Document:

exhibit_10-2.htm

EXHIBIT 10.2

 

AGREEMENT AND PLAN OF MERGER

This AGREEMENT AND PLAN OF MERGER (this "Agreement") dated November 30, 2011 is entered into by and between GFN Mobile Storage, Inc., a Delaware corporation ("GFNMS"), and Pac-Van, Inc., an Indiana corporation ("Pac-Van").

WHEREAS, the Boards of Directors of Pac-Van and GFNMS have resolved that Pac-Van and GFNMS be merged, pursuant to Indiana Business Corporation Law (“IBCL”), into a single corporation existing under the laws of the State of Indiana, pursuant to which Pac-Van shall be the surviving corporation (such corporation in its capacity as such surviving corporation being sometimes referred to herein as the "Surviving Corporation").

NOW, THEREFORE, in consideration of the premises and the mutual agreements, provisions, and covenants herein contained, the parties hereto hereby agree in accordance with the IBCL that Pac-Van and GFNMS shall be, at the Effective Date (as hereinafter defined), merged (the "Merger") into a single corporation existing under the laws of the State of Indiana, pursuant to which Pac-Van shall be the Surviving Corporation, and the parties hereto adopt and agree to the following agreements, terms, and conditions relating to the Merger and the mode of carrying the same into effect.

ARTICLE 1

 

The Merger

 

1.1 The Merger.  Upon the terms and subject to the conditions of this Agreement and in accordance with the IBCL, at the Effective Date, Pac-Van and GFNMS shall consummate the Merger and all rights, privileges, immunities, powers, duties, debts and liabilities of GFNMS shall become the obligations, duties, debts and liabilities of the Surviving Corporation.

 

1.2 Stockholder Approval.  This Agreement shall be submitted to the stockholders of each of Pac-Van and GFNMS for their adoption and approval.

 

1.3 Filing of Articles of Merger; Effective Date.  Unless this Agreement has been terminated or abandoned as permitted by the provisions hereof, then, once the requisite stockholder approval has been obtained for each of Pac-Van and GFNMS, Articles of Merger shall be filed and recorded in accordance with the IBCL and the Merger shall become effective on the date of such filing (the "Effective Date").

 

1.4 Certain Effects of Merger.  On the Effective Date, the separate existence of GFNMS shall cease, and GFNMS shall be merged into Pac-Van which, as the Surviving Corporation, shall possess all the rights, privileges and powers, of GFNMS and all property, real, personal, and mixed, and all debts due to GFNMS and all other things and causes of action belonging to GFNMS shall be vested in the Surviving Corporation; and shall thereafter be the property of the Surviving Corporation as they were of GFNMS, and the title to any real property
vested by deed or otherwise, under the laws of Indiana, in GFNMS, shall not revert or be in any way impaired; but all rights of creditors and all liens upon any property of GFNMS shall be preserved unimpaired, and all debts, liabilities, and duties of GFNMS shall thenceforth attach to the Surviving Corporation and may be enforced against it to the same extent as if said debts, liabilities, and duties had been incurred or contracted by it.  At any time, or from time to time, after the Effective Date, the last acting authorized officers of GFNMS or the corresponding officers of the Surviving Corporation, may, in the name of GFNMS, execute and deliver all such proper deeds, assignments, and other instruments and take or cause to be taken all such further or other action as the Surviving Corporation may deem necessary or desirable in order to vest, perfect, or confirm in the
Surviving Corporation title to and possession of all GFNMS’ property, rights, privileges and powers, and otherwise to carry out the purpose of this Agreement.

 

  

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ARTICLE 2

 

Representations and Warranties

 

2.1 As a material inducement to Pac-Van to enter into this Agreement and to consummate the transactions contemplated hereby, GFNMS hereby represents and warrants to Pac-Van that:

 

2.1.1 GFNMS Assets.  Immediately prior to the Effective Time, GFNMS will have good, valid and marketable title to, or a good, valid and marketable leasehold interest in, the assets used by it, located on its premises or disclosed on the its most recent balance sheet as previously delivered to Pac-Van or acquired thereafter prior to the Effective Time, free and clear of all liens, which constitute all of GFNMS’ assets (collectively, the "GFNMS Assets"), such GFNMS
Assets as set forth on Schedule 2.1.1.  GFNMS owns, has a valid leasehold interest in, or has a valid license to use, all of the GFNMS Assets necessary for the conduct of its business as presently conducted and as presently proposed to be conducted by it, and such GFNMS Assets, taken as a whole, constitute all of the Assets necessary for the operation of the business of GFNMS as presently conducted.

 

2.1.2 Organization; Qualification.  GFNMS is a corporation duly organized, validly existing and in good standing under the laws of the State of Delaware with full corporate power and authority to own, lease and operate all of its properties and GFNMS Assets and carry on its business as it is currently being conducted. GFNMS is duly qualified to do business and is in good standing as a foreign entity in those jurisdictions in which the nature of the business conducted by it or the property it owns, leases or operates requires it to so
qualify, except where the failure to be so qualified or in good standing in such jurisdiction would not reasonably be expected to have a Material Adverse Effect on GFNMS or the Surviving Corporation.  As used in this Agreement, "Material Adverse Effect," with respect to GFNMS, means a material adverse effect on the business, properties, GFNMS Assets, operations, condition (financial or otherwise) of such entity taken as a whole, or on the authority or ability of GFNMS, to perform its obligations under this Agreement. Complete and correct copies of the certificate of incorporation and by-laws of GFNMS as currently in effect have been delivered to Pac-Van.  GFNMS has not assumed by merger, contract, assignment or assumption any liability of any other person.

