Document:

Exhibit 10.4

RESTRICTED STOCK UNIT AGREEMENT

VOYAGER OIL & GAS, INC.

2011 EQUITY INCENTIVE PLAN

THIS AGREEMENT, made effective as of this              day of                             , 20___, by and between Voyager Oil & Gas, Inc., a Montana corporation (the “ Company”), and _____________________ (“Participant”).

WITNESSETH:

WHEREAS, Participant on the date hereof is an Employee, Director of, or Consultant to the Company or one of its Subsidiaries; and

 

WHEREAS, the Company wishes to grant a restricted stock unit award to Participant for shares of the Company’s Common Stock pursuant to the Company’s 2011 Equity Incentive Plan (the “Plan”); and

WHEREAS, the Administrator of the Plan has authorized the grant of a restricted stock unit award to Participant;

NOW, THEREFORE, in consideration of the premises and of the mutual covenants herein contained, the parties hereto agree as follows:

 

1.           Grant of Restricted Stock Unit Award; Term.  The Company hereby grants to Participant on the date set forth above a restricted stock unit award (the “Award”) for  ________ restricted stock units on the terms and conditions set forth herein.  Each restricted stock unit shall entitle the Participant to receive either one share of the Company’s Common Stock or a cash payment in accordance with Paragraph 3 below.

2.           Vesting of Restricted Stock Units.

a.           General. The restricted stock units subject to this Award shall vest according to the following schedule:

	
Specified Date or Achievement

	  	
Number of Units

	  
	
(each, a “Vesting Time”)

	  	
that Vest

	  
	  	  	  	  
	
[Exact time/procedures for certifying achievement should be determined when Award is approved and specified in this Section]

	  	
[To be completed]

	  

 

  

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b.           Termination of Relationship.  If Participant ceases to be [an Employee] [a Consultant] [a Director] of the Company or any Subsidiary at any time during the term of the Award, for any reason, this Award shall terminate and all restricted stock units subject to this Award that have not vested shall be forfeited by Participant.

 

3.           Issuance of Shares or Payment.  Upon each Vesting Time, the Company shall cause to be issued and delivered to Participant a stock certificate (or, upon request and if permitted in the Administrator’s discretion, an entry to be made in the books of the Company or its designated agent) representing that number of shares of Common Stock which is equivalent to the number of restricted stock units that have vested, less any shares withheld for payment of taxes as provided in Section 4(e) below, and shall deliver such certificate to Participant.  Until the Vesting Time, Participant shall not be entitled to vote the shares of Common Stock represented by such restricted stock units, shall not be entitled to receive dividends attributable to such shares of Common Stock, and shall not have any other rights as a shareholder with respect to such shares.

 

Alternatively, the Company may, in its sole discretion, pay Participant a lump sum payment, in cash, equal to the Fair Market Value of that number of shares of Common Stock which is equivalent to the number of restricted stock units that have vested, subject to the withholding provisions of Section 4(f) below.  Such Fair Market Value shall be determined as of each Vesting Time.  If the Company makes such cash payment, the Participant shall not be entitled to vote the shares of Common Stock represented by such restricted stock units, shall not be entitled to receive dividends attributable to such shares of Common Stock, and shall not have any other rights as a shareholder with respect to such shares, whether before or after the Vesting Time.

 

The Company will issue shares of Common Stock or make a cash payment pursuant to this Award as soon as practicable following the applicable Vesting Time, but in no event beyond 2 1⁄2 months after the end of the calendar year in which the Vesting Time occurs.

 

4.           General Provisions.

 

a.           Employment or Other Relationship.  This Agreement shall not confer on Participant any right with respect to continuance of employment or any other relationship by the Company or any of its Affiliates, nor will it interfere in any way with the right of the Company to terminate such employment or relationship.  Nothing in this Agreement shall be construed as creating an employment or service contract for any specified term between Participant and the Company or any Affiliate.

 

b.           280G Limitations.  Notwithstanding anything in the Plan, this Agreement or in any other agreement, plan, contract or understanding entered into from time to time between Participant and the Company or any of its Subsidiaries to the contrary (except an agreement that expressly modifies or excludes the application of this Paragraph 4(b)), the vesting of this Award shall not be accelerated in connection with a Change of Control to the extent that such acceleration, taking into account all other rights, payments and benefits to which Participant is entitled under any other plan or agreement, would  constitute a "parachute payment" or an "excess parachute payment" for purposes of Code Sections 280G and 4999, or any successor provisions, and the regulations issued thereunder; provided, however, that the Administrator, in its sole discretion and in accordance with applicable law, may modify or exclude the application of this Paragraph 4(b).

