as Parent Guarantor,
as Borrower,
as Administrative Agent,
WELLS FARGO BANK, N.A.,
as Syndication Agents,
COMPASS BANK,
as Documentation Agents,
Sole Lead Arranger and Sole Bookrunner
Page | ||||
ARTICLE I | ||||
DEFINITIONS AND ACCOUNTING MATTERS | ||||
Section 1.01 Terms Defined Above | 1 | |||
Section 1.02 Certain Defined Terms | 1 | |||
Section 1.03 Types of Loans and Borrowings | 23 | |||
Section 1.04 Terms Generally; Rules of Construction | 23 | |||
Section 1.05 Accounting Terms and Determinations; GAAP | 23 | |||
ARTICLE II | ||||
THE CREDITS | ||||
Section 2.01 Commitments | 23 | |||
Section 2.02 Loans and Borrowings | 24 | |||
Section 2.03 Requests for Borrowings | 25 | |||
Section 2.04 Interest Elections | 26 | |||
Section 2.05 Funding of Borrowings | 28 | |||
Section 2.06 Termination, Reduction and Increase of Aggregate Maximum Credit Amounts | 28 | |||
Section 2.07 Borrowing Base | 31 | |||
Section 2.08 Letters of Credit | 33 | |||
ARTICLE III | ||||
PAYMENTS OF PRINCIPAL AND INTEREST; PREPAYMENTS; FEES | ||||
Section 3.01 Repayment of Loans | 38 | |||
Section 3.02 Interest | 38 | |||
Section 3.03 Alternate Rate of Interest | 39 | |||
Section 3.04 Prepayments | 39 | |||
Section 3.05 Fees | 41 | |||
ARTICLE IV | ||||
PAYMENTS; PRO RATA TREATMENT; SHARING OF SET-OFFS | ||||
Section 4.01 Payments Generally; Pro Rata Treatment; Sharing of Set-offs | 42 | |||
Section 4.02 Presumption of Payment by the Borrower | 43 | |||
Section 4.03 Payments and Deductions to a Defaulting Lender | 43 | |||
Section 4.04 Disposition of Proceeds | 46 | |||
ARTICLE V | ||||
INCREASED COSTS; BREAK FUNDING PAYMENTS; TAXES; ILLEGALITY | ||||
Section 5.01 Increased Costs | 46 | |||
Section 5.02 Break Funding Payments | 47 | |||
Section 5.03 Taxes | 48 | |||
Section 5.04 Mitigation Obligations; Replacement of Lenders | 49 | |||
Section 5.05 Illegality | 50 |
i
Page | ||||
ARTICLE VI | ||||
CONDITIONS PRECEDENT | ||||
Section 6.01 Effective Date | 50 | |||
Section 6.02 Each Credit Event | 52 | |||
ARTICLE VII | ||||
REPRESENTATIONS AND WARRANTIES | ||||
Section 7.01 Organization; Powers | 53 | |||
Section 7.02 Authority; Enforceability | 54 | |||
Section 7.03 Approvals; No Conflicts | 54 | |||
Section 7.04 Financial Condition; No Material Adverse Change | 54 | |||
Section 7.05 Litigation | 55 | |||
Section 7.06 Environmental Matters | 55 | |||
Section 7.07 Compliance with the Laws and Agreements; No Defaults | 56 | |||
Section 7.08 Investment Company Act | 57 | |||
Section 7.09 Taxes | 57 | |||
Section 7.10 ERISA | 57 | |||
Section 7.11 Disclosure; No Material Misstatements | 58 | |||
Section 7.12 Insurance | 58 | |||
Section 7.13 Restriction on Liens | 58 | |||
Section 7.14 Subsidiaries; Foreign Operations | 58 | |||
Section 7.15 Location of Business and Offices | 59 | |||
Section 7.16 Properties; Titles, Etc. | 59 | |||
Section 7.17 Maintenance of Properties | 60 | |||
Section 7.18 Gas Imbalances, Prepayments | 61 | |||
Section 7.19 Marketing of Production | 61 | |||
Section 7.20 Swap Agreements | 61 | |||
Section 7.21 Use of Loans and Letters of Credit | 61 | |||
Section 7.22 Solvency | 61 | |||
