Document:

exhibit10-1.htm

Exhibit 10.1

Third Amendment

 

to

 

Fourth Amended and Restated Credit Agreement

 

Among

 

Linn Energy, LLC,

 

As Borrower,

 

BNP Paribas,

 

As Administrative Agent,

 

and

 

The Lenders Party Hereto

 

Dated as of June 2, 2010

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Third Amendment to Fourth Amended and Restated Credit Agreement

 

This Third Amendment to Fourth Amended and Restated Credit Agreement (this “Third Amendment”) dated as of June 2, 2010 (the “Third Amendment Effective Date”) is among Linn Energy, LLC, a limited liability company formed under the laws of the State of Delaware (the “Borrower”); each of the undersigned guarantors (the “Guarantors”, and together with the Borrower, the “Obligors”); each of the Lenders that is a signatory hereto; and BNP Paribas, as administrative agent for the Lenders (in such capacity, together with its successors, the “Administrative Agent”).

 

R E C I T A L S

 

A.          The Borrower, the Administrative Agent and the Lenders are parties to that certain Fourth Amended and Restated Credit Agreement dated as of April 28, 2009 (as the same has been amended, modified, supplemented or restated from time to time, the “Credit Agreement”), pursuant to which the Lenders have made certain credit available to and on behalf of the Borrower.

 

B.           The Borrower has requested and the Administrative Agent and the Majority Lenders have agreed to amend certain provisions of the Credit Agreement as more particularly set forth herein.

 

C.           NOW, THEREFORE, in consideration of the premises and the mutual covenants herein contained, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

 

Section 1.                    Defined Terms.  Each capitalized term which is defined in the Credit Agreement, but which is not defined in this Third Amendment, shall have the meaning ascribed such term in the Credit Agreement.  Unless otherwise indicated, all section references in this Third Amendment refer to the Credit Agreement.

 

Section 2.                     Amendments to Credit Agreement.

 

2.1           Amendments to Section 1.02.

 

(a)            The definition of “Agreement” is hereby amended and restated in its entirety to read as follows:

 

“‘Agreement’ means this Fourth Amended and Restated Credit Agreement, as amended by the First Amendment, the Second Amendment, the Third Amendment and as the same may from time to time be further amended, modified, supplemented or restated.”

 

(b)            The following new definitions are hereby added to Section 1.02 where alphabetically appropriate as follows:

 

“‘Acquisition Swap Agreement’ has the meaning assigned such term in Section 9.18(b).”

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“‘Aggregate Exposure’ means, as of any Test Date, the sum of all Exposures with respect to all Acquisition Swap Agreements.”

 

“‘Exposure’ means, with respect to any Acquisition Swap Agreement as of any Test Date, the amount (expressed as a positive) that would be owed by the Borrower or its Subsidiaries to the applicable counterparty or the amount (expressed as a negative) that would be owed to the Borrower or its Subsidiaries by the applicable counterparty, in each case under such Acquisition Swap Agreement on the immediately preceding Test Date, assuming that a settlement date under such Acquisition Swap Agreement had occurred on such immediately preceding Test Date.”

 

“‘Minimum Availability Amount’ means an amount equal to the greater of (a) $200,000,000 and (b) if the Aggregate Exposure is a positive number as of the most recent Test Date, 200% of such Aggregate Exposure.”

 

“‘Target Oil and Gas Properties’ has the meaning assigned such term in Section 9.18(b).”

 

“‘Termination Event Date’ means, with respect to any Acquisition Swap Agreement entered into in connection with a potential acquisition of Target Oil and Gas Properties (a) the date on which the obligation of the Borrower or one or more of its Subsidiaries to consummate the acquisition of such Target Oil and Gas Properties expires or terminates pursuant to the applicable purchase and sale agreement, (b) the date (which shall not be prior to the expiration of the 120 day period stated in clause 9.18(e)) on which Administrative Agent gives written notice to the Borrower that it has determined in good faith that the acquisition of such Target Oil and Gas Properties will not occur or (c) the date on which the purchase and sale agreement related to such Target Oil and Gas Properties is terminated.”

 

“‘Test Date’ means the first Business Day of each calendar week; provided, however, that if on the first Business Day of any calendar week the Aggregate Exposure shall exceed $100,000,000, then, for the period commencing on such Test Date to and including the first Business Day of the next succeeding calendar week thereafter on which the Aggregate Exposure shall be less than or equal to $100,000,000, the Aggregate Exposure shall be calculated at the end of each Business Day assuming that a settlement date had occurred on the immediately preceding Business Day.”

