Document:

Exhibit 10.2

 

FIFTH AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT

 

This FIFTH AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT dated as of October 31, 2011 (this “Agreement”) is entered into among CIBER, Inc., a Delaware corporation (the “Borrower”), the Guarantors, the Lenders party hereto and Bank of America, N.A., as Administrative Agent.  All capitalized terms used herein and not otherwise defined herein shall have the meanings given to such terms in the Credit Agreement (as defined below).

 

RECITALS

 

A.            The Borrower, the Guarantors, the Lenders and the Administrative Agent entered into that certain Amended and Restated Credit Agreement dated as of August 20, 2009 (as amended by (i) that certain First Amendment to Amended and Restated Credit Agreement dated February 18, 2010, (ii) that certain Second Amendment to Amended and Restated Credit Agreement dated August 2, 2010, (iii) that certain Third Amendment to Amended and Restated Credit Agreement dated February 18, 2011 and (iv) that certain Waiver and Fourth Amendment to Amended and Restated Credit Agreement dated July 28, 2011 and as further amended or otherwise modified from time to time, the “Credit Agreement”).

 

B.            The Loan Parties have requested that the Administrative Agent and the Lenders amend certain terms of the Credit Agreement.

 

C.            The Administrative Agent and the Lenders are willing to do so, subject to the terms and conditions specified in this Agreement.

 

AGREEMENT

 

NOW, THEREFORE, in consideration of the premises and the mutual covenants contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

 

1.             Estoppel, Acknowledgement and Reaffirmation.  The Borrower hereby acknowledges that as of October 26, 2011, the principal balance outstanding under (i) the Revolving Credit Loan, including the Swing Line Loan, was not less than $59,500,000.00 and (ii) the Term Loan was not less than $30,000,000.00, which amounts constitute valid and subsisting obligations of the Borrower to the Lenders that are not subject to any credits, offsets, defenses, claims, counterclaims or adjustments of any kind.  Each Loan Party hereby (i) acknowledges its obligations under the Loan Documents, (ii) reaffirms that each of the Liens created and granted pursuant to the Loan Documents is valid, subsisting, of first-priority (subject to Permitted Liens) and duly perfected to the extent required by the Loan Documents and (iii) acknowledges that this Agreement shall in no manner impair or otherwise adversely affect such Liens.

 

2.             Amendments to Credit Agreement.  The Credit Agreement is hereby amended as follows:

 

(a)           The definition of “Applicable Rate” in Section 1.01 of the Credit Agreement is hereby amended to read as follows:

 

“Applicable Rate” means with respect to Revolving Credit Loans, the Term Loan, Swing Line Loans, Letters of Credit and the Commitment Fee, for each of the periods set forth below the corresponding percentages per annum:

 

 

	
Period
    	
 
    	
Commitment
   Fee
    	
 
    	
L/C Fee
    	
 
    	
Eurodollar Rate
   Loans
    	
 
    	
Base Rate
   Loans
    	
 
    
	
Fifth Amendment Effective   Date through October, 31, 2011
    	
 
    	
0.50
    	
%
    	
4.50
    	
%
    	
4.50
    	
%
    	
3.50
    	
%
    
	
November 1, 2011   through December 31, 2011
    	
 
    	
0.50
    	
%
    	
5.00
    	
%
    	
5.00
    	
%
    	
4.00
    	
%
    
	
January 1, 2012   through March 31, 2012
    	
 
    	
0.50
    	
%
    	
5.50
    	
%
    	
5.50
    	
%
    	
4.50
    	
%
    
	
April 1, 2012 through   May 31, 2012
    	
 
    	
0.50
    	
%
    	
6.50
    	
%
    	
6.50
    	
%
    	
5.50
    	
%
    

 

(b)           The definition of “Consolidated Scheduled Funded Debt Payments” in Section 1.01 of the Credit Agreement is hereby amended to read as follows:

 

“Consolidated Scheduled Funded Debt Payments” means for any period for Borrower and its Subsidiaries on a consolidated basis, the sum of all scheduled payments of principal on Consolidated Total Debt, as determined in accordance with GAAP.  For purposes of this definition, “scheduled payments of principal” (a) shall be determined without giving effect to any reduction of such scheduled payments resulting from the application of any voluntary or mandatory prepayments made during the applicable period, (b) shall be deemed to include the Attributable Debt in respect of capital leases, securitization transactions and Synthetic Lease Obligations, (c) shall not include any voluntary prepayments or mandatory prepayments required pursuant to Section 2.05 and (d) shall not include any scheduled payments of the Term Loan in excess of $2,500,000 to the extent made after the Fifth Amendment Effective Date.  Notwithstanding the foregoing, for purposes of calculating Consolidated Scheduled Funded Debt Payments as of September 30, 2008, December 31, 2008, March 31, 2009, June 30, 2009 and September 30, 2009, scheduled payments of principal with respect to the Term Loan for each of the four fiscal quarter periods ending September 30, 2008, December 31, 2008, March 31, 2009, June 30, 2009 and September 30, 2009 shall be deemed to be $10,000,000.

