Document:

exv10w1

Exhibit 10.1

As of

February 1, 2010

The Frost National Bank

777 Main Street, Suite 500

Fort Worth, Texas 76102

Attention: John S. Warren

JPMorgan Chase Bank, N.A.

2200 Ross Avenue, Third Floor

Dallas, Texas 75201

Attention: Kimberly A. Bourgeois

	 	Re:  	 	Seventh Amendment to Credit Agreement dated as of January 18, 2008 among
Approach Resources Inc. (“Borrower”), the Frost National Bank and the institutions
named therein (“Lenders”) and The Frost National Bank, as Agent (“Agent”)

Ladies and Gentlemen:

     Reference is hereby made to that certain Credit Agreement dated as of January 18, 2008 among
Approach Resources Inc., a Delaware corporation (“Borrower”), the Frost National Bank, as Agent
(“Agent”), and the Lenders that are signatory parties hereto (the “Lenders”), as amended by letter
amendment dated as of February 19, 2008, letter amendment dated as of May 6, 2008, Third Amendment
dated as of August 26, 2008, Fourth Amendment dated as of April 8, 2009, Fifth Amendment dated as
of July 8, 2009, Sixth Amendment dated as of October 30, 2009 and this Seventh Amendment dated the
date hereof (as amended, the “Loan Agreement”). All capitalized terms herein shall have the
meanings ascribed to them in the Loan Agreement.

     Pursuant to this Seventh Amendment (the “Amendment”), Agent, Lenders and Borrower agree,
effective as of the date hereof, to amend the Loan Agreement according to the terms and provisions
set forth below.

	1.	 	Replacement of Agent. This Amendment will constitute notice pursuant to Section
15(e) of the Loan Agreement (i) by Agent, The Frost National Bank, of its resignation as Agent
on behalf of all Lenders and (ii) of the appointment by Lenders of JPMorgan Chase Bank, N.A.
as the successor Agent under the Loan Agreement (the “Successor Agent”) and acceptance by
Successor Agent to act in such capacity. The Loan Agreement and other Loan Documents are
hereby amended in all respects necessary and appropriate to cause Successor Agent to become
the successor to Agent for Lenders under the Loan Agreement and for Successor Agent to be
vested with all rights and privileges formerly afforded to Agent in its capacity as Agent for
the Lenders.

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	2.	 	Notice to Agent and Lenders. Any notice or other communication required or
permitted by the Loan Agreement or any other Loan Document shall be provided to Successor
Agent (as Agent under the Loan Agreement) and Lenders c/o JPMorgan Chase Bank, N.A., 2200
Ross Avenue, Third Floor, Dallas, Texas 75201, Attention: Kimberly A. Bourgeois, Facsimile
No. (214) 965-3280.

	3.	 	Modification of Collateral Documents. Payment of the obligations of Borrower under
the Loan Agreement and the Notes is secured, in part, by first liens and first security
interests created or described in the lien documents executed by Borrower, Approach Resources
I, LP and Approach Oil and Gas Inc. in favor of Jimmy R. Locke, Trustee for the benefit of
Agent as Mortgagee (the “Collateral Documents”). Pursuant to this Amendment, the Collateral
Documents will be modified to reflect that the security interests created by the Collateral
Documents will be granted by Borrower, Approach Resources I, LP and Approach Oil and Gas Inc.
to Kimberly A. Bourgeois, as Trustee, for the benefit of Successor Agent, as Mortgagee.

