Document:

Waiver and Tenth Amendment to Amended and Restated Credit Agreement

 Exhibit 10.1 
 WAIVER AND TENTH AMENDMENT TO 
 AMENDED AND RESTATED CREDIT AGREEMENT 
 This Waiver and Tenth Amendment to Amended and Restated Credit Agreement (this “Amendment”) dated as of November 26, 2007 (the
“Effective Date”), is by and among PENN VIRGINIA CORPORATION, a Virginia corporation (the “Borrower”), the Lenders (as defined in the Credit Agreement referred to below) party hereto, and JPMORGAN CHASE BANK, N.A.
(successor by merger to Bank One, N.A. (Main Office Chicago)) (the “Administrative Agent”). 
 R E C I T A L S: 

WHEREAS, the Borrower, each Lender then a party thereto, the Administrative Agent, the other agents party thereto, and the LC Issuer have heretofore
entered into that certain Amended and Restated Credit Agreement dated as of December 4, 2003, as amended by that certain Consent and First Amendment to Amended and Restated Credit Agreement dated as of December 29, 2004, and as
amended by that certain Second Amendment to Amended and Restated Credit Agreement dated as of December 15, 2005, and as amended by that certain Third Amendment to Amended and Restated Credit Agreement dated as of April 14, 2006,
and as amended by that certain Fourth Amendment to Amended and Restated Credit Agreement dated as of August 25, 2006, and as amended by that certain Fifth Amendment to Amended and Restated Credit Agreement dated as of
November 1, 2006, and as amended by that certain Sixth Amendment to Amended and Restated Credit Agreement dated as of April 13, 2007, and as amended by that certain Seventh Amendment to Amended and Restated Credit Agreement dated
as of June 12, 2007 (the “Seventh Amendment”), and as amended by that certain Waiver and Eighth Amendment to Amended and Restated Credit Agreement dated as of August 1, 2007, and as amended by that certain Waiver
and Ninth Amendment to Amended and Restated Credit Agreement dated as of October 5, 2007, and as otherwise amended, supplemented or modified from time to time prior to the Effective Date (the “Credit Agreement”), pursuant
to which the Lenders have agreed to make revolving credit loans to, and participate in letters of credit issued for, the benefit of the Borrower under the terms and provisions stated therein; and 
 WHEREAS, the Borrower has requested that the Administrative Agent and the Lenders amend certain provisions of the Credit Agreement as set forth herein to
expand the types of unsecured notes that the Borrower is permitted to issue to include not only senior unsecured notes (as permitted by the Seventh Amendment), but also subordinated unsecured notes or convertible unsecured notes (or any combination
thereof, including senior unsecured convertible notes, subordinated unsecured convertible notes or senior subordinated unsecured convertible notes) under an indenture containing terms customary for unsecured notes of the applicable type; and

 WHEREAS, the Borrower currently intends to issue senior subordinated unsecured convertible notes in an aggregate principal amount of
$150,000,000 (as such principal amount may be increased by the Borrower and the underwriters depending upon the market demand for such notes or the exercise of any over-allotment rights (or both)), as will be permitted by the Credit Agreement as
amended hereby (the “Subordinated Convertible Offering”); and 

 WHEREAS, in connection with the Subordinated Convertible Offering, the Borrower also intends to purchase
for cash one or more call options (together, the “Purchased Call Option”) from one or more third parties (which may be a Lender or an affiliate thereof) with respect to a specified number of shares of the Borrower’s issued and
outstanding capital stock to be determined based on the aggregate principal amount of the Subordinated Convertible Offering (the “Purchased Call Shares”) at a strike price approximately equal to the conversion price of the senior
subordinated unsecured convertible notes offered under the Subordinated Convertible Offering (the “Conversion Price”); and 
 WHEREAS, in connection with the Subordinated Convertible Offering, the Borrower also intends to sell one or more warrants (together, the “Warrant”) to one or more third parties (which may be a Lender or an affiliate
thereof) with respect to a specified number of shares of the Borrower’s issued and outstanding capital stock to be determined (but anticipated to be equivalent in number to the number of Purchased Call Shares) (the “Warrant
Shares”) at a strike price in excess of the Conversion Price; and 
 WHEREAS, settlement or payments upon early termination of the
Purchased Call Option or the Warrant may occur in shares of such cash, capital stock or a combination thereof; and 
 WHEREAS, the
Borrower’s cost of the Purchased Call Option will be paid from the proceeds of the Subordinated Convertible Offering; and 
 WHEREAS,
the Borrower has requested that the Administrative Agent and the Lenders consent to the Purchased Call Option and the Warrant and waive any limitation set forth in the Credit Agreement (including, in particular, any limitation contained in the
negative covenants pertaining to Restricted Payments or Investments) or any other Loan Document that might otherwise restrict the Borrower from entering into the Purchased Call Option and the Warrant (or any component transaction thereof) or
exercising its rights or performing its obligations thereunder; and 
 WHEREAS, the Borrower has requested that the Lenders make certain
other modifications to the Credit Agreement as more particularly set forth below, subject to the terms and conditions set forth herein and in the Credit Agreement as amended hereby; and 
 WHEREAS, subject to the terms and conditions of this Amendment and the Credit Agreement, each of the Lenders party hereto and the Administrative Agent
have agreed to enter into this Amendment in order to effectuate such amendments and modifications to the Credit Agreement; 
 NOW, THEREFORE,
in consideration of the premises herein contained and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows: 
 Section 1. Definitions. Capitalized terms used in this Amendment, to the extent not otherwise defined herein, shall have the same meaning as
in the Credit Agreement. 
  