 

“‘Third Amendment’ means that certain Third Amendment to Fourth Amended and Restated Credit Agreement dated as of June 2, 2010 among the Borrower, the Lenders signatory thereto, the Guarantors signatory thereto and the Administrative Agent.”

 

“‘Third Amendment Effective Date’ has the meaning assigned to such term in the Third Amendment.”

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2.2           Amendment to Section 8.01(d).  Section 8.01(d) is hereby amended by inserting the following at the end of such section:

 

“In addition, the Borrower shall deliver the items required pursuant to Section 9.18(c) in connection with any Acquisition Swap Agreements.”

 

2.3           Amendment to Section 9.03.  Section 9.03 is hereby amended by re-lettering Section 9.03(e) as Section 9.03(f) and inserting the following new Section 9.03(e):

 

“(e)           Liens on cash and securities to secure obligations under Acquisition Swap Agreements as contemplated by Section 9.18(e).”

 

2.4           Amendment to Section 9.18 (Swap Agreements).  Section 9.18 is hereby amended and restated in its entirety as set forth below:

 

“Section 9.18         Swap Agreements.

 

(a)           Neither the Borrower nor any of its Subsidiaries will enter into (or, in the case of Section 9.18(a)(ii) below, permit to exist) any Swap Agreements with any Person other than:

 

(i)           Swap Agreements in respect of commodities (x) with an Approved Counterparty and (y) the notional volumes for which (when aggregated with the notional volumes under all other commodity Swap Agreements then in effect other than basis differential swaps on volumes already hedged pursuant to other Swap Agreements) do not exceed, as of the date such Swap Agreement is executed, (I) 85% of the reasonably anticipated projected production from Proved Properties for each month during the period during which such Swap Agreement is in effect for each of crude oil and natural gas, calculated separately, for the remainder of the then-current calendar year plus the next two full calendar years succeeding the execution of such Swap Agreement, (II) 70% of the reasonably anticipated projected production from Proved Properties for each month during the period during which such Swap Agreement is in effect for each of crude oil and natural gas, calculated separately, for each month thereafter and (III) the net monthly production from proved, developed producing reserves (regardless of projected production levels) for the calendar month most recently ended prior to such day for which historical production volumes are available, calculated separately for each of crude oil and natural gas.

 

(ii)          Swap Agreements in respect of interest rates with an Approved Counterparty, which effectively convert interest rates from floating to fixed, the notional amounts of which (when aggregated with all other Swap Agreements of the Borrower and its Subsidiaries then in effect effectively converting interest rates from floating to fixed) do not exceed at any time (other than during an Exemption Period) 100% of the then

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outstanding principal amount of the Borrower’s Debt for borrowed money which bears interest at a floating rate.

 

(b)           Notwithstanding anything in Section 9.18(a)(i) to the contrary, the Borrower may enter into commodity Swap Agreements with any Lender or Affiliate of a Lender having notional volumes in excess of the amounts set forth in Section 9.18(a)(i) (such Swap Agreements being “Acquisition Swap Agreements”) in anticipation of the acquisition of Oil and Gas Properties or Equity Interests of Persons owning Oil and Gas Properties in a transaction not prohibited by this Agreement (any such Oil and Gas Properties being referred to herein as the “Target Oil and Gas Properties”) if (x) the Borrower or a Subsidiary has entered into a definitive purchase and sale agreement for such Target Oil and Gas Properties, (y) the tenor of any such Acquisition Swap Agreement does not exceed 60 months from the expected date of closing of such acquisition and (z) the notional volumes hedged pursuant to any such Acquisition Swap Agreement (when aggregated with the notional volumes hedged pursuant to all other Acquisition Swap Agreements then in effect other than basis differential swaps on volumes already hedged pursuant to other Acquisition Swap Agreements) do not exceed, as of the date such Acquisition Swap Agreement is executed, 100% of the reasonably anticipated projected production from all Oil and Gas Properties constituting Target Oil and Gas Properties as of such date that are identified by the Borrower’s internal engineers as proved reserves for each month during the period during which such Acquisition Swap Agreement is in effect for each of crude oil and natural gas, calculated separately.

