Document:

exv4w1

 

Exhibit 4.1

$2,000,000,000

AMENDMENT NO. 1

dated as of May 4, 2006

to the Five-Year Credit Agreement

dated as of May 20, 2004

among

Marathon Oil Corporation

The Co-Agents and Other Lenders Party Hereto

Bank of America, N.A.,

as Syndication Agent

Citibank, N.A. and

Morgan Stanley Bank,

as Documentation Agents,

and

JPMorgan Chase Bank, N.A.,

as Administrative Agent

 

 

AMENDMENT NO. 1 TO FIVE-YEAR CREDIT AGREEMENT

     AMENDMENT dated as of May 4, 2006 to the Five-Year Credit Agreement dated as of May 20, 2004
(the “Credit Agreement”) among MARATHON OIL CORPORATION (the “Borrower”), the CO-AGENTS and other
LENDERS (the “Lenders”) party hereto, BANK OF AMERICA, N.A., as Syndication Agent, CITIBANK, N.A.
and MORGAN STANLEY BANK, as Documentation Agents and JPMORGAN CHASE BANK, N.A., as Administrative
Agent (the “Administrative Agent”).

W I T N E S S E T H :

     WHEREAS, the parties hereto desire to amend the Credit Agreement as set forth herein;

     NOW, THEREFORE, the parties hereto agree as follows:

     Section 1. Defined Terms; References. Unless otherwise specifically
defined herein, each term used herein that is defined in the Credit Agreement has the meaning
assigned to such term in the Credit Agreement. Each reference to “hereof”, “hereunder”, “herein”
and “hereby” and each other similar reference and each reference to “this Agreement” and each other
similar reference contained in the Credit Agreement shall, after this Amendment becomes effective,
refer to the Credit Agreement as amended hereby.

     Section 2. Amendments.

     (a) The definition of “Borrower’s 2003 Form 10-K” in Section 1.01 of the Credit Agreement is
replaced as follows:

     “Borrower’s 2005 Form 10-K” means the Borrower’s annual report on Form 10-K for 2005,
as filed with the SEC pursuant to the Exchange Act.

     (b) The definition of “Documentation Agents” in Section 1.01 of the Credit Agreement is
amended to read in its entirety as follows:

     “Documentation Agents” means Citibank, N.A. and Morgan Stanley Bank, in their
capacity as documentation agents in connection with the credit facility provided under
this Agreement.

     (c) The definition of “MAP Facility” in Section 1.01 of the Credit Agreement is deleted.

 

 

     (d) The definition of “Required Lenders” is amended to read in its entirety as follows:

          “Required Lenders” means at any time, Lenders having more than 50% in aggregate
amount of the Credit Exposures at such time.

     (e) The definition of “Termination Date” in Section 1.01 of the Credit Agreement is amended to
read in its entirety as follows:

          “Termination Date” means May 4, 2011, or such later date to which the Termination
Date may be extended pursuant to Section 2.19, or if any such date is not a Euro-Dollar
Business Day, the next preceding Euro-Dollar Business Day.

     (f) Section 2.16(b) of the Credit Agreement is amended by (x) changing the amount, specified
therein from $2,000,000,000 to $2,500,000,000 and (y) deleting “plus the amount of any Transfers
made pursuant to Section 2.17.”

     (g) Section 2.17 of the Credit Agreement is deleted and replaced with the word “Deleted”.

     (h) Section 2.19 of the Credit Agreement is inserted as follows:

     Section 2.19. Extension Option. (a) The Termination Date may be extended in the
manner set forth in this Section for a period of one year from the Termination Date then
in effect. If the Borrower wishes to request an extension of the Termination Date, the
Borrower shall give written notice to that effect to the Administrative Agent not less
than 30 days nor more than 90 days prior to each anniversary of the date hereof that
occurs on or prior to the Termination Date then in effect, whereupon the Administrative
Agent shall promptly notify each of the Lenders of such request. Each Lender will use its
best efforts to respond to such request, whether affirmatively or negatively, as it may
elect in its sole and absolute discretion, within 30 days of such notice to the
Administrative Agent. If any Lender shall not have responded affirmatively within such
30-day period, such Lender shall be deemed to have rejected the Borrower’s proposal to
extend its Commitment and only the Commitments of those Lenders which have responded
affirmatively shall be extended, subject to receipt by the Administrative Agent of
counterparts of an Extension Agreement in substantially the form of Exhibit I hereto (the
“Extension Agreement”) duly completed and signed by the Borrower, the Administrative Agent
and all of the Lenders which have responded affirmatively. No extension of the
Commitments pursuant to this Section 2.19 shall be legally binding on any party hereto
unless and until such Extension Agreement is so executed and delivered by Lenders having
more than 50% of the aggregate amount of the Commitments.

