Document:

Exhibit
10.1

 

WAIVER AND AGREEMENT

 

This WAIVER AND AGREEMENT (“Agreement”),
dated as of January 5, 2010, is by and among PINNACLE GAS
RESOURCES, INC., a Delaware  corporation,
the Lenders from time to time party hereto, and THE ROYAL
BANK OF SCOTLAND plc, as Administrative Agent and as Lender.

 

WHEREAS, the Borrower, the
Lenders and the Administrative Agent are parties to that certain Credit
Agreement (as amended by that certain Letter Regarding Waiver and Amendment to
Credit Agreement dated March 9, 2007, the Second Amendment to Credit
Agreement dated as of August 4, 2008, the Third Amendment to Credit
Agreement dated as of September 30, 2008, the Fourth Amendment to Credit
Agreement dated as of April 14, 2009, the Fifth Amendment and Waiver to
Credit Agreement dated as of August 26, 2009 (the “Fifth Amendment”),
the Sixth Amendment to Credit Agreement dated as of October 20, 2009, and as
further amended and supplemented from time to time, the “Credit Agreement”);
and

 

WHEREAS, the parties hereto
desire to further extend certain waivers with respect to certain provisions of
the Credit Agreement and to make certain agreements as set forth herein;

 

NOW THEREFORE, in
consideration of the premises and the mutual covenants, representations and
warranties contained herein, and for other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties hereto
hereby agree as follows:

 

AGREEMENT

 

Section 1.               Definitions.  Capitalized
terms used herein but not defined herein shall have the meanings as given them
in the Credit Agreement, unless the context otherwise requires.

 

Section 2.               Waivers.

 

(a)           The Administrative Agent and the Lenders hereby waive
for the period ending on the earlier of January 12, 2010 and the date of any Default
or Event of Default arising out of any breach of or non-compliance with the
Credit Agreement not expressly waived hereunder or any breach of the agreements
in this Agreement (the “Waiver Date”), the requirement in Section 7.15.2
of the Credit Agreement that the Borrower not permit the ratio of its Current
Assets to its Current Liabilities to be less than 1.00 to 1.00 for the fiscal
quarters ending June 30, 2009, September 30, 2009 and December 31,
2009.  The waiver in this Section 2
is effective only for the period ending on the Waiver Date and only for the
fiscal quarters ending June 30, 2009, September 30, 2009 and December
31, 2009, and not any other period or fiscal quarter.

 

(b)           The Administrative Agent and the Lenders hereby waive
for the period ending on the Waiver Date the requirements of Section 7.6.2
of the Credit Agreement to the extent and only to the extent that (i) the
failure to pay accounts payable within ninety (90) days of the date of the
invoice therefor would cause such accounts not to be Permitted Debt and (ii) that
the aggregate amount of all such accounts payable not so paid within ninety
(90) days of the

 

 

date of the invoice
therefor does not exceed $6,000,000.  The
waiver in this Section 2(b) is effective only to the extent that such
failure to pay accounts payable causes such accounts payable not to be
Permitted Debt and only with respect to the period ending on the Waiver Date
and not any other period and only to the extent that the aggregate of all such
accounts payable not so paid within ninety (90) days of the date of the invoice
therefor does not exceed $6,000,000.

 

(c)           The Administrative Agent and the Lenders hereby waive
for the period ending on the Waiver Date the requirements of Section 7.6.3
of the Credit Agreement that the Borrower pay the trade and other accounts
payable within 90 days after the invoice date therefore, provided that this
waiver is only effective with respect to trade and other accounts not exceeding
$6,000,000 in the aggregate at any time outstanding.  The waiver in this Section 2(c) is effective
only with respect to (i) the period ending on the Waiver Date and not any other
period and (ii) trade and other accounts not exceeding $6,000,000 in the
aggregate at any time outstanding.

 

(d)           The Administrative Agent and the Lenders hereby waive
for the period ending on the Waiver Date the requirements of Section 7.7
of the Credit Agreement that the Borrower and its Subsidiaries not allow Liens
on any of its Property to the extent but only to the extent of Liens not
securing amounts in excess in the aggregate of $2,500,000.  The waiver in this Section 2(d) is effective
only with respect to (i) the period ending on the Waiver Date and not any
other period and (ii) only with respect to Liens not securing amounts in
excess in the aggregate of $2,500,000.

 

Section 3.               Modification of Certain Dates. 
The Borrower, Agent and Lenders agree that the references to “January 5,
2010”, in Section 4 of the Fifth Amendment, as amended by the Waiver and
Agreement dated October 26, 2009, the Waiver and Agreement dated November 16,
2009, the Waiver and Agreement dated November 23, 2009 and the Waiver and
Agreement dated December 1, 2009, shall be amended and restated to read “January 12,
2010”.  As amended by the preceding sentence,
the provisions of such Section 4 of the Fifth Amendment, as heretofore amended,
shall continue to be effective from and after the date of this Agreement.

