Document:

Exhibit 10.4

 

DOUGLAS DYNAMICS, INC.
 GRANT NOTICE FOR 2010 STOCK INCENTIVE PLAN
 RESTRICTED STOCK UNITS
 (NONEMPLOYEE DIRECTOR)

 

FOR GOOD AND VALUABLE CONSIDERATION, Douglas Dynamics, Inc. (the “Company”), hereby grants to Participant named below the number of restricted stock units specified below (the “Award”), upon the terms and subject to the conditions set forth in this Grant Notice, the Douglas Dynamics, Inc. 2010 Stock Incentive Plan (the “Plan”) and the Standard Terms and Conditions (the “Standard Terms and Conditions”) adopted under such Plan and provided to Participant, each as amended from time to time.  Each restricted stock unit subject to this Award represents the right to receive one share of the Company’s common stock, par value $0.01 (the “Common Stock”), subject to the conditions set forth in this Grant Notice, the Plan and the Standard Terms and Conditions.  This Award is granted pursuant to the Plan and is subject to and qualified in its entirety by the Standard Terms and Conditions.

 

Name of Participant:                      

 

Grant Date:                          , 20   

 

Number of restricted stock units subject to the Award:                             

 

Vesting Schedule:                                Subject to the terms and conditions set forth in the Standard Terms and Conditions:

 

                              restricted stock units shall vest on                          , 20   

 

                              restricted stock units shall vest on                          , 20   

 

                              restricted stock units shall vest on                          , 20   

 

By accepting this Grant Notice, Participant acknowledges that he or she has received and read, and agrees that this Award shall be subject to, the terms of this Grant Notice, the Plan and the Standard Terms and Conditions.

 

 

	
DOUGLAS   DYNAMICS, INC.
    	
 
    	
 
    
	
 
    	
 
    	
Participant Signature
    
	
By:
    	
 
    	
 
    	
 
    
	
Title:
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
Address   (please print)
    

 

 

DOUGLAS DYNAMICS, INC.
 STANDARD TERMS AND CONDITIONS FOR
 RESTRICTED STOCK UNITS
 (NONEMPLOYEE DIRECTOR)

 

These Standard Terms and Conditions apply to the Award of restricted stock units granted pursuant to the Douglas Dynamics, Inc. 2010 Stock Incentive Plan (the “Plan”), which are evidenced by a Grant Notice that specifically refers to these Standard Terms and Conditions.  In addition to these Terms and Conditions, the restricted stock units shall be subject to the terms of the Plan, which are incorporated into these Standard Terms and Conditions by this reference.  Capitalized terms not otherwise defined herein shall have the meaning set forth in the Plan.

 

1.                                      TERMS OF RESTRICTED STOCK UNITS

 

Douglas Dynamics, Inc., a Delaware corporation (the “Company”), has granted to the Participant named in the Grant Notice provided to said Participant herewith (the “Grant Notice”) an award of a number of restricted stock units (the “Award” or the “Restricted Stock Units”) specified in the Grant Notice.  Each Restricted Stock Unit represents the right to receive one share of the Company’s common stock, $0.01 par value per share (the “Common Stock”), upon the terms and subject to the conditions set forth in the Grant Notice, these Standard Terms and Conditions, and the Plan, each as amended from time to time.  For purposes of these Standard Terms and Conditions and the Grant Notice, any reference to the Company shall include a reference to any Subsidiary.

 

2.                                      VESTING OF RESTRICTED STOCK UNITS

 

The Award shall not be vested as of the Grant Date set forth in the Grant Notice and shall be forfeitable unless and until otherwise vested pursuant to the terms of the Grant Notice and these Standard Terms and Conditions.  After the Grant Date, subject to termination or acceleration as provided in these Standard Terms and Conditions and the Plan, the Award shall become vested as described in the Grant Notice with respect to that number of Restricted Stock Units as set forth in the Grant Notice.  The vesting of the Restricted Stock Units shall accelerate, and all of the Restricted Stock Units shall become fully vested, upon the occurrence of a Change of Control or upon the Participant’s Termination of Employment.  Restricted Stock Units that have vested and are no longer subject to forfeiture are referred to herein as “Vested Restricted Stock Units.”

 

3.                                      SETTLEMENT OF RESTRICTED STOCK UNITS

 

Vested Restricted Stock Units shall be settled by the delivery to the Participant or a designated brokerage firm of one share of Common Stock per Vested Restricted Stock Unit as soon as reasonably practicable following a Termination of Employment of the Participant that constitutes a “Separation from Service” (as defined in authoritative guidance under Section 409A of the Code), and in all events no later than the end of the calendar year in which such Termination of Employment occurs or, if later, two and one-half months after such Termination of Employment (unless delivery is subsequently deferred pursuant to a nonqualified deferred compensation plan in accordance with the requirements of Section 409A of the Code).

 

 

4.                                      RIGHTS AS STOCKHOLDER; DIVIDEND EQUIVALENTS

 

The Participant shall not have voting rights with respect to shares of Common Stock underlying Restricted Stock Units unless and until such shares of Common Stock are reflected as issued and outstanding shares on the Company’s stock ledger.

