Document:

exv10w25

Exhibit 10.25

FIRST AMENDMENT TO THIRD AMENDED AND RESTATED CREDIT

AGREEMENT

     THIS FIRST AMENDMENT TO THIRD AMENDED AND RESTATED CREDIT AGREEMENT (this “Amendment”)
is entered into as of March 14, 2011, between Delta Petroleum Corporation, a Delaware Corporation
(“Borrower”) and Macquarie Bank Limited, as the Administrative Agent for the Lenders to the
Credit Agreement (defined below) and as Issuing Lender for the Lenders. Capitalized terms used but
not defined in this Amendment have the meaning given them in the Credit Agreement.

Background

     A. Borrower, Lenders and Administrative Agent have previously entered into that Third Amended
and Restated Secured Credit Agreement dated December 29, 2010 (as amended, restated, modified or
otherwise supplemented from time to time, the “Credit Agreement”), for the purpose of
making available to Borrower a senior secured term loan for the purposes set forth in the Credit
Agreement.

     B. Borrower, Lenders and Administrative Agent desire to modify certain terms and conditions of
the Credit Agreement.

     C. Lenders and Administrative Agent are willing to amend the Credit Agreement pursuant to the
terms and conditions of this Amendment.

Agreements

     In consideration of the mutual covenants of Borrower, Lenders and Administrative Agent set
forth in this Amendment and other good and valuable consideration, the receipt and sufficiency of
which are acknowledged by each of the parties, Borrower, Lenders and Administrative Agent agree as
follows:

     1. Definitions. Appendix I referenced in Article I is amended by adding the following
definition in alphabetical order:

     “First Amendment” means the First Amendment to the
Third Amended and Restated Credit Agreement between Borrower,
Lenders and Administrative Agent dated as of March 14, 2011.

     2. Amendments.

     (a) Section 2.3 of the Credit Agreement is deleted in its entirety and replaced with
the following:

     Section 2.3 Availability and Purposes of Term Loan
Advances.

 

 

     (a) Beginning on the Closing Date, and continuing through the
applicable Commitment Termination Date, up to $25,000,000 is
available under the Term Loan and shall be used by Borrower in
accordance with Section 5.9 and as follows:

          (i) to repay amounts Advanced under the Revolving Loan;

          (ii) to pay costs incurred by Borrower in connection with the
drilling and completion of Wells and other development activities on
Borrower’s Oil and Gas Properties; and

          (ii) for any other purpose Approved by Administrative Agent.”

     (b) Beginning on the Closing Date, and subject to the Approval
by Administrative Agent and Required Lenders of a new Development
Plan, and any subsequent modifications of such Development Plan
pursuant to Section 2.4(a), and continuing through the
applicable Commitment Termination Date, amounts beyond the
$25,000,000 set forth in Section 2.3(a) above made available
under the Term Loan shall be used by Borrower in accordance with
Section 5.9 and as follows:

          (i) to pay costs incurred by Borrower in connection with the
drilling and completion of Wells and other development activities
included on such Development Plan, in each instance pursuant to an
AFE Approved by Administrative Agent; and

          (ii) for any other purpose Approved by Administrative Agent.

     (b) Section 2.4(b) of the Credit Agreement is deleted in its entirety and replaced with
the following:

     (b) In support of each Development Plan, Borrower will prepare
and submit to Administrative Agent for Approval an AFE (including
all Supporting Documentation) at least fifteen days before Borrower
incurs any costs that it intends to fund out of an Advance pursuant
to Section 2.3(b). To the extent an AFE conforms to a
Development Plan previously Approved by Administrative Agent and
Required Lenders, however, Administrative Agent’s Approval of that
AFE will not be unreasonably withheld or delayed.

     (c) Section 2.4(c) of the Credit Agreement is deleted in its entirety and replaced with
the following:

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     (c) Notwithstanding the foregoing Approval of a Development
Plan:

     (i) Borrower must nevertheless satisfy the conditions
described in this Article II and Article III
below prior to the making of each Advance; and

     (ii) Administrative Agent will have no obligation to
make an Advance pursuant to Section 2.3(b) to fund
projects included on the Development Plan:

     (A) unless the requested Advance relates to an
AFE Approved by Administrative Agent;

     (B) if the requested Advance (together with all
amounts previously Advanced in respect of the
applicable AFE) exceeds the cost set forth in the
Development Plan for that project by more than 10%;
or

     (C) if the requested Advance exceeds the
remaining funds available and not yet Advanced under
the Term Loan.

