Exhibit 10.15
AMENDED AND RESTATED CREDIT AGREEMENT
AMONG
ALAMCO, INC.,
ALAMCO-DELAWARE, INC.
AND
BANK ONE, TEXAS, NATIONAL ASSOCIATION
Effective as of October 1, 1995
REVOLVING LINE OF CREDIT OF UP TO $30,000,000
TABLE OF CONTENTS
Page
ARTICLE I DEFINITIONS AND INTERPRETATION . . . . . . . . . . . . . . 1
1.1 Terms Defined Above . . . . . . . . . . . . . . . . . . . . 1
1.2 Additional Defined Terms . . . . . . . . . . . . . . . . . 1
1.3 Undefined Financial Accounting Terms . . . . . . . . . . . 13
1.4 References . . . . . . . . . . . . . . . . . . . . . . . . 13
1.5 Articles and Sections . . . . . . . . . . . . . . . . . . . 13
1.6 Number and Gender . . . . . . . . . . . . . . . . . . . . . 14
1.7 Incorporation of Exhibits . . . . . . . . . . . . . . . . . 14
ARTICLE II AMOUNT AND TERMS OF FACILITY . . . . . . . . . . . . . . . 14
2.1 Revolving Line of Credit . . . . . . . . . . . . . . . . . 14
2.2 Letters of Credit . . . . . . . . . . . . . . . . . . . . . 14
2.3 Use of Proceeds and Letters of Credit. . . . . . . . . . . 15
2.4 Interest . . . . . . . . . . . . . . . . . . . . . . . . . 15
2.5 Repayment of Advances and Interest Thereon . . . . . . . . 15
2.6 Advances and Payments on Note . . . . . . . . . . . . . . . 15
2.7 Borrowing Base Determinations . . . . . . . . . . . . . . 16
2.8 Mandatory Prepayments . . . . . . . . . . . . . . . . . . . 17
2.9 Voluntary Prepayments . . . . . . . . . . . . . . . . . . . 17
2.10 Commitment Fees . . . . . . . . . . . . . . . . . . . . . . 17
2.11 Facility Fees . . . . . . . . . . . . . . . . . . . . . . . 17
2.12 Engineering Fees . . . . . . . . . . . . . . . . . . . . . 18
2.13 Letter of Credit Fees . . . . . . . . . . . . . . . . . . . 18
2.14 Advances to Satisfy Obligations of Borrowers . . . . . . . 18
2.15 Pledge of and Security Interest in Accounts and Right of
Offset or Lien . . . . . . . . . . . . . . . . . . . . . . 18
2.16 General Provisions Relating to Interest . . . . . . . . . . 19
2.17 Yield Protection . . . . . . . . . . . . . . . . . . . . . 20
2.18 Power of Attorney . . . . . . . . . . . . . . . . . . . . . 21
ARTICLE III CONDITIONS . . . . . . . . . . . . . . . . . . . . . . . . 22
3.1 Receipt of Loan Documents and Other Items; First Advance . 22
3.2 Each Advance and Letter of Credit . . . . . . . . . . . . . 24
ARTICLE IV REPRESENTATIONS AND WARRANTIES . . . . . . . . . . . . . . 25
4.1 Due Authorization and Corporate Existence . . . . . . . . . 25
4.2 Valid and Binding Obligations . . . . . . . . . . . . . . . 25
4.3 Title to Assets . . . . . . . . . . . . . . . . . . . . . . 26
4.4 Scope and Accuracy of Financial Statements . . . . . . . . 26
4.5 Liabilities, Litigation and Restrictions . . . . . . . . . 26
4.6 Authorizations and Consents . . . . . . . . . . . . . . . . 26
4.7 Compliance with Laws . . . . . . . . . . . . . . . . . . . 26
4.8 Proper Filing of Tax Returns and Payment of Taxes Due . . . 26
4.9 ERISA . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
4.10 Environmental Laws . . . . . . . . . . . . . . . . . . . . 27
4.11 Compliance with Federal Reserve Regulations . . . . . . . . 28
4.12 Investment Company Act Compliance . . . . . . . . . . . . . 28
4.13 Public Utility Holding Company Act Compliance . . . . . . . 28
4.14 Refunds . . . . . . . . . . . . . . . . . . . . . . . . . . 28
4.15 Gas Contracts . . . . . . . . . . . . . . . . . . . . . . . 28
4.16 No Material Misstatements . . . . . . . . . . . . . . . . . 29
4.17 Casualties or Taking of Property . . . . . . . . . . . . . 29
4.18 Locations of Business, Offices and Property . . . . . . . . 29
4.19 Security Instruments . . . . . . . . . . . . . . . . . . . 29