  

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c.           Securities Law Compliance.  Participant shall not transfer or otherwise dispose of the shares of Common Stock received pursuant to this Award until such time as the Company and its counsel shall have determined that such transfer or other disposition will not violate any state or federal securities laws.  Participant may be required by the Company, as a condition of the effectiveness of this Award, to give any written assurances that are necessary or desirable in the opinion of the Company and its counsel to ensure the issuance complies with applicable securities laws, including that all Common Stock subject to this Award shall be held, until such time that such Common Stock is registered and freely tradable under applicable state and federal securities laws, for Participant’s own account without a view to any further distribution thereof; that the certificates (or, if permitted, book entries) for such shares shall bear an appropriate legend or notation to that effect; and that such shares will be not transferred or disposed of except in compliance with applicable state and federal securities laws.

 

d.           Mergers, Recapitalizations, Stock Splits, Etc. Except as otherwise specifically provided in any employment, change of control, severance or similar agreement executed by Participant and the Company, pursuant and subject to Section 14 of the Plan, certain changes in the number or character of the shares of Common Stock of the Company (through merger, consolidation, exchange, reorganization, divestiture (including a spin-off), liquidation, recapitalization, stock split, stock dividend or otherwise) shall result in an adjustment, reduction or enlargement, as appropriate, in Participant’s rights with respect to any unvested restricted stock units subject to this Award (i.e., Participant shall have such “anti-dilution” rights under the Award with respect to such events, but shall not have “preemptive ” rights).

 

e.           Shares Reserved.  The Company shall at all times during the term of this Agreement reserve and keep available such number of shares as will be sufficient to satisfy the requirements of this Agreement.

 

f.           Withholding Taxes.  To permit the Company to comply with all applicable federal and state income tax laws or regulations, the Company may take such action as it deems appropriate to ensure that, if necessary, all applicable federal and state payroll, income or other taxes attributable to this Award are withheld from any amounts payable by the Company to Participant.  If the Company is unable to withhold such federal and state taxes, for whatever reason, the Participant hereby agrees to pay to the Company an amount equal to the amount the Company would otherwise be required to withhold under federal or state law prior to the issuance of any certificates (or, if permitted, book entries) for the shares of Common Stock subject to this Award.  Subject to such rules as the Administrator may adopt, the Administrator may, in its sole discretion, permit Participant to satisfy such withholding tax obligations, in whole or in part, by delivering shares of the Company’s Common Stock, including shares of Common Stock received pursuant to this Award, having a Fair Market Value, as of the date the amount of tax to be withheld is determined under applicable tax law, equal to the statutory minimum amount required to be withheld for tax purposes.  In no event may Participant deliver shares having a Fair Market Value in excess of such statutory minimum required tax withholding.   Participant’s election to deliver shares or to have shares withheld for this purpose shall be made on or before the date that the amount of tax to be withheld is determined under applicable tax law, and shall be irrevocable as of such date if approved by the Administrator.  Such election shall comply with such rules as the Administrator may adopt to assure compliance with Rule 16b-3, if applicable.

  

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g.           Nontransferability.  No portion of this Award that has not vested may be assigned or transferred, in whole or in part, other than by will or by the laws of descent and distribution.

 

h.           2011 Equity Incentive Plan .  The Award evidenced by this Agreement is granted pursuant to the Plan, a copy of which Plan has been made available to Participant and is hereby incorporated into this Agreement.  This Agreement is subject to and in all respects limited and conditioned as provided in the Plan.  All capitalized terms in this Agreement not defined herein shall have the meanings ascribed to them in the Plan.  The Plan governs this Agreement and, in the event of any questions as to the construction of this Agreement or in the event of a conflict between the Plan and this Agreement, the Plan shall govern, except as the Plan otherwise provides.

 

i.           Lockup Period Limitation.  Participant agrees that in the event the Company advises Participant that it plans an underwritten public offering of its Common Stock in compliance with the Securities Act of 1933, as amended, Participant will execute any lock-up agreement the Company and the underwriter(s) deem necessary or appropriate, in their sole discretion, in connection with such public offering.

 

j.           Blue Sky Limitation.  Notwithstanding anything in this Agreement to the contrary, in the event the Company makes any public offering of its securities and determines, in its sole discretion, that it is necessary to reduce the number of issued but unvested restricted stock units so as to comply with any state securities or Blue Sky law limitations with respect thereto, the Board of Directors of the Company shall accelerate the vesting of this restricted stock unit award, provided that the Company gives Participant 15 days’ prior written notice of such acceleration.  Notice shall be deemed given when delivered personally or when deposited in the United States mail, first class postage prepaid and addressed to Participant at the address of Participant on file with the Company.

 

k.           Affiliates.  Participant agrees that, if Participant is an “affiliate” of the Company or any Affiliate (as defined in applicable legal and accounting principles) at the time of a Change of Control (as defined in Section 1(e) of the Plan), Participant will comply with all requirements of Rule 145 of the Securities Act of 1933, as amended, and the requirements of such other applicable legal or accounting principles, and will execute any documents necessary to ensure such compliance.

