Document:

Exhibit 4.12

 

THIRD AMENDMENT TO CREDIT
AGREEMENT

 

This Third Amendment to Credit Agreement (this
“Third Amendment”) is made as of this 15th day of October, 2003 by and among
SEMCO ENERGY, INC., a Michigan corporation (the “Company”), STANDARD FEDERAL
BANK N.A. (“Standard Federal”) and the other banks signatory hereto and
Standard Federal, as agent for the Banks (in such capacity, “Agent”).

 

RECITALS

 

A.            Company,
Agent and the Banks entered into that certain Credit Agreement dated as of
June 25, 2002 under which the Banks extended (or committed to extend)
credit to the Company, as set forth therein, as amended by that certain First
Amendment to Credit Agreement (the “First Amendment”) dated May 21, 2003
and that certain Second Amendment to Credit Agreement (the “Second Amendment”)
dated September 30, 2003 (as so amended, the “Credit Agreement”).

 

B.            Company
has requested that Agent and the Banks amend certain terms and provisions of
the Credit Agreement and Agent and the Banks are willing to do so, but only on
the terms and conditions set forth in this Third Amendment.

 

NOW, THEREFORE, Company,
Agent and Banks agree:

 

1.                                       Section 1.1
is amended by deleting the definitions of “Consolidated Net Income” and
“Consolidated Net Worth” and inserting the following in their respective
places:

 

“Consolidated Net Income for any period means
the gross revenues of the Company and its Subsidiaries for such period less all
expenses but excluding all non-cash charges taken by the Construction Services
Subsidiaries in accordance with GAAP under Statement of Financial Accounting
Standards (“FAS”) No. 142 or FAS No. 144 during such period,
commencing with the period ending September 30, 2003 and less other proper
charges (including taxes on income), determined on a consolidated basis after
eliminating earnings (except to the extent provided in clause (f)
below) or losses attributable to outstanding Minority Interests, but excluding
in any event:

 

a)                                      any gains or
losses on the sale or other disposition of Investments or fixed or capital
assets, and any taxes on such excluded gains and any tax deductions or credits
on account of any such excluded losses;

 

b)                                     the proceeds of
any life insurance policy;

 

c)                                      net earnings
and losses of any Subsidiary accrued prior to the date it became a Subsidiary;

 

d)                                     net earnings
and losses of any corporation (other than a Subsidiary), substantially all the
assets of which have been acquired in any manner by the Company or any
Subsidiary, realized by such corporation prior to the date of such acquisition;

 

 

e)                                      net earnings
and losses of any corporation (other than a Subsidiary) with which the Company
or a Subsidiary shall have consolidated or which shall have merged into or with
the Company or a Subsidiary prior to the date of such consolidation or merger;

 

f)                                        net earnings of
any business entity (other than a Subsidiary) in which the Company or any
Subsidiary has an ownership interest unless such net earnings shall have
actually been received by the Company or such Subsidiary in the form of cash
distributions;

 

g)                                     any portion of
the net earnings of any Subsidiary which for any reason is unavailable for
payment of dividends to the Company or any other Subsidiary;

 

h)                                     earnings
resulting from any reappraisal, revaluation or write-up of assets;

 

i)                                         any deferred or
other credit representing any excess of the equity in any Subsidiary at the
date of acquisition thereof over the amount invested in such Subsidiary;

 

j)                                         any gain
arising from the acquisition of any Securities of the Company or any
Subsidiary;

 

k)                                      any reversal of
any contingency reserve, except to the extent that provision for such
contingency reserve shall have been made from income arising during such
period, and any gain or loss resulting from accounting method changes; and

 

l)                                         any items other
than those described in clauses (a) through f above of this
definition which are properly classified under GAAP as extraordinary items.”

 

“Consolidated Net Worth means, as of the date
of any determination thereof, the stockholders’ capital and surplus of the Company
determined in accordance with GAAP, and which shall include (whether or not
includible under GAAP) the principal amount of the Junior Capital, but without
taking into account the amount of any deferred or payable-in-kind interest,
whether or not includible under GAAP, and adding back an amount equal to all
non-cash charges, less any tax deductions or credits on account of such
charges, taken by the Construction Services Subsidiaries in accordance with
GAAP under FAS No. 142 or FAS No. 144 occurring on or after
September 30, 2003.”

 

2.                                       Section 1.1
is amended by inserting the following definition in its appropriate
alphabetical order:

 

“Construction Services Subsidiaries shall
mean Flint Construction Company, Iowa Pipeline Associates, Inc., K&B
Construction, Inc., Long’s Underground Technologies, Inc. and Sub-Surface
Construction Co.”