4.20 Subsidiaries . . . . . . . . . . . . . . . . . . . . . . . 29
ARTICLE V AFFIRMATIVE COVENANTS . . . . . . . . . . . . . . . . . . . 29
5.1 Maintenance and Access to Records . . . . . . . . . . . . . 29
5.2 Quarterly Financial Statements . . . . . . . . . . . . . . 30
5.3 Annual Financial Statements . . . . . . . . . . . . . . . . 30
5.4 Reserve Reports . . . . . . . . . . . . . . . . . . . . . . 30
5.5 Lockbox Reports . . . . . . . . . . . . . . . . . . . . . . 31
5.6 Stockholder Communications and Securities and Exchange
Commission Filings . . . . . . . . . . . . . . . . . . . . 31
5.7 Notices of Certain Events . . . . . . . . . . . . . . . . . 31
5.8 Notification Letters . . . . . . . . . . . . . . . . . . . 32
5.9 Additional Information . . . . . . . . . . . . . . . . . . 33
5.10 Compliance with Laws . . . . . . . . . . . . . . . . . . . 33
5.11 Payment of Assessments and Charges . . . . . . . . . . . . 33
5.12 Indemnification . . . . . . . . . . . . . . . . . . . . . . 33
5.13 Maintenance of Corporate Existence and Good Standing . . . 34
5.14 Further Assurances . . . . . . . . . . . . . . . . . . . . 34
5.15 Initial Fees and Expenses of Lender and/or Legal Counsel
to Lender . . . . . . . . . . . . . . . . . . . . . . . . . 35
5.16 Subsequent Fees and Expenses of Lender . . . . . . . . . . 35
5.17 Maintenance and Inspection of Tangible Properties . . . . . 36
5.18 Maintenance of Insurance and Evidence Thereof . . . . . . . 36
5.19 Payment of Note and Performance of Obligations . . . . . . 36
5.20 Operation of Oil and Gas Properties . . . . . . . . . . . . 36
5.21 Current Ratio . . . . . . . . . . . . . . . . . . . . . . . 36
5.22 Shareholders' Equity . . . . . . . . . . . . . . . . . . . 37
5.23 Existing Business . . . . . . . . . . . . . . . . . . . . . 37
5.24 Lockbox Arrangement With Lockbox Account and Working
Interest Owners Account . . . . . . . . . . . . . . . . . . 37
5.25 Debt Coverage Ratio . . . . . . . . . . . . . . . . . . . . 37
ARTICLE VI NEGATIVE COVENANTS . . . . . . . . . . . . . . . . . . . . 38
6.1 Indebtedness . . . . . . . . . . . . . . . . . . . . . . . 38
6.2 Contingent Obligations . . . . . . . . . . . . . . . . . . 38
6.3 Liens . . . . . . . . . . . . . . . . . . . . . . . . . . . 38
6.4 Sales of Assets . . . . . . . . . . . . . . . . . . . . . . 39
6.5 Loans or Advances . . . . . . . . . . . . . . . . . . . . . 39
6.6 Payment of Accounts Payable . . . . . . . . . . . . . . . . 39
6.7 Cancellation of Insurance . . . . . . . . . . . . . . . . . 39
6.8 Leases . . . . . . . . . . . . . . . . . . . . . . . . . . 39
6.9 Investments . . . . . . . . . . . . . . . . . . . . . . . . 39
6.10 Changes in Corporate Structure . . . . . . . . . . . . . . 40
6.11 Transactions with Affiliates . . . . . . . . . . . . . . . 40
6.12 Lines of Business . . . . . . . . . . . . . . . . . . . . . 41
6.13 Organization or Acquisition of Subsidiaries, L.L.C.'s,
Partnerships and/or Joint Ventures . . . . . . . . . . . . 41
6.14 Clarksburg Gas and Tax Credit Properties . . . . . . . . . 41
ARTICLE VII EVENTS OF DEFAULT . . . . . . . . . . . . . . . . . . . . . 41
7.1 Enumeration of Events of Default . . . . . . . . . . . . . 41
7.2 Remedies . . . . . . . . . . . . . . . . . . . . . . . . . 44
ARTICLE VIII MISCELLANEOUS . . . . . . . . . . . . . . . . . . . . . . . 45
8.1 Transfers and Participations . . . . . . . . . . . . . . . 45
8.2 Survival of Representations, Warranties and Covenants . . . 45
8.3 Notices and Other Communications . . . . . . . . . . . . . 45
8.4 Parties in Interest . . . . . . . . . . . . . . . . . . . . 46