 

(c)           The following definition of “Fifth Amendment” is hereby added to Section 1.01 of the Credit Agreement in the appropriate alphabetical order to read as follows:

 

“Fifth Amendment” means that certain Fifth Amendment to Amended and Restated Credit Agreement entered into by the Loan Parties, the Administrative Agent and the Lenders on the Fifth Amendment Effective Date.

 

(d)           The following definition of “Fifth Amendment Effective Date” is hereby added to Section 1.01 of the Credit Agreement in the appropriate alphabetical order to read as follows:

 

“Fifth Amendment Effective Date” means October 31, 2011.

 

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(e)           The definition of “Interest Payment Date” in Section 1.01 of the Credit Agreement is hereby amended to read as follows:

 

“Interest Payment Date” means:  (a) with respect to:  (i) a Eurodollar Rate Loan, the last day of each Interest Period applicable thereto and the last Business Day of each calendar month; (ii) a Base Rate Loan (other than a Swing Line Loan), the last Business Day of each calendar month; and (iii) a Swing Line Loan, the last Business Day of each calendar month; and (b) in the case of all Loans, the Maturity Date.

 

(f)            The definition of “Interest Period” in Section 1.01 of the Credit Agreement is hereby amended and restated to read as follows:

 

“Interest Period” means, as to each Eurodollar Rate Loan, the period commencing on the date such Eurodollar Rate Loan is disbursed or converted to or continued as a Eurodollar Rate Loan and ending on the date one, three or six months thereafter, as selected by Borrower in its related Loan Notice; provided that:  (a) any Interest Period that would otherwise end on a day that is not a Business Day shall be extended to the next succeeding Business Day unless such Business Day falls in another calendar month, in which case such Interest Period shall end on the next preceding Business Day; (b) any Interest Period that begins on the last Business Day of a calendar month (or on a day for which there is no numerically corresponding day in the calendar month at the end of such Interest Period) shall end on the last Business Day of the calendar month at the end of such Interest Period; (c) no Interest Period for any Revolving Loan shall extend beyond the Maturity Date; and (d) no Interest Period for any Term Loan shall extend beyond January 31, 2012.

 

(g)           The definition of “Maturity Date” is hereby amended by replacing the reference to “August 20, 2012” therein with “January 1, 2013”.

 

(h)           Section 2.07(c) of the Credit Agreement is hereby amended by amending and restating the table therein to read as  follows:

 

	
Payment Date
    	
 
    	
Principal Amortization Payment Amount
    
	
December 30, 2011
    	
 
    	
$5,000,000
    
	
January 31, 2012
    	
 
    	
Outstanding Principal Balance of Term Loan
    

 

(i)            Section 6.12(a) of the Credit Agreement is hereby amended to read as follows:

 

Consolidated Fixed Charge Coverage Ratio. Maintain, as of the last day of each Fiscal Period, a Consolidated Fixed Charge Coverage Ratio not less than the corresponding ratio for such day set forth below:

 

	
December 31, 2011
    	
 
    	
0.50:1.00
    
	
March 31, 2012
    	
 
    	
0.60:1.00
    
	
June 30, 2012
    	
 
    	
1.15:1.00
    
	
September 30, 2012
    	
 
    	
1.25:1:00
    
	
December 31, 2012
    	
 
    	
1.50:1:00
    

 

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(j)            Section 6.12(b) of the Credit Agreement is hereby amended to read as follows:

 

Consolidated Leverage Ratio.  Maintain, as of the last day of each Fiscal Period set forth below, a Consolidated Leverage Ratio not greater than the corresponding ratio for such day set forth below:

 

	
December 31,   2011
    	
 
    	
3.50:1.00
    
	
March 31,   2012
    	
 
    	
2.50:1.00
    
	
June 30,   2012
    	
 
    	
1.50:1:00
    
	
September 30,   2012
    	
 
    	
1.50:1:00
    
	
December 31,   2012
    	
 
    	
1.50:1:00
    

 

(k)           Section 6.12(c) of the Credit Agreement is hereby amended to read as follows:

 

Consolidated EBITDA.  Maintain, for the twelve-month period ending as of each of the dates set forth below, Consolidated EBITDA of not less than the corresponding amount for each such period:

 

	
December 31, 2011
    	
 
    	
$
    	
30,200,000
    
	
March 31, 2012
    	
 
    	
$
    	
32,600,000
    
	
June 30, 2012
    	
 
    	
$
    	
51,600,000
    
	
September 30, 2012
    	
 
    	
$
    	
55,000,000
    
	
December 31, 2012
    	
 
    	
$
    	
57,800,000
    

 

(l)            Section 7.02(d)(vi) of the Credit Agreement is hereby amended to replace the reference to “$10,000,000” appearing therein with a reference to “$25,000,000”.

 

3.             Amendment Fee.  The Loan Parties hereby agree to pay to the Lenders an amendment fee of $750,000 to be shared by the Lenders on a pro rata basis based upon the outstanding Revolving Credit Commitments held by such Lenders (the “Amendment Fee”). The Amendment Fee shall be fully earned on the date hereof and payable as follows: (a) $250,000 payable on the date hereof (the “Closing Date Payment”), (b) $250,000 payable on or before November 1, 2011 and (c) $250,000 payable on or before December 1, 2011.