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 Section 2. Amendments to Credit Agreement. The Credit Agreement is hereby amended as follows:

 (a) The definition of “Permitted Refinancing Indebtedness” in Section 1.1 of the Credit Agreement is hereby
amended and restated in its entirety to provide as follows: 
 “ “Permitted Refinancing Indebtedness” means Indebtedness
(for purposes of this definition, “new Indebtedness”) incurred in exchange for, or proceeds of which are used to refinance, all or any portion of the Unsecured Notes (including any settlement payments or other obligations in respect of
Unsecured Notes for which a conversion election has been made by the holder of such Unsecured Note) (the “Refinanced Indebtedness”); provided that (a) the portion of such new Indebtedness incurred to refinance the Refinanced
Indebtedness is in an aggregate principal amount not in excess of the sum of (i) the aggregate principal amount then outstanding of the Refinanced Indebtedness (or, if the Refinanced Indebtedness is exchanged or acquired for an amount less than
the principal amount thereof to be due and payable upon a declaration of acceleration thereof, such lesser amount), and (ii) an amount necessary to pay any fees and expenses, including premiums, related to such exchange or refinancing;
(b) such new Indebtedness has a stated maturity no earlier than the date that is 91 days after the earlier of (i) the Facility Termination Date and (ii) the date on which there are no Loans, LC Obligations or other obligations
hereunder outstanding and all of the Commitments are terminated and an average life no shorter than the period beginning on the date of incurrence of such Indebtedness and ending on the date that is 91 days after the Facility Termination Date;
(c) such new Indebtedness does not contain any covenants that are more onerous to the Borrower and its Subsidiaries than those imposed by the Refinanced Indebtedness; (d) the stated interest or coupon rate of such new Indebtedness is
reasonably acceptable to the Administrative Agent; and (e) such new Indebtedness (and any Contingent Obligations in respect thereof) is unsecured.” 
 (b) The definition of “Redemption” in Section 1.1 of the Credit Agreement is hereby amended by deleting the reference
therein to “Senior Notes” and inserting in place thereof the words “Unsecured Notes”. 
 (c)
Section 1.1 of the Credit Agreement is hereby amended by inserting in the alphabetically appropriate places the new defined terms “Unsecured Notes”, “Unsecured Notes Documents” and “Unsecured Notes Indenture”:

 “ “Unsecured Notes” means any senior unsecured notes, senior unsecured convertible notes, subordinated unsecured
notes, subordinated unsecured convertible notes, or senior subordinated 

  

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unsecured convertible notes, in each case, issued by the Borrower in one or more transactions on or after November 21, 2007.” 
 “ “Unsecured Notes Documents” means, as applicable, both individually and collectively, any Unsecured Notes and any related
Unsecured Notes Indenture.” 
 “ “Unsecured Notes Indenture” means, collectively, any indenture by and among the
Borrower, as issuer, and a trustee, and any and all related documentation entered into in connection therewith, pursuant to which Unsecured Notes shall have been issued, as the same may be amended, restated, modified or supplemented from time to
time.” 
 (d) Section 1.1 of the Credit Agreement is hereby amended by deleting the defined terms “Senior
Notes”, “Senior Notes Documents” and “Senior Notes Indenture”. 
 (e) Each of Sections 5.4 and 5.16
of the Credit Agreement is hereby amended by deleting each reference therein to the words “Senior Notes Document” and inserting in place thereof the words or “Unsecured Notes Documents”. 
 (f) Section 5.28 of the Credit Agreement is hereby amended and restated in its entirety to provide as follows: 
 “ 5.28. Seniority Designation. For the purposes of the Unsecured Notes Documents or any Permitted Refinancing Indebtedness, the Obligations
have been irrevocably designated as “senior indebtedness” (or such other applicable term denoting seniority) ranking, as applicable, equally in right of payment with any senior unsecured notes (including any such notes that are
convertible) issued under such Unsecured Notes Documents and senior in right of payment to any subordinated unsecured notes or senior subordinated unsecured notes (including any such notes that are convertible) issued under such Unsecured Notes
Documents without giving effect to rights in the Collateral of the Administrative Agent, the LC Issuer, the Lenders and the other beneficiaries thereof.” 
 (g) Section 6.1.1(vi) of the Credit Agreement is hereby amended by deleting the word “Senior” in the parenthetical phrase
therein and inserting in place thereof the word “Unsecured”. 
 (h) Section 6.1.9(ii)(y) of the Credit
Agreement is hereby amended by deleting the word “Senior” therein and inserting in its place thereof the word “Unsecured”. 
  