 

(c)           If, as of any Test Date that occurs while one or more Acquisition Swap Agreements are in effect, the Borrower determines that all Acquisition Swap Agreements then in effect (when aggregated with other commodity Swap Agreements then in effect other than basis differential swaps on volumes already hedged pursuant to other Swap Agreements) have notional volumes in excess of the amounts set forth in Section 9.18(a)(i), then the Borrower shall (1) maintain unused availability under this Agreement in an amount at least equal to the Minimum Availability Amount until such time as the Borrower is in compliance with Section 9.18(a)(i) and (2) furnish to the Administrative Agent, no later than the close of business on such Test Date, a statement of the Aggregate Exposure as of the last preceding Business Day as of which such amount could be calculated.

 

(d)           The Borrower shall terminate, create off-setting positions, otherwise unwind existing Swap Agreements or take other actions permitted by this Agreement within three (3) Business Days after a Termination Event Date occurs with respect to any Acquisition Swap Agreement to the extent necessary to be in compliance with Section 9.18(a)(i).

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(e)           If the acquisition of any Target Oil and Gas Properties has not been consummated within 120 days of the execution of the related Acquisition Swap Agreements with the effect that the Borrower is not then compliant with Section 9.18(a), then until the earlier of (1) the date such acquisition is consummated or (2) a Termination Event Date, the Borrower shall secure such Acquisition Swap Agreements in an amount not less than the amount of Exposure with respect to such Acquisition Swap Agreements (to the extent such Exposure is a positive number) by pledging to the Administrative Agent for the benefit of the relevant counterparties cash or securities as may be mutually agreed by the Borrower and such swap counterparty(ies).

 

(f)           If, at any time (other than during an Exemption Period), the Borrower determines that the notional amounts of Swap Agreements in respect of interest rates exceed 100% of the then outstanding principal amount of the Borrower’s Debt for borrowed money which bears interest at a floating rate, then the Borrower shall, within thirty (30) days of such determination, terminate, create off-setting positions or otherwise unwind existing Swap Agreements in order to comply with this Section 9.18.

 

(g)           If, at any time during an Exemption Period, the Borrower determines that the notional amounts of Swap Agreements in respect of interest rates exceed 100% of the outstanding principal amount of the Borrower’s Debt for borrowed money which bears interest at a floating rate calculated on a pro forma basis assuming any relevant acquisition subject of such Exemption Period were funded completely with borrowed money which bears interest at a floating rate, then the Borrower shall, within thirty (30) days of such determination, terminate, create off-setting positions or otherwise unwind existing Swap Agreements such that the notional volumes do not exceed 100% of such pro forma principal amount.

 

(h)           Notwithstanding anything to the contrary in this Section 9.18, (1) there shall be no prohibition against the Borrower entering into any “put” or “call spread option” contracts or commodity price floors so long as such agreements are entered into for non-speculative purposes and in the ordinary course of business for the purpose of hedging against fluctuations of commodity prices and (2) any “swaption” entered into by the Borrower shall be counted against the sublimits contained in this Section 9.18. for the purpose of hedging against fluctuations of commodity prices.

 

                (i)            If, after the end of any calendar month, the Borrower determines that the aggregate notional volume of all commodity Swap Agreements for which settlement payments were calculated in such calendar month exceeded the volume caps on reasonably anticipated projected production from Proved Reserves as set forth in Section 9.18(a) for such calendar month or actual net monthly production from proved, developed producing reserves for such calendar month (in each case calculated for each commodity separately), then the Borrower shall, within 30 days of its receipt of the production

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information for such calendar month, terminate, create off-setting positions, otherwise unwind existing Swap Agreements or take other actions permitted by this Agreement (including delivering revised forecasts of anticipated projected production reasonably acceptable to the Administrative Agent) such that, upon the expiration of such 30 day period, the Borrower will be in compliance with the volume caps set forth in Section 9.18(a) (calculated for each commodity separately).”

 

Section 3.                    Conditions Precedent.  The effectiveness of this Third Amendment is subject to the receipt by the Administrative Agent of the following documents and satisfaction or waiver by the Lenders of the other conditions provided in this Section 3, each of which shall be reasonably satisfactory to the Administrative Agent in form and substance:

 

3.1           Payment by the Borrower to the Administrative Agent of all fees and other amounts due and payable on or prior to the Third Amendment Effective Date, including, to the extent invoiced, reimbursement or payment of all out-of-pocket expenses required to be reimbursed or paid by the Borrower pursuant to the Credit Agreement.