 

4.             Conditions Precedent.  This Agreement shall be effective upon satisfaction of the following conditions precedent:

 

(a)           The Administrative Agent shall have received counterparts of this Agreement duly executed by the Borrower, the Guarantors, the Lenders and Bank of America, N.A., as Administrative Agent.

 

(b)           The Administrative Agent shall have received such incumbency certificates and/or other certificates of Responsible Officers of each Loan Party as the Administrative Agent may reasonably require evidencing the identity, authority and capacity of each Responsible Officer thereof authorized to act as a Responsible Officer in connection with the Amendment and Waiver and the other Loan Documents to which such Loan Party is a party.

 

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(c)           The Administrative Agent shall have received the Closing Date Payment to be shared by the Lenders on a pro rata basis based upon the outstanding Revolving Credit Commitments held by such Lenders.

 

(d)           The Administrative Agent shall have received reimbursement from the Borrower for all reasonable out-of-pocket fees and expenses (including without limitation reasonable out-of-pocket fees and costs of counsel to the Administrative Agent) incurred in connection with the Loan Documents and this Agreement and invoiced through the date hereof.

 

5.             Representations of the Loan Parties.  Each of the Loan Parties hereby represents and warrants to the Administrative Agent and the Lenders as follows:

 

(a)           Each of the Loan Parties has the full power and authority to enter, execute and deliver this Agreement and perform its obligations hereunder, under the Credit Agreement, as amended hereby, and under each of the Loan Documents.  The execution, delivery and performance by each of the Loan Parties of this Agreement, and the performance by each of the Loan Parties of the Credit Agreement, as amended hereby, and each other Loan Document to which it is a party, in each case, are within such Person’s powers and have been authorized by all necessary corporate, limited liability or partnership action of such Person.

 

(b)           This Agreement has been duly executed and delivered by it and constitutes its legal, valid and binding obligation, enforceable against it in accordance with its terms, except as such enforceability may be subject to (i) bankruptcy, insolvency, reorganization, fraudulent conveyance or transfer, moratorium or similar laws affecting creditors’ rights generally and (ii) general principles of equity (regardless of whether such enforceability is considered in a proceeding at law or in equity).

 

(c)           No consent, approval, authorization or order of, or filing, registration or qualification with, any court or Governmental Authority or third party is required in connection with its execution, delivery or performance of this Agreement and the transactions contemplated hereby.

 

(d)           The execution and delivery of this Agreement does not (i) violate, contravene or conflict with any provision of its organization documents or (ii) materially violate, contravene or conflict with any laws applicable to it or any of its Subsidiaries.

 

(e)           The representations and warranties set forth in Article V of the Credit Agreement are true and correct in all material respects as of the date hereof (except for those which expressly relate to an earlier date).

 

(f)            As of the date hereof after giving effect to this Agreement, no Default or Event of Default exists under the Credit Agreement or any of the other Loan Documents.

 

6.             Release.  In consideration of the Administrative Agent’s and the Lenders’ willingness to enter into this Agreement, each of the Loan Parties hereby releases and forever discharges the Administrative Agent, the Lenders and each of the Administrative Agent’s and the Lenders’ predecessors, successors, assigns, officers, managers, directors, employees, agents, attorneys, representatives, and affiliates (hereinafter all of the above collectively referred to as the “Lender Group”), from any and all claims, counterclaims, demands, damages, debts, suits, liabilities, actions and causes of action of any nature whatsoever, in each case to the extent arising in connection with the Loan Documents through the date of this Agreement, whether arising at law or in equity, whether known or unknown, whether liability 

 

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be direct or indirect, liquidated or unliquidated, whether absolute or contingent, foreseen or unforeseen, and whether or not heretofore asserted, which each of the Loan Parties may have or claim to have against any of the Lender Group.

 

7.             Expenses.  Upon written demand therefor, the Loan Parties shall pay all reasonable out-of-pocket expenses incurred by the Administrative Agent (including without limitation the reasonable fees and out-of-pocket expenses of counsel) in connection with or related to the negotiation, drafting, and execution of this Agreement and the closing of the transactions contemplated hereby.

 

8.             Reaffirmation of Guaranty.  Each Guarantor (a) acknowledges and consents to all of the terms and conditions of this Agreement, (b) affirms all of its obligations under the Loan Documents after giving effect to the transactions contemplated hereby and (c) agrees that except as expressly provided herein, this Agreement and all documents executed in connection herewith do not operate to reduce or discharge such Guarantor’s obligations under the Loan Documents.

 

9.             Reference to and Effect on Loan Documents.  Except as specifically modified herein, the Loan Documents shall remain in full force and effect.  The execution, delivery and effectiveness of this Agreement shall not operate as a waiver of any right, power or remedy of the Administrative Agent and the Lenders under any of the Loan Documents, or constitute a waiver or amendment of any provision of any of the Loan Documents, except as expressly set forth herein.  This Agreement shall constitute a Loan Document.

 

10.           Further Assurances.  The Loan Parties each agree to execute and deliver, or to cause to be executed and delivered, all such instruments as may reasonably be requested to effectuate the intent and purposes, and to carry out the terms, of this Agreement.

