Document:

EX-10.22.5.9.4

 Exhibit 10.22.5.9.4 

 
  
 FOURTH AMENDMENT TO SECOND 
 AMENDED AND RESTATED CREDIT AGREEMENT 

AMONG 

PRIMEENERGY CORPORATION 
 THE GUARANTORS PARTY HERETO 
 COMPASS BANK 

AS ADMINISTRATIVE AGENT, LETTER OF CREDIT ISSUER 
 AND COLLATERAL AGENT 
 AND 

THE LENDERS SIGNATORY HERETO 
 Effective 
 June 25, 2012 

 
  

 TABLE OF CONTENTS 

 

					
	 	  	 	 
		  	 	PAGE	  
	 ARTICLE I DEFINITIONS
	  	 	1	  
	 1.1 Terms Defined Above
	  	 	1	  
	 1.2 Terms Defined in Agreement
	  	 	2	  
	 1.3 References
	  	 	2	  
	 1.4 Articles and Sections
	  	 	2	  
	 1.5 Number and Gender
	  	 	2	  
	 1.6 Negotiated Transaction
	  	 	2	  
		
	 ARTICLE II AMENDMENTS
	  	 	2	  
	 2.1 Amendments to Section 1.2
	  	 	2	  
	 2.2 Amendment to Section 3.2
	  	 	4	  
	 2.3 Amendment to Section 5.2
	  	 	4	  
	 2.4 Amendment to Section 5.3
	  	 	5	  
	 2.5 Amendment to Section 5.9
	  	 	5	  
	 2.6 Amendments to Section 6.1
	  	 	5	  
	 2.7 Amendments to Section 6.7
	  	 	6	  
	 2.8 Amendments to Section 6.8
	  	 	7	  
	 2.9 Amendment to Section 6.9
	  	 	8	  
	 2.10 Amendments to Section 6.15
	  	 	9	  
	 2.11 Amendments to Section 6.16
	  	 	9	  
	 2.12 Replacement of Exhibit IV
	  	 	9	  
		
	 ARTICLE III CONDITIONS TO EFFECTIVENESS
	  	 	9	  
		
	 ARTICLE IV RATIFICATION AND ACKNOWLEDGMENTS
	  	 	10	  
		
	 ARTICLE V REPRESENTATIONS AND WARRANTIES
	  	 	10	  
		
	 ARTICLE VI MISCELLANEOUS
	  	 	10	  
	 6.1 Parties in Interest
	  	 	10	  
	 6.2 Rights of Third Parties
	  	 	10	  
	 6.3 Counterparts
	  	 	11	  
	 6.4 Integration
	  	 	11	  
	 6.5 Invalidity
	  	 	11	  
	 6.6 Governing Law
	  	 	11	  
	 6.7 Scope of Amendment
	  	 	11	  

  
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 FOURTH AMENDMENT TO SECOND 

AMENDED AND RESTATED CREDIT AGREEMENT 
 This FOURTH AMENDMENT TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT (this “Amendment”) is made and entered into effective as of June 25, 2012 (the “Effective
Date”), by and among PRIMEENERGY CORPORATION, a Delaware corporation (the “Borrower”), PRIMEENERGY MANAGEMENT CORPORATION, a New York corporation, PRIME OPERATING COMPANY, a Texas corporation, EASTERN OIL WELL SERVICE
COMPANY, a West Virginia corporation, SOUTHWEST OILFIELD CONSTRUCTION COMPANY, an Oklahoma corporation, E O W S MIDLAND COMPANY, a Texas corporation, each lender that is a signatory hereto (individually, together with its successors and assigns, a
“Lender” and collectively, together with their respective successors and assigns, the “Lenders”) and COMPASS BANK, an Alabama banking association and successor in interest to Guaranty Bank, FSB, a federal savings
bank, as agent for the Lenders, letter of credit issuer and collateral agent for the Lenders and any other Lender Hedge Counterparties (in such capacities, together with its successors in such capacity pursuant to the terms of the Second Amended and
Restated Credit Agreement referred to hereinafter, the “Agent”). 
 W I T N E
S S E T H: 
 WHEREAS, the Borrower, the Initial Guarantors (as such term is defined in such
Second Amended and Restated Credit Agreement), the Lenders and the Agent are parties to that certain Second Amended and Restated Credit Agreement dated effective July 30, 2010, as amended by that certain First Amendment to Second Amended and
Restated Credit Agreement dated effective September 30, 3010, that certain Second Amendment to Second Amended and Restated Credit Agreement dated effective June 22, 2011 and that certain Third Amendment to Second Amended and Restated
Credit Agreement dated effective December 8, 2011 (as so amended, the “Agreement”), to which reference is here made for all purposes; 
 WHEREAS, the Borrower, the Initial Guarantors, the Lenders and the Agent are desirous of amending the Agreement in the particulars hereinafter set forth; 

NOW, THEREFORE, in consideration of the mutual covenants and agreements of the parties to the Agreement, as set forth therein, and the
mutual covenants and agreements of the parties hereto, as set forth herein, the Borrower, the Initial Guarantors, the Lenders and the Agent agree as follows: 
 ARTICLE I 
 DEFINITIONS 

1.l Terms Defined Above. As used in this Fourth Amendment to Second Amended and Restated Credit Agreement, each of the terms
“Agent,” “Agreement,” “Amendment,” “Borrower,” “Effective Date,” “Lender” and “Lenders” shal1 have the meaning assigned to such
term hereinabove. 

