Document:

exhibit10-6.htm

  

  

  

FIFTH AMENDED AND RESTATED REVOLVING CREDIT LOAN NOTE*

 

*amending and restating Fourth Amended And Revolving Credit Loan Note dated March 1, 2010 in the amount of $2,000,000.00. 

 

$2,000,000.00

 

Due Date:  The earlier of demand

or April 1, 2011 Dated: eff. April 1, 2010

 

FOR VALUE RECEIVED, the undersigned (whether one or more in number, "Borrower", and if two or more in number, shall be jointly and severally bound), promises to pay to the order of GREENFIELD COMMERCIAL CREDIT, L.L.C., a Michigan
limited liability company (the "Lender"), at its office at 300 East Long Lake Road, Suite 180, Bloomfield Hills, Michigan 48304, or at such other place as Lender may designate in writing, the principal sum of Two Million and 00/100 Dollars ($2,000,000.00), or such lesser sum as shall have been advanced by Lender to Borrower pursuant to that certain Fifth Amendment To Loan And Security Agreement dated as of this date between Borrower and Lender (which, together with all amendments and modifications thereof, is
hereinafter referred to as the "Loan Agreement"), plus interest as hereinafter provided, all lawful money of the United States of America, in accordance with the terms hereof.

 

The unpaid principal balance of this Fifth Amended And Restated Note (“Note”) shall bear interest computed upon the basis of a year of 360 days for the actual number of days elapsed in a month, at a rate of interest (the "Effective Rate") which is equal to seven (7.0%) percentage points above LIBOR (hereafter defined), as such
rate shall vary from time to time, upwards and downwards, and each such LIBOR change shall cause an identical change in the Effective Rate to occur based upon the rate published on the date which is two business days prior to the beginning of each month, effective for the upcoming month.  "LIBOR" means the London interbank offered rate for three months, published from day to day in the wall street journal in its Money
Rates column.  Should such publication not continue to publish LIBOR, then Lender will select a comparable announced rate.  LIBOR shall not be less than 2%, irrespective of the actual published rate.

 

Interest on all principal amounts advanced by Lender from time to time and unpaid by Borrower shall be paid on the first day of the month following execution of this Note, and on the same day of each month thereafter until the Due Date, upon which date the entire unpaid principal balance
of this Note, together with all accrued and unpaid interest, shall be due and payable in full.  Borrower shall pay to Lender a late charge of five percent (5%) of any monthly payment not received by Lender within ten (10) calendar days after said payment is due, which late charge shall be payable on the next monthly payment date or on demand.  In addition to the foregoing, Borrower shall pay to Lender on the first day of each month with respect to the prior calendar month or portion thereof,
the amount, if any, necessary to pay the fees as set forth in the Loan Agreement.

 

Advances of principal, repayment, and readvances may be made under this Note from time to time, upon the terms set forth in the Loan Agreement and said Loan Agreement is incorporated herein by reference.  Mandatory repayments of principal before the Due Date shall be made by Borrower
to Lender pursuant to the Loan Agreement.  If, prior to the Due Date,

 

  

  

  

Borrower pays the balance of the Note after demand or terminates the Loan, whether voluntarily or involuntarily, Borrower shall pay to Lender as liquidated damages and as compensation for the costs of being prepared to make funds available under the Loan Agreement a termination fee as set forth in the Loan Agreement.

 

All advances made hereunder shall be charged to a loan account in Borrower's name on Lender's books, and Lender shall debit to such account the amount of each advance made to, and credit to such account the amount of each repayment made by Borrower.  Lender shall furnish Borrower with a monthly statement of Borrower's loan account,
which statement shall be deemed to be correct, accepted by, and binding upon Borrower, unless Lender receives a written statement of exceptions from Borrower within thirty (30) days after such statement has been furnished.  Borrower expressly assumes all risks of loss or delay in the delivery of any payments made by mail, and no course of conduct or dealing shall affect Borrower's assumption of these risks.