 

11.           Entirety.  This Agreement and the other Loan Documents embody the entire agreement between the parties and supersede all prior agreements and understandings, if any, relating to the subject matter hereof.  This Agreement and the other Loan Documents represent the final agreement between the parties and may not be contradicted by evidence of prior, contemporaneous or subsequent oral agreements of the parties.

 

12.           Governing Law; Jurisdiction; Etc.

 

(a)           THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAW (OTHER THAN NEW YORK GENERAL OBLIGATIONS LAW 5 1401 AND 5 1402).

 

(b)           BORROWER AND EACH OTHER LOAN PARTY PARTY HERETO EACH IRREVOCABLY AND UNCONDITIONALLY SUBMITS, FOR ITSELF AND ITS PROPERTY, TO THE NONEXCLUSIVE JURISDICTION OF THE COURTS OF THE SUPREME COURT OF THE STATE OF NEW YORK SITTING IN NEW YORK COUNTY IN THE BOROUGH OF MANHATTAN AND OF THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK, AND ANY APPELLATE COURT FROM ANY THEREOF, IN ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT TO WHICH EACH IS A PARTY, OR FOR RECOGNITION OR ENFORCEMENT OF ANY JUDGMENT, AND EACH OF THE PARTIES HERETO IRREVOCABLY AND UNCONDITIONALLY AGREES THAT ALL CLAIMS IN RESPECT OF ANY SUCH ACTION OR PROCEEDING MAY BE HEARD AND DETERMINED IN SUCH STATE COURTS OR, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, IN SUCH FEDERAL COURTS.  EACH 

 

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OF THE PARTIES HERETO AGREES THAT A FINAL JUDGMENT IN ANY SUCH ACTION OR PROCEEDING SHALL BE CONCLUSIVE AND MAY BE ENFORCED IN OTHER JURISDICTIONS BY SUIT ON THE JUDGMENT OR IN ANY OTHER MANNER PROVIDED BY LAW.  NOTHING IN THIS AGREEMENT OR IN ANY OTHER LOAN DOCUMENT SHALL AFFECT ANY RIGHT THAT ADMINISTRATIVE AGENT OR ANY LENDING PARTY MAY OTHERWISE HAVE TO BRING ANY ACTION OR PROCEEDING RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT AGAINST ANY LOAN PARTY OR ANY OF ITS PROPERTIES IN THE COURTS OF ANY OTHER JURISDICTION.

 

(c)           BORROWER AND EACH OTHER LOAN PARTY PARTY HERETO EACH IRREVOCABLY AND UNCONDITIONALLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY OBJECTION THAT IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT IN ANY COURT REFERRED TO IN SUBSECTION ((B) OF THIS SECTION 15.  EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, THE DEFENSE OF AN INCONVENIENT FORUM TO THE MAINTENANCE OF SUCH ACTION OR PROCEEDING IN ANY SUCH COURT.

 

(d)           TO THE EXTENT PERMITTED BY APPLICABLE LAW, EACH OF THE PARTIES HERETO HEREBY WAIVES ITS RIGHT TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF THIS AGREEMENT, THE OTHER LOAN DOCUMENTS OR ANY OF THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY, INCLUDING CONTRACT CLAIMS, TORT CLAIMS, BREACH OF DUTY CLAIMS, AND ALL OTHER COMMON LAW OR STATUTORY CLAIMS (COLLECTIVELY, THE “CLAIMS”).  EACH OF THE PARTIES HERETO REPRESENTS THAT EACH HAS REVIEWED THIS WAIVER AND EACH KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS FOLLOWING CONSULTATION WITH LEGAL COUNSEL ON SUCH MATTERS.  IN THE EVENT OF LITIGATION, A COPY OF THIS AGREEMENT MAY BE FILED AS A WRITTEN CONSENT TO A TRIAL BY THE COURT.

 

13.           Miscellaneous.

 

(a)           This Agreement shall be binding on and shall inure to the benefit of the Loan Parties, the Administrative Agent, the Lenders and their respective successors and permitted assigns.  The terms and provisions of this Agreement are for the purpose of defining the relative rights and obligations of the Loan Parties, the Administrative Agent and the Lenders with respect to the transactions contemplated hereby and there shall be no third party beneficiaries of any of the terms and provisions of this Agreement.

 

(b)           Section headings in this Agreement are included herein for convenience of reference only and shall not constitute a part of this Agreement for any other purpose.

 

(c)           Wherever possible, each provision of this Agreement shall be interpreted in such a manner as to be effective and valid under applicable law, but if any provision of this Agreement shall be prohibited by or invalid under applicable law, such provision shall be ineffective to the extent of such prohibition or invalidity, without invalidating the remainder of such provision or the remaining provisions of this Agreement.

 

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(d)           Except as otherwise provided in this Agreement, if any provision contained in this Agreement is in conflict with, or inconsistent with, any provision in the Loan Documents, the provision contained in this Agreement shall govern and control.

 

(e)           This Agreement may be executed in any number of separate counterparts, each of which shall collectively and separately constitute one agreement.  Delivery of an executed counterpart of this Agreement by telecopy or other electronic imaging means (including .pdf) shall be effective as an original.