 

Section 4.               Condition to Effectiveness. 
This Agreement shall be deemed effective as of January 5, 2010 (the “Effective
Date”) when the Administrative Agent shall have received counterparts hereof
duly executed by the Borrower, the Administrative Agent, and the Required
Lenders.

 

Section 5.               Representations and Warranties. 
The Borrower hereby represents and warrants that after giving effect
hereto:

 

(a)           the representations and warranties of the Borrower and
each Subsidiary contained in the Loan Documents are true and correct in all
material respects on and as of the date hereof, other than those representations
and warranties that expressly relate solely to a specific earlier date, which
shall remain correct in all material respects as of such earlier date;

 

(b)           the execution, delivery and performance by the
Borrower and each Subsidiary of this Agreement has been duly authorized by all
necessary corporate action required

 

2

 

on their part and this
Agreement, along with the Credit Agreement as amended hereby and other Loan
Documents, constitutes the legal, valid and binding obligation of each Obligor
party thereto enforceable against them in accordance with its terms, except as
its enforceability may be affected by the effect of bankruptcy, insolvency,
reorganization, moratorium or other similar laws now or hereafter in effect
relating to or affecting the rights or remedies of creditors generally;

 

(c)           neither the execution, delivery and performance of
this Agreement by the Borrower and each Subsidiary, the performance by them of
the Credit Agreement nor the consummation of the transactions contemplated
hereby does or shall contravene, result in a breach of, or violate (i) any
provision of the Borrower or any Subsidiary’s certificate or articles of
incorporation or bylaws or other similar documents, or agreements, (ii) any
law or regulation, or any order or decree of any court or government
instrumentality, or (iii) any indenture, mortgage, deed of trust, lease,
agreement or other instrument to which the Borrower or any of its Subsidiaries
is a party or by which the Borrower or any of its Subsidiaries or any of their
property is bound, except in any such case to the extent such conflict or
breach has been waived herein or by a written waiver document, a copy of which
has been delivered to Administrative Agent on or before the date hereof;

 

(d)           no Material Adverse Effect has occurred and is
continuing; and

 

(e)           no Default or Event of Default that the Administrative
Agent and the Lenders have not waived in writing or that has not otherwise been
disclosed to the Administrative Agent has occurred and is continuing.

 

Section 6.               Ratification.

 

(a)           This Agreement is a Loan Document.  The Credit Agreement and all Obligations
thereunder or in connection therewith are hereby ratified, approved, and
confirmed in each and every respect.

 

(b)           The Borrower and each of its Subsidiaries hereby
ratifies, approves and confirms in every respect all the terms, provisions,
conditions and obligations of each of the Security Documents, including without
limitation all Mortgages, Pledge and Security Agreements, and Guaranties, to
which it is a party.

 

Section 7.               Costs and Expenses.  As provided
in Section 9.4 of the Credit Agreement, the Borrower agrees to
reimburse Administrative Agent for all fees, costs, and expenses, including the
reasonable fees, costs, and expenses of counsel or other advisors for advice,
assistance, or other representation in connection with this Agreement.

 

Section 8.               GOVERNING LAW. THIS AGREEMENT HAS
BEEN NEGOTIATED, IS BEING EXECUTED AND DELIVERED, AND WILL BE PERFORMED IN
WHOLE OR IN PART, IN THE STATE OF NEW YORK, AND THE SUBSTANTIVE LAWS OF SUCH
STATE AND THE APPLICABLE FEDERAL LAWS OF THE UNITED STATES OF AMERICA SHALL
GOVERN THE VALIDITY, CONSTRUCTION, ENFORCEMENT AND INTERPRETATION OF THE LOAN
DOCUMENTS, EXCEPT TO THE EXTENT THE LAWS OF ANY JURISDICTION

 

3

 

WHERE
COLLATERAL IS LOCATED REQUIRE APPLICATION OF SUCH LAWS WITH RESPECT TO SUCH
COLLATERAL.

 

Section 9.               Severability. 
Any provision of this Agreement that is prohibited or unenforceable in
any jurisdiction shall, as to such provision and such jurisdiction, be
ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions of this Agreement or affecting the validity
or enforceability of such provision in any other jurisdiction.

 

Section 10.             Counterparts. 
This Agreement may be executed in any number of counterparts, all of
which taken together shall constitute one and the same instrument, and any
party hereto may execute this Agreement by signing one or more
counterparts.  Any signature hereto
delivered by a party by facsimile transmission shall be deemed to be an
original signature hereto.