8.5 Rights of Third Parties . . . . . . . . . . . . . . . . . . 46
8.6 Renewals and Extensions . . . . . . . . . . . . . . . . . . 46
8.7 No Waiver; Rights Cumulative . . . . . . . . . . . . . . . 46
8.8 Survival Upon Unenforceability . . . . . . . . . . . . . . 47
8.9 Amendments or Modifications . . . . . . . . . . . . . . . . 47
8.10 Controlling Provision Upon Conflict . . . . . . . . . . . . 47
8.11 Time, Place and Method of Payments . . . . . . . . . . . . 47
8.12 Disposition of Collateral . . . . . . . . . . . . . . . . . 47
8.13 GOVERNING LAW . . . . . . . . . . . . . . . . . . . . . . . 48
8.14 JURISDICTION AND VENUE . . . . . . . . . . . . . . . . . . 48
8.15 WAIVER OF RIGHTS TO JURY TRIAL . . . . . . . . . . . . . . 48
8.16 ENTIRE AGREEMENT . . . . . . . . . . . . . . . . . . . . . 48
LIST OF EXHIBITS
EXHIBIT I - Form of Note
EXHIBIT II - Form of Compliance Certificate
EXHIBIT III - Disclosures
AMENDED AND RESTATED CREDIT AGREEMENT
THIS AMENDED AND RESTATED CREDIT AGREEMENT, made and entered
into effective as of the 1st day of October, 1995, by and among ALAMCO, INC., a
Delaware corporation ("Alamco") and ALAMCO-DELAWARE, INC., a Delaware corpo-
ration ("Aladel") (Alamco and Aladel each a "Borrower" and collectively, the
"Borrowers"), and BANK ONE, TEXAS, NATIONAL ASSOCIATION, a national banking
association (the "Lender"), evidences the arrangements concerning certain
advances to the Borrowers by the Lender.
W I T N E S S E T H:
WHEREAS, Alamco, Lender, and Interstate Resources, Inc. entered
into that certain Credit Agreement dated March 27, 1991, as amended by that
certain First Amendment to Credit Agreement dated effective as of April 22,
1992, the Second Amendment to Credit Agreement dated effective as of December
14, 1992, and the Third Amendment to Credit Agreement dated effective as of July
26, 1993, and Alamco, Lender and Aladel entered into that certain Fourth
Amendment to Credit Agreement dated effective as of August 1, 1994 (such Credit
Agreement as so amended, the "Prior Agreement"); and
WHEREAS, Alamco, Aladel, and Lender desire to amend and restate
the Prior Agreement as provided herein;
NOW THEREFORE, in consideration of the mutual covenants and
agreements herein contained and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the Borrowers and the
Lender hereby amend and restate the Prior Agreement to read as follows:
ARTICLE I
DEFINITIONS AND INTERPRETATION
1.1 Terms Defined Above. As used in this Credit Agreement,
the terms "Aladel," "Alamco," "Borrower," "Borrowers," and "Lender" shall have
the meaning assigned to such terms hereinabove.
1.2 Additional Defined Terms. As used in this Credit
Agreement, each of the following terms shall have the meaning assigned thereto
in this Section, unless the context otherwise requires:
"Advance" shall mean an advance of funds made by the
Lender to the Borrowers under this Agreement and any payment made by
the Lender under a Letter of Credit.
"Affiliate" shall mean any Person directly or indirectly
controlling, or under common control with, either Borrower and
includes any Subsidiary and any "affiliate" of either Borrower
within the meaning of the regulations promulgated pursuant to the
Securities Act of 1933, as amended, with "control," as used in this
definition, meaning possession, directly or indirectly, of the power
to direct or cause the direction of management, policies or action
through ownership of voting securities, contract, voting trust,
membership in management or in the group appointing or electing
management or otherwise through formal or informal arrangements or
business relationships.