 

The Participant shall receive a cash payment equivalent to any dividends or other distributions paid with respect to the shares of Common Stock underlying the Restricted Stock Units, so long as the applicable record date occurs before such Restricted Stock Units are forfeited.  If, however, any dividends or distributions with respect to the Common Stock underlying the Restricted Stock Units are paid in Shares rather than cash, the Participant shall be credited with additional restricted stock units equal to the number of Shares that the Participant would have received had the Restricted Stock Units been actual Shares, and such restricted stock units shall be deemed Restricted Stock Units subject to the same risk of forfeiture and other terms of the Grant Notice, these Standard Terms and Conditions and the Plan as are the other Restricted Stock Units granted under this Award.  Any amounts due to the Participant under this provision shall be paid to the Participant, in cash, no later than the end of the calendar year in which the dividend or other distribution is paid to stockholders of the Company or, if later, the 15th day of the third month following the date the dividends are paid to stockholders; provided that, in the case of any distribution with respect to which the Participant is credited with additional Restricted Stock Units, distribution shall be made at the same time as payment is made in respect of the other Restricted Stock Units granted under this Award.

 

5.                                      RESTRICTIONS ON RESALES OF SHARES

 

The Company may impose such restrictions, conditions or limitations as it determines appropriate as to the timing and manner of any resales by the Participant or other subsequent transfers by the Participant of any Common Stock issued in respect of Vested Restricted Stock Units, including without limitation (a) restrictions under an insider trading policy, (b) restrictions designed to delay and/or coordinate the timing and manner of sales by Participant and other holders and (c) restrictions as to the use of a specified brokerage firm for such resales or other transfers.

 

6.                                      TAXES

 

The Company shall not deliver shares in respect of any Restricted Stock Units unless and until the Participant has made arrangements satisfactory to the Company for the satisfaction of any applicable withholding tax obligations.  The Company shall not be required to issue shares or to recognize the disposition of such shares until such obligations are satisfied.  Unless the Participant pays the withholding tax obligations to the Company by cash or check in connection with the delivery of the Common Stock, withholding may be effected, at the Company’s option, by withholding Common Stock issuable in connection with the Award (provided that shares of Common Stock may be

 

2

 

withheld only to the extent that such withholding will not result in adverse accounting treatment for the Company).  The Participant acknowledges that the Company shall have the right to deduct any taxes required to be withheld by law in connection with the Award from any amounts payable by it to the Participant (including, without limitation, future cash wages).

 

7.                                      NON-TRANSFERABILITY OF AWARD

 

The Participant represents and warrants that the Restricted Stock Units are being acquired by the Participant solely for the Participant’s own account for investment and not with a view to or for sale in connection with any distribution thereof.  The Participant further understands, acknowledges and agrees that, except as otherwise provided in the Plan or as permitted by the Administrator, the Restricted Stock Units may not be sold, assigned, transferred, pledged or otherwise directly or indirectly encumbered or disposed of.

 

8.                                      OTHER AGREEMENTS SUPERSEDED

 

The Grant Notice, these Standard Terms and Conditions and the Plan constitute the entire understanding between the Participant and the Company regarding the Restricted Stock Units.  Any prior agreements, commitments or negotiations concerning the Restricted Stock Units are superseded.

 

9.                                      LIMITATION OF INTEREST IN SHARES SUBJECT TO RESTRICTED STOCK UNITS

 

Neither the Participant (individually or as a member of a group) nor any beneficiary or other person claiming under or through the Participant shall have any right, title, interest, or privilege in or to any shares of Common Stock allocated or reserved for the purpose of the Plan or subject to the Grant Notice or these Standard Terms and Conditions except as to such shares of Common Stock, if any, as shall have been issued to such person in connection with the Award.  Nothing in the Plan, in the Grant Notice, these Standard Terms and Conditions or any other instrument executed pursuant to the Plan shall confer upon the Participant any right to continue in the Company’s employ or service nor limit in any way the Company’s right to terminate the Participant’s employment at any time for any reason.

 

10.                               GENERAL

 

In the event that any provision of these Standard Terms and Conditions is declared to be illegal, invalid or otherwise unenforceable by a court of competent jurisdiction, such provision shall be reformed, if possible, to the extent necessary to render it legal, valid and enforceable, or otherwise deleted, and the remainder of these Standard Terms and Conditions shall not be affected except to the extent necessary to reform or delete such illegal, invalid or unenforceable provision.

 

The headings preceding the text of the sections hereof are inserted solely for convenience of reference, and shall not constitute a part of these Standard Terms and Conditions, nor shall they affect its meaning, construction or effect.

 

3

 

These Standard Terms and Conditions shall inure to the benefit of and be binding upon the parties hereto and their respective permitted heirs, beneficiaries, successors and assigns.

 

These Standard Terms and Conditions shall be construed in accordance with and governed by the laws of the State of Delaware, without regard to principles of conflicts of law.

 

In the event of any conflict between the Grant Notice, these Standard Terms and Conditions and the Plan, the Plan shall control.  In the event of any conflict between the Grant Notice and these Standard Terms and Conditions, the Grant Notice shall control.

 

All questions arising under the Plan or under these Standard Terms and Conditions shall be decided by the Administrator in its total and absolute discretion.

 

11.                               ELECTRONIC DELIVERY

 

By executing the Grant Notice, the Participant hereby consents to the delivery of information (including, without limitation, information required to be delivered to the Participant pursuant to applicable securities laws) regarding the Company and the Subsidiaries, the Plan, and the Restricted Stock Units via Company web site or other electronic delivery.

