Document:

Exhibit 10.1

 

RESIGNATION, CONSENT AND APPOINTMENT AGREEMENT AND AMENDMENT AGREEMENT

(BONANZA CREEK ENERGY, INC.)

 

This Resignation, Consent and Appointment Agreement and Amendment Agreement (this “Agreement”) is effective as of April 6, 2012 (the “Effective Date”), by and among BNP PARIBAS (“BNP”), in its capacity as Administrative Agent (in such capacity, the “Existing Agent”), and in its capacity as Issuing Lender, under that certain Credit Agreement and other Loan Documents referred to below, the Successor Agent (as defined below), the Successor Issuing Bank (as defined below) and the other parties hereto.  Capitalized terms defined in the Credit Agreement have the same meanings when used herein unless otherwise defined herein.

 

RECITALS

 

WHEREAS, the Existing Agent serves as Administrative Agent under (a) the Credit Agreement, dated as of March 29, 2011 (as amended, restated, supplemented or otherwise modified, the “Credit Agreement”), among Bonanza Creek Energy, Inc. (the “Borrower”), the Existing Agent, BNP and the other financial institutions party thereto (b) the Guaranty Agreement, dated as of March 29, 2011, made by each of the Guarantors (as defined therein) for the benefit of the Existing Agent, (c) the Security Agreement, dated as of March 29, 2011, made by each of the Grantors (as defined therein) and the Existing Agent and (d) the other Loan Documents (as defined in the Credit Agreement);

 

WHEREAS, the Existing Agent desires to resign as Administrative Agent under the Credit Agreement, the other Loan Documents (as defined in the Credit Agreement) and any other documents referred to in the Credit Agreement as to which the Existing Agent is acting as an administrative agent thereunder (collectively, as amended, restated, supplemented or otherwise modified, the “Loan Documents”);

 

WHEREAS, the Required Lenders and the Borrower, by entering into this Agreement, are consenting to the appointment of KeyBank National Association (“KeyBank”) as successor Administrative Agent (in such capacity, the “Successor Agent”) under the Credit Agreement and the other Loan Documents and the Successor Agent, by entering into this Agreement, accepts such appointment;

 

WHEREAS, BNP serves as an Issuing Lender (the “Existing Issuing Bank”) under the Credit Agreement and desires to resign as an Issuing Lender thereunder; and

 

WHEREAS, the Borrower and the Required Lenders, by entering into this Agreement, are consenting to the appointment of KeyBank as a successor Issuing Lender (in such capacity, the “Successor Issuing Bank”) under the Credit Agreement and the Successor Issuing Bank, by entering into this Agreement, accepts such appointment.

 

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which hereby are acknowledged, the parties hereto hereby agree as follows:

 

 

Section 1.  Resignation, Consent and Appointment.

 

(a)                                 As of the Effective Date (i) the Existing Agent hereby resigns as the Administrative Agent as provided under the Credit Agreement and shall have no further obligations in such capacity under the Credit Agreement and the other Loan Documents, except to the extent of any obligation expressly stated in the Credit Agreement or other Loan Documents as surviving any such resignation; (ii) the Required Lenders appoint KeyBank as successor Administrative Agent under the Credit Agreement and the other Loan Documents, and the Borrower hereby consents to such appointment; (iii) KeyBank hereby accepts its appointment as Successor Agent under the Credit Agreement and the other Loan Documents; and (iv) the parties hereto authorize each of the Existing Agent and the Successor Agent to prepare, enter into, execute, record and/or file any and all notices, certificates, instruments, Uniform Commercial Code financing statements and/or other documents or agreements (including, without limitation, filings in respect of any collateral, and assignments, amendments or supplements to any UCC financing statements, mortgages, deeds of trust, security agreements, pledge agreements, intellectual property security agreements, certificates of title, stock powers, account control agreements, intercreditor agreements, or other Loan Documents), as either the Existing Agent or the Successor Agent deems reasonably necessary or desirable to effect or evidence (of public record or otherwise) the transactions herein contemplated, including, but not limited to, the resignation of the Existing Agent and the appointment of the Successor Agent and any amendments to the Credit Agreement and Loan Documents set forth herein, and to maintain the validity, perfection, priority, of, or assign to the Successor Agent, any and all liens and security interests in respect of any and all collateral, and each of the Borrower, the Existing Agent and the Successor Agent hereby agrees to execute and deliver (and the Borrower agrees to cause each applicable Obligor and/or other guarantor or grantor of collateral to execute and deliver) any documentation reasonably necessary or reasonably requested by the Existing Agent or the Successor Agent to evidence such resignation and appointment or such amendments or to maintain the validity, perfection or priority of, or assign to the Successor Agent, any such liens or security interests, or to maintain the rights, powers and privileges afforded to the Administrative Agent under any of the Loan Documents.

 

(b)                                 As of the Effective Date (i) BNP hereby resigns as an Issuing Lender as provided under the Credit Agreement and shall have no further obligations in such capacity under the Credit Agreement and the other Loan Documents, except (A) to the extent of any obligation expressly stated in the Credit Agreement or other Loan Documents as surviving any such resignation and (B) with respect to any Letter of Credit issued by it that is outstanding on the Effective Date (as set forth on Schedule 1 hereto, collectively, the “Residual Letters of Credit”), which until such Residual Letter of Credit is replaced, terminated or otherwise expired shall remain the obligation of the Existing Issuing Bank in accordance with the terms of the Credit Agreement; (ii) the Borrower and the Required Lenders consent to the appointment of KeyBank as a successor Issuing Lender under the Credit Agreement; and (iii) KeyBank hereby accepts its appointment as Successor Issuing Bank under the Credit Agreement.