3

 

     (b) If any Lender rejects, or is deemed to have rejected, the Borrower’s proposal to
extend its Commitment, (A) this Agreement shall terminate on the Termination Date then in
effect with respect to such Lender, (B) the Borrower shall pay to such Lender on such
Termination Date any amounts due and payable to such Lender on such date and (C) the
Borrower may, if it so elects, designate a Person not theretofore a Lender and acceptable
to the Administrative Agent to become a Lender, or agree with an existing Lender that such
Lender’s Commitment shall be increased, provided that any designation or agreement may not
increase the aggregate amount of the Commitments. Upon execution and delivery by the
Borrower and such replacement Lender or other Person of an instrument of assumption in
form and amount satisfactory to the Administrative Agent and execution and delivery of the
Extension Agreement pursuant to Section 2.19(a), such existing Lender shall have a
Commitment as therein set forth or such other Person shall become a Lender with a
Commitment as therein set forth and all the rights and obligations of a Lender with such a
Commitment hereunder. On the date of termination of any Lender’s Commitment as
contemplated by this subsection (b), the respective participations of the other Lenders in
all outstanding Letters of Credit shall be redetermined on the basis of their respective
Commitments after giving effect to such termination, and the participation therein of the
Lender whose Commitment is terminated shall terminate; provided that the Borrower shall,
if and to the extent necessary to permit such redetermination of participations in Letters
of Credit within the limits of the Commitments which are not terminated, prepay on such
date a portion of the outstanding Loans, and such redetermination and termination of
participations in outstanding Letters of Credit shall be conditioned upon its having done
so.

     (c) The Administrative Agent shall promptly notify the Lenders of the effectiveness
of each extension of the Commitments pursuant to this Section 2.19.

     (i) Section 4.04(a) of the Credit Agreement is amended by changing the reference to the date
“December 31, 2003” to “December 31, 2005” and the reference to “Borrower’s 2003 Form 10-K” to
“Borrower’s 2005 Form 10-K”.

     (j) Section 4.04(b) of the Credit Agreement is deleted.

     (k) Section 4.04(c) of the Credit Agreement is amended by changing the reference to the date
“March 31, 2004” to “December 31, 2005”.

     (l) Section 4.05 of the Credit Agreement is amended by changing the reference to “Borrower’s
2003 Form 10-K” to “Borrower’s 2005 Form 10-K” and

4

 

by deleting the phrase “and in the Borrower’s quarterly report on Form 10-Q filed with the SEC
on May 4, 2004.”

     (m) Section 5.01(a) of the Credit Agreement is deleted and replaced with the following:

     (a) as soon as available and in any event within 75 days after the end of each fiscal
year of the Borrower (or such shorter period as may be required by the SEC), a
consolidated balance sheet of the Borrower as of the end of such fiscal year and the
related consolidated statements of income and cash flows for such fiscal year, setting
forth in each case in comparative form the figures for the previous fiscal year, all
reported on by PricewaterhouseCoopers LLP or other independent public accountants of
nationally recognized standing;

     (n) Section 9.06(b) of the Credit Agreement is amended to delete item (iv) and move the word
“and” that precedes it to precede item (iii).

     (o) The form of Extension Agreement referred to in Section 2(h) above, and attached hereto, is
added as “Exhibit I” to the Credit Agreement.

     Section 3. Changes in Commitments. With effect from and including the Amendment Effective
Date, (i) the Commitment of each Lender shall be the amount set forth opposite the name of such
Lender in the Commitment Schedule attached hereto and (ii) the Commitment Schedule attached hereto
shall replace the Commitment Schedule attached to the Credit Agreement. On the Amendment Effective
Date, any Lender party to the Credit Agreement which is not listed in the Commitment Schedule
attached hereto (each, an “Exiting Lender”) shall cease to be a Lender party to the Credit
Agreement, and all accrued fees and other amounts payable under the Credit Agreement for the
account of each Exiting Lender shall be due and payable on such date; provided that the provisions
of Sections 8.03, and 9.03 of the Credit Agreement shall continue to inure to the benefit of each
Exiting Lender after the Amendment Effective Date.

     Section 4. Changes in Pricing Schedule. The Pricing Schedule attached to the Credit
Agreement (the “Existing Pricing Schedule”) is deleted and replaced by the Pricing Schedule
attached to this Amendment (the “New Pricing Schedule”). The New Pricing Schedule shall apply to
interest and fees accruing under the Credit Agreement on and after the date hereof. The Existing
Pricing Schedule shall continue to apply to interest and fees accruing under the Credit Agreement
prior to the date hereof.

     Section 5. Representations of Borrower. The Borrower represents and
warrants that (i) the representations and warranties of the Borrower set forth in Article 4 of the
Credit Agreement will be true on and as of the Amendment

5

 

Effective Date and (ii) no Event of Default will have occurred and be continuing on such date.

