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MODIFICATION AGREEMENT

Addendum or Modifications

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Natural Gas Services Group, Inc. | Western National Bank | Deborah K. Tullos

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Title: MODIFICATION AGREEMENT
Date: 5/13/2005
Industry: OILSRV     Sector: ENERGY

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Exhibit 10

 

 

Exhibit 10.8

 

                                                         $1,415,836.00 Term Note

                                                           dated January 3, 2005

 

 

                             MODIFICATION AGREEMENT

 

This Modification Agreement ("Modification Agreement") is effective as of May 1,

2005. The parties to the Modification  Agreement are Screw Compression  Systems,

Inc. ("Borrower") and Western National Bank ("Lender").

 

                                    RECITALS

 

On January 3, 2005,  Borrower executed and delivered to Lender that certain Term

Promissory Note in the original principal sum of $1,415,836.00, bearing interest

at the rate stated therein, with a stated final maturity date of January 1, 2010

(the "Note"), pursuant to that certain Third Amended and Restated Loan Agreement

dated January 3, 2005 (the "Prior Loan  Agreement"),  as amended and restated in

that certain  Fourth  Amended and Restated Loan  Agreement  dated March 15, 2005

(the "Loan Agreement").  All liens,  security interests and assignments securing

the Note are collectively  called the "Liens".  Terms defined in the Note or the

Loan  Agreement  and not otherwise  defined  herein shall have the same meanings

here as in those documents.

 

At  Borrower's  request,  Borrower  and  Lender  have  agreed to enter into this

Modification  Agreement  to modify the  interest  provisions  of the Note and to

ratify the Liens. Said modified interest provisions shall be effective as of May

1, 2005.

 

                                    AGREEMENT

 

1.  Modification  of Interest  Provisions  of the Note. In lieu of the following

provisions which were contained in the first paragraph of the Note:

 

                  "...at a rate per annum  which  shall from day to day be equal

         to the lesser of (a) a rate per annum (the "Established Rate") equal to

         the greater of (i) one percent  (1%) over the Prime Rate in effect from

         day to day, or (ii) six percent (6.0%), or (b) the Highest Lawful Rate,

         in each  case  calculated  on the  basis of actual  days  elapsed,  but

         computed as if each calendar year consisted of 360 days."

 

such provisions of the Note are changed to read in their entirety as follows:

 

                  "...at a rate per annum  which  shall from day to day be equal

         to the lesser of (a) a rate per annum (the "Established Rate") equal to

         the  greater  of (i)  one-half  percent  (0.5%)  over the Prime Rate in

         effect from day to day, or (ii) six percent (6.0%),  or (b) the Highest

         Lawful  Rate,  in each case  calculated  on the  basis of  actual  days

         elapsed, but computed as if each calendar year consisted of 360 days."

 

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