 

4Exhibit 10.1

 

FIFTH AMENDMENT TO
 FIFTH AMENDED AND RESTATED CREDIT AGREEMENT

 

This Fifth Amendment to Fifth Amended and Restated Credit Agreement (this “Fifth Amendment” or “Amendment”) is entered into as of the 1st day of May, 2013 (the “Effective Date”), by and among GEOMET, INC., a Delaware corporation (“Borrower”), BANK OF AMERICA, N.A., as Administrative Agent (“Administrative Agent”), and the Banks party hereto.

 

W I T N E S S E T H:

 

WHEREAS, Borrower, Administrative Agent, the financial institutions party thereto as Banks and the other agents party thereto are parties to that certain Fifth Amended and Restated Credit Agreement dated as of October 14, 2011 (as amended, restated, supplemented or otherwise modified prior to the date hereof, the “Credit Agreement”) (unless otherwise defined herein, all terms used herein with their initial letter capitalized shall have the meaning given such terms in the Credit Agreement as amended by this Fifth Amendment);

 

WHEREAS, pursuant to the Credit Agreement, the Banks have made a revolving credit loan to Borrower and provided certain other credit accommodations to Borrower;

 

WHEREAS, Borrower has advised Administrative Agent and the Banks that Borrower intends to sell or otherwise transfer those certain Borrowing Base Properties and related equipment and other property used solely in connection with such Borrowing Base Properties listed on Exhibit A hereto;

 

WHEREAS Borrower has further advised Administrative Agent and the Banks that, as a result of the reduction in projected production from the Alabama Asset Sale (as hereinafter defined), the Credit Parties may elect to effect certain Borrowing Base Hedge Monetizations in connection therewith;

 

WHEREAS, Borrower has requested, among other things, that the Banks, subject to the conditions set forth herein, (a) consent to the Alabama Asset Sale, and allow a portion of the proceeds received from such Alabama Asset Sale to be held by Borrower for up to 180 days after the consummation thereof as a reserve to be used to fund any related Borrowing Base Hedge Monetizations and certain other post-closing purchase price adjustments, costs, charges and expenses described in this Fifth Amendment, (b) consent to the Pocahontas Release (as hereinafter defined), (c) redetermine the Borrowing Base as more specifically set forth in Section 3 below and (d) amend certain terms and provisions of the Credit Agreement as provided in this Fifth Amendment; and

 

WHEREAS, Administrative Agent and the Banks are willing to amend the Credit Agreement as set forth below on the terms and conditions set forth herein.

 

NOW THEREFORE, for and in consideration of the mutual covenants and agreements herein contained and other good and valuable consideration, the receipt and sufficiency of which

 

 

are hereby acknowledged and confessed, Borrower, Administrative Agent and the Banks party hereto hereby agree as follows:

 

Section 1.                                           Amendments.  In reliance on the representations, warranties, covenants and agreements contained in this Fifth Amendment, and subject to the satisfaction of each condition precedent set forth in Section 4 herein, the Credit Agreement shall be amended effective as of the Effective Date in the manner provided in this Section 1.

 

1.1                               Additional Definitions.  Section 1.1 of the Credit Agreement is hereby amended to add thereto in alphabetical order the following definitions which shall read in full as follows:

 

“Alabama Asset Sale” means the sale of those certain Borrowing Base Properties and the equipment and other property used solely in connection with such properties pursuant to the Alabama Asset Sale Documentation, which transaction is more fully described in the Fifth Amendment.

 

“Alabama Asset Sale Documentation” means any and all escrow agreements, sale agreements and/or other assignment documentation, as approved by and acceptable to Administrative Agent, pursuant to which the Alabama Asset Sale will be consummated.

 

“Alabama Asset Sale Earnest Money Deposit” means any deposit paid by the buyer under the Alabama Asset Sale Documentation to Borrower or its Subsidiaries pending closing of the Alabama Asset Sale, such deposit to be held by Borrower in its primary operating account pending the crediting of such deposit against the purchase price upon closing of the Alabama Asset Sale or return of such deposit, or so much thereof as may be required under the terms of the Alabama Asset Sale Documentation, to the buyer in the event that such sale fails to close in accordance with its terms.

 

“Alabama Asset Sale Expense Reserve” means the amount reasonably estimated by Borrower in a report provided to the Administrative Agent on or before the closing date of the Alabama Asset Sale, not to exceed $5,000,000 of the cash proceeds received by Borrower from the Alabama Asset Sale, to be held in reserve by Borrower in its primary operating account pending disbursement in accordance with Section 2.07(d), which amount shall be comprised solely of and spent to pay the following: (i) an amount up to $2,600,000 in the aggregate necessary to effect any Borrowing Base Hedge Monetization in connection with the Alabama Asset Sale, plus (ii) an amount necessary to satisfy any post-closing purchase price adjustments,  lease or other contract termination costs, employee relocation

 

2

 

expenses, and severance related obligations incurred by Borrower in connection with the Alabama Asset Sale, plus (iii) an amount necessary to pay fees and other transaction costs payable in accordance with or pursuant to the Fifth Amendment or related to the Alabama Asset Sale and any federal or state income taxes reasonably anticipated to be owed by any Credit Party as a result of the Alabama Asset Sale.

 

“Fifth Amendment” means that certain Fifth Amendment to Fifth Amended and Restated Credit Agreement dated as of May 1, 2013, among Borrower, Administrative Agent and the Banks party thereto.