Section 7.23 Designated Senior Indebtedness | 62 | |||
ARTICLE VIII | ||||
AFFIRMATIVE COVENANTS | ||||
Section 8.01 Financial Statements; Other Information | 62 | |||
Section 8.02 Notices of Material Events | 65 | |||
Section 8.03 Existence; Conduct of Business | 65 | |||
Section 8.04 Payment of Obligations | 66 | |||
Section 8.05 Operation and Maintenance of Properties | 66 | |||
Section 8.06 Insurance | 67 | |||
Section 8.07 Books and Records; Inspection Rights | 67 | |||
Section 8.08 Compliance with Laws | 67 | |||
Section 8.09 Environmental Matters | 67 | |||
Section 8.10 Further Assurances | 68 | |||
Section 8.11 Reserve Reports | 69 | |||
Section 8.12 Title Information | 70 | |||
Section 8.13 Additional Collateral; Additional Guarantors | 71 |
ii
Page | ||||
Section 8.14 ERISA Compliance | 72 | |||
Section 8.15 Swap Agreements | 72 | |||
Section 8.16 Marketing Activities | 72 | |||
Section 8.17 Unrestricted Subsidiaries | 73 | |||
ARTICLE IX | ||||
NEGATIVE COVENANTS | ||||
Section 9.01 Financial Covenants | 73 | |||
Section 9.02 Debt | 74 | |||
Section 9.03 Liens | 75 | |||
Section 9.04 Dividends, Distributions and Redemptions; Repayment of Senior Notes | 76 | |||
Section 9.05 Investments, Loans and Advances | 77 | |||
Section 9.06 Nature of Business; International Operations | 78 | |||
Section 9.07 Proceeds of Notes | 78 | |||
Section 9.08 ERISA Compliance | 79 | |||
Section 9.09 Sale or Discount of Receivables | 79 | |||
Section 9.10 Mergers, Etc. | 79 | |||
Section 9.11 Sale of Oil and Gas Properties | 79 | |||
Section 9.12 Environmental Matters | 81 | |||
Section 9.13 Transactions with Affiliates | 81 | |||
Section 9.14 Subsidiaries | 81 | |||
Section 9.15 Negative Pledge Agreements; Dividend Restrictions | 81 | |||
Section 9.16 Swap Agreements | 82 | |||
Section 9.17 Designation and Conversion of Restricted and Unrestricted Subsidiaries; Debt of Unrestricted Subsidiaries | 83 | |||
ARTICLE X | ||||
EVENTS OF DEFAULT; REMEDIES | ||||
Section 10.01 Events of Default | 84 | |||
Section 10.02 Remedies | 86 | |||
ARTICLE XI | ||||
THE AGENTS | ||||
Section 11.01 Appointment; Powers | 87 | |||
Section 11.02 Duties and Obligations of Administrative Agent | 87 | |||
Section 11.03 Action by Administrative Agent | 88 | |||
Section 11.04 Reliance by Administrative Agent | 89 | |||
Section 11.05 Subagents | 89 | |||
Section 11.06 Resignation or Removal of Administrative Agent | 89 | |||
Section 11.07 Agents as Lenders | 90 | |||
Section 11.08 No Reliance | 90 | |||
Section 11.09 Administrative Agent May File Proofs of Claim | 90 | |||
Section 11.10 Authority of Administrative Agent to Release Collateral and Liens | 91 | |||
Section 11.11 The Arranger, the Syndication Agents and the Documentation Agents | 91 |
iii
Page | ||||
ARTICLE XII | ||||
MISCELLANEOUS | ||||
Section 12.01 Notices | 91 | |||
Section 12.02 Waivers; Amendments | 92 | |||
Section 12.03 Expenses, Indemnity; Damage Waiver | 93 | |||
Section 12.04 Successors and Assigns | 96 | |||
Section 12.05 Survival; Revival; Reinstatement | 99 | |||
Section 12.06 Counterparts; Integration; Effectiveness | 100 | |||
Section 12.07 Severability | 100 | |||