 

Section 11.             No Waiver.  Except as
expressly set forth in this Agreement, the execution, delivery and
effectiveness of this Agreement shall not operate as a waiver of any default of
the Borrower or any other Obligor or any right, power or remedy of the
Administrative Agent or the other Secured Parties under any of the Loan Documents,
nor constitute a waiver of any provision of any of the Loan Documents.

 

Section 12.             Successors
and Assigns.  This Agreement shall be binding upon the
Borrower and its successors and permitted assigns and shall inure, together
with all rights and remedies of each Lender hereunder, to the benefit of each
Lender and the respective successors, transferees and assigns.

 

Section 13.             Entire Agreement. 
THIS AGREEMENT, THE  CREDIT
AGREEMENT AND THE OTHER LOAN DOCUMENTS CONSTITUTE THE ENTIRE AGREEMENT BETWEEN
THE PARTIES HERETO WITH RESPECT TO THE SUBJECT HEREOF AND SHALL SUPERSEDE ANY
PRIOR AGREEMENT BETWEEN THE PARTIES HERETO, WHETHER WRITTEN OR ORAL, RELATING
TO THE SUBJECT HEREOF.  FURTHERMORE, IN
THIS REGARD, THIS AGREEMENT  REPRESENTS
THE FINAL AGREEMENT AMONG THE PARTIES THERETO AND MAY NOT BE CONTRADICTED BY
EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OF SUCH
PARTIES.

 

THERE ARE NO UNWRITTEN ORAL AGREEMENTS AMONG SUCH
PARTIES.

 

[Signature Pages Follow]

 

4

 

IN WITNESS WHEREOF, the
parties hereto have caused this Agreement to be duly executed and delivered by
their respective duly authorized officers as of the date hereof.

 

	
   

  	
  BORROWER:

  
	
   

  	
   

  
	
   

  	
  PINNACLE
  GAS RESOURCES, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Peter G. Schoonmaker

  
	
   

  	
  Name: 

  	
  Peter
  G. Schoonmaker

  
	
   

  	
  Title:

  	
  Chief
  Executive Officer and President

  

 

5

 

	
   

  	
  ADMINISTRATIVE
  AGENT:

  
	
   

  	
   

  
	
   

  	
  THE
  ROYAL BANK OF SCOTLAND plc,

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/Joe
  Sileo

  
	
   

  	
  Name: 

  	
  Joe
  Sileo

  
	
   

  	
  Title:

  	
  Senior
  Vice President

  

 

6

 

	
   

  	
  LENDER:

  
	
   

  	
   

  
	
   

  	
  THE
  ROYAL BANK OF SCOTLAND plc,

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/Joe
  Sileo

  
	
   

  	
  Name: 

  	
  Joe
  Sileo

  
	
   

  	
  Title:

  	
  Senior
  Vice President

  

 

7Exhibit 10.1

 

AMENDMENT

 

THIS AMENDMENT is made
and entered into as of December, 31, 2009, by and between by and among Eagle
Bancorp, Inc., a Maryland corporation (“Bancorp”), EagleBank, a Maryland
chartered commercial bank (the “Bank”), and Michael T. Flynn (“Flynn”).

 

RECITALS:

 

WHEREAS, Bancorp, the
Bank and Flynn are parties to an Amended and Restated Agreement dated as of December 2,
2008 (the “2008 Agreement”); and

 

WHEREAS, the parties have
mutually agreed to certain amendments to the 2008 Agreement, which the parties
desire to set forth in this Amendment.

 

NOW, THEREFORE, in
consideration of the foregoing recitals and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged,
and intending to be legally bound, the parties hereto agree as follows:

 

1.              Section 2.12 of the 2008 Agreement is amended by
replacing “December 31, 2009” with “August 31, 2011.”

 

2.              In all other respects, the provisions of the 2008
Agreement are reaffirmed and ratified.

 

IN WITNESS WHEREOF, the
parties have executed this Amendment as of the date first written above.

 

	
   

  	
  EAGLE BANCORP, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:  

  	
  /s/ Ronald D. Paul

  
	
   

  	
  Name: 

  	
  Ronald D. Paul

  
	
   

  	
  Title:   

  	
  Chief Executive Officer

  
	
   

  	
   

  	
   

  
	
   

  	
  EAGLEBANK

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:  

  	
  /s/ Ronald D. Paul

  
	
   

  	
  Name. 

  	
  Ronald D. Paul

  
	
   

  	
  Title:   

  	
  Chief Executive Officer

  
	
   

  	
   

  	
   

  
	
   

  	
  MICHAEL T. FLYNN

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  /s/ Michael T. Flynn

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