Document:

Exhibit 10.1

 

AMENDMENT ONE TO

RESTRUCTURING SUPPORT AGREEMENT

 

THIS AMENDMENT ONE TO RESTRUCTURING SUPPORT AGREEMENT (this “Amendment”) is dated as of February 4, 2013, by and among (i) Geokinetics Inc. on behalf of itself and each of its direct and indirect domestic subsidiaries and affiliates (collectively, the “Company”), which include: (a) Geokinetics Holdings USA, Inc., (b) Geokinetics Services Corp., (c) Geokinetics Processing, Inc., (d) Geokinetics Acquisition Company, (e) Geokinetics USA, Inc., (f) Geokinetics International Holdings, Inc., (g) Geokinetics Management, Inc.,  (h) Geokinetics International, Inc., and (i) Advanced Seismic Technology, Inc.; (ii) American Securities Opportunities Advisors, LLC (“American Securities”), Gates Capital Management, Inc. (“Gates”) and the other undersigned holders (the “Noteholders”), each as the beneficial owners (or advisor, nominee or investment manager for beneficial owner(s)) of the 9.75% Senior Secured Notes due 2014 issued by Geokinetics Holdings USA, Inc. and, if and as applicable, as lenders under that certain Amended and Restated Credit Agreement dated as of August 12, 2011; and (iii) Avista Capital Partners, L.P. and Avista Capital Partners (Offshore), L.P. (the “Preferred Equity Holders” and, together with the Company and the Noteholders, each referred to as a “Party” and collectively referred to as the “Parties”), each as the beneficial owners (or advisor, nominee or investment manager for beneficial owner(s)) of preferred equity interests in Geokinetics Inc. comprised of Series B-1 Senior Convertible Preferred Stock and Series C-1 Senior Preferred Stock as well as junior preferred equity interests in Geokinetics Inc. comprised of Series D Junior Preferred Stock.

 

WITNESSETH:

 

WHEREAS, the Company, Noteholders, and Preferred Equity Holders are party to that certain Restructuring Support Agreement, dated as of January 15, 2013 (the “Support Agreement”);

 

WHEREAS, capitalized terms used herein without definition shall have the meanings given to such terms in the Support Agreement (as amended hereby);

 

WHEREAS, the Parties wish to launch the Solicitation prior to the joint execution by American Securities and Gates of an agreement authorizing and approving the form of a shareholders’ agreement governing the rights of holders of New Common Stock by American Securities and Gates;

 

WHEREAS, American Securities and Gates are willing to modify their termination rights in connection with the Solicitation not having commenced by January 31, 2013, if the Support Agreement is modified as set forth herein, including but not limited to provide American Securities and Gates with the right to terminate the Support Agreement if such an agreement authorizing and approving the form of shareholders’ agreement is not executed prior to commencement of the Chapter 11 Cases; and

 

WHEREAS, the Support Agreement may be amended in accordance with Section 12 thereof and the consent of the Company, Noteholders, and Preferred Equity Holders is required in connection with such amendment.

 

NOW, THEREFORE, for good and valuable consideration (receipt and sufficiency of which are hereby acknowledged), and intending to be legally bound hereby, the parties hereto agree as follows:

 

1.                                      Recitals.  The recitals set forth above are incorporated herein by reference and are expressly acknowledged and agreed to by the parties hereto.

 

 

2.                                      Amendments to the Support Agreement.

 

(A)                                Section 5(a)(1).  Section 5(a)(1) of the Support Agreement, together with footnote 1 thereto, is hereby amended to replace “January 31, 2013” where it appears with “February 8, 2013”.

 

(B)                                Section 5(a)(2).  Section 5(a)(2) of the Support Agreement is hereby deleted in its entirety and replaced with the following:

 

“the Company has not filed petitions commencing the Chapter 11 Case as soon as practicable after, and in no event before, the close of the Solicitation;”

 

(C)                                Section 6(g).  Section 6(g) of the Support Agreement is hereby amended to replace “February 15, 2013” where it appears with “March 15, 2013”.

 

(D)                                Section 8.  Section 8 of the Support Agreement is hereby deleted in its entirety and replaced with the following:

 

“Termination by American Securities and/or Gates.  In the event that American Securities and Gates have not jointly executed an agreement authorizing and approving the form of a shareholders’ agreement governing the rights of holders of New Common Stock (as defined in the Restructuring Term Sheet) that is consistent with the Shareholders’ Agreement Term Sheet (as defined in the Restructuring Term Sheet) and is otherwise reasonably acceptable to American Securities and Gates immediately prior to the commencement of the Chapter 11 Cases, then this Agreement may be terminated by either American Securities or Gates, in the discretion of each respectively, by delivering written notice of the occurrence of such event in accordance with Section 14 below to the Parties.”