 

(c)                                  The parties hereto hereby confirm that the Successor Agent succeeds to the rights and obligations of the Administrative Agent under the Credit Agreement and the other Loan Documents and becomes vested with all of the rights, powers, privileges and duties of the Administrative Agent under the Credit Agreement and the other Loan Documents, and the Existing Agent is discharged from all of its duties and obligations as the Administrative Agent under the Credit Agreement and the other Loan Documents (except to the extent of any obligation expressly stated in the Credit Agreement or other Loan Document as surviving any such resignation), in each case as of the Effective Date.

 

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(d)                                 The parties hereto hereby confirm that the Successor Issuing Bank succeeds to the rights and obligations of the Existing Issuing Bank under the Credit Agreement and becomes vested with all of the rights, powers, privileges and duties of the Existing Issuing Bank under the Credit Agreement, and the Existing Issuing Bank is discharged from all of its duties and obligations as an Issuing Lender under the Credit Agreement and the other Loan Documents (except (i) to the extent of any obligation expressly stated in the Credit Agreement or other Loan Document as surviving any such resignation and (ii) with respect to any Residual Letter of Credit, which until such Residual Letter of Credit is replaced, terminated or otherwise expired shall remain the obligation of the Existing Issuing Bank in accordance with the terms of the Credit Agreement), in each case as of the Effective Date.

 

(f)                                   The parties hereto hereby confirm that, as of the Effective Date, all of the protective provisions, indemnities, and expense obligations under the Credit Agreement and the other Loan Documents continue in effect for the benefit of the Existing Agent, its sub-agents and their respective affiliates, officers, directors, trustees, employees, advisors, agents and controlling Persons in respect of any actions taken or omitted to be taken by any of them while the Existing Agent was acting as Administrative Agent or thereafter pursuant to or in furtherance of the provisions of this Agreement, and inure to the benefit of the Existing Agent.  The parties hereto agree that the Successor Agent shall have no liability for any actions taken or omitted to be taken by the Existing Agent while it served as the Administrative Agent under the Credit Agreement and the other Loan Documents or for any other event or action related to the Credit Agreement that occurred prior to the effectiveness of this Agreement.  The parties hereto agree that the Existing Agent shall have no liability for any actions taken or omitted to be taken by the Successor Agent as the Administrative Agent under the Credit Agreement and the other Loan Documents.

 

(g)                                  The parties hereto hereby confirm that, as of the Effective Date, all of the protective provisions, indemnities, and expense obligations under the Credit Agreement and the other Loan Documents continue in effect for the benefit of the Existing Issuing Bank, its sub-agents and their respective affiliates, officers, directors, trustees, employees, advisors, agents and controlling Persons in respect of any actions taken or omitted to be taken by any of them while the Existing Issuing Bank was acting as an Issuing Lender (including following the Effective Date until such time as no Residual Letters of Credit remain issued and outstanding) and inure to the benefit of the Existing Issuing Bank. The parties hereto agree that the Successor Issuing Bank shall have no liability for any actions taken or omitted to be taken by the Existing Issuing Bank while the Existing Issuing Bank served as an Issuing Lender under the Credit Agreement and the other Loan Documents or for any other event or action related to the Credit Agreement that occurred prior to the effectiveness of this Agreement.  The parties hereto agree that the Existing Issuing Bank shall have no liability for any actions taken or omitted to be taken by the Successor Issuing Bank as an Issuing Lender under the Credit Agreement and the other Loan Documents.

 

(h)                                 The Existing Agent hereby assigns to the Successor Agent, effective on and after the Effective Date, any powers of attorney, liens, or security interests and all other rights and interests granted to the Existing Agent, for the ratable benefit of the Lenders and any other secured parties on whose behalf it may be acting under any security documents included within the Loan Documents (collectively, the “Secured Parties”), under the Credit Agreement and other Loan Documents, and the Successor Agent hereby accepts the benefit of all such powers of attorney, liens and security interests and other rights and interests, for its benefit and for the ratable benefit of the Secured Parties.

 

(i)                                     On and after the Effective Date, all possessory collateral held by the Existing Agent for the benefit of the Secured Parties shall be deemed to be held by the Existing Agent as agent and

 

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bailee for the Successor Agent for the benefit and on behalf of the Successor Agent and the Secured Parties until such time as such possessory collateral has been delivered to the Successor Agent.  Without limiting the generality of the foregoing, any reference to the Existing Agent in any publicly filed document, to the extent such filing relates to the liens and security interests in any collateral assigned hereby and until such filing is modified to reflect the interests of the Successor Agent, shall, with respect to such liens and security interests, constitute a reference to the Existing Agent as collateral representative of the Successor Agent (provided that the parties hereto agree that the Existing Agent’s role as such collateral representative shall impose no further duties, obligations or liabilities on the Existing Agent, including, without limitation, any duty to take any type of direction regarding any action to be taken against such collateral, whether such direction comes from the Successor Agent, the Secured Parties or otherwise, and the Existing Agent shall have the full benefit of all of the protective provisions of Article IX (The Administrative Agent and the Issuing Lender) and Section 10.07 (Indemnification) of the Credit Agreement, while serving in such capacity).  The Existing Agent agrees to deliver all possessory collateral to the Successor Agent on or promptly following the Effective Date, and the Successor Agent agrees to take possession thereof upon such tender by the Existing Agent.

 

Section 2.  Amendments to Credit Agreement.  Section 1.01 of the Credit Agreement is hereby amended by deleting “BNP Paribas” where it appears in the definition of “Prime Rate” and substituting “the Administrative Agent” in lieu thereof.