 

2.1.3 Authorization.  GFNMS has all requisite power and authority, corporate or otherwise, to execute and deliver this Agreement and any and all instruments necessary or appropriate in order to fully effectuate the terms and conditions of this Agreement and to perform and consummate the transactions contemplated hereby and thereby.  The execution and delivery of this Agreement and the consummation of the transactions contemplated hereby by GFNMS have been duly and validly authorized by all requisite action on the part of GFNMS,
including by the board of directors of GFNMS and all of the stockholders and no other proceedings on the part of GFNMS are necessary with respect thereto.  This Agreement has been duly and validly executed and delivered by GFNMS and, assuming the due authorization, execution and delivery of this Agreement by Pac-Van, constitutes a valid and legally binding obligation of GFNMS, enforceable against GFNMS in accordance with its terms and conditions.

 

  

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2.1.4 Consents and Approvals.  Except for the filing of the Articles of Merger with the Secretary of State of the State of Indiana, GFNMS is not required to obtain any material permit, make any filing with, provide any notice to, or obtain the consent of any governmental authority or any other person in connection with the execution, delivery and performance of this Agreement and the consummation of the transactions contemplated hereby.

 

2.1.5 Capitalization.  As of the date hereof and as of immediately prior to the Effective Date, the authorized issued and outstanding capital stock of GFNMS is as set forth in Schedule 2.1.5 attached hereto. All of the outstanding capital stock of GFNMS is held beneficially and of record by the stockholder set forth on Schedule 2.1.5 free and clear of any liens.  Such outstanding capital stock has
been duly authorized and all such shares have been validly issued and are fully paid, non-assessable and free and clear of any liens and have been issued and transferred free and clear of any preemptive or similar rights.  Except as set forth on Schedule 2.1.5, GFNMS does not have any outstanding (i) capital stock or securities convertible or exchangeable for any shares of its capital stock or containing any profit participation features, nor any rights or options to subscribe for or to purchase its capital stock or (ii) any stock appreciation rights or phantom stock or similar plans or rights.  There are no (i) outstanding obligations of GFNMS (contingent or otherwise) to repurchase or otherwise acquire or retire any shares of its capital stock or any warrants, options or other rights to acquire its
capital stock or (ii) voting trusts, proxies or other agreements among its stockholders with respect to the voting or transfer of any of GFNMS’ securities.

 

2.1.6 No Violations.  GFNMS’ execution and delivery of this Agreement and performance by GFNMS of its obligations under this Agreement and the consummation of the transactions contemplated hereby do not and will not (a) violate any provision of the certificate of incorporation or by-laws of GFNMS, (b) conflict with, result in a breach of, constitute a default under (whether with or without the passage of time, the giving of notice or both), accelerate the performance required by, result in the creation of any lien upon any of its
properties or the GFNMS Assets, or create in any person the right to accelerate, terminate, modify, or cancel, or require any notice under or adversely affect the rights or obligations of Surviving Corporation under, any contract or permit to which GFNMS is a party or by which any of its properties or the GFNMS Assets are bound, or (c) violate any law or order currently in effect to which GFNMS is subject.

 

2.1.7 No Brokers or Finders.  GFNMS has not, and its affiliates, officers, directors or employees have not, employed any broker or finder or incurred any liability for any brokerage or finder’s fee or commissions or similar payment in connection with the Merger.

 

2.2 As a material inducement to GFNMS to enter into this Agreement and to consummate the transactions contemplated hereby, Pac-Van hereby represents and warrants to GFNMS that:

 

2.2.1 Organization; Qualification.  Pac-Van is a corporation duly organized, validly existing and in good standing under the laws of the State of Indiana with full corporate power and authority to own all of its properties and assets and carry on its business as it is currently being conducted.

 

  

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2.2.2 Authorization.  Pac-Van has all requisite power and authority, corporate or otherwise, to execute and deliver this Agreement and any and all instruments necessary or appropriate in order to fully effectuate the terms and conditions of this Agreement and to perform and consummate the transactions contemplated hereby and thereby.  The execution and delivery of this Agreement and the consummation of the transactions contemplated hereby by Pac-Van have been duly and validly authorized by all requisite action on the part of
Pac-Van, including by the board of directors of Pac-Van and all of the stockholders and no other proceedings on the part of Pac-Van are necessary with respect thereto.  This Agreement has been duly and validly executed and delivered by Pac-Van and, assuming the due authorization, execution and delivery of this Agreement by GFNMS, constitutes a valid and legally binding obligation of Pac-Van, enforceable against Pac-Van in accordance with its terms and conditions.