     Section 6. Effect of Amendments. Except as expressly set forth herein, the amendments
contained herein shall not constitute a waiver or amendment of any term or condition of the Credit
Agreement, and all such terms and conditions shall remain in full force and effect and are hereby
ratified and confirmed in all respects.

     Section 7. Governing Law. This Amendment shall be governed by and
construed in accordance with the laws of the State of New York.

     Section 8. Counterparts. This Amendment may be signed in any number of
counterparts, each of which shall be an original, with the same effect as if the signatures thereto
and hereto were upon the same instrument.

     Section 9. Effectiveness. (a) This Amendment shall become effective as of
the date hereof (the “Amendment Effective Date”), subject to satisfaction of the following
conditions:

     (i) the Administrative Agent shall have received from each of the parties listed in
the signature pages hereof a counterpart hereof signed by such party or facsimile or other
written confirmation (in form satisfactory to the Administrative Agent) that such party
has signed a counterpart hereof; and

     (ii) the Administrative Agent shall have received an opinion of the General Counsel
or Assistant General Counsel of the Borrower dated as of the Amendment Effective Date, in
form and substance satisfactory to the Administrative Agent; and

     (iii) the Administrative Agent shall have received evidence satisfactory to it that
the Credit Agreement dated as of July May 20, 2004, among the Marathon Petroleum Company
LLC (formerly known as Marathon Ashland Petroleum LLC), the Lenders party thereto and
JPMorgan Chase Bank, N.A. as Administrative Agent (the “Existing MAP Credit Agreement”)
has been terminated.

     (b) Marathon Petroleum Company LLC and the other parties hereto, which other parties comprise
the “Required Lenders” as defined in the Existing MAP Credit Agreement, hereby agree that the
“Commitments” under the Existing MAP Credit Agreement shall terminate automatically upon the
effectiveness of this Amendment, without need for notice or other action by any party, and that
accrued facility fees and any other amounts payable under the Existing MAP Credit Agreement shall
be due and payable at such time.

6

 

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

	 	 	 	 	 
	 	 	MARATHON OIL CORPORATION
	 
	 	 	 	 
	 

	 	By:
	 	/s/ P.C. Reinbolt
	 

	 	 	 	 
	 

	 	 	 	Name: P.C. Reinbolt
	 

	 	 	 	Title: V.P. Finance & Treasurer

 

 

Solely for the purposes of Section 9(b):

	 	 	 	 	 
	 	 	MARATHON PETROLEUM COMPANY LLC
	 
	 	 	 	 
	 

	 	By:
	 	/s/ R.R. Young
	 

	 	 	 	 
	 

	 	 	 	Name: R.R. Young
	 

	 	 	 	Title: Treasurer

 

 

	 	 	 	 	 
	 	 	Administrative Agent
	 
	 	 	 	 
	 	 	JPMORGAN CHASE BANK, N.A., as
	 	 	      Administrative Agent and as Lender
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Beth Lawrence
	 

	 	 	 	 
	 

	 	 	 	Name: Beth Lawrence
	 

	 	 	 	Title: Managing Director

 

 

	 	 	 	 	 
	 	 	Syndication Agent
	 
	 	 	 	 
	 	 	BANK OF AMERICA, N.A., as Syndication
	 	 	      Agent and as Lender
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Ronald E. McKaig
	 

	 	 	 	 
	 

	 	 	 	Name: Ronald E. McKaig
	 

	 	 	 	Title: Senior Vice President

 

 

	 	 	 	 	 
	 	 	MORGAN STANLEY BANK, as a
	 	 	      Documentation Agent and as Lender
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Daniel Twenge
	 

	 	 	 	 
	 

	 	 	 	Name: Daniel Twenge
	 

	 	 	 	Title: Vice President
	 

	 	 	 	Morgan Stanley Bank

 

 

	 	 	 	 	 
	 	 	CITIBANK, N.A., as a Documentation
	 	 	      Agent and as Lender
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Amy Pincu
	 

	 	 	 	 
	 

	 	 	 	Name: Amy Pincu

Title: Attorney-in-fact

 

 

	 	 	 	 	 
	 	 	Lenders
	 
	 	 	 	 
	 	 	ABN AMRO BANK N.V.
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Joshua Wolf
	 

	 	 	 	 
	 

	 	 	 	Name: Joshua Wolf

Title: Vice President
	 
	 	 	 	 
	 

	 	By:
	 	/s/ M. Aamir Khan
	 

	 	 	 	 
	 

	 	 	 	Name: M. Aamir Khan

Title: Assistant Vice President

 

 