	4.	 	Letters of Credit. Sections 2(c) and 2(d) of the Loan Agreement are deleted in their
entirety and the following are substituted therefor:

“(c) Letters of Credit. On the terms and conditions hereinafter set forth,
either Agent or The Frost National Bank (each an “Issuing Bank”) shall from time to
time during the period beginning on the Effective Date and ending on the Maturity
Date upon request of Borrower, issue standby and/or commercial letters of credit for
the account of Borrower or any Guarantor (the “Letters of Credit”) in such face
amounts as Borrower may request, but not to exceed in the aggregate face amount at
any time outstanding ten percent (10%) of the Borrowing Base then in effect. The
face amount of all Letters of Credit issued and outstanding hereunder shall be
considered as advances on the Commitment for Borrowing Base purposes and all
payments made by an Issuing Bank on such Letters of Credit shall be considered as
Advances under the Notes. Each Letter of Credit issued for the account of Borrower
or any Guarantor hereunder shall (i) be in favor of such beneficiaries as
specifically requested by Borrower, (ii) have an expiration date not exceeding the
earlier of (a) one year or (b) the Maturity Date, (iii) be in a minimum amount of
$25,000.00 and (iv) contain such other terms and provisions as may be reasonably
required by Issuing Bank. Each Lender (other than Issuing Bank) agrees that, upon
issuance of any Letter of Credit hereunder, it shall automatically acquire a
participation in Issuing Bank’s liability under such Letter of Credit in an amount
equal to such Lender’s Commitment Percentage of such liability, and each Lender
(other than Issuing Bank) thereby shall absolutely, unconditionally and irrevocably
assume, as primary obligor and not as surety, and shall be unconditionally obligated
to agent to pay and discharge when due, its Commitment Percentage of Issuing Bank’s
liability under such Letter of Credit. Borrower hereby unconditionally agrees to
pay and reimburse Issuing Bank for the amount of each demand for payment under any
Letter of Credit that is in substantial compliance with the provisions of any such
Letter of Credit at or prior to the date on which payment is to be made by Issuing
Bank to the beneficiary

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thereunder, without presentment, demand, protest or other formalities of any kind.
Upon receipt from any beneficiary of any Letter of Credit of any demand for payment
under such Letter of Credit, Issuing Bank shall promptly notify Agent (if Agent is
not the Issuing Bank) Borrower of the demand and the date upon which such payment is
to be made by Issuing Bank to such beneficiary in respect of such demand. Upon
receipt of such notice from Issuing Bank, Borrower shall advise Agent and Issuing
Bank (if Agent is not the Issuing Bank) whether or not it intends to borrow
hereunder to finance its obligations to reimburse Issuing Bank, and if so, submit a
Notice of Borrowing as provided in Section 2(b) hereof. If Borrower fails to so
advise Agent and Issuing Bank (if Agent is not the Issuing Bank) and thereafter
fails to reimburse Issuing Bank, Agent shall notify each Lender of the demand and
the failure of Borrower to reimburse Issuing Bank, and each Lender shall reimburse
Issuing Bank for its Commitment Percentage of each such draw paid by Issuing Bank
and unreimbursed by Borrower. All such amounts paid by Issuing Bank and/or
reimbursed by Lenders shall be treated as an Advance or Advances under the
Commitment, which Advances shall be immediately due and payable and shall bear
interest at the Maximum Rate. Borrower agrees to pay Agent for the benefit of
Lenders commissions for issuing the Letters of Credit (calculated separately for
each Letter of Credit) in an amount equal to the greater of (i) $500 or, (ii) one
percent (1.00%) of the maximum face amount of the Letter of Credit. Such
commissions will be calculated on the basis of a year consisting of 360 days.

(d) Procedure for obtaining Letters of Credit. The amount and date of
issuance, renewal, extension or reissuance of a Letter of Credit pursuant to the
Commitments shall be designated by Borrower’s written request delivered to Issuing
Bank at least three (3) Business Days prior to the date of such issuance, renewal,
extension or reissuance. Concurrently with or promptly following the delivery of
the request for a Letter of Credit, Borrower shall execute and deliver to Issuing
Bank an application and agreement with respect to the letter of credit, said
application and agreement to be in the form used by Issuing Bank (in the event that
there is any conflict between the terms of any such application and agreement for
any Letter of Credit and this Agreement, the terms of this Agreement shall prevail).
Issuing Bank shall not be obligated to issue, renew, extend or reissue any Letter
of Credit if (i) the amount thereon when added to the face amount of the outstanding
letters of credit plus any reimbursement obligations exceeds ten percent (10%) of
the Borrowing Base or (ii) the amount thereof when added to the Total Outstandings
would exceed the Commitment.”

