Document:

EX-10.42

 Exhibit 10.42 

GRANT NO.                      

ACUGEN NEUROPEUTICS INC. 

2002 STOCK OPTION AND RESTRICTED STOCK PLAN 

[INCENTIVE][NONSTATUTORY] STOCK OPTION AGREEMENT 

Acugen Neuropeutics Inc., a Washington corporation (the “Company”), hereby grants an Option to purchase shares of its common stock
(the “Shares”) to the Optionee named below. The terms and conditions of the Option are set forth in this cover sheet, in the attachment and in the Company’s 2002 Stock Option and Restricted Stock Plan (the “Plan”). 

Date of Option
Grant:                                       
      , [YEAR] 
 Name of
Optionee:                                       
                                         
                 
 Optionee’s Social Security Number:
             -              -              

Number of Shares Covered by Option:
                                        

 Exercise Price per Share:
$                .             

Vesting Start Date:
                                     ,
[YEAR] 
 Vesting Schedule: 
 Subject
to all the terms of the attached Agreement and continuation of your Service through the applicable vesting date, your right to purchase Shares under this Option vests as to 25% of the total number of Shares covered by this Option, as shown above, on
the one-year anniversary of the Vesting Start Date. Thereafter, the number of Shares which you may purchase under this Option shall vest at the rate of 2.0833% per month, with 100% vested and exercisable on the four-year anniversary of the
Vesting Start Date. [OR SUBSTITUTE A DIFFERENT VESTING SCHEDULE]. The resulting aggregate number of vested Shares will be rounded to the nearest whole number. No additional Shares will vest after your Service has terminated for any reason.

 By signing this cover sheet, you agree to all of the terms and conditions described in the attached 

Agreement and in the Plan, a copy of which is also enclosed. 

 

					
	Optionee:	  	  

		  	(Signature)
		
	Company:	  	  

		  	(Signature)
			
		  	Title:	  	  

 Attachment 

 ACUGEN NEUROPEUTICS INC. 

2002 STOCK OPTION AND RESTRICTED STOCK PLAN 

[INCENTIVE][NONSTATUTORY] STOCK OPTION AGREEMENT 
  

			
	The Plan and Other Agreements	  	 The text of the Plan is incorporated in this Agreement by reference. Certain capitalized terms used in this Agreement are defined in the
Plan. [The Plan is subject to shareholder approval within twelve (12) months of the Board’s approval, effective June     , 2002.]
  

This Agreement and the Plan constitute the entire understanding between you and the Company regarding this Option. Any prior agreements, commitments or
negotiations concerning this Option are superseded.

		
	[Incentive][Nonstatutory] Stock Option	  	This Option is intended to be an Incentive Stock Option under Section 422 of the Internal Revenue Code and will be interpreted accordingly. [If shareholders of the Company fail to approve the Plan within twelve (12) months of
the Board’s approval, effective June     , 2002, this Option will be deemed a Nonstatutory Stock Option. If you cease to be an employee of the Company, a Subsidiary or a Parent but continue to provide Service,
this Option will be deemed a Nonstatutory Stock Option on the 90th day after you cease to be an employee. In addition, to the extent that all or part of this Option exceeds the $100,000 rule of Section 422(d) of the Code, this Option or the
lesser excess part will be treated as a Nonstatutory Stock Option.]
		
	Vesting	  	This Option is only exercisable before it expires and then only with respect to the vested portion of the Option. This Option will vest according to the Vesting Schedule on the attached cover sheet. If your Service terminates,
this Option will no longer qualify for accelerated vesting upon a Change in Control occurring after the date of termination of Service, pursuant to Section 10 of the Plan.
		
	Term	  	Your Option will expire in any event at the close of business at Company headquarters on the day before the 10th anniversary of the Date of Option Grant, as shown on the cover sheet. Your Option will expire earlier if your Service
terminates, as described below.
		
	Regular Termination	  	If your Service terminates for any reason, other than death, Disability or Cause, as defined below, then your Option will expire at the close of business at Company headquarters on the 90th day after your termination
date.

