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FORBEARANCE AGREEMENT
THIS FORBEARANCE AGREEMENT ("Forbearance Agreement"), effective
as
of January 21, 2005 (the "Forbearance Date"), is made by and
among OMNI ENERGY
SERVICES CORP., AMERICAN HELICOPTERS INC., OMNI ENERGY SERVICES
CORP.-MEXICO,
TRUSSCO, INC., AND TRUSSCO PROPERTIES, LLC (collectively,
"Maker" and each,
individually, a "Maker"), and BEAL BANK, S.S.B., a savings bank
organized under
the laws of the State of Texas ("Payee"), and is based on the
following recitals
of fact.
R E C I T A L S:
A. The Maker is indebted to the Payee under a Promissory Note
dated as of
October 22, 2004 (the "Note"; capitalized terms used in this
Forbearance
Agreement but not defined herein shall have the same sense and
meaning as in the
Note), among the Maker and the Payee. As of the Forbearance
Date, the
outstanding principal balance of the Note is Six Million, Five
Hundred Thousand
Dollars ($6,500,000.00) (the "Balance"). Unpaid interest
continues to accrue
according to the terms of the Note, currently at the Default
Rate. Additionally,
the Maker is obligated for other fees, costs, and expenses in
accordance with
and as may be provided for in the Loan Documents.
B. As of the date of this Forbearance Agreement, an Event of
Default
exists under paragraph 7(a) of the Note as a result of the
Maker's failure to
repay the Obligations owing to the Payee under the Note on the
Final Maturity
Date (the "Existing Default").
C. The Maker has requested that the Payee temporarily forbear
from
exercising its available rights and remedies arising as a result
of the Existing
Default and the Payee is willing to forebear from exercising
such rights and
remedies conditioned upon and subject to the terms and
conditions set forth in
this Forbearance Agreement.
A G R E E M E N T:
For and in consideration of the mutual covenants herein, and
other good
and valuable consideration, the receipt and sufficiency of which
are hereby
acknowledged, the Maker and the Payee agrees as follows:
1. Recitals. The foregoing recitals are confirmed by the parties
as true,
accurate, and correct and are incorporated herein by reference.
The recitals are
a substantive, contractual part of this Forbearance
Agreement.
FORBEARANCE AGREEMENT - Page 1
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2. Extension of Maturity, Forbearance and Limitations
Thereof.
(a) Subject to the terms and provisions of this Forbearance
Agreement (including without limitation, paragraph 6 and
paragraph 7
hereof), the Payee hereby agrees to forbear from exercising any
of its
rights and remedies arising under the Loan Documents or
otherwise as a
result of the Existing Default (the "Forbearance") for the
period, and
only for the period, commencing on the Forbearance Date through
and
including February 28, 2005 (the "Expiration Date") or such
earlier date
on which Payee's agreement to forbear pursuant hereto terminates
(such
period being referred to hereinafter as the "Forbearance
Period").
(b) Paragraph 2(a) of this Forbearance Agreement shall be
limited
strictly as written and this Forbearance Agreement does not
constitute a
forbearance with respect to any Event of Default other than the
Existing
Default and does not constitute a waiver of the Existing Default
or any
other Event of Default. In the event that prior to the end of
the
Forbearance Period any further Event of Default occurs under the
Note
(i.e., other than the Existing Default) or if the Maker shall
breach any
provision of this Forbearance Agreement or any Loan Document,
then the
Payee shall have the right and option, in its sole discretion
and without
notice to the Maker, to terminate its agreement to forbear
pursuant to
this Forbearance Agreement and to exercise any and all of its
rights and
remedies under the Loan Documents or otherwise arising as a
result of such
Event of Default or the Existing Default.
(c) Notwithstanding anything contained herein to the contrary,
and
as an additional material inducement to the Payee to enter into
this
Forbearance Agreement, the Maker hereby agrees that, except as
expressly
set forth herein with respect to the Forbearance during the
Forbearance
Period, this Forbearance Agreement shall have no effect on, and
shall not
act as a waiver of, any Event of Default (including, without
limitation,
the Existing Default), or any rights or remedies resulting
therefrom,
whether now existing or hereafter arising, under the terms and
provisions
of the Loan Documents or otherwise whether known or unknown by
the Payee.
The Payee expressly reserves the right to, and may, at its
option, declare
any other Event of Default, except as expressly set forth
herein.
3. Liens. By this Forbearance Agreement, all liens, security
interests,
assignments, superior titles, rights, remedies, powers,
equities, and priorities
securing the Obligations (collectively, the "Outstanding Liens")
are hereby
ratified and confirmed as valid, subsisting, and continuing to
secure the
Obligations as amended to date, and this Forbearance Agreement
shall not affect
the priority of any Outstanding Lien. Nothing in this
Forbearance Agreement
shall in any manner diminish, impair, or extinguish any of the
Outstanding Liens
or the Loan Documents or be construed as a novation in any
respect. In addition,
the Maker acknowledges and agrees that this Forbearance
Agreement constitutes a
Loan Document and that the obligations of the Maker hereunder
(including,
without limitation, the obligation of Maker to repurchase the
Stock, as
hereinafter defined, as provided in paragraph 7 (d) below)
constitute
Obligations secured by the Outstanding Liens.
