Document:

exh10-3_17154.htm

EXHIBIT 10.3

 

 

SECOND 2011 AMENDMENT TO LOAN AGREEMENT

THIS SECOND 2011 AMENDMENT TO LOAN AGREEMENT, dated as of March 15, 2011 (the "2011 Amendment #2"), is made and entered into between and among GLOG INVESTMENTS, L.L.C., an Oklahoma limited liability company ("Borrower" or "GLOG"), GREYSTONE MANUFACTURING, L.L.C., an Oklahoma limited liability company ("Greystone" and collectively with the Borrower, the "Loan Parties"), and THE F&M BANK & TRUST COMPANY, a state banking corporation (the "Bank").

WITNESSETH:

 

WHEREAS, Loan Parties and the Bank entered into that certain Loan Agreement dated as of March 4, 2005, as previously amended from time to time, including that certain February 2009 Amendment to Loan Agreement dated as of February 16, 2009 and that certain 2011 Amendment to Loan Agreement dated as of even date herewith (collectively, the "Existing Loan Agreement"), pursuant to which the Bank (i) made a certain $5,000.000.00 term loan to Borrower (the "GLOG Commitment") and (ii) made a $6,097,776.21 term loan to Greystone (the "Greystone Commitment"); and

 

WHEREAS, the Borrower desires the Bank to renew, modify, and extend the unpaid balance of the note evidencing the GLOG Commitment in the face principal amount of $3,722,154.67 until an extended final maturity date of March 15, 2014; and

 

WHEREAS, subject to the terms, provisions and conditions hereinafter set forth, the Bank is willing to renew, modify, and extend the existing GLOG Commitment in the principal amount of $3,722,154.67 until an extended final maturity date of March 15, 2014;

 

NOW, THEREFORE, in consideration of the mutual covenants and agreements contained herein, and other good and valuable consideration, receipt of which is acknowledged by the parties hereto, the parties agree to amend the Existing Loan Agreement as follows:

 

1.           Definition.  Any capitalized term used herein (including in the recitals hereto) but not otherwise defined shall have the meaning given to such term in the Existing Loan Agreement.

 

2.           GLOG Commitment.  The existing GLOG Commitment issued by the Bank to GLOG, as Borrower, is hereby modified, extended and renewed in the stated face principal amount of $3,722,154.67 until the extended final maturity date of March 15, 2014.  All of the Indebtedness created pursuant thereto shall be evidenced by that certain replacement Promissory Note (Term Note # 60066) dated as of even date herewith from the Borrower payable to the order of the Bank in the face principal amount of $3,722,154.67 (the "Restated GLOG Note ").  The GLOG Commitment shall be payable in accordance with the terms and provisions of the Restated GLOG Note.  All references in the Existing Loan Agreement to the GLOG Note previously issued by GLOG to the order of the Bank shall hereafter refer to the Restated GLOG Note.

 

  

  

  

3.           Interest Rate.  All amounts outstanding on the Restated GLOG Note shall bear interest at a per annum rate equal to the Base Rate, which in no event shall be less than the then applicable Index Floor Rate or more than the maximum allowed by law.

 

4.           Guaranty.  Borrower will cause the Guarantors under the GLOG Note to acknowledge this 2011 Amendment #2 and ratify the 5.00 MM Guaranty as a continuing guarantee of the Indebtedness under the Restated GLOG Note pursuant to the Guarantors' Acknowledgment and Ratification attached hereto (the "Guarantor Acknowledgment").

 

5.           Ratification.  The remaining terms, provisions and conditions set forth in the Existing Loan Agreement shall remain in full force and effect for all purposes and are incorporated herein by reference. Each of the Loan Parties restates, confirms, adopts and ratifies the warranties, covenants and representations set forth therein and further represents to the Bank that, as of the date hereof, no Default or Event of Default exists under the Existing Loan Agreement, as amended by this 2011 Amendment #2 (collectively, the "Loan Agreement").

 

6.           Conditions Precedent.  The Bank's obligations hereunder are expressly conditioned on Borrower executing and delivering, or causing to be executed and delivered to the Bank the following:

 

	
  

	
(a)

	
this 2011 Amendment #2 and the Restated GLOG Note;

 

	
  

	
(b)

	
a Closing Certificate of the Borrower in form, scope and content acceptable to the Bank; and

 

	
  

	
(c)

	
the Guarantor Acknowledgment.