 1.2 Terms Defined in Agreement. As used herein, each term defined in the Agreement
shall have the meaning assigned thereto in the Agreement, unless expressly provided herein to the contrary. 
 1.3
References. References in this Amendment to Schedule, Exhibit, Article, or Section numbers shall be to Schedules, Exhibits, Articles, or Sections of this Amendment, unless expressly stated to the contrary. References in this Amendment to
“hereby,” “herein,” “hereinafter,” “hereinabove,” “hereinbelow,” “hereof,” “hereunder” and words of similar import shall be to this Amendment in its entirety and not only to the
particular Schedule, Exhibit, Article, or Section in which such reference appears. Specific enumeration herein shall not exclude the general and, in such regard, the terms “includes” and “including” used herein shall mean
“includes, without limitation,” or “including, without limitation,” as the case may be, where appropriate. Except as otherwise indicated, references in this Amendment to statutes, sections, or regulations are to be construed as
including all statutory or regulatory provisions consolidating, amending, replacing, succeeding, or supplementing the statute, section, or regulation referred to. References in this Amendment to “writing” include printing, typing,
lithography, facsimile reproduction, and other means of reproducing words in a tangible visible form. References in this Amendment to amendments and other contractual instruments shall be deemed to include all exhibits and appendices attached
thereto and all subsequent amendments and other modifications to such instruments, but only to the extent such amendments and other modifications are not prohibited by the terms of this Amendment. References in this Amendment to Persons include
their respective successors and permitted assigns. 
 1.4 Articles and Sections. This Amendment, for convenience only,
has been divided into Articles and Sections; and it is understood that the rights and other legal relations of the parties hereto shall be determined from this instrument as an entirety and without regard to the aforesaid division into Articles and
Sections and without regard to headings prefixed to such Articles or Sections. 
 1.5 Number and Gender. Whenever the
context requires, reference herein made to the single number shall be understood to include the plural; and likewise, the plural shall be understood to include the singular. Definitions of terms defined in the singular or plural shall be equally
applicable to the plural or singular, as the case may be, unless otherwise indicated. Words denoting sex shall be construed to include the masculine, feminine and neuter, when such construction is appropriate; and specific enumeration shall not
exclude the general but shall be construed as cumulative. 
 1.6 Negotiated Transaction. Each party to this Amendment
affirms to the other that it has had the opportunity to consult, and discuss the provisions of this Amendment with, independent counsel and fully understands the legal effect of each provision. 

ARTICLE II 

AMENDMENTS 

Effective as of the Effective Date, the Agreement is amended as follows: 

2.1 Amendments to Section 1.2. Section 1.2 of the Agreement is amended to: 

  
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 (a) substitute the following for the definition of “Applicable Margin”
appearing in such Section 1.2: 
 “Applicable Margin’ shall mean (a) on any day and as to each LIBO
Rate Loan or Base Rate Loan under the Facility, as the case may be, outstanding on such day the amount determined by reference to the following table: 
  

									
	  	 	 Borrowing Base

Utilization
	  	 Applicable Margin
	  	 
	 	 	 	  	 LIB0 Rate Loans
	  	 Base Rate

Loans
	  	 
		 	 390%
	  	3.00%	  	2.00%	  	
		 	 3275% but
<90%
	  	2.75%	  	1.75%	  	
		 	 3250% but <7 5 %
	  	2.50%	  	1.50%	  	
		 	 3225% but <50%
	  	2.25%	  	1.25%	  	
		 	 <25%
	  	2.00%	  	1.00%	  	

 provided, however, during any period while there exists any Deficiency, the relevant amount above shall be
increased by two percent (2.00%) and, during any period while delivery of a required Reserve Report is delinquent, the Applicable Margin shall be that shown in the table above when the Borrowing Base Utilization is equal to or greater than
ninety percent (90%)”; 
 (b) substitute the following for the definition of “Commitment Termination Date”
appearing in such Section 2.1 : 
 “Commitment Termination Date’ shall mean the earlier of (a)
        , 2017 and (b) the date the Commitments are terminated pursuant to the provisions of Section 7.2.”; 

(c) substitute the following for the definition of “Guaranties” appearing in such Section 1.2: 

“Guaranties’ shall mean, collectively, the Guaranty dated the Closing Date by the Initial Guarantors in favor of the
Agent, in substantially the form attached hereto as Exhibit VII, and those certain agreements, each styled “Guaranty”, entered into after the Closing Date by Prime Offshore LLC and newly formed Domestic Subsidiaries of the Borrower
or any of its Subsidiaries in favor of the Agent for the benefit of the Lenders in substantially the form of the Guaranty executed by the Initial Guarantors or in such other form as shall be reasonably satisfactory to the Agent.”; 