 

  

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l.           Stock Legend.  The Administrator may require that the certificates for any shares of Common Stock issued to Participant (or, in the case of death, Participant’s successors) under this Agreement shall bear an appropriate legend to reflect the restrictions of Paragraph 4(c) and Paragraphs 4(i) through 4(k) of this Agreement; provided, however, that failure to so endorse any of such certificates shall not render invalid or inapplicable Paragraph 4(c) or Paragraphs 4(i) through 4(k).

 

m.           Scope of Agreement.  This Agreement shall bind and inure to the benefit of the Company and its successors and assigns and Participant and any successor or successors of Participant permitted by this Agreement.  This Award is expressly subject to all terms and conditions contained in the Plan and in this Agreement, and Participant’s failure to execute this Agreement shall not relieve Participant from complying with such terms and conditions.

 

n.           Choice of Law.  The law of the state of Montana shall govern all questions concerning the construction, validity, and interpretation of this Plan, without regard to that state’s conflict of laws rules.

 

o.           Severability.  In the event that any provision of this Plan shall be held illegal or invalid for any reason, such illegality or invalidity shall not affect the remaining provisions of this Plan, and the Plan shall be construed and enforced as if the illegal or invalid provision had not been included.

 

p.           Arbitration.  Any dispute arising out of or relating to this Agreement or the alleged breach of it, or the making of this Agreement, including claims of fraud in the inducement, shall be discussed between the disputing parties in a good faith effort to arrive at a mutual settlement of any such controversy.  If, notwithstanding, such dispute cannot be resolved, such dispute shall be settled by binding arbitration.  Judgment upon the award rendered by the arbitrator may be entered in any court having jurisdiction thereof.  The arbitrator shall be a retired state or federal judge or an attorney who has practiced securities or business litigation for at least 10 years.  If the parties cannot agree on an arbitrator within 20 days, any party may request  that the chief judge of the District Court of Yellowstone County, Montana, select an arbitrator.  Arbitration will be conducted pursuant to the provisions of this Agreement, and the commercial arbitration rules of the American Arbitration Association, unless such rules are inconsistent with the provisions of this Agreement.  Limited civil discovery shall be permitted for the production of documents and taking of depositions.  Unresolved discovery disputes may be brought to the attention of the arbitrator who may dispose of such dispute. The arbitrator shall have the authority to award any remedy or relief that a court of this state could order or grant; provided, however, that punitive or exemplary damages shall not be awarded.  The arbitrator may award to the prevailing party, if any, as determined by the arbitrator, all of its costs and fees, including the arbitrator’s fees, administrative fees, travel expenses, out-of-pocket expenses and reasonable attorneys’ fees.  Unless otherwise agreed by the parties, the place of any arbitration proceedings shall be Yellowstone County, Montana.

 

***Signature Page Follows***

  

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ACCORDINGLY, the parties hereto have caused this Agreement to be executed on the day and year first above written.

	  	
Voyager Oil & Gas, Inc.

	  	  	  
	  	
By:

	
  

	
  

	  	  	
Its:

	
  

	
  

	 	 	 
	  	
  

	
  

	  	
Participant

	  

[Signature Page to Restricted Stock Unit Agreement]

 

  

6Unassociated Document

 

TENTH AMENDMENT TO LOAN AGREEMENT

AND OTHER LOAN DOCUMENTS

THIS TENTH AMENDMENT TO LOAN AGREEMENT AND OTHER LOAN DOCUMENTS (this “Amendment”) is dated as of October 27, 2011, among DGSE COMPANIES, INC., a Nevada corporation (“Borrower”), and TEXAS CAPITAL BANK, NATIONAL ASSOCIATION, a national banking association (“Lender”).

A.           Borrower and Lender are party to that certain Loan Agreement dated as of December 22, 2005 (as modified, amended, renewed, extended, and restated, the “Loan Agreement”).

B.           Borrower and Lender have agreed, upon the following terms and conditions, to amend the Loan Agreement and certain other Loan Documents.

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

1.   Terms and References.  Unless otherwise stated in this Amendment, (a) terms defined in the Loan Agreement have the same meanings when used in this Amendment, and (b) references to “Sections” are to the Loan Agreement’s sections.

