.666666667
    	
%
    	
$
    	
115,000,000.00
    	
 
    
	
Citibank, N.A.
    	
 
    	
7.666666667
    	
%
    	
$
    	
115,000,000.00
    	
 
    
	
Barclays Bank PLC
    	
 
    	
7.666666667
    	
%
    	
$
    	
115,000,000.00
    	
 
    
	
Capital One, National Association
    	
 
    	
7.666666667
    	
%
    	
$
    	
115,000,000.00
    	
 
    
	
Toronto Dominion (New York) LLC
    	
 
    	
5.333333333
    	
%
    	
$
    	
80,000,000.00
    	
 
    
	
Comerica Bank
    	
 
    	
5.333333333
    	
%
    	
$
    	
80,000,000.00
    	
 
    
	
BMO Harris Bank N.A.
    	
 
    	
5.333333333
    	
%
    	
$
    	
80,000,000.00
    	
 
    
	
U.S. Bank National Association
    	
 
    	
5.333333333
    	
%
    	
$
    	
80,000,000.00
    	
 
    
	
Credit Suisse AG, Cayman Islands Branch
    	
 
    	
5.333333333
    	
%
    	
$
    	
80,000,000.00
    	
 
    
	
Branch Banking and Trust Company
    	
 
    	
4.400000000
    	
%
    	
$
    	
66,000,000.00
    	
 
    
	
Fifth Third Bank
    	
 
    	
4.400000000
    	
%
    	
$
    	
66,000,000.00
    	
 
    
	
KeyBank National Association
    	
 
    	
3.066666667
    	
%
    	
$
    	
46,000,000.00
    	
 
    
	
Guaranty Bank and Trust Company
    	
 
    	
0.800000000
    	
%
    	
$
    	
12,000,000.00
    	
 
    
	
TOTAL
    	
 
    	
100.000000000
    	
%
    	
$
    	
1,500,000,000.00

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00222-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00222-of-00352.parquet"}]]