Section 12.08 Right of Setoff | 100 | |||
Section 12.09 GOVERNING LAW; JURISDICTION; CONSENT TO SERVICE OF PROCESS | 101 | |||
Section 12.10 Headings | 102 | |||
Section 12.11 Confidentiality | 102 | |||
Section 12.12 Interest Rate Limitation | 103 | |||
Section 12.13 Collateral Matters; Swap Agreements | 103 | |||
Section 12.14 No Third Party Beneficiaries | 104 | |||
Section 12.15 USA Patriot Act Notice | 104 |
iv
Annex I | List of Maximum Credit Amounts | |
Exhibit A | Form of Note | |
Exhibit B | Form of Borrowing Request | |
Exhibit C | Form of Interest Election Request | |
Exhibit D | Form of Compliance Certificate | |
Exhibit E-1 | Form of Legal Opinion of Bruce R. DeBoer, General Counsel to the Parent Guarantor and the Borrower | |
Exhibit E-2 | Form of Legal Opinion Issues of Foley & Lardner LLP, special counsel to Parent Guarantor and the Borrower | |
Exhibit E-3 | Form of Legal Opinion of Local Counsel | |
Exhibit F-1 | Security Instruments | |
Annex F-1—List of Existing Mortgages, Deeds of Trust and Financing Statements | ||
Exhibit F-2 | Form of Guaranty and Pledge Agreement | |
Exhibit G | Form of Assignment and Assumption | |
Exhibit H-1 | Form of Maximum Credit Amount Increase Agreement | |
Exhibit H-2 | Form of Additional Lender Agreement | |
Exhibit I | Form of Reserve Report Certificate | |
Schedule 2.01 | Existing Letters of Credit | |
Schedule 7.05 | Litigation | |
Schedule 7.06 | Environmental Matters | |
Schedule 7.14 | Subsidiaries and Partnerships | |
Schedule 7.15 | Location of Subsidiaries | |
Schedule 7.18 | Gas Imbalances | |
Schedule 7.19 | Marketing Contracts | |
Schedule 7.20 | Swap Agreements | |
Schedule 9.02 | Existing Debt | |
Schedule 9.03 | Existing Liens | |
Schedule 9.05 | Existing Investments |
v
Definitions and Accounting Matters
Borrowing Base Utilization Percentage | <25 | % | ³ 25% but <50% | ³ 50% but <75% | ³ 75% but <90% | ³ 90 | % | ||||||||||||||||||||
Eurodollar Loans | 2.000 | % | 2.250 | % | 2.500 | % | 2.750 | % | 3.000 | % | |||||||||||||||||
ABR Loans | 1.125 | % | 1.375 | % | 1.625 | % | 1.875 | % | 2.125 | % | |||||||||||||||||
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
The Credits
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
Payments of Principal and Interest; Prepayments; Fees
38
39
40
41
Payments; Pro Rata Treatment; Sharing of Set-offs
42
43
44
45
Increased Costs; Break Funding Payments; Taxes; Illegality
46
47
48
49
Conditions Precedent
50
51
52
Representations and Warranties
53
54
55
56
57
58
59
60
61
Affirmative Covenants
62
63
64
65
66
67
68
69
70
71
72
Negative Covenants
Fiscal Quarter Ending | Ratio | |
September 30, 2010 and prior | 4.5 to 1.0 | |
December 31, 2010 to June 30, 2011 | 4.25 to 1.0 | |
September 30, 2011 and thereafter | 4.0 to 1.0 |
73
Fiscal Quarter Ending | Ratio | |
December 31, 2009 and prior | 2.75 to 1.0 | |
March 31, 2010 and thereafter | 2.5 to 1.0 |
74
75
76
77
78
79
80
81
Period following | ||||
Execution of Swap | Percentage Limitation | |||
First 12 months thereafter | 90 | % | ||
13th to 36th months | 85 | % | ||
37th to 48th months | 80 | % | ||
49th to 60th months | 75 | % |
82
Section 9.16(a).