  
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 (d) substitute the following for the definition of “Guarantors” appearing
in such Section 1.2” 
 “Guarantors’ shall mean the Initial Guarantors, Prime Offshore LLC and any
and all future Domestic Subsidiaries of the Borrower or any of its Subsidiaries.”; 
 (e) substitute the following for the
definition of “Joinder Agreement” appearing in such Section 1.2: 
 “Joinder Agreement’
shall mean each agreement, in form and substance reasonably acceptable to the Agent, pursuant to which a Domestic Subsidiary of the Borrower or any of its Subsidiaries makes certain representations and warranties to the Agent and the Lenders and
agrees to be bound by the covenants in Article V and Article VI as if such were stated to be applicable to it and which agreement shall constitute a Loan Document.”; 

(f) substitute the following for the definition of “Required Lenders” appearing in such Section 1.2: 

“Required Lenders’ shall mean, at any time when no Loans or Letters of Credit are outstanding, two or more Lenders
(including, in each relevant instance, the Lender serving as the Agent, so long as a Lender is serving as the Agent) holding in the aggregate Percentage Shares at least equal to sixty six and two thirds percent (66.67%) of the Commitment Amount
and, at any time when any Loans or Letters of Credit are outstanding, two or more Lenders (including, in each relevant instance, the Lender serving as the Agent, so long as a Lender is serving as the Agent) which in the aggregate hold at least equal
to sixty six and two thirds percent (66.67%) of the sum of the Loan Balance (without regard to any sale of a participation in any Loan) and the L/C Exposure.”; and 
 (g) substitute the following for the definition of “Subsidiary Guarantors” appearing in such Section 1.2: 
 “Subsidiary Guarantors’ shall mean the Domestic Subsidiaries of the Borrower or any Subsidiary of any such Subsidiary which are Guarantors.’” 

2.2 Amendment to Section 3.2. Clause (i) of Section 3.2 of the Agreement is amended to delete “, other than
Prime Offshore LLC,” appearing in the first line of the text of such clause (i). 
 2.3 Amendment to
Section 5.2. Section 5.2 of the Agreement is amended to read as follows in its entirety: 

  
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 “5.2 Quarterly Financial Statements and Compliance Certificates.
Deliver to the Agent and, upon request, any Lender, on or before the 50th day after the close of each of the first three quarterly periods of each fiscal year of the Borrower, commencing with the calendar quarter ending June 30, 2012,
(a) a copy of the unaudited consolidated and consolidating Financial Statements of the Borrower and its consolidated Subsidiaries as at the close of the relevant quarterly period and from the beginning of the relevant fiscal year to the end of
the relevant quarterly period, such Financial Statements to be certified by a Responsible Officer of the Borrower as having been prepared in accordance with GAAP consistently applied and as a fair presentation of the financial condition of the
Borrower on a consolidated basis with its consolidated Subsidiaries, subject to changes resulting from normal year end audit adjustments and (b) a Compliance Certificate prepared as of the close of the relevant quarterly period.”

 2.4 Amendment to Section 5.3. Section 5.3 of the Agreement is amended to read as follows in its entirety:

 “5.3 Annual Financial Statements and Compliance Certificate. Deliver to the Agent and, upon
request, any Lender, on or before the 105th day after the close of each fiscal year of the Borrower, commencing with that ending on December 31, 2012, (a) a copy of the annual audited consolidated and unaudited consolidating Financial
Statements of the Borrower and its consolidated Subsidiaries, such Financial Statements to be certified by a Responsible Officer of the Borrower as having been prepared in accordance with GAAP consistently applied and as a fair presentation of the
financial condition of the Borrower on a consolidated basis with its consolidated Subsidiaries and such audited Financial Statements to be accompanied by an unqualified opinion from a nationally-recognized or regionally-recognized firm of
independent certified public accountants or other independent certified public accountants acceptable to the Agent, and (b) a Compliance Certificate prepared as of the close of the relevant fiscal year.” 

2.5 Amendment to Section 5.9. Section 5.9 of the Agreement is amended to delete “, but expressly excluding Prime
Offshore LLC.” appearing in the third line of the text of such Section 5.9. 
 2.6 Amendments to
Section 6.1. Clause (iii) of the first proviso in Section 6.l(a) of the Agreement is amended to read as follows in its entirety: 