 

Section 3.  Waiver of Notices.  The Borrower and the Required Lenders hereby waive any notice, timing or other requirement of the Credit Agreement or the other Loan Documents (including, without limitation, pursuant to Section 9.06 of the Credit Agreement) related to the resignation of the Existing Agent and/or the Existing Issuing Bank or the appointment or designation of the Successor Agent and/or the Successor Issuing Bank.

 

Section 4.  Representations and Warranties.  Each party hereto hereby represents and warrants on and as of the Effective Date that it is legally authorized to enter into and has duly executed and delivered this Agreement.

 

Section 5.  Notices.  Commencing as of the Effective Date, notices to the Successor Agent and the Successor Issuing Bank in respect of the Credit Agreement or any other Loan Document shall be directed as follows (and any notice provisions of the Credit Agreement and the other Loan Documents are hereby amended to reflect such notice information):

 

KeyBank National Association

Attn:  Energy Group

8115 Preston Rd., Dallas TX 75225

trajan@keybanccm.com

 

Section 6.  Miscellaneous.

 

6.01.  Return of Payments.  In the event that, after the Effective Date, the Existing Agent receives any principal, interest or other amount owing to any Lender or the Successor Agent under the Credit Agreement or any other Loan Document, or receives any instrument, agreement, report, financial statement, insurance policy, notice or other document in its capacity as Existing Agent, the Existing Agent agrees to promptly forward the same to the Successor Agent and to hold the same in trust for the Successor Agent until so forwarded.  The parties hereto agree that any provision of any of the Loan Documents directing the Borrower to make payment to the Existing Agent shall be hereby

 

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amended to direct the Borrower to make payment to the account designated by the Successor Agent to the Borrower from time to time.

 

6.02.  Agency Fees.  The Borrower agrees to pay to the Successor Agent all agency fees as separately agreed between the Borrower and KeyBank from time to time.  The Fee Letter dated as of February 11, 2011, between BNP and the Borrower, as amended (the “Fee Letter”), is terminated as of the effective time of the agency transfer described herein and neither the Borrower nor the Existing Agent shall have any further obligations thereunder (except for any obligations that expressly survive the termination of the Fee Letter); provided that the Borrower and the Existing Agent shall maintain the confidentiality of the Fee Letter in accordance with the terms thereof.

 

6.03   Successors and Assigns.  This Agreement shall inure to the benefit of and be binding upon the successors and permitted assigns of each of the parties hereto.

 

6.04.  Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed to be an original, but all of which taken together shall be one and the same instrument.  Delivery of this Agreement by facsimile or email transmission or other electronic means shall be effective as delivery of a manually executed counterpart hereof.

 

6.05.  Headings.  The paragraph headings used in this Agreement are for convenience only and shall not affect the interpretation of any of the provisions hereof.

 

6.06.  Interpretation.  This Agreement is a Loan Document for all purposes under the Credit Agreement.

 

6.07.  APPLICABLE LAW.  THIS AGREEMENT SHALL BE GOVERNED BY, AND BE CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF TEXAS.

 

[Signature page follows]

 

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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed and made effective as of the date first written above.

 

	
 
    	
BNP PARIBAS,
    
	
 
    	
as   Existing Agent and Existing Issuing Bank and as an existing Lender
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    	
/s/   Greg Smothers
    
	
 
    	
 
    	
Name:
    	
Greg   Smothers
    
	
 
    	
 
    	
Title:
    	
Director
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    	
/s/   Betsy Jocher
    
	
 
    	
 
    	
Name:
    	
Betsy   Jocher
    
	
 
    	
 
    	
Title:
    	
Director
    
					

 

RESIGNATION, CONSENT AND APPOINTMENT AGREEMENT AND AMENDMENT AGREEMENT

BONANZA CREEK ENERGY, INC.

 

 

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed and made effective as of the date first written above.

	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
KEYBANK NATIONAL ASSOCIATION
    
	
 
    	
as   Successor Agent, Successor Issuing Bank and as an existing Lender
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
 
    	
/s/   Thomas Rajan
    
	
 
    	
 
    	
 
    	
Name:   
    	
Thomas   Rajan
    
	
 
    	
 
    	
 
    	
Title:
    	
Managing   Director
    
						

 

RESIGNATION, CONSENT AND APPOINTMENT AGREEMENT AND AMENDMENT AGREEMENT

BONANZA CREEK ENERGY, INC.

 

 

Accepted and Agreed as of the Effective Date:

 

	
 
    	
BONANZA CREEK ENERGY, INC.:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    	
/s/   James R. Casperson
    
	
 
    	
 
    	
Name:
    	
James   R. Casperson
    
	
 
    	
 
    	
Title:
    	
Chief   Financial Officer and
    
	
 
    	
 
    	
Executive   Vice President
    

 

RESIGNATION, CONSENT AND APPOINTMENT AGREEMENT AND AMENDMENT AGREEMENT

BONANZA CREEK ENERGY, INC.

 

 

	
 
    	
BMO HARRIS FINANCING, INC.,
    
	
 
    	
as a Lender
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    	
/s/   Gumaro Tijerina
    
	
 
    	
 
    	
Name:   
    	
Gumaro   Tijerina
    
	
 
    	
 
    	
Title:
    	
Director
    

 

RESIGNATION, CONSENT AND APPOINTMENT AGREEMENT AND AMENDMENT AGREEMENT

BONANZA CREEK ENERGY, INC.