 

2.2.3 Consents and Approvals.  Except for the filing of the Articles of Merger with the Secretary of State of the State of Indiana, Pac-Van is not required to obtain any material permit, make any filing with, provide any notice to, or obtain the consent of any governmental authority or any other person in connection with the execution, delivery and performance of this Agreement and the consummation of the transactions contemplated hereby.

 

2.2.4 No Violations.  Pac-Van’s execution and delivery of this Agreement and performance by Pac-Van of its obligations under this Agreement and the consummation of the transactions contemplated hereby do not and will not (a) violate any provision of the articles of incorporation or by-laws of Pac-Van, (b) conflict with, result in a breach of, constitute a default under (whether with or without the passage of time, the giving of notice or both), accelerate the performance required by, result in the creation of any lien upon any of
its properties or assets, or create in any person the right to accelerate, terminate, modify, or cancel, or require any notice under or adversely affect the rights or obligations of Surviving Corporation under, any contract or permit to which Pac-Van is a party or by which any of its properties or assets are bound, or (c) violate any law or order currently in effect to which Pac-Van is subject.

 

ARTICLE 3

 

Name of Surviving Corporation; Articles of Incorporation; By-Laws

 

3.1 Name of Surviving Corporation.  The name of the Surviving Corporation from and after the Effective Date shall be Pac-Van, Inc.

 

3.2 Articles of Incorporation; By-laws.  The Articles of Incorporation of Pac-Van as in effect on the date hereof shall from and after the Effective Date be, and continue to be, the Articles of Incorporation of the Surviving Corporation until changed or amended as provided by law.  The by-laws of Pac-Van as in effect immediately prior to the Effective Date shall be the by-laws of the Surviving Corporation until thereafter amended in accordance with applicable law.

 

3.3 Directors and Officers of the Surviving Corporation.  The individuals serving as members of the Board of Directors and officers of Pac-Van as of immediately prior to the Effective Date shall be the directors and officers of the Surviving Corporation until their successors shall have been duly elected or appointed or qualified or until their earlier death, resignation or removal in accordance with the Surviving Corporation’s Articles of Incorporation.

 

  

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ARTICLE 4

 

Conversion of Securities

 

4.1 Conversion of Preferred Stock and Common Stock.  Each share of preferred stock and common stock of Pac-Van issued and outstanding immediately prior to the Effective Time, by virtue of the Merger and without any action on the part of the holder thereof, will be converted into and become one (1) validly issued, fully paid and nonassessable share of preferred stock, [$0.001] par value per share, of the Surviving Corporation and one (1) validly issued, fully paid and nonassessable share of common stock, [$0.001] par value per share, of
the Surviving Corporation, respectively, in accordance with the Surviving Corporation’s Articles of Incorporation. Each share of preferred stock and common stock issued and outstanding immediately prior to the Effective Time shall be canceled and shall cease to exist.

 

ARTICLE 5

 

Miscellaneous

 

5.1 Termination.  This Agreement may be terminated and the proposed Merger abandoned at any time before the Effective Date of the Merger if the Board of Directors of Pac-Van or GFNMS duly adopt a resolution abandoning this Agreement.

 

5.2 Notices.

 

5.2.1 All notices, consents, waivers and other communications required or permitted by this Agreement shall be in writing and shall be deemed given to a party when (a) delivered to the appropriate address by hand or by nationally recognized overnight courier service (costs prepaid); or (b) sent by facsimile or e-mail with confirmation of transmission by the transmitting equipment confirmed with a copy delivered as provided in clause (a), in each case to the following addresses, facsimile numbers or e-mail addresses and marked to the attention of the person (by name or title) designated below (or to such other
address, facsimile number, e-mail address or person as a party may designate by notice to the other parties):

 

 

If to Pac-Van, to:

 

Pac-Van, Inc.

Attn: Theodore M. Mourouzis

9155 Harrison Park Court

Indianapolis, IN 46216-2108

 

If to GFNMS, to:

 

GFN Mobile Storage Inc.

Attn: Ronald F. Valenta, Director

39 East Union Street

Pasadena, CA 91103

  

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5.2.2 Notice not given in writing shall be effective only if acknowledged in writing by a duly authorized representative of the party to whom it was given.

 

5.3 Entire Agreement.  This Agreement, together with the documents referred to herein constitute the entire agreement and understanding among the parties hereto pertaining to the subject matter hereof and supersede all prior agreements, understandings, negotiations and discussions, whether oral or written, of the parties hereto pertaining to the subject matter hereof.

 

5.4 Amendments and Waivers.  This Agreement may not be amended or any provision of this Agreement waived except by an instrument in writing signed on behalf of each of the parties hereto.  No waiver by any party of any default, breach or misrepresentation under this Agreement will be deemed to extend to any prior or subsequent default, breach or misrepresentation or affect in any way any rights arising by virtue of any prior or subsequent such occurrence.  No course of dealing between or among the parties hereto shall
be deemed effective to modify, amend or discharge any part of this Agreement or any rights or obligations of any such party under or by reason of this Agreement.