 

“Fifth Amendment Effective Date” means the date on which the conditions specified in Section 4 of the Fifth Amendment are satisfied.

 

“Final Alabama Expense Settlement Date” means the date that is not more than 180 days after the consummation of the Alabama Asset Sale.

 

1.2                               Amendments to Definitions.  The definitions of “Loan Papers” and “Monthly Loan Reduction” contained in Section 1.1 of the Credit Agreement are hereby amended and restated in their entirety as follows:

 

“Loan Papers” means this Agreement, the First Amendment, the Second Amendment, the Third Amendment, the Fourth Amendment, the Fifth Amendment, the Notes, each Facility Guaranty now or hereafter executed, the Mortgages, the First Amended and Restated Pledge and Security Agreement, the Borrower Pledge Agreement, each Subsidiary Pledge Agreement now or hereafter executed, the Certificate of Effectiveness, and all other certificates, documents or instruments delivered in connection with this Agreement, as the foregoing may be amended from time to time.

 

“Monthly Loan Reduction” means the sum of the collected balances on deposit in the Sweep Accounts (including collection, operating, disbursement and all other bank accounts, but excluding the segregated account) maintained by Borrower and any of its Subsidiaries, minus (i) all outstanding and unpaid checks or Automated Clearing House (ACH) payments, (ii) until the closing of the Alabama Asset Sale, the Alabama Asset Sale Earnest Money Deposit, if any, (iii) from the closing of the Alabama Asset Sale until the Final Alabama Expense Settlement Date, the remaining balance of the Alabama Asset Sale Expense Reserve, if any, and (iv) an amount equal to $2,000,000.  The

 

3

 

Monthly Loan Reduction shall be calculated as of the close of business on the 24th day of each month or if the 24th day of the month is not a Domestic Business Day then on the immediately preceding Domestic Business Day commencing on August 24, 2012.

 

1.3                               Amendment to Section 2.7.  Section 2.7 of the Credit Agreement shall be amended to insert new subsection (d) immediately after subsection (c) therein which new subsection (d) shall read in full as follows:

 

“(d)                           Notwithstanding the foregoing, contemporaneously with the closing of the Alabama Asset Sale, Borrower shall (i) apply all gross proceeds received from the Alabama Asset Sale, including, without limitation, any Alabama Asset Sale Earnest Money Deposit, less the Alabama Asset Sale Expense Reserve, first, to repay all accrued and unpaid interest on the Loans, second, to repay the outstanding principal balance of the Tranche B Loans until repaid in full and third, to repay the outstanding principal balance of the Tranche A Loans.  All funds held in the Alabama Asset Sale Expense Reserve shall be disbursed by Borrower from time to time solely to pay amounts described in the definition of Alabama Asset Sale Expense Reserve related to the Alabama Asset Sale until the Final Alabama Expense Settlement Date, at which time any remaining balance in the Alabama Asset Sale Expense Reserve shall be used to repay the outstanding principal balance of the Tranche A Loans until repaid in full.”

 

1.4                               Amendment to Section 2.12.  Section 2.12 of the Credit Agreement is hereby amended by adding the following sentence immediately after the final sentence thereof:

 

“Notwithstanding the foregoing, any such ticking fee due on June 1, 2013 shall be deemed to have been partially prepaid by the amendment fee paid by Borrower pursuant to Section 5.8 of the Fifth Amendment.”

 

1.5                               Amendment to Article X.  Subsection (a) of Article X of the Credit Agreement shall be amended to delete the reference to “$1,000,000” contained therein and replace it with “$1,500,000”.

 

Section 2.                                           Limited Consents.

 

2.1                               In reliance on the representations, warranties, covenants and agreements contained in this Fifth Amendment, and subject to the terms and conditions set forth in (i) this Section 2 and (ii) Section 3 and Section 4 hereof, the Banks hereby consent to the Alabama Asset Sale and any Borrowing Base Hedge Monetization effected by the Credit Parties in connection therewith notwithstanding the restrictions set forth in Section 9.5 of the Credit Agreement; provided, that each of the following conditions is satisfied:

 

4

 

(a)                                         the Alabama Asset Sale shall be consummated and funded on or prior to June 30, 2013;

 

(b)                                         neither Borrower nor any Credit Party shall sell, lease, transfer, abandon or otherwise dispose of any Borrowing Base Property or terminate or otherwise effect any other Borrowing Base Hedge Monetization pursuant to Section 9.5 of the Credit Agreement prior to the consummation of the Alabama Asset Sale in accordance with the conditions set forth in this Section 2 without the prior written consent of the Administrative Agent;

 

(c)                                          the Alabama Asset Sale shall be consummated pursuant to Alabama Asset Sale Documentation, the material terms of which shall be acceptable to Administrative Agent, and no assets other than the Borrowing Base Properties located in Alabama identified on Exhibit A hereto and other related property used solely in connection therewith shall be sold or otherwise assigned pursuant to the Alabama Asset Sale Documentation;

 

(d)                                         the gross cash proceeds received by the Borrower upon the closing of the Alabama Asset Sale, including the Alabama Asset Sale Earnest Money Deposit but excluding the Alabama Asset Sale Expense Reserve (the “Alabama Net Cash Proceeds”) shall not be less than $52,000,000 in the aggregate, which amount shall be paid to the Administrative Agent, and shall be used to repay the Loans in the following order: (i) first, toward all accrued and unpaid interest on the Loans to the date of such payment, (ii) second, toward the outstanding principal balance of the Tranche B Loans until repaid in full and (iii) third, toward the outstanding principal balance of the Tranche A Loans until repaid in full; and

 

(e)                                          No Default or Event of Default exists immediately prior to or after giving effect to the consummation of the Alabama Asset Sale.