 

 

	
  
    	
COMPASS BANK,
    
	
 
    	
as a Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    	
/s/   Dorothy Marchand
    
	
 
    	
 
    	
Name:   
    	
Dorothy   Marchand
    
	
 
    	
 
    	
Title:
    	
Senior   Vice President
    

 

RESIGNATION, CONSENT AND APPOINTMENT AGREEMENT AND AMENDMENT AGREEMENT

BONANZA CREEK ENERGY, INC.

 

 

	
 
    	
WELLS FARGO BANK, NATIONAL ASSOCIATION,
    
	
 
    	
as a Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    	
/s/   Tim Green
    
	
 
    	
 
    	
Name:   
    	
Tim   Green
    
	
 
    	
 
    	
Title:
    	
Director
    

 

RESIGNATION, CONSENT AND APPOINTMENT AGREEMENT AND AMENDMENT AGREEMENT

BONANZA CREEK ENERGY, INC.

 

 

	
 
    	
 
    
	
 
    	
SOCIÉTÉ GÉNÉRALE,
    
	
 
    	
as a Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    	
/s/   Anson Williams
    
	
 
    	
 
    	
Name:   
    	
Anson   Williams
    
	
 
    	
 
    	
Title:
    	
Director
    

 

RESIGNATION, CONSENT AND APPOINTMENT AGREEMENT AND AMENDMENT AGREEMENT

BONANZA CREEK ENERGY, INC.

 

 

	
 
    	
 
    
	
 
    	
U.S. BANK NATIONAL ASSOCIATION,
    
	
 
    	
as a Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    	
/s/ Tara McLean
    
	
 
    	
 
    	
Name:   
    	
Tara   McLean
    
	
 
    	
 
    	
Title:
    	
Vice   President
    

 

RESIGNATION, CONSENT AND APPOINTMENT AGREEMENT AND AMENDMENT AGREEMENT

BONANZA CREEK ENERGY, INC.

 

 

Schedule 1

Residual Letters of Credit

 

None.

 

RESIGNATION, CONSENT AND APPOINTMENT AGREEMENT AND AMENDMENT AGREEMENT

BONANZA CREEK ENERGY, INC.Exhibit 10.2

 

AMENDMENT NO. 3 & AGREEMENT

 

This AMENDMENT NO. 3 & AGREEMENT (the “Amendment”) dated as of May 8, 2012 (the “Effective Date”) is among Bonanza Creek Energy, Inc., a Delaware corporation (“Borrower”), the Guarantors (as defined in the Credit Agreement referred to below), the Lenders (as defined below), and KeyBank National Association, as Administrative Agent and as Issuing Lender (as such terms are defined below).

 

RECITALS

 

A.                                    The Borrower is party to that certain Credit Agreement dated as of March 29, 2011 (as amended, restated or otherwise modified from time to time, the “Credit Agreement”) among the Borrower, the lenders party thereto from time to time (the “Lenders”), and KeyBank National Association, as administrative agent (in such capacity, the “Administrative Agent”) and as issuing lender (in such capacity, the “Issuing Lender”).  Each capitalized term defined in the Credit Agreement and used herein without definition shall have the meaning assigned to such term in the Credit Agreement, unless expressly provided to the contrary.

 

B.                                    The Lenders wish to, subject to the terms and conditions of this Amendment, amend the Credit Agreement as provided herein.

 

THEREFORE, the Borrower, the Guarantors, the Administrative Agent, the Issuing Lender, and the Lenders hereby agree as follows:

 

Section 1.                                          Defined Terms.  As used in this Amendment, each of the terms defined in the opening paragraph and the Recitals above shall have the meanings assigned to such terms therein.

 

Section 2.                                          Other Definitional Provisions.  Article, Section, Schedule, and Exhibit references are to Articles and Sections of and Schedules and Exhibits to this Amendment, unless otherwise specified.  All references to instruments, documents, contracts, and agreements are references to such instruments, documents, contracts, and agreements as the same may be amended, supplemented, and otherwise modified from time to time, unless otherwise specified.  The words “hereof”, “herein”, and “hereunder” and words of similar import when used in this Amendment shall refer to this Amendment as a whole and not to any particular provision of this Amendment.  The term “including” means “including, without limitation,”.  Paragraph headings have been inserted in this Amendment as a matter of convenience for reference only and it is agreed that such paragraph headings are not a part of this Amendment and shall not be used in the interpretation of any provision of this Amendment.

 

Section 3.                                          Amendments to Credit Agreement.

 

(a)                                 The preamble to the Credit Agreement is hereby deleted in its entirety and replaced with the following:

 

This Credit Agreement dated as of March 29, 2011 is among Bonanza Creek Energy, Inc., a Delaware corporation (the “Borrower”), the  Lenders (as

 

 

defined below), KeyBank National Association, as Administrative Agent and Issuing Lender (each term as defined below) for such Lenders, Wells Fargo Bank, National Association and BMO Harris Financing, Inc., as co-syndication agents (the “Co-Syndication Agents”), and Compass Bank and Société Générale, as co-documentation agent (the “Co-Documentation Agents”).

 

(b)                                 Section 1.01 of the Credit Agreement is hereby amended by deleting the following defined terms: “Book Runner”, “Documentation Agent”, “Syndication Agent”, and “Sole Lead Arranger”.

 

(c)                                  Section 1.01 of the Credit Agreement is hereby amended by adding the following new defined terms:

 

“Book Runner” means KeyBank National Association in its capacity as book runner.

 

“Co-Documentation Agent” is defined in the preamble.

 

“Co-Syndication Agent” is defined in the preamble.

 

“Sole Lead Arranger” means KeyBank National Association in its capacity as sole lead arranger.