 

(f)            This Agreement and the other Loan Documents constitute the entire agreement among the parties relating to the subject matter hereof and supersede any and all previous documents, agreements and understandings, oral or written, relating to the subject matter hereof.

 

[Signature pages follow.]

 

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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed as of the date first above written.

 

	
BORROWER:
    	
CIBER, INC.,
    
	
 
    	
a   Delaware corporation
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Claude J. Pumilia
    
	
 
    	
Name: Claude J. Pumilia
    
	
 
    	
Title:   Executive Vice President & Chief Financial Officer
    
	
 
    	
 
    
	
 
    	
 
    
	
GUARANTOR:
    	
CIBER   INTERNATIONAL, INC.,
    
	
 
    	
a   Delaware corporation
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Claude J. Pumilia
    
	
 
    	
Name:   Claude J. Pumilia
    
	
 
    	
Title:   Vice President & Treasurer
    

 

CIBER, INC.

FIFTH AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT

 

 

	
ADMINISTRATIVE   AGENT:
    	
BANK   OF AMERICA, N.A.,
    
	
 
    	
as   Administrative Agent
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Gary L. Richerson
    
	
 
    	
Name:   Gary L. Richerson
    
	
 
    	
Title:   Senior Vice President
    
	
 
    	
 
    
	
LENDERS:
    	
BANK   OF AMERICA, N.A.,
    
	
 
    	
as   a Lender, Swing Line Lender and L/C Issuer
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Gary L. Richerson
    
	
 
    	
Name:   Gary L. Richerson
    
	
 
    	
Title:   Senior Vice President
    
	
 
    	
 
    
	
 
    	
COMPASS   BANK, an Alabama banking corporation
    
	
 
    	
(herein   referred to as “BBVA COMPASS”),
    
	
 
    	
as   a Lender
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Joseph W. Nimmons
    
	
 
    	
Name:   Joseph W. Nimmons
    
	
 
    	
Title:   Vice President
    
	
 
    	
 
    
	
 
    	
U.S.   BANK NATIONAL ASSOCIATION,
    
	
 
    	
as   a Lender
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Jeff Benedix
    
	
 
    	
Name:   Jeff Benedix
    
	
 
    	
Title:   Assistant Vice President
    
	
 
    	
 
    
	
 
    	
KEYBANK   NATIONAL ASSOCIATION,
    
	
 
    	
as   a Lender
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ H. Daniel Willets
    
	
 
    	
Name:   H. Daniel Willets
    
	
 
    	
Title:   Senior Vice President
    
	
 
    	
 
    
	
 
    	
UNION   BANK, N.A.,
    
	
 
    	
as   a Lender
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Michael Ball
    
	
 
    	
Name:   Michael Ball
    
	
 
    	
Title:   Vice President
    

 

CIBER, INC.

FIFTH AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT

 

 

	
 
    	
PNC   BANK, NATIONAL ASSOCIATION,
    
	
 
    	
as a Lender
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Tom Gurbach
    
	
 
    	
Name: Tom Gurbach
    
	
 
    	
Title: Vice President
    
	
 
    	
 
    
	
 
    	
IBM CREDIT LLC,
    
	
 
    	
as a Lender
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Sal Grasso
    
	
 
    	
Name: Sal Grasso
    
	
 
    	
Title: Manager of Credit
    

 

CIBER, INC.

FIFTH AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENTExhibit 10.4

 

GASCO ENERGY, INC.
 STOCK APPRECIATION RIGHT AGREEMENT

 

	
To:   
    	
 
    	
Grant Date: October 5, 2011
    	
 
    	
Grant Price: $0.25
    	
 
    	
Number of Shares: 100,000
    

 

THIS  STOCK APPRECIATION RIGHT AGREEMENT (the “Agreement”) is made as of October 5, 2011 between Gasco Energy, Inc., a Nevada corporation (the “Company”), and                              (the “Director”).  Neither his Agreement nor the award granted hereby is subject to or granted pursuant to the GASCO ENERGY, INC. 2011 LONG TERM INCENTIVE PLAN.

 

In consideration of the Director’s service as a member of the Board of Directors of the Company (the “Board”) and the mutual agreements and other matters set forth herein, the Company and the Director hereby agree as follows:

 

1.                                      Stock Appreciation Right Award.  The Company hereby grants to the Director (the “Award”), effective as of October 5, 2011 (the “Date of Grant”), stock appreciation rights (the “Stock Appreciation Rights”) related to 100,000 shares of the Company’s Common Stock, par value $.0001 per share (the “Stock”).  The Stock Appreciation Rights shall provide to the Director the right to receive a lump sum cash payment equal to the value of the product of (a) the excess of (i) the Fair Market Value of one share of Stock on the Date of Exercise, over (ii) $0.25, which is an amount greater than closing price of a share of Stock on the Date of Grant (the “Grant Price”), multiplied by (b) the number of shares as to which this Award has been exercised (the “Appreciation Amount”).