	5.	 	Ratification by Guarantors. Each Guarantor hereby ratifies and reaffirms all of its
obligations under its Restated Guaranty Agreement (the “Guaranty”) of Borrower’s obligations
under the Loan Agreement, as amended hereby. Each Guarantor also hereby agrees that nothing
in this Amendment shall adversely affect any right or remedy of Lenders under the Guaranty and
that the execution and delivery of this Amendment shall in no way change or modify its
obligations as guarantor under the Guaranty. Although each Guarantor has been informed by
Borrower of the matters set forth in this

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	 	 	Amendment and such Guarantor has acknowledged and agreed to the same, such Guarantor
understands that neither Agent nor Successor Agent has any duty to notify such Guarantor or
to seek such Guarantor’s acknowledgment or agreement, and nothing contained herein shall
create such a duty as to any transaction hereafter.

	6.	 	Representations and Warranties. By executing this Amendment, Borrower hereby
represents, warrants and certifies to Lenders that, as of the date hereof, (a) there exists no
Event of Default or events which, with notice or lapse of time, would constitute an Event of
Default; (b) Borrower has performed and complied with all agreements and conditions contained
in the Loan Agreement or the other Loan Documents which are required to be performed or
complied with by Borrower; and (c) the representations and warranties contained in the Loan
Agreement and the other Loan Documents are true in all material respects, with the same force
and effect as though made on and as of the date hereof.

	7.	 	Confirmation and Ratification. Except as affected by the provisions set forth
herein, the Loan Agreement shall remain in full force and effect and is hereby ratified and
confirmed by all parties. The execution, delivery and effectiveness of this Amendment shall
not, except as expressly provided herein, operate as a waiver of any right, power or remedy of
Lenders under the Loan Agreement or the other Loan Documents.

	8.	 	Reference to Loan Agreement. Each of the Loan Agreement and the Loan Documents, and
any and all other agreements, documents or instruments now or hereafter executed and delivered
pursuant to the terms hereof or pursuant to the terms of the Loan Agreement, as amended
hereby, are hereby amended so that any reference in the Loan Agreement, the Loan Documents and
such other documents to the Loan Agreement shall mean a reference to the Loan Agreement as
amended hereby.

	9.	 	Multiple Counterparts. This Amendment may be executed in a number of identical
separate counterparts, each of which for all purposes is to be deemed an original, but all of
which shall constitute, collectively, one agreement. No party to this Amendment shall be
bound hereby until a counterpart of this Amendment has been executed by all parties hereto.
Delivery of an executed counterpart of a signature page of this Amendment by telecopy shall be
effective as delivery of a manually executed counterpart of this Amendment.

	10.	 	Final Agreement. THE LOAN AGREEMENT, AS AMENDED BY THIS AMENDMENT, AND ALL
PROMISSORY NOTES AND OTHER LOAN DOCUMENTS EXECUTED PURSUANT THERETO OR HERETO, REPRESENT THE
FINAL AGREEMENT AMONG 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 OR AMONG ANY OF THE PARTIES.

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          Please signify your acceptance to the foregoing terms and provisions by executing a copy of
this Amendment at the space provided below.

