EXHIBIT 10.30
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September 22, 2005
Xx. X. Xxxxx Xxxxxxx President and COO
Prospect Energy Corporation
00 Xxxx 00xx Xxxxxx, 00xx Xxxxx
Xxx Xxxx, XX 00000
RE: Letter Amendment #1
Dear Xx. Xxxxxxx,
Reference is made to that certain loan agreement (the "Loan Agreement"),
dated as of February 2, 2005, by and between Natural Gas Systems, Inc., a Nevada
corporation ("Borrower") and Prospect Energy Corporation, a Maryland corporation
("Lender"). Unless otherwise specified herein, all defined terms in the Loan
Agreement shall have the same meanings specified therein.
For receipt of good and valuable consideration, which is hereby
acknowledged and received by Lender on the date hereof, Borrower and Lender
agree to amend Section 5.15 (b) of the Loan Agreement, so that the date
referenced as "the quarter ended September 30, 2005", is deleted and replaced
with "the quarter ended December 31, 2005". In addition, Borrower and Lender
agree to add a new Section 6.17 as follows:
"Section 6.17 Acquisitions. Until the date that the Borrower meets the
EBITDA to Interest Expense test set forth in Section 5.15(b), the Borrower
shall not use more than $100,000 of cash and cash equivalents of the
Borrower as of September 22, 2005, including but not limited to the
remaining proceeds of the May 2005 $3,000,000 equity offering, to acquire
any real property interest, including but not limited to the acquisition
of leases of land or mineral rights. This limitation does not include any
costs incurred to evaluate any potential acquisition."
Borrower and Lender agree that all other terms and conditions of the Loan
Agreement, the Collateral and the Collateral Documents shall remain in full
force and effect.
This Letter Amendment #1 is effective as of the date first written above,
as evidenced by the signatures of agreement below.
Sincerely,
Xxxxxx X. Xxxxxx
President
Agreed and accepted this __________________
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Prospect Energy, Inc. Natural Gas Systems, Inc.
By: X. Xxxxx Eliasek By:
Its: President and COO Its:
Natural Gas Systems, Inc. o Two Memorial City Plaza o 820 Xxxxxxx, Suite 1340
o Xxxxxxx, Xxxxx 00000
Tel: 000-000-0000 FAX: 000-000-0000