 

2.                                      Vesting and Forfeiture of Stock Appreciation Rights.

 

(a)                                  Vesting.  The Stock Appreciation Rights will be “Unvested Rights” until such time as they become “Vested Rights” pursuant to this Section 2.   Subject to the earlier forfeiture of the Stock Appreciation Rights pursuant to Section 2(b), the Stock Appreciation Rights will become Vested Rights on the earlier to occur of (i) January 31, 2012, (ii) the date immediately prior to a Change in Control, or (iii) the death or disability, as determined by the Compensation Committee of the Board (the “Committee”) in its sole discretion (a “Disability”), of the Director.

 

(b)                                 Termination of Directorship and Forfeiture.  In the event the Director ceases to be a member of the Board for any reason other than death or Disability, all Unvested Rights shall immediately terminate and be forfeited.

 

3.                                      Settlement of Stock Appreciation Rights.

 

(a)                                  Exercise and Settlement.  The Vested Rights will automatically be exercised upon the earlier to occur of (i) February 1, 2012, or (ii) a Change in Control (the “Date of Exercise”).  Any Vested Rights exercised pursuant to the preceding sentence shall be settled by the Company through payment of the Appreciation Amount in a lump sum cash payment within the period of 10 Business Days beginning on the date of exercise of the Vested Rights.

 

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(b)                                 Procedures.  Exercise and settlement of Vested Rights shall be subject to and pursuant to rules and procedures established by the Committee in its sole discretion.

 

4.                                      Transferability.  This Agreement and the Stock Appreciation Rights granted hereunder will not be transferable or assignable by the Director other than by will or the laws of descent and distribution or written approval of the Committee (which approval may be withheld for any or no reason).  Any purported or attempted transfer or assignment without prior written approval shall be void and of no effect.

 

5.                                      Information Confidential.  As partial consideration for the granting of the Stock Appreciation Rights hereunder, the Director hereby agrees with the Company that the Director will keep confidential all information and knowledge that the Director has relating to the terms and conditions of this Agreement; provided, however, that such information may be disclosed as required by law and may be given in confidence to the Director’s spouse, tax and financial advisors, or to a financial institution to the extent that such information is necessary to secure a loan.  In the event any breach of this promise comes to the attention of the Company, it shall take into consideration that breach in determining whether to recommend the grant of any future similar award to the Director, as a factor militating against the advisability of granting any such future award to the Director.

 

6.                                      No Right to Continued Service.  This Agreement shall not be construed to confer upon the Director any right to continue as a director of the Company.  Any question as to whether and when there has been a termination of the Director’s service on the Board, and the cause of such termination, shall be determined by the Committee, and its determination shall be final and binding.

 

7.                                      Administration.  The Committee shall have sole and complete discretion with respect to the interpretation and administration of this Award and Agreement and decisions of a majority of the Committee with respect thereto and this Agreement shall be final and binding upon the Director and the Company.

 

8.                                      Unfunded Arrangement and Section 409A.  This Agreement shall not give a Director any security or other interest in any assets of the Company; rather the Director’s right to the Award is that of a general unsecured creditor of the Company.  Neither this Agreement nor the Stock Appreciation Rights granted hereunder are intended to provide for the “deferral of compensation” within the meaning of the Nonqualified Deferred Compensation Rules.

 

9.                                      No Liability for Good Faith Determinations.  The Company, the Committee and the members of the Board shall not be liable for any act, omission or determination taken or made in good faith with respect to this Agreement or the Stock Appreciation Rights granted hereunder.

 

10.                               No Guarantee of Interests.  The Company, the Committee and the members of the Board do not guarantee the Stock from loss or depreciation.

 

11.                               Company Records.  Records of the Company regarding the Director’s period of service, termination of directorship and the reason therefor, leaves of absence, and other matters

 

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shall be conclusive for all purposes hereunder, unless determined by the Company to be incorrect.

 

12.                               Company Action.  Any action required of the Company shall be by resolution of its Board or the Committee or by a person authorized to act by resolution of the Board or the Committee.

 

13.                               Severability.  If any provision of this Agreement is held to be illegal or invalid for any reason, the illegality or invalidity shall not affect the remaining provisions hereof, but such provision shall be fully severable and this Agreement shall be construed and enforced as if the illegal or invalid provision had never been included herein.

 

14.                               Notices and Waiver.  All notices made with respect to this Agreement must be in writing and personally delivered or sent by mail and shall be deemed to be delivered on the date on which it is actually received by the person to whom it is properly addressed.  A notice shall be effective when actually received by the Company in writing and in conformance with this Agreement. Any person entitled to notice hereunder may waive such notice.

 

15.                               Successors.  This Agreement shall be binding upon the Director, the Director’s legal representatives, heirs, legatees and distributees, and upon the Company, its successors and assigns.

 

16.                               Headings.  The titles and headings of Sections are included for convenience of reference only and are not to be considered in construction of the provisions hereof.

 

17.                               Governing Law.  All questions arising with respect to the provisions of this Agreement shall be determined by application of the laws of the State of Colorado without regard to choice of law provisions thereunder, except to the extent Colorado law is preempted by federal law.

 

18.                               Word Usage.  Words used in the masculine shall apply to the feminine where applicable, and wherever the context of this Agreement dictates, the plural shall be read as the singular and the singular as the plural.

