Document:

Comp Agt Amulet Holdings Ltd 8.19.04

GALAXY MINERALS INC

500 Park Ave. Suite 203, Lake Villa IL 60046

Attn The Directors 

 

AMULET HOLDINGS LIMITED. Suites 25 and 27 Second Floor, Oliaji Trade Centre, Francis Rachel Street, P.O. Box 1312, Victoria, Mahé, Seychelles

RE/ Confirmation, and undertaking relating to the Cullebrillas Mine, Peru./Proposed transaction with Galaxy Minerals Inc.

Galaxy and AMULET Agree that without the efforts of AMULET. The transaction as described in the attached agreement would not be feasible without the efforts of AMULET. Further AMULET has waived it’s rights in order for the transaction to proceed and in return has agreed to receive just and equitable compensation.

 

The purpose therefore of this notice is to record in an orderly fashion the agreed compensation due and payable to AMULET. 

 

Both Galaxy and AMULET bind themselves to this undertaking and agree to do all things necessary in the fulfillment thereof. 

 

Galaxy unconditionally confirms and herby undertakes to compensate AMULET there nominees & or associates ( as directed by AMULET) to the following amounts and structures.

    1. To issue 35,000,000 (Thirty Five million) restricted 144 shares, as soon as practically possible. 

 

    2. During any production as envisaged & contemplated in terms of clause 4 B & C, attached hereto. AMULET will be entitled 25% of net proceeds. Such payments to be made quarterly by Galaxy, as directed by AMULET.

	 
	 	 	 
	

	 

 

3. Should galaxy exercise it’s right to purchase as envisaged and contemplated in terms of clause 7 hereto. AMULET will have the right, to participate to a maximum level equal to 25%. AMULET will be required to confirm in writing within 30 days, after notification by Galaxy of it’s intention to participate.

4. Should Galaxy sell it’s rights as described in the attached agreement at any given point AMULET will be entitled to receive a share of proceeds equaling 25%.

5. At all times AMULET will have access to information & data relating to the project.

6. A right of first refusal shall exist between the parties, relating to each others interest in the project. Should either Galaxy or AMULET wish to sell the rights in full or part thereof, the other party shall have 30 days to equal or better any such offer.

 

	 For and on behalf of Galaxy Minerals Inc	 
	 	 
	 	 
	 	 
	

	

	 Director	  Date

 

 

	 AGREED BY AMULET HOLDINGS LIMITED	 
	 	 
	 	 
	 	 
	

	

	 Authorised Signature	 DateEXHIBIT 10.50E

                    SEVENTH AMENDMENT TO THE CREDIT AGREEMENT

          This  Amendment is made and entered into as of the 30th day of August,
2004,  by and between WELLS FARGO BANK, NATIONAL ASSOCIATION, successor to First
Security Bank ("Bank"), and AMERICAN ECOLOGY CORPORATION, a Delaware corporation
("Borrower").

                                 R E C I T A L S

          A.     Borrower  and Bank entered into a Credit Agreement, dated as of
August  17,  2000  (as amended, modified, or supplemented from time to time, the
"Credit  Agreement").

          B.     Borrower has asked Bank to amend the Credit Agreement to modify
some of the financial covenants and authorize annual dividends to the Borrower's
stockholders.

          C.     Bank  is  willing  to amend the Credit Agreement upon the terms
and  conditions  of  this  Amendment.

                                A M E N D M E N T

          NOW,  THEREFORE,  the  parties  agree  as  follows.

          DEFINITIONS.

          Except as specifically defined otherwise in this Amendment, all of the
terms  herein  shall have the same meaning as contained in the Credit Agreement.

          AMENDMENTS.

               AMENDMENTS  TO  ARTICLE  6  -  NEGATIVE  COVENANTS.

                    SECTION 6.6 OF THE CREDIT AGREEMENT IS AMENDED TO PERMIT THE
DECLARATION  AND  PAYMENT  OF ANNUAL DIVIDENDS, AND THE SECTION SHALL PROVIDE IN
ITS  ENTIRETY  AS  FOLLOWS:

               6.6     DIVIDENDS.  Without  Bank's  prior  written  consent,
          Borrower  shall not declare or pay any dividends; or purchase, redeem,
          retire, or otherwise acquire for value any of its capital stock now or
          hereafter  outstanding;  or  make  any  distribution  of assets to its
          shareholders as such whether in cash, assets, or in obligations of the
          Borrower;  or  allocate or otherwise set apart any sum for the payment
          of  any  dividend or distribution on, or for the purchase, redemption,
          or  retirement  of  any shares of its capital stock; or make any other
          distribution  by  reduction  of capital or otherwise in respect of any
          shares  of its capital stock, except that the Borrower (1) may declare
          and  deliver dividends and make distributions payable solely in common
          stock of the Borrower; (2) may purchase or otherwise acquire shares of
          its capital stock by exchange for or out of the proceeds received from
          a  substantially  concurrent issue of new shares of its capital stock;
          and  (3)