 

7.           Collateral and Cross Collateralization and Cross Default.  All of the Indebtedness of each of the Loan Parties to the Bank, including as evidenced by the Restated GLOG Note shall be secured in all respects by the Pledged Asset as defined in the Pledge and Security Agreement from Borrower dated as of March 4, 2005 (the "GLOG Pledge Agreement") as well as the Collateral described or defined in the Security Agreement described and defined in the Loan Agreement or any other Loan Document, including such amendments thereto or restatements thereof as may be deemed necessary or appropriate by the Bank.  Each of the Loan Parties acknowledge and stipulate that the Pledged Asset described and defined in the GLOG Pledge Agreement as well as the Collateral described and defined in the Loan Agreement and the Security Agreement and all items and types of collateral, whether real property, personal property or otherwise, granted from time to time, including, without limitation, now in existence, by any of Greystone Real Estate, L.L.C., GLOG, and/or Greystone, as collateral or security for any and all debts, liabilities and obligations of any thereof, whether evidenced by promissory notes or otherwise, shall be and hereby are cross collateralized with each other to the fullest and maximum extent permitted by applicable law and each thereof is cross-defaulted with each of the other notes, security agreements, pledge agreements, mortgages, guaranties and loan agreements thereof for all purposes and in all respects.  Notwithstanding the foregoing provisions, if and to the extent the Maximum Funded Debt to EBITDA ratio of Section 6.11 of the Loan Agreement is reduced to 4.0 to 1.0 for two (2) consecutive fiscal quarter ends, the Bank agrees to release the subordinated and junior mortgage liens against the respective properties leased by Greystone Real Estate LLC, as landlord, to Greystone, as tenant.

 

  

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8.           CONSENT TO JURISDICTION AND VENUE.  EACH OF THE LOAN PARTIES HEREBY CONSENTS TO THE JURISDICTION OF ANY OF THE LOCAL, STATE, AND FEDERAL COURTS LOCATED WITHIN TULSA COUNTY, OKLAHOMA, AND WAIVES ANY OBJECTION WHICH ANY LOAN PARTY MAY HAVE BASED ON IMPROPER VENUE OR FORUM NON CONVENIENS TO THE CONDUCT OF ANY PROCEEDING IN ANY SUCH COURT AND WAIVES PERSONAL SERVICE OR ANY AND ALL PROCESS UPON IT, AND CONSENTS THAT ALL SUCH SERVICE OF PROCESS BE MADE BY MAIL OR MESSENGER DIRECTED TO IT AT THE ADDRESS SET FORTH IN THE EXISTING LOAN AGREEMENT AND THAT SERVICE SO MADE SHALL BE DEEMED TO BE COMPLETED UPON THE EARLIER OF ACTUAL RECEIPT OR THREE (3) BUSINESS DAYS AFTER MAILED OR DELIVERED BY MESSENGER.

9.           Fees and Expenses.  The Loan Parties agree to pay to the Bank on demand all costs, fees and expenses (including, without limitation, reasonable attorneys fees and legal expenses) incurred or accrued by the Bank in connection with the preparation, execution, closing, delivery, and administration of this 2011 Amendment #2 (including the Existing Loan Agreement) and the other Loan Documents, or any amendment, waiver, consent or modification thereto or thereof, or any enforcement thereof.  In any action to enforce or construe the provisions of the Loan Agreement or any of the Loan Documents, the prevailing party shall be entitled to recover its reasonable attorneys' fees and all costs and expenses related thereto.

 

10.           WAIVER OF JURY TRIAL.  EACH OF THE LOAN PARTIES FULLY, VOLUNTARILY AND EXPRESSLY WAIVES ANY RIGHT TO A TRIAL BY JURY IN ANY ACTION OR PROCEEDING TO ENFORCE OR DEFEND ANY RIGHTS UNDER THIS 2011 AMENDMENT #2, THE CONSOLIDATED TERM NOTE, RESTATED GLOG NOTE, THE LOAN AGREEMENT OR UNDER ANY AMENDMENT, ANY SECURITY INSTRUMENT, OR OTHER INSTRUMENT, DOCUMENT OR AGREEMENT DELIVERED (OR WHICH MAY IN THE FUTURE BE DELIVERED) IN CONNECTION HEREWITH OR ARISING FROM ANY BANKING RELATIONSHIP EXISTING IN CONNECTION WITH THE LOAN AGREEMENT.  EACH OF THE LOAN PARTIES AGREES THAT ANY SUCH ACTION OR PROCEEDING SHALL BE TRIED BEFORE A COURT AND NOT BEFORE A JURY.

 

11.           Counterparts.  This 2011 Amendment #2 may be executed in multiple counterparts, each of which, when so executed, shall constitute an original copy.

 

 

 

[Signature Pages Follow]

 

  

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IN WITNESS WHEREOF, each of the Loan Parties has caused this 2011 Amendment #2 to be delivered to Bank in Tulsa, Oklahoma, by its undersigned duly authorized manager thereof effective for all purposes as of the day and year first above written.