			
	Termination for Cause	  	If your Service is terminated for Cause, as determined by the Board in its sole discretion, then you shall immediately forfeit all rights to your Option and the Option shall immediately expire. For purposes of this Agreement,
“Cause” shall mean the termination of your Service due to your commission of any act of fraud, embezzlement or dishonesty; any unauthorized use or disclosure of confidential information or trade secrets of the Company (or any Parent,
Subsidiary or Affiliate); or any other intentional misconduct adversely affecting the business or affairs of the Company (or any Parent, Subsidiary or Affiliate) in a material manner. This definition shall not restrict in any way the Company’s
or any Parent’s, Subsidiary’s or Affiliate’s right to discharge you for any other reason, nor shall this definition be deemed to be inclusive of all the acts or omissions which constitute “cause” for purposes other than this
Agreement.
		
	Death	  	If your Service terminates because of your death, then your Option will expire at the close of business at Company headquarters on the date twelve (12) months after the date of death. During that twelve (12) month period, your
estate or heirs may exercise the vested portion of your Option.
		
	Disability	  	If your Service terminates because of your Disability, then your Option will expire at the close of business at Company headquarters on the date twelve (12) months after your termination date.
		
	Leaves of Absence	  	 For purposes of this Option, your Service does not terminate when you go on a bona fide leave of absence that was approved by the
Company in writing, if the terms of the leave provide for continued Service crediting, or when continued Service crediting is required by applicable law. [However, your Service will be treated as terminating ninety (90) days after you went on leave,
unless your right to return to active work is guaranteed by law or by a contract.] Your Service terminates in any event when the approved leave ends unless you immediately return to active work.

 
 The Company determines which leaves count for this purpose, and when your Service
terminates for all purposes under the Plan.

		
	Notice of Exercise	  	 When you wish to exercise this Option, you must notify the Company by filing the proper “Notice of Exercise” form at the address
given on the form. Your notice must specify how many Shares you wish to purchase. Your notice must also specify how your Shares should be registered (in your name only or in your and your spouse’s names as community property or as joint tenants
with right of survivorship). The notice will be effective when it is received by the Company.
  

If someone else wants to exercise this Option after your death, that person must prove to the Company’s satisfaction that he or she is entitled to do
so.

  
 -2- 

			
	Form of Payment	  	 When you submit your notice of exercise, you must include payment of the Exercise Price for the Shares you are purchasing. Payment may be
made in [one (or a combination) of the following forms]:
  

•  Cash, your personal check, a cashier’s check or a money order.

 
 [Determine at time of grant which of the following will be included:]

 
 •  [Shares which have already
been owned by you for [more than six (6) months] and which are surrendered to the Company. The value of the Shares, determined as of the effective date of the Option exercise, will be applied to the Exercise Price.]

 
 •  [Payment may be made all or
in part with a full recourse promissory note executed by you. The interest rate and other terms and conditions of such note shall be determined by the Company. The Company may require that you pledge your Shares to the Company for the purpose of
securing the payment of such note.]
  

•  [To the extent a public market for the Shares exists as determined by the Company, by delivery
(on a form prescribed by the Company) of an irrevocable direction to a securities broker to sell Shares and to deliver all or part of the sale proceeds to the Company in payment of the aggregate Exercise Price.]

		
	Withholding Taxes	  	You will not be allowed to exercise this Option unless you make acceptable arrangements to pay any withholding or other taxes that may be due as a result of the Option exercise or sale of Shares acquired under this Option.
		