  
 -5-

 “(iii) Commodity Hedge Agreements, in form and substance and with an Approved Hedge
Counterparty, provided that the notional volumes for which (when aggregated with other Commodity Hedge Agreements then in effect, other than basis differential swaps on volumes already hedged pursuant to other Commodity Hedge Agreements) do not
exceed, as of the date such Commodity Hedge Agreement is executed, ninety percent (90%) of the reasonably anticipated projected production from proved developed producing reserves for each month during the period during which such Commodity
Hedge Agreement is in effect for each of crude oil and natural gas, calculated separately, for each of the next four succeeding calendar years and seventy percent (70%) of the reasonably anticipated projected production from proved developed
producing reserves for each month during the period during which such Commodity Hedge Agreement is in effect for each of crude oil and natural gas, calculated separately, for the fifth succeeding calendar year; provided that puts and put
options may be purchased on production that is subject of an acquisition, pending the completion of such acquisition, and puts, excluding the effect of the provision for pending acquisitions, may be purchased limited to total notional volumes of all
Commodity Hedge Agreements and put options not exceeding 100% of projected production from proved developed producing reserves”; 
 the
references to “Prime Offshore LLC” appearing in the first proviso in Section 6.1 of the Agreement are amended to read “Prime Offshore L.L.C.”; clause (vi) of the first proviso in Section 6.1 of the Agreement is
amended to add “, but expressly excluding Prime Offshore L.L.C.”, following “Subsidiary Guarantor at the end of such clause (vi); a new clause (vii) is added to the first proviso in Section 6.1 of the Agreement reading as
follows: 
 “, (vii) Indebtedness of Prime Offshore L.L.C. owed to the Borrower and the other Subsidiary Guarantors as
of         , 2012 and any incurred on or after         , 2012, so long as, at the time of incurrence of any such Indebtedness subsequent to
        , 2012, (A) no Default, Event of Default or Deficiency exists or would result therefrom and (B) after giving effect thereto the Available Commitment equals at least fifteen percent
(15%) of the then existing Commitment Amount”; and 
 clause (vii) of the first proviso in Section 6.1 of the Agreement is
re-numbered to be clause (viii) of such proviso. 
 2.7 Amendments to Section 6.7. Section 6.7 of the
Agreement is amended to read as follows in its entirety: 
 “6.7 Loans or Advances. Make or agree to make or allow
to remain outstanding any loans or advances to any Person; provided, 

  
 -6-

 
however, the foregoing restriction shall not apply to (a) advances or extensions of credit in the form of accounts receivable incurred in the ordinary course of business and upon
terms common in the industry for such accounts receivable, (b) advances to employees for the payment of expenses in the ordinary course of business not exceeding $100,000 in the aggregate for the Borrower on a consolidated basis with its
consolidated Subsidiaries, (c) loans or advances by the Borrower or any Domestic Subsidiary of the Borrower to a Subsidiary Guarantor other than Prime Offshore L.L.C., (d) loans or advances to limited partnerships in which the interest of
the Borrower therein is subject to a first priority Lien in favor of the Agent to secure the Obligations (other than Chase Energy, L.P., a Texas limited partnership) outstanding as of December 31, 2009 and additional loans and advances to such
limited partnerships made thereafter not exceeding $1,000,000 in the aggregate each calendar year when considered together with Investments in such limited partnerships which are the subject of clause (f) in the proviso appearing in
Section 6.8, (e) loans or advances to Chase Energy, L.P., a Texas limited partnership, outstanding at December 31, 2009 and additional loans and advances to Chase Energy, L.P., a Texas limited partnership, made thereafter not
exceeding $2,000,000 (net of amounts received from Chase Energy, L.P., a Texas limited partnership, during the relevant period of four consecutive calendar quarters as repayments of loans or advances or as dividends or distributions) in the
aggregate in any period of four consecutive calendar quarters when considered with Investments in Chase Energy, L.P., a Texas limited partnership, which are the subject of clause (g) in the proviso appearing in Section 6.8 or (f) so
long as (i) no Default, Event of Default or Deficiency exists or would result therefrom and (ii) after giving effect thereto the Available Commitment equals at least fifteen percent (15%) of the then existing Commitment Amount, loans
or advances to Prime Offshore L.L.C.” 
 2.8 Amendments to Section 6.8. Section 6.8 of the Agreement is
amended to read as follows in its entirety: 
 “6.8 Investments. Make or acquire Investments in, or purchase or
otherwise acquire all or substantially all of the assets of, any Person; provided, however, the foregoing restriction shall not apply to the purchase or acquisition of (a) Oil and Gas Properties, (b) Investments in the form
of (i) debt securities issued or directly and fully guaranteed or insured by the United States Government or any agency or instrumentality thereof, with maturities of no more than one year, (ii) cornmercial paper of a domestic issuer rated
at the date of acquisition at least P-2 by Moody’s Investor 