     (d) Section 2.8(a) of the Credit Agreement is deleted in its entirety and replaced with
the following:

     (a) Repayment of Term Loan Generally. As long as no
Event of Default exists, Borrower shall repay to Administrative
Agent for the ratable benefit of Lenders the outstanding principal
amount of each Loan Advance, together with any accrued interest
thereon, on the Maturity Date or such earlier date pursuant to
Section 7.2 or Section 7.3. If an Event of Default
exists, on each Payment Date, to the extent any Advances under the
Term Loan remain outstanding, Borrower will pay to Administrative
Agent 100% of Net Operating Cash Flow to be applied as set forth in
Section 2.8(c). On the Maturity Date, Borrower will pay to
Administrative Agent all of the monetary Obligations outstanding on
that date (other than Obligations that may continue past the
Maturity Date under the terms of any Hedge Contracts) and perform or
otherwise satisfy all other Obligations then outstanding.

     (e) Section 2.8(b) of the Credit Agreement is deleted in its entirety and replaced with
the following:

     (b) Calculation of Net Operating Cash Flow. Administrative
Agent will calculate Net Operating Cash Flow based on the Property
Operating Statements prepared and delivered

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by Borrower. The first Property Operating Statement is due on
the twenty-fifth (25th) day of the month following the
month in which the first Advance of the Term Loan pursuant to
Section 2.3(b) is made.

     (f) Section 2.12 of the Credit Agreement is deleted in its entirety and replaced with
the following:

     Section 2.12. Borrower Sub-Account, Disbursements

     (a) Borrower Sub-Account. Following the date on which
the first Advance under the Term Loan is made and continuing until
all Advances under the Term Loan have been paid in full in cash,
Borrower will direct and cause Operator, all purchasers of
Hydrocarbons and all other customers and obligors of Borrower
(including all payors of Royalty Interests, net profit interests,
and production payment interests) to deposit directly into the
Project Account all payments of any nature due and owing to
Borrower. If an Event of Default exists and Borrower nonetheless
receives any such funds, it will promptly (but, in any event, by the
end of the following third Business Day) deposit all such funds in
the Project Account. If an Event of Default does not exist, after
receipt of funds into the Project Account pursuant to this
Section 2.12(a), Administrative Agent will promptly (but, in
any event, by the end of the third Business Day following the date
of deposit of such funds into the Project Account) transfer all
funds in the Project Account to a Deposit Account designated by
Borrower and permitted by Section 6.23. This Section
2.12 will not prohibit Operator from making payments directly to
Royalty Interest owners and other third party payees who are not
Affiliates of Borrower. Administrative Agent will establish a sub
account (the “Borrower Sub-Account”) on its internal books
and records and credit to the Borrower Sub-Account all funds
collected in the Project Account and attributable to Borrower’s Net
Revenue Interest in the Oil and Gas Properties at the time the
amount to be credited has been identified to Administrative Agent’s
reasonable satisfaction. Borrower hereby irrevocably authorizes
Administrative Agent to debit, whenever an Event of Default exists,
the Borrower Sub-Account for (i) the payment of all Obligations when
due, and (ii) for any and all outstanding accrued interest existing
on the date of said debit, provided, however, any interest paid
under this Section 2.12(a)(ii) in any month will also be
deducted under Section 2.8 for purposes of calculating Net
Operating Cash Flow for said month. Administrative Agent may, if an
Event of Default exists, apply all funds credited to the Borrower
Sub-Account against any Obligations then outstanding.

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     (b) Amounts Owed to Third Parties; Taxes. If an Event
of Default exists, amounts deposited into the Project Account and
owing to (i) Working Interest and Royalty Interest owners that are
not Affiliates of Borrower, or (ii) Governmental Authorities for
taxes or payments measured by production will be released by
Administrative Agent to Borrower upon receipt of a certificate from
Borrower detailing the amounts and the party to be paid, provided
that Administrative Agent will, at its option, have the right (but
not the obligation) to make payments directly to the Persons
identified on Borrower’s certificate. A Responsible Officer shall
deliver the certificate contemplated by this Section 2.12(b)
on behalf of Borrower.

     (c) Administrative Agent’s Right to Audit.
Administrative Agent will have the right to undertake audit
procedures during normal business hours and upon prior notice to
periodically confirm that the payment described in Section
2.12(b) have been made by Borrower.

