Document:

exv10w1

 

FOURTH AMENDMENT AND WAIVER

THIS FOURTH AMENDMENT AND WAIVER (this “Amendment”) dated as of November 8, 2005 to
the Credit Agreement referenced below is by and among C&D TECHNOLOGIES, INC., a Delaware
corporation (the “Parent”), C&D INTERNATIONAL INVESTMENT HOLDINGS INC., a Delaware
corporation (“International” and together with the Parent, the “Borrowers”), the
Guarantors identified on the signature pages hereto, the Lenders identified on the signature pages
hereto and BANK OF AMERICA, N.A., as Administrative Agent.

W I T N E S S E T H

WHEREAS, a $200 million revolving credit facility has been extended to the Borrowers pursuant
to the Amended and Restated Credit Agreement (as amended, modified and supplemented, the
“Credit Agreement”) dated as of June 30, 2004 among the Borrowers, the Guarantors
identified therein, the Lenders identified therein and the Administrative Agent; and

WHEREAS, the Parent has requested a waiver and certain modifications to the Credit Agreement
and the Required Lenders have agreed to the requested waiver and modifications on the terms set
forth herein.

NOW, THEREFORE, IN CONSIDERATION of the premises and other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

1.   Defined Terms. Capitalized terms used herein but not otherwise defined herein
shall have the meanings provided to such terms in the Credit Agreement.

2.   Waiver. The Required Lenders hereby waive any Default or Event of Default arising
solely from the Borrowers’ failure to comply with Section 8.11 of the Credit Agreement for the
fiscal quarter ended on or about October 31, 2005. This waiver is a one-time waiver and shall not
be deemed to modify or affect the obligations of the Borrowers and the Guarantors to comply with
each and every other obligation under the Credit Agreement and the other Loan Documents from and
after the date hereof.

3.   Amendments. The Credit Agreement is amended in the following respects:

3.1  Notwithstanding anything in the Credit Agreement or any other Loan Document to the
contrary, during the period from the date hereof through December 31, 2005, the Borrowers shall not
request, and the Lenders shall be under no obligation to make, Credit Extensions in an aggregate
principal amount in excess of the sum of (i) the Outstanding Amount of all Loans and Letters of
Credit on the date hereof plus (ii) $20,000,000 minus (iii) mandatory prepayments
on Loans and Cash Collateralization of Letters of Credit made pursuant to Section 2.05(b)(ii) of
the Credit Agreement.

 

 

3.2  The following definitions are added to Section 1.01 to read as follows:

“Debt Issuance” means the issuance by the Parent or any Subsidiary of any
Indebtedness pursuant to Section 8.03(k) or Section 8.03(m) or any
Indebtedness that it not permitted under Section 8.03.

“Equity Issuance” means any issuance by the Parent or any Subsidiary to any
Person of its Capital Stock, other than (a) any issuance of its Equity Interests
pursuant to the exercise of options or warrants, (b) any issuance of its Equity
Interests pursuant to the conversion of any debt securities to equity or the
conversion of any class of equity securities to any other class of equity securities,
(c) any issuance of options or warrants relating to its Capital Stock, and (d) any
issuance by the Parent of its Capital Stock as consideration for a Permitted
Acquisition.

3.3  The definitions of “Net Cash Proceeds” and “Subordinated Indebtedness” in Section 1.01
are amended to read as follows:

“Net Cash Proceeds” means the aggregate cash or Cash Equivalents proceeds
received by the Parent or any Subsidiary in respect of any Debt Issuance or Equity
Issuance, net of (a) direct costs incurred in connection therewith and with any
concurrent or prior financing (including, without limitation, legal, accounting and
investment banking fees, and sales commissions) and (b) taxes paid or payable as a
result thereof; it being understood that “Net Cash Proceeds” shall include, without
limitation, any cash or Cash Equivalents received upon the sale or other disposition
of any non-cash consideration received by the Parent or any Subsidiary in any Debt
Issuance or Equity Issuance.

“Subordinated Indebtedness” means any Indebtedness of the Parent or any
Subsidiary that by its terms is expressly subordinated to the Obligations in a manner
and to an extent satisfactory to the Administrative Agent.

3.4  In the definition of “Excluded Property” in Section 1.01 the “and” at the end of clause
(d) is deleted, the “.” at the end of clause (e) is replaced with “and”, and a new clause
(f) is added thereto to read as follows:

(f) any real property located in the state of Georgia unless requested by the
Administrative Agent or the Required Lenders.

