Document:

exh10-20_formofwaiver.htm

 

 

 

 

 

 

 

EXHIBIT 10.20

 

FORM OF WAIVER AND AMENDMENT AGREEMENT BETWEEN

PETROHUNTER ENERGY CORPORATION AND HOLDERS OF 

CONVERTIBLE DEBENTURES

 

 

  

  

  

WAIVER AND AMENDMENT AGREEMENT

THIS WAIVER AND AMENDMENT AGREEMENT (this “Agreement”) is made as of April __, 2010, among PetroHunter Energy Corporation, a Maryland corporation (“PetroHunter” or the “Company”), and the several purchasers signatory hereto (each such purchaser, a “Purchaser” and, collectively, the “Purchasers”).

 

W I T N E S S E T H:

 

WHEREAS, from November 5, 2007 through November 16, 2007, the Company and the Purchaser entered into Securities Purchase Agreements (the “Securities Purchase Agreements”), pursuant to which the Company issued to the Purchaser, among other things, Series A 8.5% Convertible Debentures in the aggregate principal amount of $6,956,387( the “Debentures”) and warrants (the “Warrants”), to purchase an aggregate of 46,375,914 shares (the “Warrant Shares”) (subject to adjustment as provided therein) of the Common Stock of the Company and, in connection therewith, entered into Registration Rights Agreements (the “Registration Rights Agreements”), with the Purchaser; and

 

WHEREAS, the Company agreed initially to register (i) all of the shares of Common Stock issuable upon conversion in full of the Debentures (the “Debenture Shares”), (ii) all shares of Common Stock issuable as interest on the Debentures (the “Interest Shares”) assuming all permissible interest payments are made in shares of Common Stock and the Debentures are held until maturity, (iii) all Warrant Shares, (iv) any additional shares of Common Stock issuable in connection with any anti-dilution provisions in the Debentures or the Warrants (in each case, without giving effect to any limitations on conversion set forth in the Debentures or limitations on exercise set forth in the Warrants), and (v) any securities issued or issuable upon any stock split, dividend or other distribution, recapitalization or similar event with respect to the foregoing (collectively, the “Registrable Securities”); and

 

WHEREAS, the Company agreed to prepare and file with the Securities and Exchange Commission (the “Commission”) a registration statement covering the resale of all or such portion of the Registrable Securities as permitted by SEC Guidance on or before the 120th calendar day following the date of the Registration Rights Agreements (the “Filing Date”) and to use its best efforts to cause such registration statement to be declared effective as promptly as possible after the filing thereof, but in any event prior to 240th calendar day following the date of the Registration Rights Agreements (the “Effective Date”); and

 

WHEREAS, the Company and the Purchaser entered into various Waiver and Amendment Agreements that waived the Company’s obligation to register the Debenture Shares and extended the deadlines for the Filing Date and Effective Date to such time as the Warrants are “in the money”; and

 

WHEREAS, the Company agreed to pay the quarterly interest installments due January 2, 2009 and April 1, 2009 by October 1, 2009, but has not paid such installments; and

 

WHEREAS, the Company has not paid the quarterly payments of interest due October 1, 2009 and January 1, 2010 under the Debentures;

 

Waiver and Amendment Agreement – page 1

 

  

  

  

NOW, THEREFORE, in consideration of the agreements, provisions and covenants contained herein and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, each of the undersigned agrees as follows:

 

1.           Extension of Maturity Date.  Purchaser hereby agrees to extend the Maturity Date of its Debenture to December 31, 2014 (the “New Maturity Date”).

 

2.           Waiver of Default.  Purchaser hereby waives the Company’s failure to pay interest originally due January 2, 2009, April 1, 2009, October 1, 2009 and January 1, 2010 (the “Late Installments”) as Events of Default under the Debentures.

 

3.           Payment and Accrual of Interest.

 

(a)           The Company shall pay the Late Installments and any interest accrued through the date of this Agreement through the issuance of its restricted shares of common stock, based on a value of $0.125 per share.

 

(b)           Purchaser agrees to waive the receipt of interest installments due under the Debenture from the date of this Agreement.  Interest will accrue under the Debenture, but will be paid at the New Maturity Date.

 

(c)           Purchaser agrees to waive the payment and accrual of Late Fees under the Debenture from the date of this Agreement.