 

19.                               Amendment.  This Agreement may be amended by the Committee or the Board; provided, however, that no amendment may decrease Director’s rights inherent in this Agreement prior to such amendment without Director’s express written consent.  Notwithstanding the provisions of this Section 19, this Agreement may be amended by the Committee, without the consent of the Director, to the extent necessary to comply with applicable laws and regulations and to conform the provisions of this Agreement to any changes thereto or to settle or make any adjustment or change to the Award pursuant to Section 20.

 

20.                               Changes in Capitalization and Corporate Transactions.  In no event will any action taken by the Committee pursuant to this Section 20 result in the creation of deferred compensation within the meaning of the Nonqualified Deferred Compensation Rules.

 

(a)                                  Existence of Award.  The existence of this Award shall not affect in any way the right or power of the Board or the stockholders of the Company to make or authorize

 

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any adjustment, recapitalization, reorganization or other change in the Company’s capital structure or its business, any merger or consolidation of the Company, any issue of debt or equity securities ahead of or affecting Stock or the rights thereof, the dissolution or liquidation of the Company or any sale, lease, exchange or other disposition of all or any part of its assets or business or any other corporate act or proceeding.

 

(b)                                 Subdivision or Consolidation of Shares of Stock.  The terms of this Award shall be subject to adjustment from time to time, in accordance with the following provisions:

 

(i)                                     If at any time, or from time to time, the Company shall subdivide as a whole (by reclassification, by a Stock split, by the issuance of a distribution on Stock payable in Stock, or otherwise) or in the event the Company distributes an extraordinary cash dividend the number of shares of Stock then outstanding into a greater number of shares of Stock, then, as appropriate, (A)  the number of shares of Stock (or other kind of shares or securities) subject to this Award shall be increased proportionately, and (B) the Grant Price (including the exercise price) shall be reduced proportionately, without materially changing the aggregate Grant Price.

 

(ii)                                  If at any time, or from time to time, the Company shall consolidate as a whole (by reclassification, by reverse Stock split, or otherwise) the number of shares of Stock then outstanding into a lesser number of shares of Stock, (A)  the number of shares of Stock (or other kind of shares or securities) subject to this Award shall be decreased proportionately, and (B) the Grant Price subject to this Award shall be increased proportionately, without materially changing the aggregate Grant Price.

 

(c)                                  Corporate Recapitalization.  If the Company recapitalizes, reclassifies its capital stock, or otherwise changes its capital structure (a “recapitalization”) without the occurrence of a Change in Control, the number and class of shares of Stock covered by this Award shall thereafter cover the number and class of shares of stock and securities to which the Director would have been entitled pursuant to the terms of the recapitalization if, immediately prior to the recapitalization, the holder had been the holder of record of the number of shares of Stock then covered by this Award.

 

(d)                                   Additional Issuances.  Except as hereinbefore expressly provided, the issuance by the Company of shares of stock of any class or securities convertible into shares of stock of any class, for cash, property, labor or services, upon direct sale, upon the exercise of rights or warrants to subscribe therefor, or upon conversion of shares or obligations of the Company convertible into such shares or other securities, and in any case whether or not for fair value, shall not affect, and no adjustment by reason thereof shall be made with respect to, the number of shares of Stock subject to this Award or the Grant Price.

 

(e)                                  Committee Discretion.  Adjustments under this Section 20 shall be made by the Committee, and its determination as to what adjustments shall be made and the extent thereof shall be final, binding, and conclusive.  No fractional interest in a share of Stock shall be made available under this Agreement on account of any such adjustments.

 

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(f)                                      Impact of Corporate Events on Award Generally.  In the event of changes in the outstanding Stock by reason of a recapitalization, reorganization, merger, consolidation, combination, exchange or other relevant change in capitalization occurring after the Date of the Grant and not otherwise provided for by this Section 20, this Award and the Agreement shall be subject to adjustment by the Committee at its discretion, and may include, but not be limited to, adjustments as to the number of shares of Stock subject to this Award, the Grant Price, accelerated vesting (in full or in part) of this Award, conversion of this Award into awards denominated in the securities or other interests of any successor Person, or the accelerated cash settlement of this Award in exchange for the cancellation thereof.

 

21.                               Limitation of Liability.  The Committee and each member thereof shall be entitled to, in good faith, rely or act upon any report or other information furnished to him or her by any officer or employee of the Company or any of its Subsidiaries, the Company’s legal counsel, independent auditors, consultants or any other agents assisting in the administration of this Award or Agreement.  Members of the Committee and any officer or employee of the Company or any of its Subsidiaries acting at the direction or on behalf of the Committee shall not be personally liable for any action or determination taken or made in good faith with respect to this Award or Agreement, and shall, to the fullest extent permitted by law, be indemnified and held harmless by the Company with respect to any such action or determination.

 

22.                                 Exemptions from Section 16(b) Liability.  It is the intent of the Company that the grant of this Award to or other transaction by the Director contemplated by this Award shall be exempt from Section 16 of the Exchange Act pursuant to an applicable exemption (except for transactions acknowledged in writing to be non-exempt by the Director).  Accordingly, if any provision of this Agreement does not comply with the requirements of Rule 16b-3 as then applicable to any such transaction, such provision shall be construed or deemed amended to the extent necessary to conform to the applicable requirements of Rule 16b-3 so that the Director shall avoid liability under Section 16(b) of the Exchange Act.

