Document:

First Amendment to Amended and Restated Credit Agreement

 
EXHIBIT 10.1

FIRST AMENDMENT TO 
AMENDED AND RESTATED CREDIT AGREEMENT 
 
This FIRST AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT (this “Agreement”) executed effective as of the 13th day of May, 2003 (the “Effective Date”), is by and among
ATP OIL & GAS CORPORATION, a corporation formed under the laws of the State of Texas (the “Borrower”); each of the lenders that is a signatory hereto and to the hereinafter described Amended and Restated Credit Agreement
(individually, together with its successors and assigns, a “Lender” and collectively, the “Lenders”); and UNION BANK OF CALIFORNIA, N.A., a national banking association as agent for the Lenders (in such capacity, together
with any successors in such capacity, the “Administrative Agent”) and as the issuer of letters of credit under such Amended and Restated Credit Agreement (in such capacity, the “Issuing Lender”). 
 
R E C I T A L S 
 
A.    The Borrower, the Administrative
Agent, the Issuing Lender and the Lenders are parties to that certain Amended and Restated Credit Agreement dated as of July 31, 2002, as amended and supplemented by letter agreements heretofore entered into among the Borrower, the Lenders and the
Administrative Agent (as so amended, the “Credit Agreement”), pursuant to which the Lenders agreed to make loans to and extensions of credit on behalf of the Borrower. 
 
B.    Subject to the terms and conditions of this Agreement, the Borrower, the
Administrative Agent, the Issuing Lender and the Lenders wish to amend the Credit Agreement as set forth herein. 
 
NOW THEREFORE, in consideration of the premises and the mutual covenants herein contained, the parties hereto agree as follows:

 
Section
1.    Definitions.    As used in this Agreement, each of the terms defined in the opening paragraph and the Recitals above shall have the meanings assigned to such terms therein. Each term
defined in the Credit Agreement and used herein without definition shall have the meaning assigned to such term in the Credit Agreement, unless expressly provided to the contrary. The words “hereby”, “herein”,
“hereinafter”, “hereof”, “hereto” and “hereunder” when used in this Agreement shall refer to this Agreement as a whole and not to any particular Article, Section, subsection or provision of this Agreement.

 
Section
2.    Amendments.    The Borrower, the Administrative Agent, the Issuing Lender and the Lenders agree that the Credit Agreement is hereby amended, effective as of the Effective Date or, as to
paragraph (d) below, March 31, 2003, in the following particulars: 
 
(a)    Section 1.02 of the Credit Agreement is hereby amended and supplemented by adding the following new definitions where alphabetically appropriate as follow: 
 
“Foreign Investment Limit Amount”
shall mean $17,000,000. 
 
“Foreign Subsidiary Financing” has the meaning specified in Section 6.21(b). 
 
(b)    Section 2.02(b)(v) of the Credit Agreement is hereby amended by replacing the last sentence
contained therein in its entirety with the following: 
 
“The Administrative Agent may, but is not obligated to, amend Schedule 2.02(b)(v) and distribute such amended Schedule to the Borrower and each 
 

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Lender upon
any redetermination (whether scheduled or unscheduled) of the Borrowing Base or the monthly Borrowing Base reduction amount that necessitates a revised Schedule 2.02(b)(v); provided that the failure to provide such amended Schedule shall not effect
the validity of the redetermined Borrowing Base or monthly Borrowing Base reduction amount.” 
 
(c)    Section 5.06 of the Credit Agreement is hereby amended by adding the following new clauses (r)
and (s): 
 
“(r)    Monthly Financial Statements. As soon as available and in any event within 25 days after the end of each calendar month consolidating statements of income of the Borrower and its consolidated
Subsidiaries for the immediately preceding calendar month, and the related consolidating balance sheets as of the end of such period and including an accounts receivable and an accounts payable aging report, accompanied by (i) the certificate of a
Responsible Officer, which certificate shall state that said financial statements fairly present the consolidated and consolidating financial condition and results of operations of the Borrower and its consolidated Subsidiaries in accordance with
GAAP, as at the end of, and for, such period (subject to normal year-end audit adjustments) and (ii) a Compliance Certificate executed by the Chief Financial Officer of the Borrower. 
 