 

Upon the Due Date, which Borrower acknowledges may be upon demand, Lender, without prior notice to Borrower, may declare the entire unpaid principal balance of this Note and all accrued interest, together with all other indebtedness of Borrower to Lender, to be immediately due and payable.  Upon
the occurrence of any Default specified on the Loan Agreement or upon demand, the unpaid principal balance of this Note shall bear interest at a rate which is four percent (4%) greater than the Effective Rate otherwise applicable.  After Default or demand, Lender may apply its own indebtedness or liability to Borrower to any indebtedness due under this Note.  Borrower agrees to pay all of the Lender's costs incurred in the collection of this Note as provided in the Loan Agreement.

 

Acceptance by Lender of any payment in an amount less than the amount then due shall be deemed an acceptance on account only.  Upon any Default, neither the failure of the Lender promptly to exercise its right to declare the outstanding principal and accrued unpaid interest hereunder
to be immediately due and payable, nor the failure of the Lender to demand strict performance of any other obligation of the Borrower or any other person who may be liable hereunder, shall constitute a waiver of any such rights, nor a waiver of such rights in connection with any future default on the part of the Borrower or any other person who may be liable hereunder.

 

Borrower acknowledges that no Default is necessary for Lender to make demand.

 

Borrower and all endorsees, sureties and guarantors hereof hereby jointly and severally waive presentment for payment, demand, notice of non-payment, notice of protest or protest of this Note, and Lender diligence in collection or bringing suit, and do hereby consent to any and all extensions
of time, renewals, waivers or modifications as may be granted by Lender with respect to payment or any other provisions of this Note, and to the release of any collateral or any part thereof, with or without substitution.  The liability of Borrower under this Note shall be absolute and unconditional, without regard to the liability of any other party.  This Note and all rights and obligations hereunder shall be governed by the laws of the State of Michigan.

 

In no event whatsoever shall the interest rate and other charges charged hereunder exceed the highest rate permissible under any law which a court of competent jurisdiction shall, in the

 

  

  

  

final determination, deem applicable hereto.  In the event that a court determines that Lender has received interest or other charges hereunder in excess of the highest rate applicable hereto, Lender shall either, in its sole discretion, promptly apply such amounts to the principal due hereunder or refund such amount to Borrower
and the provisions herein shall be deemed amended to provide for such permissible rate.

 

This Note is issued pursuant to the terms of the Loan Agreement and is secured by the Collateral, as defined in the Loan Agreement.  All of the terms, covenants and conditions of the Loan Agreement are hereby made a part of this Note and are hereby incorporated by reference.

	  	
"BORROWER"

	  	  
	  	
ARIZONA LNG, L.L.C.

	  	
a Nevada limited liability company

	  	
By:  New Earth LNG, LLC, a Delaware limited liability company

	  	
Its:   Sole Member

	  	  
	  	  
	  	
By:  /s/ Cem Hacioglu

	  	
Cem Hacioglu

	  	
Its:  President and CEO

	  	  
	  	
and

	  	  
	  	
APPLIED LNG TECHNOLOGIES USA,  L.L.C., a Delaware limited liability company

	  	
By:  New Earth LNG, LLC, a Delaware limited liability company

	  	
Its:   Sole Member

	  	  
	  	  
	  	
By:  /s/ Cem Hacioglu

	  	
Cem Hacioglu

	  	
Its:  President and CEOexhibit10-7.htm

  

  

  

AMENDMENT NO. 1 TO THE EMPLOYMENT AGREEMENT

 

 AMONG

 

PNG Ventures, Inc.

 

 AND

 

 Cem Hacioglu

 

 

This AMENDMENT NO. 1 dated February 16, 2010 (this “Amendment”), amends the Employment Agreement dated February 1, 2009 (the “Agreement”) by and among PNG Ventures, Inc., having an address at 5310 Harvest Hill Road, Suite 229, Dallas, TX 75230 (the "Company"),
and Cem Hacioglu, presently residing at 5325 Blake Dr., Plano, TX 75093 (the "Executive").