 

GREYSTONE MANUFACTURING, L.L.C., an Oklahoma limited liability company

 

By  /s/ Warren F. Kruger                     

Warren F. Kruger, manager

 

	
  

	
"Greystone"

 

 

 

GLOG INVESTMENT, L.L.C.

 

an Oklahoma limited liability company

 

By  /s/ Robert B. Rosene, Jr.                       

	
  

	
Robert B. Rosene, Jr., Manager

 

	
  

	
"GLOG"

 

 

The undersigned hereby approves and accepts the cross pledge and cross default provisions of paragraph 7 above.

 

GREYSTONE REAL ESTATE, L.L.C.,

 

an Oklahoma limited liability company

 

By  /s/ Warren F. Kruger                     

	
  

	
Warren F. Kruger, manager

 

 

 

  

  

  

THE F&M BANK & TRUST COMPANY, a state banking corporation

 

By   /s/ Craig Huston                                    

	
  

	
Craig Huston, Senior Executive President

 

 

	
  

	
"Bank"

 

	  	  	  

  

  

  

GUARANTORS' ACKNOWLEDGMENT AND RATIFICATION

 

The foregoing Second 2011 Amendment to Loan Agreement dated effective as of March 15, 2011 (the "2011 Amendment #2"), is hereby acknowledged, approved, ratified, consented and agreed to by the undersigned Guarantors, and the existing Warren Kruger, Robert Rosene, Marshall Cogan and Robert Nelson Limited Guaranty ("5.00 MM Guaranty") dated as of March 15, 2011 is hereby ratified, confirmed and continued in full force and effect by Warren F. Kruger and Robert B. Rosene, Jr., and each of them, as if restated in full herein.  Robert B. Rosene, Jr. further ratifies, confirms and continues in full force and effect as if restated in full herein that certain Pledge and Security Agreement dated as of January 31, 2007 and confirms, grants and re-grants, pledges and re-pledges to the Bank a continuing and continuous, first and prior lien against, security interest in and pledge of the Pledged Assets described therein.

 

So executed and delivered to the Bank in Tulsa, Oklahoma, by the undersigned Guarantors effective as of March ___, 2011.

 

 

	 	/s/ Warren F. Kruger	 	 
	 	
Warren F. Kruger, individually

	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	/s/ Robert B. Rosene, Jr.	 	 
	 	
Robert B. Rosene, Jr., individuallyexh10-4_17154.htm

EXHIBIT 10.4

 

 

PROMISSORY NOTE

 

(Term Note # 60066)

 

	$3,722,154.67 	
March 15, 2011

	 	
Tulsa, Oklahoma

 

FOR VALUE RECEIVED, GLOG INVESTMENT, L.L.C., an Oklahoma limited liability company ("Borrower") hereby promises to pay to the order of THE F&M BANK & TRUST COMPANY, a state banking corporation (the "Bank"), at the Bank's principal offices in Tulsa, Oklahoma, in lawful money of the United States of America, the principal sum of THREE MILLION SEVEN HUNDRED TWENTY TWO THOUSAND ONE HUNDRED FIFTY-FOUR AND 67/100 DOLLARS ($3,722,154.67), in weekly installments of principal in the amount of $10,225.70 each, due on Friday of each week, commencing March 18, 2011, together with interest thereon from the date hereof on the unpaid balance of principal from time to time outstanding and on any past due interest, including accrued but unpaid interest from the Prior Term Note (as hereinafter defined), at the rate of interest hereinafter specified, which interest is due and payable as it accrues on the same day weekly principal installments are due and payable, commencing March 18, 2011, and at final maturity on March 15, 2014.  All unpaid interest and principal shall be due and payable at final maturity on March 15, 2014.

 

The unpaid principal amount hereof shall accrue interest at a variable per annum rate equal from day to day to the Bank's Base Rate (as herein defined), but in no event shall this Note accrue interest at a per annum contract rate (not Default Rate) less than four and one-half percentage points (4.50%) per annum or greater than the maximum rate allowable by applicable law.  Any change in the Base Rate shall be effective with respect to this Note as of the date upon which any change in such rate of interest shall occur.  Interest shall be computed on the basis of a year of 360 days but assessed for the actual number of days elapsed.

 

As used herein, "Base Rate" means a variable annual rate of interest established from time to time by the Bank and announced from time to time by the Bank and/or published on its website as the "F&M Prime Rate."  The Base Rate may be adjusted throughout the term of the loan or loans governed or evidenced hereby, and any change in the Base Rate due to a change in such announced and/or published rate shall be effective on the day of the announced changed in such Base Rate.  Such rate shall not necessarily be the Bank’s "best" or lowest rate and the Bank may make loans from time to time based or priced on other rates or indices.  Should the Base Rate become unavailable during the term of the loans evidenced by this Note or should the Bank otherwise cease to publish or announce a prime rate, or should it be merged, consolidated, liquidated or dissolved in such a manner that it loses its separate corporate or banking identity, then the Base Rate shall be a substitute index selected and designated by the Bank and concerning which the Borrower is notified by the Bank.