(s)    Monthly Production Report. As soon as available and in any event within 25
days after the end of each month, a report certified by a Responsible Officer of the Borrower in form and substance satisfactory to the Administrative Agent prepared by the Borrower covering each of the Oil and Gas Properties with Proven Reserves
and which are included or to be included in the Borrowing Base and detailing on a monthly basis (i) the production, revenue, and price information and associated operating expenses for each such month, (ii) any changes to any producing reservoir,
production equipment, or producing well during each such month, which changes could cause a Material Adverse Change and (iii) any sales of such Oil and Gas Properties during each such month, whether or not such sales were permitted by the terms
hereof.” 
 
(d)    Effective as of March 31, 2003, Section 6.13 of the Credit Agreement is hereby deleted in its entirety and replaced with the following: 
 
“Section 6.13    Current Ratio.    The Borrower shall not
permit the ratio of (i) its consolidated current assets (including any unused portion of the Borrowing Base and including any funds available to the Foreign Subsidiaries under a committed credit facility, but limited to the aggregate amount included
for the relevant Foreign Subsidiaries’ accounts payable in clause (ii) of this Section 6.13) as of the end of any calendar month commencing with the calendar month ending June 30, 2003, to (ii) its consolidated current liabilities (excluding
any current maturities of long-term Debt) as of the end of such relevant calendar month to be less than 1.0 to 1.0. For purposes of this calculation (a) the mark-to-market portion of any Hydrocarbon Hedge Agreement or Interest Hedge Agreement shall
be excluded from the calculation of both consolidated current assets and consolidated current liabilities, and (b) liability for an asset retirement obligation recognized as a result of the Borrower’s compliance with Financial Accounting
Standards Board Statement of Accounting Standards No. 143 shall be excluded from the calculation of consolidated current liabilities.” 
 

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(e)    Section 6.21 of the Credit Agreement is hereby deleted in its entirety and replaced with the following: 
 
“Section 6.21    Foreign Subsidiaries. 
 
(a)    Notwithstanding
anything to the contrary contained herein, the Borrower shall not, nor shall it permit any of its Subsidiaries (other than Foreign Subsidiaries) to, incur any Debt in respect of, make any loans, advances, or capital contributions to, make any
investment in (including the making of any Acquisition), or purchase or commit to purchase any stock or other securities or evidences of indebtedness of or interests in, any Foreign Subsidiary (collectively, the “Foreign Subsidiary
Investments”) in an aggregate amount exceeding the Foreign Investment Limit Amount at any time; provided that at least $10,000,000 of such Foreign Subsidiary Investments shall be evidenced by promissory notes issued by the relevant Foreign
Subsidiaries payable to the order of the Borrower and collaterally assigned to, and held in the possession of, the Administrative Agent. For the avoidance of doubt (a) the aggregate amount of the Foreign Subsidiary Investments permitted under this
Agreement, whether under this Section 6.21 or under any other Section of this Agreement, shall not exceed the Foreign Investment Limit Amount at any time and (b) “Foreign Subsidiary Investments” include any sureties or bonds provided to
any Governmental Authority or other Person and assuring payment of contingent liabilities of a Foreign Subsidiary in connection with the operation of such Foreign Subsidiary’s Oil and Gas Properties, including with respect to plugging, facility
removal and abandonment of such Oil and Gas Properties. 
 
(b)    The Borrower hereby agrees that it shall not permit any of its Foreign Subsidiaries to enter into any financing, sale-leaseback, securitization or other similar transaction which would affect any
of the assets of such Foreign Subsidiary (any of the foregoing being referred to herein as a “Foreign Subsidiary Financing”) without obtaining each of the Lender’s prior written consent, which consent may be given or withheld in the
Lender’s sole discretion, to the terms of such Foreign Subsidiary Financing.” 
 
(f)    Exhibit B attached to the Credit Agreement is hereby deleted in its entirety and replaced with
the Exhibit B attached to this Agreement. 
 
Section 3.    Borrowing Base.    Nothwithstanding anything herein or in the Credit Agreement to the contrary and in addition to any interim redeterminations that may occur
prior to such date, the next Borrowing Base redetermination after the Effective Date shall occur in July, 2003. Effective as of the Effective Date and subject to the terms and provisions contained herein (a) the Borrowing Base shall be decreased to
$50,000,000 and (b) the monthly Borrowing Base reduction amount as discussed in Section 2.02(b)(v) of the Credit Agreement shall be $0, and such Borrowing Base and such monthly Borrowing Base reduction amount shall remain in effect at those levels
until such redetermination in July, 2003 or such earlier date on which the Borrowing Base and the monthly Borrowing Base reduction amount are redetermined as permitted by the interim redetermination provisions set forth in Section 2.02(b)(vi) of the
Credit Agreement. 
 