FORBEARANCE AGREEMENT - Page 2
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4. Amounts Due. The Payee and the Maker acknowledge that, prior
to giving
effect to any payment or payments specified in this Forbearance
Agreement, the
aggregate outstanding unpaid principal balance of the Note is
equal to the
Balance, and accrued and unpaid interest on the Note is equal to
$198,972.04as
of the Forbearance Date.
5. Waivers of Makers. Each Maker waives any and all rights to
other notice
of payment default or any other default, protest and notice of
protest,
dishonor, diligence in collecting and the bringing of suit or
arbitration
proceedings against any party, notice of intention to
accelerate, notice of
acceleration, demand for payment, and any other notices
whatsoever regarding the
Obligations or any of the Loan Documents, and further waives any
claims that any
notices previously given are or were insufficient for any
reason.
6. Conditions Precedent. The following are conditions precedent
to the
effectiveness of this Forbearance Agreement:
(a) Delivery. Before this Forbearance Agreement becomes
effective
and any party becomes obligated under it, the Payee shall have
received
fully executed originals of this Forbearance Agreement.
(b) Reimbursement of the Payee's Costs and Expenses; Receipt
of
Payments. The Payee shall have received reimbursement, in
immediately
available funds, of all unpaid fees, expenses and costs due from
the Maker
to the Payee, and all costs and expenses incurred by the Payee
in
connection with this Forbearance Agreement, including but not
limited to
charges for preparing, recording, and/or filing amendments to
financing
statements, appraisal, and legal fees and expenses of the
Payee's counsel
("Reimbursable Costs") to the extent incurred by the Payee and
submitted
to the Maker for reimbursement. The amount of Reimbursable Costs
to be
paid by Maker in order for this Forbearance Agreement to become
effective
is $22,000.00. All other Reimbursable Costs incurred by Payee
shall be
paid by Maker as provided below and in the Loan Documents.
(c) Payment of Interest and Principal. The Payee shall
receive
payment of an amount equal to all accrued and unpaid interest on
the Note
as of the Forbearance Date (being $198,972.04) plus Two Hundred
Fifty
Thousand Dollars ($250,000.00) of principal of the Note.
(d) Additional Information. The Payee shall have received
such
additional agreements, certificates, documents, instruments,
and
information as the Payee or its legal counsel may request to
effect the
Forbearance contemplated hereby.
(e) All payments to be made by Maker to Payee as provided in
the
Note, this Forbearance Agreement or any other Loan Document will
be paid
to Payee in accordance with Payee's wire transfer instructions
attached
hereto as Exhibit "A".
FORBEARANCE AGREEMENT - Page 3
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7. Continuing Conditions. Payee's agreement to forbear pursuant
to this
Forbearance Agreement is conditioned upon the Maker's compliance
with each of
the following conditions. The Maker acknowledges and agrees that
the Maker's
failure to fully comply with any of the following conditions
shall constitute a
breach of the terms of this Forbearance Agreement which shall
result in the
termination of the Payee's agreement to forbear.
(a) Obligation to Remain Current. The Maker shall remain current
in
the payment of all interest and other fees and expenses as
provided by the
Note, any other Loan Document and this Forbearance
Agreement.
(b) Applicable Interest Rates. Interest on the outstanding
principal
of the Obligations shall be calculated at a per annum rate equal
to the
lesser of (x) the Highest Lawful Rate or (y) the Default
Rate.
(c) Payments. In addition to the payments required by paragraphs
6
(b) and (c) above, on January 28, 2005, Maker shall pay to Payee
an
additional Two Hundred Fifty Thousand Dollars ($250,000.00),
with such
payment being applied first to accrued and unpaid interest on
the Note and
additional Reimbursable Costs, and with the balance of such
payment being
applied to the unpaid principal balance of the Note. The
remaining
principal due on the Note and all other amounts due to Payee
pursuant to
the Loan Documents are due and payable on the last day of the
Forbearance
Period.
(d) Payment in Stock; Obligation to Purchase. Subject to
satisfaction of the conditions set forth below, the Maker's
obligation to
pay all of the amounts required to be paid as provided in
paragraphs 6 (b)
and (c) and the Two Hundred Fifty Thousand Dollars ($250,000.00)
payment
required to be made on January 28, 2005 as provided above (but
not the
principal balance of the Note, and interest thereon, due and
payable on
the last day of the Forbearance Period) may be satisfied by the
delivery
to the Payee, on the date the payment in question is due, of
fully
registered, publicly traded, unrestricted common stock ("Stock")
of OMNI
Energy Services Corp., or, if Maker is unable to deliver such
Stock as
fully registered, unrestricted shares, by delivery to the Payee
of
privately issued restricted shares of Stock, in each case,
registered in
the name of Payee or its nominee, valued at the lesser of (i)
the closing
price of the Stock on the NASDAQ Stock Market on the last day
the Stock
was trading on such market prior to the due date of such payment
or (ii)
the opening price of the Stock on such market on the date such
payment is
due, in each case rounded up to the next highest whole number of
shares of
Stock. If the shares of Stock are privately issued, restricted
shares,
Maker shall cause OMNI Energy Services Corp. to prepare and file
a
registration statement on Form S-3, or other appropriate form,
to register
the resale of such Stock, and to use its best efforts to cause
such
registration statement to be declared effective on or before the
last day
of the Forbearance Period. The issuer shall cause the
registration
statement to continue in effect until such time that the Payee
(and/or its
nominee and/or successor or assign) has disposed of all the
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