     (g) Section 5.6(d) of the Credit Agreement is deleted in its entirety and replaced with
the following:

     (d) Property Operating Statement. Beginning on the
twenty-fifth (25th) day of the month immediately following the first
Advance pursuant to Section 2.3(b) and continuing
thereafter, within twenty-five (25) days after the end of each
calendar month (such month being the “Reported Month”), a
POS including:

     (i) attachments prepared by Borrower detailing (A)
Sales Volumes associated with cash payments received during
the Reported Month, (B) all cash payments received during
the Reported Month in respect of the Properties, and (C)
Borrower’s aged accounts payable at the end of the Reported
Month, and accompanied by a certification of a Responsible
Officer, dated as of the date on which Administrative Agent
receives the POS, and certifying that, to the knowledge of
the Responsible Officer, no Event of Default exists under
any of the Loan Documents; and

     (ii) a list of invoices paid or to be paid by Borrower
to any Person (other than Administrative Agent) from the
revenues described in the preceding Section
5.6(d)(i)(B) and such other information that
Administrative Agent requests from time to time.

     (h) Section 5.6(f) of the Credit Agreement is deleted in its entirety and replaced with
the following:

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     (f) Updated Development Plan. As long as there are
outstanding Term Loan Advances under the provisions of Section
2.3(b), contemporaneous with the delivery of each Reserve Report
bearing an effective date as of January 1st of any year, Borrower
will prepare and deliver to Administrative Agent a revised, proposed
Development Plan covering at least the next twelve (12) months and
setting forth all capital expenditure development projects proposed
for that period, the anticipated timing of those projects, the net
cost of each of those projects to Borrower and any other information
that Administrative Agent may request. Each proposed modification to
the Development Plan will be subject to the Approval of
Administrative Agent, and Borrower acknowledges that Administrative
Agent is not required to Approve any proposed modification to the
Development Plan. Until Administrative Agent has Approved a revised
Development Plan, the most recent Approved Development Plan (and all
AFEs Approved in connection with that most recently Approved
Development Plan) will remain in effect.

     (i) Appendix I to the Credit Agreement is amended as follows:

          (i) The definition of “Debt Service Reserve Account” is deleted in its entirety.

     (j) Schedule I to the Credit Agreement is deleted in its entirety and replaced with
Schedule I attached to this Amendment as Exhibit A.

     3. Conditions to Effectiveness of this Amendment. This Amendment will become
effective on the first day that Borrower and the other parties (other than Lender) have executed
and delivered to Lender, in form and substance acceptable to Lender (i) this Amendment and (ii) any
other document necessary or convenient in the opinion of Lender or its counsel to give effect to
the modifications to the Credit Agreement contemplated by this Amendment.

     4. Reaffirmation of Representations and Warranties, Additional Representations and
Warranties. Borrower, to induce Lenders to enter into this Amendment, hereby reaffirm, as of
the date hereof (except to the extent the previous representations and warranties speak as to a
certain date), its representations and warranties contained in the Credit Agreement and in all
other documents executed pursuant thereto, and additionally represent and warrant as follows:

     (a) The execution and delivery of this Amendment and the performance by Borrower of its
obligations under this Amendment are within the power of Borrower, have been duly authorized
by all necessary company action, have received all necessary governmental approvals (if any
shall be required), and do not and will not contravene or conflict with (i) any provision of
law applicable to Borrower or any Guarantor, (ii) any of the respective certificates or
articles of incorporation, bylaws, limited liability company agreements, or other similar
governance documents of Borrower or any Guarantor, or (iii) any agreement binding upon
Borrower or any Guarantor or any of their respective assets.

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     (b) This Amendment represents the legal, valid and binding obligations of Borrower
enforceable against it in accordance with its terms except as enforceability may be limited
by applicable laws relating to bankruptcy, insolvency or reorganization or relief of debtors
and by general equitable principles.

     5. Ratification of Liens and Security Interests. Borrower hereby acknowledges and
ratifies the existence and priority of the Liens granted by Borrower in favor of Lender in and to
the Collateral and represents, warrants and covenants that such liens and security interests are
valid, existing and in full force and effect.