 

(d)                                 Section 5.06(d) of the Credit Agreement is hereby deleted in its entirety and replaced with the following:

 

(d)                                 Production Reports.  As soon as available and in any event within 60 days after the end of each calendar quarter, commencing with the calendar quarter ended March 31, 2012, a report certified by a Responsible Officer of the Borrower in form and substance reasonably satisfactory to the Administrative Agent prepared by the Borrower covering each of the Oil and Gas Properties of the Borrower and its Subsidiaries and detailing on a monthly basis (i) the production, revenue, and price information and associated operating expenses for each such month during such quarter, (ii) any changes to any producing reservoir, production equipment, or producing well during each such month during such quarter, which changes could cause a Material Adverse Change, (iii) any sales of the Borrower’s or any Subsidiaries’ Oil and Gas Properties during such quarter, and (iv) the forecasted production of crude oil, natural gas, and natural gas liquids, calculated separately, for the 60 months following the end of such calendar quarter;

 

(e)                                  Section 6.14 of the Credit Agreement is hereby deleted in its entirety and replaced with the following:

 

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Section 6.14                            Limitation on Speculative Hedging.  The Borrower shall not, nor shall the Borrower permit any of its Subsidiaries to, (a) purchase, assume, or hold a speculative position in any commodities market or futures market or enter into any Hedge Contract for speculative purposes, or (b) be party to or otherwise enter into any Hydrocarbon Hedge Agreement, Interest Hedge Agreement or any other Hedge Contract which (i) is entered into for reasons other than as a part of its normal business operations as a risk management strategy and/or hedge against changes resulting from market conditions related to the Borrower’s operations, (ii) when aggregated with other Hedge Contracts of the Borrower and each Subsidiary then in effect, covers notional volumes in excess of the Applicable Hedge Percentage (as defined below) of the lesser of, for each month occurring during the tenor of the Hedge Contract, (1) the Current Production and (2) the Forecasted Production, (iii) covers fluctuations in interest rates for notional principal amounts in excess of 75% of the Debt for borrowed money of the Borrower and its Subsidiaries, (iv) is 5 years or longer in duration, (v) requires the Borrower or any Subsidiary to put up money, assets, or other security (other than letters of credit or guaranties permitted by Section 6.02 and liens on cash and securities to the extent permitted under Section 6.01(m)) against the event of its nonperformance prior to actual default by the Borrower or such Subsidiary in performing its obligations thereunder, or (vi) is with a counterparty or has a guarantor of the obligation of the counterparty who (unless such counterparty is a Lender or one of its Affiliates) at the time the contract is made does not have long-term obligations rated BBB- or Baa3 or better, respectively, by either Standard & Poor’s Ratings Group or Moody’s Investors Service, Inc., or is an investment grade-rated industry participant (or such counterparty’s obligations are guaranteed by such a Person).  As used in this Section 6.14, “Current Production” means, for any month, the actual amount of production of crude oil, natural gas or natural gas liquids, calculated separately, for the month immediately prior to the month in which the applicable Hedge Contract is entered into.  As used in this Section 6.14, “Forecasted Production” means, for any month,  the forecasted production of crude oil, natural gas or natural gas liquids, calculated separately, anticipated to be produced during such month as set forth in the most recently delivered report pursuant to Section 5.06(d)(iv) of the Credit Agreement.  “Applicable Hedge Percentage” means, with respect to any Hedge Contract, the applicable percentage set forth below for the particular types of Hydrocarbons described below, which percentage is a function of the number of months that have elapsed since the date such Hedge Contract was entered into:

 

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Percentage Limitation
    	
 
    
	
Months Elapsed
   (relative to Hedge
   Contract effective
   date)
    	
 
    	
Crude Oil
    	
 
    	
Natural Gas
    	
 
    	
Natural Gas Liquids
    	
 
    
	
Months 1-12
    	
 
    	
100
    	
%
    	
100
    	
%
    	
100
    	
%
    
	
Months 13-36
    	
 
    	
75
    	
%
    	
75
    	
%
    	
75
    	
%
    
	
Months 37-60
    	
 
    	
50
    	
%
    	
50
    	
%
    	
50
    	
%
    

 

Notwithstanding the foregoing, (A) put option contracts that are not related to corresponding calls, collars, swaps or basis swaps shall not be included in calculating such percentage thresholds and (B) with regard to a “costless collar” that involves the purchase of a put and the sale of a call for the same volumes, dates and commodities, only the volumes associated with the call will be included in calculating such percentage thresholds.

 

(f)                                   Section 9.08 of the Credit Agreement is hereby deleted in its entirety and replaced with the following:

 

Section 9.08                            Additional Agents.  None of the Sole Lead Arranger, the Book Runner, the Co-Documentation Agents or the Co-Syndication Agents shall have any duties, obligations or liabilities in their respective capacities as arranger, book runner, documentation agent or syndication agent.  Without limiting the foregoing, none of the Sole Lead Arranger, the Book Runner, the Co-Syndication Agents or the Co-Documentation Agents shall have or be deemed to have any fiduciary relationship with any Lender, any Issuing Lender or the Administrative Agent.  Each Lender acknowledges that it has not relied, and will not rely, on the Sole Lead Arranger, the Book Runner, the Co-Syndication Agents or the Co-Documentation Agents in deciding to enter into this Agreement or in taking or not taking action hereunder.

 

(g)                                  Schedule II to the Credit Agreement is hereby deleted in its entirety and replaced with Schedule II attached hereto.