	Restrictions on Exercise and Resale	  	By signing this Agreement, you agree not to exercise this Option or sell any Shares acquired under this Option at a time when applicable laws, regulations or Company or underwriter trading policies prohibit exercise, sale or
issuance of Shares. The Company will not permit you to exercise this Option if the issuance of Shares at that time would violate any law or regulation. The Company shall have the right to designate one or more periods of time, each of which shall
not exceed one hundred eighty (180) days in length, during which this Option shall not be exercisable if the Company determines (in its sole

  
 -3- 

			
		  	 discretion) that such limitation on exercise could in any way facilitate a lessening of any restriction on transfer pursuant to the
Securities Act or any state securities laws with respect to any issuance of securities by the Company, or facilitate the registration or qualification of any securities by the Company under the Securities Act or any state securities laws, or
facilitate the perfection of any exemption from the registration or qualification requirements of the Securities Act or any applicable state securities laws for the issuance or transfer of any securities, or subject the Company to reporting
requirements under the Securities Exchange Act (including Section 12(g)). Such limitation on exercise shall not alter the vesting schedule set forth in this Agreement other than to limit the periods during which this Option shall be
exercisable.
  
 If the sale of Shares under the Plan is not registered under the
Securities Act, but an exemption is available which requires an investment or other representation, you shall represent and agree at the time of exercise that the Shares being acquired upon exercise of this Option are being acquired for investment,
and not with a view to the sale or distribution thereof, and shall make such other representations as are deemed necessary or appropriate by the Company and its counsel.

		
	The Company’s Right of First Refusal	  	 In the event that you propose to sell, pledge or otherwise transfer to a third party any Shares acquired under this Agreement, or any
interest in such Shares, the Company shall have the “Right of First Refusal” with respect to all (and not less than all) of such Shares. If you desire to transfer Shares acquired under this Agreement, you must give a written “Transfer
Notice” to the Company describing fully the proposed transfer, including the number of Shares proposed to be transferred, the proposed transfer price and the name and address of the proposed transferee.

 
 The Transfer Notice shall be signed both by you and by the proposed new transferee and
must constitute a binding commitment of both parties to the transfer of the Shares. The Company shall have the right to purchase all, and not less than all, of the Shares on the terms of the proposal described in the Transfer Notice (subject,
however, to any change in such terms permitted in the next paragraph) by delivery of a notice of exercise of the Right of First Refusal within thirty (30) days after the date when the Transfer Notice was received by the Company. The Company’s
rights under this subsection shall be freely assignable, in whole or in part.

  
 -4- 

			
		  	 If the Company fails to exercise its Right of First Refusal within thirty (30) days after the date when it received the Transfer Notice, you
may, not later than ninety (90) days following receipt of the Transfer Notice by the Company, conclude a transfer of the Shares subject to the Transfer Notice on the terms and conditions described in the Transfer Notice. Any proposed transfer on
terms and conditions different from those described in the Transfer Notice, as well as any subsequent proposed transfer by you, shall again be subject to the Right of First Refusal and shall require compliance with the procedure described in the
paragraph above. If the Company exercises its Right of First Refusal, the parties shall consummate the sale of the Shares on the terms set forth in the Transfer Notice within sixty (60) days after the date when the Company received the Transfer
Notice (or within such longer period as may have been specified in the Transfer Notice); provided, however, that in the event the Transfer Notice provided that payment for the Shares was to be made in a form other than lawful money paid at the time
of transfer, the Company shall have the option of paying for the Shares with lawful money equal to the present value of the consideration described in the Transfer Notice.
  

The Company’s Right of First Refusal shall inure to the benefit of its successors and assigns and shall be binding upon any transferee of the Shares.
Share certificates shall bear a restrictive legend, set forth in this Agreement, indicating that such shares shall be subject to the Company’s Right of First Refusal.
  

The Company’s Right of First Refusal shall terminate in the event that Shares are listed on an established stock exchange or is quoted regularly on the
Nasdaq National Market.

		
	Transfer of Option	  	 Prior to your death, only you may exercise this Option. You cannot transfer or assign this Option. For instance, you may not sell this Option
or use it as security for a loan. If you attempt to do any of these things, this Option will immediately become invalid. You may, however, dispose of this Option in your will.
  

Regardless of any marital property settlement agreement, the Company is not obligated to honor a notice of exercise from your spouse, nor is the Company
obligated to recognize your spouse’s interest in your Option in any other way.