	 	 	 	 	 
	 	 	BNP PARIBAS
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Betsy Jocher
	 

	 	 	 	 
	 

	 	 	 	Name: Betsy Jocher
	 

	 	 	 	Title: Director
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Polly Schott
	 

	 	 	 	 
	 

	 	 	 	Name: Polly Schott
	 

	 	 	 	Title: Vice President

 

 

	 	 	 	 	 
	 	 	THE BANK OF TOKYO-MITSUBISHI UFJ, LTD.
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Kelton Glasscock
	 

	 	 	 	 
	 

	 	 	 	Name: Kelton Glasscock
	 

	 	 	 	Title: Vice President & Manager

 

 

	 	 	 	 	 
	 	 	DEUTSCHE BANK AG NEW YORK BRANCH
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Ming K. Chu
	 

	 	 	 	 
	 

	 	 	 	Name: Ming K. Chu
	 

	 	 	 	Title: Vice President
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Vincent Wong
	 

	 	 	 	 
	 

	 	 	 	Name: Vincent Wong
	 

	 	 	 	Title: Vice President

 

 

	 	 	 	 	 
	 	 	LEHMAN BROTHERS BANK, FSB
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Gary T. Taylor
	 

	 	 	 	 
	 

	 	 	 	Name: Gary T. Taylor
	 

	 	 	 	Title: Senior Vice President

 

 

	 	 	 	 	 
	 	 	NATIONAL CITY BANK
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Thomas E. Redmond
	 

	 	 	 	 
	 

	 	 	 	Name: Thomas E. Redmond
	 

	 	 	 	Title: Senior Vice President

 

 

	 	 	 	 	 
	 	 	THE BANK OF NOVA SCOTIA
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Nadine Bell
	 

	 	 	 	 
	 

	 	 	 	Name: Nadine Bell
	 

	 	 	 	Title: Senior Manager

 

 

	 	 	 	 	 
	 	 	SOCIETE GENERALE
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Stephen W. Warfel
	 

	 	 	 	 
	 

	 	 	 	Name: Stephen W. Warfel
	 

	 	 	 	Title: Director

 

 

	 	 	 	 	 
	 	 	FIFTH THIRD BANK
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Christopher L. Motley
	 

	 	 	 	 
	 

	 	 	 	Name: Christopher L. Motley
	 

	 	 	 	Title: Vice President

 

 

	 	 	 	 	 
	 	 	THE BANK OF NEW YORK
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Craig J. Anderson
	 

	 	 	 	 
	 

	 	 	 	Name: Craig J. Anderson
	 

	 	 	 	Title: Vice President

 

 

	 	 	 	 	 
	 	 	COMERICA BANK
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Charles T. Johnson
	 

	 	 	 	 
	 

	 	 	 	Name: Charles T. Johnson
	 

	 	 	 	Title: Vice President

 

 

	 	 	 	 	 
	 	 	CREDIT SUISSE Cayman
Islands Branch
(F/K/A CREDIT SUISSE
FIRST BOSTON, acting
	 	 	through its Cayman
Islands
 Branch)
	 
	 	 	 	 
	 

	 	By:
	 	/s/ David Dodd
	 

	 	 	 	 
	 

	 	 	 	Name: David Dodd
	 

	 	 	 	Title: Vice President
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Mikhail Faybusovich
	 

	 	 	 	 
	 

	 	 	 	Name: Mikhail Faybusovich
	 

	 	 	 	Title: Associate

 

 

	 	 	 	 	 
	 	 	DNB NOR BANK ASA
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Jack Sun
	 

	 	 	 	 
	 

	 	 	 	Name: Jack Sun
	 

	 	 	 	Title: Vice President
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Giacomo Landi
	 

	 	 	 	 
	 

	 	 	 	Name: Giacomo Landi
	 

	 	 	 	Title: First Vice President

 

 

	 	 	 	 	 
	 	 	MIZUHO CORPORATE BANK, LTD.
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Raymond Ventura
	 

	 	 	 	 
	 

	 	 	 	Name: Raymond Ventura
	 

	 	 	 	Title: Deputy General Manager

 

 

	 	 	 	 	 
	 	 	THE ROYAL BANK OF SCOTLAND PLC
	 
	 	 	 	 
	 

	 	By:
	 	/s/ David Slye
	 

	 	 	 	 
	 

	 	 	 	Name: David Slye
	 

	 	 	 	Title: Vice President

 

 

	 	 	 	 	 
	 	 	STANDARD CHARTERED BANK
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Freida Youlios
	 

	 	 	 	 
	 

	 	 	 	Name: Freida Youlios
	 

	 	 	 	Title: Vice President
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Robert K. Reddington
	 

	 	 	 	 
	 