 

(d)           The Company agrees to pay the accrued Late Fees on the Late Installments at the New Maturity Date.

 

4.           Reduction of Warrant Exercise Price and Extension of Warrant Termination Date.  In consideration for the Purchaser’s waivers and agreements, the Company agrees that all Warrants owned by Purchaser shall be exercisable at $0.175 per share through December 31, 2011 and at $0.12 through December 31, 2014.

 

5.            Reduction of Conversion Price.  In consideration for the Purchaser’s waivers and agreements, the Company agrees that the Conversion Price under the Debenture shall be reduced to $0.125 through December 31, 2011 and from January 1, 2012 through December 31, 2014, the Conversion Price shall be $0.10.

 

6.           Confirmation of Security Interest.  Purchaser acknowledges that it has been advised by the Company that the Company and its wholly-own subsidiary, Sweetpea Petroleum Pty Ltd (“Sweetpea”), have agreed to transfer the 25% working interest in the Beetaloo Basin Project, currently held of record by Sweetpea, to Falcon Oil & Gas Australia Pty Ltd (“Falcon Australia”) for an initial 25% equity ownership in Falcon Australia.  Falcon Oil & Gas Ltd., which owns a 75% working interest in the Beetaloo Basin Project, will receive an initial 75% equity ownership in Falcon Australia.  The Company confirms to Purchaser that it, together with all of the holders of the Debentures, has a first lien on the Company’s shares of Sweetpea.  This first lien position is shared with Global Project Finance AG to secure the repayment of up to $6.5 million advanced by Global to the Company under Credit and Security Agreements dated January 9, 2007 and May 21, 2007.

 

Waiver and Amendment Agreement – page 2

 

  

  

  

7.           If the Company (a) applies for or consents to the appointment of, or if there shall be a taking of possession by, a receiver, custodian, trustee or liquidator for the Company or any of its property; (b) makes a general assignment for the benefit of creditors; (c) files or is served with any petition for relief under the Bankruptcy Code or any similar federal or state statute; or (d) has any judgment entered against it in excess of $2,000,000 in any one instance, then the Purchaser shall have the right to accelerate the maturity date of its Debenture, notwithstanding the provisions of paragraph 1 above.

 

8.           Execution and Counterparts. This Agreement may be executed in two or more counterparts, all of which when taken together shall be considered one and the same agreement and shall become effective when counterparts have been signed by each party and delivered to the other party, it being understood that both parties need not sign the same counterpart.  In the event that any signature is delivered by facsimile transmission or by e-mail delivery of a “.pdf” format data file, such signature shall create a valid and binding obligation of the party executing (or on whose behalf such signature is executed) with the same force and effect as if such facsimile or “.pdf” signature page were an original thereof.

 

9.           Governing Law.  All questions concerning the construction, validity, enforcement and interpretation of this Agreement shall be determined in accordance with the provisions of the Securities Purchase Agreements.

 

10.           Headings. The headings in this Agreement are for convenience only, do not constitute a part of the Agreement and shall not be deemed to limit or affect any of the provisions hereof.

 

11.           Expenses.  Each party shall pay the fees and expenses of its counsel, and all other expenses, incurred by such party incident to the negotiation, preparation, execution, delivery and performance of this Agreement, provided that the Company shall pay all actual attorneys’ fees and expenses (including disbursements and out-of-pocket expenses) incurred by RENN Capital Group, Inc. in connection with the preparation, negotiation, execution and delivery of this Agreement.  Such fees and expenses shall be paid upon the execution of this Agreement.

 

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

 

PETROHUNTER ENERGY CORPORATION

By:____________________________________

Name:___________________________

Title:____________________________

 

[SIGNATURE PAGE OF PURCHASERS FOLLOWS]

 

Waiver and Amendment Agreement – page 3

 

  

  

  

 [SIGNATURE PAGE OF PURCHASERS TO PETROHUNTER WAIVER AND AMENDMENT AGREEMENT]

Name of Purchaser: _________________________________________________________

 

Signature of Authorized Signatory of Purchaser: ______________________

 

Name of Authorized Signatory:__________________________________

 

Title of Authorized Signatory:___________________________________

 

 

 

 

 

 

 

 

Waiver and Amendment Agreement – page 4exv10w1

Exhibit 10.1

AMENDMENT TO AGREEMENT

          This AGREEMENT, dated as of December 20, 2010, is between IDEX Corporation, a Delaware
corporation with its headquarters at 1925 West Field Court, Suite 200, Lake Forest, Illinois 60045
(“IDEX”), IDEX Service Corporation, a Delaware corporation with its headquarters at 1925 West Field
Court, Suite 200, Lake Forest, Illinois 60045 (the “Company”), and Dominic A. Romeo (the
“Executive”).

