Document:

rtk-ex103_267.htm

		
	
Execution copy
	

 

Exhibit 10.3

Sixth Amendment Agreement

Date: April 13, 2017

BETWEEN:

 

		
	
Drax:
	
Seller:

	
 
	
 

	
Drax Power Limited

 

Drax Power Station

Selby

North Yorkshire

YO8 8PH

 

(Company number 04883589)

 
	
RTK WP Canada, ULC

10877 Wilshire Blvd

Suite 600

Los Angeles

CA 90024

United States

 

(Company number BC0962401)

 

	
(each a “Party” and together the “Parties”)
	
 

	
 
	
 

 

BACKGROUND:

	
A
	
The Parties entered into an agreement for the sale and purchase of Biomass on an FOB basis on 1 May 2013, as subsequently amended, (together the “Agreement”) and under which Rentech, Inc. (the “Guarantor”) guaranteed certain obligations of the Seller by way of a Parent Company Guarantee dated May 1, 2013 (“the Guarantee”).

	
B
	
The Parties now wish to amend the Agreement as set out below and have agreed to record these changes as set out herein by way of this “Sixth Amendment”. 

IT IS AGREED:

	
1.
	
In consideration of the Parties’ compliance with the terms of this Sixth Amendment and the payment of £1 from Buyer to Seller, the receipt and sufficiency of which the Parties acknowledge, the Parties have agreed to amend the Agreement on the terms set out in this Sixth Amendment with effect from the date of this Sixth Amendment.

	
2.
	
The provisions of this Sixth Amendment are legally binding between the Parties.  Unless otherwise defined, all capitalised terms used in this Sixth Amendment shall have the meaning given to them in the Agreement, and unless expressly amended in this Sixth Amendment, all terms of the Agreement shall remain fully effective.

 

Execution copy

 

	
3.
	
The Parties have agreed that an additional shipment (the “DY4 Additional Shipment”) shall be added to the Delivery Schedule for Delivery Year 4 and be delivered in accordance with the requirements of the Agreement other than as set out in this Sixth Amendment:

 

		
	
DY4 Additional Shipment

 

	
Volume:

 
	
A minimum of 11,000 Tonnes and a maximum of 12,000 Tonnes (at the Seller’s option).

 

	
Price:
	
CAD$132.50 based on the Benchmark CV NAR.

 

	
Seller Plant:
	
Williams Lake, British Columbia, Canada.

 

	
Laycan:
	
20 -30 April (being Drax’s confirmed Laycan in accordance with clause 15.1.3). 

 

	
Loading Rate:
	
12 000 Tonnes per Weather Working Day.

 

 

	
4.
	
Accordingly the Agreement is amended as follows:

	
 
	
4.1.
	
The first three lines of Section 2 of the Commercial Terms (Seller Plant(s)) shall be deleted and replaced with the following:

“The Seller may supply the Biomass from the following plant(s) (each a ”Seller Plant”) at the Seller’s discretion, subject to the conditions detailed:

 

			
	
Seller Plant
	
Location
	
Conditions applicable to use of Biomass from Seller Plant

	
Wawa
	
Ontario, Canada
	
None

	
Atikokan
	
Ontario, Canada
	
None

	
Williams Lake
	
British Columbia, Canada
	
Only to be used to supply a maximum of 12,000 Tonnes of Biomass all within the DY4 Additional Shipment.

	
 
	
4.2.
	
The following wording shall be added to the second paragraph of Section 9 of the Commercial Terms (Price), such that the sentence reads:

“Following the Agreement Date the price per Tonne of Biomass shall be determined using the following formula, except in the case of the DY4 Additional Shipment where the Price shall be a fixed  as described in the Sixth Amendment:”

	
 
	
4.3.
	
In Section 12 of the Commercial Terms (Annual Quantity) the fourth line shall be deleted and replaced with:

“Delivery Year 4: 204,317.50 to 205,317.50 Tonnes of Biomass”

	
 
	
4.4.
	
The following wording shall be added to the end of the second paragraph in Section 13 of the Commercial Terms (Delivery Schedule):

“and the DY4 Additional Shipment shall be delivered in a shipment size of between 11,000 and 12,000 Tonnes.”

The Guarantor consents to the Seller entering into this letter.  The Guarantor agrees that its Guarantee remains in full force and effect as to the Agreement supplemented by this letter.

 

Execution copy

 

This letter and any non-contractual obligations arising out of or in connection with it are subject to the Dispute Resolution and Governing Law and Jurisdiction provisions in clauses 35 and 36 of the Agreement.

This letter may be executed in any number of counterparts, and by any Party on separate counterparts, each of which as so executed and delivered shall be deemed an original, but all of which together shall constitute one and the same instrument, and it shall not be necessary in making proof of this letter as to any party hereto to produce or account for more than one such counterpart executed and delivered by such Party.  Counterparts may be executed either in original, faxed or digital transmission form and the Parties adopt any signatures received by a receiving fax machine or computer as original signatures of the Parties.

 

	
Signed:
	
/s/ Graham Backhouse
	
 
	
Signed:
	
/s/ Colin Morris

	
 
	
 
	
 

	
Duly authorised representative of 

Drax Power Limited:
	
 
	
Duly authorised representative of 

RTK WP CANADA, ULC

	
 
	
 
	
 
	
 
	
 

	
Name:
	
Graham Backhouse
	
 
	
Name:
	
Colin Morris 

	
Title:
	
Head of Supply Chain & Logistics
	
 
	
Title:
	
SVP & General Counsel

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
Signed:
	
/s/ Colin Morris

	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
Duly authorised representative of 

RENTECH, INC.

