FIRST AMENDMENT TO
FIRST AMENDED AND RESTATED NOTE PURCHASE AGREEMENT
This FIRST
AMENDMENT TO FIRST AMENDED AND RESTATED NOTE PURCHASE
AGREEMENT, dated as of January 31, 2006 (this "Amendment"), is made
by and among
by and among Aurora Antrim North, LLC, a Michigan limited liability
company (the
"Issuer"); Aurora Energy, Ltd., a Nevada corporation ("Aurora");
TCW Energy Fund
X - NL, L.P., a California limited partnership ("Fund X - NL"); TCW
Energy Fund
XB - NL, L.P., a California limited partnership ("Fund XB - NL");
TCW Energy
Fund XC - NL, L.P., a California limited partnership ("Fund XC -
NL"); TCW
Energy Fund XD - NL, L.P., a California limited partnership ("Fund
XD - NL");
TCW Asset Management Company ("Tamco"), a California corporation,
as Investment
Manager under the Amended and Restated Investment Management and
Custody
Agreement dated as of December 3, 2003 among Ensign Peak Advisors,
Inc. and
others; Tamco as Investment Manager under the Amended and Restated
Investment
Management and Custody Agreement dated as of March 18, 2004 among
ING Life
Insurance and Annuity Company and others; Tamco as Investment
Manager under the
Amended and Restated Investment Management and Custody Agreement
dated as of
December 11, 2003, among Harry L. Bradley, Jr. Partition Trust and
others;
Tamco, as Investment Manager under the Investment Management
Agreement dated
June 13, 2005 among The Ford Foundation and others (Tamco in the
capacities
designated above, Fund X - NL, Fund XB - NL, Fund XC - NL and Fund
XD - NL are
hereinafter collectively referred to as the "Purchasers," each a
"Purchaser");
Tamco as Administrative Agent (together with its successors in such
capacity,
the "Administrative Agent"); and Tamco as Collateral Agent
(together with its
successors in such capacity, the "Collateral Agent").
RECITALS
WHEREAS,
the Issuer and Aurora have entered into that certain First
Amended and Restated Note Purchase Agreement (as amended, modified
or
supplemented from time to time, the "First Amended and Restated
Note Purchase
Agreement") with the Purchasers, Administrative Agent and
Collateral Agent.
WHEREAS,
the Issuer desires to enter into that certain Senior Revolving
Credit Agreement, dated as of even date herewith, by and among the
Issuer, BNP
Paribas, as Administrative Agent and the other Senior Revolving
Lenders party
thereto.
WHEREAS,
the Issuer, Aurora, the Purchasers, Administrative Agent and
Collateral Agent desire to amend the First Amended and Restated
Note Purchase
Agreement to the extent set forth herein.
NOW,
THEREFORE, in consideration of the foregoing and for other good
and
valuable consideration, the receipt and sufficiency of which are
hereby
acknowledged, the parties hereto hereby agree to amend and modify
the First
Amended and Restated Note Purchase Agreement, subject to the
satisfaction of the
conditions precedent set forth in Section 3 hereof, as follows:
<PAGE>
Section 1.
Defined Terms. Capitalized terms used but not defined in this
Amendment shall have the meanings assigned to such terms in the
First Amended
and Restated Note Purchase Agreement, as amended by this
Amendment.
Section 2.
Amendments.
2.01 Section 1.1 of the First Amended and Restated Note
Purchase
Agreement is hereby amended by inserting the following
definition:
"Permitted Senior Bank Facility" means that certain Senior
Revolving
Credit
Agreement, dated as of even date herewith, by and among the
Issuer,
BNP
Paribas, as Administrative Agent and the financial institutions
listed
therein
from time to time as Senior Revolving Lenders (as defined
therein),
as from time to time renewed, extended, amended, supplemented,
or
restated, and any agreements representing the refinancing,
replacement,
or
substitution in whole or in part of the revolving credit loans
and
letter of
credit liabilities made or incurred under such Revolving Credit
Agreement."