 

2

 

3.                                       This Third
Amendment shall become effective according to the terms hereof and as of such
date (the “Third Amendment Effective Date”) that the Company shall have
satisfied the following conditions:

 

(a)                                  Agent shall have received:

 

(i)                                     counterpart originals of
this Third Amendment, in each case duly executed and delivered by Company and
the requisite Banks, in form satisfactory to Agent and the Banks; and

 

(ii)                                  such other documents as
Agent may reasonably request.

 

(b)                                 After giving effect to the
terms of this Third Amendment, no Unmatured Event of Default or Event of
Default shall have occurred and be continuing or shall result from the
execution and delivery of this Third Amendment.

 

(c)                                  If the Third Amendment
Effective Date shall not have occurred on or before October 15, 2003, this
Third Amendment shall not become effective and the offer by the Agent and the
Banks to amend the Credit Agreement on the terms set forth herein shall be
deemed withdrawn.

 

4.                                       The Company for
itself and each of the Subsidiaries hereby represents and warrants that, after
giving effect to the amendments contained herein, (a) execution and delivery
of this Third Amendment, and the performance by the Company of its obligations
under the Credit Agreement as amended hereby are within such undersigned’s
corporate powers, have been duly authorized, are not in contravention of law or
the terms of its articles of incorporation, bylaws or any other organizational
documents of the parties thereto, as applicable, and except as have been
previously obtained, do not require the consent or approval, material to the
amendments contemplated in this Third Amendment or Credit Agreement, as amended
hereby, of any governmental body, agency or authority, and this Third Amendment
and the Credit Agreement, as amended hereby, will constitute the valid and
binding obligations of such undersigned parties, enforceable in accordance with
their respective terms, except as enforcement thereof may be limited by
applicable bankruptcy, reorganization, insolvency, moratorium, ERISA or similar
laws affecting the enforcement of creditors’ rights generally and by general
principles of equity (whether enforcement is sought in a proceeding in equity
or at law), and (b) the representations and warranties contained in
Section 9 of the Credit Agreement are true and correct on and as of the
date hereof, except to the extent such representations and warranties speak
only as of another date certain.

 

5.                                       Except as
specifically set forth herein, this Third Amendment shall not be deemed to
amend or alter in any respect the terms and conditions of the Credit Agreement,
any of the Notes issued thereunder or any of the Loan Documents, or to
constitute a waiver by the Banks or Agent of any right or remedy under or a
consent to any transaction not meeting the terms and conditions of the Credit
Agreement, any of the Notes issued thereunder or any of the other Loan
Documents.

 

3

 

6.                                       Unless
otherwise defined to the contrary herein, all capitalized terms used in this
Third Amendment shall have the meaning set forth in the Credit Agreement, as
amended.

 

7.                                       This Third
Amendment shall be construed in accordance with and governed by the laws of the
State of Michigan.

 

8.                                       Any references
in the Loan Documents to the Credit Agreement shall be deemed a reference to
the Credit Agreement as amended by the First Amendment, the Second Amendment
and this Third Amendment.

 

[SIGNATURES FOLLOW ON SUCCEEDING
PAGES]

 

4

 

WITNESS the due
execution hereof as of the day and year first above written.

 

	
   

  	
  SEMCO ENERGY, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ John E. Schneider

  	
   

  
	
   

  	
   

  
	
   

  	
  Title: Senior Vice President & CFO

  

 

5

 

	
   

  	
  STANDARD FEDERAL BANK
  N.A., a national

  banking association, as Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Dennis J. Harder

  	
   

  
	
   

  	
   

  
	
   

  	
  Title: First Vice President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  STANDARD FEDERAL BANK
  N.A., a national

  banking association, as Issuing Bank, as Swing

  Line Bank and as a Bank

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Dennis J. Harder

  	
   

  
	
   

  	
   

  
	
   

  	
  Title: First Vice President

  
					

 

6

 

	
   

  	
  KEYBANK
  NATIONAL ASSOCIATION, as

  Syndication Agent and as a Bank

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Sherrie I. Manson

  	
   

  
	
   

  	
   

  
	
   

  	
  Title: Vice President

  

 

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  NATIONAL CITY BANK OF
  MICHIGAN / 

  ILLINOIS, as Documentation Agent and as a

  Bank

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Marybeth S. Howe

  	
   

  
	
   

  	
   

  
	
   

  	
  Title: Executive Vice President

  

 

8

 

	
   

  	
  THE HUNTINGTON NATIONAL
  BANK, as a

  Bank

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Kevin D. Szachta

  	
   

  
	
   

  	
   

  
	
   

  	
  Title: Vice President

  

 

9

 

	
   

  	
  FIFTH THIRD BANK, EASTERN
  MICHIGAN,

  as a Bank

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Andre Nazareth

  	
   

  
	
   

  	
   

  
	
   

  	
  Title: Vice President

  

 

10Filed by Automated Filing Services Inc. (604) 609-0244 - Icoworks, Inc. - Exhibit 10.2

DATED: January 2, 2002 

Antares Investments Ltd. 