  
 -7-

 
Service, Inc. or A-2 by Standard & Poor’s Corporation and with maturities of no more than one year from the date of acquisition or (iii) repurchase agreements covering debt
securities or commercial paper of the type permitted in this Section, certificates of deposit, demand deposits, eurodollar time deposits, overnight bank deposits and bankers’ acceptances, with maturities of no more than one year from the date
of acquisition, issued by or acquired from or through any Lender or any bank or trust company organized under the laws of the United States of America or any state thereof and having capital surplus and undivided profits aggregating at least
$100,000,000, (c) other short-term Investments similar in nature and degree of risk to those described in clause (b) of this Section 8.6, (d) Investments in money-market funds sponsored or administered by Persons
acceptable to the Agent and which funds invest in short-term Investments similar in nature and degree of risk to those described in clause (b) of this Section 6.8, (e) evidences of loans or advances not prohibited by the
provisions of Section 6.7, (f) Investments in limited partnerships in which the interest of the Borrower therein is subject to a first priority Lien in favor of the Agent to secure the Obligations (other than Chase Energy, L.P., a
Texas limited partnership) existing as of December 31, 2009 and additional Investments in such limited partnerships made thereafter not exceeding $1,000,000 in the aggregate each calendar year when considered together with loans and advances to
such limited partnerships which are the subject of clause (d) in the proviso appearing in Section 6.7, (g) Investments in Chase Energy, L.P., a Texas limited partnership, existing as of December 31, 2009 and additional
Investments in Chase Energy, L.P., a Texas limited partnership, made thereafter not exceeding $2,000,000 (net of amounts received from Chase Energy, L.P., a Texas limited partnership, during the relevant period of four consecutive calendar quarters
as dividends or distributions or as repayments of loans or advances) in the aggregate in any period of four consecutive calendar quarters year when considered with loans or advances to Chase Energy, L.P., a Texas limited partnership, which are the
subject of clause (e) appearing in Section 6.7, (h) so long as (i) no Default, Event of Default or Deficiency exists or would result therefrom and (ii) after giving effect thereto the Available Commitment equals at
least fifteen percent (15%) of the then existing Commitment Amount, Investments in Prime Offshore L.L.C. or (i) Investments in Subsidiary Guarantors other than Prime Offshore L.L.C.” 

2.9 Amendment to Section 6.9. Clause (c) of the proviso to Section 6.9 of the Agreement is amended to read as
follows in its entirety: 

  
 -8-

 “(c) dividends, distributions and repurchases of its stock by the Borrower of up to
$5,000,000 in the aggregate in each calendar year, so long as (i) no Default, Event of Default or Deficiency exists or would result therefrom and (ii) the Available Commitment equals at least ten percent (10%) of the then existing
Commitment Amount.” 
 2.10 Amendments to Section 6.15. Section 6.1 5 of the Agreement is amended to
(a) delete “, but expressly excluding Prime Offshore LLC,” following “Subsidiaries” in clause (a) of such Section 6.15 and (b) delete “(but expressly excluding any contribution to EBITDAX as a result of
the activities of Prime Offshore LLC)” following “EBITDAX” at the start of clause (b) of such Section 6.15. 
 2.11 Amendments to Section 6.16. Section 6.16 of the Agreement is amended to (a) delete “(but expressly excluding any contribution to EBITDAX as a result of the activities of
Prime Offshore LLC)” appearing in clause (a) of such Section 6.16 and (b) delete “(but expressly excluding cash Interest Expense of Prime Offshore LLC)” appearing in clause (b) of such Section 6.16.

 2.12 Replacement of Exhibit IV. Exhibit IV to the Agreement is replaced with Exhibit IV attached to this Amendment.

 ARTICLE III 
 CONDITIONS TO EFFECTIVENESS 
 The effectiveness of this Amendment is
expressly subject to (a) receipt by the Agent from the Borrower of payment, in immediately available funds, of the fees provided for in the Fee Letter dated April 11, 2012 between Compass Bank and the Borrower and due and payable upon
execution of this Amendment and (b) receipt by the Agent of multiple counterparts of the following, as requested by the Agent: 
 (a) a Joinder Agreement by Prime Offshore L.L.C., duly executed by an authorized representative of Prime Offshore L.L.C.; 
 (b) a Guaranty, in form and substance satisfactory to the Agent, by Prime Offshore L.L.C., duly executed by an authorized representative of Prime Offshore L.L.C.; 

(c) a certificate issued by the secretary or an assistant secretary or another authorized representative of Prime Offshore L.L.C.
certifying copies of the organizational documents of Prime Offshore L.L.C. as being correct and complete; 
 (d) a certificate
of incumbency, including specimen signatures of all officers or other representatives of Prime Offshore L.L.C. who are authorized to execute Loan Documents on behalf of Prime Offshore L.L.C., each such certificate being executed by the secretary or
an assistant secretary or another authorized representative of Prime Offshore L.L.C.; 
 (e) copies of resolutions adopted by
the governing body of Prime Offshore L.L.C. approving the Loan Documents to which Prime Offshore L.L.C. is a party and authorizing the 

  
 -9-

 
transactions contemplated therein, accompanied by a certificate issued by the secretary or an assistant secretary or another authorized representative of Prime Offshore L.L.C. to the effect that
such copies are true and correct copies of resolutions duly adopted and that such resolutions constitute all the resolutions adopted with respect to such transactions, have not been amended, modified or rescinded in any respect and are in full force
and effect as of the date of such certificate; and 
 (f) certificates dated as of a recent date from the Secretary of State or
other appropriate Governmental Authority evidencing the existence or qualification and, if applicable, good standing of Prime Offshore L.L.C. in its jurisdiction of organization; 
 Upon receipt by the Agent of the payment of such fees and such additional required documentation, this Amendment shall be effective as of the Effective Date. 