 

3.2           The Administrative Agent shall have received multiple counterparts as requested of this Third Amendment from the Borrower, the Guarantors and the Majority Lenders.

 

3.3           No Default or Event of Default shall have occurred and be continuing as of the Third Amendment Effective Date.

 

Section 4.                    Representations and Warranties; Etc.  Each Obligor hereby affirms (a) that as of the date of execution and delivery of this Third Amendment, all of the representations and warranties contained in each Loan Document to which such Obligor is a party are true and correct in all material respects as though made on and as of the Third Amendment Effective Date (unless made as of a specific earlier date, in which case, such representations and warranties remain true and correct in all material respects as of such earlier date); and (b) that after giving effect to this Third Amendment and to the transactions contemplated hereby, no Defaults exist under the Loan Documents.

 

Section 5.                    Miscellaneous.

 

5.1           Confirmation.  The provisions of the Credit Agreement (as amended by this Third Amendment) shall remain in full force and effect in accordance with its terms following the effectiveness of this Third Amendment.

 

5.2           Ratification and Affirmation of Obligors.  Each Obligor hereby expressly (i) acknowledges the terms of this Third Amendment, (ii) ratifies and affirms its obligations under each Loan Document to which it is a party, (iii) acknowledges, renews and extends its continued liability under each Loan Document to which it is a party and agrees that its grant of security interest and/or guarantee, as applicable, under the Security Instruments to which it is a party remains in full force and effect with respect to the Indebtedness after giving effect to this Third Amendment.

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5.3           Loan Document.  This Third Amendment is a “Loan Document” as defined and described in the Credit Agreement and all of the terms and provisions of the Credit Agreement relating to Loan Documents shall apply hereto.

 

5.4           Counterparts.  This Third Amendment may be executed by one or more of the parties hereto in any number of separate counterparts, and all of such counterparts taken together shall be deemed to constitute one and the same instrument.

 

5.5           No Oral Agreement.  This Third Amendment, the Credit Agreement and the other Loan Documents executed in connection herewith and therewith represent the final agreement between the parties and may not be contradicted by evidence of prior, contemporaneous, or unwritten oral agreements of the parties.  There are no subsequent oral agreements between the parties.

 

5.6           Governing Law.  This Third Amendment (including, but not limited to, the validity and enforceability hereof) shall be governed by, and construed in accordance with, the laws of the State of Texas.

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

 

	
BORROWER:

	
LINN ENERGY, LLC

	  	  
	  	  
	  	
By:

	
/s/ Mark E. Ellis

	  	  	
Mark E. Ellis

	  	  	
President and Chief Executive Officer

	  	  
	
GUARANTORS:

	
LINN ENERGY HOLDINGS, LLC

	  	
LINN OPERATING, INC.

	  	
PENN WEST PIPELINE, LLC

	  	
MID-CONTINENT HOLDINGS I, LLC

	  	
MID-CONTINENT HOLDINGS II, LLC

	  	
MID-CONTINENT I, LLC

	  	
MID-CONTINENT II, LLC

	  	
LINN GAS MARKETING, LLC

	  	
LINN EXPLORATION MIDCONTINENT, LLC

	  	  
	  	  
	  	  
	  	
By:

	
/s/ Mark E. Ellis

	  	  	
Mark E. Ellis

	  	  	
President and Chief Executive Officer

 

  

Third Amendment to Fourth Amended and Restated Credit Agreement

Signature Page 1

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BNP PARIBAS, as Administrative Agent and a Lender

	  
	  
	
By:

	
/s/ Douglas R. Liftman

	
Name:

	
Douglas R. Liftman

	
Title:

	
Managing Director

	  
	  
	
By:

	
/s/ Betsy Jocher

	
Name:

	
Betsy Jocher

	
Title:

	
Director

	  
	  
	  
	
ROYAL BANK OF CANADA, as a Lender

	  
	  
	
By:

	
/s/ Don J. McKinnerney

	
Name:

	
Don J. McKinnerney

	
Title:

	
Authorized Signatory

	  
	  
	  
	
CITIBANK, NA, as a Lender

	  
	  