	 	 	 	Name: Robert K. Reddington
	 

	 	 	 	Title: AVP Credit Documentation
	 

	 	 	 	      Credit Risk Control

 

 

	 	 	 	 	 
	 	 	SUMITOMO MITSUI BANKING CORPORATION
	 
	 	 	 	 
	 

	 	By:
	 	/s/ William M. Ginn
	 

	 	 	 	 
	 

	 	 	 	Name: William M. Ginn
	 

	 	 	 	Title: General Manager

 

 

	 	 	 	 	 
	 	 	WACHOVIA BANK, NATIONAL ASSOCIATION
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Allison Newman
	 

	 	 	 	 
	 

	 	 	 	Name: Allison Newman
	 

	 	 	 	Title: Vice President

 

 

	 	 	 	 	 
	 	 	WILLIAM STREET COMMITMENT CORPORATION
(Recourse only to assets of William Street
Commitment Corporation)
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Mark Walton
	 

	 	 	 	 
	 

	 	 	 	Name: Mark Walton
	 

	 	 	 	Title: Assistant Vice President

 

 

	 	 	 	 	 
	 	 	US BANK, N.A.
	 
	 	 	 	 
	 

	 	By:
	 	/s/ M. Scott Donaldson
	 

	 	 	 	 
	 

	 	 	 	Name: M. Scott Donaldson
	 

	 	 	 	Title: Vice President

 

 

	 	 	 	 	 
	 	 	BAYERISCHE LANDESBANK,
acting through its Cayman Islands Branch
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Stephen Christenson
	 

	 	 	 	 
	 

	 	 	 	Name: Stephen Christenson
	 

	 	 	 	Title: First Vice President
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Norman McClave
	 

	 	 	 	 
	 

	 	 	 	Name: Norman McClave
	 

	 	 	 	Title: First Vice President

 

 

	 	 	 	 	 
	 	 	RIYAD BANK
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Keith S. Tenny
	 

	 	 	 	 
	 

	 	 	 	Name: Keith S. Tenny
	 

	 	 	 	Title: General Manager
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Richard P. Zimpfer
	 

	 	 	 	 
	 

	 	 	 	Name: Richard P. Zimpfer, II
	 

	 	 	 	Title: Vice President & Controller

 

 

	 	 	 	 	 
	 	 	BANCO BILBAO VIZCAYA ARGENTARIA
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Hector O. Villegas
	 

	 	 	 	 
	 

	 	 	 	Name: Hector O. Villegas
	 

	 	 	 	Title: Vice President Global Corporate Banking
	 
	 	 	 	 
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Mirat Vizan
	 

	 	 	 	 
	 

	 	 	 	Name: Mirat Vizan
	 

	 	 	 	Title: VP Global Corp Banking

 

 

	 	 	 	 	 
	 	 	AMEGY BANK NATIONAL ASSOCIATION
	 
	 	 	 	 
	 

	 	By:
	 	/s/ W. Bryan Chapman
	 

	 	 	 	 
	 

	 	 	 	Name: W. Bryan Chapman
	 

	 	 	 	Title: Senior Vice President,
	 

	 	 	 	     Manager-Energy Lending

 

 

	 	 	 	 	 
	 	 	ARAB BANKING CORPORATION
	 
	 	 	 	 
	 

	 	By:
	 	/s/ L.C. Rigby
	 

	 	 	 	 
	 

	 	 	 	Name: L.C. Rigby
	 

	 	 	 	Title: VP
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Barbara C. Sanderson
	 

	 	 	 	 
	 

	 	 	 	Name: Barbara C. Sanderson
	 

	 	 	 	Title: VP Head of Credit

 

 

COMMITMENT SCHEDULE

	 	 	 	 	 
	Lender	 	Commitment	 
	JPMorgan Chase Bank, N.A.
	 	$	185,000,000	 
	Bank of America, N.A.
	 	$	185,000,000	 
	Morgan Stanley Bank
	 	$	185,000,000	 
	Citibank, N.A.
	 	$	165,000,000	 
	ABN Amro Bank, N.V.
	 	$	85,000,000	 
	BNP Paribas
	 	$	85,000,000	 
	The Bank of Tokyo-Mitsubishi UFJ, Ltd.
	 	$	85,000,000	 
	Deutsche Bank AG
	 	$	85,000,000	 
	Lehman Brothers Bank, FSB
	 	$	85,000,000	 
	National City Bank
	 	$	85,000,000	 
	The Bank of Nova Scotia
	 	$	85,000,000	 
	Societe Generale
	 	$	85,000,000	 
	Fifth Third Bank
	 	$	60,000,000	 
	The Bank of New York
	 	$	40,000,000	 
	Comerica
	 	$	40,000,000	 
	Credit Suisse, Cayman Branch
	 	$	40,000,000	 
	DnB NOR Bank ASA
	 	$	40,000,000	 
	Mizuho Corporate Bank, Ltd
	 	$	40,000,000	 
	The Royal Bank of Scotland plc
	 	$	40,000,000	 
	Standard Chartered Bank
	 	$	40,000,000	 
	Sumitomo Mitsui Banking Corporation
	 	$	40,000,000	 
	Wachovia Bank, National Association
	 	$	40,000,000	 
	William Street
	 	$	40,000,000	 
	U.S. Bank, N.A.
	 	$	40,000,000	 
	Bayerische Landesbank, Cayman Islands Branch
	 	$	28,000,000	 
	Riyad Bank
	 	$	22,000,000	 
	Banco Bilbao Vizcaya Argentaria
	 	$	20,000,000	 
	Amegy Bank National Association
	 	$	15,000,000	 
	Arab Banking Corporation
	 	$	15,000,000	 
	 