 - and -

TradeZap, Inc. 

 THIS CONSULTING AGREEMENT is made as of the 2nd day
  of January 2002. 

BETWEEN: 

  

	 	Antares Investments Ltd. of 

        PO Box 267 Leeward Highway 

        Providenciales, Turks & Caicos Islands 

       (hereinafter referred to as the “Consultant”) 

OF THE FIRST PART  

 AND: 

	 	TradeZap, Inc.  

        1001 4th Ave, Suite 3200

        Seattle, Washington 98154 

       (hereinafter referred to as the “Corporation”) 

 OF THE SECOND PART  

 WHEREAS the Corporation wishes to retain the Consultant
  for its business and the Consultant has agreed to provide such services to the
  Corporation; 

 NOW THEREFORE THIS AGREEMENT WITNESSETH that in consideration
  of the mutual covenants and agreements herein contained and for other good and
  valuable consideration, it is hereby agreed by and between the parties as follows:

 ARTICLE 1

  Definitions  

 1.1     For the purposes of this
  Agreement, “Consulting Services” shall mean the international business
  affairs, corporate management and investor relations services relating to the
  business, products and services of the Corporation to be provided by the Consultant,
  and in particular but without restricting the generality of the foregoing, means
  managing, guiding and controlling the international affairs of the corporation
  in such a manner as to enable the corporation to accomplish its objectives as
  set forth by the Board of Directors. The consultant shall also be responsible
  for arranging ongoing financial relationships with investment bankers, venture
  capitalists, project financiers and legal contacts relating thereto. The Consultant
  shall attend or represent the Corporation at any applicable conferences and
  meetings, as directed by the Corporation. The Consultant will formulate an investor
  relations and awareness program, provide the Company with recommendations of
  candidates to carry out such program and manage the ongoing delivery of the
  program. The Consultant will also seek out merger and acquisition targets for
  the Company and complete the due diligence necessary to report to the Board
  of 

2

 Directors. The Consultant shall provide liaison with the financial
  backers of the Company and future financial partners. The Consultant shall provide
  such materials to individuals upon request and the Corporation agrees to provide
  the Consultant with sufficient materials to fulfill these requests and to defray
  all attendant costs. The Consultant shall assist in the continual updating of
  the Company’s business plan and in the locating and selection of ongoing
  personnel needs, including the senior officers of the Company. 

 1.2     The terms “subsidiaries”,
  “associates” and “affiliated corporations” as used in this
  Agreement shall have the meanings ascribed thereto in the Corporation’s
  business plan. 

 1.3     The duties of the consultant will include
  the following activities 

	Researching industries for potential investment
	Seeking merger candidates in the industry selected
	Negotiating merger terms and specifications
	Corporate structuring
	Liaison with the financiers of the Company
	Completing requirements of Letters of Intent with financiers or partners
	Preparation of valuation reports
	Recruitment of senior personal
	Source and negotiate additional acquisition targets
	Formulating a marketing plan
	Create an image program
	Coordinate the preparation of a comprehensive Business Plan
	Locating and negotiations of vendor contracts
	All activities of a CEO
	Recruiting a replacement

 ARTICLE 2

  Engagement of the Consultant and its Duties  

 2.1     The Corporation hereby engages
  the services of the Consultant and the Consultant hereby accepts the engagement
  of its services by the Corporation, subject to the terms and conditions hereinafter
  contained. 

 2.2     The Consultant shall provide
  the Consulting Services to the Corporation in such manner as the Corporation
  and the Consultant may reasonably agree, and shall devote such of its time as
  is necessary to properly render the Consulting Services to the Corporation,
  and all its effect, skills, attention and energies during that time to the performance
  of its duties as herein set forth. In addition to the foregoing, the Consultant
  will ensure that the services to be provided will be carried out by the qualified
  and competent employees of the Consultant who are familiar with the Corporation’s
  affairs, business and products. 

3

 2.3     The Corporation acknowledges
  that it is aware of the Consultant’s many outside activities, duties and
  financial interests and agrees that the performance of such activities and duties
  and involvement of such financial interest will not be construed as a breach
  of this Agreement, provided that the Consultant provides the Consulting Services
  on a basis which does not impair the activities and business interest of either
  the Corporation or the Consultant. 

 2.4     In the performance of the
  services to be rendered by the Consultant, the Consultant will be relying upon
  information received from the Corporation, and will so disclose this fact in
  all communications from the Consultant. The Corporation agrees to provide the
  Consultant with such information, financial records, documents and product information
  as may facilitate the performance of the Consulting Services by the Consultant.

 2.5     In the event of any misstatements,
  misrepresentations or omissions in information as provided by the Corporation
  to the Consultant and as utilized by the Consultant in the performance of the
  Consulting Services that may result in liability to the Consultant, the Corporation
  agrees to indemnify and same harmless the Consultant against any such claims
  or liabilities. 