"Agreement" shall mean this Amended and Restated Credit
Agreement and all exhibits and schedules hereto, as the same may be
amended, modified, supplemented or restated from time to time
according to the terms hereof.
"Assignment" shall mean the Assignment and Bill of Sale
dated as of August 11, 1994, from Alamco in favor of Clarksburg Gas,
and recorded in Book 1255, Page 649 of the assignment records of
Harrison County, West Virginia.
"Available Commitment" shall mean, at any time, an amount
equal to the remainder, if any, of (a) the lesser of the Commitment
Amount or the Borrowing Base in effect at such time minus (b) the
sum of the Loan Balance at such time plus the L/C Exposure at such
time.
"Base Rate" shall mean, at any time, an interest rate per
annum equal to the interest rate then most recently announced or
published by the Lender as its base rate, which may not be the
lowest interest rate charged by the Lender, AND which Base Rate
shall change upon any change in such announced or published base
rate of the Lender, all without notice to the Borrowers.
"Borrowing Base" shall mean, at any time, the amount
determined by the Lender in accordance with Section 2.7 and then in
effect.
"Business Day" shall mean a day other than a Saturday,
Sunday or legal holiday for commercial banks under the laws of the
State of Texas.
"Clarksburg Gas" shall mean Clarksburg Gas Limited
Partnership, a West Virginia limited partnership.
"Closing Date" shall mean the effective date of this
Agreement.
"Code" shall mean the United States Internal Revenue Code
of 1986, as amended from time to time.
"Collateral" shall mean the Mortgaged Properties and any
other Property of either Borrower, wherever located and whether now
owned or existing or hereafter acquired or arising, that is now or
at any time used or intended to be subject to the Liens created in
the Security Instruments or otherwise as security for the payment or
performance of all or any portion of the Obligations, including,
without limitation, products and proceeds existing in connection
with any of the foregoing.
"Commitment" shall mean the obligation of the Lender,
subject to applicable provisions of this Agreement, to make Advances
to or for the benefit of the Borrowers pursuant to Section 2.1 and
to issue Letters of Credit pursuant to Section 2.2.
"Commitment Amount" shall mean the amount of $30,000,000.
"Commitment Fee" shall mean each fee payable to the Lender
by the Borrowers pursuant to Section 2.10.
"Commitment Period" shall mean the period from and
including the Closing Date to but not including the Drawdown
Termination Date.
"Commonly Controlled Entity" shall mean any Person which
is under common control with either Borrower within the meaning of
Section 4001 of ERISA.
"Compliance Certificate" shall mean each certificate,
substantially in the form attached hereto as Exhibit II, executed by
a Responsible Officer of each Borrower and furnished to the Lender
from time to time in accordance with this Agreement.
"Contingent Obligation" shall mean, as to any Person (the
"Guarantor"), any obligation of such Guarantor guaranteeing or in
effect guaranteeing any Indebtedness, leases, dividends or other
obligations of any other Person (the "Primary Obligor") (for
purposes of this definition, a "primary obligation") in any manner,
whether directly or indirectly, including, without limitation, any
obligation of such Guarantor, regardless of whether such obligation
is contingent, (a) to purchase any primary obligation or any
Property constituting direct or indirect security therefor, (b) to
advance or supply funds (i) for the purchase or payment of any
primary obligation, or (ii) to maintain working capital or equity
capital of the Primary Obligor in respect of any primary obligation,
or otherwise to maintain the net worth or solvency of any other
Person, (c) to purchase Property, securities or services primarily
for the purpose of assuring the owner of any primary obligation of
the ability of the Person primarily liable for such primary
obligation to make payment thereof, or (d) otherwise to assure or
hold harmless the owner of any such primary obligation against loss
in respect thereof, with the amount of any Contingent Obligation
being deemed to be equal to the stated or determinable amount of the
primary obligation in respect of which such Contingent Obligation is
made or, if not stated or determinable, the maximum reasonably
anticipated liability in respect thereof as determined by such
Guarantor in good faith.
"Default" shall mean any event or occurrence which with
the lapse of time or the giving of notice or both would become an
Event of Default.