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          may  declare  and  pay  an  annual dividend as long as on the date the
          dividend  is  declared  by  Borrower,  no  Event of Default shall have
          occurred  and  be  continuing,  no  event  or condition that, with the
          giving  of  notice or the passage of time or both, would constitute an
          Event  of  Default  shall  have  occurred  and  be continuing, and the
          payment  of the dividend will not result in the occurrence of an Event
          of  Default.

               AMENDMENTS  TO  ARTICLE  7  -  FINANCIAL  COVENANTS

                    SECTION  7.1  OF  THE CREDIT AGREEMENT IS AMENDED TO REPLACE
THE  REQUIREMENT  THAT  BORROWER  MAINTAIN  A DEBT SERVICE COVERAGE RATIO WITH A
REQUIREMENT  THAT  BORROWER  MAINTAIN  A  FIXED  CHARGE  COVERAGE RATIO, AND THE
SECTION  SHALL  PROVIDE  IN  ITS  ENTIRETY  AS  FOLLOWS:

               7.1     FIXED  CHARGE  COVERAGE RATIO.  Borrower shall maintain a
          ratio  of  EBITDA  to  Fixed Charges determined on a rolling 4-quarter
          basis at the end of each quarter of Borrower's fiscal year of not less
          than  1.20  to  1.00 for Borrower's 2004 and 2005 fiscal years and not
          less  than  1.25 to 1.00 thereafter. The term "EBITDA" shall mean, for
          any  period,  as applied to Borrower, the sum of (1) Borrower's Income
          from Operations (consistent with GAAP and as reported in the Company's
          filings with the Securities and Exchange Commission), plus (2) the sum
          of  the  following  items  to the extent they were deducted to compute
          Borrower's  Income  from  Operations:  (a)  non-cash  accretion  of
          closure/post-closure  obligations,  plus  (b)  depreciation,  plus (c)
          amortization, plus (d) other noncash charges. The term "Fixed Charges"
          shall  mean,  for  any  period,  the sum of (i) principal and interest
          payments for indebtedness of Borrower owing to third parties for money
          borrowed,  including capitalized leases of Borrower, paid or scheduled
          to  be  paid  during  the  period, plus (ii) all cash payments paid or
          scheduled  to  be  paid  during  the  period for deferred closure/post
          closure obligations, plus (iii) all of Borrower's capital expenditures
          during the period, plus (iv) all dividends paid by Borrower during the
          period.

                    SECTION 7.2 OF THE CREDIT AGREEMENT IS AMENDED TO MODIFY THE
LEVERAGE  RATIO TO BE MAINTAINED BY BORROWER BEGINNING AS OF SEPTEMBER 30, 2004,
AND  THE  SECTION  SHALL  PROVIDE  IN  ITS  ENTIRETY  AS  FOLLOWS:

               7.2     LEVERAGE  RATIO.  Borrower  shall  maintain  a  ratio  of
          Borrower's total liabilities to Borrower's shareholder's equity of not
          greater  than  1.00 to 1.00 at the end of each fiscal quarter and each
          fiscal  year.

                    SECTION 7.3 OF THE CREDIT AGREEMENT IS AMENDED TO MODIFY THE
CURRENT  RATIO  TO BE MAINTAINED BY BORROWER BEGINNING AS OF SEPTEMBER 30, 2004,
AND  THE  SECTION  SHALL  PROVIDE  IN  ITS  ENTIRETY  AS  FOLLOWS:

               7.3     CURRENT  RATIO.  Borrower  shall  maintain  at the end of
          each  fiscal quarter and each fiscal year a ratio of current assets to
          current  liabilities of at least 1.50 to 1.00 during Borrower's fiscal
          year  2004  and  at  least  2.00  to  1.00  thereafter.

<PAGE>
          CONSENT  TO  COMMON  STOCK  REPURCHASE  PLAN.

          From September 1, 2004, through August 31, 2005, Borrower may purchase
shares  of  its common stock in an aggregate amount not to exceed $4,000,000, as
long as on the date of each purchase (1) no Event of Default shall have occurred
and  be continuing, (2) no event or condition that, with the giving of notice or
the  passage  of  time  or both, would constitute an Event of Default shall have
occurred  and  be continuing, (3) the purchase will not result in the occurrence
of  an  Event  of  Default,  and  (4)  the  purchase  does  not violate any law.