	
By:

	
/s/ John F. Miller

	
Name:

	
John F. Miller

	
Title:

	
Attorney-In-Fact

	  
	  
	  
	
BARCLAYS BANK PLC, as a Lender

	  
	  
	
By:

	
/s/ Sam Yoo

	
Name:

	
Sam Yoo

	
Title:

	
Assistant Vice President

 

  

Third Amendment to Fourth Amended and Restated Credit Agreement

Signature Page 2

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CREDIT AGRICOLE CORPORATE AND INVESTMENT BANK, as a Lender

	  	  
	  	  
	
By:

	
/s/ Tom Byargeon

	
Name:

	
Tom Byargeon

	
Title:

	
Managing Director

	  	  
	  	  
	
By:

	
/s/ Sharada Manne

	
Name:

	
Sharada Manne

	
Title:

	
Director

	  	  
	  	  
	  	  
	
THE ROYAL BANK OF SCOTLAND plc, as a Lender

	  	  
	  	  
	
By:

	
/s/ Lucy Walker

	
Name:

	
Lucy Walker

	
Title:

	
Vice President

	  	  
	  	  
	
WELLS FARGO BANK, N.A., as a Lender

	  	  
	  	  
	
By:

	
/s/ Doug McDowell

	
Name:

	
Doug McDowell

	
Title:

	
Vice President

	  	
Senior Portfolio Manager

	  	  
	  	  
	  	  
	
SOCIETE GENERALE, as a Lender

	  	  
	  	  
	
By:

	
/s/ Cameron Null

	
Name:

	
Cameron Null

	
Title:

	
Vice President

	  	  
	  	  
	  	  
	
By:

	  
	
Name:

	  
	
Title:

	  

 

  

Third Amendment to Fourth Amended and Restated Credit Agreement

Signature Page 3

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BANK OF MONTREAL, as a Lender

	  	  
	  	  
	
By:

	
/s/ Gumaro Tijerina

	
Name:

	
Gumaro Tijerina

	
Title:

	
Director

	  	  
	  	  
	  	  
	
COMERICA BANK, as a Lender

	  	  
	  	  
	
By:

	
/s/ Paul J. Edmonds

	
Name:

	
Paul J. Edmonds

	
Title:

	
Vice President

	  	  
	  	  
	  	  
	
ING CAPITAL LLC, as a Lender

	  	  
	  	  
	
By:

	
/s/ Charles E. Hall

	
Name:

	
Charles E. Hall

	
Title:

	
Managing Director

	  	  
	  	  
	  	  
	
CREDIT SUISSE, AG Cayman Islands Branch as a Lender

	  	  
	  	  
	
By:

	
/s/ Nupur Kumar

	
Name:

	
Nupur Kumar

	
Title:

	
Vice President

	  	  
	  	  
	
By:

	
/s/ Lynne-Marie Paquette

	
Name:

	
Lynne-Marie Paquette

	
Title:

	
Associate

 

  

Third Amendment to Fourth Amended and Restated Credit Agreement

Signature Page 4

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COMPASS BANK, as a Lender

	  	  
	  	  
	
By:

	
/s/ Ann Van Wagener

	
Name:

	
Ann Van Wagener

	
Title:

	
Vice President

	  	  
	  	  
	  	  
	
DnB NOR BANK ASA, as a Lender

	  	  
	  	  
	
By:

	
/s/ Philip F. Kurpiewski

	
Name:

	
Philip F. Kurpiewski

	
Title:

	
Senior Vice President

	  	  
	  	  
	
By:

	
/s/ Kristin Riise

	
Name:

	
Kristin Riise

	
Title:

	
First Vice President

	  	  
	  	  
	
UNION BANK, N.A., as a Lender

	  	  
	  	  
	
By:

	
/s/ Scott Gildea

	
Name:

	
Scott Gildea

	
Title:

	
Vice President

	  	  
	  	  
	  	  
	
U.S. BANK NATIONAL ASSOCIATION,

as a Lender

	  	  
	  	  
	  	  
	
By:

	
/s/ Heather W. Kiely

	
Name:

	
Heather W. Kiely

	
Title:

	
Vice President

  

Third Amendment to Fourth Amended and Restated Credit Agreement

Signature Page 5

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THE BANK OF NOVA SCOTIA, as a Lender

	  	  
	  	  