3.5  Section 2.05(b)(ii) is amended to read as follows:

(ii) Immediately upon receipt by the Parent or any Subsidiary of the Net Cash
Proceeds of any Debt Issuance or any Equity Issuance, the Parent shall prepay the
Loans and/or Cash Collateralize the L/C Obligations (as provided in clause (iii)
below) in an aggregate amount equal to one hundred percent (100%) of such Net Cash
Proceeds.

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3.6  A new Section 7.15 is added to read as follows:

7.15 Debt and/or Equity Issuance

Cause the Parent to consummate Debt Issuances and/or Equity Issuances on or before
December 31, 2005 that result in Net Cash Proceeds in an aggregate amount sufficient
to repay the Obligations in full.

3.7  In Section 8.01 the “and” at the end of clause (o) is deleted, the “.” at the end of
clause (p) is replaced with “; and”, and a new clause (q) is added thereto to read as
follows:

(q) UCC-1 financing statements pre-filed by a Person that intends to issue secured
Indebtedness to the Parent or any of its Subsidiaries, provided that such UCC-1
financing statements do not relate to any outstanding Liens or Indebtedness.

3.8  In clauses (c) and (g) of Section 8.03, the phrase “and Section 8.03(k)” is deleted.

3.9  Section 8.03(k) is amended to read as follows:

other unsecured Indebtedness, provided that the terms and conditions thereof
are reasonably acceptable to the Administrative Agent;

3.10  Section 8.03(m) is amended to read as follows:

(m) Subordinated Indebtedness.

3.11  Clause (v) of Section 8.09 is amended to read as follows:

(v) any document or instrument governing Subordinated Indebtedness or unsecured
Indebtedness issued pursuant to Section 8.03(k).

3.12  Section 9.01(b)(ii) is amended to read as follows:

(ii) Any Loan Party fails to perform or observe any term, covenant or agreement
contained in any of Section 7.05(a), 7.11, 7.15 or Article
VIII; or

4.   Conditions Precedent. This Amendment shall become effective as of the date hereof
upon satisfaction of each of the following conditions precedent:

(a) receipt by the Administrative Agent of counterparts of this Amendment executed by
the Loan Parties and the Required Lenders;

(b) payment by the Borrower to the Administrative Agent, for the account of each Lender
(including Bank of America) that approves this Amendment, of an amendment fee in

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an amount equal to five basis points (0.05%) on each such Lender’s Revolving
Commitment; and

(c) payment by the Borrower of all other reasonable fees and expenses owing to the
Administrative Agent and its Affiliates in connection with this Amendment.

5. No Other Changes. Except as modified hereby, all of the terms and provisions of
the Loan Documents (including schedules and exhibits thereto) shall remain in full force and
effect.

6. Reaffirmation of Representations and Warranties under Loan Documents. After giving
effect to this Amendment, each Loan Party represents and warrants that each representation and
warranty set forth in the Loan Documents is true and correct in all material respects as of the
date hereof (except those that expressly relate to an earlier period).

7. Reaffirmation of Guaranty. Each Loan Party (i) acknowledges and agrees to all of
the terms and conditions of this Amendment, (ii) affirms all of its obligations under the Loan
Documents and (iii) agrees that this Amendment and all documents executed in connection herewith do
not operate to reduce or discharge its obligations under the Loan Documents.

8. Reaffirmation of Security Interests. Each Loan Party (i) affirms that each of the
Liens granted in or pursuant to the Loan Documents is valid and subsisting and (ii) agrees that
this Amendment shall in no manner impair or otherwise adversely affect any of the Liens granted in
or pursuant to the Loan Documents.

9. Counterparts. This Amendment may be executed in any number of counterparts, each
of which when so executed and delivered shall be deemed an original and it shall not be necessary
in making proof of this Amendment to produce or account for more than one such counterpart.

10. Governing Law. This Amendment shall be deemed to be a contract made under, and
for all purposes shall be construed in accordance with, the laws of the State of New York.

[Signature Pages Follow]

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IN WITNESS WHEREOF, each of the parties hereto has caused a counterpart of this Fourth
Amendment and Waiver to be duly executed and delivered as of the date first above written.

	 	 	 	 	 
	PARENT:	C&D TECHNOLOGIES, INC., a Delaware corporation

 	 
	 	By:  	/s/ Stephen E. Markert, Jr.
 	 