 

Section 4.                                          Redetermination of Borrowing Base.  Subject to the terms of this Amendment, the Lenders and the Borrower hereby agree that as of the Effective Date, the Borrowing Base shall be $245,000,000.00, and the amount of such Borrowing Base shall remain in effect until the Borrowing Base is redetermined pursuant to Section 2.02 of the Credit Agreement.

 

Section 5.                                          Representations and Warranties.  The Borrower and each Guarantor represents and warrants that: (a) the representations and warranties contained in the Credit Agreement and the representations and warranties contained in the other Loan Documents are true and correct in all material respects on and as of the Effective Date as if made on and as of such date, except to the extent that any such representation or warranty expressly relates solely to an earlier date, in which case such representation or warranty is true and correct in all material respects as of

 

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such earlier date; (b) no Default has occurred and is continuing; (c) the execution, delivery and performance of this Amendment are within the corporate power and authority of such Person and have been duly authorized by appropriate corporate action and proceedings; (d) this Amendment constitutes the legal, valid, and binding obligation of such Person enforceable in accordance with its terms, except as limited by applicable bankruptcy, insolvency, reorganization, moratorium, or similar laws affecting the rights of creditors generally and general principles of equity; (e) there are no governmental or other third party consents, licenses and approvals required in connection with the execution, delivery, performance, validity and enforceability of this Amendment; (f) the Liens under the Security Instruments are valid and subsisting and secure Borrower’s obligations under the Loan Documents; and (g) as to each Guarantor, it has no defenses to the enforcement of its Guaranty.

 

Section 6.                                          Conditions to Effectiveness.  This Amendment shall become effective on the Effective Date and enforceable against the parties hereto upon the occurrence of the following conditions precedent:

 

(a)                                 The Administrative Agent shall have received multiple original counterparts, as requested by the Administrative Agent, of:

 

(i)                                     this Amendment duly and validly executed and delivered by duly authorized officers of the Borrower, the Guarantors, the Issuing Lender and the Lenders;

 

(ii)                                  a Note payable to the order of each Lender in the amount of its Commitment duly and validly executed and delivered by duly authorized officers of the Borrower;

 

(iii)                               reaffirmations of the Mortgages in a form satisfactory to the Administrative Agent duly and validly executed and delivered by duly authorized officers of the applicable Obligor and the Administrative Agent;

 

(iv)                              copies, certified as of the date of this Amendment by a Responsible Officer or the secretary or an assistant secretary of the Borrower of (A) the resolutions of the board of directors or managers (or other applicable governing body) of the Borrower approving the Loan Documents to which it is a party, (b) the articles or certificate (as applicable) of incorporation (or organization) and bylaws, limited liability company agreement, operating agreement, limited partnership agreement or other governing documents of the Borrower, and (c) all other documents evidencing other necessary corporate action and governmental approvals, if any, with respect to this Amendment, the Credit Agreement, the Security Instruments, and the other Loan Documents to which the Borrower is a party; and

 

(v)                                 copies, certified as of the date of this Amendment by a Responsible Officer or the secretary or an assistant secretary of each Guarantor of (a) the resolutions of the board of directors or managers (or other applicable governing body) of such Guarantor approving the Loan Documents to which it is a party, (b) the articles or certificate (as applicable) of incorporation (or organization) and bylaws, limited liability company agreement, operating agreement, limited partnership agreement or other governing documents of such Guarantor, and (c) all other documents evidencing other necessary corporate action and governmental approvals, if any, with respect to the 

 

5

 

Guaranty, the Security Instruments, and the other Loan Documents to which such Guarantor is a party.

 

(b)                                 No Default shall have occurred and be continuing as of the Effective Date.

 

(c)                                  The representations and warranties in this Amendment shall be true and correct in all material respects.

 

(d)                                 The Borrower shall have paid (i) all costs and expenses which have been invoiced and are payable pursuant to Section 10.04 of the Credit Agreement, (ii) to the Administrative Agent, all costs and fee payable pursuant to that certain fee letter between the Borrower and the Administrative Agent dated as of April 6, 2012, and (iii) to the Administrative Agent for the account of certain Lenders, an upfront fee in the amount of $345,000.

 

Section 7.                                          Acknowledgments and Agreements.

 

(a)                                 The Borrower acknowledges that on the date hereof all Obligations are payable without defense, offset, counterclaim or recoupment.

 

(b)                                 The Administrative Agent, the Issuing Lender and the Lenders hereby expressly reserve all of their rights, remedies, and claims under the Loan Documents.  Nothing in this Amendment shall constitute a waiver or relinquishment of (i) any Default or Event of Default under any of the Loan Documents, (ii) any of the agreements, terms or conditions contained in any of the Loan Documents, (iii) any rights or remedies of the Administrative Agent, the Issuing Lender or any Lender with respect to the Loan Documents, or (iv) the rights of the Administrative Agent, the Issuing Lender or any Lender to collect the full amounts owing to them under the Loan Documents.

 

(c)                                  Each of the Borrower, the Administrative Agent, the Issuing Lender and the Lenders does hereby adopt, ratify, and confirm the Credit Agreement, as amended hereby, and acknowledges and agrees that the Credit Agreement, as amended hereby, is and remains in full force and effect, and the Borrower acknowledges and agrees that its liabilities and obligations under the Credit Agreement, as amended hereby, are not impaired in any respect by this Amendment.

 

(d)                                 From and after the Effective Date, all references to the Credit Agreement and the Loan Documents shall mean such Credit Agreement and such Loan Documents as amended by this Amendment.

 

(e)                                  This Amendment is a Loan Document for the purposes of the provisions of the other Loan Documents.  Without limiting the foregoing, any breach of representations, warranties, and covenants under this Amendment shall be a Default or Event of Default, as applicable, under the Credit Agreement.