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 (i) Each reference in Section 6.1.15 of the Credit Agreement (including the heading
of such section) to the words “Senior Notes” or “Senior Notes Indenture” is hereby deleted and replaced with the words “Unsecured Notes” and “Unsecured Notes Indenture”, respectively. 
 (j) Section 6.2.2(xi) of the Credit Agreement is hereby amended and restated in its entirety to provide as follows: 
 “(xi) unsecured Indebtedness of the Borrower under (a) Unsecured Notes and any Contingent Obligations of any other Loan Party in respect
thereof, in an aggregate principal amount not exceeding $400,000,000 at any time outstanding, provided that (1) such Unsecured Notes and any Unsecured Notes Indenture under which such Unsecured Notes are issued contain customary terms and
conditions for unsecured notes of similar type and of like tenor and amount and do not contain any covenants (other than in connection with a change of control or other fundamental change affecting the Borrower or a termination of trading with
respect to the Borrower’s capital stock) that are more onerous to the Borrower and its Subsidiaries than those imposed by this Agreement or the other Loan Documents, (2) the final stated maturity date of such Unsecured Notes and the
average life of such Unsecured Notes (based on the stated final maturity date and payment schedule provided at the date of issuance of such Unsecured Notes) shall not be earlier than 91 days after the Facility Termination Date (as in effect on the
date of issuance of such Unsecured Notes), and (3) at the time of and immediately after giving effect to each incurrence of such Indebtedness, no Unmatured Default shall have occurred and be continuing, and provided further that immediately
upon any incurrence of Indebtedness permitted by this clause (xi), the Borrowing Base then in effect shall be automatically reduced by an amount equal to (A) with respect to the first $300,000,000 of aggregate principal amount of such
Indebtedness incurred, 20% of such principal amount, and (B) with respect to any such Indebtedness incurred in excess of $300,000,000 in aggregate principal amount (if any), 30% of such excess principal amount, and (b) any Permitted
Refinancing Indebtedness in respect thereof. 
 (k) Section 6.2.4 of the Credit Agreement is hereby amended by deleting
the word “and” at the end of clause (b) therein, deleting the period at the end of such section and inserting the following new clause immediately following the end of clause (c) therein: 
 “, and (d) make any mandatory or optional cash payments or deliveries of the Borrower’s capital stock, or any combination thereof, in
settlement of its obligations under any Unsecured Notes 

  

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Documents upon the conversion or required repurchase of any Unsecured Notes thereunder.” 
 (l) Section 6.2.20 of the Credit Agreement is hereby amended and restated in its entirety to provide as follows: 
 “ 6.2.20. Repayment of Unsecured Notes; Amendment of Unsecured Notes Documents. The Borrower will not, and will not permit any Subsidiary to:
(i) call, make or offer to make any optional or voluntary Redemption of, or otherwise optionally or voluntarily Redeem, any of the Unsecured Notes or any Permitted Refinancing Indebtedness in respect thereof; provided, however, that the
Borrower may prepay the Unsecured Notes or any Permitted Refinancing Indebtedness with the proceeds of (A) any Permitted Refinancing Indebtedness, (B) the net cash proceeds of a sale of capital stock (other than Disqualified Capital Stock)
of the Borrower that is contemporaneous with such Permitted Refinancing Debt, or (C) a combination of any Permitted Refinancing Indebtedness and the net cash proceeds of a sale of capital stock (other than Disqualified Capital Stock) of the
Borrower that is contemporaneous with such Permitted Refinancing Debt, and provided further that so long as no Default shall then exist, the Borrower shall be permitted to make any mandatory or optional cash payments or deliveries of the
Borrower’s capital stock, or any combination thereof, in settlement of its obligations under any Unsecured Notes Documents upon the conversion or required repurchase of any Unsecured Notes thereunder; or (ii) amend, modify, waive or
otherwise change, consent or agree to any amendment, modification, waiver or other change to, any of the terms of any Unsecured Notes Documents or any Permitted Refinancing Indebtedness if the effect thereof would be to shorten its maturity or
average life or increase the amount of any payment of principal thereof or increase the rate or shorten any period for payment of interest thereon, provided that the foregoing shall not prohibit the execution of (1) supplemental indentures
associated with the incurrence of additional Unsecured Notes to the extent permitted by Section 6.2.2(xi), (2) other indentures or agreements in connection with the issuance of Permitted Refinancing Debt, (3) supplemental indentures
to add guarantors if required by the terms of any Unsecured Notes Indenture provided such Person complies with Section 6.1.9(ii), or (4) amendments, modifications, waivers or other changes that are acceptable to the Administrative Agent
and not materially adverse to the Lenders. 
 Section 3. Waiver to Permit Call Spread Transaction. Each and every provision of
the Credit Agreement and any other Loan Document that restricts or limits the Borrower from entering into, or would be violated by the Borrower entering into, the Purchased Call Option or 

  