	 	 	 	 	 
	 	Very truly yours,

BORROWER:

APPROACH RESOURCES INC.,

a Delaware corporation

 	 
	 	By:  	/s/ J. Ross Craft
 	 
	 	 	J. Ross Craft, President and Chief Executive 	 
	 	 	Officer 	 
	 
	 	GUARANTORS:

APPROACH OIL & GAS INC.,

a Delaware corporation

 	 
	 	By:  	/s/ J. Ross Craft
 	 
	 	 	J. Ross Craft, President and Chief Executive 	 
	 	 	Officer 	 
	 
	 	APPROACH OIL & GAS (CANADA) INC.,

an Alberta, Canada corporation

 	 
	 	By:  	/s/ J. Ross Craft
 	 
	 	 	J. Ross Craft, President and Chief Executive 	 
	 	 	Officer 	 

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	 	APPROACH RESOURCES I, LP,

a Texas limited partnership

 	 
	 	By:  	Approach Operating, LLC,
 	 
	 	 	a Delaware limited liability company, 	 
	 	 	its general partner 	 
	 	 	 
	 	By:  	                 Approach Resources Inc.,
 	 
	 	 	a Delaware corporation, 	 
	 	 	its sole member 	 
	 	 	 
	 	By:  	                 /s/ J. Ross Craft
 	 
	 	 	J. Ross Craft, President and Chief Executive 	 
	 	 	Officer 	 

	 	 	 	 	 
	ACCEPTED AND AGREED TO

effective as of the date and year

first above written:

AGENT:

THE FROST NATIONAL BANK

 	 	 
	By:  	/s/ John S. Warren
 	 	 
	 	John S. Warren, Senior Vice President 	 	 
	 
	SUCCESSOR AGENT:

JPMORGAN CHASE BANK, N.A.

 	 	 
	By:  	/s/ Kimberly A. Bourgeois
 	 	 
	 	Kimberly A. Bourgeois, Senior Vice
President — Oil & Gas Finance 	 	 
	 
	LENDERS:

THE FROST NATIONAL BANK

 	 	 
	By:  	/s/ John S. Warren
 	 	 
	 	John S. Warren, Senior Vice President 	 	 

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	JPMORGAN CHASE BANK, N.A.

 	 	 
	By:  	/s/ Kimberly A. Bourgeois
 	 	 
	Name:  	Kimberly A. Bourgeois, Senior Vice President — Oil & Gas Finance	 	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	FORTIS CAPITAL CORP.,

a Connecticut corporation	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	By:	 	/s/ Betsy Jocher	 	 	 	By:	 	/s/ Greg Smothers	 	 
	 	 	 	 	 	 	 	 	 	 	 
	Name:	 	Betsy Jocher	 	 	 	Name:	 	Greg Smothers	 	 	 	 
	Title:	 	Director
	 	 	 	Title:
	 	Director	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	KEYBANK NATIONAL ASSOCIATION	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	By:	 	/s/ Angela McCracken	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	Name:	 	Angela McCracken	 	 	 	 	 	 	 	 	 	 
	Title:	 	Senior Vice President	 	 	 	 	 	 	 	 	 	 

-7-Exhibit 10.1

Exhibit 10.1

S1 Corporation 2010 Management Incentive Plan

The S1 Corporation 2010 Management Incentive Plan (the “Plan”) is designed as an incentive to
participants to perform at their most effective level, as a reward for strong performance, and as a
way of sharing in the success of S1 Corporation (the “Company”). The Plan is designed to be
self-funded and is incorporated into the Company’s business targets and budgets.

Eligibility for Participation

Designated employees are eligible for inclusion in the Plan for the 2010 calendar year.
Participation in the Plan is at the discretion of the Company. Employees considered for
participation include management level employees and individual contributors in functions that meet
established criteria as defined by the Company. Eligibility and participation is not automatic and
will be reviewed annually. Participation for new hires designated as eligible to participate in
the Plan will be pro-rated based on full months of employment during the plan year.

Operation of the Plan

For each participant, a target cash incentive amount will be specified for purposes of
participation in the Plan. Payments under the Plan will be based on the achievement of specified
financial metrics and, with respect to certain Plan participants, other non-financial performance
metrics as approved by the Compensation Committee of the Board of Directors and, with respect to
certain of the performance metrics, the Chief Executive Officer of the Company.

Participants in the Plan will be provided with a copy of their incentive plan worksheet (the
“Worksheet”) and the terms and conditions of the Plan. Each participant must sign and return their
Worksheet to the Human Resources Department along with an acknowledgement that they have reviewed
and understood the terms and conditions of the Plan and their Worksheet.