		
	Retention Rights	  	Your Option or this Agreement does not give you the right to be retained by the Company (or any Parent or any Subsidiaries or Affiliates) in any capacity. The Company (or any Parent and any Subsidiaries or Affiliates) reserves the
right to terminate your Service at any time and for any reason.

  
 -5- 

			
	Shareholder Rights	  	You, or your estate or heirs, have no rights as a shareholder of the Company until you properly exercise and deliver consideration for your Option’s Shares that is accepted by the Company, in accordance with terms in this
Agreement and the Plan. No adjustments shall be made for dividends or other rights if the applicable record date occurs before you are a record Shareholder of the Company, except as described in the Plan.
		
	Adjustments	  	In the event of a stock split, a stock dividend or a similar change in the Company stock, the number of Shares covered by this Option and the exercise price per Share may be adjusted (and rounded down to the nearest whole number)
pursuant to the Plan. Your Option shall be subject to the terms of the agreement of merger, liquidation or reorganization in the event the Company is subject to such corporate activity.
		
	Legends	  	 All certificates representing the Shares issued upon exercise of this Option shall, where applicable, have endorsed thereon the following
legend:
  
 “THE SECURITIES EVIDENCED BY THIS CERTIFICATE HAVE
NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR ANY APPLICABLE STATE SECURITIES LAWS, AND NO INTEREST MAY BE SOLD, DISTRIBUTED, ASSIGNED, OFFERED, PLEDGED OR OTHERWISE TRANSFERRED UNLESS (A) THERE IS AN
EFFECTIVE REGISTRATION STATEMENT UNDER THE ACT AND APPLICABLE STATE SECURITIES LAWS COVERING ANY SUCH TRANSACTION INVOLVING SAID SECURITIES, (B) THIS CORPORATION RECEIVES AN OPINION OF LEGAL COUNSEL FOR THE HOLDER OF THESE SECURITIES SATISFACTORY TO
THIS CORPORATION STATING THAT SUCH TRANSACTION IS EXEMPT FROM REGISTRATION, OR (C) THIS CORPORATION OTHERWISE SATISFIES ITSELF THAT SUCH TRANSACTION IS EXEMPT FROM REGISTRATION.”

 
 “THE SECURITIES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO
CERTAIN RESTRICTIONS ON RESALE AND TRANSFER AND A RIGHT OF FIRST REFUSAL HELD BY THE ISSUER AND/OR ITS ASSIGNEE(S) AND MAY NOT BE SOLD, ASSIGNED, TRANSFERRED, ENCUMBERED, OR IN ANY WAY DISPOSED OF EXCEPT AS SET FORTH IN AN AGREEMENT BETWEEN THE
ISSUER AND THE ORIGINAL PURCHASER OF THESE SHARES, A COPY OF WHICH MAY BE OBTAINED AT THE PRINCIPAL OFFICE OF THE ISSUER. SUCH TRANSFER RESTRICTIONS AND RIGHT OF FIRST REFUSAL ARE BINDING ON TRANSFEREES OF THESE SHARES.”

		
	Applicable Law	  	This Agreement will be interpreted and enforced under the laws of the State of Washington without giving effect to principles of conflicts of law.

 By signing the cover sheet of this Agreement, you agree to all of the terms and conditions described above and in the
Plan. 

  
 -6-ensv20160630_10q.htm

Exhibit 10.1

 

SEVENTH AMENDMENT TO 

AMENDED AND RESTATED REVOLVING CREDIT AND SECURITY AGREEMENT 

 

This SEVENTH AMENDMENT TO AMENDED AND RESTATED REVOLVING CREDIT AND SECURITY AGREEMENT (this “Amendment”), effective as of August 10, 2016, is entered into by and among ENSERVCO CORPORATION, a Delaware corporation (“Enservco”), DILLCO FLUID SERVICE, INC., a Kansas corporation (“Dillco”), and HEAT WAVES HOT OIL SERVICE LLC, a Colorado limited liability company (“Heat Waves”) (Enservco, Dillco and Heat Waves, and each Person joined to the Credit Agreement (as defined below) as a borrower from time to time, each, a “Borrower” and collectively, “Borrowers”), PNC BANK, NATIONAL ASSOCIATION (“PNC”), as the sole Lender on the date hereof, and PNC, as Agent for the Lenders (in such capacity, “Agent”), with reference to the following facts:

 

RECITALS

 

A.     The parties to this Amendment have entered into an Amended and Restated Revolving Credit and Security Agreement dated as of September 12, 2014, as amended by the Consent and First Amendment to Amended and Restated Revolving Credit and Security Agreement dated as of February 27, 2015, the Second Amendment to Amended and Restated Revolving Credit and Security Agreement dated as of March 29, 2015, the Third Amendment to Amended and Restated Revolving Credit and Security Agreement dated as of July 16, 2015, the Fourth Amendment to Amended and Restated Revolving Credit and Security Agreement and First Amendment to Amended and Restated Pledge and Security Agreement dated as of October 19, 2015, the Fifth Amendment to Amended and Restated Revolving Credit and Security Agreement dated as of December 31, 2015, and the Sixth Amendment to Amended and Restated Revolving Credit and Security Agreement dated as of March 29, 2016 (as may be further amended, restated, supplemented or otherwise modified from time to time, the “Credit Agreement”), pursuant to which the Lenders provide certain credit facilities to Borrowers;

B.     Any and all initially capitalized terms used in this Amendment without definition shall have the respective meanings assigned thereto in the Credit Agreement; 

C.     Borrowers have requested Agent and the Lenders amend certain provisions of the Credit Agreement as more fully set forth herein; and

D.     Agent and the Lenders are willing to make such amendments to the Credit Agreement, in accordance with, and subject to the terms and conditions set forth herein.

NOW, THEREFORE, in consideration of the agreements hereinafter set forth, and for other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the parties hereto agree as follows:

 

 

 

 

  

ARTICLE I     
AMENDMENTS TO CREDIT AGREEMENT

 

1.01         New Definitions. The following definitions are hereby added to Section 1.2 of the Credit Agreement in the appropriate alphabetical order:

 

“Sale-Leaseback Transaction” shall have the meaning set forth in Section 6.17 hereof.

 

“New Eligible Existing Equipment Advance Rate” shall have the meaning set forth in Section 2.1(a)(y)(ii) hereof.

 

“Sale-Leaseback Availability Block” shall mean (a) prior to consummation of the Sale-Leaseback Transaction, $0, and (b) at all times following consummation of the Sale-Leaseback Transaction, $1,000,000.

 

“Seventh Amendment Effective Date” shall mean August 10, 2016.

 

1.02         Amendment to Section 1.2 of the Credit Agreement. The definition of “Financial Covenant Period” set forth in Section 1.2 of the Credit Agreement is hereby amended and restated in its entirety as follows:

 

“Financial Covenant Period” means the period commencing on the earlier of: (a) July 1, 2017, and (b) the first date on which Borrowers fail to satisfy the Undrawn Availability covenant set forth in Section 6.5(c) hereof, and shall continue each day thereafter through the Term of this Agreement.

 

1.03        Amendment to Section 2.1(a)(y)(ii) of the Credit Agreement. Section 2.1(a)(y)(ii) of the Credit Agreement is hereby amended and restated in its entirety as follows:

 

(ii)     up to 85%, subject to the provisions of Section 2.1(b) hereof, of the appraised net orderly liquidation value of Eligible Existing Equipment, as evidenced by an equipment appraisal satisfactory to Agent in its Permitted Discretion, (the “Eligible Existing Equipment Advance Rate”); provided that the Eligible Existing Equipment Advance Rate shall decrease by 0.5% per month, commencing on the first day of the month immediately following the Seventh Amendment Effective Date, until the Eligible Existing Advance Rate is equal to 80% (the “New Eligible Existing Equipment Advance Rate”); provided further, that the New Eligible Existing Equipment Advance Rate shall continue to decrease by 0.5% per month, commencing on the first day of the month immediately following the Eligible Existing Equipment Advance Rate equaling 80%, until such time as Agent receives an updated equipment appraisal, at which point the New Eligible Existing Equipment Advance Rate shall re-set to 80% and continue to be subject to the 0.5% per month reduction described above in this proviso; plus