	
By:

	
/s/ Marc Graham

	
Name:

	
Marc Graham

	
Title:

	
Director

	  	  
	  	  
	  	  
	
ALLIED IRISH BANKS P.L.C., as a Lender

	  	  
	  	  
	
By:

	
/s/ David O’Driscoll

	
Name:

	
David O’Driscoll

	
Title:

	
Assistant Vice President

	  	  
	
By:

	
/s/ Vaughn Buck

	
Name:

	
Vaughn Buck

	
Title:

	
Director

	  	  
	  	  
	  	  
	
CAPITAL ONE, N.A., as a Lender

	  	  
	  	  
	
By:

	
/s/ Matthew L. Molero

	
Name:

	
Matthew L. Molero

	
Title:

	
Vice President

	  	  
	  	  
	  	  
	
UBS AG, STAMFORD BRANCH, as a Lender

	  	  
	  	  
	
By:

	
/s/ Irja R. Otsa

	
Name:

	
Irja R. Otsa

	
Title:

	
Associate Director

	  	  
	  	  
	
By:

	
/s/ April Varner-Nanton

	
Name:

	
April Varner-Nanton

	
Title:

	
Director

  

Third Amendment to Fourth Amended and Restated Credit Agreement

Signature Page 6

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MACQUARIE BANK LIMITED, as a Lender

	  	  
	  	  
	
By:

	
/s/ Robert McRobbie

	
Katie Choi

	
Name:

	
Robert McRobbie

	
Katie Choi

	
Title:

	
Division Director

	
Division Director

	  	
Legal Risk Management

	
Macquarie Bank Limited

Third Amendment to Fourth Amended and Restated Credit Agreement

Signature Page 7

US 400724 v4exhibit10-2.htm

Exhibit 10.2

First Amendment

 

to

 

Fourth Amended and Restated

Guaranty and Pledge Agreement

Dated as of

April 6, 2010

made by

Linn Energy, LLC

and

each of the other Obligors (as defined herein)

in favor of

BNP Paribas,

as Administrative Agent

US 320883

  

  

  

First Amendment to Fourth Amended and Restated Guaranty and Pledge Agreement

 

This First Amendment to Fourth Amended and Restated Guaranty and Pledge Agreement (this “First Amendment”), dated as of April 6, 2010, is made by LINN ENERGY, LLC, a Delaware limited liability company (the “Borrower”), and each of the signatories hereto (the Borrower and each of the signatories hereto, together with any other Subsidiary of the Borrower that becomes a party hereto from time to time after the date hereof, the “Obligors”), in favor of BNP PARIBAS as administrative agent (in such capacity, together with its successors in such capacity, the “Administrative Agent”) for the Lenders (as defined below).

 

R E C I T A L S

 

A.          The Borrower, the other Obligors and the Administrative Agent are parties to that certain Fourth Amended and Restated Guaranty and Pledge Agreement dated as of April 28, 2009 (the “Guaranty”).

 

B.           The Borrower, the Administrative Agent and the financial institutions from time to time party thereto (the “Lenders”) are parties to that certain Fourth Amended and Restated Credit Agreement dated as of April 28, 2009 (as the same has been amended, modified, supplemented or restated from time to time, the “Existing Credit Agreement”), pursuant to which the Lenders have made certain credit available to and on behalf of the Borrower.

 

C.           On even date herewith, the Borrower, the Administrative Agent and the Lenders are amending the Existing Credit Agreement by executing that certain Second Amendment to Fourth Amended and Restated Credit Agreement (the “Second Amendment”, and the Existing Credit Agreement, as amended by the Second Amendment, as the same may from time to time be amended, amended and restated, supplemented or otherwise modified from time to time, the “Credit Agreement”) pursuant to which, upon the terms and conditions stated therein, the Lenders have agreed to make further loans and other extensions of credit to or on behalf of the Borrower.

 

D.           It is a condition precedent to the effectiveness of the Second Amendment that the parties hereto enter into this amendment to the Guaranty.

 

E.           NOW, THEREFORE, in consideration of the mutual covenants and agreements herein contained and of the loans, extensions of credit and commitments hereinafter referred to, the parties hereto agree as follows:

 

Section 1.                      Defined Terms.