 

5.5 Counterparts.  This Agreement may be executed in several counterparts, any one of which need not contain the signatures of more than one party, but all such counterparts taken together will constitute one and the same instrument.  Delivery of an executed counterpart of a signature page to this Agreement by facsimile or by electronic mail in portable document file (pdf) format, shall be effective as delivery of a manually executed counterpart to this Agreement.

 

5.6 Governing Law. This Agreement is governed by the law of the State of Indiana, without giving effect to the conflicts of laws provisions.

 

5.7 Binding Effect.  This Agreement is binding upon and inures to the benefit of the parties and their respective heirs, successors and permitted assigns.

 

5.8 Assignment.  This Agreement and all rights, interests or obligations hereunder, by or on behalf of any of the parties hereto, shall bind and inure to the benefit of the respective successors and permitted assigns of the parties hereto whether so expressed or not, except that neither this Agreement nor any of the rights, interests or obligations hereunder may be assigned or delegated by Pac-Van or GFNMS without the prior written consent of the other party.  Any attempted
assignment in violation of this Section 5.8 shall be void ab initio.

 

  

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IN WITNESS WHEREOF, this Agreement has been executed by Pac-Van and GFNMS, all on the date first above written.

PAC-VAN, INC.

By:  /s/ THEODORE M. MOUROUZIS

Name:  Theodore M. Mourouzis

Title:    President

GFN MOBILE STORAGE INC.

By:  /s/ RONALD F. VALENTA

Name:  Ronald F. Valenta

Title:    Director

 

 

 

7exhibit10-2.htm

 

Exhibit 10.2

 

FIRST AMENDMENT TO THIRD AMENDED AND RESTATED CREDIT AGREEMENT

 

THIS FIRST AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT (the "First Amendment to Third Amended and Restated Credit Agreement," or this "Amendment") is entered into effective as of November 30, 2011, among VANGUARD NATURAL GAS, LLC, a Kentucky limited liability company ("Borrower"), and CITIBANK, N.A., as Administrative Agent and L/C Issuer (the "Administrative Agent"), and the financial institutions executing this Amendment as Lenders.

 

R E C I T A L S

A.           Borrower, the financial institutions signing as Lenders and Administrative Agent are parties to a Credit Agreement dated as of September 30, 2011 (the "Original Credit Agreement").

 

B.           The parties desire to amend the Original Credit Agreement as hereinafter provided.

 

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

 

1. Same Terms.  All terms used herein which are defined in the Original Credit Agreement shall have the same meanings when used herein, unless the context hereof otherwise requires or provides.  In addition, (i) all references in the Loan Documents to the "Agreement" shall mean the Original Credit Agreement, as amended by this Amendment, as the same shall hereafter be amended from time to time, and (ii) all references in the Loan Documents to the “Loan Documents” shall mean the Loan Documents, as amended by this Amendment, the Modification Papers, as the same shall hereafter be amended from time to time.  In addition, the following terms have the meanings set forth below:

 

"Effective Date" means November 30, 2011.

 

"Modification Papers" means this Amendment, and each of the other documents and agreements executed in connection with the transactions contemplated by this Amendment.

 

2. Conditions Precedent.  The obligations, agreements and waivers of Lenders as set forth in this Amendment are subject to the satisfaction (in the opinion of Administrative Agent), unless waived in writing by Administrative Agent, of each of the following conditions (and upon such satisfaction, this Amendment shall be deemed to be effective as of the Effective Date):

 

A. First Amendment to Third Amended and Restated Credit Agreement.  This Amendment to Credit Agreement shall be in full force and effect.

 

B. Fees and Expenses.  Administrative Agent shall have received payment of all out-of-pocket fees and expenses (including reasonable attorneys' fees and expenses) incurred by Administrative Agent in connection with the preparation, negotiation and execution of the Modification Papers.

 

C. Representations and Warranties.  All representations and warranties contained herein or in the other Modification Papers or otherwise made in writing in connection herewith or therewith shall be true and correct with the same force and effect as though such representations and warranties have been made on and as of the Effective Date.

 

  

  

  

3. Amendments to Original Credit Agreement.  On the Effective Date, the Original Credit Agreement shall be deemed to be amended as follows:

 

(a) The definitions of  “Term Loan Credit Agreement,” and Term Loan Credit Facility,” “Term Loan Documents” set forth in Section 1.02 of the Original Credit Agreement shall be amended to read in their entirety as follows:

 

"'Paribas Term Loan Credit Agreement' means the Paribas Term Loan Agreement among the Borrower, BNP Paribas and the Lenders which are parties thereto dated as of November 16, 2010, which creates the Term Loan Credit Facility.

 

'Paribas Term Loan Credit Facility' means a loan to the Borrower in accordance with the Paribas Term Loan Documents.

 

'Paribas Term Loan Documents' means the "Loan Documents" as defined in the Paribas Term Loan Credit Agreement.”

 

(b) The following definitions shall be added to Section 1.02 of the Original Credit Agreement in appropriate alphabetical order:

 

"'Citi Term Loan Administrative Agent' means Citibank, N.A., in its capacity as the Administrative Agent under the Citi Term Loan Credit Agreement.

 

'Citi Term Loan Credit Agreement' means the Term Loan Agreement among the Borrower, Citibank, N.A., and the Lenders which are parties thereto dated as of November 30, 2011, and all modifications and amendments thereof, which creates the Citi Term Loan Credit Facility.