          CONDITIONS  PRECEDENT.

          As  conditions  precedent to Bank's obligation to extend the financial
accommodations  provided  for  in  this  Amendment,  Borrower  shall execute and
deliver,  or  cause to be executed and delivered, to Bank, in form and substance
satisfactory  to  Bank  and  its  counsel,  the  following:

               EVIDENCE  OF  ALL  CORPORATE  ACTION  BY  BORROWER.

               Certified  copies  of  all  corporate  action  taken  by Borrower
authorizing its execution and delivery of this Amendment and each other document
to be delivered pursuant to this Amendment and its performance of its agreements
thereunder.

               CERTIFICATES  OF  EXISTENCE.

               Certificates  of  good  standing  or  existence  that  Bank  may
reasonably  require  showing that Borrower is in good standing under the laws of
the  state  of  its  incorporation.

               PUBLIC  RECORD  SEARCHES.

               Uniform Commercial Code financing statement searches, federal and
state  income  tax  lien  searches,  judgment  or  litigation searches, or other
similar  searches  that Bank may reasonably require and in such form as Bank may
reasonably  require.

               ADDITIONAL  DOCUMENTATION.

               Such  other  approvals,  opinions,  or  documents  as  Bank  may
reasonably  request.

          REAFFIRMATION  OF  LOAN  DOCUMENTS.

          Borrower  acknowledges and reaffirms all existing security agreements,
financing  statements,  and  any other documents executed in connection with the
Credit  Agreement.

          BORROWER'S COVENANTS, REPRESENTATIONS, AND WARRANTIES.

          In  order to induce Bank to enter into this Amendment and to amend the
Credit  Agreement  in  the  manner  provided  herein,  Borrower acknowledges and
reaffirms  as  true, correct, and complete in all material respects on and as of
the  date  of  this  Amendment  all  covenants,

<PAGE>
representations, and warranties made by Borrower in the Credit Agreement and the
other  Loan Documents to the same extent as though made on and as of the date of
execution  of  this  Amendment.

               Borrower  represents  and  warrants that the execution, delivery,
and  performance  by  the Borrower of this Amendment has been duly authorized by
all  necessary  corporate  action.

               Borrower further represents and warrants that there are no Events
of  Default  or  facts which constitute, or with the passage of time and without
change  will  constitute,  an  Event  of  Default  under  the  Loan  Documents.

               Borrower  further  represents  that  there  has  been no material
adverse change in Borrower's business or financial condition from that reflected
in  the  most recent of Borrower's financial statements that have been delivered
to  Bank.

               Borrower  further  represents  and  warrants that Borrower has no
claims  or causes of action of any kind whatsoever against Bank or any of Bank's
present  or  former  employees, officers, directors, attorneys, or agents of any
kind  in  their  capacity  as  such  (collectively,  the "Released Parties") and
further,  that  the  Released  Parties  have  performed  all  of  the respective
obligations  under  the  Credit  Agreement  and  other  Loan  Documents and have
complied  with  all  provisions  therein  set  forth.

               Borrower  acknowledges and agrees that as of August 27, 2004, the
outstanding principal balance of the Revolving Loans is $0.00, and the aggregate
stated  amount of all Letters of Credit outstanding and available for drawing is
$3,258,262.00.

          COURSE  OF  DEALING.

          No  course  of  dealing  heretofore  or hereafter between Borrower and
Bank,  or  any  failure or delay on the part of Bank in exercising any rights or
remedies under the Credit Agreement or existing by law shall operate as a waiver
of  any right or remedy of Bank with respect to said indebtedness, and no single
or  partial  exercise of any right or remedy hereunder shall operate as a waiver
or  preclusion  to the exercise of any other rights or remedies Bank may have in
regard  to  said  indebtedness.

          GOVERNING  LAW.

          This  Amendment is made in the State of Idaho, which state the parties
agree  has  a  substantial  relationship  to  the  parties and to the underlying
transaction  embodied  hereby.  Accordingly, in all respects, this Amendment and
the Loan Documents and the obligations arising hereunder and thereunder shall be
governed  by,  and  construed in accordance with, the laws of the State of Idaho
applicable  to contracts made and performed in such state and any applicable law
of  the  United  States  of  America.  Each  party  hereby  unconditionally  and
irrevocably  waives, to the fullest extent permitted by law, any claim to assert
that  the  law  of  any  jurisdiction other than the State of Idaho governs this
Amendment  and  the  Loan  Documents.