 

1.1           Terms not Defined in First Amendment.  Unless otherwise defined herein, terms defined in the Guaranty and used herein have the meanings given to them in the Guaranty, and all uncapitalized terms which are defined in the UCC on the date hereof are used herein as so defined.  Unless otherwise indicated, all section references in this First Amendment refer to the Guaranty.

 

  

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US 320883

  

1.2           References to “Credit Agreement”.  All references in the Guaranty to the “Credit Agreement”, as defined in the recitals to the Guaranty, shall mean the Fourth Amended and Restated Credit Agreement, dated as of April 28, 2009, by and among the Borrower, the Administrative Agent, the Lenders and the agents from time to time party thereto, as the same has been or may from time to time be amended, amended and restated, supplemented or otherwise modified.

 

Section 2.                      Amendments to Guaranty.

 

2.1           Amendments to Recitals.

 

(a)            Each reference in recitals “A”, “B”, “C”, “D” and “E” to the Guaranty to “Mortgagee” is hereby deleted and replaced with “Administrative Agent”.

 

(b)            The reference in recital “E” to the Guaranty to “Mortgagor” is hereby deleted and replaced with “Borrower”.

 

2.2           Amendments to Section 1.01.

 

(a)            The following terms, as defined in Section 1.01 of the Guaranty, are hereby amended and restated in their entirety to read as follows:

 

“‘Agreement’ means this Fourth Amended and Restated Guaranty and Pledge Agreement, as amended by the First Amendment, as the same may be amended, amended and restated, supplemented or otherwise modified from time to time.”

 

“‘Borrower Obligations’ means the collective reference to the payment and performance of all Indebtedness and all obligations of the Borrower and its Subsidiaries under the Guaranteed Documents, including, without limitation, the unpaid principal of and interest on the Loans and the LC Exposure and all other obligations and liabilities of the Borrower and its Subsidiaries (including, without limitation, interest accruing at the then applicable rate provided in the Credit Agreement after the maturity of the Loans and LC Exposure and interest accruing after the filing of any petition in bankruptcy, or the commencement of any insolvency, reorganization or like proceeding, relating to the Borrower, whether or not a claim for post-filing or post-petition interest is allowed in such proceeding) to the Guaranteed Creditors, whether direct or indirect, absolute or contingent, due or to become due, or now existing or hereafter incurred, which may arise under, out of, or in connection with, the Guaranteed Documents, whether on account of principal, interest, reimbursement obligations, payments in respect of an early termination date, fees, indemnities, costs, expenses or otherwise (including, without limitation, all fees and disbursements of counsel to the Guaranteed Creditors that are required to be paid by the Borrower pursuant to the terms of any Guaranteed Documents); provided, that notwithstanding anything to the contrary contained herein or in any other Guaranteed Document, no obligations under any Secured Swap Agreement shall be “Borrower Obligations” after Security Termination has occurred.”

 

  

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US 320883

  

“‘Guaranteed Creditors’ means the collective reference to the Administrative Agent, the Lenders and each Secured Hedge Provider.”

 

“‘Guaranteed Documents’ means the collective reference to the Credit Agreement, the other Loan Documents, each Secured Swap Agreement and any other document made, delivered or given in connection with any of the foregoing.”

 

“‘Guarantor Obligations’ means with respect to any Guarantor, the collective reference to (a) the Borrower Obligations and (b) all obligations and liabilities of such Guarantor which may arise under or in connection with any Guaranteed Document to which such Guarantor is a party, in each case, whether on account of principal, interest, guarantee obligations, reimbursement obligations, payments in respect of an early termination date, fees, indemnities, costs, expenses or otherwise (including, without limitation, all fees and disbursements of counsel to any Guaranteed Creditor under any Guaranteed Document); provided, that notwithstanding anything to the contrary contained herein or in any other Guaranteed Document, no obligations under any Secured Swap Agreement shall be “Guarantor Obligations” after Security Termination has occurred.”

 

(b)            The following new definitions are each hereby added to Section 1.01 where alphabetically appropriate as follows:

 

“‘First Amendment’ means that certain First Amendment to Fourth Amended and Restated Guaranty and Pledge Agreement executed effective as of April 6, 2010 among the Borrower, the other Obligors signatory thereto and the Administrative Agent.”