 

'Citi Term Loan Credit Facility' means a loan to the Borrower in accordance with the Citi Term Loan Documents.

 

'Citi Term Loan Documents' means the 'Loan Documents' as defined in the Citi Term Loan Credit Agreement.

 

'Citi Term Loan Effective Date' means the 'Effective Date' as defined in the Citi Term Loan Credit Agreement.

 

'Existing Encore Swap Agreements' means all Swap Agreements in force and effect on the Effective Date between any ENP Entity and a counterparty which is one of the following Lenders or an Affiliate of one of the following Lenders:  The Bank of Nova Scotia, Wells Fargo Bank, N.A., Natixis, BNP Paribas, Credit Agricole Corporate & Investment Bank, Bank of America, N.A., and The Royal Bank of Canada.

 

'Intercreditor Agreement' means that certain First Lien/Second Lien Intercreditor Agreement among Citibank, N.A., as Administrative Agent under this Agreement,  Citibank, N.A,  in its capacity as the Citi Term Loan Administrative Agent, Citibank, N.A., as Collateral Agent, and the Borrower and the Guarantors dated as of November 30, 2011."

 

  

  

  

(c) The definitions of “ Secured Swap Agreement,” “Senior Notes,” and “Swap Lender”  set forth in Section 1.02 of the Original Credit Agreement shall be amended to read in their entirety as follows:

 

“'Secured Swap Agreement' means any Swap Agreement entered into by the Borrower or any of the Subsidiaries or any of the Guarantors and any Swap Lenders, and each Existing Encore Swap Agreement.

 

’Senior Notes’ means any unsecured Debt of any Loan Party and any other entity whose financial statements are consolidated with those of the Parent, and any guarantees thereof which has terms (including amortization, covenants and events of default), not more restrictive on the Loan Parties than those contained in the Loan Documents

 

'Swap Lender' means (a) any Person that is a counterparty to a Swap Agreement with the Borrower or any Subsidiary or any Guarantor that is a Lender or an Affiliate of a Lender, or was a Lender or an Affiliate of a Lender, at the time such Swap Agreement was entered into, and (b) any Lender or Affiliate of any Lender that is a counterparty to an Existing Encore Swap Agreement; provided that, so long as any Lender is a Defaulting Lender, such Lender will not be a Swap Lender with respect to any Swap Agreement entered into while such Lender was a Defaulting Lender.".

 

(d) The definition of “VNR Finance” set forth in Section 1.02 of the Original Credit Agreement is hereby deleted from the Original Credit Agreement.

 

(e) Section 6.01(b)(viii) of the Original Credit Agreement shall be amended to read in its entirety as follows:

 

"(viii)                      there exists no default or breach under the Paribas Term Loan Credit Agreement or any of the other Paribas Term Loan Documents;"

 

(f) Section 6.02(g) of the Original Credit Agreement shall be amended to read in its entirety as follows:

 

"(g)           The Administrative Agent shall have received in form and substance satisfactory to it evidence satisfactory to the Administrative Agent that (A) all outstanding Debt under the Paribas Term Loan Credit Agreement and the Paribas Term Loan Documents has been repaid in full and such Paribas Term Loan Credit Facility has been terminated and extinguished (or is being repaid in full and terminated and extinguished concurrently on the Effective Date) and (B) all Liens on all Properties of all of the Loan Parties securing amounts owing under the Paribas Term Loan Credit Facility are released on the Effective Date pursuant to releases satisfactory to the Administrative Agent."

 

(g) Clause (e) of the first sentence of Section 7.21 of the Original Credit Agreement shall be amended to read in its entirety as follows:

 

"(e)           to refinance Debt of the Borrower under the Paribas Term Loan Credit Facility,"

 

  

  

  

(h) Section 6.02 of the Original Credit Agreement shall be amended by adding a new subparagraph (t) which reads in its entirety as follows:

 

"(t)           The Citi Term Loan Effective Date shall have occurred."

 

(i) Sections 8.14(a) and 8.14(c) shall be amended by adding the following sentence at the end of each such Section:

 

"Second Liens permitted by Section 9.03(f) may also be granted against the Oil and Gas Properties mortgaged to the Administrative Agent pursuant to this Section. "

(j) Section 9.01(b) of the Original Credit Agreement shall be amended to read in its entirety as follows:

 

"(b)           Consolidated Current Ratio.  The Borrower will not permit, at any time, the ratio of (i) consolidated current assets (including the Available Funds, but excluding non-cash assets under ASC 815) to (ii) consolidated current liabilities (excluding non-cash obligations under ASC 815 and current maturities under this Agreement and current maturities under the Citi Term Loan Credit Agreement) to be less than 1.0 to 1.0.  This ratio shall be computed for the Parent, the Borrower and the Subsidiaries on a consolidated basis."

