AMENDMENT NO. 6, WAIVER AND
AGREEMENT
This
Amendment No. 6, Waiver and Agreement
(“Agreement”) dated as of January 20, 2006
(“Effective Date”) is among Mariner Energy, Inc., a
Delaware corporation (the “Borrower”), Mariner LP LLC,
a Delaware limited liability company (“Mariner LLC”),
Mariner Energy Texas LP, a Delaware limited partnership
(“Mariner LP,” and together with Mariner LLC,
collectively referred to herein as the “Guarantors”),
the Lenders (as defined below), and Union Bank of California, N.A.,
as administrative agent for such Lenders (in such capacity, the
“Administrative Agent”) and as issuing lender for such
Lenders (in such capacity, the “Issuing
Lender”).
A. The Borrower, the Lenders, Issuing
Lender and the Administrative Agent are parties to the Credit
Agreement dated as of March 2, 2004, as amended by that
certain Amendment No. 1 and Assignment Agreement dated as of
July 14, 2004, that certain Amendment No. 2 and Consent
dated as of February 7, 2005, that certain Amendment
No. 3 and Consent dated as of March 3, 2005, that certain
Amendment No. 4 dated as of July 14, 2005, and that
certain Amendment No. 5 dated as of August 5, 2005 (as so
amended, the “Credit Agreement”).
B. At the request of the Borrower, the
Administrative Agent and the Lenders wish to, subject to the terms
and conditions of this Agreement, (1) increase the Borrowing
Base (as defined in the Credit Agreement), (2) acknowledge the
existence of certain Defaults and Events of Default (each as
defined in the Credit Agreement), (3) provide for a waiver of
such existing Defaults and Events of Default as set forth below,
and (4) amend certain provisions of the Credit Agreements as
set forth herein.
THEREFORE, the Borrower, the Guarantors, the Lenders, the Issuing
Lender and the Administrative Agent hereby agree as
follows:
DEFINITIONS
Section 1.01 Terms Defined
Above. As used in this Agreement, each of the terms defined
in the opening paragraph and the Recitals above shall have the
meanings assigned to such terms therein.
Section 1.02 Terms Defined
in the Credit Agreement. Each 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.
Section 1.03 Other
Definitional Provisions. The words “hereby”,
“herein”, “hereinafter”,
“hereof”, “hereto” and
“hereunder” when used in this Agreement shall refer to
this Agreement as a whole and not to any particular Article,
Section, subsection or provision of this Agreement. Article,
Section, subsection and Exhibit references herein are to such
Articles, Sections, subsections and Exhibits of this Agreement
unless otherwise specified. All titles or headings to Articles,
Sections, subsections or other divisions of this Agreement or the
exhibits
hereto, if any, are only for the
convenience of the parties and shall not be construed to have any
effect or meaning with respect to the other content of such
Articles, Sections, subsections, other divisions or exhibits, such
other content being controlling as the agreement among the parties
hereto. 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.
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. 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.
WAIVER; AMENDMENT; BORROWING BASE
INCREASE
Section 2.01 Borrowing Base
Increase . Subject to the terms of this Agreement, the
Lenders and the Borrower hereby agree that, as of the Effective
Date, the Borrowing Base shall be $185,000,000. Such Borrowing Base
shall remain in effect until the next redetermination made pursuant
to Section 2.02 of the Credit Agreement, as amended
hereby.
(a) The Borrower hereby acknowledges the existence of Defaults
and Events of Default (collectively, the “Waiver
Defaults”) arising directly as a result of the
Borrower’s failure to comply with the requirements of
Section 6.06 and Section 6.15 of the Credit Agreement in
respect of its formation of, and investments in, MEI Sub, Inc., a
Delaware corporation as a wholly owned Subsidiary of the Borrower
(the “MEI Sub”).
(b) The Lenders hereby agree, subject to the terms of this
Agreement, to waive the Waiver Defaults. The waiver by the Lenders
described in the preceding sentence is contingent upon the
satisfaction of the conditions precedent set forth below in this
Agreement. The waiver is limited to the Waiver Defaults and to the
extent described herein and shall not be construed to be a consent
to, or a permanent waiver of, the Sections covered by the Waiver
Defaults or any other terms, provisions, covenants, warranties or
agreements contained in the Credit Agreement or in any of the other
Loan Documents. The Lenders and the Administrative Agent reserve
the right to exercise any rights and remedies available to them in
connection with any other present or future defaults with respect
to the Credit Agreement or any other provision of any Loan
Document.
Section 2.03 Amendments to
Credit Agreement .
(a) Section 1.01 of the Credit Agreement is amended by
adding the following new terms in alphabetical order:
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“ Amendment No. 6
” shall mean that certain Amendment No. 6, Waiver and
Agreement dated as of January 20, 2006 among the Borrower, the
Lenders and the Administrative Agent.
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“ MEI Sub ” shall
mean MEI Sub, Inc., a Delaware corporation and a wholly owned
Subsidiary of the Borrower.
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(b) Section 2.02(b) of the Credit Agreement is amended by
adding to the end thereof a new clause (v) as
follows:
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(v) On April 1, 2006 the
Administrative Agent and the Lenders may, at their sole option and
discretion but subject to Section 2.02(f) and Section 2.02(d),
redetermine the Borrowing Base. In connection with such
redetermination, the Borrower shall provide the Administrative
Agent and the Lenders with such information regarding the Borrower
and its Subsidiaries’ business (including, without
limitation, its Oil and Gas Properties, the Proven Reserves, and
production relating thereto) as the Administrative Agent or any
Lender may reasonably request. The Administrative Agent shall
promptly, and in any event within 45 days after the
Administrative Agent and the Lender’s receipt of such
information, notify the Borrower in writing of a redetermination of
the Borrowing Base pursuant to this clause (v) and the amount
of the Borrowing Base as so redetermined.
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(c) Section 6.15 of the Credit Agreement is amended and
restated to read in its entirety as follows:
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Section 6.15 Additional
Subsidiaries . The Borrower shall not, nor shall it permit any
of its Subsidiaries to, create or acquire any additional
Subsidiaries without (a) such new Subsidiary executing and
delivering to the Administrative Agent, at its request, a Guaranty,
a Pledge Agreement, a Security Agreement and a Mortgage, and such
other Security Instruments as the Administrative Agent or the
Required Lenders may reasonably request, and (b) the delivery
by the Borrower of any certificates, opinions of counsel, title
opinions or other documents as the Administrative Agency may
reasonably request.
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(d) Article VI of the Credit Agreement is hereby further
amended by adding a new Section 6.23 to the end thereof as
follows:
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Section 6.23. Non-Guarantor
Subsidiaries . Notwithstanding anything to the contrary
cont
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