RECITALS

          A. The Executive is currently employed as Vice President & Chief Financial Officer of IDEX,
pursuant to an Employment Agreement between the Company and the Executive dated as of March 1, 2010
(the “Employment Agreement”).

          B. The original term of the Employment Agreement expires on February 29, 2012. Executive has
indicated that it is his desire to retire from his position as Vice President & Chief Financial
Officer of IDEX effective as of February 28, 2011.

          C. IDEX desires that the Executive assist in the orderly transition of his duties and the
Executive is willing to perform his duties to assist in such transition.

          D. The Company and the Executive desire to enter into this Agreement to amend the terms of the
Employment Agreement and to set forth certain terms of Executive’s continued employment through the
Retirement Date as defined below.

          NOW, THEREFORE, in consideration of the promises and of the covenants contained in this
Agreement, IDEX, the Company and the Executive agree to amend the Employment Agreement and other
agreements identified below as follows:

          1. Definitions. The following definitions apply for purposes of this Agreement.
Defined terms not set out below will have the meaning given to them under the terms of the
Employment Agreement

          (a) “Effective Date” means December 20, 2010.

          (b) “Retirement Date” means the earlier of February 28, 2010 or the date of Executive’s
termination of employment under circumstances governed by Sections 6(b) or 6(c) of the Employment
Agreement.

          2. Resignation of Positions. As of the Retirement Date, the Executive hereby (i)
retires and resigns from his position as Vice President & Chief Financial Officer of IDEX and (ii)
retires and resigns from all offices, directorships, and fiduciary positions with the Company, its
related companies, and their employee benefit plans.

 

 

          3. Compensation. In lieu of the provisions of Section 4 of the Employment Agreement, the
following compensation will be provided:

          (a) From the Effective Date through the Retirement Date, the Executive will receive continuing
payment of Executive’s current annual Base Salary of $450,000 in bi-weekly payroll payments and
will be entitled to participate in the Corporation’s health and medical benefit plans, any pension,
profit sharing and retirement plans, and any insurance policies or programs from time to time
generally offered to all or substantially all executive employees who are employed by the
Corporation. These plans, policies and programs are subject to change at the sole discretion of
the Corporation.

          (b) Executive will be entitled to receive payment of any Annual MICP Bonus under the terms of
the Management Incentive Compensation Plan for the service period of calendar year 2010 using a
Personal Performance Multiplier of 1.15. This Annual MICP Bonus will be paid at the time specified
pursuant to the terms of the Plan in 2011 but not later than by March 15, 2011.

          (c) If the Retirement Date is on February 28, 2011, Executive will receive a payment of
$52,500, representing a proportionate share of his Annual MICP Bonus calculated at target level of
performance and Executive will not be entitled to any other Annual MICP Bonus for the service
period in calendar year 2011. Payment of this amount is conditioned on the Executive’s signing and
not revoking a release after the Retirement Date, but on or before March 20, 2011, releasing the
Corporation, related companies, and their respective directors, officers, employees and agents
(“Indemnitees”) from any and all claims and liabilities, and promising never to sue any of the
Indemnities (such release shall be in such form as is then currently in use for departing
Corporation senior executives). Payment of this amount will be made on first regular payroll date
after March 30, 2011.

          (d) On or before December 30, 2010, Executive will receive a payment of $220,000 in full
settlement of any and all contractual claims for payments for Base Salary, Annual MICP Bonus, or
other compensation amounts under the Employment Agreement for periods after February 28, 2011. This
payment will not be considered “compensation” for purposes of the IDEX Corporation Supplemental
Executive Retirement Plan.