 

(k) Section 9.02 (i) of the Original Credit Agreement shall be amended to read in its entirety as follows:

 

“(i)           so long there exists no Default before and after giving effect to any such incurrence, Senior Notes so long as in each case, (i) the maturity date of such Senior Notes is not less than one year after the Maturity Date, (ii) the indentures or other agreements under which any Senior Notes are issued and all other instruments, agreements and other documents evidencing or governing such Senior Notes or providing for any guarantee or other right in respect thereof have terms that are not more restrictive on the Parent, the Borrower or any of the Subsidiaries than the terms of this Agreement and the other Loan Documents, and (iii) the Senior Notes are unsecured.”

 

(l) Section 9.02 of the Original Credit Agreement shall be amended by adding a new subparagraph (j) thereto which reads in its entirety as follows:

 

"(j)             Debt arising under the Citi Term Loan Credit Agreement which may not exceed $100,000,000 in principal amount."

 

(m) Section 9.03 of the Original Credit Agreement shall be amended by adding a new subparagraph (f) thereto which reads in its entirety as follows:

 

"(f)           Subject to the terms of the Intercreditor Agreement and so long as it is in force and effect, Liens securing the indebtedness created under the Citi Term Loan Credit Facility."

 

(n) Article VII of the Original Credit Agreement shall be amended by adding a new Section 12.22 thereto which shall read in its entirety as follows:

 

  

  

  

"Section 12.22.  Concerning the Intercreditor Agreement.  Each Lender (a) consents to the Lien priorities provided for in the Intercreditor Agreement, (b) agrees that it will be bound by and will take no actions contrary to the provisions of the Intercreditor Agreement, and (c) authorizes and instructs the Administrative Agent to enter into the Intercreditor Agreement as First Lien Agent and Collateral Agent, and hereby consents to Citibank, N.A., acting in its capacity as Citi Term Loan Administrative Agent under the Citi Term Loan Credit Agreement and as Second Lien Agent under the Intercreditor Agreement.  The foregoing provisions are intended as an inducement to the Lenders to extend credit and such Lenders are intended third party beneficiaries of such provisions and the provisions of the Intercreditor Agreement."

 

(o) Page 3 of Exhibit D attached to the Original Credit Agreement shall be replaced with page 3 of Exhibit D attached to this Amendment.

 

4. Temporary Waiver Regarding Title Information.  Simultaneously with the execution of this Amendment, the ENP Transaction is being consummated and the Borrowing Base is being increased from $265,000,000 to $765,000,000.  Borrower hereby reconfirms that it and its Subsidiaries have good and defensible title to the Oil and Gas Properties evaluated in the most recently delivered Reserve Report, including without limitation the ENP Properties included therein.  Pursuant to Section 8.13(a) of the Original Credit Agreement, Borrower is required to deliver to Administrative Agent title information satisfactory to Administrative Agent covering enough of the oil and gas properties evaluated by such Reserve Report so that Administrative Agent shall have received, together with information previously delivered to Administrative Agent, satisfactory title information on at least eighty percent (80%) of the Recognized Value of the Oil and Gas Properties evaluated by such Reserve Report.  As of the Effective Date, Administrative Agent has been provided with title information satisfactory to it covering forty percent (40%) of the Recognized Value of the Oil and Gas Properties evaluated by such Reserve Report.  The parties agree that on or before January 15, 2012, Borrower will provide Administrative Agent with title information satisfactory to Administrative Agent on at least eighty percent (80%) of the Recognized Value of the Oil and Gas Properties evaluated by such Reserve Report, and the failure to do so shall be governed by Section 8.13(c) of the Original Credit Agreement.

 

5. Flood Insurance Compliance Matters.  The parties acknowledge that the Mortgages exclude “buildings” as defined under Federal Law.  Borrower agrees to provide Administrative Agent with a list of all such buildings, together with addresses therefor sufficient to enable Administrative Agent to confirm that such buildings are not located in Special Flood Hazard Areas as defined under applicable Federal Law.  When appropriate confirmations that such buildings are not located in Special Flood Hazard Areas are received, the Mortgages will be amended to grant Liens against such buildings.  In addition, if any such building is in fact located within a Special Flood Hazard Area as defined under applicable Federal Law and if Administrative Agent determines that any such building is necessary for the operation  of the Oil and Gas Properties of Borrower or any Subsidiary, then (i) Borrower shall obtain flood insurance policies which meet the requirements of the National Flood Insurance Program under applicable Federal Law for such building, and (ii) then the Mortgages shall be amended to include such building as additional Collateral.

 

The parties further acknowledge that Administrative Agent has not recorded the Mortgages against the pipeline systems owned by Encore Clear Fork Pipeline, L.L.P. (the “Pipeline Mortgages”) because Administrative Agent has not been able to confirm that any buildings associated therewith are not located in Special Flood Hazard Areas.  Borrower agrees to provide Administrative Agent within 30 days the location of all buildings associated with the pipeline systems described in the Pipeline Mortgages which are sufficient to locate such buildings under Federal flood insurance maps for purposes of determining compliance with Federal flood insurance Laws.  The parties confirm that the Pipeline Mortgages will be recorded upon confirmation that any such buildings either (i) are not located in Special Flood Hazard Areas, or (ii) are insured under Federal insurance policies which meet the requirements of the National Flood Insurance Program under applicable Federal Law.