     6. Miscellaneous. The Credit Agreement, as amended hereby, supersedes all prior
agreements (written or oral) between Borrower and Lenders with regard to the subject matters
hereof. This Amendment is a Loan Document. Except as affected by this Amendment, the Loan
Documents are unchanged and continue in full force and effect. However, in the event of any
inconsistency between the terms of the Credit Agreement as amended by this Amendment and any other
Loan Document, the terms of the Credit Agreement will control and the other document will be deemed
to be amended to conform to the terms of the Credit Agreement. All references to the Credit
Agreement will refer to the Credit Agreement as amended by this Amendment and any other amendments
properly executed among the parties. Borrower and each of the Guarantors agree that all Loan
Documents to which they are a party (whether as an original signatory or by assumption of the
Obligations) remain in full force and effect and continue to evidence their legal, valid and
binding obligations enforceable in accordance with their terms (as the same are affected by this
Amendment or are amended in connection with this Amendment). Borrower releases Lenders from any
liability for actions or failures to act in connection with the Loan Documents prior to the date of
this Amendment. No course of dealing among Borrower and Lender or any other Person will be deemed
to have altered or amended the Credit Agreement or affected either Borrower’s or Lender’s right to
enforce the Credit Agreement as written. This Amendment will be binding upon and inure to the
benefit of each of the undersigned and their respective successors and permitted assigns.

     7. Form. Each agreement, document, instrument or other writing to be furnished to
Lender under any provision of this instrument must be in form and substance satisfactory to Lender
and its counsel.

     8. Multiple Counterparts. This Amendment may be executed in more than one
counterpart, each of which shall be deemed an original, and all of which constitute, collectively,
one instrument; but, in making proof of this instrument, it shall not be necessary to produce or
account for more than one such counterpart. It shall not be necessary for Borrower and Lenders to
execute the same counterpart hereof so long as Borrower and Lenders each execute a counterpart
hereof. For purposes of this Amendment, an electronic copy of any party’s signature to this
Amendment shall be deemed an original signature.

     9. GOVERNING LAW. THIS AMENDMENT AND ALL TRANSACTIONS PROVIDED FOR IN THIS AMENDMENT
WILL BE GOVERNED BY, INTERPRETED AND CONSTRUED UNDER AND ENFORCED PURSUANT TO THE LAWS OF THE STATE
OF TEXAS, WITHOUT REGARD TO ITS CONFLICTS OF LAWS PROVISIONS.

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     10. FINAL AGREEMENT. THE LOAN DOCUMENTS, AS AMENDED BY OR IN CONNECTION WITH THIS
AMENDMENT, REPRESENT THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY
EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO ORAL
AGREEMENTS BETWEEN THE PARTIES.

[The next pages are the Signature Pages]

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     IN WITNESS WHEREOF, the parties have executed this Amendment on the date first set forth
above.

	 	 	 	 	 	 	 

	 	 	BORROWER:	 	 
	 
	 	 	 	 	 	 
	 	 	DELTA PETROLEUM CORPORATION,	 	 
	 	 	a Delaware corporation	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Kevin K. Nanke
 

	 	 
	 

	 	Name:
	 	Kevin K. Nanke	 	 
	 

	 	Title:
	 	CFO	 	 

Signature Page to First Amendment to Credit Agreement

 

 

     IN WITNESS WHEREOF, the parties have executed this Amendment on the date first set forth
above.

	 	 	 	 	 	 
	 	 	LENDER and ADMINISTRATIVE AGENT:	
	 
	 	 	 	 	
	 	 	Macquarie Bank Limited,	
	 	 	a Bank incorporated in accordance with	
	 	 	the laws of Australia	
	 
	 	 	 	 	
	 

	 	By:
	 	/s/ Katie Choi	
	 

	 	 	 	 	
	 

	 	Name:
	 	Katie Choi	
	 

	 	Title:
	 	Division Director	
	 

	 	 	 	Macquarie Bank Limited	
	 
	 	 	 	 	
	 

	 	By:
	 	/s/ Robert McRobbie	
	 

	 	 	 	 	
	 

	 	Name:
	 	Robert McRobbie	
	 

	 	Title:
	 	Division Director	
	 

	 	 	 	Legal Risk Management	

Exhibits:

Exhibit A - Revised Schedule I

Signature Page to First Amendment to Credit Agreementexv10w36

Exhibit 10.36

Execution Version

FORBEARANCE AGREEMENT

          FORBEARANCE AGREEMENT,  dated as of December 31, 2010 (this
“Agreement”) among DHS HOLDING COMPANY, a Delaware corporation (“Holdings”), DHS DRILLING
COMPANY, a Colorado corporation (the “Borrower”) and LEHMAN
COMMERCIAL PAPER INC., as administrative agent (in such capacity, the “Administrative
Agent”) and as the Lender (in such capacity, the “Lender”) under that certain Credit Agreement
(as defined below).