 

Section 8.                                          Reaffirmation of Guaranty.  Each Guarantor hereby ratifies, confirms, acknowledges and agrees that its obligations under its Guaranty are in full force and effect and that such Guarantor continues to unconditionally and irrevocably guarantee the full and punctual payment, when due, whether at stated maturity or earlier by acceleration or otherwise, of all of the 

 

6

 

Obligations, as such Obligations may have been amended by this Amendment, and its execution and delivery of this Amendment does not indicate or establish an approval or consent requirement by the Guarantor in connection with the execution and delivery of amendments, consents or waivers to the Credit Agreement or any of the other Loan Documents.

 

Section 9.                                          Counterparts.  This Amendment may be signed in any number of counterparts, each of which shall be an original and all of which, taken together, constitute a single instrument.  This Amendment may be executed by facsimile signature or signature delivered by other electronic means and all such signatures shall be effective as originals.

 

Section 10.                                   Successors and Assigns.  This Amendment shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns permitted pursuant to the Credit Agreement.

 

Section 11.                                   Invalidity.  In the event that any one or more of the provisions contained in this Amendment shall for any reason be held invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect any other provision of this Amendment.

 

Section 12.                                   Governing Law.  This Amendment shall be deemed to be a contract made under and shall be governed by and construed in accordance with the laws of the State of Texas.

 

Section 13.                                   RELEASE.  THE BORROWER ACKNOWLEDGES THAT ON THE DATE HEREOF ALL OBLIGATIONS ARE PAYABLE WITHOUT DEFENSE, OFFSET, COUNTERCLAIM OR RECOUPMENT.  IN ADDITION, EACH OF THE BORROWER, THE GUARANTORS AND EACH OF THEIR RESPECTIVE SUBSIDIARIES (FOR THEMSELVES AND THEIR RESPECTIVE SUCCESSORS, AGENTS, ASSIGNS, TRANSFEREES, OFFICERS, DIRECTORS, EMPLOYEES, SHAREHOLDERS, ATTORNEYS AND AGENTS) HEREBY RELEASES ANY AND ALL CLAIMS, CAUSES OF ACTION OR OTHER DISPUTES IT MAY HAVE AGAINST THE ADMINISTRATIVE AGENT, THE ISSUING LENDER, ANY OF THE LENDERS, LEGAL COUNSEL TO THE ADMINISTRATIVE AGENT, THE ISSUING LENDER OR ANY OF THE LENDERS, CONSULTANTS HIRED BY ANY OF THE FOREGOING, OR ANY OF THEIR RESPECTIVE AFFILIATES, SUBSIDIARIES, SHAREHOLDERS, AGENTS, DIRECTORS, OFFICERS, EMPLOYEES, REPRESENTATIVES, SUCCESSORS OR ASSIGNS OF ANY KIND OR NATURE ARISING OUT OF, RELATED TO, OR IN ANY WAY CONNECTED WITH, THE CREDIT AGREEMENT OR THE LOAN DOCUMENTS, IN EACH CASE WHICH MAY HAVE ARISEN ON OR BEFORE THE DATE OF THIS AMENDMENT.  EACH OF THE BORROWER, THE GUARANTORS AND THEIR RESPECTIVE SUBSIDIARIES HEREBY ACKNOWLEDGES THAT IT HAS READ THIS AMENDMENT AND HAS CONFERRED WITH ITS COUNSEL AND ADVISORS REGARDING ITS CONTENT, INCLUDING THIS SECTION 13, AND IS FREELY AND VOLUNTARILY ENTERING INTO THIS AMENDMENT, AND HEREBY AGREES TO WAIVE ANY CLAIM THAT THE TERMS OF THIS AMENDMENT (INCLUDING, WITHOUT LIMITATION, THE RELEASES CONTAINED HEREIN) ARE INVALID OR OTHERWISE UNENFORCEABLE.

 

Section 14.                                   Entire Agreement.  THIS AMENDMENT, THE CREDIT AGREEMENT AS AMENDED BY THIS AMENDMENT, THE NOTES, AND THE OTHER LOAN

 

7

 

DOCUMENTS CONSTITUTE THE ENTIRE UNDERSTANDING AMONG THE PARTIES HERETO WITH RESPECT TO THE SUBJECT MATTER HEREOF AND SUPERSEDE ANY PRIOR AGREEMENTS, WRITTEN OR ORAL, WITH RESPECT THERETO.

 

THERE ARE NO UNWRITTEN ORAL AGREEMENTS AMONG THE PARTIES.

 

[signature pages follow]

 

8

 

EXECUTED effective as of the date first above written.

 

	
BORROWER:
    	
BONANZA   CREEK ENERGY, INC.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Michael R. Starzer
    
	
 
    	
 
    	
Michael   R. Starzer
    
	
 
    	
 
    	
President &   Chief Executive Officer
    

 

 

	
GUARANTORS:
    	
 
    	
 
    
	
 
    	
BONANZA   CREEK ENERGY OPERATING COMPANY, LLC
    
	
 
    	
By:   Bonanza Creek Energy, Inc., its Manager
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Michael R. Starzer
    
	
 
    	
 
    	
Michael   R. Starzer
    
	
 
    	
 
    	
President &   Chief Executive Officer
    
				

 

 

	
 
    	
BONANZA   CREEK ENERGY RESOURCES,
    
	
 
    	
LLC
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Michael R. Starzer
    
	
 
    	
 
    	
Michael   R. Starzer
    
	
 
    	
 
    	
President,   Chief Executive Officer and Secretary
    

 

 

	
 
    	
LIBERTY   ENERGY COMPANY, LLC
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Michael R. Starzer
    
	
 
    	
 
    	
Michael   R. Starzer
    
	
 
    	
 
    	
President
    

 

Signature Page to Amendment No. 3 & Agreement

Bonanza Creek Energy, Inc.