 

“‘Security Termination’ means such time at which each of the following events shall have occurred on or prior to such time: (a) all Commitments have terminated or expired, (b) the Credit Agreement has terminated, (c) all Obligations (other than obligations under any Secured Swap Agreement and other than indemnities and other contingent obligations not then due and payable and as to which no claim has been made as of the time of determination) have been paid in full in cash, (d) all Secured Swap Agreements have been novated, terminated or the Borrower or its applicable Subsidiary has provided substitute collateral to the Secured Hedge Provider thereunder to the extent provided under the applicable Secured Swap Agreement (or as to which other arrangements satisfactory to the applicable Secured Hedge Provider shall have been made), and (e) all Letters of Credit have expired or terminated or the LC Exposure has been cash collateralized (or as to which other arrangements satisfactory to the Borrower and the Issuing Bank shall have been made), as provided for in the Credit Agreement.”

 

(c)            The definition of “Guaranteed Swap Agreement” is hereby deleted from Section 1.01 in its entirety.

 

  

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2.3            Amendment to Section 9.14(a).  Section 9.14(a) of the Guaranty is hereby amended and restated in its entirety to read as follows:

 

“(a)           Release Upon Security Termination.  The grant of a security interest hereunder and all of  each Guaranteed Creditor’s rights, powers and remedies in connection herewith shall remain in full force and effect until Security Termination has occurred.  Upon Security Termination, at the expense of the Borrower, the Administrative Agent will promptly release, reassign and transfer the Collateral to the Pledgors and declare this Agreement to be of no further force or effect.”

 

Section 3.                      Miscellaneous.

 

3.1           Confirmation.  The provisions of the Guaranty (as amended by this First Amendment) shall remain in full force and effect in accordance with its terms following the effectiveness of this First Amendment.

 

3.2           Ratification and Affirmation of Obligors.  Each Obligor hereby expressly (i) acknowledges the terms of this First Amendment, (ii) ratifies and affirms its obligations under the Guaranty, (iii) acknowledges, renews and extends its continued liability under the Guaranty and agrees that its grant of security interest and/or guarantee, as applicable, under the Guaranty remains in full force and effect with respect to the Indebtedness after giving effect to this First Amendment.

 

3.3           Counterparts.  This First Amendment may be executed by one or more of the parties hereto in any number of separate counterparts, and all of such counterparts taken together shall be deemed to constitute one and the same instrument.

 

3.4           No Oral Agreement.  This First Amendment and the Guaranty represent the final agreement between the parties and may not be contradicted by evidence of prior, contemporaneous, or unwritten oral agreements of the parties.  There are no subsequent oral agreements between the parties.

 

3.5           Governing Law.  This First Amendment (including, but not limited to, the validity and enforceability hereof) shall be governed by, and construed in accordance with, the laws of the State of Texas.

 

  

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

 

	
BORROWER:

	
LINN ENERGY, LLC

	  	  
	  	  
	  	  
	  	
By:

	
/s/ Kolja Rockov

	  	  	
Kolja Rockov,

	  	  	
Executive Vice President and Chief Financial Officer

	  	  
	  	  
	
GUARANTORS:

	
LINN ENERGY HOLDINGS, LLC

	  	
LINN OPERATING, INC.

	  	
PENN WEST PIPELINE, LLC

	  	
MID-CONTINENT HOLDINGS I, LLC

	  	
MID-CONTINENT HOLDINGS II, LLC

	  	
MID-CONTINENT I, LLC

	  	
MID-CONTINENT II, LLC

	  	
LINN GAS MARKETING, LLC

	  	
LINN EXPLORATION MIDCONTINENT, LLC

	  	  
	  	  
	  	  
	  	
By:

	
/s/ Kolja Rockov

	  	  	
Kolja Rockov,

	  	  	
Executive Vice President and Chief Financial Officer

First Amendment to Fourth Amended and Restated Guaranty and Pledge Agreement

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Acknowledged and Agreed to as

of the date hereof by:

	
ADMINISTRATIVE AGENT:

	
BNP PARIBAS

	  	  
	  	  
	  	
By:

	
/s/ Doug Liftman

	  	
Name:

	
Doug Liftman

	  	
Title:

	
Managing Director

	  	  	  
	  	  	  
	  	
By:

	
/s/ Betsy Jocher

	  	
Name:

	
Betsy Jocher

	  	
Title:

	
Director

 

First Amendment to Fourth Amended and Restated Guaranty and Pledge Agreement

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US 320883

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