ARTICLE IV 

RATIFICATION AND ACKNOWLEDGMENTS 
 Each of the Borrower, the Initial Guarantors, the Lenders and the Agent does hereby adopt, ratify and confirm the Agreement, as amended hereby, and acknowledges and agrees that the Agreement, as amended
hereby, and each of the other Loan Documents to which it is a party is and remains in full force and effect. Furthermore, each of the Borrower, the Agent and the Lenders hereby acknowledges and agrees that, pursuant to Section 2.10 of the
Agreement, as of the Effective Date, the Borrowing Base in effect under the Agreement is $125,000,000 and the Monthly Reduction Amount in effect under the Agreement is $0. 
 ARTICLE V 
 REPRESENTATIONS AND WARRANTIES 

The Borrower and each of the Initial Guarantors does hereby re-make in favor of the Lenders and the Agent each of the representations and
warranties made by it in the Loan Documents to which it is a party and further represents and warrants that each of such representations and warranties made by it remains true and correct as of the date of execution of this Amendment. Further to the
foregoing, the Borrower and each of the Initial Guarantors specifically represents and warrants to the Lenders and the Agent that no Default or Event of Default exists as of the date of execution of this Amendment and giving effect to this
Amendment. 
 ARTICLE VI 
 MISCELLANEOUS 
 6.1 Parties in Interest. 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 Agreement. 
 6.2 Rights of Third Parties. Except as provided in Section 6.1, all provisions herein are imposed solely and exclusively for the benefit of the parties hereto. 

  
 -10-

 6.3 Counterparts. This 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 and shall be enforceable upon the execution of one or more counterparts hereof by each of the parties
hereto. In this regard, each of the parties hereto acknowledges that a counterpart of this Amendment containing a set of counterpart execution pages reflecting the execution of each party hereto shall be sufficient to reflect the execution of this
Amendment by each necessary party hereto and shall constitute one instrument. 
 6.4 Integration. This Amendment
constitutes the entire agreement among the parties hereto with respect to the subject hereof. All prior understandings, statements and agreements, whether written or oral, relating to the subject hereof are superseded by this Amendment. 

6.5 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. 
 6.6 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, WITHOUT REGARD TO PRINCIPLES OF SUCH LAWS
RELATING TO CONFLICT OF LAWS. 

6.7 Scope of Amendment. This Amendment shall constitute a Loan Document. The execution, delivery and effectiveness of this
Amendment shall not, except as expressly provided herein, operate as a waiver of any right, power or remedy of any Lender or the Agent under any of the Loan Documents, nor, except as expressly provided herein, constitute a waiver or amendment of any
provision of any of the Loan Documents. 
 (Signatures appear on following pages) 

  
 -11-

 IN WITNESS WHEREOF, this Fourth Amendment to Second Amended and Restated Credit Agreement is
executed effective as of the Effective Date. 
  

			
	BORROWER:
	
	PRIMEENERGY CORPORATION
		
	By:	 	/s/ Beverly A. Cummings
		 	Beverly A. Cummings
		 	Executive Vice President, Treasurer
		 	and Chief Financial Officer

  

			
	GUARANTORS:
	
	PRIMEENERGY MANAGEMENT CORPORATION
		
	By:	 	/s/ Beverly A. Cummings
		 	Beverly A. Cummings
		 	Executive Vice President and Treasurer

  

			
	PRIME OPERATING COMPANY
		
	By:	 	/s/ Beverly A. Cummings
		 	Beverly A. Cummings
		 	Executive Vice President and Treasurer

  

			
	EASTERN OIL WELL SERVICE COMPANY
		
	By:	 	/s/ Beverly A. Cummings
		 	Beverly A. Cummings
		 	Executive Vice President and Treasurer

 (Signatures continue on following pages) 

  
 (Signature
page to Fourth Amendment to Second 
 Amended and Restated Credit Agreement) 

 
			
	 SOUTHWEST OILFIELD

CONSTRUCTION COMPANY

		
	By:	 	/s/ Beverly A. Cummings
		 	Beverly A. Cummings
		 	Executive Vice President and Treasurer

  

			
	E O W S MIDLAND COMPANY
		
	By:	 	/s/ Beverly A. Cummings
		 	Beverly A. Cummings
		 	Executive Vice President and Treasurer

 (Signatures continue on following pages) 

  
 (Signature
page to Fourth Amendment to Second 
 Amended and Restated Credit Agreement) 

 
			
	AGENT:
	
	 COMPASS BANK,
 as
Agent

		
	By:	 	/s/ Ann Van Wagener
		 	Ann Van Wagener
		 	Vice President

  

			
	LENDER:
	
	COMPASS BANK,
		
	By:	 	/s/ Ann Van Wagener
		 	Ann Van Wagener
		 	Vice President

 (Signatures continue on following pages) 

  
 (Signature
page to Fourth Amendment to Second 
 Amended and Restated Credit Agreement) 

 
			
	LENDER:
	
	WELLS FARGO BANK, NATIONAL ASSOCIATION
		
	By:	 	/s/ Richard Hawthorne
	Name:	 	Richard Hawthorne
	Title:	 	Director

 (Signatures continue on following pages) 

  
 (Signature
page to Fourth Amendment to Second 
 Amended and Restated Credit Agreement) 

 
			
	LENDER:
	
	JPMORGAN CHASE BANK, N.A.
		