 

 

	
 
    	
BONANZA   CREEK ENERGY MIDSTREAM,
    
	
 
    	
LLC
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Michael R. Starzer
    
	
 
    	
 
    	
Michael   R. Starzer
    
	
 
    	
 
    	
President,   Chief Executive Officer and Secretary
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
BONANZA   CREEK ENERGY UPSTREAM
    
	
 
    	
LLC
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Michael R. Starzer
    
	
 
    	
 
    	
Michael   R. Starzer
    
	
 
    	
 
    	
President,   Chief Executive Officer and Secretary
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
HOLMES   EASTERN COMPANY, LLC
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Michael R. Starzer
    
	
 
    	
 
    	
Michael   R. Starzer
    
	
 
    	
 
    	
President   and Secretary
    

 

Signature Page to Amendment No. 3 & Agreement

Bonanza Creek Energy, Inc.

 

 

	
ADMINISTRATIVE AGENT/
    	
 
    
	
ISSUING LENDER/LENDER:
    	
KEYBANK   NATIONAL ASSOCIATION, 
    as Administrative Agent, Issuing Lender, and a Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Craig A. Hanselman
    
	
 
    	
Name:   
    	
Craig   A. Hanselman
    
	
 
    	
Title:   
    	
Vice   President
    

 

Signature Page to Amendment No. 3 & Agreement

Bonanza Creek Energy, Inc.

 

 

	
LENDER:
    	
COMPASS   BANK, as a Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Dorothy Marchand
    
	
 
    	
Name:   
    	
Dorothy   Marchand
    
	
 
    	
Title:   
    	
Senior   Vice President
    

 

Signature Page to Amendment No. 3 & Agreement

Bonanza Creek Energy, Inc.

 

 

	
LENDER:
    	
SOCIÉTÉ   GÉNÉRALE, as a Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   David M. Bornstein
    
	
 
    	
Name:   
    	
David   M. Bornstein
    
	
 
    	
Title:   
    	
Director
    

 

Signature Page to Amendment No. 3 & Agreement

Bonanza Creek Energy, Inc.

 

 

	
LENDER:
    	
BMO   HARRIS FINANCING, INC., as a Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Kevin Utsey
    
	
 
    	
Name:   
    	
Kevin   Utsey
    
	
 
    	
Title:   
    	
Director
    

 

Signature Page to Amendment No. 3 & Agreement

Bonanza Creek Energy, Inc.

 

 

	
LENDER:
    	
WELLS   FARGO BANK. N.A., as a Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Suzanne Ridenhour
    
	
 
    	
Name:   
    	
Suzanne   Ridenhour
    
	
 
    	
Title:   
    	
Vice   President
    

 

Signature Page to Amendment No. 3 & Agreement

Bonanza Creek Energy, Inc.

 

 

	
LENDER:
    	
ROYAL   BANK OF CANADA, as a Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Mark Lumpkin, Jr.
    
	
 
    	
Name:   
    	
Mark   Lumpkin, Jr.
    
	
 
    	
Title:   
    	
Authorized   Signatory
    

 

Signature Page to Amendment No. 3 & Agreement

Bonanza Creek Energy, Inc.

 

 

	
LENDER:
    	
JPMORGAN   CHASE BANK, N.A., as a Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Michael A. Kamauf
    
	
 
    	
Name:   
    	
Michael   A. Kamauf
    
	
 
    	
Title:   
    	
Vice   President
    

 

Signature Page to Amendment No. 3 & Agreement

Bonanza Creek Energy, Inc.

 

 

SCHEDULE II

 

BORROWER, ADMINISTRATIVE AGENT, AND LENDER INFORMATION

 

Borrower:

 

	
 
    	
Bonanza   Creek Energy, Inc.
    
	
 
    	
410   17th Street, Suite 1400
    
	
 
    	
Denver,   Colorado 80202
    
	
 
    	
Facsimile:   (720) 279-2331
    
	
 
    	
Attention:   Chief Executive Officer
    

 

Administrative Agent/Issuing Lender:

 

	
 
    	
KeyBank   National Association
    
	
 
    	
Attention:   Energy Group
    
	
 
    	
8115   Preston Rd.
    
	
 
    	
Dallas,   Texas 75225
    
	
 
    	
Trajan@keybanccm.com
    

 

Commitments

 

	
Lenders:
    	
 
    	
Commitments:
    	
 
    
	
KeyBank National Association
    	
 
    	
$
    	
97,959,183.70
    	
 
    
	
BMO Harris Financing, Inc.
    	
 
    	
$
    	
91,836,734.69
    	
 
    
	
Wells Fargo Bank, N.A.
    	
 
    	
$
    	
91,836,734.69
    	
 
    
	
Compass Bank
    	
 
    	
$
    	
79,591,836.73
    	
 
    
	
Société Générale
    	
 
    	
$
    	
79,591,836.73
    	
 
    
	
JPMorgan Chase Bank, N.A.
    	
 
    	
$
    	
79,591,836.73
    	
 
    
	
Royal Bank of Canada
    	
 
    	
$
    	
79,591,836.73
    	
 
    
	
Total:
    	
 
    	
$
    	
600,000,000.00
    	
 
    

 

Schedule II

Borrower, Administrative Agent, and Lender Information

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