	 	 	Name:  	Stephen E. Markert, Jr. 	 
	 	 	Title:  	Vice President and Chief Financial Officer 	 
	 
	INTERNATIONAL:	C&D INTERNATIONAL INVESTMENT HOLDINGS INC.,

a Delaware corporation

 	 
	 	By:  	/s/ Robert T. Marley
 	 
	 	 	Name:  	Robert T. Marley 	 
	 	 	Title:  	Vice President and Treasurer 	 
	 
	GUARANTORS:	C&D CHARTER HOLDINGS, INC., a Delaware corporation

C&D TECHNOLOGIES (DATEL), INC., a Delaware corporation

C&D DYNAMO CORP., a Delaware corporation

DYNAMO ACQUISITION CORP., a Delaware corporation

 	 
	 	By:  	/s/ Robert T. Marley
 	 
	 	 	Name:  	Robert T. Marley 	 
	 	 	Title:  	Vice President and Treasurer of each foregoing Guarantor 	 
	 
	 	C&D TECHNOLOGIES (CPS) LLC, a Delaware limited liability company

 	 
	 	By:  	/s/ Robert T. Marley
 	 
	 	 	Name:  	Robert T. Marley 	 
	 	 	Title:  	Treasurer 	 
	 
	 	DATEL HOLDING CORPORATION, a Delaware corporation

 	 
	 	By:  	/s/ Robert T. Marley
 	 
	 	 	Name:  	Robert T. Marley 	 
	 	 	Title:  	Treasurer 	 
	 

[SIGNATURE PAGES CONTINUE]

 

 

	 	 	 	 	 
	ADMINISTRATIVE

AGENT:	
BANK OF AMERICA, N.A., as Administrative Agent	 
	 
	 	By:  	/s/ Michael Brashler
 	 
	 	 	Name:  	Michael Brashler 	 
	 	 	Title:  	Vice President 	 
	 
	LENDERS:	BANK OF AMERICA, N.A., as a Lender, L/C Issuer and Swing Line Lender

 	 
	 	By:  	                    /s/ Mary Giermek
 	 
	 	 	Name:  	Mary Giermek 	 
	 	 	Title:  	Senior Vice President 	 
	 
	 	LASALLE BANK NATIONAL ASSOCIATION

 	 
	 	By:  	/s/ Dusko Marinoviæ
 	 
	 	 	Name:  	Dusko Marinoviæ 	 
	 	 	Title:  	Vice President 	 
	 
	 	WACHOVIA BANK, NATIONAL ASSOCIATION

 	 
	 	By:  	/s/ Patrick D. Finn
 	 
	 	 	Name:  	Patrick D. Finn 	 
	 	 	Title:  	Managing Director 	 
	 
	 	THE BANK OF NEW YORK

 	 
	 	By:  	/s/ Frank S. Bridges
 	 
	 	 	Name:  	Frank S. Bridges 	 
	 	 	Title:  	Vice President 	 
	 
	 	M&T BANK

 	 
	 	By:  	/s/ Joshua C. Becker
 	 
	 	 	Name:  	Joshua C. Becker 	 
	 	 	Title:  	Assistant Vice President 	 
	 
	 	PNC BANK, NATIONAL ASSOCIATION

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

[SIGNATURE PAGES CONTINUE]

2

 

	 	 	 	 	 
	 	CITIZENS BANK

 	 
	 	By:  	/s/ Mark Torie
 	 
	 	 	Name:  	Mark Torie 	 
	 	 	Title:  	Senior Vice President 	 
	 
	 	COMERICA BANK

 	 
	 	By:  	/s/ Richard C. Hampson
 	 
	 	 	Name:  	Richard C. Hampson 	 
	 	 	Title:  	Vice President 	 
	 
	 	CALYON NEW YORK BRANCH

 	 
	 	By:  	/s/ James D.A. Gibson
 	 
	 	 	Name:  	James D.A. Gibson 	 
	 	 	Title:  	Managing Director 	 
	 
	 	 	 
	 	By:  	                        /s/ Michael Madnick
 	 
	 	 	Name:  	Michael Madnick 	 
	 	 	Title:  	Director 	 
	 
	 	SOVEREIGN BANK

 	 
	 	By:  	/s/ Karl F. Schultz
 	 
	 	 	Name:  	Karl F. Schultz 	 
	 	 	Title:  	Vice Presidentexv10w1

 

Exhibit 10.1

August 26, 2005

Alan Gaines

Dune Energy, Inc.

3050 Post Oak Blvd., Suite 695

Houston, Texas 77056

	 	 	 
	Reference:

	 	Letter Agreement
	 

	 	Bayou Couba Field
	 

	 	St. Charles Parish Louisiana

Dear Alan,

     The following is an outline of terms and conditions relative to Dune Energy, Inc., acquiring 50% of
ANEC’s interest in the Exxon Mobil Development Agreement which presently covers approximately
10,900 acres as depicted on the attached plat.

	 	1.	 	Upon execution of this letter agreement, Dune will pay to ANEC Dune’s 50% share,
proportionately reduced, of the costs incurred in the drilling and completion of the DSCI
Well # 92 ST (approximately $187,500.00 to date). Upon making such payment, Dune shall be
entitled to an assignment of its working interest in such well. ANEC agrees that Dune’s net
revenue interest in said well shall not be less than 70% nor shall it be burdened by any
obligations created pursuant ANEC’s reorganization of Couba Operating Company.
	 