 

Unless otherwise defined in this Amendment, capitalized terms used herein shall have the meanings provided them in the Agreement. Except as otherwise specifically addressed by this Amendment, the Agreement shall remain in full force and effect. This Amendment is a part of the Agreement and the terms and conditions of the Agreement govern
this Amendment.

 

WHEREAS, the Company intends to shortly confirm a Plan of Reorganization under Chapter 11 of the United States Bankruptcy Code (the "Plan").

 

WHEREAS, the Company continues to desire to employ the Executive after the final effectiveness of the Plan and the Executive desires to be employed by the Company after the final effectiveness of the Plan, on the terms set forth herein

 

NOW, THEREFORE, in consideration of the foregoing and the respective agreements of the parties contained herein, the parties hereby agree as follows:

 

1.           Section 3(b) of the Agreement is hereby amended, superseded and replaced in its entirety as set forth immediately below:

 

(b).           The executive shall receive an annual performance-based bonus.  EBITDA targets for 2010 and 2011 will be set by the Company's Board in the annual budget meetings. The Board will discuss the 2010 budget numbers
with the management in the first Board meeting following the effectiveness of the Plan and agree on an EBITDA number that will trigger an award for a lump sum cash bonus and an "equity" bonus in the form of options to purchase the Company's stock ("Bonus Stock Options").

 

For the year 2010, the percentages for the cash bonus and Bonus Stock Options shall be 10% and 14%, respectively. The Board shall meet and agree on the 2010 EBITDA targets within 30 days after Plan effectiveness.

 

For the year 2011, the percentages for the cash bonus and Bonus Stock Options shall be 5% and 7%, respectively. The

 

  

  

  

Board shall meet and agree on the 2011 EBITDA targets on or before December 31, 2010.

 

For the completed year 2009, the Executive shall receive  Bonus Stock Options equal to twice the amount awarded to the Directors of the Company (individually, and not in the aggregate) for service during 2009, under the same terms as their award.

 

2.           Section 3(e) of the Agreement is hereby amended and the additional language in its entirety is set forth immediately below:

 

The Company confirms that upon Plan effectiveness, the conditions as set forth under Section 3(e) shall have been deemed satisfied as a consequence of the Plan. Accordingly, the Executive's Employment Options awarded pursuant to Section 3(d) shall be increased such that the total number
of Employment Options issued to the Executive will represent the same percentage it represented on the Agreement date. Notwithstanding Section (3)(e) of the Agreement, the exercise price for Bonus Stock Options and Employment Options will be equal to 120% of the common stock per share value implied in the Plan.

 

3.           A Section 3(g) of the Agreement is hereby added and the additional language in its entirety as set forth immediately below:

 

(3)(g) The Board may, in its discretion, grant an annual Additional Discretionary Cash Bonus Award to the Executive above and beyond any other bonus
awards as set forth herein above.

 

4.           The Company shall reimburse Executive or pay directly the Executive's reasonable attorney's fees in connection with this Amendment up to a maximum of $5,000.

 

5.           This Amendment has been adopted by the Company on the date hereof, and shall become effective as of the Effective Date of the Plan.

 

 

 

 [Signature page follows]

 

 

  

  

  

IN WITNESS WHEREOF, the Company has caused this Amendment to be executed by its duly authorized officer and the Executive has executed this Agreement as of the day and year first above written.

	  	
PNG VENTURES, INC.

	  	
By:   /s/ W. Philip Marcum

	  	
Name: W. Philip Marcum

	  	
Title:  Chairman of the Board of Directors

	  	  
	  	  
	  	  
	  	
/s/ Cem Hacioglu

	  	
Cem Hacioglu

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