 

1.04       Amendment to Section 2.1(a)(y) of the Credit Agreement. Section 2.1(a)(y) of the Credit Agreement is hereby amended by replacing the “.” at the end of clause (v) with “, minus”, and adding new clause (vi) immediately following clause (v), to read as follows:

 

(vi)     the then applicable Sale-Leaseback Availability Block.

  

 

2 

 

 

1.05        Amendment to Section 2.1(a)(y) of the Credit Agreement. The last paragraph of Section 2.1(a)(y) of the Credit Agreement is hereby amended and restated in its entirety as follows:

 

The amount derived from (x) Section 2.1(a)(y)(i), plus Section 2.1(a)(y)(ii), plus Section 2.1(a)(y)(iii), minus (y) Sections 2.1(a)(y)(iv), (v), and (vi) at any time and from time to time shall be referred to as the “Formula Amount.” The Revolving Advances shall be evidenced by one or more secured promissory notes (collectively, the “Revolving Credit Note”) substantially in the form attached hereto as Exhibit 2.1(a).

 

1.06       Amendment to Section 6.5 of the Credit Agreement. Section 6.5 of the Credit Agreement is hereby amended and restated in its entirety as follows:

 

6.5     Financial Covenants.(a)     Fixed Charge Coverage Ratio. Commencing on the date on which the Financial Covenant Period begins and measured as of the end of the fiscal quarter immediately following the date on which the Financial Covenant Period first begins and as of the end of each fiscal quarter end thereafter during the Financial Covenant Period, Borrowers will cause to be maintained as of the last day of each such fiscal quarter (the “compliance test date” as used in this Section 6.5), a Fixed Charge Coverage Ratio of not less than 1.25 to 1.00 in respect of each compliance test date. For the purpose of this covenant, the Fixed Charge Coverage Ratio shall be determined on the basis of Adjusted EBITDA for the trailing four-quarter period ended on the applicable quarterly compliance test date. 

 

(b)     Leverage Ratio. Commencing on the date on which the Financial Covenant Period begins and measured as of the end of the fiscal quarter immediately following the date on which the Financial Covenant Period first begins and as of the end of each fiscal quarter end thereafter during the Financial Covenant Period, Borrowers will maintain as of the end of each fiscal quarter a ratio of Funded Debt to Adjusted EBITDA of not greater than 3.50 to 1.00. For the purpose of this covenant, the Leverage Ratio shall be determined on the basis of Adjusted EBITDA for the trailing four-quarter period ended on the applicable quarterly compliance test date.

 

(c)     Undrawn Availability. Cause to be maintained at all times during the period commencing on the Seventh Amendment Effective Date through and including June 30, 2017, tested each day, Undrawn Availability of not less than the applicable amount set forth below opposite the measurement date set forth below:

 

	
Measurement date:

 
	
Undrawn Availability

	
August 1, 2016 through and including August 31, 2016

 
	
$3,223,000

	
September 1, 2016 through and including September 30, 2016

 
	
$771,000

	
October 1, 2016 through and including October 31, 2016

 
	
$658,000

  

 

3 

 

 

	
November 1, 2016 through and including November 30, 2016

 
	
$773,000

	
December 1, 2016 through and including December 31, 2016

 
	
$3,371,000

	
January 1, 2017 through and including January 31, 2017

 
	
$3,056,000

	
February 1, 2017 through and including February 28, 2017

 
	
$3,517,000

	
March 1, 2017 through and including March 31, 2017

 
	
$3,304,000

	
April 1, 2017 through and including April 30, 2017

 
	
$2,539,000

	
May 17, 2017 through and including May 31, 2017

 
	