2.   Consent.  Borrower has notified Lender that (a) Borrower has issued shares of its capital stock to NTR Metals, LLC (“NTR”) in connection with the conversion of certain payables of Borrower and the acquisition of the assets of Southern Bullion Trading, LLC by SBT, Inc., a Nevada corporation and subsidiary of Borrower (“SBT”), (the “NTR Stock Purchases”); (b) prior to or simultaneously with the execution of this Amendment, NTR converted certain payables of Borrower in exchange for options to acquire capital stock of Borrower (the “Stock Option Purchase”); and (c) L.S. Smith sold 1,000,000 shares of capital stock of Borrower to NTR (the “Smith Purchase”; and together with the NTR Stock Purchases and the Stock Option Purchase, the “Stock Transactions”).  Lender hereby consents to the Stock Transactions; subject to the satisfaction of the conditions precedent set forth in Section 5 below.  Except as expressly set forth in this Section 2, the consent given pursuant to this Section 2 is not intended to operate as a waiver of any rights of Lender under the Loan Agreement and the Loan Documents.  In addition, Lender has not waived its right to insist upon strict compliance with the Loan Agreement of the Loan Documents.

3.   Amendments to Loan Agreement.

(a)   Section 1.1 is hereby amended by adding the following definition of “Change of Control” in the appropriate alphabetical order:

 

“Change of Control” means (a) any change in the chief executive officer or president of Borrower, when compared to the management as of the date of this Agreement; or (b) more than twenty-five percent (25%) of the record or beneficial ownership of Borrower shall have been transferred, assigned or hypothecated to any Person (other than NTR Metals, LLC); or (c) NTR Metals, LLC shall cease to own at least forty percent (40%) of the record or beneficial ownership of Borrower; or (d) after December 31, 2011 and during any period of twelve consecutive months, a majority of the members of the board of directors or other equivalent governing body of Borrower cease to be composed of individuals (i) who were members of that board or equivalent governing body on the first day of such period, (ii) whose election or nomination to that board or equivalent governing body was approved by individuals referred to in clause (i) above constituting at the time of such election or nomination at least a majority of that board or equivalent governing body or (iii) whose election or nomination to that board or other equivalent governing body was approved by individuals referred to in clauses (i) and (ii) above constituting at the time of such election or nomination at least a majority of that board or equivalent governing body (excluding, in the case of both clause (ii) and clause (iii), any individual whose initial nomination for, or assumption of office as, a member of that board or equivalent governing body occurs as a result of an actual or threatened solicitation of proxies or consents for the election or removal of one or more directors by any person or group other than a solicitation for the election of one or more directors by or on behalf of the board of directors).

 

 

 

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(b)   Section 1.1 is hereby amended by deleting the definitions of “Guarantor” and “Guaranty” and substituting the following in lieu thereof:

 

“Guarantor” means any Person who from time to time guarantees all or any part of the Obligation, including, without limitation, the Subsidiary Guarantors.

 

“Guaranty” means a written guaranty of each Guarantor in favor of Lender, in form and substance satisfactory to Lender, as the same may be amended, modified, restated, renewed, replaced, extended, supplemented or otherwise changed from time to time.

 

(c)   Section 1.1 is hereby amended by deleting the definitions of “Limited Guarantor” and “Limited Guaranty”.

 

(d)   Section 7.1(p) is hereby deleted in its entirety, and the following new Section 7.1(p) is substituted in lieu thereof:

 

(p)    Reserved.

 

(e)   Section 8.6 is hereby deleted in its entirety, and the following new Section 8.6 is substituted in lieu thereof:

 

Section 8.6   Reserved.

 

(f)   Section 9.1 is hereby deleted in its entirety, and the following new Section 9.1 is substituted in lieu thereof:

 

Section 9.1   Consolidated Tangible Net Worth.  Borrower shall not permit, as of any date, Tangible Net Worth of Borrower and its Subsidiaries, on a consolidated basis, to be less than Twenty-Four Million Dollars ($24,000,000).

(g)   Article IX is hereby amended by inserting a new Section 9.4 as follows:

 

Section 9.4   Capital Expenditures.  Borrower shall not permit the aggregate non-financed Capital Expenditures of Borrower and its Subsidiaries to exceed $1,000,000 during any fiscal year, commencing with Borrower’s fiscal year ending December 31, 2011.  For purposes of determining compliance with this Section 9.4, (a) any Capital Expenditures funded with the cash proceeds of any issuance of equity of Borrower; and (b) any Capital Expenditures funded with the proceeds of additional debt permitted under this Agreement shall be considered financed Capital Expenditures.

 

 

 

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(h)   Section 10.1(j) is hereby amended in its entirety, and the following new Section 10.1(j) is substituted in lieu thereof:

 

(j)    A Change of Control shall occur.

 

(i)   Exhibit B (but not Schedule A to Exhibit B) attached to the Loan Agreement is hereby deleted in its entirety and replaced with Exhibit B attached hereto.

 

4.   Amendments to Other Loan Documents.

(a)   All references in the Loan Documents to the Loan Agreement shall henceforth include references to the Loan Agreement, as modified and amended hereby, and as may, from time to time, be further amended, modified, extended, renewed, and/or increased.

 

(b)   Any and all of the terms and provisions of the Loan Documents are hereby amended and modified wherever necessary, even though not specifically addressed herein, so as to conform to the amendments and modifications set forth herein.