W I T N E S S E T H:

          WHEREAS, the Borrower, Holdings, the Lender and the Administrative Agent are parties to that
certain Amended and Restated Credit Agreement, dated as of August 15, 2008, as amended by that
certain Amendment No. 1, dated as of September 19, 2008, and further amended by that certain Waiver
and Amendment No. 2, dated as of April 1, 2010 (as further amended, modified or supplemented from
time to time in accordance with its terms, the “Credit Agreement”; capitalized terms used but not
defined herein shall have the respective meanings ascribed to such terms in the Credit
Agreement);

          WHEREAS, the Borrower has failed in its performance of certain provisions of the Credit
Agreement as further described herein, such failure constituting a default under the Credit
Agreement; and

          WHEREAS, the Borrower and Holdings have requested that the Lender and the Administrative
Agent forbear, and the Lender and the Administrative Agent have agreed, subject to the terms and
conditions of this Agreement, to forbear, from exercising certain rights under the Credit
Agreement and the other Loan Documents during the Forbearance Period (as defined below).

          NOW, THEREFORE, in consideration of the premises and the agreements hereinafter
contained, the parties hereto agree as follows:

          1. Forbearance.

          (a) Acknowledgement. As of the date hereof, each of the Loan Parties acknowledge that the
failure by the Borrower to service (a) the amortization payment due and payable pursuant to
Section 2.4(a)(i) of the Credit Agreement (the “Payment Default”) and (b) the interest payment due
and payable pursuant to Section 2.8(b) of the Credit Agreement (the “Interest Default”, together
with the Payment Default, the “Forbearance Default”) constitutes a default under the Credit
Agreement. By acknowledging the Forbearance Default, the Loan Parties do not waive or release any
defenses available at law or equity as a result of Lender’s Breach.

          (b) Forbearance Period. (i) During the period from the Effective Date (as defined below)
until January 31, 2011 (the “Forbearance Period”), each of the Administrative Agent and the Lender
hereby agrees to forbear (the “Forbearance”) from exercising its rights and remedies under the
Credit Agreement and the other Loan Documents arising as a result of the Forbearance Default;
provided, however, that upon the occurrence of any Event of Default other than the Forbearance
Default, including the Events of Defaults set forth in Section 1(c) hereof, the Forbearance Period
shall automatically and immediately terminate, and the Administrative Agent and the Lender shall
be entitled to exercise any and all of their rights and remedies under

 

 

the Credit Agreement, the other Loan Documents and applicable law, without further notice
other than as required therein. Upon termination of the Forbearance Period, (A) the forbearance
shall automatically terminate and be of no further force or effect without any further action by
the Lender, (B) the Forbearance Default is, without further action, reinstated and shall have the
same force and effect as if the Forbearance had not been agreed to by the parties hereto and (C)
subject to the terms of the Credit Agreement, the Loan Documents and applicable law, the Lender
may thereafter, without limitation, sue, ask for or demand from the Loan Parties payment of the
Obligations due and payable to such Lender, in whole or in part, and otherwise enforce any of its
rights and remedies (including rights of acceleration and foreclosure) provided for under the
Credit Agreement, the Loan Documents or applicable law against any party, subject to any defenses
available at law or equity as a result of Lender’s Breach. Each of the Loan Parties agrees that,
subject to the agreement of the Lender to forbear from exercising certain of their rights and
remedies as and to the extent expressly set forth in this Agreement, all rights and remedies of
the Lender under the Credit Agreement, the Loan Documents or applicable law with respect to such
Loan Party shall continue to be available to the Lender from and after the Effective Date.

          (ii) It is understood and agreed that interest shall accrue from the Effective Date through
the remainder of the Forbearance Period on the outstanding Obligations at the applicable default
rates provided for pursuant to the Credit Agreement.