$2,209,000

	
June 1 through and including June 30, 3017

 
	
$1,622,000

 

 

1.07       Amendment to Article VI of the Credit Agreement. Article VI of the Credit Agreement is hereby amended to add new Section 6.17 immediately following Section 6.16 thereto, to read as follows:

 

6.17     Sale-Leaseback Transaction. On or before December 31, 2016, deliver evidence to Agent that the sale-leaseback transaction, substantially as reflected in the third party materials provided to Agent on or about the Seventh Amendment Effective Date, has been consummated, which such sale-leaseback shall result in net proceeds to Borrowers of an amount not less than the amount included in forecast assumptions provided to Agent (such transaction, the “Sale-Leaseback Transaction”).

 

ARTICLE II     
Conditions Precedent

 

2.01        Closing Conditions. This Amendment shall become effective as of the day and year first set forth above (the “Amendment Effective Date”) upon satisfaction of the following conditions (in each case, in form and substance reasonably acceptable to the Agent):

 

	 	
(a)
	
Amendment. The Agent shall have received from Borrowers this Amendment, duly executed by Borrowers and by PNC, as Agent and as the sole Lender as of the Amendment Effective Date;

  

 

4 

 

 

	 	
(b)
	
Fees and Expenses. (a) The Agent shall have received from the Borrowers an amendment fee in an amount equal to $200,000, which such fee shall be deemed fully earned and non-refundable on the Amendment Effective Date, and such other fees and expenses that are payable in connection with the consummation of the transactions contemplated hereby, and (b) the Agent’s counsel shall have received from Borrowers payment of all outstanding fees and expenses previously incurred and all fees and expenses incurred in connection with this Amendment; 

 

	 	
(c)
	
Default. After giving effect to this Amendment, no Default or Event of Default shall exist; and

 

	 	
(d)
	
Representations and Warranties. The representations and warranties set forth herein must be true and correct in all material respects (except that such materiality qualifier shall not be applicable to any representations and warranties that already are qualified or modified by materiality in the text thereof).

 

ARTICLE III     
Miscellaneous

 

3.01        Survival of Representations and Warranties. All representations and warranties made in the Credit Agreement or in any Other Document and any related agreements to which any Borrower is a party, and each of the representations and warranties contained in any certificate, document or financial or other statement furnished at any time under or in connection with the Credit Agreement, the Other Documents or any related agreement is true and correct in all material respects on and as of the date hereof as though made on and as of the date hereof, other than representations and warranties relating to a specific earlier date, and in such case such representations and warranties are true and correct in all material respects as of such earlier date.

 

3.02        Authority. Each Borrower has full power, authority and legal right to enter into this Amendment and to perform all its respective Obligations hereunder and under the Other Documents (as amended or modified hereby). This Amendment has been duly executed and delivered by such Person, and this Amendment constitutes the legal, valid and binding obligation of such Person enforceable in accordance with its terms, except as such enforceability may be limited by any applicable bankruptcy, insolvency, moratorium or similar laws affecting creditors’ rights generally. The execution, delivery and performance of this Amendment (a) are within such Person’s corporate, limited liability company or limited partnership powers (as applicable), have been duly authorized by all necessary company or partnership (as applicable) action, are not in contravention of law or the terms of such Person’s operating agreement, bylaws, partnership agreement, certificate of formation, articles of incorporation or other applicable documents relating to such Person’s formation or to the conduct of such Person’s business or of any material agreement or undertaking to which such Person is a party or by which such Person is bound, (b) will not, in any material respect, conflict with or violate any law or regulation, or any judgment, order or decree of any Governmental Body, (c) will not require the Consent of any Governmental Body or any other Person, except those Consents which have been duly obtained, made or compiled prior to the date hereof and which are in full force and effect or except those which the failure to have obtained would not have, or could not reasonably be expected to have, a Material Adverse Effect and (d) will not conflict with, nor result in any breach in any of the provisions of or constitute a default under or result in the creation of any Lien except Permitted Encumbrances upon any asset of any Borrower or Guarantor under the provisions of any material agreement, charter document, operating agreement or other instrument to which any Borrower or Guarantor is a party or by which it or its property is a party or by which it may be bound.