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the Warrant (or any component transaction thereof) or exercising its rights or performing its obligations thereunder, including, without limitation, the
provisions of Section 6.2.4 (limiting, among other things, dividends, distributions and capital stock redemptions by the Borrower) and the provisions of Section 6.2.5 (limiting, among other things, investments, loans and advances by the
Borrower), is hereby waived insofar as, and only insofar as, necessary to permit the Borrower to enter into and exercise its rights or perform its obligations under the Purchased Call Option or the Warrant. 
 Section 4. Conditions Precedent. The effectiveness of this Amendment is subject to the satisfaction of each of the following conditions
precedent: 
 (a) Executed Amendment. The Administrative Agent shall have received a counterpart of this Amendment duly
executed by the Borrower, the Administrative Agent and Lenders constituting the Required Lenders. 
 (b) Other
Conditions. The Borrower shall have confirmed and acknowledged to the Administrative Agent, the LC Issuer and the Lenders, and by its execution and delivery of this Amendment the Borrower does hereby confirm and acknowledge to the Administrative
Agent and the Lenders, that (i) the execution, delivery and performance of this Amendment has been duly authorized by all requisite corporate action on the part of the Borrower; (ii) the Credit Agreement and each other Loan Document to
which it is a party constitute valid and legally binding agreements enforceable against the Borrower in accordance with their respective terms, except as such enforceability may be limited by bankruptcy, insolvency, reorganization, moratorium,
fraudulent transfer or other similar laws relating to or affecting the enforcement of creditors’ rights generally and by general principles of equity; (iii) the representations and warranties made by the Borrower or any other Loan Party
contained in the Credit Agreement and in the other Loan Documents are true and correct on and as of the date hereof in all material respects as though made as of the date hereof; and (iv) no Default or Unmatured Default exists under the Credit
Agreement or any of the other Loan Documents. 
 Section 5. Ratification of Credit Agreement. Except as expressly amended,
modified or waived by this Amendment, the terms and provisions of the Credit Agreement and the other Loan Documents are ratified and confirmed in all respects and shall continue in full force and effect. 
 Section 6. Expenses. The Borrower agrees to pay on demand all expenses set forth in Section 9.6 of the Credit Agreement. 
 Section 7. Miscellaneous. (a) On and after the effectiveness of this Amendment, each reference in each Loan Document to “this
Agreement”, “this Note”, “this Mortgage”, “this Guaranty”, “this Pledge Agreement”, “hereunder”, “hereof” or words of like import, referring to such Loan Document, and each reference
in each other Loan Document to “the Credit Agreement”, “the Notes”, “the Mortgages”, “the Guaranty”, “the Pledge Agreement”, “thereunder”, “thereof” or words of like import
referring to the Credit Agreement, the Notes, or the Mortgage, the Guaranty, the Pledge Agreement or any of them, shall mean and be a reference to such Loan Document, the Credit Agreement, the Notes, the Mortgage, the Guaranty, the 

  

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Pledge Agreement or any of them, as amended or otherwise modified by this Amendment; (b) the execution, delivery and effectiveness of this Amendment
shall not operate as a waiver of any default of the Borrower or any right, power or remedy of the Administrative Agent or the Lenders under any of the Loan Documents, nor constitute a waiver of any provision of any of the Loan Documents;
(c) this Amendment may be executed in any number of counterparts and by different parties hereto in separate counterparts, each of which when so executed shall be deemed to be an original and all of which taken together shall constitute one and
the same agreement; and (d) delivery of an executed counterpart of a signature page to this Amendment by telecopier shall be effective as delivery of a manually executed counterpart of this Amendment. 
 Section 8. Severability. Any provisions of this Amendment held by court of competent jurisdiction to be invalid or unenforceable shall not
impair or invalidate the remainder of this Amendment and the effect thereof shall be confined to the provisions so held to be invalid or unenforceable. 
 Section 9. Applicable Law; Entire Agreement. THIS AMENDMENT AND EACH OTHER LOAN DOCUMENT DELIVERED PURSUANT HERETO (OTHER THAN THOSE CONTAINING A CONTRARY EXPRESS CHOICE OF LAW PROVISION) SHALL BE
CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF TEXAS (WITHOUT REGARD TO PRINCIPLES OF THE CONFLICTS OF LAW), BUT GIVING EFFECT TO FEDERAL LAWS APPLICABLE TO NATIONAL BANKS. 
 Section 10. Successors and Assigns. This Amendment is binding upon and shall inure to the benefit of the Agents, the LC Issuer, the Lenders
and the Borrower and their respective successors and assigns. 
 Section 11. Counterparts. This Amendment may be executed in any
number of counterparts, all of which taken together shall constitute one agreement, and any of the parties hereto may execute this Amendment by signing any such counterpart. 
 Section 12. Headings. The headings, captions, and arrangements used in this Amendment are for convenience only and shall not affect the
interpretation of this Amendment. 
 Section 13. NO ORAL AGREEMENTS. THIS AMENDMENT AND ALL OTHER INSTRUMENTS, DOCUMENTS AND
AGREEMENTS EXECUTED AND DELIVERED IN CONNECTION HEREWITH REPRESENT THE FINAL AGREEMENT AMONG THE PARTIES WITH RESPECT TO THE MATTERS HEREIN CONTAINED, AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS
BETWEEN THE PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS AMONG THE PARTIES. 
 [Signature pages follow] 
  

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 EXECUTED as of the day and year first above written. 
  