 

2.                                      Amendment to Restructuring Term Sheet.  The fourth row of Section IV. Corporate Governance and Management of the Restructuring Term Sheet, entitled “Shareholders Agreement”, is hereby deleted in its entirety and replaced with the following:

 

“It shall be a condition to the Restructuring and the Majority Noteholders’ support of the Restructuring that (i) prior to the commencement of solicitation of votes to accept or reject the Plan, American Securities Opportunities Advisors, LLC (“American Securities”) and Gates Capital Management, Inc. (“Gates”) shall have reached mutual agreement on a term sheet for the terms of a shareholders’ agreement for holders of New Common Stock (the “Shareholders’ Agreement Term Sheet”) and (ii) prior to the commencement of the chapter 11 cases, American Securities and Gates shall have reached mutual agreement as to the form of such shareholders’ agreement for holders of New Common Stock that is consistent with the Shareholders’ Agreement Term Sheet and is otherwise reasonably acceptable to American Securities and Gates.”

 

3.                                      Amendments to Exhibit 1 to Restructuring Term Sheet.

 

(A)        The fourth row of Section VII. Certain Documentation Matters of Exhibit 1 to the Restructuring Term Sheet, entitled “Milestones”, together with footnote 12 thereto, is hereby amended to replace “January 31, 2013” where it appears with “February 8, 2013”.

 

2

 

(B)        The second bullet point in the fourth row of Section VII. Certain Documentation Matters of Exhibit 1 to the Restructuring Term Sheet, entitled “Milestones”, is hereby deleted in its entirety and replaced with the following:

 

“the Company shall have filed petitions commencing the Case as soon as practicable after, and in no event before, the close of the Solicitation;”

 

4.                                      Waiver.  Each Party waives any right to terminate the Support Agreement arising from or related to the Company’s failure to commence the Solicitation by January 31, 2013.

 

5.                                      No Other Changes.  Except as modified hereby, all of the terms and provisions of the Support Agreement shall remain in full force and effect.  This Amendment shall be construed in connection with and as a part of the Support Agreement and, except as expressly contemplated by this Amendment, all terms, conditions and covenants contained in the Support Agreement are hereby ratified and shall be and remain in full force and effect.

 

6.                                      References to the Support Agreement.  In furtherance of the foregoing, all references in the Support Agreement to “this Agreement”  or to “the Restructuring Term Sheet” shall mean the Support Agreement or the Restructuring Term Sheet, respectfully, each as amended as of the date hereof and as may be further amended, from time to time hereafter.

 

7.                                      Counterparts; Electronic Signatures.  This Amendment may be executed in multiple counterparts, each of which, when executed, will be deemed an original, and all of which will constitute but one and the same instrument. A signature of a Party transmitted to the other Party by facsimile, PDF or other electronic means shall constitute the original signature of such Party for all purposes.

 

8.                                      Incorporation by Reference.  Sections 12 through 31 of the Support Agreement, inclusive, are incorporated herein in their entirety by reference.

 

[SIGNATURE PAGES FOLLOW]

 

3

 

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

 

 

	
Geokinetics Inc.   
    	
Geokinetics USA, Inc.  
    
	
 
    	
 
    
	
By:
    	
/s/ Gary L. Pittman 
    	
 
    	
By:
    	
/s/ Gary L. Pittman 
    
	
Name:
    	
Gary L. Pittman 
    	
Name: 
    	
Gary L. Pittman 
    
	
Its:
    	
 
    	
Its:
    	
 
    
	
 
    	
 
    
	
Geokinetics Holdings   USA, Inc. 
    	
Geokinetics International Holdings, Inc. 
    
	
 
    	
 
    
	
By:
    	
/s/ Gary L. Pittman 
    	
 
    	
By:
    	
/s/ Gary L. Pittman 
    
	
Name:
    	
Gary L. Pittman 
    	
Name: 
    	
Gary L. Pittman 
    
	
Its:
    	
 
    	
Its:
    	
 
    
	
 
    	
 
    
	
Geokinetics Services Corp.
    	
Geokinetics Management, Inc.
    