 

23.                               Defined Terms.  Terms used in this Agreement and not otherwise defined shall have the following meanings:

 

(a)                                  “Change in Control” means the occurrence of any of the following events:

 

(i)                                     The consummation of an agreement to acquire or a tender offer for beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act by any Person, of 50% or more of either (x) the then outstanding shares of Stock (the “Outstanding Stock”) or (y) the combined voting power of the then outstanding voting securities of the Company entitled to vote generally in the election of directors (the “Outstanding Company Voting Securities”); provided, however, that for purposes of this subsection (i), the following acquisitions shall not constitute a Change in Control:  (A) any acquisition directly from the Company, (B) any acquisition by the Company, (C) any acquisition by any employee benefit plan (or related trust) sponsored or maintained by the Company or any entity controlled by the Company or (D) any acquisition by any entity pursuant to a transaction that complies with clauses (A), (B) and (C) of paragraph (iii) below;

 

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(ii)                                  Individuals who constitute the Incumbent Board cease for any reason to constitute at least a majority of the Board;

 

(iii)                               Consummation of a reorganization, merger or consolidation or sale or other disposition of all or substantially all of the assets of the Company or an acquisition of assets of another entity (a “Business Combination”), in each case, unless, following such Business Combination, (A) the Outstanding Stock and Outstanding Company Voting Securities immediately prior to such Business Combination represent or are converted into or exchanged for securities which represent or are convertible into more than 50% of, respectively, the then outstanding shares of common stock or common equity interests and the combined voting power of the then outstanding voting securities entitled to vote generally in the election of directors or other governing body, as the case may be, of the entity resulting from such Business Combination (including, without limitation, an entity which as a result of such transaction owns the Company, or all or substantially all of the Company’s assets either directly or through one or more subsidiaries), (B) no Person (excluding any employee benefit plan (or related trust) of the Company or the entity resulting from such Business Combination) beneficially owns, directly or indirectly, 20% or more of, respectively, the then outstanding shares of common stock or common equity interests of the entity resulting from such Business Combination or the combined voting power of the then outstanding voting securities entitled to vote generally in the election of directors or other governing body of such entity to the extent that such ownership results solely from ownership of the Company that existed prior to the Business Combination, and (C) at least a majority of the members of the board of directors or similar governing body of the entity resulting from such Business Combination were members of the Incumbent Board at the time of the execution of the initial agreement, or of the action of the Board, providing for such Business Combination; or

 

(iv)                                A complete liquidation or dissolution of the Company.

 

(b)                                 “Date of Exercise” has the meaning set forth in Section 3(a).

 

(c)                                  “Exchange Act” means the Securities Exchange Act of 1934, as amended from time to time, including rules thereunder and successor provisions and rules thereto.

 

(d)                                 “Fair Market Value” means, as of any specified valuation date (other than the Date of Grant) the volume weighted average price (“VWAP”) of the Stock over the period of five business days preceding the specified valuation date. VWAP will be calculated at the direction of the Committee and its determination of the VWAP will be final and binding; provided, however, it is the intention of the Company that Fair Market Value be calculated in a manner such that the Award will not provide for the “deferral of compensation” within the meaning of the Nonqualified Deferred Compensation Rules.

 

(e)                                  “Incumbent Board” means the portion of the Board constituted of the individuals who are members of the Board as of the Effective Date and any other individual who becomes a director of the Company after the Effective Date and whose election or appointment by the Board or nomination for election by the Company’s stockholders was approved by a vote

 

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of at least a majority of the directors then comprising the Incumbent Board, but excluding, for this purpose, any such individual whose initial assumption of office occurs as a result of an actual or threatened election contest with respect to the election or removal of directors or other actual or threatened solicitation of proxies or consents by or on behalf of a Person other than the Incumbent Board.

 

(f)                                    “Nonqualified Deferred Compensation Rules” means the limitations or requirements of Section 409A of the Code and the guidance and regulations promulgated thereunder.

 

(g)                                 “Person” means any person or entity of any nature whatsoever, specifically including an individual, a firm, a company, a corporation, a partnership, a limited liability company, a trust or other entity; a Person, together with that Person’s Affiliates and Associates (as those terms are defined in Rule 12b-2 under the Exchange Act, provided that “registrant” as used in Rule 12b-2 shall mean the Company), and any Persons acting as a partnership, limited partnership, joint venture, association, syndicate or other group (whether or not formally organized), or otherwise acting jointly or in concert or in a coordinated or consciously parallel manner (whether or not pursuant to any express agreement), for the purpose of acquiring, holding, voting or disposing of securities of the Company with such Person, shall be deemed a single “Person.”

 

(h)                                 “Subsidiary” means with respect to the Company, any corporation or other entity of which a majority of the voting power of the voting equity securities or equity interest is owned, directly or indirectly, by the Company.

 

[Remainder of Page Intentionally Left Blank]

 

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IN WITNESS WHEREOF, the Company has caused this Agreement to be executed by its duly authorized officer effective as of October 5, 2011.

 

 

	
 
    	
GASCO   ENERGY, INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Title:
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
DIRECTOR
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Name:
    	
 
    

 

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