 

2.2                               In reliance on the representations, warranties, covenants and agreements contained in this Fifth Amendment, and subject to the terms and conditions set forth in (i) this Section 2 and (ii) Section 3 and Section 4 hereof, the Banks hereby consent to the release of the Liens granted under those Mortgages encumbering the rights of way and surface use agreements as more fully described by that certain letter from the Pocahontas Land Corporation and attached as Exhibit B hereto (the “Pocahontas Release”), but only to the extent that no Default or event of Default exists immediately prior to or after giving effect to the Pocahontas Release, the Alabama Asset Sale has been consummated and funded in accordance with this Section 2 and no Borrowing Base Deficiency shall exist or result therefrom.  Subject to the terms and conditions hereof, the Banks hereby agree to release and discharge, and to authorize the Administrative Agent to release and discharge, all of their Liens and security interests on the property subject to the Alabama Asset Sale upon consummation of such Alabama Asset Sale, including, without limitation, the full release of all Mortgages filed in the State of Alabama and partial releases of any related financing statements with respect thereto.

 

Notwithstanding anything to the contrary contained in this Fifth Amendment, the consents granted in this Section 2 are limited solely to the Alabama Asset Sale, any related Borrowing Base Hedge Monetizations, and the Pocahontas Release and nothing contained herein shall be deemed a consent to, or waiver of, any other action or inaction of Borrower or any Credit Party, which constitutes (or would constitute) a violation of any provisions of the Credit

 

5

 

Agreement or any Loan Paper.  Neither the Banks nor Administrative Agent shall be obligated to grant any future waivers, consents or amendments with respect to any other provision of the Credit Agreement or any other Loan Paper.

 

Section 3.                                           Borrowing Base.  In reliance on the representations, warranties, covenants and agreements contained in this Fifth Amendment, and subject to the terms and conditions set forth herein and the satisfaction of the conditions listed in Section 2 and Section 4 hereof, the Borrowing Base shall be redetermined pursuant to the following formula (the “Borrowing Base Redetermination Formula):

 

(a)                                 prior to the consummation of the Alabama Asset Sale, the existing Borrowing Base of $115,000,000; and

 

(b)                                 at any time thereafter, the lesser of (i) $83,000,000 and (ii) the outstanding principal balance of the Loans after giving effect to any application of the Alabama Net Cash Proceeds amount and any further reductions in the outstanding principal balance of the Loans from the Alabama Asset Sale Expense Reserve (such amount, the “Post-Alabama Asset Sale Borrowing Base”).

 

Such Post-Alabama Asset Sale Borrowing Base shall be effective as of the consummation of the Alabama Asset Sale in accordance with the conditions set forth in Section 2 above, and shall remain effective until the next Determination thereof.  Borrower and the Banks agree that the redetermination of the Borrowing Base contained in this Section 3 (i) shall not be deemed to be a request for a Special Determination by Supermajority Banks for purposes of Section 4.3 of the Credit Agreement and (ii) shall be deemed to be the Scheduled Determination scheduled for on or about June 30, 2013 for purposes of Section 4.2 of the Credit Agreement.

 

Section 4.                                           Conditions Precedent to Fifth Amendment.  The effectiveness of the amendments to the Credit Agreement contained in Section 1 hereof, the limited consents contained in Section 2 hereof and the Borrowing Base established pursuant to Section 3 hereof are each subject to the satisfaction of each of the following conditions precedent:

 

4.1                               Counterparts of Amendment.  Administrative Agent shall have received counterparts of this Fifth Amendment executed on behalf of Borrower, each Guarantor, Administrative Agent and Supermajority Banks.

 

4.2                               Other Information.  Administrative Agent shall have received such other information and documents as may be reasonably required by Administrative Agent or its counsel.

 

4.3                               Authority Documentation.  Administrative Agent shall have received such corporate resolutions, certificates and other documents as Administrative Agent shall reasonably require evidencing the authority of Borrower and Guarantors to enter into this Fifth Amendment and the other Loan Papers contemplated hereby.

 

Section 5.                                           Representations and Warranties of Borrower.  To induce the Banks and Administrative Agent to enter into this Fifth Amendment, Borrower hereby represents and warrants to Banks and Administrative Agent as follows:

 

6

 

5.1                               Reaffirm Existing Representations and Warranties.  Each representation and warranty of Borrower contained in the Credit Agreement and the other Loan Papers is true and correct on the date hereof and will be true and correct after giving effect to the amendments set forth in Section 1 hereof, the limited consents set forth in Section 2 hereof and the Borrowing Base established pursuant to Section 3 hereof.

 

5.2                               Due Authorization; No Conflict.  The execution, delivery and performance by Borrower of this Fifth Amendment are within Borrower’s corporate powers, have been duly authorized by all necessary action, require no action by or in respect of, or filing with, any governmental body, agency or official and do not violate or constitute a default under any provision of applicable law or any Material Agreement binding upon Borrower or any other Credit Party, or result in the creation or imposition of any Lien upon any of the assets of Borrower or any other Credit Party.