 

This Note is an extension and modification of the GLOG Note referred to in that certain Loan Agreement dated as of March 4, 2005, between and among, inter alia, Borrower, GLOG Investment, L.L.C. and the Bank, as amended from time to time including, without limitation by the 2011 Amendment thereto and the Second 2011 Amendment thereto each dated as of even date herewith (as amended, and as the same may be hereafter amended, restated, supplemented or otherwise modified from time to time, collectively the "Loan Agreement").  Capitalized terms used in this Note but not defined herein shall have the respective meanings assigned to them in the Loan Agreement.

 

  

  

  

This Note is an extension and modification of the GLOG Note issued pursuant to the Loan Agreement and is entitled to the benefits provided for in the Loan Agreement, the Loan Documents, and the Pledge and Security Agreement from Borrower dated as of March 4, 2005 (the "GLOG Pledge Agreement") securing this Note to the fullest extent permitted by applicable law and the security interests granted in such GLOG Pledge Agreement and other applicable Loan Documents between, inter alia, Borrower, as debtor, and the Bank, as secured party, are hereby granted, regranted, ratified, confirmed and continued in full force and effect for all purposes by Borrower in favor of the Bank in all respects as if fully restated herein verbatim.

 

The Loan Agreement provides for the acceleration of the maturity of this Note upon the occurrence of certain events, for the voluntary prepayment hereof upon the terms and conditions specified therein, cross default and collateralization with the other Notes therein described and defined including, without limitation, the $6,097,776.21 Promissory Note (#60071) from Greystone Manufacturing, L.L.C. dated as of even date herewith (as each or either thereof may have been or hereafter be extended, renewed, rearranged, replaced, substituted, consolidated or otherwise modified from time to time) and other terms, provisions, conditions and limitations relevant to this Note, including without limitation, application of the Default Rate.

 

Upon the occurrence of any Event of Default under the Loan Agreement, the Pledge Agreement or any of the other Loan Documents, the Bank shall have the right, immediately and without further action by it, to set off against this Note and the other Notes all money owed by the Bank in any capacity to the Borrower or any other person who is or might be liable for payment hereof, whether or not due, and also to set off against all other liabilities of the Borrower to the Bank all money owed by the Bank in any capacity to the Borrower; and the Bank shall be deemed to have exercised such right of set off and to have made a charge against such money immediately upon the occurrence of such Event of Default even though such charge is made or entered into the books of Bank subsequently thereto.

 

Should the indebtedness represented by this Note or any part thereof be collected at law or in equity or in bankruptcy, receivership or other court proceedings or this Note be placed in the hands of attorneys for collection after default, the Borrower agrees to pay hereunder, in addition to the principal and interest due and payable hereon, reasonable attorneys' fees, court costs and other collection expenses incurred by the holder hereof.

 

The Borrower hereby waives presentment for payment, demand, notice of nonpayment, protest and notice of protest with respect to any payment hereunder and agrees to any extension of time with respect to any payment due hereunder, to any substitution or release of the security or collateral described in the Loan Agreement or the Security Instruments and to the addition or release of any party liable hereunder.  No delay on the part of the holder hereof in exercising any rights hereunder shall operate as a waiver of such rights.

 

  

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THIS NOTE SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF OKLAHOMA.  THIS NOTE IS CROSS DEFAULTED AND CROSS COLLATERALIZED WITH THE OTHER NOTES ISSUED FROM TIME TO TIME BY THE BORROWER TO THE BANK AND/OR OTHER NOTES ISSUED PURSUANT TO THE LOAN AGREEMENT.

 

This Note is an extension and modification of that certain Glog Investment, L.L.C. Term Note from Borrower payable to the order of the Bank and dated February 16, 2009, in the original principal amount of $3,833,000.00 (the "Prior Note") and this Note supersedes and replaces the Prior Note.

 

The provisions of the Loan Agreement concerning jurisdiction, venue and waiver of jury trial are incorporated herein by reference and made a part hereof for all purposes to the fullest extent permitted by applicable law with the same force and effect as it fully set forth herein and repeated herein verbatim.

 

This Note (Term Note # 60066) is executed and delivered to the order of the Bank by the undersigned duly authorized manager of the Borrower, in Tulsa, Oklahoma, pursuant to all necessary consents, actions and approvals of the members of the Borrower.

 

BORROWER:

 

GLOG INVESTMENT, L.L.C.,

 

an Oklahoma limited liability company

 

By:  /s/  Robert B. Rosene, Jr.                        

                                                                                                        Robert B. Rosene, Jr., Manager

 

Due:  March 15, 2014

  

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