Exhibit 10.8
Case No. FF-G-017A
CERTIFICATION AND INDEMNIFICATION
AGREEMENT
REGARDING ENVIRONMENTAL
MATTERS
THIS INDEMNITY
AGREEMENT is entered into this 7th day of March, 2007
, between Omega Protein, Inc., 2101 City West Blvd., Building 3,
Suite 500, Houston, Texas 77042 , (hereinafter, the
“Borrower”), Omega Protein Corporation, 2101 CityWest
Blvd., Building 3, Suite 500, Houston, Texas 77042, (hereinafter,
the “Guarantor”) and the United States of America,
acting by and through the Secretary of Commerce, National Oceanic
and Atmospheric Administration, National Marine Fisheries Service,
Office of Financial Services, Southeast Region, 263 13
th
Avenue
South, St. Petersburg, Florida 33701, (hereinafter, the
“Government”); and
RECITALS:
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1.
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The Borrower is
the owner of certain real property, (hereinafter, the
“Premises”), located in the State of Mississippi and
the State of Louisiana, which are more particularly described in
Exhibits A and B, attached hereto and incorporated herein by this
reference, and defined below.
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2.
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Pursuant to
that certain Approval Letter dated December 1, 2005, the
Government has agreed to lend $16,442,000.00 to the Borrower, in
separate tranches, (hereinafter, the “Loan”). Initially
the Government will lend to the Borrower $6, 349,000.00, in
consideration for which the Borrower has executed and delivered to
the Government a certain Promissory Note payable to the government
(hereinafter, the “Note”), which Note is secured by,
among other things, certain mortgages/deeds, respecting the
Properties (hereinafter, the “Mortgage”). These
mortgages are more particularly described in Exhibit 1, attached
hereto and incorporated herein by this reference.
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3.
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As a condition
to providing the Loan, the Government requires the Borrower and
Guarantor to provide certain indemnities concerning Hazardous
Materials or Contamination (both as hereinafter defined) affecting
the Premises.
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DEFINITIONS:
All terms contained herein are
defined in the Acknowledgement of Definitions executed by all
parties to this transaction.
IN CONSIDERATION OF the issuance of
certain Loans pursuant to the provisions of Title XI of the
Merchant Marine Act, 1936, as amended, found at 46 USC §1271
et seq., and 50 CFR 253, as amended by Public Law 104-297 on
October 11, 1996, known as the Fisheries Finance Program
(FFP), Borrower hereby represents, warrants, covenants,
acknowledges and agrees in favor of the Government, on a continuing
basis, as follows:
BORROWER’S REPRESENTATIONS AND
WARRANTIES:
The Borrower hereby represents and
warrants, to the best of its knowledge, in favor of the Government,
as follows:
1. The Premises, and its existing
and prior uses, comply, and have at all times complied with, and
neither the Borrower or any other individual or entity is in
violation of, nor has violated, in connection with the ownership,
use, maintenance or operation of the Premises or the conduct of the
business related thereto (including manufacturing, importing,
processing, using, distribution, discharging, storing, treating and
disposing of any substance) any applicable federal, state, county
or local statute, law, regulation, rule, ordinance, code, license
and permit of any and all governmental authorities relating to
environmental matters, including, but not limited to, the Clean Air
Act, the Federal Water Pollution Control Act of 1972, the
Comprehensive Environmental Response, Compensation and Liability
Act of 1980, the Solid Waste Disposal Act, the Resource
Conservation and Recovery Act and the Toxic Substances Control Act,
and any amendments or extensions of the foregoing statutes, and all
other applicable environmental requirements.
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2. The Borrower and/or any other
individual or entity have operated the Premises and have at all
times received, handled, used, stored, treated, shipped and
disposed of all hazardous materials, substances, petroleum products
and waste in strict compliance with all applicable environmental,
health or safety statutes, ordinances, orders, rules, regulations
or requirements, and have removed in compliance with all applicable
environmental requirements from and off the Premises all hazardous
materials, substances, petroleum products and waste.
3. There are no statutes, orders,
rules, regulations or agreements relating to environmental matters
requiring any work, repairs, feasibility studies, remedial
investigations, clean up costs, construction or capital
expenditures, or any other response costs with respect to the
Premises, nor have the Borrower or any other individual or entity
received any notice of any of the same.
4. No hazardous or toxic materials,
substances, pollutants, contaminants or wastes have been released,
spilled, leaked, poured, dumped, deposited, discharged or disposed
of into the air, land or water at, on or from the Premises, nor
have the Premises been used at any time by any person or entity as
a landfill or a waste disposal site.
5. No notices of any violation of
any of the matters referred to in the preceding sections, above,
relating to the Premises or its use have been received by the
Borrower and the Guarantor and/or any other individual or entity,
and there are no writs, injunctions, decrees, rulings, orders or
judgments outstanding, no law suits, claims, proceedings,
investigations, remedial investigations, feasibility studies, clean
up costs or other response costs pending or threatened, relating to
the ownership, use, maintenance or operations of the Premises, nor
is there any basis for such law suits, claims, proceedings or
investigations being instituted or filed.
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6. The Borrower and/or any other
individual or entity will operate the Premises and shall at all
times receive, handle, use, store, treat, ship and dispose of all
hazardous materials, substances, petroleum products and waste in
strict compliance with all applicable environmental, health or
safety statutes, ordinances, orders, rules, regulations or
requirements, and will remove in compliance with all applicable
environmental requirements from and off the Premises all hazardous
materials, substances, petroleum products and waste.
7. The Borrower further covenants
that it will promptly notify the Government of any fact or event
which affects, alters or limits the representations and warranties
made in the preceding sections, above, and that it will provide the
Government upon demand with information or access to information
relating to the Borrower’s compliance with this Agreement.
The Borrower further warrants that it has fully disclosed all
actions, law suits, notices, citations or any other incident or
condition that has ever existed on the Premises.
The foregoing representations and
warranties shall survive the execution of this Agreement and any
closing occurring under any of the Loan Documents (defined
hereafter) and shall be of continuing effect.
INDEMNITY:
To the maximum extent permitted by
law, the Borrower and the Guarantor hereby agree to defend and
indemnify the Government against and hold it harmless from any and
all losses, claims, liabilities, judgments, damages (including
exemplary, actual, compensatory and punitive), penalties,
expenditures, costs and legal or other expenses which the
Government may suffer or incur as a direct or indirect consequence
of any of the following:
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1.
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The execution
or performance of th
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