	By:	 	/s/ Jo Linda Papadakis
		 	Jo Linda Papadakis
		 	Authorized Officer

 (Signatures continue on following page) 

  
 (Signature
page to Fourth Amendment to Second 
 Amended and Restated Credit Agreement) 

 
			
	 LENDER:
  

AMEGY BANK NATIONL, ASSOCIATION

		
	By:	 	/s/ Mark A. Serice
		 	Mark A. Serice
		 	Senior Vice President

  
 (Signature
page to Fourth Amendment to Second 
 Amended and Restated Credit Agreement) 

 EXHIBIT IV 

FACILITY AMOUNTS 
  

					
	 Name/Address of Lender
	  	Percentage Share	 	Facility Amount
	 Compass Bank
	  	30.0%	 	$75,000,000
	 24 Greenway Plaza, Suite 1400A
	  		 	
	 Houston, Texas 77046
	  		 	
	 Attn: Kathleen J. Bowen
	  		 	
	 Facsimile: (713) 499-8722
	  		 	
			
	 Wells Fargo Bank
	  	30.0%	 	$75,000,000
	 National Association
	  		 	
	 1700 Lincoln Street
	  		 	
	
3rd Floor, MAC C7300-034
	  		 	
	 Denver, Colorado 80274
	  		 	
	 Attn: Elaine Cunningham
	  		 	
	 Facsimile: (303) 863-5998
	  		 	
			
	 JPMorgan Chase Bank, N.A.
	  	25.0%	 	$62,500,000
	 712 Main Street
	  		 	
	 8th Floor South
	  		 	
	 Houston, Texas 77002
	  		 	
	 Attn: Jo Linda Papadakis
	  		 	
	 Facsimile: (713) 216-7770
	  		 	
			
	 Amegy Bank National
	  	15.0%	 	$37,500,000
	 Association
	  		 	
	 4400 Post Oak Parkway
	  		 	
	 4th Floor
	  		 	
	 Houston, Texas 77027
	  		 	
	 Attn: Energy Lending Dept.
	  		 	
	 Facsimile: (713) 561 -0345
	  		 	
		  	  
	 	  

		  	100%	 	$250,000,000

 Exhibit IVGuarantee Agreement for 2.850% Notes due 2022

 Exhibit 4.1 
 GUARANTEE, dated as of August 9, 2012 (as amended from time to time, this “Guarantee”), made by Philip Morris USA Inc., a Virginia corporation (the “Guarantor”), in
favor of Deutsche Bank Trust Company Americas, as trustee (“Trustee”) for the registered holders (the “Holders”) of the 2.850% Notes due 2022 (collectively, the “Debt Securities”) of Altria Group,
Inc., a Virginia corporation (the “Issuer”). 
 WITNESSETH: 

SECTION 1. Guarantee. (a) The Guarantor hereby unconditionally guarantees the punctual payment when due, whether at stated
maturity, by acceleration or otherwise, of the principal of, premium, if any, and interest on the Debt Securities (the “Obligations”), according to the terms of the Debt Securities and as more fully described in the Indenture (as
amended, modified or otherwise supplemented from time to time, the “Indenture”), dated as of November 4, 2008, among the Issuer, the Guarantor and the Trustee, and any other amounts payable by the Guarantor under the Indenture.

 (b) It is the intention of the Guarantor that this Guarantee not constitute a fraudulent transfer or conveyance for purposes
of Bankruptcy Law, the Uniform Fraudulent Conveyance Act, the Uniform Fraudulent Transfer Act or any similar federal or state law to the extent applicable to this Guarantee. To effectuate the foregoing intention, the amount guaranteed by the
Guarantor under this Guarantee shall be limited to the maximum amount as will, after giving effect to such maximum amount and all other contingent and fixed liabilities of the Guarantor that are relevant under such laws, result in the Obligations of
the Guarantor under this Guarantee not constituting a fraudulent transfer or conveyance. For purposes hereof, “Bankruptcy Law” means Title 11, U.S. Code, or any similar federal or state law for the relief of debtors. 

SECTION 2. Guarantee Absolute. The Guarantor guarantees that the Obligations will be paid strictly in accordance with the terms of
the Indenture, regardless of any law, regulation or order now or hereafter in effect in any jurisdiction affecting any of such terms or the rights of Holders of the Debt Securities with respect thereto. The liability of the Guarantor under this
Guarantee shall be absolute and unconditional irrespective of: 
 (i) any lack of validity, enforceability or
genuineness of any provision of the Indenture, the Debt Securities or any other agreement or instrument relating thereto; 
 (ii) any change in the time, manner or place of payment of, or in any other term of, all or any of the Obligations, or any other amendment or waiver of or any consent to departure from the Indenture;

 (iii) any exchange, release or non-perfection of any collateral, or any release or amendment or waiver of or
consent to departure from any other guarantee, for all or any of the Obligations; or 
 (iv) any other
circumstance that might otherwise constitute a defense available to, or a discharge of, the Issuer or a guarantor. 