  

  

  

6. Certain Representations.  Borrower represents and warrants that, as of the Effective Date:  (a) Borrower has full power and authority to execute the Modification Papers and the Modification Papers constitute the legal, valid and binding obligation of Borrower enforceable in accordance with their terms, except as enforceability may be limited by general principles of equity and applicable bankruptcy, insolvency, reorganization, moratorium, and other similar laws affecting the enforcement of creditors' rights generally; and (b) no authorization, approval, consent or other action by, notice to, or filing with, any governmental authority or other person is required for the execution, delivery and performance by Borrower thereof.  In addition, Borrower represents that after giving effect to this Amendment all representations and warranties contained in the Original Credit Agreement and the other Loan Documents are true and correct in all material respects on and as of the Effective Date as if made on and as of such date except to the extent that any such representation or warranty expressly relates solely to an earlier date, in which case such representation or warranty is true and correct in all material respects as of such earlier date.

 

7. No Further Amendments.  Except as previously amended in writing or as amended hereby, the Original Credit Agreement shall remain unchanged and all provisions shall remain fully effective between the parties.

 

8. Acknowledgments and Agreements.  Borrower acknowledges that on the date hereof all outstanding Obligations are payable in accordance with their terms, and Borrower waives any defense, offset, counterclaim or recoupment with respect thereto.  Borrower, Administrative Agent, L/C Issuer and each Lender do hereby adopt, ratify and confirm the Original Credit Agreement, as amended hereby, and acknowledge and agree that the Original Credit Agreement, as amended hereby, is and remains in full force and effect.  Borrower acknowledges and agrees that its liabilities and obligations under the Original Credit Agreement, as amended hereby, and under the Loan Documents, are not impaired in any respect by this Amendment.  Any breach of any representations, warranties and covenants under this Amendment shall be an Event of Default under the Original Credit Agreement.

 

9. Limitation on Agreements.  The modifications set forth herein are limited precisely as written and shall not be deemed (a) to be a consent under or a waiver of or an amendment to any other term or condition in the Original Credit Agreement or any of the Loan Documents, or (b) to prejudice any right or rights which Administrative Agent now has or may have in the future under or in connection with the Original Credit Agreement and the Loan Documents, each as amended hereby, or any of the other documents referred to herein or therein. The Modification Papers shall constitute Loan Documents for all purposes.

 

10. Release.  To induce the Administrative Agent and the Lenders to grant the waivers in this Amendment, Borrower warrant and represent that as of the Effective Date, there are no claims or offsets or defenses or counterclaims to the obligations of Borrower under the Loan Documents, and in accordance therewith, Borrower:

 

(a) Waives any and all such claims, offsets, defenses or counterclaims, whether known or unknown, arising under the Loan Documents prior to the Effective Date; and

 

(b) Releases and discharges the Administrative Agent and the Lenders and their officers, directors, employees, agents, shareholders, affiliates and attorneys (the "Released Parties") from any and all obligations, indebtedness, liabilities, claims, rights, causes of action or other demands whatsoever, whether known or unknown, suspected or unsuspected, in law or equity, which Borrower ever had, now have or claim to have or may have against any Released Parties arising prior to the Effective Date and from or in connection with the Loan Documents or the transactions contemplated thereby, except those resulting from the gross negligence or willful misconduct of the Released Parties.

 

  

  

  

11. Confirmation of Security.  Borrower hereby confirms and agrees that all of the Security Instruments which presently secure the Obligations shall continue to secure, in the same manner and to the same extent provided therein, the payment and performance of the Obligations as described in the Original Credit Agreement as modified by this Amendment.

 

12. Counterparts.  This Amendment may be executed in any number of counterparts, each of which when executed and delivered shall be deemed an original, but all of which constitute one instrument.  In making proof of this Amendment, it shall not be necessary to produce or account for more than one counterpart thereof signed by each of the parties hereto.

 

13. Incorporation of Certain Provisions by Reference.  The provisions of Section 12.09. of the Original Credit Agreement captioned "GOVERNING LAW; JURISDICTION; CONSENT TO SERVICE OF PROCESS; WAIVER OF JURY TRIAL" are incorporated herein by reference for all purposes.

 

14. Entirety, Etc.  This Amendment and all of the other Loan Documents embody the entire agreement between the parties.  THIS AMENDMENT AND ALL OF THE OTHER LOAN DOCUMENTS REPRESENT THE FINAL AGREEMENT AMONG THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES.  THERE ARE NO UNWRITTEN ORAL AGREEMENTS AMONG THE PARTIES.

 

[This space is left intentionally blank.  Signature pages follow.]

 

  

  

  

 

The parties hereto have caused this Agreement to be duly executed as of the day and year first above written.

 

BORROWER:                                                                VANGUARD NATURAL GAS, LLC

By:           /s/ Richard Robert

Richard Robert

Executive Vice President

and Chief Financial Officer

 

 

 

  

  

  

 

ADMINISTRATIVE AGENT:                                                                CITIBANK, N.A.

as Administrative Agent

By:          /s/ Angela McCracken 

Angela McCracken

Vice President

LENDERS:                                                                CITIBANK, N.A.