 

5.3                               Validity and Enforceability.  This Fifth Amendment constitutes the valid and binding obligation of Borrower and each Guarantor enforceable in accordance with its terms, except as (a) the enforceability thereof may be limited by bankruptcy, insolvency or similar laws affecting creditor’s rights generally, and (b) the availability of equitable remedies may be limited by equitable principles of general application.

 

5.4                               No Default.  No Default or Event of Default shall have occurred which is continuing.

 

5.5                               No Material Adverse Effect.  There shall not have occurred since December 31, 2012 any event or condition that has had or could be reasonably expected, either individually or in the aggregate, to have a Material Adverse Effect.

 

5.6                               Absence of Litigation.  There shall not be any action, suit, investigation or proceeding pending or, to the knowledge of Borrower, threatened in any court or before any arbitrator or governmental authority that could reasonably be expected to have a Material Adverse Effect.

 

5.7                               Fees.  Borrower shall have paid all accrued fees and expenses of Administrative Agent billed to Borrower on or prior to the date of this Fifth Amendment (including the fees and expenses of counsel for Administrative Agent and its financial advisor).

 

5.8                               Amendment Fee.  Borrower shall have paid a fee of 25 basis points to each Bank based on such Bank’s pro rata amount of the Tranche B Loans outstanding on the date hereof.

 

Section 6.                                           Miscellaneous.

 

6.1                               Reaffirmation of Loan Papers.  Any and all of the terms and provisions of the Credit Agreement and the Loan Papers shall, except as amended and modified hereby, remain in full force and effect.  The amendments contemplated hereby shall not limit or impair any Liens securing the Obligations, each of which are hereby ratified, affirmed and extended to secure the Obligations as they may be increased pursuant hereto.

 

7

 

6.2                               Parties in Interest.  All of the terms and provisions of this Fifth Amendment shall bind and inure to the benefit of the parties hereto and their respective successors and assigns.

 

6.3                               Legal Expenses.  Borrower hereby agrees to pay on demand all reasonable fees and expenses of counsel to Administrative Agent incurred by Administrative Agent in connection with the preparation, negotiation and execution of this Fifth Amendment and all related documents.

 

6.4                               Counterparts.  This Fifth Amendment may be executed in counterparts (including, without limitation, by electronic signature), and all parties need not execute the same counterpart; however, no party shall be bound by this Fifth Amendment until Borrower and each Bank has executed a counterpart.  Facsimiles and counterparts executed by electronic signature (e.g. pdf) shall be effective as originals.

 

6.5                               Complete Agreement.  THIS FIFTH AMENDMENT, THE CREDIT AGREEMENT AND THE OTHER LOAN PAPERS REPRESENT THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR ORAL AGREEMENTS OF THE PARTIES.  THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN OR AMONG THE PARTIES.

 

6.6                               Headings.  The headings, captions and arrangements used in this Fifth Amendment are, unless specified otherwise, for convenience only and shall not be deemed to limit, amplify or modify the terms of this Fifth Amendment, nor affect the meaning thereof.

 

6.7                               Governing Law.  This Fifth Amendment shall be governed by, and construed in accordance with, the laws of the State of New York, other than conflict of laws rules thereof.

 

6.8                               WAIVER, RELEASE, COVENANT NOT TO SUE, AND INDEMNIFICATION.

 

(A)                               BORROWER AND EACH OF THE GUARANTORS (IN ITS OWN RIGHT AND ON BEHALF OF ITS OFFICERS, EMPLOYEES, ATTORNEYS AND AGENTS) HEREBY EXPRESSLY AND UNCONDITIONALLY ACKNOWLEDGE AND AGREE THAT IT HAS NO SETOFFS, COUNTERCLAIMS, ADJUSTMENTS, RECOUPMENTS, DEFENSES, CLAIMS, CAUSES OF ACTION, ACTIONS OR DAMAGES OF ANY CHARACTER OR NATURE, WHETHER CONTINGENT, NONCONTINGENT, LIQUIDATED, UNLIQUIDATED, FIXED, MATURED, UNMATURED, DISPUTED, UNDISPUTED, LEGAL, EQUITABLE, SECURED OR UNSECURED, KNOWN OR UNKNOWN, ACTUAL OR PUNITIVE, FORESEEN OR UNFORESEEN, DIRECT, OR INDIRECT, AGAINST ADMINISTRATIVE AGENT, ANY BANK, ANY OF THEIR AFFILIATES OR ANY OF THEIR OFFICERS, DIRECTORS, AGENTS, EMPLOYEES, ATTORNEYS, ADVISORS OR REPRESENTATIVES (COLLECTIVELY, THE “BANK-RELATED PARTIES”) OR ANY GROUNDS OR CAUSE FOR REDUCTION, MODIFICATION, SET ASIDE OR SUBORDINATION OF THE OBLIGATIONS OR AMOUNTS OWED UNDER THE LOAN PAPERS OR ANY LIENS OR SECURITY INTERESTS OF ADMINISTRATIVE

 

8

 