<PAGE>
          COSTS  AND  EXPENSES.

          Borrower  shall  pay  on  demand by Bank all Bank Expenses incurred by
Bank in connection with the preparation, execution, delivery, filing, recording,
and  administration  of  this  Amendment  or  any  of the documents contemplated
hereby,  including,  without  limitation,  the reasonable fees and out of pocket
expenses  of  counsel  for Bank with respect to this Amendment and the documents
and  transactions  contemplated  hereby.

          ENTIRE  AGREEMENT.

          The  Credit  Agreement  as amended by this Amendment together with the
other  Loan  Documents  supersedes  all  prior negotiations, understandings, and
agreements  between  the  parties,  whether  oral  or  written,  and  all  such
negotiations,  understandings,  and agreements are evidenced by the terms of the
Loan  Documents.  The  Credit Agreement may not be further altered or amended in
any  manner  except  by  a  writing  signed  by  Bank  and  Borrower.

          EFFECTS  OF  THIS  AMENDMENT.

          This  Amendment  shall  be  binding  and  deemed  effective when it is
executed  by  Borrower,  accepted  and  executed  by  Bank,  and  all conditions
precedent  set forth in Section 3 have been fulfilled.  All terms, covenants and
conditions  of  the  Credit  Agreement  that have not been modified, amended, or
otherwise  changed by this Amendment are reaffirmed and remain in full force and
effect.

          COUNTERPARTS.

          This Amendment may be executed in counterparts and may be delivered by
facsimile transmission.  Each such counterpart shall constitute an original, but
all  such  counterparts  shall  constitute  but  one  Amendment.

                             Signature Pages Follow

<PAGE>
          IN  WITNESS  WHEREOF,  Borrower  has executed this Amendment as of the
date  first  written  above.

                              BORROWER:

                              AMERICAN ECOLOGY CORPORATION

                              By/s/ James R. Baumgardner
                                ------------------------
                                James R. Baumgardner
                                Sr. Vice President and CFO

                               GUARANTOR'S CONSENT

          Each  Guarantor  consents  to,  acknowledges, and accepts the forgoing
Amendment.  Each Guarantor affirms and ratifies its Continuing and Unconditional
Guaranty  made  by  Guarantor  for  the  benefit  of  Bank (the "Guaranty"), and
confirms that the Guaranty remains in full force and effect and binding upon the
Guarantor  without  any  setoffs,  defenses,  or  counterclaims  of  any  kind
whatsoever.  Each  Guarantor  also  acknowledges  and  reaffirms  all  existing
security agreements, financing statements, and any other documents the Guarantor
executed  in  connection  with  the  Guaranty  or  the  Credit  Agreement.

          Dated  as  of  August  30,  2004.

                              GUARANTORS:

                              AMERICAN ECOLOGY SERVICES CORPORATION

                              By/s/ James R. Baumgardner
                                ------------------------
                                James R. Baumgardner
                                Sr. Vice President and CFO

                              AMERICAN ECOLOGY MANAGEMENT CORPORATION

                              By/s/ James R. Baumgardner
                                ------------------------
                                James R. Baumgardner
                                Vice President and Treasurer

                              TEXAS ECOLOGISTS, INC

                              By/s/ James R. Baumgardner
                                ------------------------
                                James R. Baumgardner
                                Vice President and Treasurer

                              AMERICAN ECOLOGY RECYCLE CENTER, INC.

<PAGE>
                              By/s/ James R. Baumgardner
                                ------------------------
                                James R. Baumgardner
                                Vice President and Treasurer

                              AMERICAN ECOLOGY ENVIRONMENTAL SERVICES
                              CORPORATION

                              By/s/ James R. Baumgardner
                                ------------------------
                                James R. Baumgardner
                                Vice President and Treasurer

                              US ECOLOGY, INC.

                              By/s/ James R. Baumgardner
                                ------------------------
                                James R. Baumgardner
                                Vice President and Treasurer

                              US ECOLOGY IDAHO, INC.

                              By/s/ James R. Baumgardner
                                ------------------------
                                James R. Baumgardner
                                Vice President and Treasurer

                           BANK'S ACCEPTANCE

          Accepted  and  effective  as  of  the 30th day of August, 2004, in the
State  of  Idaho.

                              WELLS FARGO BANK, NATIONAL ASSOCIATION

                              By/s/ Brian W. Cook
                                -----------------
                                Brian W. Cook, Vice President

<PAGE>

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