			
	BORROWER:
	
	 PENN VIRGINIA CORPORATION,
 as
Borrower

		
	By:	 	 /s/ Frank A. Pici

	Name:	 	Frank A. Pici
	Title:	 	Executive Vice President and Chief Financial Officer
	
	ADMINISTRATIVE AGENT AND LENDERS
	
	JPMORGAN CHASE BANK, N.A. (successor by merger to Bank One, N.A. (Main Office Chicago)), as Administrative Agent and as a Lender
		
	By:	 	 /s/ Jo Linda Papadakis

	Name:	 	Jo Linda Papadakis
	Title:	 	Vice President
	
	WACHOVIA BANK, NATIONAL ASSOCIATION, as a Lender
		
	By:	 	 /s/ Lawrence P. Sullivan

	Name:	 	Lawrence P. Sullivan
	Title:	 	Managing Director
	
	ROYAL BANK OF CANADA, as a Lender
		
	By:	 	 /s/ Don J. McKinnerney

	Name:	 	Don J. McKinnerney
	Title:	 	Authorized Signatory

  

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	BNP PARIBAS, as a Lender
		
	By:	 	 /s/ Betsy Jocher

	Name:	 	Betsy Jocher
	Title:	 	Director
		
	and	 	
		
	By:	 	 /s/ Polly Schott

	Name:	 	Polly Schott
	Title:	 	Vice President
	
	BANK OF AMERICA, N.A., successor by merger to Fleet National Bank, as a Lender
		
	By:	 	 /s/ Adam H. Fey

	Name:	 	Adam H. Fey
	Title:	 	Vice President
	
	 COMERICA BANK,
 as a
Lender

		
	By:	 	 /s/ Josh Strong

	Name:	 	Josh Strong
	Title:	 	Assistant Vice President
	
	 PNC BANK, NATIONAL ASSOCIATION,
 as a
Lender

		
	By:	 	 /s/ Holly L. Kay

	Name:	 	Holly L. Kay
	Title:	 	Assistant Vice President

  

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	 FORTIS CAPITAL CORP.,
 as a Lender

		
	By:	 	 /s/ Ilene Fowler

	Name:	 	Ilene Fowler
	Title:	 	Director
		
	and	 	
		
	By:	 	 /s/ Darrell Holley

	Name:	 	Darrell Holley
	Title:	 	Managing Director
	
	 MIZUHO CORPORATE BANK, LTD.,
 as a
Lender

		
	By:	 	 /s/ Raymond Ventura

	Name:	 	Raymond Ventura
	Title:	 	Deputy General Manager
	
	 WELLS FARGO BANK, N.A.,
 as a Lender

		
	By:	 	 /s/ Thomas E. Stelmar, Jr.

	Name:	 	Thomas E. Stelmar, Jr.
	Title:	 	AVP/Portfolio Manager
	
	 CAPITAL ONE N.A.,
 as a
Lender

		
	By:	 	 /s/ Stan G. Weiser Jr.

	Name:	 	Stan G. Weiser Jr.
	Title:	 	Vice President

  

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 ACKNOWLEDGMENT BY GUARANTORS 
 Each of the undersigned Guarantors hereby (i) consents to the terms and conditions of that certain Waiver and Tenth Amendment to Amended and
Restated Credit Agreement dated as of November 26, 2007 (the “Tenth Amendment”), (ii) acknowledges and agrees that its consent is not required for the effectiveness of the Tenth Amendment, (iii) ratifies and
acknowledges its respective Obligations under each Loan Document to which it is a party, and (iv) represents and warrants that (a) no Default or Unmatured Default has occurred and is continuing, (b) it is in full compliance with all
covenants and agreements pertaining to it in the Loan Documents, and (c) it has reviewed a copy of the Tenth Amendment. 
  

			
	
	 PENN VIRGINIA HOLDING CORP.,
 a
Delaware corporation

	
	PENN VIRGINIA OIL & GAS CORPORATION, a Virginia corporation
	
	 PENN VIRGINIA OIL & GAS GP LLC, 
 a Delaware limited liability company

	
	 PENN VIRGINIA OIL & GAS LP LLC, 
 a Delaware limited liability company

	
	 PENN VIRGINIA MC CORPORATION,
 a
Delaware corporation

	
	PENN VIRGINIA MC ENERGY L.L.C., a Delaware limited liability company
	
	PENN VIRGINIA MC OPERATING COMPANY L.L.C., a Delaware limited liability company
	
	 PENN VIRGINIA OIL & GAS, L.P., 
 a Texas limited partnership

		
		 	By Penn Virginia Oil & Gas GP LLC,
		 	a Delaware limited liability company, as its general partner
		