	 	 	 
	Total
	 	$	2,000,000,000	 
	 
	 	 	 

 

 

PRICING SCHEDULE

     Each of “Facility Fee Rate” and “Euro-Dollar Margin” means, for any day, the rate per annum
set forth below in the row opposite such term and in the column corresponding to the Pricing Level
and usage that apply on such date:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Pricing Level	 	Level I	 	Level II	 	Level III	 	Level IV	 	Level V
	Facility Fee Rate
	 	 	0.050	%	 	 	0.060	%	 	 	0.080	%	 	 	0.100	%	 	 	0.125	%
	Euro-Dollar
Margin,
	 	 
	Usage < 50%
	 	 	0.200	%	 	 	0.240	%	 	 	0.270	%	 	 	0.350	%	 	 	0.525	%
	Usage 3 50%
	 	 	0.250	%	 	 	0.290	%	 	 	0.320	%	 	 	0.450	%	 	 	0.625	%

     For purposes of this Schedule, the following terms have the following meanings, subject
to the concluding paragraph of this Schedule:

     “Level I Pricing” applies on any day on which the Borrower’s long-term debt is rated A or
higher by S&P or A2 or higher by Moody’s.

     “Level
II Pricing” applies on any day on which (i) the
Borrower’s long-term debt is rated A - or higher by S&P or A3 or higher by Moody’s and (ii) Level I Pricing does not apply.

     “Level III Pricing” applies on any day on which (i) the Borrower’s long-term debt is rated
BBB+ or higher by S&P or Baa1 or higher by Moody’s and (ii) none of Level I Pricing and Level II
Pricing applies.

     “Level IV Pricing” applies on any day on which (i) the Borrower’s long-term debt is rated BBB
or higher by S&P or Baa2 or higher by Moody’s and (ii) none of Level I Pricing, Level II Pricing
and Level III applies.

     “Level V Pricing” applies on any day if no other Pricing Level applies on such day.

     “Pricing Level” refers to the determination of which of Level I, Level II, Level III, Level
IV, or Level V Pricing applies on any day.

     The “Usage” applicable to any date is the percentage equivalent of a fraction the numerator of
which is the Total Outstanding Amount at such date and the denominator of which is the aggregate
amount of the Commitments at such date. If for any reason any Total Outstanding Amount remains
following the termination of the Commitments, Usage will be deemed to be 100%.

     The credit ratings to be utilized for purposes of this Schedule are those assigned to the
senior unsecured long-term debt securities of the Borrower without third-party credit enhancement,
and any rating assigned to any other debt security of the Borrower shall be disregarded. The
ratings in effect for any day are those in effect at the close of business on such day.

 

 

     In the case of split ratings from S&P and Moody’s, the rating to be used to determine the
applicable Pricing Level is the higher of the two (e.g., A-/Baa1 results in Level II Pricing);
provided that if the split is more than one full rating category, the intermediate (or higher of
the two intermediate ratings) will be used (e.g., A-/Baa2 results in Level III Pricing, as does
A-/Baa3).

 

 

EXHIBIT I

FORM OF EXTENSION AGREEMENT

JPMorgan Chase Bank, N.A.

as Administrative Agent

under the Five-Year Credit Agreement

referred to below

Ladies and Gentlemen:

     The undersigned hereby agrees to extend, effective [Extension Date], the Termination Date
under the Five-Year Credit Agreement dated as of May 20, 2004 (as amended from time to time, the
“Five-Year Credit Agreement”) among Marathon Oil Corporation (the “Borrower”), the Lenders party
thereto (the “Lenders”) and JPMorgan Chase Bank, N.A., as Administrative Agent (the “Administrative
Agent”), for one year to [date to which the Termination Date is extended]. Terms defined in the
Five-Year Credit Agreement are used herein with the same meaning.

     This Extension Agreement shall be construed in accordance with and governed by the law of the
State of New York.