AGENT.  IN PARTIAL CONSIDERATION FOR THE AGREEMENT OF ADMINISTRATIVE AGENT AND BANKS TO ENTER INTO THIS AMENDMENT, BORROWER AND EACH OF THE GUARANTORS HEREBY KNOWINGLY AND UNCONDITIONALLY WAIVES AND FULLY AND FINALLY RELEASES AND FOREVER DISCHARGES THE BANK-RELATED PARTIES FROM ANY AND ALL SETOFFS, COUNTERCLAIMS, ADJUSTMENTS, RECOUPMENTS, CLAIMS, CAUSES OF ACTION, ACTIONS, GROUNDS, CAUSES, DAMAGES, COSTS AND EXPENSES OF EVERY NATURE AND CHARACTER, WHETHER CONTINGENT, NONCONTINGENT, LIQUIDATED, UNLIQUIDATED, FIXED, MATURED, UNMATURED, DISPUTED, UNDISPUTED, LEGAL, EQUITABLE, SECURED OR UNSECURED, KNOWN OR UNKNOWN, ACTUAL OR PUNITIVE, FORESEEN OR UNFORESEEN, DIRECT OR INDIRECT WHICH BORROWER OR ANY OF THE GUARANTORS NOW OWNS AND HOLDS, OR HAS AT ANY TIME HERETOFORE OWNED OR HELD (COLLECTIVELY, THE “RELEASED CLAIMS”), SUCH WAIVER, RELEASE AND DISCHARGE BEING MADE WITH FULL KNOWLEDGE AND UNDERSTANDING OF THE CIRCUMSTANCES AND EFFECTS OF SUCH WAIVER, RELEASE AND DISCHARGE AND AFTER HAVING CONSULTED LEGAL COUNSEL OF ITS OWN CHOOSING WITH RESPECT THERETO.  BORROWER AND EACH OF THE GUARANTORS FURTHER COVENANTS AND AGREES NEVER TO COMMENCE, VOLUNTARILY AID IN ANY WAY, FOMENT, PROSECUTE, OR CAUSE TO BE COMMENCED OR PROSECUTED AGAINST ANY OF THE BANK-RELATED PARTIES ANY ACTION OR OTHER PROCEEDING BASED UPON ANY OF THE RELEASED CLAIMS.  THIS PARAGRAPH IS IN ADDITION TO ANY OTHER RELEASE OF ANY OF THE BANK-RELATED PARTIES BY BORROWER OR ANY OF THE GUARANTORS AND SHALL NOT IN ANY WAY LIMIT ANY OTHER RELEASE, COVENANT NOT TO SUE, OR WAIVER BY BORROWER OR ANY OF THE GUARANTORS IN FAVOR OF ANY OF THE BANK-RELATED PARTIES.

 

(B)                               IN ADDITION TO, AND WITHOUT LIMITATION OF, ANY AND ALL INDEMNITIES PROVIDED IN THE LOAN PAPERS, BORROWER AND EACH OF THE GUARANTORS SHALL AND DO HEREBY, JOINTLY AND SEVERALLY, INDEMNIFY AND HOLD EACH OF THE BANK-RELATED PARTIES HARMLESS FROM AND AGAINST ANY AND ALL CLAIMS, LIABILITY, LOSSES, DAMAGES, CAUSES OF ACTION, SUITS, JUDGMENTS, COSTS, AND EXPENSES, INCLUDING, WITHOUT LIMITATION, ATTORNEYS’ FEES, ARISING OUT OF OR FROM OR RELATED TO ANY OF THE LOAN PAPERS.  IF ANY ACTION, SUIT, OR PROCEEDING IS BROUGHT AGAINST ANY OF THE BANK-RELATED PARTIES, BORROWER AND EACH OF THE GUARANTORS SHALL, AT ADMINISTRATIVE AGENT OR SUCH BANK’S REQUEST, DEFEND THE SAME AT THEIR SOLE COST AND EXPENSE, SUCH COST AND EXPENSE TO BE A JOINT AND SEVERAL LIABILITY OF BORROWER AND EACH OF THE GUARANTORS, BY COUNSEL SELECTED BY BORROWER SUBJECT TO THE REASONABLE APPROVAL OF ADMINISTRATIVE AGENT.  NOTWITHSTANDING ANY PROVISION OF THIS AMENDMENT OR ANY OTHER LOAN PAPER, THIS SECTION SHALL REMAIN IN FULL FORCE AND EFFECT AND SHALL SURVIVE ANY DELIVERY AND

 

9

 

PAYMENT ON THE OBLIGATIONS OWED PURSUANT TO THE CREDIT AGREEMENT, THIS AMENDMENT AND THE OTHER LOAN PAPERS.

 

(C)                               The agreements of Borrower and Guarantors set forth in this Section 6.8 shall survive termination of this Fifth Amendment.

 

6.9                               Acknowledgment of the Borrower and Guarantors.  Borrower and each Guarantor acknowledges and agrees that Administrative Agent and each of the Banks party hereto have executed this Amendment in its sole discretion and without any obligation.  Borrower and each Guarantor further acknowledge and agree that any action taken or not taken by Administrative Agent and Banks prior to, on or after the date hereof shall not constitute a waiver or modification of any terms, covenant or provision of any Loan Paper other than as specified herein or prejudice any rights or remedies other than as specified herein which Administrative Agent or any Bank now has or may have in the future under any Loan Paper, applicable law or otherwise, all of which rights and remedies are expressly reserved by Administrative Agent and Banks.  Borrower and each Guarantor hereby ratifies and confirms its respective obligations under the Loan Papers.