 SECTION 3. Subordination. The Guarantor covenants and agrees that its obligation to
make payments of the Obligations hereunder constitutes an unsecured obligation of the Guarantor ranking (a) pari passu with all existing and future senior indebtedness of the Guarantor and (b) senior in right of payment to all
existing and future subordinated indebtedness of the Guarantor. 
 SECTION 4. Waiver; Subrogation. (a) The Guarantor
hereby waives promptness, diligence, notice of acceptance and any other notice with respect to this Guarantee and any requirement that the Trustee, or the Holders of any Debt Securities protect, secure, perfect or insure any security interest or
lien or any property subject thereto or exhaust any right or take any action against the Issuer or any other Person or any collateral. 
 (b) The Guarantor hereby irrevocably waives any claims or other rights that it may now or hereafter acquire against the Issuer that arise from the existence, payment, performance or enforcement of the
Guarantor’s obligations under this Guarantee or the Indenture, including, without limitation, any right of subrogation, reimbursement, exoneration, contribution or indemnification and any right to participate in any claim or remedy of the
Trustee, or the Holders of any Debt Securities against the Issuer or any collateral, whether or not such claim, remedy or right arises in equity or under contract, statute or common law, including, without limitation, the right to take or receive
from the Issuer, directly or indirectly, in cash or other property or by set-off or in any other manner, payment or security on account of such claim, remedy or right. If any amount shall be paid to the Guarantor in violation of the preceding
sentence at any time prior to the cash payment in full of the Obligations and all other amounts payable under this Guarantee, such amount shall be held in trust for the benefit of the Trustee and the Holders of any Debt Securities and shall
forthwith be paid to the Trustee, to be credited and applied to the Obligations and all other amounts payable under this Guarantee, whether matured or unmatured, in accordance with the terms of the Indenture and this Guarantee, or be held as
collateral for any Obligations or other amounts payable under this Guarantee thereafter arising. The Guarantor acknowledges that it will receive direct and indirect benefits from the financing arrangements contemplated by the Indenture and this
Guarantee and that the waiver set forth in this Section 4 is knowingly made in contemplation of such benefits. 
 SECTION
5. No Waiver; Remedies. No failure on the part of the Trustee or any Holder of the Debt Securities to exercise, and no delay in exercising, any right hereunder shall operate as a waiver thereof; nor shall any single or partial exercise of any
right hereunder preclude any other or further exercise thereof or the exercise of any other right. The remedies herein provided are cumulative and not exclusive of any remedies provided by law. 

SECTION 6. Continuing Guarantee; Transfer of Interest. This Guarantee is a continuing guarantee and shall (a) remain in full
force and effect until the earliest to occur of (i) the date, if any, on which the Guarantor shall consolidate with or merge into the Issuer or any successor thereto, (ii) the date, if any, on which the Issuer or any successor thereto
shall consolidate with or merge into the Guarantor, (iii) payment in full of the Obligations, and (iv) the rating of the Issuer’s long term senior unsecured debt by Standard & Poor’s of A or higher, (b) be binding
upon the Guarantor, its successors and assigns, and (c) inure to the benefit of and be 

  
 2 

 
enforceable by any Holder of Debt Securities, the Trustee, and by their respective successors, transferees, and assigns. 
 SECTION 7. Reinstatement. This Guarantee shall continue to be effective or be reinstated, as the case may be, if at any time any payment of any of the Obligations is rescinded or must otherwise be
returned by any Holder of the Debt Securities or the Trustee upon the insolvency, bankruptcy or reorganization of the Issuer or otherwise, all as though such payment had not been made. 

SECTION 8. Amendment. The Guarantor may amend this Guarantee at any time for any purpose without the consent of the Trustee or any
Holder of the Debt Securities; provided, however, that if such amendment adversely affects (a) the rights of the Trustee or (b) any Holder of the Debt Securities, the prior written consent of the Trustee (in the case of (b), acting
at the written direction of the Holders of more than 50% in aggregate principal amount of Debt Securities) shall be required. 

SECTION 9. Governing Law. This Guarantee shall be governed by, and construed in accordance with the laws of the State of New York.

 [Signature Page Follows] 

  
 3 

 IN WITNESS WHEREOF, the Guarantor has caused this Guarantee to be duly executed and
delivered by its officer thereunto duly authorized as of the date first written above. 
  

			
	PHILIP MORRIS USA INC.
		
	By:	 	/s/ WILLIAM F. GIFFORD, JR.
		 	Name:  William F. Gifford, Jr.
		 	Title:    President and Chief Executive Officer

  

			
	By:	 	/s/ DANIEL J. BRYANT
		 	Name:  Daniel J. Bryant
		 	Title:    Treasurer

 Signature Page to Guarantee Agreement

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