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
Name:
	
Colin Morris

	
 
	
 
	
 
	
Title:
	
SVP & General CounselExhibit 10.1

DESCRIPTION OF 2016 CASH BONUS PLAN

On February 20, 2017, the Compensation Committee (the "Committee") of the Board of Directors of Covenant Transportation Group, Inc., a Nevada corporation (the "Company"), approved performance-based bonus opportunities for the Company's senior management group (the "Program") under the Company's 2006 Omnibus Incentive Plan, as amended (the "Plan").  As set forth in the Plan, the Committee may choose from a range of defined performance measures.

Under the Program, and consistent with the objectives of the Plan, certain employees, including the Company's named executive officers, may receive bonuses upon satisfaction of fiscal 2017 consolidated earnings per share targets (and, for Sam Hough and Jim Brower, the satisfaction of fiscal 2017 operating income and operating ratio targets established for the Company's subsidiaries, Covenant Transport, Inc. ("CTI") and Star Transportation, Inc. ("Star"), respectively) (collectively, the "Performance Targets").  Each applicable Performance Target corresponds to a percentage bonus opportunity for the employee that is multiplied by the employee's 2017 year-end annualized salary to determine the employee's bonus.  Pursuant to the Program, in 2017 the Company's named executive officers are eligible to receive performance bonuses as follows: (i) David Parker may receive between 17.5% and 140.0% of his 2017 year-end annualized salary depending on the consolidated Performance Targets achieved, if any, (ii) Joey Hogan may receive between 16.25% and 130.0% of his 2017 year-end annualized salary depending on the consolidated Performance Targets achieved, if any, (iii) Richard Cribbs may receive between 12.5% and 100.0% of his 2017 year-end annualized salary depending on the consolidated Performance Targets achieved, if any, (iv) Sam Hough may receive between 3.75% and 30.0% of his 2017 year-end annualized salary depending on the consolidated Performance Targets achieved, if any, and between 8.75% and 70.0% of his 2017 year-end annualized salary depending on the Performance Targets achieved for CTI, if any, and (v) Jim Brower may receive between 3.75% and 30.0% of his 2017 year-end annualized salary depending on the consolidated Performance Targets achieved, if any, and between 8.75% and 70.0% of his 2017 year-end annualized salary depending on the Performance Targets achieved for Star, if any.  The performance bonuses based upon consolidated Performance Targets are subject to a 10.0% upward or downward adjustment depending upon year-over-year net income margin percent improvement/decline of the Company compared to five peer companies.

 

Back to Form 10-QExhibit 10.1

 

[BANK OF THE WEST LETTERHEAD]

 

 

April 19, 2017

 

 

CONDITIONAL WAIVER LETTER

 

 

H.D.D. LLC

125 Foss Creek Circle

Healdsburg, CA 95448

Attention: Phillip L. Hurst

 

		Re:	Loan and Security Agreement dated July 6, 2015 (the “Agreement”) executed by H.D.D. LLC (the “Borrower”)
and Bank of the West, a California banking corporation (the “Lender”).

 

Dear Mr. Hurst:

 

The Lender has become aware of certain breach of the terms of
the Agreement, which constitute an Event of Default thereunder. The breach is described as follows (references are to section of
the Agreement):

 

4.21(d) EBITDA to Current Portion of Long-Term
Debt plus Interest Expense. Borrower failed to maintain a ratio of (1) EBITDA plus contributions minus unfinanced capital expenditures
minus dividends, withdrawals and distributions to (2) Current Portion of Long-Term Debt plus Interest Expense, of not less than
1.25 to 1.0, measured at the end of each fiscal quarter for fiscal quarter ending 12/31/2016.

 

Except to the extent of this and any prior waiver, the Agreement
shall remain unaltered and in full force and effect. This letter shall not be a waiver of any existing Event of Default or breach
of a covenant unless specified herein, whether now existing or hereafter occurring and whether now known or hereafter discovered.

 

This waiver shall be effective only upon receipt by the
Bank of the enclosed acknowledgment copy executed by the Borrowers along with your payment for the waiver fee in the amount
of $5,000.00. If the foregoing is acceptable, please sign the enclosed copy and return, along with your payment,
alternatively by signing below, you hereby authorize Bank of the West to debit the company’s general account
#027-997189 for the amount due to the undersigned not later than May 10, 2017.

 

Sincerely,

 

Bank of the West,

a California banking corporation

 

 

 

	By: 	/s/ Marina Kremer	 
	 	Marina Kremer, Vice President	 

 

     

     

    

 

ACCEPTANCE

 

 

Borrower accepts the terms and conditions
of this Conditional Waiver Letter and agrees to be bound thereby. Borrower acknowledges that this acceptance constitutes Borrower’s
representation and warranty that Borrower has made no loans or extensions of credit to any person during the current fiscal year.

 

Accepted and Agreed to this     21    
day of April, 2017

 

 

Borrower:

 

H.D.D. LLC

 

	By:	Truett-Hurst, Inc., Manager

 

 

	 	By: 	/s/ Phillip L. Hurst	 
	 	 	Phillip L. Hurst, Chief Executive Officer/Chairman

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00270-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00270-of-00352.parquet"}], [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00270-of-00352.parquet"}]]