Performance against financial and non-financial performance metrics will be assessed at the end of
each quarter once the Company’s financial results have been prepared and approved. Based on the
achievement of these metrics, incentive payments will be made on a quarterly basis as set forth
below. Payments for the second through fourth quarters are net of any payments in prior quarters.
As an example, if a participant has an on-target incentive opportunity of $10,000 and all financial
and non-financial performance metrics are 100% on-target throughout the year, incentive payments
would be as follows:

 

 

 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Q1	 	 	Q2	 	 	Q3	 	 	Q4	 	 	Total	 
	% of Annual On-Target Incentive
	 	 	12.5	%	 	 	17.5	%	 	 	30.0	%	 	 	40.0	%	 	 	100	%
	$ Amount of Quarterly Incentive
	 	$	1,250	 	 	$	1,750	 	 	$	3,000	 	 	$	4,000	 	 	$	10,000	 
	Cumulative % of Annual
On-Target Incentive
	 	 	12.5	%	 	 	30.0	%	 	 	60.0	%	 	 	100	%	 	 	 	 
	Cumulative $ of Annual
On-Target Incentive
	 	$	1,250	 	 	$	3,000	 	 	$	6,000	 	 	$	10,000	 	 	 	 	 

Any payment, in whole or in part, shall be made through the Company’s normal payroll processes and
will be net of any appropriate income tax, social security contributions or other relevant
deductions. Payments will be made to each participant provided that the participant remains an
active employee in good standing at the time of payout. The Plan is intended to be exempt from
section 409A of the Internal Revenue Code of 1986, as amended. In no event will any payment be
made subsequent to March 15, 2011.

Financial and Non-Financial Performance Metrics

Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization excluding stock
based compensation expense) will be the key metric used to determine the incentive pool and the
actual incentive available to be paid. If the actual Adjusted EBITDA is less than the minimum
number outlined on the individual participant’s Worksheet, no incentive will be paid.
Additionally, if revenue falls below certain percentages of the target revenue number, incentives
will be reduced by the total percentage shortfall (i.e., the shortfall from 100%).

Non-financial performance metrics may also be established for individual participants in the Plan
and the achievement of such non-financial performance metrics will also be a factor in determining
the amount of incentive to be paid. The Compensation Committee and Chief Executive Officer of the
Company will have the discretion to reduce any employee’s incentive payout based on its subjective
assessment of the employee’s achievement of such non-financial performance metrics and the
employee’s individual performance throughout the year. Additionally, subject to the approval of
the Compensation Committee, metrics may be adjusted by the Chief Executive Officer of the Company
to reflect the occurrence of business events that could impact the numbers either positively or
negatively.

Overachievement

Overachievement incentive opportunity is based on exceeding Adjusted EBITDA targets. Any
overachievement incentive must be funded prior to the calculation of overachievement Adjusted
EBITDA. Overachievement incentive is capped at 100% of the annual on-target incentive amount and
will be assessed following the close of the operating year once the Company’s final annual results
have been prepared and approved.

2

 

Clawback of Amounts

In the event that any amount paid to a participant under this Plan is shown to be directly
attributable to errors in the financial statements of the Company, the computation of Adjusted
EBITDA used under this Plan, any overpayment under the Plan, or the determinations related to the
achievement of any non-financial performance metrics (all as determined in the sole discretion of
the Compensation Committee) and such amount has been paid to the participant in the prior two (2)
years, such amounts shall be subject to repayment by the participant at the request of the Company
within forty-five (45) days of the such request. If an overpayment occurs under this Plan that is
not returned to the Company, the Company shall have the discretion to consider the overpayment in
awarding future incentive compensation under this Plan or otherwise.

No Contract

Participation in the Plan does not create or infer a contract of employment.

Validity

The Plan is valid only for the calendar year January 1, 2010 — December 31, 2010.

3

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