"Default Rate" shall mean a per annum variable interest
rate equal to the Base Rate plus five percent (5%), calculated on
the basis of a year of 360 days and actual number of days elapsed
(including the first day but excluding the last day), but in no
event exceeding the Highest Lawful Rate.
"Drawdown Termination Date" shall mean July 1, 1998.
"Engineering Fee" shall mean each fee payable to the
Lender by the Borrowers pursuant to Section 2.12.
"Environmental Complaint" shall mean any written or oral
complaint, order, directive, claim, citation, notice of
environmental report or investigation or other notice by any
Governmental Authority or any other Person with respect to (a) air
emissions, (b) spills, releases or discharges to soils or any
improvements located thereon, surface water, groundwater or the
sewer, septic system or waste treatment, storage or disposal systems
servicing any Property of either Borrower, (c) solid or liquid waste
disposal, (d) either the use, generation, storage, transportation or
disposal of any Hazardous Substance, or (e) other environmental,
health or safety matters affecting any Property of either Borrower
or the business conducted thereon.
"Environmental Laws" shall mean (a) the following federal
laws as they may be cited, referenced and amended from time to time:
the Clean Air Act, the Clean Water Act, the Safe Drinking Water Act,
the Water Pollution Control Act, the Environmental Pesticides Act,
the Comprehensive Environmental Response, Compensation and Liability
Act, the Endangered Species Act, the Resource Conservation and
Recovery Act, the Occupational Safety and Health Act, the Hazardous
Materials Transportation Act, the Superfund Amendments and
Reauthorization Act, and the Toxic Substances Control Act; (b) any
and all equivalent environmental statutes of any state in which
Property of either Borrower is situated, as they may be cited,
referenced and amended from time to time; (c) any so-called federal,
state or local "Superfund" or "Superlien" statute, (d) any rules or
regulations promulgated under or adopted pursuant to the above
federal and state laws; and (e) any other equivalent federal, state
or local statute or any requirement, rule, regulation, code,
ordinance or order adopted pursuant thereto, including, without
limitation, those relating to the generation, transportation, treat-
ment, storage, recycling, disposal, handling or release of Hazardous
Substances.
"ERISA" shall mean the Employee Retirement
Income Security Act of 1974, as amended from time to time, and the
regulations thereunder and interpretations thereof.
"Event of Default" shall mean any of the events specified
in Section 7.1.
"Existing Security Instruments" shall mean the Security
Instruments, as such term is defined in the Prior Agreement, as such
instruments have been or may be amended, restated, or supplemented
from time to time.
"Facility Fee" shall mean each fee payable to the Lender
by the Borrowers pursuant to Section 2.11.
"Financial Statements" shall mean statements of the
financial condition of the Borrowers as at the point in time and for
the period indicated and consisting of at least a balance sheet and
related statements of operations, common stock and other
stockholders' equity for the Borrowers and, when required by
applicable provisions of this Agreement to be audited, accompanied
by the unqualified certification of a nationally-recognized firm of
independent certified public accountants or other independent
certified public accountants acceptable to the Lender and footnotes
to any of the foregoing, all of which shall be prepared in
accordance with GAAP and GAAS consistently applied and in
comparative form with respect to the corresponding period of the
preceding fiscal period.
"Floating Rate" shall mean an interest rate per annum
equal to the Base Rate from time to time in effect, plus one-fourth
of 59
[INVENTORY] 62
[CURRENT-ASSETS] 6,853
[PP&E] 83,816
[DEPRECIATION] 32,201
[TOTAL-ASSETS] 59,762
[CURRENT-LIABILITIES] 6,026
[BONDS] 13,674
[PREFERRED-MANDATORY] 0
[PREFERRED] 0
[COMMON] 476
[OTHER-SE] 29,867
[TOTAL-LIABILITY-AND-EQUITY] 59,762
[SALES] 16,800
[TOTAL-REVENUES] 18,539
[CGS] 7,354
[TOTAL-COSTS] 4,271
[OTHER-EXPENSES] 0
[LOSS-PROVISION] 0
[INTEREST-EXPENSE] 1,188
[INCOME-PRETAX] 2,772
[INCOME-TAX] 1,077
[INCOME-CONTINUING] 1,695
[DISCONTINUED] 0
[EXTRAORDINARY] 0
[CHANGES] 0
[NET-INCOME] 1,695
[EPS-PRIMARY] .36
[EPS-DILUTED] 0
[/TABLE]