2.02 Section 1.1 of the First Amended and Restated Note
Purchase
Agreement is hereby amended by deleting the definition of
"Permitted
Encumbrances" in its entirety, and replacing it with the following
paragraph:
"Permitted Encumbrances" means
(a) Liens imposed by law for taxes, assessments or other
governmental charges or levies that are not at the time delinquent
or are being
contested in compliance with Section 5.1(i);
(b) carriers', warehousemen's, mechanics', materialmen's,
repairmen's and other like Liens imposed by law, arising in the
ordinary course
of business and securing obligations that are not overdue or are
being contested
in compliance with Section 5.1(i);
(c) pledges and deposits made in the ordinary course of business
in
compliance with workers' compensation, unemployment insurance and
other social
security laws or regulations;
(d) deposits to secure the performance of tenders, bids, trade
contracts, leases, statutory obligations, surety and appeal bonds,
performance
bonds and other obligations of a like nature, in each case in the
ordinary
course of business;
(e) irregularities in title, boundaries, or other survey
defects,
easements, leases, restrictions, servitudes, permits, zoning
restrictions,
rights-of-way, conditions, covenants, and rights of others in any
property of
the Issuer and its Subsidiaries for streets, roads, bridges, pipes,
pipelines,
railroads, electric transmission and distribution lines, telegraph
and telephone
lines, flood control, water rights, rights of others with respect
to navigable
waters, sewage and drainage rights existing as of the Closing Date
or granted by
the Issuer or its Subsidiaries in the ordinary course of business
and other
similar charges or encumbrances which do not secure the payment of
money and
otherwise do not materially interfere with the occupation, use and
enjoyment by
the Issuer or its Subsidiaries of any of the Property in the normal
course of
business or materially impair the value thereof;
2
<PAGE>
(f) licenses granted in the ordinary course of business and
leases
of Property of the Issuer and its Subsidiaries that is not material
to the
business and operations of the Issuer and its Subsidiaries;
(g) security interests arising by operation of law solely under
Article 2 of the UCC to the extent and so long as the "debtor" with
respect to
such security interests does not have or does not lawfully obtain
possession of
the goods subject thereto;
(h) any Lien or privilege vested in any lessor, licensor or
permittor for rent to become due or for other obligations or acts
to be
performed, the payment of which rent or the performance of which
other
obligations or acts is required under leases, subleases, licenses
or permits;
(i) any obligations or duties affecting any of the Property to
any
municipality or public authority with respect to any franchise,
grant, license
or permit which do not materially impair the use of such Property
for the
purposes for which it is held; and
(j) Liens securing the Permitted Senior Bank Facility which do
not
encumber any equity interest in the Issuer or any Overriding
Royalty Interest.
provided that other than as described in clause (j) above, the
term
"Permitted Encumbrances" shall not include any Lien securing
Funded
Indebtedness.
2.03 Section 2.7 of the First Amended and Restated Note
Purchase
Agreement is hereby amended and replaced in its entirety as
follows:
"As additional consideration for the Notes, Issuer and Aurora
shall, pursuant to an ORRI Conveyance executed, delivered and
recorded
concurrently with the later of the Closing or Issuer's or Aurora's
acquisition
of title, assign to ORRI Assignee an overriding royalty interest
(the
"Overriding Royalty Interest") in the Lands covered or included in
the Initial
Engineering Report or any subsequent Engineering Report and all
other properties
in the Project Area drilled or otherwise developed by Issuer or
Aurora on or
before the later of the Maturity Date or the repayment in full of
the Notes and
the Note Obligations (excluding those Note Obligations arising
under the
Overriding Royalty Interest). The Overriding Royalty Interest will
have a
royalty share of four percent (4%) proportionally reduced to
Issuer's or
Aurora's (i) working interest if the burdened interest of Issuer or
Au