          (e) The Corporation will deduct or withhold from all salary and from all other payments made
to the Executive pursuant to this Agreement, all amounts that may be required to be deducted or
withheld under any applicable Social Security contribution, income tax withholding or other similar
law now in effect or that may become effective during the term of this Agreement.

          4. Other Benefits And Terms.

          (a) Equity Compensation. Notwithstanding the terms of IDEX Corporation Incentive Award Plan
or any related award agreements:

     (i) all restricted stock awards made to the Executive on April 3, 2007, April
8, 2008 and February 24, 2009, which have not otherwise vested pursuant to their
terms, are fully vested and non-forfeitable as of the Effective Date,

-2-

 

     (ii) all stock options granted to Executive on April 3, 2007, April 8, 2008,
and February 24, 2009 which have not otherwise become vested and exercisable
pursuant to their terms will be fully vested and immediately exercisable as of the
Effective Date, and

     (iii) Executive hereby forfeits and surrenders any and all restricted stock
awards and stock option grants made to him on or after December 31, 2009.

          (b) Medical Coverage. Except as required by law, the Executive acknowledges that he, his
spouse and dependents will not receive health and medical benefits following the Retirement Date.

          (c) Other Payments on Termination Inapplicable. Executive and Company agree that as of the
Effective Date, the provisions of Sections 6(a) (Benefits upon Involuntary termination Other than
for Cause), and 6(d) (Involuntary Termination (Other than for Cause) Within Two Years Following a
Change in Control), will no longer be in effect.

          5. Non-exclusivity of Rights. Except as otherwise specifically provided herein,
nothing in this Agreement will prevent or limit the Executive’s continued participation in any
benefit, incentive, or other plan, practice, or program provided by the Company and for which the
Executive may qualify. Any amount of vested benefit or any amount to which the Executive is
otherwise entitled under any plan, practice, or program of the Company will be payable in
accordance with the plan, practice, or program, except as specifically modified by this Agreement.

          6. Miscellaneous. This Agreement (a) may not be amended, modified or terminated
orally or by any course of conduct pursued by the Company or the Executive, but may be amended,
modified or terminated only by a written agreement duly executed by the Company and the Executive,
(b) is binding upon and inures to the benefit of the Company and the Executive and each of their
respective heirs, representatives, successors and assignees, except that the Executive may not
assign any of his rights or obligations pursuant to this Agreement, (c) except as provided in
Sections 7 and 8 of this Agreement, constitutes the entire agreement between IDEX, the Company and
the Executive with respect to the subject matter of this Agreement, and supersedes all oral and
written proposals, representations, understandings and agreements previously made or existing with
respect to such subject matter other than the Employment Agreement as herby modified and (d) will
be governed by, and interpreted and construed in accordance with, the laws of the State of
Illinois, without regard to principles of conflicts of law.

          7. Termination Of This Agreement and Employment Agreement. This Agreement and the
Employment Agreement will terminate when the Company has made the last payment provided for
thereunder; provided, however, the parties specifically acknowledge that the provisions set forth
under Sections 5 (Restrictive Covenants), and 17 (Section 409A) of the Employment Agreement will
survive any termination and will remain in full force and effect.

-3-

 

          8. Continuation of Other Agreements. Except as specifically amended by this Agreement,
the following preexisting agreements between IDEX, the Company, and the Executive shall remain in
full force and effect and their survival will not be affected by the termination of this Agreement
: (i) restricted stock awards, (ii) stock option award agreements, (ii) Indemnity Agreement, and
(iv) Employee Inventions and Proprietary Information Agreement.

          9. Multiple Counterparts. This Agreement may be executed in one or more counterparts,
each of which shall be deemed an original, but all of which together shall constitute one and the
same instrument. Any party may execute this Agreement by facsimile signature and the other party
shall be entitled to rely on such facsimile signature as evidence that this Agreement has been duly
executed by such party. Any party executing this Agreement by facsimile signature shall
immediately forward to the other party an original page by overnight mail.

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

	 	 	 	 	 
	 	IDEX CORPORATION

 	 
	 	By:  	 	 
	 	 	 	 
	 	 	 	 
	 	IDEX SERVICE CORPORATION

 	 
	 	By:  	 	 
	 	 	 	 
	 	 	 	 
	 	 EXECUTIVE

 	 
	 	Dominic A. Romeo 	 
	 	 	 

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