	By	 	 /s/ Frank A. Pici

	Name:	 	Frank a. Pici
	Title:	 	Vice President and Chief Financial Officer

  

 S - 4Employment Agreement - Elizabeth A. Olek

 Exhibit 10.1 
 EMPLOYMENT AGREEMENT 
 THIS EMPLOYMENT AGREEMENT (the “Agreement”), effective as of the 6th day of
November 2007, is entered into by Achillion Pharmaceuticals, Inc., a Delaware corporation with its principal place of business at 300 George Street, New Haven, CT 06511-6624 (the “Company”), and Elizabeth A. Olek, B.S.Pharm., D.O., M.P.H.,
residing at 235 West End Avenue, Apartment 3H, New York, New York (the “Employee”). 
 WHEREAS, the Company desires to engage the
services of the Employee and the Employee desires to be employed by the Company. 
 NOW, THEREFORE, in consideration of the employment of the
Employee, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Company and the Employee agree as follows: 
 1. Term of Employment. The Company hereby agrees to employ the Employee, and the Employee hereby accepts employment with the Company, upon the terms set forth in this Agreement, for the period commencing on
December 3, 2007 (the “Commencement Date”) and ending on December 31, 2008 (such period as it may be extended, the “Employment Period”), unless sooner terminated in accordance with the provisions of Section 4. This
agreement shall automatically renew for successive one-year periods unless, at least six months prior to the expiration of the applicable Employment Period, either party has notified the other party that this Agreement shall not so renew.

 2. Title; Capacity. The Employee shall serve as Vice President, Drug Development and Chief Medical Officer, or in such other
reasonably comparable position as the Board of Directors (the “Board”) may determine from time to time. The Employee shall be based at the Company’s headquarters in New Haven, Connecticut, or such place or places in the continental
United States as the Board shall determine. The Employee shall be subject to the supervision of, and shall have such authority as is delegated to the Employee by, the Board. The Board may also designate an officer of the Company to whom you shall
report. 
 The Employee hereby accepts such employment and agrees to undertake the duties and responsibilities inherent in such position and
such other duties and responsibilities as the Board shall from time to time reasonably assign to the Employee. The Employee agrees to devote his or her entire business time, attention and energies to the business and interests of the Company during
the Employment Period. The Employee agrees to abide by the rules, regulations, instructions, personnel practices and policies of the Company and any changes therein which may be adopted from time to time by the Company. The Employee will be eligible
to participate in the Company’s performance review process. 
 3. Compensation and Benefits. 
 3.1 Salary. The Company shall pay the Employee, in periodic installments in accordance with the Company’s customary payroll practices, an
annual base salary of $240,000 for the period commencing on the Commencement Date. Such salary shall be subject to increase thereafter as determined by the Board. 

 3.2 Bonus. The Employee shall be eligible to receive additional compensation of up to 30% of the
Employee’s then current base salary based upon the Employee’s achievement of certain performance goals mutually agreed upon between the Employee and the Board. 
 3.3 Fringe Benefits. The Employee shall be entitled to participate in all benefit programs that the Company establishes and makes available to its employees, if any, to the extent that Employee’s position,
tenure, salary, age, health and other qualifications make him or her eligible to participate. 
 3.4 Reimbursement of Expenses. The
Company shall reimburse the Employee for all reasonable travel, entertainment and other expenses incurred or paid by the Employee in connection with, or related to, the performance of his or her duties, responsibilities or services under this
Agreement, in accordance with policies and procedures, and subject to limitations, adopted by the Company from time to time. 
 3.5
Equity. Upon the approval of the Board of Directors of the Company, the Employee shall be granted an incentive stock option for the purchase of 60,000 shares of the Company’s common stock, at a price per share equal to the fair market
value at the time of Board of Director approval. These shares shall vest over four years, with 25% of the shares subject to the grant vesting one year from date of employment and the remainder vesting in equal quarterly installments for the
three-year period thereafter. 
 3.6 Withholding. All salary, bonus and other compensation payable to the Employee shall be subject to
applicable withholding taxes. 
 4. Termination of Employment Period. The employment of the Employee by the Company pursuant to this
Agreement shall terminate upon the occurrence of any of the following: 
 4.1 Expiration of the Employment Period; 
 4.2 At the election of the Company, for Cause (as defined below), immediately upon written notice by the Company to the Employee, which notice shall
identify the Cause upon which the termination is based; 
 4.3 At the election of the Employee, for Good Reason (as defined below) within
twelve months following the consummation of a Corporate Transaction (as defined below), upon not less than two weeks’ prior written notice of termination, which notice shall identify the Good Reason upon which the termination is based;

 4.4 Upon the death or disability (as defined below) of the Employee; 
 4.5 At the election of the Company, upon not less than fifteen (15) days’ prior written notice of termination; or 
 4.6 At the election of the Employee, upon not less than fifteen (15) days’ prior written notice of termination. 
  