Section
4.    Representations and Warranties.    The Borrower represents and warrants to the Administrative Agent, the Issuing Lender and the Lenders that: (a) except for such which are made only as
of a prior date, the representations and warranties set forth in the Credit Agreement and in the other 
 

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Loan Documents are true and correct in all material respects as of the Effective Date as if made on and as
of such date; (b) the execution, delivery and performance of this Agreement are within the corporate power and authority of the Borrower and have been duly authorized by appropriate corporate proceedings; (c) this Agreement constitutes a legal,
valid, and binding obligation of the Borrower enforceable in accordance with its terms, except as limited by applicable bankruptcy, insolvency, reorganization, moratorium, or similar laws affecting the rights of creditors generally and general
principles of equity; and (d) no consent, order, authorization, or approval or other action by, and no notice to or filing with, any Governmental Authority or any other Person is required for the due execution, delivery, and performance by the
Borrower of this Agreement or the consummation of the transactions contemplated hereby.  
 
Section 5.    Conditions to Effectiveness:    This Agreement shall become effective and enforceable against the parties hereto and the
Credit Agreement shall be amended as provided herein on the Effective Date, and as to the amendment set forth in Section 2(d) of this Agreement, on March 31, 2003, upon satisfaction of the following conditions precedent on or before the Effective
Date: (a) the Administrative Agent shall have received multiple original counterparts, as requested by the Administrative Agent, of this Agreement duly and validly executed and delivered by duly authorized officers of the Borrower, the
Administrative Agent, the Issuing Lender and each Lender; (b) giving effect to this Agreement, no Default or Event of Default shall have occurred and be continuing as of the Effective Date; (c) the Administrative Agent or any Lender or counsel to
the Administrative Agent shall have received such other instruments or documents as any of them may reasonably request; (d) ATP (UK) shall have paid to the Borrower an amount equal to at least $6,000,000 as repayment of the Borrower’s loans to
ATP (UK) and the Borrower shall have provided evidence of its receipt of such amount as requested by the Administrative Agent; and (e) the Borrower shall have (i) paid all fees and expenses of the Administrative Agent’s outside legal counsel
and other consultants pursuant to all invoices presented for payment on or prior to the Effective Date, (ii) paid all other fees which were due to the Administrative Agent or the Lenders under any of the Loan Documents on or prior to the Effective
Date, (iii) paid a non-refundable waiver and amendment fee of $140,000 to the Administrative Agent for the benefit of the Lenders in accordance with their respective Pro Rata Shares, and (iv) prepaid the Advances in an amount equal to $2,000,000
such that the aggregate outstanding amount of the Advances on the Effective Date does not exceed the new Borrowing Base as set forth in Section 3 of this Agreement. 
 
Section 6.    Effect on Loan Documents.    Each
of the Borrower, the Administrative Agent, the Issuing Lender and the Lenders does hereby adopt, ratify, and confirm the Credit Agreement, as amended hereby, and acknowledges and agrees that the Credit Agreement, as amended hereby, is and remains in
full force and effect. Nothing herein shall act as a waiver of any of the Administrative Agent’s, Issuing Lender’s or Lender’s rights under the Loan Documents, as amended, including the waiver of any Default or Event of Default,
however denominated. From and after the Effective Date, all references to the Credit Agreement shall mean such Credit Agreement as amended by this Agreement. This Agreement is a Loan Document for the purposes of the provisions of the other Loan
Documents. Without limiting the foregoing, any breach of representations, warranties, and covenants under this Agreement shall be a Default or Event of Default, as applicable, under the Credit Agreement. 
 
Section 7.    Counterparts;
Assigns.    This Agreement (a) may be signed in any number of counterparts, each of which shall be an original and all of which, taken together, constitute a single instrument; (b) may be executed by facsimile
signature and all such signatures shall be effective as originals; and (c) shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns permitted pursuant to the Credit Agreement. 
 

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Section
8.    Invalidity.    In the event that any one or more of the provisions contained in this Agreement shall for any reason be held invalid, illegal or unenforceable in any respect, such
invalidity, illegality or unenforceability shall not affect any other provision of this Agreement. 
 
Section 9.    Titles of Articles, Sections and Subsections.    All titles or
headings to Articles, Sections, subsections or other divisions of this Agreement or the exhibits hereto, if any, are only for the convenience of the parties and shall not be construed to have any effect or meaning with respect to the other content
of such Articles, Sections, subsections, other divisions or exhibits, such other content being controlling as the agreement among the parties hereto. 
 