 2.6     The Consultant agrees that it will perform
  the Consulting Services in accordance with all applicable laws. 

 2.7     The Consultant agrees to
  indemnify and save the Corporation harmless with respect to any claim, suit,
  proceedings or judgment, whether regulatory or of a court of competent jurisdiction
  arising from any breach of the Agreement by the Consultant. 

 2.8     The term of this Agreement
  shall commence of the 2nd day of January 2002 for a period of not less than
  6 months and may be extended upon mutual consent of the parties. 

 2.9     Notwithstanding section 2.8,
  the Company may terminate this Agreement by providing the Consultant with at
  least 60 days written notice and providing the Consultant with a cancellation
  payment equal to six months fees plus any unpaid portion of the minimum six
  months. 

 ARTICLE 3

  Compensation  

 3.1     The Corporation agrees to
  pay the Consultant, in consideration of the provision by the Consultant of the
  Consulting Services to the Corporation, the sum of US$17,000 dollars per month
  commencing January 2, 2002. This fee is based on the consultant providing a
  minimum of two senior staff for approximately two third of a normal work month
  each to the project. 

4

 3.2     The Corporation agrees to
  reimburse the Consultant for all reasonable disbursements including travel and
  accommodations expenses, printing and mailing costs, long-distance charges,
  outside services, and all other out-of-pocket expenses incurred by the Consultant
  in the performance of its obligations pursuant to this Agreement. The Consultant
  agrees to provide us the Corporation with original receipts for disbursements
  and expenses incurred where procurable. 

 3.3     The parties agree that from
  time to time the contract may be reduced or expanded in scope or may be temporarily
  suspended for a period of time. Payments will be altered to reflect this situation.

 3.4     The Corporation agrees to make payments to
  such parties as may be directed by the Consultant. 

 ARTICLE 4

  Confidentiality  

 4.1     The Consultant will not,
  directly or indirectly, use, disseminate, disclose, communicate, divulge, reveal,
  publish, use for its own benefits, copy, make notes of, input into a computer
  data base or preserve in any way any confidential information relating to the
  Corporation or its subsidiaries, associates or affiliated corporations whether
  during the term of this Agreement or thereafter, unless it first received written
  permission to do so from an authorized officer of the Corporation. 

 4.2     For the purposes of this
  Agreement, “Confidential information” is information disclosed to
  or acquired by the Consultant relating to the business of the Corporation or
  its subsidiaries, associates or affiliated corporation, their projects or the
  personal affairs of their directors, officers and shareholders, including information
  developed or gathered by the Consultant which has not been approved by the Corporation
  for public dissemination. Confidential information does not include information
  in the public domain, information released from the provisions of this Agreement
  by written authorization of an authorized officer of the Corporation, information
  which is part of the general skill and knowledge of the Consultant and does
  not relate specifically to the business of the Corporation and information which
  is authorized by the Corporation to be disclosed in the ordinary course or is
  required by law or applicable regulatory policy to be disclosed. 

 ARTICLE 5

  Miscellaneous  

 5.1     Any notice required or permitted
  to be given hereunder shall be given by hand delivery, facsimile transmission
  or by registered mail, postage prepaid, addressed to the parties at their respective
  addresses as previously set forth and any such notices given by and delivery
  of by facsimile transmission shall be deemed to have been received on the 

5

 date of delivery or transmission and if given by prepaid registered
  mail, shall be deemed to have been received on the third business day immediately
  following the date of mailing. The parties shall be entitled to give notice
  of changes of addresses from time to time in the manner hereinbefore provided
  for the giving of notice. 

 5.2     Time shall be the essence of this Agreement.

 5.3     The provisions of this Agreement
  shall enure to the benefit of and be binding upon the Corporation and the Consultant
  and their respective successors and assigns. This Agreement shall not be assignable
  by the Consultant. 

 5.4     This Agreement constitutes
  the entire agreement between the parties hereto pertaining to the subject matter
  hereof and supersedes all prior and contemporaneous agreements, understanding,
  negotiations and discussion, whether oral or written of the parties hereto in
  connection with the subject matter hereof. No supplement, modification, waiver
  or termination of this Agreement shall be binding unless executed in writing
  by the parties to be bound thereby. 

IN WITNESS WHEREOF this Agreement has been executed by the parties.

ANTARES INVESTMENTS LTD. 

	Per:	 	 
	 	/s/ Graham Douglas	 
	 	 
	 
	 	 	 
	 	 
	 
	 	Print Name	 

TRADEZAP, INC. 

	Per:	 	 
	 	/s/ Ian Brodie	 
	 	
      
	 
	 	 	 
	 	IAN BRODIE	 
	 	
      
	 
	 	Print Name

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