 

5.   Conditions Precedent.  This Amendment shall not be effective until (a) Lender receives an executed copy of this Amendment, including the ratifications attached hereto; (b) Lender receives payment of the estimated reasonable fees and expenses of Lender’s counsel incurred in connection with this Amendment in immediately available funds; (c) Lender receives, and is satisfied with, copies of all documents relating to the acquisition by SBT of the assets of Southern Bullion Trading, LLC, certified by Borrower’s Secretary of Assistant Secretary as true, correct and complete copies of such documents; (d) Lender receives (i) a Guaranty (the “SBT Guaranty”) dated of even date herewith and executed by SBT and (ii) a Security Agreement (the “SBT Security Agreement”) dated of even date herewith and executed by SBT; (e) Lender receives, and is satisfied with, copies of all documents relating to the Stock Transactions, certified by Borrower’s Secretary of Assistant Secretary as true, correct and complete copies of such documents; (f) all representations and warranties set forth in this Amendment are true and correct; (g) after giving effect to this Amendment, no Default or Event of Default exists; (h) Lender receives a certificate of incumbency for Borrower certified by its Secretary or an Assistant Secretary certifying (i) the name of each of its officers who is authorized to sign this Amendment, (ii) a true and correct copy of the resolutions of the directors of Borrower which authorize its execution and delivery of this Amendment, and the performance of the Loan Documents as amended hereby, and (iii) that the charter and bylaws of Borrower have not been amended since December 22, 2005, and that the same are still in effect; (i) Lender receives a certificate of incumbency for SBT certified by its Secretary or an Assistant Secretary certifying (i) the name of each of its officers who is authorized to sign the SBT Guaranty and the SBT Security Agreement, (ii) a true and correct copy of the resolutions of the directors SBT which authorize its execution and delivery of the SBT Guaranty and the SBT Security Agreement, and (iii) the Constituent Documents of SBT; (j) Lender receives a certificate evidencing the existence and good standing of Borrower from the Secretary of State of the State of Nevada; and (k) Lender receives a certificate evidencing the existence and good standing of SBT from the Secretary of State of the State of Nevada.

 

 

 

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6.   Ratifications. Borrower (a) ratifies and confirms all provisions of the Loan Documents as amended by this Amendment, (b) ratifies and confirms that all Liens granted, conveyed, or assigned to Lender under the Loan Documents are not released, reduced, or otherwise adversely affected by this Amendment and continue to guarantee, assure, and secure full payment and performance of the present and future Obligations, and (c) agrees to perform such acts and duly authorize, execute, acknowledge, deliver, file, and record such additional documents, and certificates as Lender may request in order to create, perfect, preserve, and protect those guaranties, assurances, and Liens.

7.   Representations. Borrower represents and warrants to Lender that as of the date of this Amendment: (a) this Amendment has been duly authorized, executed, and delivered by Borrower; (b) other than the filing of the Loan Agreement and this Amendment with the Securities and Exchange Commission, no action of, or filing with, any governmental authority is required to authorize, or is otherwise required in connection with, the execution, delivery, and performance by Borrower of this Amendment; (c) the Loan Documents, as amended by this Amendment, are valid and binding upon Borrower and are enforceable against Borrower in accordance with their respective terms, except as may be limited by Debtor Relief Laws; (d) the execution, delivery, and performance by Borrower of this Amendment do not require the consent of any other Person and do not and will not constitute a violation of any laws, agreements, or understandings to which Borrower is a party or by which Borrower is bound; (e) all representations and warranties in the Loan Documents are true and correct in all material respects; and (f) after giving effect to this Amendment, no Default or Event of Default exists.

8.   Miscellaneous.  Unless stated otherwise (a) the singular number includes the plural and vice versa and words of any gender include each other gender, in each case, as appropriate, (b) headings and captions may not be construed in interpreting provisions, (c) this Amendment must be construed -- and its performance enforced -- under Texas law, (d) if any part of this Amendment is for any reason found to be unenforceable, all other portions of it nevertheless remain enforceable, and (e) this Amendment may be executed in any number of counterparts with the same effect as if all signatories had signed the same document, and all of those counterparts must be construed together to constitute the same document.

