Document:

exv10w3

 

Exhibit 10.3

$10,000,000.00 Multiple Advance Term Note

dated March 14, 2005

THIRD MODIFICATION AGREEMENT

     This Third Modification Agreement (“Third Modification Agreement”) is effective as of
August 28, 2006. The parties to the Third Modification Agreement are Natural Gas Services Group,
Inc. (“Borrower”) and Western National Bank (“Lender”).

RECITALS

     On March 14, 2005, Borrower executed and delivered to Lender that certain Multiple Advance
Term Promissory Note in the original principal sum of $10,000,000.00, bearing interest at the rate
stated therein, with a stated final maturity date of April 1, 2011, as modified in Modification
Agreement dated May 1, 2005, and further modified in Second Modification Agreement dated March 24,
2006 (the “Note”). The Note was made pursuant to that certain Fourth Amended and Restated
Loan Agreement dated March 14, 2005, as modified in that certain First Modification to Fourth
Amended and Restated Loan Agreement dated May 1, 2005; and further amended and restated in that
certain Fifth Amended and Restated Loan Agreement dated September 26, 2005; and further amended and
restated in that certain Sixth amended and Restated Loan Agreement dated January 3, 2006 (the
“Loan Agreement”). All liens, security interests and assignments securing the Note are
collectively called the “Liens”. Terms defined in the Note or the Loan Agreement and not
otherwise defined herein shall have the same meanings here as in those documents.

     At Borrower’s request, Borrower and Lender have agreed to enter into this Third Modification
Agreement to modify the interest provisions of the Note and to ratify the Liens.

AGREEMENT

1. Modification of Interest Provisions of the Note. In lieu of the following provisions which were
contained in the first paragraph of the Note:

“...at a rate per annum which shall from day to day be equal to the lesser of (a) a
rate per annum (the “Established Rate”) equal to the Prime Rate in effect
from day to day, or (b) the Highest Lawful Rate, in each case calculated on the
basis of actual days elapsed, but computed as if each calendar year consisted of 360
days.”

such provisions of the Note are changed to read in their entirety as follows:

“...at a rate per annum which shall be equal to the lesser of (a) seven and one-half
percent (7.50%) (the “Established Rate”), or (b) the Highest Lawful Rate, in
each case calculated on the basis of actual days elapsed, but computed as if each
calendar year consisted of 360 days.”

2. Ratification of Liens. Borrower and Lender further agree that all Liens securing the Note
shall continue and carry forward until the Note and all indebtedness evidenced thereby is paid in
full. Borrower further agrees that such liens are hereby ratified and affirmed as valid and
subsisting against the collateral described therein, and that this Third Modification Agreement
shall in no manner vitiate, affect or impair the Note or the Liens

1

 

(except as expressly modified in this Third Modification Agreement) and that such Liens shall not
in any manner be waived, released, altered or modified.

	 	3.	 	Miscellaneous.
	 
	 	(a)	 	As modified hereby, the provisions of the Note and the Liens shall continue in
full force and effect, and Borrower acknowledges and affirms its liability to Lender
thereunder. In the event of an inconsistency between this Third Modification Agreement
and the terms of the Note or of the Liens, this Third Modification Agreement shall
govern.
	 
	 	(b)	 	Borrower hereby agrees to pay all costs and expenses incurred by Lender in
connection with the execution and administration of this Third Modification Agreement.
	 
	 	(c)	 	Any default by Borrower in the performance of its obligations herein contained
shall constitute a default under the Note and the Liens and shall allow Lender to
exercise any or all of its remedies set forth in such Note and Liens or at law or in
equity.
	 
	 	(d)	 	Lender does not, by its execution of this Third Modification Agreement, waive
any rights it may have against any person not a party hereto.
	 
	 	(e)	 	All terms, provisions, covenants, agreements, and conditions of the Note and
the Liens are unchanged, except as provided herein. Borrower agrees that this Third
Modification Agreement and all of the covenants and agreements contained herein shall
be binding upon Borrower and shall inure to the benefit of Lender and each of their
respective heirs, executors, legal representatives, successors, and permitted assigns.