	
 
    	
 
    
	
By:
    	
/s/ Gary L. Pittman 
    	
 
    	
By:
    	
/s/ Gary L. Pittman 
    
	
Name:
    	
Gary L. Pittman 
    	
Name: 
    	
Gary L. Pittman 
    
	
Its:
    	
 
    	
Its:
    	
 
    
	
 
    	
 
    
	
Geokinetics Processing, Inc.
    	
Geokinetics International, Inc.
    
	
 
    	
 
    
	
By:
    	
/s/ Gary L. Pittman 
    	
 
    	
By:
    	
/s/ Gary L. Pittman 
    
	
Name:
    	
Gary L. Pittman 
    	
Name: 
    	
Gary L. Pittman 
    
	
Its:
    	
 
    	
Its:
    	
 
    
	
 
    	
 
    
	
Geokinetics Acquisition Company
    	
Advanced Seismic Technology, Inc.
    
	
 
    	
 
    
	
By:
    	
/s/ Gary L. Pittman 
    	
 
    	
By:
    	
/s/ Gary L. Pittman 
    
	
Name:
    	
Gary L. Pittman 
    	
Name: 
    	
Gary L. Pittman 
    
	
Its:
    	
 
    	
Its:
    	
 
    

 

[Signature Page to Amendment One To Restructuring Support Agreement]

 

 

	
 
    	
American Securities Opportunities Advisors, LLC
    
	
 
    	
ASOF II Investments, LLC (“ASOF II”)
    
	
 
    	
American Securities Opportunity Fund, L.P.   (“ASOF”)
    
	
 
    	
American Securities Opportunities Fund (B), LP
    
	
 
    	
(“ASOFB”)
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Lawrence First
    
	
 
    	
Name:
    	
Lawrence First
    
	
 
    	
Title:
    	
Managing Director
    
	
 
    	
 
    
	
 
    	
Telephone:
    	
(212) 476-4971
    
	
 
    	
Facsimile:
    	
 
    
				

 

[Signature Page to Amendment One To Restructuring Support Agreement]

 

 

	
 
    	
Gates Capital Management, Inc.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Jeffrey L. Gates
    
	
 
    	
Name:
    	
Jeffrey L. Gates
    
	
 
    	
Title:
    	
President
    
	
 
    	
 
    
	
 
    	
Telephone:
    	
(212) 626-1421
    
	
 
    	
Facsimile:
    	
(212) 626-1417
    
				

 

[Signature Page to Amendment One To Restructuring Support Agreement]

 

 

	
 
    	
Avista Capital Partners (Offshore), L.P.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Jeff Gunst
    
	
 
    	
Name:
    	
Jeff Gunst
    
	
 
    	
Title:
    	
Authorized Signatory
    
	
 
    	
 
    
	
 
    	
Telephone:
    	
(212) 593-6900
    
	
 
    	
Facsimile:
    	
(212) 593-6901
    
				

 

[Signature Page to Amendment One To Restructuring Support Agreement]

 

 

	
 
    	
Avista Capital Partners, L.P.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Jeff Gunst
    
	
 
    	
Name:
    	
Jeff Gunst
    
	
 
    	
Title:
    	
Authorized Signatory
    
	
 
    	
 
    
	
 
    	
Telephone:
    	
(212) 593-6900
    
	
 
    	
Facsimile:
    	
(212) 593-6901
    
				

 

[Signature Page to Amendment One To Restructuring Support Agreement]ex10_6.htm

Exhibit 10.06

 

	
Principal Sum: $500,000

	
Investor: Michael Goldman

	Maturity Date: 	May 1, 2013	 

	Dated: 	February 1, 2013	 

 

PROMISSORY NOTE

 

CCOM GROUP, INC., a New York corporation (hereinafter called the "Company"), hereby promises to pay to the order of Holder the Principal Sum on the Maturity Date.

 

	
  

	
1.

	
This Promissory Note shall accrue interest at the annual rate of 4%.

 

	
  

	
2.

	
This Promissory Note may be pre-paid in full or part without penalty at the sole option of the Company.

 

	
  

	
3.

	
Subordination.

 

	
  

	
a.

	
The Company's indebtedness to Holder under this Promissory Note shall be subordinate to indebtedness to Senior Lenders (as hereinafter defined) to the fullest extent from time to time requested by the Senior Lenders. "Senior Lenders" means (i) Keybank National Association (“KeyBank”) or any lender that at time refinances any indebtedness of the Company to KeyBank or any Senior Lender and (ii) Goodman Company, L.P., Goodman Manufacturing Company, L.P. and Goodman Sales Company.