9.   Maximum Interest Rate.  Regardless of any provision contained in any of the Loan Documents, Lender shall never be entitled to receive, collect, or apply as interest (whether termed interest herein or deemed to be interest by operation of law or judicial determination) on the Notes any amount in excess of interest calculated at the Maximum Lawful Rate, and, in the event that Lender ever receives, collects, or applies as interest any such excess, then the amount which would be excessive interest shall be deemed to be a partial prepayment of principal and treated hereunder as such; and, if the principal amount of the Obligation is paid in full, then any remaining excess shall forthwith be paid to Borrower.  In determining whether or not the interest paid or payable under any specific contingency exceeds interest calculated at the Maximum Lawful Rate, Borrower and Lender shall, to the maximum extent permitted under applicable law: (a) characterize any non-principal payment as an expense, fee, or premium rather than as interest; (b) exclude voluntary prepayments and the effects thereof; and (c) amortize, prorate, allocate, and spread, in equal parts, the total amount of interest throughout the entire contemplated term of the Notes; provided that, if the Notes are paid and performed in full prior to the end of the full contemplated term thereof, and if the interest received for the actual period of existence thereof exceeds interest calculated at the Maximum Lawful Rate, then Lender shall refund to Borrower the amount of such excess or credit the amount of such excess against the principal amount of the Notes and, in such event, Lender shall not be subject to any penalties provided by any laws for contracting for, charging, taking, reserving, or receiving interest in excess of interest calculated at the Maximum Lawful Rate.

 

 

 

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10.   Entireties.  The Loan Agreement and other Loan Documents as amended by this Amendment represent the final agreement between the parties about the subject matter of the Loan Agreement and other Loan Documents as amended by this Amendment and may not be contradicted by evidence of prior, contemporaneous, or subsequent oral agreements of the parties.  There are no unwritten oral agreements between the parties.

11.   RELEASE.  BORROWER AND THE OTHER OBLIGATED PARTIES HEREBY ACKNOWLEDGE THAT THEY HAVE NO DEFENSE, COUNTERCLAIM, OFFSET, CROSS COMPLAINT, CLAIM OR DEMAND OF ANY KIND OR NATURE WHATSOEVER THAT CAN BE ASSERTED TO REDUCE OR ELIMINATE ALL OR ANY PART OF THEIR LIABILITY TO REPAY ANY LOANS OR EXTENSIONS OF CREDIT FROM LENDER TO BORROWER OR ANY OBLIGATED PARTY UNDER THE LOAN AGREEMENT OR THE OTHER LOAN DOCUMENTS OR TO SEEK AFFIRMATIVE RELIEF OR DAMAGES OF ANY KIND OR NATURE FROM LENDER.  BORROWER AND THE OBLIGATED PARTIES HEREBY VOLUNTARILY AND KNOWINGLY RELEASE AND FOREVER DISCHARGE LENDER AND ITS PREDECESSORS, ATTORNEYS, AGENTS, EMPLOYEES, SUCCESSORS AND ASSIGNS, FROM ALL POSSIBLE CLAIMS, DEMANDS, ACTIONS, CAUSES OF ACTION, DAMAGES, COSTS, EXPENSES, AND LIABILITIES WHATSOEVER, KNOWN OR UNKNOWN, ANTICIPATED OR UNANTICIPATED, SUSPECTED OR UNSUSPECTED, FIXED, CONTINGENT, OR CONDITIONAL, AT LAW OR IN EQUITY (INCLUDING, WITHOUT LIMITATION, CLAIMS OF FRAUD, DURESS, MISTAKE, TORTIOUS INTERFERENCE, USURY, BREACH OF FIDUCIARY DUTY, BREACH OF DUTY OF FAIR DEALING, BREACH OF CONFIDENCE, BREACH OF FUNDING COMMITMENT, UNDUE INFLUENCE, NEGLIGENCE OR FRAUD IN RATES AND METHODS USED TO COMPUTE INTEREST, DECEPTIVE TRADE PRACTICE OR THE RACKETEER INFLUENCED AND CORRUPT ORGANIZATIONS ACT), ORIGINATING IN WHOLE OR IN PART ON OR BEFORE THE DATE THIS AMENDMENT IS EXECUTED, WHICH BORROWER OR THE OTHER OBLIGATED PARTIES MAY NOW OR HEREAFTER HAVE AGAINST LENDER, ITS PREDECESSORS, ATTORNEYS, AGENTS, EMPLOYEES, SUCCESSORS AND ASSIGNS, IF ANY, AND IRRESPECTIVE OF WHETHER ANY SUCH CLAIMS ARISE OUT OF CONTRACT, TORT, VIOLATION OF LAW OR REGULATIONS, OR OTHERWISE, AND ARISING FROM ANY CREDIT ACCOMMODATIONS FROM LOAN DOCUMENTS, INCLUDING, WITHOUT LIMITATION, ANY CONTRACTING FOR, CHARGING, TAKING, RESERVING, COLLECTING OR RECEIVING INTEREST IN EXCESS OF THE HIGHEST LAWFUL RATE APPLICABLE, THE EXERCISE OF ANY RIGHTS AND REMEDIES UNDER THE LOAN DOCUMENTS, AND NEGOTIATION FOR AND EXECUTION OF THIS AMENDMENT.