          (c) Additional Events of Default. The following events shall constitute Events of
Default under the terms of the Credit Agreement and the other Loan Documents:

               (i) any of the Borrower, Holdings or the other Loan Parties shall pledge, encumber, charge,
assign or grant a security interest in, or encumbrance of any kind on, any Collateral; or

               (ii) any of the Borrower, Holdings or the other Loan Parties shall enter into any
arrangement to provide priority or preference with respect thereto, in connection with securing
or obtaining debtor-in-possession financing; or

               (iii) any of the Loan Parties shall (x) pay any management fees to either of Delta Petroleum
Corporation (“Parent”) or Chesapeake Energy Corporation (“Chesapeake”) or (y) make any other
payments, distributions or dividends in respect of stock held by either of Parent or Chesapeake
in any Loan Party; or

               (iv) Holdings, the Borrower or any other Loan Party shall fail to perform or observe any
term, covenant or agreement set forth in this Agreement; or

               (v) any representation or warranty made or deemed made by any Loan Party herein or any
representation or warranty made or deemed made hereafter by any Loan Party in any Loan Document or
which is made in connection with this Agreement or any other Loan Document shall prove to have
been incorrect or misleading in any material respect on or as of the date made or deemed made.

          (d) No Waiver. Any other provision of this Agreement notwithstanding, the Loan Parties do not
waive or release any rights or defenses available to them as a result of Lender’s Breach.

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          2. Forbearance Requirements. The Borrower, Holdings and the other Loan Parties agree to the
following as consideration for the Forbearance (the “Forbearance Requirements ”):

          (a) Within 15 days following the Effective Date, the Loan Parties shall meet with the
Administrative Agent and the Lender to discuss the Loan Parties’ budget, business/operating plan
and cash flow forecast and analysis, as well as restructuring options in respect of the business
and capital structure of the Loan Parties.

          (b) Holdings and Borrower shall permit any third party financial consultant or advisor
acting on behalf of the Lender or Administrative Agent to inspect the property of
Holdings and its Subsidiaries and to conduct such other activity as contemplated in Section 5.7(b)
of the Credit Agreement.

          3. Representations and Warranties. Each of the Borrower, Holdings and the other Loan Parties
represents and warrants as follows (which representations and warranties shall survive the
execution and delivery of this Agreement):

          (a) Each of the Borrower, Holdings and the other Loan Parties has taken all necessary action
to authorize the execution, delivery and performance of this Agreement.

          (b) This Agreement constitutes the legal, valid and binding obligation of each of the
Borrower, Holdings and the other Loan Parties, as applicable, enforceable against them in
accordance with their respective terms, subject to applicable bankruptcy, reorganization,
insolvency, moratorium and similar laws affecting the enforcement of creditors’ rights generally
and to general equity principles.

          (c) No consent or approval of any person, firm, corporation or entity, and no consent,
license, approval or authorization of any governmental authority is or will be required in
connection with the execution, delivery, performance, validity or enforcement of this Agreement,
other than any such consent, approval, license or authorization which has been obtained and
remains in full force and effect or where the failure to obtain such consent, approval, license or
authorization would not result in a Material Adverse Effect.

          (d) After giving effect to this Agreement, each of the Borrower, Holdings and the other Loan
Parties is in compliance with all of the various covenants and agreements set forth in the Credit
Agreement and each of the other Loan Documents, other than the Forbearance Default.

          (e) After giving effect to this Agreement and the agreements to be delivered in connection
herewith, no event has occurred and is continuing which constitutes a Default or an Event of
Default, other than the Forbearance Default.

          (f) After giving effect to this Agreement and the agreements to be delivered in
connection herewith, all representations and warranties contained in the Credit Agreement and each
of the other Loan Documents are true and correct in all material respects as of the date hereof,
except to the extent that any representation or warranty relates to a specified date, in which
case such are true and correct in all material respects as of the specific date to which such
representations and warranties relate, and except to the extent of any inconsistency in such
representations or warranties arising directly out of the Forbearance Default.

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          (g) Each report delivered and any information provided pursuant to or in connection with this
Agreement has and will be prepared on a reasonable basis and in good faith, and has/will be based
on assumptions believed by the applicable Loan Party to be reasonable at the time made and upon the
best information available to such Loan Party, and such Loan Party is not aware of any facts or
information that would lead the applicable party to believe that any such information or report is
incorrect or misleading in any material respect.

          4. Fees and Expenses. The Borrower and Holdings agree to pay on demand all fees, costs and
expenses, including reasonable attorneys’ and consultants’ fees, of the Administrative Agent and
the Lender incurred in connection with this Agreement.