83
Events of Default; Remedies
84
85
86
The Agents
87
88
89
90
Miscellaneous
91
92
93
94
95
96
97
98
99
100
101
102
103
104
PARENT GUARANTOR: | WHITING PETROLEUM CORPORATION | |||||
By: Name: | /s/ James J. Volker | |||||
Title: | Chairman, President and Chief Executive Officer | |||||
BORROWER: | WHITING OIL AND GAS CORPORATION | |||||
By: Name: | /s/ James J. Volker | |||||
Title: | Chairman, President and Chief Executive Officer |
[Signature Page — Credit Agreement]
1
ADMINISTRATIVE AGENT: | JPMORGAN CHASE BANK, N.A. | |||||
By: Name: | /s/ Brian P. Orlando | |||||
Title: | Vice President |
[Signature Page — Credit Agreement]
2
SYNDICATION AGENTS: | BANC OF AMERICA SECURITIES, LLC | |||||
By: | /s/ Christen A. Lacey | |||||
Name: | Christen A. Lacey | |||||
Title: | Principal | |||||
WELLS FARGO BANK, N.A. | ||||||
By: | /s/ William Champion | |||||
Name: | William Champion | |||||
Title: | Assistant Vice President |
[Signature Page — Credit Agreement]
3
DOCUMENTATION AGENTS: | CALYON NEW YORK BRANCH | |||||
By: | /s/ Tom Byargeon | |||||
Name: | Tom Byargeon | |||||
Title: | Managing Director | |||||
By: Name: | /s/ Michael D. Willis | |||||
Title: | Managing Director | |||||
COMPASS BANK | ||||||
By: | /s/ Greg Determann | |||||
Name: | Greg Determann | |||||
Title: | Vice President |
[Signature Page — Credit Agreement]
4
LENDERS: | JPMORGAN CHASE BANK, N.A. | |||||
By: | /s/ Brian P. Orlando | |||||
Name: | Brian P. Orlando | |||||
Title: | Vice President |
[Signature Page — Credit Agreement]
5
BANK OF AMERICA, N.A. | ||||||
By: | /s/ Stephen J. Hoffman | |||||
Name: | ||||||
Title: | Managing Director |
[Signature Page — Credit Agreement]
6
WELL FARGO BANK, N.A. | ||||
By: Name: | /s/ William Champion | |||
Title: | Assistant Vice President |
[Signature Page — Credit Agreement]
7
CALYON NEW YORK BRANCH | ||||||
By: | /s/ Tom Byargeon | |||||
Name: Tom Byargeon | ||||||
Title: Managing Director | ||||||
By: | /s/ Michael D. Willis | |||||
Name: Michael D. Willis | ||||||
Title: Managing Director |
[Signature Page — Credit Agreement]
8
COMPASS BANK | ||||||
By: | /s/ Greg Determann | |||||
Name: Greg Determann | ||||||
Title: Vice President |
[Signature Page — Credit Agreement]
9
U.S. BANK NATIONAL ASSOCIATION | ||||||
By: | /s/ Bruce E. Hernandez | |||||
Name: Bruce E. Hernandez | ||||||
Title: Vice President |
[Signature Page — Credit Agreement]
10
UNION BANK, N.A. | ||||||
(formerly known as Union Bank of California, N.A.) | ||||||
By: | /s/ Jarrod Bourgeois | |||||
Name: Jarrod Bourgeois | ||||||
Title: Vice President |
[Signature Page — Credit Agreement]
11
[Signature Page — Credit Agreement]
12
SUNTRUST BANK | ||||||
By: Name: Title: | /s/ Yann Pirlo Director |
[Signature Page — Credit Agreement]
13
THE BANK OF NOVA SCOTIA | ||||||
By: Name: Title: | /s/ David G. Mills Managing Director |
[Signature Page — Credit Agreement]
14
KEYBANK NATIONAL ASSOCIATION | ||||||
By: Name: Title: | /s/ Todd Coker AVP |
[Signature Page — Credit Agreement]
15
COMERICA BANK | ||||||
By: Name: Title: | /s/ Matt Turner Corporate Bank Officer |
[Signature Page — Credit Agreement]
16
FORTIS CAPITAL CORPORATION | ||||||
By: Name: Title: | /s/ David Montgomery Director | |||||
By: Name: Title: | /s/ Darrell Holley Managing Director |
[Signature Page — Credit Agreement]
17
BARCLAYS BANK PLC | ||||
By: | /s/ Maria Lund | |||
Name: | Maria Lund | |||
Title: | Vice President |
[Signature Page — Credit Agreement]
18
MORGAN STANLEY BANK, N.A. | ||||
By: | /s/ Melissa James | |||
Name: | Melissa James | |||
Title: | Authorized Signatory |
[Signature Page — Credit Agreement]
19
RAYMOND JAMES BANK | ||||
By: | /s/ Garrett McKinnon | |||
Name: | Garrett McKinnon | |||
Title: | Senior Vice President |
[Signature Page — Credit Agreement]
20
ROYAL BANK OF CANADA | ||||
By: | /s/ Don J. McKinnerney | |||
Name: | Don J. McKinnerney | |||
Title: | Authorized Signatory |
[Signature Page — Credit Agreement]
21
BANK OF OKLAHOMA, N.A. | ||||
By: | /s/ Michael M. Logan | |||
Name: | Michael M. Logan | |||
Title: | Senior Vice President |
[Signature Page — Credit Agreement]
22
RZB FINANCE LLC | ||||
By: | /s/ Shirley Ritch | |||
Name: | Shirley Ritch | |||
Title: | Vice President | |||
By: | /s/ John A. Valiska | |||
Name: | John A. Valiska | |||
Title: | First Vice President |
[Signature Page — Credit Agreement]
23