12.   Parties. This Amendment binds and inures to Borrower, Lender, and their respective successors and assigns.

[Remainder of Page Intentionally Left Blank;

Signature Pages to Follow]

 

 

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EXECUTED as of the date first stated above.

 

	 	
BORROWER:

	 
	 	 	 
	 	
DGSE COMPANIES, INC., a Nevada corporation

	 
	 	 	 	 
	 	 	 	 
	 	
By: 

	 	 
	 	 	
William H. Oyster, President

	 
	 	 	Title 	 
	 	 	 	 

	
LENDER:

	 	 	 	 
	 	 	 	 	 
	
TEXAS CAPITAL BANK, NATIONAL ASSOCIATION,

	 	 	 	 
	
a national banking association

	 	 	 	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	By: 	   	 	 	
 

	 
	 	
Paul Howell, Senior Vice President

	 	 	 	 

 

 

Signature Page to DGSE Tenth Amendment

  

  

  

          

To induce Lender to enter into this Amendment, the undersigned jointly and severally (a) consent and agree to the execution and delivery of the Amendment, (b) ratify and confirm that all guaranties, assurances, and Liens granted, conveyed, or assigned to Lender under the Loan Documents are not released, diminished, impaired, reduced, or otherwise adversely affected by this Amendment and continue to guarantee, assure, and secure the full payment and performance of all present and future Obligations including the Revolving Credit Note and the Term Note, (c) waive notice of acceptance of this consent and agreement, which consent and agreement binds the undersigned and their successors and permitted assigns and inures to Lender and its respective successors and permitted assigns, and (d) acknowledge and agree to the provisions of Section 11 of this Amendment.

 

	 	
GUARANTORS:

	 
	 	 	 
	 	
DGSE CORPORATION

	 
	 	 	 	 
	 	 	 	 
	
 

	
By: 

	 	 
	 	 	
William H. Oyster, President

	 

 

 

	 	NATIONAL JEWELRY EXCHANGE, INC	 
	 	 	 	 
	 	 	 	 
	
 

	
By: 

	 	 
	 	 	
William H. Oyster, President

	 

 

 

	 	
CHARLESTON GOLD & DIAMOND

EXCHANGE, INC.

	 
	 	 	 	 
	 	 	 	 
	
 

	
By: 

	 	 
	 	 	
William H. Oyster, President

	 

 

 

	 	
AMERICAN PAY DAY CENTERS, INC.

	 
	 	 	 	 
	 	 	 	 
	
 

	
By: 

	 	 
	 	 	
John Benson, Secretary

	 

 

 

Signature Page to DGSE Tenth Amendment

  

  

  

 

	 	
SUPERIOR GALLERIES, INC.

	 
	 	 	 	 
	 	 	 	 
	
 

	
By: 

	 	 
	 	 	Name:	 
	 	 	Title:	 

 

 

	 	
SBT, INC.

	 
	 	 	 	 
	 	 	 	 
	
 

	
By: 

	 	 
	 	 	Name:	 
	 	 	Title:	 

 

 

Signature Page to DGSE Tenth Amendment

  

  

  

EXHIBIT B

 

COMPLIANCE CERTIFICATE

 

FOR QUARTER/PERIOD ENDED ________________________ (THE "SUBJECT PERIOD")

 

LENDER:                                TEXAS CAPITAL BANK, National Association

 

BORROWER:                        DGSE COMPANIES, INC., a Nevada corporation

 

This certificate is delivered under the Loan Agreement (as amended and modified from time to time, the “Agreement”) dated as of December 22, 2005, between Parent, Borrower and Lender.  Capitalized terms when used in this certificate shall, unless otherwise indicated, have the meanings set forth in the Agreement.  On behalf of Parent and Borrower, the undersigned certifies to Lender that, on the date of this certificate, (a) the financial Statements of Parent and Borrower attached to this certificate were prepared in accordance with GAAP, and present fairly the financial condition and results of operations of Parent and Borrower, with Superior and its consolidated Subsidiaries and without Superior and its consolidated Subsidiaries, as applicable, as of the end of and for the Subject Period, (b) no Default or Event of Default currently exists or has occurred which has not been cured or waived by Lender, and (c) the status of compliance by Parent and Borrower with certain covenants of the Agreement at the end of the Subject Period is as set forth below:

 

	  	  	  	
In Compliance as of

End of Subject Period

(Please Indicate)

	 	 
	
1.

	
Financial Statements and Reports

	 	 
	  	
(a)

	
Provide annual audited FYE financial statements within 90 days after the last day of each year.

	
Yes

	
No

	 	 	 	 	 
	  	
(b)

	
Provide quarterly financial statements within 30 days after the last day of each quarter.

	
Yes

	
No

	 	 	 	 	 
	  	
(c)

	
Provide monthly financial statements within  30 days after the last day of each month.