	 	 	 	 	 
	 	 	[LENDERS]
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Name:
	 

	 	 	 	Title:

	 	 	 	 	 
	 

	 	 	 	 
	Agreed and accepted:	 	 
	 
	 	 	 	 
	MARATHON OIL CORPORATION	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 	 	 	 	 
	 

	 	Name:	 	 
	 

	 	Title:	 	 
	 
	 	 	 	 
	JPMORGAN CHASE BANK, N.A., as
Administrative Agent	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 	 	 	 	 
	 

	 	Name:	 	 
	 

	 	Title:exv10w2

 

Exhibit 10.2

D.R. HORTON, INC.

NON-QUALIFIED STOCK OPTION AGREEMENT

(Term Vesting)

                     ___, 200X

     WHEREAS,                                                              (hereinafter called the “Participant”) is a key employee of
D.R. Horton, Inc., a Delaware corporation (hereinafter called the “Company”);

     WHEREAS, the grant of Options to the Participant effective                      ___, 2006 (the “Date of
Grant”), and the execution of a Stock Option Agreement in the form hereof has been duly authorized
by [a resolution of the] Committee duly adopted on                      ___, 2006, and incorporated herein by
reference; and

     WHEREAS, the option granted hereby is intended to be a non-qualified stock option and shall
not be treated as an “incentive stock option” within the meaning of that term under Section 422A of
the Code.

     NOW, THEREFORE, effective as of the Date of Grant, the Company hereby grants to the
Participant a non-qualified option pursuant to the Company’s 2006 Stock Incentive Plan (the
“Plan”) to purchase
                                        
shares of Common Stock at the price of [                                         Dollars
($                    )] per share (the “Option Price”), and agrees to cause certificates for any shares
purchased hereunder to be delivered to the Participant upon payment of the aggregate Option Price
in full, all subject, however, to the terms and conditions hereinafter set forth. Capitalized
terms used in this Agreement that are not otherwise defined in this Agreement are used as defined
in the Plan.

 

 

     1. (A) This option (until terminated as hereinafter provided) shall become exercisable as
follows:

	 	 	 	 	 
	Time Period	 	 	 	Number of Shares for
	After Date of Grant	 	 	 	Which Option is Exercisable
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	 	 	 

          Except as otherwise provided in paragraph 3, this option shall be exercisable only if the
Participant shall have been in the continuous employ of the Company or any Subsidiary from the date
hereof until this option is exercised. For the purposes of this paragraph, leaves of absence
approved by the Board for illness, disability, military or governmental service, or other cause,
shall be considered as employment. To the extent exercisable, this option may be exercised in
whole or in part from time to time.

          (B) Notwithstanding the provisions of subparagraph (A) of this paragraph 1, this option shall
be exercisable to the extent of 100% of the shares hereinabove specified upon the occurrence of any
Change in Control (as hereinafter defined) of the Company. For purposes of this Agreement, a
“Change in Control” means the occurrence of any of the following events:

     (i) A merger, consolidation or reorganization of the Company into or with

2

 

another
corporation or other legal person if the stockholders of the Company, immediately
before such merger, consolidation or reorganization, do not,
immediately following such merger, consolidation or reorganization, then own directly
or indirectly, more than 50% of the combined voting power of the then-outstanding
voting securities of the corporation or other legal person resulting from such merger,
consolidation or reorganization in substantially the same proportion as their
ownership of Voting Securities (as hereinafter defined) immediately prior to such
merger, consolidation or reorganization;

     (ii) The Company sells all or substantially all of its assets to another corporation
or other legal person, or there is a complete liquidation or dissolution of the
Company;

     (iii) There is a report filed on Schedule 13D or Schedule 14D-1 (or any successor
schedule, form or report), each as promulgated pursuant to the Securities Exchange Act
of 1934, as amended (the “Exchange Act”), disclosing that any person (as the term
“person” is used in Section 13(d)(3) or Section 14(d)(2) of the Exchange Act) has
become the beneficial owner (as the term “beneficial owner” is defined under Rule
13d-3 or any successor rule or regulation promulgated under the Exchange Act) of
securities representing 20% or more of the combined voting power of the
then-outstanding voting securities of the Company (“Voting Securities”) (computed in
accordance with the standards for the computation of total percentage ownership for
the purposes of Schedule 13D or Schedule 14D-1 (or any successor schedule, form or
report)); or

     (iv) The Company files a report or proxy statement with the Securities and Exchange
Commission pursuant to the Exchange Act disclosing in response to Form 8-K or Schedule
14A (or any successor schedule, form or report or item therein) that a change in
control of the Company has occurred or will occur in the future pursuant to any
then-existing contract or transaction.