THIS THIRD MODIFICATION AGREEMENT REPRESENTS THE FINAL AGREEMENT BETWEEN 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 BETWEEN THE
PARTIES.

	 	 	 	 	 	 	 
	 	 	Borrower:	 	 
	 

	 	 	 	 	 	 
	 	 	Natural Gas Services Group, Inc.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Stephen C. Taylor	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Stephen C. Taylor, President	 	 
	 	 	Lender:	 	 
	 
	 	 	 	 	 	 
	 	 	Western National Bank	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Scott A. Lovett	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Scott A. Lovett, Executive Vice President	 	 

2

 

	 	 	 	 	 
	STATE OF TEXAS

	 	§
	 	 
	 

	 	§	 	 
	COUNTY OF MIDLAND

	 	§	 	 

     This instrument was acknowledged before me on September 1, 2006, by Stephen C. Taylor,
President of Natural Gas Services Group, Inc., a Colorado corporation, on behalf of said
corporation.

	 	 	 	 	 
	 	 	 
	 	/s/ Lisa D. Taylor
 	 
	 	Notary Public, State of Texas 	 
	 	 	 
	 

	 	 	 	 	 
	STATE OF TEXAS

	 	§
	 	 
	 

	 	§	 	 
	COUNTY OF MIDLAND

	 	§	 	 

     This instrument was acknowledged before me on September 1, 2006, by Scott A. Lovett, Executive
Vice President of Western National Bank, a national banking association, on behalf of said
association.

	 	 	 	 	 
	 	 	 
	 	/s/ Lisa D. Taylor
 	 
	 	Notary Public, State of Texas 	 
	 	 	 
	 

3exv10w4

 

Exhibit 10.4

$10,000,000 Advance Note

November 3, 2003

FOURTH MODIFICATION AGREEMENT

     This Fourth Modification Agreement (“Fourth Modification Agreement”) is effective as
of August 28, 2006. The parties to the Fourth Modification Agreement are Natural Gas Services
Group, Inc. (“Borrower”) and Western National Bank (“Lender”).

RECITALS

     On November 3, 2003, Borrower executed and delivered to Lender that certain Advancing Line of
Credit Promissory Note in the original principal sum of $10,000,000.00, bearing interest at the
rate stated therein, with a stated final maturity date of November 15, 2009, as modified in
Modification Agreement dated December 15, 2004, and further modified in Second Modification
Agreement dated May 1, 2005, and further modified in Third Modification Agreement dated March 24,
2006 (the “Note”). The Note was made pursuant to that certain Second Amended and Restated
Loan Agreement dated November 3, 2003, as amended and restated in that certain Third Amended and
Restated Loan Agreement dated January 3, 2005, and further amended and restated in that certain
Fourth Amended and Restated Loan Agreement dated March 14, 2005, as modified in that certain First
Modification to Fourth Amended and Restated Loan Agreement dated May 1, 2005; and further amended
and restated in that certain Fifth Amended and Restated Loan Agreement dated September 26, 2005;
and further amended and restated in that certain Sixth Amended and Restated Loan Agreement dated
January 3, 2006 (the “Loan Agreement”). All liens, security interests and assignments
securing the Note are collectively called the “Liens”. Terms defined in the Note or the
Loan Agreement and not otherwise defined herein shall have the same meanings here as in those
documents.

     At Borrower’s request, Borrower and Lender have now agreed to enter into this Fourth
Modification Agreement to modify the interest provisions of the Note and to ratify the Liens.