 

6.10                        Loan Paper.  This Amendment is a Loan Paper and is subject to all provisions of the Credit Agreement applicable to Loan Papers, all of which are incorporated in this Amendment by reference the same as if set forth in this Amendment verbatim.

 

IN WITNESS WHEREOF, the parties hereto have caused this Fifth Amendment to be duly executed by their respective authorized officers on the date and year first above written.

 

[Signature Pages to Follow]

 

10

 

	
 
    	
 
    	
BORROWER:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
GEOMET, INC.,
    
	
 
    	
 
    	
a Delaware corporation
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/   Tony Oviedo
    
	
 
    	
 
    	
Name:
    	
Tony   Oviedo
    
	
 
    	
 
    	
Title:
    	
Senior   Vice President, Chief Financial
    
	
 
    	
 
    	
 
    	
Officer   and Assistant Secretary
    

 

[Signature Page]

FIFTH AMENDMENT TO FIFTH AMENDED AND RESTATED CREDIT AGREEMENT

GEOMET, INC.

 

 

	
 
    	
 
    	
ADMINISTRATIVE   AGENT/BANK:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
BANK OF AMERICA, N.A.,
    
	
 
    	
 
    	
as Administrative Agent
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/   Kathleen L. Padilla
    
	
 
    	
 
    	
 
    	
Kathleen   L. Padilla,
    
	
 
    	
 
    	
 
    	
Assistant   Vice President
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
BANK OF AMERICA, N.A.,
    
	
 
    	
 
    	
as a Bank
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/   Kathleen L. Padilla
    
	
 
    	
 
    	
 
    	
Kathleen   L. Padilla,
    
	
 
    	
 
    	
 
    	
Assistant   Vice President
    

 

[Signature Page]

FIFTH AMENDMENT TO FIFTH AMENDED AND RESTATED CREDIT AGREEMENT

GEOMET, INC.

 

 

	
 
    	
 
    	
OTHER   BANKS:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
WELLS   FARGO BANK, N.A.
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/   Rick Hawthorne
    
	
 
    	
 
    	
Name:
    	
Rick   Hawthorne
    
	
 
    	
 
    	
Title:
    	
Director
    

 

[Signature Page]

FIFTH AMENDMENT TO FIFTH AMENDED AND RESTATED CREDIT AGREEMENT

GEOMET, INC.

 

 

	
 
    	
 
    	
BANK   OF SCOTLAND
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/   Stephen Giacolone
    
	
 
    	
 
    	
Name:
    	
Stephen   Giacolone
    
	
 
    	
 
    	
Title:
    	
Assistant   Vice President
    

 

[Signature Page]

FIFTH AMENDMENT TO FIFTH AMENDED AND RESTATED CREDIT AGREEMENT

GEOMET, INC.

 

 

	
 
    	
 
    	
U.S.   BANK NATIONAL ASSOCIATION
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/   William J. Umscheid
    
	
 
    	
 
    	
Name:
    	
William   J. Umscheid
    
	
 
    	
 
    	
Title:
    	
Vice   President
    

 

[Signature Page]

FIFTH AMENDMENT TO FIFTH AMENDED AND RESTATED CREDIT AGREEMENT

GEOMET, INC.

 

 

	
 
    	
 
    	
COMERICA   BANK
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/   Jeffrey M. Parilla
    
	
 
    	
 
    	
Name:
    	
Jeffrey   M. Parilla
    
	
 
    	
 
    	
Title:
    	
Vice   President
    

 

[Signature Page]

FIFTH AMENDMENT TO FIFTH AMENDED AND RESTATED CREDIT AGREEMENT

GEOMET, INC.

 

 

	
 
    	
 
    	
CAPITAL   ONE, NATIONAL ASSOCIATION
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/   Michael Higgins
    
	
 
    	
 
    	
Name:
    	
Michael   Higgins
    
	
 
    	
 
    	
Title:
    	
Vice   President
    

 

[Signature Page]

FIFTH AMENDMENT TO FIFTH AMENDED AND RESTATED CREDIT AGREEMENT

GEOMET, INC.

 

 

The undersigned (i) consents and agrees to this Fifth Amendment and (ii) agrees that the Loan Papers to which it is a party shall remain in full force and effect and shall continue to be the legal, valid and binding obligation of the undersigned, enforceable against it in accordance with its terms.

 

	
 
    	
 
    	
CONSENTED, ACKNOWLEDGED AND AGREED TO BY:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
GEOMET GATHERING COMPANY, LLC,
    
	
 
    	
 
    	
an Alabama limited liability company
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/   Tony Oviedo
    
	
 
    	
 
    	
Name:
    	
Tony   Oviedo
    
	
 
    	
 
    	
Title:
    	
Manager
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
GEOMET OPERATING COMPANY, INC.,
    
	
 
    	
 
    	
an Alabama corporation
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/   Tony Oviedo
    
	
 
    	
 
    	
Name:
    	
Tony   Oviedo
    
	
 
    	
 
    	
Title:
    	
Senior   Vice President, Chief Financial
    
	
 
    	
 
    	
 
    	
Officer   and Assistant Secretary
    

 

[Signature Page]

FIFTH AMENDMENT TO FIFTH AMENDED AND RESTATED CREDIT AGREEMENT

GEOMET, INC.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00216-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00216-of-00352.parquet"}]]