By:          /s/ Angela McCracken 

Angela McCracken

Vice President

 

  

  

  

LENDERS:                                                                BNP PARIBAS

By:           /s/ Betsy Jocher 

Name:     Betsy Jocher 

Title:       Director 

By:           /s/ Edward Pak 

Name:     Edward Pak 

Title:       Director 

 

 

  

  

  

 LENDERS:                                                                THE BANK OF NOVA SCOTIA

By:           /s/ John Frazell 

Name:     John Frazell 

Title:      Director 

 

  

  

  

LENDERS:                                                                COMERICA BANK

By:           /s/ Justin Crawford 

Name:      Justin Crawford 

Title:        Vice President 

 

  

  

  

LENDERS:                                                                ROYAL BANK OF CANADA

By:           /s/ Jason York 

Name:      Jason York 

Title:        Authorized Signatory

 

  

  

  

LENDERS:                                                                WELLS FARGO BANK, N.A.

By:           /s/ Patrick J. Fults 

Name:     Patrick J. Fults 

Title:       Vice President 

  

  

  

	
LENDERS:

	
CREDIT AGRICOLE CORPORATE & INVESTMENT BANK

By:           /s/ Tom Byargeon 

Name:      Tom Byargeon 

Title:        Managing Director 

By:           /s/ Michael D. Willis 

Name:     Michael D. Willis 

Title:       Managing Director 

  

  

  

LENDERS:                                                                BARCLAYS BANK PLC

By:        /s/ Vanessa A. Kurbatskiy 

Name:  Vanessa A. Kurbatskiy 

Title:    Vice President 

 

  

  

  

LENDERS:                                                                BANK OF MONTREAL

By:           /s/ Kevin Utsey 

Name:     Kevin Utsey 

Title:       Director 

 

  

  

  

LENDERS:                                                                THE ROYAL BANK OF SCOTLAND plc

By:           /s/ Sanjay Remond 

Name:     Sanjay Remond 

Title:       Authorized Signatory 

 

  

  

  

LENDERS:                                                                UBS LOAN FINANCE LLC

By:       /s/ Iria R. Otsa 

Name:  Iria R. Otsa 

Title:    Associate Director 

Banking Products Services, US 

By:         /s/ Mary E. Evans 

Name:   Mary E. Evans 

Title:     Associate Director 

 Banking Products Services, US 

 

  

  

  

LENDERS:                                                                BANK OF SCOTLAND PLC, NEW YORK

BRANCH

By:           /s/ Julia B. Franklin 

Name:     Julia B. Franklin 

Title:       Vice President 

 

  

  

  

LENDERS:                                                                NATIXIS

By:           /s/ Liana Tchernysheva 

Name:      Liana Tchernysheva 

Title:        Managing Director 

By:           /s/ Donovan C. Broussard 

Name:     Donovan C. Broussard 

Title:       Managing Director 

 

 

  

  

  

LENDERS:                                                                U.S. BANK NATIONAL ASSOCIATION

By:           /s/ Daria Mahoney 

Name:      Daria Mahoney 

Title:        Vice President 

 

  

  

  

LENDERS:                                                                ASSOCIATED BANK, N.A.

By:           /s/ Timothy Brendel 

Name:      Timothy Brendel 

Title:        Senior Vice President 

 

  

  

  

LENDERS:                                                                BANK OF AMERICA MERRILL LYNCH

By:           /s/ Stephen J. Hoffman 

Name:     Stephen J. Hoffman 

Title:       Managing Director 

 

  

  

  

LENDERS:                                                                BRANCH BANKING AND TRUST COMPANY

By:           /s/ Jeff Forbis 

Name:     Jeff Forbis 

Title:       Senior Vice President 

 

  

  

  

LENDERS:                                                                CAPITAL ONE, NATIONAL ASSOCIATION

By:           /s/ Scott Joyce 

Name:     Scott Joyce 

Title:       Senior Vice President 

 

  

  

  

LENDERS:                                                                CIBC INC

By:           /s/ Trudy Nelson 

Name:     Trudy Nelson 

Title:      Authorized Signatory 

By:           /s/ Richard Antl 

Name:     Richard Antl 

Title:       Authorized Signatory 

 

  

  

  

	
LENDERS:

	
SUMITOMO MITSUI BANKING

	
  

	
CORPORATION

By:           /s/ Masakazu Hasegawa 

Name:     Masakazu Hasegawa 

Title:       Managing Director 

 

  

  

  

PAGE 3 OF EXHIBIT D

	
C.Ratio (Line I.A.4 ÷ Line I.B.10)

	
__________ to 1.0

	
Maximum Permitted:

	
4.00 to 1.00

	  	  
	
II.Section 9.01(b) – Current Ratio.

	  
	
A.Current Assets (including Borrowing Base availability)

	
$______________

	
B.Current Liabilities (excluding non-cash Obligations under ASC 815 and current maturities of Obligations and current maturities under the Citi Term Loan Credit Agreement)

 

 

	
$______________

	
C.Ratio (Line II.A ÷ Line II.B):

	
_________ to 1.0

	
Minimum Required:  1.0 to 1.0

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00197-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00197-of-00352.parquet"}]]