AGREEMENT

     1. Modification of Interest Provision of the Note. In lieu of the following provision which
was contained in the Note:

“...at a rate per annum which shall from day to day be equal to the lesser of (a) a
rate per annum (the “Established Rate”) equal to the Prime Rate in effect
from day to day, or (b) the Highest Lawful Rate, in each case calculated on the
basis of actual days elapsed, but computed as if each calendar year consisted of 360
days.”

such provision of the Note is changed to read in its entirety as follows:

“...at a rate per annum equal to the lesser of (a) seven and one-half percent
(7.50%) (the “Established Rate”), or (b) the Highest Lawful Rate, in each
case calculated on the basis of actual days elapsed, but computed as if each
calendar year consisted of 360 days.”

     2. Ratification of Liens. Borrower and Lender further agree that all Liens securing the Note
shall continue and carry forward until the Note and all indebtedness

1

 

evidenced thereby is paid in full. Borrower further agrees that such Liens are hereby ratified and
affirmed as valid and subsisting against the collateral described therein, and that this Fourth
Modification Agreement shall in no manner vitiate, affect or impair the Note or the Liens (except
as expressly modified in this Fourth Modification Agreement) and that such Liens shall not in any
manner be waived, released, altered or modified.

	 	3.	 	Miscellaneous.
	 
	 	(a)	 	As modified hereby, the provisions of the Note and the Liens shall continue in
full force and effect, and Borrower acknowledges and affirms its liability to Lender
thereunder. In the event of an inconsistency between this Fourth Modification
Agreement and the terms of the Note or of the Liens, this Fourth Modification Agreement
shall govern.
	 
	 	(b)	 	Borrower hereby agrees to pay all costs and expenses incurred by Lender in
connection with the execution and administration of this Fourth Modification Agreement.
	 
	 	(c)	 	Any default by Borrower in the performance of its obligations herein contained
shall constitute a default under the Note and the Liens and shall allow Lender to
exercise any or all of its remedies set forth in such Note and Liens or at law or in
equity.
	 
	 	(d)	 	Lender does not, by its execution of this Fourth Modification Agreement, waive
any rights it may have against any person not a party hereto.
	 
	 	(e)	 	All terms, provisions, covenants, agreements, and conditions of the Note and
the Liens are unchanged, except as provided herein. Borrower agrees that this Fourth
Modification Agreement and all of the covenants and agreements contained herein shall
be binding upon Borrower and shall inure to the benefit of Lender and each of their
respective heirs, executors, legal representatives, successors, and permitted assigns.

	 	 	 	THIS FOURTH MODIFICATION AGREEMENT REPRESENTS THE FINAL AGREEMENT BETWEEN 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
BETWEEN THE PARTIES.

	 	 	 	 	 
	 	 	Borrower:
	 
	 	 	 	 
	 	 	Natural Gas Services Group, Inc.
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Stephen C. Taylor
	 

	 	 	 	 
	 

	 	 	 	Stephen C. Taylor, President
	 
	 	 	 	 
	 	 	Lender:
	 
	 	 	 	 
	 	 	Western National Bank
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Scott A. Lovett
	 

	 	 	 	 
	 

	 	 	 	Scott A. Lovett, Executive Vice President

2

 

	 	 	 	 	 
	STATE OF TEXAS

	 	§	 	 
	 

	 	§
	 	 
	COUNTY OF MIDLAND

	 	§	 	 

     This instrument was acknowledged before me on September 1, 2006, by Stephen C. Taylor,
President of Natural Gas Services Group, Inc., a Colorado corporation, on behalf of said
corporation.

	 	 	 	 	 
	 

	 	 	 	/s/ Lisa D. Taylor
	 

	 	 	 	 
	 

	 	 	 	Notary Public, State of Texas

	 	 	 	 	 
	STATE OF TEXAS

	 	§	 	 
	 

	 	§
	 	 
	COUNTY OF MIDLAND

	 	§	 	 

     This instrument was acknowledged before me on September 1, 2006, by Scott A. Lovett, Executive
Vice President of Western National Bank, a national banking association, on behalf of said
association.

	 	 	 	 	 
	 

	 	 	 	/s/ Lisa D. Taylor
	 

	 	 	 	 
	 

	 	 	 	Notary Public, State of Texas

3

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