  

 

5 

 

 

3.03        No Default. After giving effect to this Amendment, no event has occurred and is continuing that constitutes a Default or an Event of Default.

 

3.04        References to the Credit Agreement. The Credit Agreement, each of the Other Documents, and any and all other agreements, documents or instruments now or hereafter executed and delivered pursuant to the terms hereof, or pursuant to the terms of the Credit Agreement as amended hereby, are hereby amended so that any reference therein to the Credit Agreement shall mean a reference to the Credit Agreement as amended by this Amendment.

 

3.05        Credit Agreement Remains in Effect. The Credit Agreement and the Other Documents remain in full force and effect, and Borrowers ratify and confirm their agreements and covenants contained therein. Borrowers hereby confirm that, after giving effect to this Amendment, no Event of Default or Default has occurred and is continuing. The execution, delivery and effectiveness of this Amendment shall not operate as a waiver of any right, power or remedy of the Agent or the Lenders under any of the Other Documents, nor constitute a waiver of any provision of any of the Other Documents.

 

3.06        Submission of Amendment. The submission of this Amendment to the parties or their agents or attorneys for review or signature does not constitute a commitment by Agent or the Lenders to modify any of their respective rights and remedies under the Other Documents, and this Amendment shall have no binding force or effect until all of the conditions to the effectiveness of this Amendment have been satisfied as set forth herein.

 

3.07        Severability. Any provision of this Amendment held by a court of competent jurisdiction to be invalid or unenforceable shall not impair or invalidate the remainder of this Amendment and the effect thereof shall be confined to the provision so held to be invalid or unenforceable.

 

3.08        Counterparts. This Amendment may be executed in one or more counterparts, each of which when so executed shall be deemed to be an original, but all of which when taken together shall constitute one and the same instrument.

 

3.09        Headings. The headings, captions and arrangements used in this Amendment are for convenience only and shall not affect the interpretation of this Amendment.

 

3.10        Expenses of Agent. Borrowers agree to pay on demand all costs and expenses reasonably incurred by Agent in connection with the preparation, negotiation and execution of this Amendment, including, without limitation, the costs and fees of Agent’s legal counsel.

 

3.11        NO ORAL AGREEMENTS. THIS AMENDMENT, TOGETHER WITH THE OTHER DOCUMENTS AS WRITTEN, REPRESENTS THE FINAL AGREEMENT AMONG THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS AMONG THE PARTIES.

 

[Signature Pages Follow]

 

 

6 

 

 

IN WITNESS WHEREOF, the parties have entered into this Amendment by their respective duly authorized officers as of the date first above written.

 

	
BORROWERS:

	
 

	
 

	
ENSERVCO CORPORATION,

	
a Delaware corporation

	
 

	
 

	
By:
	 
	
Name: Rick D. Kasch

	
Title: President

	
 

	
 

	
DILLCO FLUID SERVICE, INC.,

	
a Kansas corporation

	
 

	
 

	
By:
	 
	
Name: Rick D. Kasch

	
Title: President

	
 

	
 

	
HEAT WAVES HOT OIL SERVICE LLC,

	
a Colorado limited liability company

	
 

	
 

	By:	 
	Name: Rick D. Kasch
	Title: Manager

 

 

Seventh Amendment to Amended and Restated Revolving Credit and Security Agreement

 

 

 

 

 
	AGENT:
	
 

	PNC BANK, NATIONAL ASSOCIATION 
	
 

	
 

	
By:
	 
	
Name: Mark Tito

	
Title: Vice President 

	
 

	
 

	 
	 
	SOLE LENDER:
	 
	PNC BANK, NATIONAL ASSOCIATION
	
 

	
 

	
By:
	 
	
Name: Mark Tito

	
Title: Vice President 

 

 

Seventh Amendment to Amended and Restated Revolving Credit and Security Agreement

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