Notwithstanding the provisions set forth in (iii) or (iv) above, a “Change in Control” shall not be
deemed to have occurred for purposes of this Agreement solely because (i) the Company, (ii) any
Subsidiary, or (iii) any employee stock ownership plan or any other employee benefit plan of the
Company or any Subsidiary either files or becomes obligated to file a report or a proxy statement
under or in response to Schedule 13D, Schedule 14D-1, Form 8-K or Schedule 14A (or any successor
schedule, form or report or item therein) under the Exchange Act disclosing beneficial

3

 

ownership by it of Voting Securities, whether in excess of 20% or otherwise, or because the Company
reports that a change in control of the Company has occurred or will occur in the future by reason
of such beneficial ownership. For purposes of calculating beneficial ownership pursuant to this
subparagraph (B), any Voting Securities held by Donald R. Horton as of the date hereof or received
by Donald R. Horton in connection with any merger involving the Company and any affiliate of the
Company shall not be included in the calculation of beneficial ownership.

          (C) Notwithstanding the provisions of subparagraph (A) of this paragraph 1, this option shall
be exercisable to the extent of 100% of the shares hereinabove specified at the time the
Participant ceases to be an employee of the Company or any Subsidiary upon the occurrence of the
events described in subparagraph (B) or (D) of paragraph 3.

     2. The Option Price shall be payable (a) in cash or by check acceptable to the Company, (b) by
transfer to the Company of shares of Common Stock which have been owned by the Participant for more
than six months prior to the date of exercise and which have an aggregate market value per Share on
the date of exercise equal to the aggregate Option Price, or (c) by a combination of such methods
of payment.

     3. This option shall terminate on the earliest of the following dates:

          (A) Three months after (i) delivery to the Participant by the Company or a Subsidiary of
notice of termination of the Participant’s employment with the Company or a Subsidiary, other than
for any matter that constitutes a violation of the standard of employee conduct set forth in the
Company’s Employee Manual [or any employee code of conduct] as in effect on the date of such
termination, or (ii) delivery to the Company by the Participant of notice of the voluntary
termination by the Participant of the Participant’s employment with the Company or a Subsidiary;

4

 

          (B) One year after the Participant ceases to be an employee of the Company or a Subsidiary by
reason of [retirement under a retirement plan] of the Company or a Subsidiary, which retirement is
at or after normal retirement age provided for in such retirement plan;

          (C) Immediately upon the delivery to the Participant by the Company or a Subsidiary of notice
of termination of the Participant’s employment with the Company or a Subsidiary for any matter that
constitutes a violation of the standard of employee conduct set forth in the Company’s Employee
Manual as in effect on the date of such termination;

          (D) Two years after the death or permanent disability of the Participant if the Participant
dies or becomes permanently disabled while an employee of the Company or a Subsidiary; and

          (E) Ten years from the date on which this option was granted.

Nothing contained in this option shall limit whatever right the Company or a Subsidiary might
otherwise have to terminate the employment of the Participant. Except as otherwise provided in
subparagraph (C) of paragraph 1, after the termination of the Participant’s employment this option
shall be exercisable for the same number of shares for which it was exercisable prior to such
termination. In the event that the Participant’s employment terminates on the same date that a
Change in Control of the Company occurs, the Change in Control will be deemed to have occurred
prior to the termination of the Participant’s employment.

     4. This option is not transferable or exercisable except as provided in Paragraph 9 of the
Plan.

5

 

     5. If the Company shall be required to withhold any federal, state, local or foreign tax in
connection with the exercise of this option, it shall be a condition to such exercise that the
Participant pay or make provision satisfactory to the Company for payment of all such taxes.

     6. Upon each exercise of this option, the Company as promptly as practicable shall mail or
deliver to the Participant a stock certificate or certificates representing the shares then
purchased, and shall pay all stamp taxes payable in connection therewith. The issuance of such
shares and delivery of the certificate or certificates therefor shall, however, be subject to any
delay necessary to complete (a) the listing of such shares on any stock exchange upon which shares
of the same class are then listed, (b) such registration or qualification of such shares under any
state or federal law, rule or regulation as the Company may determine to be necessary or advisable,
and (c) the making of provision for the payment or withholding of any taxes required to be withheld
pursuant to any applicable law, in respect of the exercise of this option or the receipt of such
shares.

     EXECUTED at Fort Worth, Texas as of the date first above written.

	 	 	 	 	 	 	 
	 	 	D.R. HORTON, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

Donald R. Horton, Chairman of the Board
	 	 

     The undersigned Participant hereby acknowledges receipt of an executed original of this
Non-Qualified Stock Option Agreement and accepts the stock option granted thereunder.

	 	 	 	 	 	 	 
	 	 	 
	Participant,
	 	 	 	 	 	 
	 

	 	 

	 	 	 	 

6

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