	 	2.	 	Both parties agree to drill the proposed DSCI Well # 51 ST on a 50/50 basis,
proportionately reduced. Payment of Dune’s share of the dryhole costs will be due on or
before August 29, 2005 in the amount of $187,119.90 and Dune’s share of completion costs
will be due upon determination of actual completion costs.

 

 

	 	3.	 	Dune agrees to pay to ANEC a prospect fee in the amount of $1,000,000 in exchange for
an assignment, of mutually agreeable form, conveying 50% of ANEC’s rights in and to the
lands contributed by ANEC, being the Delta Securities Corporation, Inc. lease dated
November 14, 1941, (DSCI Lease) subject to the Exxon Mobil Development Agreement providing
for a lease net revenue interest to be no less than 70% and any conveyance of interest to
Dune of lands outside of the DSCI Lease will be no less than a 75% lease net revenue
interest. Upon Exxon Mobil’s approval of Dune as a participant in the Development
Agreement, payment of the $1,000,000 prospect fee will be made in four installments as
follows:
	 
	 	 	 	   $225,000           immediately upon Exxon Mobil’s approval of Dune;

   $225,000           September 30, 2005;

   $225,000           January 15, 2006; and

   $325,000           March 15, 2006
	 
	 	4.	 	Upon each installment payment of the above referenced prospect fee by Dune to ANEC,
Dune shall have been deemed to have earned its pro rata share of ANEC’s interest in the
lands described in paragraph 3 above.
	 
	 	5.	 	Dune will pay to ANEC an additional prospect fee in the amount of $500,000.00 within 5
days from receipt of a log from which both parties agree to attempt a completion of an
exploratory well drilled on the Exxon Mobil acreage contributed to the Development
Agreement. ANEC shall be entitled to such prospect fee if Dune chooses to complete either
of the first two exploratory wells after receipt of corresponding logs.
	 
	 	6.	 	Should Dune achieve equity financing in the minimum amount of $5,000,000.00 the payment
schedule outlined in paragraph 3 above will be accelerated and all remaining payments will
be due 30 days from the closing of said financing.
	 
	 	7.	 	ANEC and Dune agree to jointly approach Exxon Mobil and initiate discussions to acquire
additional 3-D seismic as proposed by SEI, Inc., on a 50/50 basis. Any lands added to the
Exxon Mobil Development Agreement as a result of jointly acquiring the new 3-D data will be
shared by Dune and ANEC 50/50. Should either party pay a disproportionate share of the
seismic acquisition cost that party will be entitled the same disproportionate share of the
acreage acquired. ANEC agrees that Dune shall have the rights to possess and utilize all
existing 3-D seismic data pertaining to lands set forth herein.
	 
	 	8.	 	Any additional projects offered by Exxon Mobil to ANEC for future development will be
offered to Dune 50/50.
	 
	 	9.	 	This agreement will be further memorialized in a mutually acceptable formal agreement.
	 
	 	10.	 	This transaction has been approved of the board of directors of American Natural
Energy.

 

 

	 	11.	 	This letter and the final agreement will be subject to all of the terms and conditions
of the Exxon Mobil Development Agreement and any place where this agreement is silent or
ambiguous the Exxon Mobil Development Agreement will prevail.
	 
	 	12.	 	Specifically excluded from this agreement and reserved by American Natural Energy will
be any settlement, payment, redrill or any other manner of reconciliation agreed to between
the relevant parties to the currently pending lawsuit American Natural Energy Corporation
vs. Workstrings, et al which covers all operations conducted on the Exxon Mobil Fee # 2
Well with a surface location in Section 15-T15S-R21E and a bottom hole location of Section
14-T15S-R21E St. Charles Parish Louisiana along with any and all reserves associated with
the initial wellbore and subsequent sidetracking operations. In a similar manner Dune will
be indemnified and held harmless from any action of the courts relative to this case.
Should the Fee#2 be redrilled by ANEC, Dune will have the option to participate with 50%
proportionately reduced, by paying its share of all costs.
	 
	 	13.	 	Specifically excluded from this agreement are all wells currently producing.
	 
	 	14.	 	Subject to any restrictions contained in the Joint Operating Agreement, ANEC will
support Dune’s election to operate specific wells to be drilled.

Sincerely

/s/ Michael Paulk

Mike Paulk

President

Agreed an accepted this ___day of August, 2005.

Dune Energy, Inc

     /s/ Alan Gaines                              

Alan Gaines, Chairman and CEO

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