 2 

 5. Effect of Termination. 
 5.1 At-Will Employment. If the Employment Period expires pursuant to Section 1 hereof, then, unless the Company notifies the Employee to the
contrary, the Employee shall continue his or her employment on an at-will basis following the expiration of the Employment Period. Such at-will employment relationship may be terminated by either party at any time and shall not be governed by the
terms of this Agreement (except for Section 6 hereof). 
 5.2 Payments Upon Termination. 
 (a) In the event the Employee’s employment is terminated pursuant to Section 4.1, Section 4.2, Section 4.4 or Section 4.6, the
Company shall pay to the Employee the compensation and benefits otherwise payable to him or her under Sections 3.1 and 3.4 through the last day of his or her actual employment by the Company. 
 (b) In the event the Employee’s employment is terminated by the Employee pursuant to Section 4.3 or by the Company pursuant to
Section 4.5, the Company shall continue to pay to the Employee his or her salary as in effect on the date of termination until the earlier of (i) the date that is twelve (12) months after the date of termination or (ii) the date
upon which the Employee commences full-time employment with another Company. 
 5.3 Survival. The provisions of Sections 6, 8 and 10
shall survive the termination of this Agreement. 
 5.4 Effect of Termination on Equity. In the event the Employee’s employment
with the Company is terminated (i) by the Employee pursuant to Section 4.3 or (ii) within 12 months following a Corporate Transaction by the Company pursuant to Section 4.5, then 100% of the original number of shares of common
stock subject to stock option agreements shall immediately vest and become exercisable upon the date of the Employee’s termination. 
 5.5 Release. The payment to the Employee of the amount payable under Section 5.2(b) shall (i) be contingent upon the Employee’s entering into a binding release prepared by counsel to the Company and reasonably
acceptable to the Company and Employee in a form similar to the one attached hereto as Exhibit A and (ii) constitute the sole remedy of the Employee in the event of a termination of the Employee’s employment in the circumstances set forth
in Section 5.2(b). 
 6. Termination Obligations. 
 6.1 Return of Company’s Property. Employee hereby acknowledges and agrees that all personal property, including, without limitation, all books, manuals, records, reports, notes, contracts, lists,
blueprints and other documents or materials, or copies thereof, and equipment furnished to or prepared by Employee in the course of or incident to Employee’s employment, belong to Company and shall be promptly returned to Company upon
termination of Employee’s employment. Following termination, Employee will not retain any written or other tangible material containing any proprietary information of information pertaining to the Company’s proprietary information.

  

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 6.2 Cooperation in Pending Work. For a period of 45 days following any termination of
Employee’s employment, Employee shall fully cooperate with the Company in all matters relating to the winding up of pending work on behalf of the Company and the orderly transfer of work to other employees of the Company. Employee shall also
cooperate in the defense of any action brought by any third party against the Company that relates in any way to Employee’s acts or omissions while employed by the Company. 
 7. Effect of Corporate Transaction. In the event the Company consummates a Corporate Transaction that is not a Private Transaction (as defined
below), then an additional 25% of the original number of shares of common stock subject to stock option agreements shall immediately vest and become exercisable upon the date of the consummation of such transaction. 
 8. Non-Competition and Non-Solicitation Agreement; Non-Disclosure and Assignment of Inventions Agreement. The Employee shall execute,
simultaneously with the execution of this Agreement, the Non-Competition and Non-Solicitation Agreement attached hereto as Exhibit B, and the Non-Disclosure and Assignment of Inventions Agreement attached hereto at Exhibit C. 
 9. Definitions. For purposes of this Agreement, the following terms shall have the following meanings: 
 9.1 “Cause” shall mean (a) a good faith finding by the Company that (i) the Employee has failed to substantially perform his
or her reasonably assigned duties for the Company, or (ii) the Employee has engaged in dishonesty, gross negligence or misconduct, which dishonesty, gross negligence or misconduct has had a material adverse effect on the Company, (b) the
conviction of the Employee of, or the entry of a pleading of guilty or nolo contendere by the Employee to, any felony or (c) breach by the Employee of any material provision of this Agreement, any invention and non-disclosure agreement,
non-competition and non-solicitation agreement or other written agreement with the Company, which breach is not cured within thirty days written notice thereof. 
 9.2 “Corporate Transaction” shall mean the sale of all or substantially all of the capital stock (other than the sale of capital stock to one or more venture capitalists or other institutional
investors pursuant to an equity financing (including a debt financing that is convertible into equity) of the Company approved by a majority of the Board of Directors of the Company), assets or business of the Company, by merger, consolidation, sale
of assets or otherwise (other than a merger or consolidation in which all or substantially all of the individuals and entities who were beneficial owners of the Common Stock immediately prior to such transaction beneficially own, directly or
indirectly, more than 50% of the outstanding securities entitled to vote generally in the election of directors of the resulting, surviving or acquiring corporation in such transaction). 
 9.3 “Disability” shall mean the inability of the Employee, due to a physical or mental disability, for a period of 90 days, whether or
not consecutive, during any 360-day period to perform the services contemplated under this Agreement, with reasonable accommodation, as that term is defined under state or federal law. A determination of disability shall be made by a 