 

	
  

	
b.

	
Holder hereby accepts the terms of any subordination agreement and inter-creditor and other agreements that are at any time or times proposed by the Senior Lenders as to such subordination, with the same force and effect as if Holder had directly signed such subordination and inter-creditor and other agreements. Without limiting the generality of the foregoing, Holder hereby irrevocably appoints William Pagano as Holder's attorney in fact to execute and deliver such agreements in the name of Holder and on its behalf.

 

	
  

	
4.

	
Events of Default, Change of Control, and Acceleration of the Promissory Note.

 

	
  

	
a.

	
A default with respect to this Promissory Note shall exist if any of the following shall occur:

 

	
  

	
i.

	
The Company shall fail to make any payment of principal or interest when due, or the Company shall otherwise breach any other provision of this Promissory Note, and such failure to make payment or such other breach shall continue for 20 business days after written notice by Holder to the Company.

 

  

  

  

 

	 	
ii.

	

A receiver, liquidator or trustee of the Company or of a substantial part of its properties shall be appointed by court order and such order shall remain in effect for more than 45 calendar days; or the Company shall be adjudicated bankrupt or insolvent; or a substantial part of the property of the Company shall be sequestered by court order and such order shall remain in effect for more than 45 calendar days; or a petition to reorganize the Company under any bankruptcy, reorganization or insolvency law shall be filed against the Company and shall not be dismissed within 45 calendar days after such filing.

 

	
  

	
iii.

	
The Company shall file a petition in voluntary bankruptcy or request reorganization under any provision of any bankruptcy, reorganization or insolvency law, or shall consent to the filing of any petition against it under any such law.

 

	
  

	
iv.

	
The Company shall have defaulted in respect of any obligation for borrowed money and the lender in respect thereof shall have accelerated or shall have purported to accelerate the maturity thereof; or

 

	
  

	
v.

	
The Company shall make an assignment for the benefit of its creditors or consent to the making of any such assignment, or admit in writing its inability to pay its debts generally as they become due, or consent to the appointment of a receiver, trustee or liquidator of the Company, or of all or any substantial part of its properties.

 

	
  

	
b.

	
If a default shall occur and be continuing, the Holder may, in addition to such Holder's other remedies, by written notice to the Company (an "Acceleration Notice"), declare the principal amount of this Promissory Note to be due and payable immediately. Upon any such declaration, such amount shall become immediately due and payable.

 

	
  

	
5.

	
MISCELLANEOUS.

 

	
  

	
a.

	
All notices and other communications required or permitted to be given hereunder shall be in writing and shall be given (and shall be deemed to have been duly given upon receipt) by delivery in person, by telegram, by facsimile, recognized overnight mail carrier, telex or other standard form of telecommunications, or by registered or certified mail, postage prepaid, return receipt requested, addressed as follows: (a) if to the Holder, to such address as such Holder shall furnish to the Company in accordance with this Section, or (b) if to the Company, to it at its headquarters office, or to such other address as the Company shall furnish to the Holder in accordance with this Section.

 

  

  

  

 

	
  

	
b.

	
This Promissory Note shall be governed and construed in accordance with the laws of the State of New York applicable to agreements made and to be performed entirely within such state, without regard to choice or conflict of laws principles that would defer to the substantive laws of any other jurisdiction.

 

	
  

	
c.

	
All disputes hereunder shall be resolved exclusively by the Federal and State courts in Passaic County, New Jersey.

 

	
  

	
d.

	
The Holder of this Promissory Note shall be entitled to recover its reasonable legal and actual costs of collecting on this Promissory Note, and such costs shall be deemed added to the principal amount this Promissory Note.

 

	
  

	
e.

	
The Company waives protest, notice of protest, presentment, dishonor, notice of dishonor and demand.

 

	
  

	
f.

	
This Promissory Note may not be changed or terminated orally.

 

	
  

	
g.

	
This Promissory Note may be executed and delivered by facsimile or portable document format and in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.

 

	
  

	
h.

	
The Section headings in this Promissory Note are for convenience only.

 

IN WITNESS WHEREOF, the Company has caused this Promissory Note to be duly executed on the date set forth above.

	
CCOM GROUP, INC.

	  
	By:	 	 
	
Name: William Pagano

	 
	
Title: Chief Executive Officer

	 
	 	 
	 	 
	
Michael Goldman, personally

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