	
Yes

	
No

	 	 	 	 	 
	  	
(d)

	
Provide a monthly Compliance Certificate, Borrowing Base Report, inventory report, Pawn Loan report, and summary accounts receivable aging, within 30 days after the last day of each month.

	
Yes

	
No

	 	 	 	 	 
	  	
(e)

	
Provide Long Term Inventory Report within 30 days after June 30 and December 31.

	
Yes

	
No

	 	 	 	 	 
	  	
(f)

	
Provide other required reporting timely.

	
Yes

	
No

	 	 	 	 	 
	2.	Subsidiaries	 	 
	 	
None except as listed on Schedule 2

	
Yes

	
No

	 	 	 	 
	3.	Additional Indebtedness	 	 
	 	
None, except Indebtedness permitted by Section 8.1 of the Agreement.

	
Yes

	
No

 

 

Exhibit B

  

1

  

 

	
4.

	
Liens and Encumbrances; Negative Pledge Agreements

None at any time, except Liens permitted by Section 8.2 of the agreement

	
 

Yes

	
 

No

	 	 	 	 
	
5.

	
Limitation of Acquisitions and Mergers.

None except those permitted by Section 8.3 of the Agreement.

	
 

Yes

	
 

No

	 	 	 	 
	
6.

	
Dividends and Stock Repurchase.

None, except as permitted by Section 8.4 of the Agreement.

	
 

Yes

	
 

No

	 	 	 	 
	
7.

	
Loans and Investments

None, except those permitted by Section 8.5 of the Agreement.

	
 

Yes

	
 

No

	 	 	 	 
	
9.

	
Affiliate Transactions

None, except issuances permitted by Section 8.7 of the Agreement.

	
 

Yes

	
 

No

	 	 	 	 
	
10.

	
Disposal of Assets other than in the Ordinary Course of Business

(Section 8.8 of the Agreement).  None at any time without prior written consent of Lender.

	
 

Yes

	
 

No

	 	 	 	 
	
11.

	
Sale and Leaseback Transactions  (Section 8.9 of the Agreement).

None at any time without prior written consent of Lender.

	
 

Yes

	
 

No

	 	 	 	 
	
12.

	
Prepayment of Debt   (Section 8.10 of the Agreement).

None at any time without prior written consent of Lender.

	
 

Yes

	
 

No

	 	 	 	 
	
13.

	
Changes in Nature of Business  (Section 8.11 of the Agreement).

None at any time without prior written consent of Lender.

	
 

Yes

	
 

No

	 	 	 	 
	
14.

	
Environmental Laws  (Section 8.12 of the Agreement).

No activity likely to cause violations.

	
 

Yes

	
 

No

	 	 	 	 
	
15.

	
Changes in Fiscal Year; Accounting Practices  (Section 8.13 of the Agreement).

None at any time without prior written consent of Lender.

	
 

Yes

	
 

No

	 	 	 	 
	
16.

	
No Negative Pledge  (Section 8.14 of the Agreement).

None.

	
 

Yes

	
 

No

	 	 	 	 
	
17.

	
Fixed Charge Coverage Ratio

Minimum of 1:40 to 1.00.  (Defined as current assets divided

by current liabilities).

 

FCCR =($__________ - $__________ - $ __________)    ÷ Debt Service ($______ ) 

              EBITDA             Cash Taxes   Capital Expenditures

          not financed with Indebtedness permitted

          under the Credit Agreement (excluding 

          Capital Expenditures approved in writing by 

          Lender, in its sole discretion)

 

** The calculation shall be based on the rolling four (4) quarter cash flow and debt service obligations of Borrower and its Subsidiaries; except that the ratio shall be computed on an annualized basis for the fiscal quarters ending June 30, 2011 and September 30, 2011.

 

(INCLUDE SCHEDULE A HERETO FOR ITEM 17)

	
 

Yes

	
 

No

 

 

Exhibit B

  

2

  

 

	
19.

	
Tangible Net Worth (TNW)

Minimum of at least $24,000,000 at all times.  (TNW is defined as

consolidated total stockholders’ equity plus Subordinated Debt less intangible assets).

	
 

 

Yes

	
 

 

No

	 	 	 	 
	
20.

	
Leverage Ratio.  Maximum of 1.00 to 1.00

________________          -           _________________        ÷

Liabilities                                           Subordinated Debt

 

________________                       = ____________

Tangible

Net Worth

	
 

 

 

 

Yes

	
 

 

 

 

No

	 	 	 	 
	
21.

	
Capital Expenditures

Non-financed Capital Expenditures not to exceed $1,000,000 during any fiscal year.

	
 

Yes

	
 

No

 

	 	DGSE COMPANIES, INC.,	 
	 	a Nevada corporation	 
	 	 	 	 
	
 

	
By: 

	 	 
	 	 	Name:	 
	 	 	Title:	 

 

 

Exhibit B

  

3

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