Section 10.    Governing Law.    This Agreement shall be deemed to be a
contract made under and shall be governed by and construed in accordance with the internal laws of the State of Texas. 
 
THIS AGREEMENT, THE CREDIT AGREEMENT, AS AMENDED HEREBY, THE NOTES, AND THE OTHER LOAN DOCUMENTS REPRESENT THE FINAL AGREEMENT BETWEEN THE PARTIES AND
MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. 
 
THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES. 
 
[SIGNATURES BEGIN ON NEXT PAGE] 
 

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IN WITNESS
WHEREOF, the parties hereto have caused this Agreement to be duly executed and delivered by their proper and duly authorized officers as of the Effective Date. 
 

	 BORROWER:
	 	 ATP OIL & GAS CORPORATION

	
	 	 	 By:
	    	 /s/ T. Paul Bulmahn

	 	 	 	    	 T. Paul Bulmahn
 President

	
	 ADMINISTRATIVE AGENT
	 	 	    	 
	 AND ISSUING LENDER:
	 	 UNION BANK OF CALIFORNIA, N.A.

	
	 	 	 By:
	    	 /s/ Damian Meiburger

	 	 	 Name:
	    	 Damian Meiburger

	 	 	 Title:
	    	 Senior Vice President

	
	 LENDERS:
	 	 UBOC-I, L.P.

	
	 	 	 By:
	    	 Union Bank of California, N.A.,

	 	 	 	    	 its general partner

	
	 	 	 	    	 By: /s/ Ali Ahmed

	 	 	 	    	 Name: Ali Ahmed

	 	 	 	    	 Title: Vice President

	
	 	 	 GUARANTY BANK, FSB

	
	 	 	 By:
	    	 /s/ Richard Menchaca

	 	 	 Name:
	    	 Richard Menchaca

	 	 	 Title:
	    	 Senior Vice President

 

6Thirteenth Supplemental Indenture - Senior Notes due 2004

 
EXHIBIT 4.1.1

 

 
CHESAPEAKE ENERGY CORPORATION 
 
and 
 
the Subsidiary Guarantors named herein 
 

 
7 7/8% SENIOR NOTES DUE 2004 
 

 

 
 
THIRTEENTH SUPPLEMENTAL INDENTURE 
 
DATED AS OF May 1, 2003 
 

 
 
 
THE BANK OF NEW YORK 
 
as successor Trustee to 
 
United States Trust Company of New York 
 
 

 
 
 

 
THIS
THIRTEENTH SUPPLEMENTAL INDENTURE, dated as of May 1, 2003, is among Chesapeake Energy Corporation, an Oklahoma corporation (the “Company”), each of the parties identified under the caption “Subsidiary Guarantors” on the
signature page hereto (the “Subsidiary Guarantors”) and The Bank of New York, as successor to United States Trust Company of New York, as Trustee. 
 
RECITALS 
 
WHEREAS, the Company, the Subsidiary Guarantors a party thereto and the Trustee entered into an Indenture, dated as of March 15, 1997, as
supplemented prior to the date hereof (the “Indenture”), pursuant to which the Company has originally issued $150,000,000 in principal amount of 7 7/8% Senior Notes due 2004 (the “Notes”); and 
 
WHEREAS, Section 9.1(3) of the Indenture provides that the
Company, the Subsidiary Guarantors and the Trustee may amend or supplement the Indenture without notice to or consent of any Holder to reflect the addition of any Subsidiary Guarantor, as provided for in the Indenture; and 
 
WHEREAS, the Board of Directors of the Company has designated
MC Mineral Company, L.L.C. as a Restricted Subsidiary of the Company and desires to add such entity as a Subsidiary Guarantor under the Indenture; and 
 
WHEREAS, all acts and things prescribed by the Indenture, by law and by the charter and the bylaws (or comparable constituent documents)
of the Company, of the Subsidiary Guarantors and of the Trustee necessary to make this Thirteenth Supplemental Indenture a valid instrument legally binding on the Company, the Subsidiary Guarantors and the Trustee, in accordance with its terms, have
been duly done and performed; 
 
NOW, THEREFORE, to
comply with the provisions of the Indenture and in consideration of the above premises, the Company, the Subsidiary Guarantors and the Trustee covenant and agree for the equal and proportionate benefit of the respective Holders of the Notes as
follows: 
 
ARTICLE 1 
 
Section 1.01. This Thirteenth Supplemental Indenture is
supplemental to the Indenture and does and shall be deemed to form a part of, and shall be construed in connection with and as part of, the Indenture for any and all purposes. 
 