  

 4 

 
physician satisfactory to both the Employee and the Company, provided that if the Employee and the Company do not agree on a physician, the Employee
and the Company shall each select a physician and these two together shall select a third physician, whose determination as to disability shall be binding on all parties. 
 9.4 “Good Reason” shall exist upon (i) mutual written agreement by the Employee and the Board of Directors of the Company that Good Reason exists; (ii) the Employee being required by the
Company to relocate such that such Employee’s daily commute shall exceed 60 miles without the written consent of the Employee; (iii) any material breach by the Company or any successor thereto of any agreement to which the Employee
and the Company are parties, which breach is not cured within thirty days of written notice thereof; or (iv) demotion of the Employee to a position with responsibilities or compensation less than such Employee’s current position without
the prior consent of the Employee; provided, however, that nothing shall require the Employee to hold the same title or same functional role within an entity resulting from a Corporate Transaction so long as the Employee’s responsibilities or
compensation are not diminished. 
 9.5 “Private Transaction” shall mean any Corporate Transaction where the consideration
received or retained by the holders of the then outstanding capital stock of the Company does not consist of (i) cash or cash equivalent consideration, (ii) securities which are registered under the Securities Act of 1933, as amended, or
any successor statute (the “Securities Act”) and/or (iii) securities for which the Company or any other issuer thereof has agreed to file a registration statement within ninety (90) days of completion of the transaction for
resale to the public pursuant to the Securities Act. 
 10. Miscellaneous. 
 10.1 Entire Agreement; Modification. This Agreement constitutes the entire Agreement between the parties hereto with regard to the subject matter
hereof, superseding all prior understandings and agreements, whether written or oral, including the letter agreement dated October 24, 2007. The parties hereby agree that as of the date hereof, the letter agreement dated October 24, 2007
is of no further force or effect and the Company shall have no obligations to the Employee, and the Employee shall have not obligations to the Company, under such letter agreement. 
 10.2 Notices. Any notices delivered under this Agreement shall be deemed duly delivered three business days after it is sent by registered or
certified mail, return receipt requested, postage prepaid, or one business day after it is sent for next-business day delivery via a reputable nationwide overnight courier service, in each case to the address of the recipient set forth in the
introductory paragraph hereto. Either party may change the address to which notices are to be delivered by giving notice of such change to the other party in the manner set forth in this Section 10.2. 
 10.3 Pronouns. Whenever the context may require, any pronouns used in this Agreement shall include the corresponding masculine, feminine or neuter
forms, and the singular forms of nouns and pronouns shall include the plural, and vice versa. 
  

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 10.4 Amendment. This Agreement may be amended or modified only by a written instrument executed by
both the Company and the Employee and approved by a majority of the members of the Board of Directors of the Company. 
 10.5 Governing
Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Connecticut (without reference to the conflicts of laws provisions thereof). Any action, suit or other legal proceeding arising under or relating
to any provision of this Agreement shall be commenced only in a court of the State of Connecticut (or, if appropriate, a federal court located within Connecticut), and the Company and the Employee each consents to the jurisdiction of such a court.

 10.6 Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of both parties and their respective
successors and assigns, including any corporation with which, or into which, the Company may be merged or which may succeed to the Company’s assets or business, provided, however, that the obligations of the Employee are personal and shall not
be assigned by him or her. 
 10.7 Waivers. No delay or omission by the Company or Employee in exercising any right under this
Agreement shall operate as a waiver of that or any other right. A waiver or consent given by the Company or Employee on any one occasion shall be effective only in that instance and shall not be construed as a bar or waiver of any right on any other
occasion. 
 10.8 Captions. The captions of the sections of this Agreement are for convenience of reference only and in no way define,
limit or affect the scope or substance of any section of this Agreement. 
 10.9 Severability. In case any provision of this Agreement
shall be invalid, illegal or otherwise unenforceable, the validity, legality and enforceability of the remaining provisions shall in no way be affected or impaired thereby. 
 10.10 Employee’s Acknowledgments. The Employee acknowledges that he or she: (i) has read this Agreement; (ii) has been represented
in the preparation, negotiation, and execution of this Agreement by legal counsel of the Employee’s own choice or has voluntarily declined to seek such counsel; (iii) understands the terms and consequences of this Agreement; (iv) is
fully aware of the legal and binding effect of this Agreement; and (v) understands that the law firm of Wilmer Cutler Pickering Hale and Dorr LLP is acting as counsel to the Company in connection with the transactions contemplated by the
Agreement, and is not acting as counsel for the Employee. 
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 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year set forth
above. 
  

			
	Achillion Pharmaceuticals, Inc.
		
	By:	 	/S/  MICHAEL D. KISHBAUCH
		 	 Name: Michael D. Kishbauch
 Title: President and Chief
Executive Officer
 Date: November 3, 2007

  

	
	EMPLOYEE:
	
	/S/  ELIZABETH A. OLEK
	 Name: Elizabeth A. Olek
 Date: November 6,
2007

  

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