          5. Effective Date. This Agreement shall not become effective unless and until (the latest
date upon which such occurs, the “Effective Date”):

          (a) this Agreement shall have been duly executed and delivered by the Borrower,
Holdings, the other Loan Parties, the Lender and the Administrative Agent; and

          (b) the Lender shall have received such other certificates, documents and agreements as
the Lender may reasonably request.

          6. Reference and Continued Effectiveness of the Loan Documents.

          (a) The term “Agreement”, “hereof”, “herein” and similar terms as used in the Credit
Agreement, and references in the other Loan Documents to the Credit Agreement, shall mean and refer
to, from and after the Effective Date, the Credit Agreement as affected by this Agreement.

          (b) The Borrower hereby agrees that all of the covenants and agreements contained in the
Credit Agreement and the Loan Documents are hereby ratified and confirmed in all respects.

          (c) This Agreement constitutes a Loan Document.

          7. Counterparts. This Agreement may be executed in counterparts, each of which shall be an
original, and all of which, taken together, shall constitute a single instrument. Delivery of an
executed counterpart of a signature page to this Agreement by telecopier shall be effective as
delivery of a manually executed counterpart of this Agreement.

          8. Governing Law. This Agreement shall be governed by, and construed in accordance with, the
laws of the State of New York without giving effect to the conflict of laws provisions thereof.

          9. Limitation. Each party hereto hereby agrees that this Agreement does not impose on Lehman
Commercial Paper Inc. affirmative obligations or indemnities not existing, as of the date of its
petition commencing its proceeding under chapter 11 of the United States Code, and that could give
rise to administrative expense claims.

          10. Indemnity. The Borrower, Holdings and the other Loan Parties further agree, jointly and
severally, to defend, protect, indemnify and hold harmless the Administrative Agent and the
Lender, each of their respective Affiliates and their respective officers, directors, employees,
attorneys and agents (collectively the “Indemnitees”) from and against any and all

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liabilities, obligations, losses, damages, penalties, actions, judgments, suits, claims,
costs, expenses of any kind or nature whatsoever (including, without limitation, the reasonable
fees and expenses of counsel for such Indemnitees in connection with any investigative,
administrative or judicial proceeding, whether or not such Indemnitees shall be designated as a
party thereto), imposed on, incurred by, or asserted against such Indemnitees in any manner
relating to or arising out of this Agreement or any other Loan Document (collectively the
“Indemnified Matters”); provided, however, that neither the Borrower, Holdings or any
Loan Party shall have an obligation to an Indemnitee hereunder with respect to Indemnified Matters
caused or resulting from (a) a dispute among the Lender or a dispute between the Lender and the
Administrative Agent, or (b) the willful misconduct or gross negligence of such Indemnitee, or (c)
defense of claims by the Loan Parties relating to Lender’s Breach (but only if the Loan Parties
are the prevailing party with respect to such claims). If the undertaking to indemnify, pay and
hold harmless set forth in the preceding sentence may be unenforceable because it violates any law
or public policy, the Borrower, Holdings and the other Loan Parties shall contribute the maximum
portion which it is permitted to pay and satisfy under the applicable law, to the payment and
satisfaction of all Indemnified Matters incurred by Indemnities. This Section 10 shall survive the
payment of the Obligations and the termination of this Agreement or any other Loan Document.

[Signature Pages Follow]

5

 

          IN WITNESS WHEREOF the parties hereto have caused this Agreement
to be duly executed by their respective officers as of the date first
written above.

	 	 	 	 	 
	 	DHS DRILLING COMPANY, as the Borrower

 	 
	 	By:  	/s/ Gregory D. Tubbs
 	 
	 	 	Name:  	Gregory D. Tubbs  	 
	 	 	Title:  	Executive Vice President 	 
	 
	 	DHS HOLDING COMPANY, as Holdings

 	 
	 	By:  	/s/ Gregory D. Tubbs
 	 
	 	 	Name:  	Gregory D. Tubbs  	 
	 	 	Title:  	Executive Vice President 	 
	 

[Signature Page to Agreement]

 

 

	 	 	 	 	 
	 	LEHMAN COMMERCIAL PAPER, INC, as

Administrative Agent and Lender

 	 
	 	By:  	/s/ Ashvin Rao
 	 
	 	 	Name:  	Ashvin Rao 	 
	 	 	Title:  	Authorized Signatory 	 
	 

[Signature Page to Agreement]

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00186-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00186-of-00352.parquet"}]]