AMENDMENT
OF CREDIT AGREEMENT
THIS
AMENDMENT OF CREDIT AGREEMENT (this "Amendment"), dated as of
December 31, 2008, is by and between BASIC EARTH SCIENCE SYSTEMS,
INC. ("BESSI"), and AMERICAN NATIONAL BANK, a national banking
association ("ANB"), f/k/a THE BANK OF CHERRY CREEK, N.A.
("BOCC").
RECITALS
A. BESSI
and BOCC entered into a letter agreement dated March 4, 2002, as
previously amended (as so amended, the "Credit Agreement"), setting
forth the terms upon which BOCC would make advances to BESSI and by
which such advances would be governed and
repaid. Capitalized terms used herein but not defined
herein shall have the same meanings as set forth in the Credit
Agreement.
B. ANB
is the successor in interest to the rights and obligations of BOCC
under the Credit Agreement and all related documents.
C. BESSI
and ANB desire that this Amendment be executed and delivered in
order to amend certain terms and provisions of the Credit
Agreement.
AMENDMENT
NOW,
THEREFORE, in consideration of $10.00 and other good and valuable
consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereby agree as follows:
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Credit
Agreement. The
Credit Agreement shall be, and hereby is, amended as follows as of
the date hereof:
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The
following shall be substituted for the section entitled
“Maturity Date” on page 2 of the Credit
Agreement:
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“December
31, 2010, on which date the Borrower agrees to repay the remaining
balance of the Loan in its entirety, including all outstanding
principal interest, fees, expenses, and other amounts due in
connection therewith”.
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The
following shall be substituted for the section entitled
“Revolving Period” on page 2 of the Credit
Agreement:
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“From
the date of this agreement through December 31,
2010. During the Revolving Period Borrower may borrow,
repay, and re-borrow funds. At no time, however, may the
aggregate outstanding principal balance of all Advances exceed the
Commitment Amount”.
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The
following shall be substituted for the section entitled
“Interest Rate” on page 2 of the Credit
Agreement:
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“Interest
on the outstanding principal balance of the Line of Credit shall
accrue at an annual rate equal to the greater of (a) the
fluctuating Prime Rate (as defined in the Note) plus ¼%, or
(b) 6.5% per annum. After the occurrence of an Event of Default,
interest on the Line of Credit shall accrue at a rate equal to the
Prime Rate at the time of default plus five percentage points per
annum. Borrower shall p
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