Section 1.02. This Thirteenth Supplemental Indenture shall become effective immediately upon its
execution and delivery by each of the Company, the Subsidiary Guarantors and the Trustee. 
 
ARTICLE 2 
 
From this date, in accordance with Section 10.3 and by executing this Thirteenth Supplemental Indenture, MC Mineral Company, L.L.C., an Oklahoma limited liability company, is subject to the provisions of the Indenture as a Subsidiary
Guarantor to the extent provided for in Article X thereunder. 
 

 
ARTICLE 3

 
Section 3.01. Except as specifically
modified herein, the Indenture and the Notes are in all respects ratified and confirmed (mutatis mutandis) and shall remain in full force and effect in accordance with their terms with all capitalized terms used herein without definition
having the same respective meanings ascribed to them as in the Indenture. 
 
Section 3.02. Except as otherwise expressly provided herein, no duties, responsibilities or liabilities are assumed, or shall be construed to be assumed, by the Trustee by reason of this Thirteenth Supplemental
Indenture. This Thirteenth Supplemental Indenture is executed and accepted by the Trustee subject to all the terms and conditions set forth in the Indenture with the same force and effect as if those terms and conditions were repeated at length
herein and made applicable to the Trustee with respect hereto. 
 
Section 3.03. The Company hereby notifies the Trustee that MC Mineral Company, L.L.C. has been designated by the Board of Directors of the Company as a Restricted Subsidiary (as that term is defined in the Indenture).

 
Section 3.04. THE LAW OF THE STATE OF NEW
YORK SHALL GOVERN AND BE USED TO CONSTRUE AND ENFORCE THIS THIRTEENTH SUPPLEMENTAL INDENTURE. 
 
Section 3.05. The parties may sign any number of copies of this Thirteenth Supplemental Indenture. Each signed copy shall be an original, but all of such executed copies together shall represent
the same agreement. 
 
[NEXT PAGE IS SIGNATURE PAGE]

 

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IN WITNESS
WHEREOF, the parties hereto have caused this Thirteenth Supplemental Indenture to be duly executed, all as of the date first written above. 
 

	 COMPANY:

	
	 CHESAPEAKE ENERGY CORPORATION

	
	 By
	 	 /s/ Aubrey K. McClendon

	 Name:
	 	 Aubrey K. McClendon

	 Title:
	 	 Chief Executive Officer

	
	 SUBSIDIARY GUARANTORS:

	
	 CHESAPEAKE DELTA CORP.
 CHESAPEAKE ENERGY LOUISIANA
 CORPORATION
 CHESAPEAKE EP CORPORATION
 CHESAPEAKE OPERATING, INC.
 NOMAC DRILLING CORPORATION
 CARMEN ACQUISITION,
L.L.C.
 CHESAPEAKE ACQUISITION, L.L.C.
 CHESAPEAKE ENO ACQUISITION, L.L.C.
 CHESAPEAKE FOCUS, L.L.C.
 CHESAPEAKE KNAN ACQUISITION, L.L.C.
 CHESAPEAKE MOUNTAIN
FRONT, L.L.C.
 CHESAPEAKE ORC, L.L.C.
 CHESAPEAKE ROYALTY, L.L.C.
 GOTHIC ENERGY, L.L.C.
 GOTHIC PRODUCTION, L.L.C.

SAP ACQUISITION, L.L.C.
 THE AMES COMPANY, L.L.C.
 MC MINERAL COMPANY,
L.L.C.

	
	 By
	 	 /s/ Aubrey K. McClendon

	 Name:
	 	 Aubrey K. McClendon

	 Title:
	 	 Chief Executive Officer

 

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	 CHESAPEAKE EXPLORATION LIMITED
 PARTNERSHIP
 CHESAPEAKE LOUISIANA, L.P.
 CHESAPEAKE PANHANDLE
LIMITED
 PARTNERSHIP
 CHESAPEAKE-STAGHORN ACQUISITION L.P.
 CHESAPEAKE SIGMA, L.P.

	
	 By:
	 	 Chesapeake Operating, Inc. as general partner of each representative entity

	
	 By
	 	 /s/ Aubrey K. McClendon

	 Name:
	 	 Aubrey K. McClendon

	 Title:
	 	 Chief Executive Officer

	
	 TRUSTEE:

	
	 THE BANK OF NEW YORK, as successor to United States Trust Company of New York, as
Trustee

	
	 By
	 	 /s/ Louis P. Young

	 Name:
	 	 Louis P. Young

	 Title:
	 	 Vice President

 

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