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EXHIBIT 10(a)
[NORWEST BANKS LETTERHEAD]
August 30, 1996
Xx. Xxxxxxx X. Xxxxx, Vice President
Corporate Development/Natural Gas Marketing
Columbus Energy Corp.
Suite 2400 Lincoln Center Building
Denver, CO 80246
RE: Seventh Amendment to the Amended and Restated Credit Agreement
Between Columbus Energy Corp. and Norwest Bank Colorado N.A., Denver
dated July 1, 1992 ("Agreement")
Dear Xxxx:
I am pleased to advise that Norwest Bank has approved the proposed amendments
to the credit agreement requested in your letter of August 23, 1996. We are
contacting Xxxxx Xxxxxx and requesting him to proceed with the Seventh
Amendment to the Amended and Restated Agreement, To wit:
(1) Revolving Period, Section 1.1, Page 8 - the termination of the Revolving
Period will be extended from 7/1/97 to 7/1/99.
(2) Maturity Date, Section 1.1, Page 7 - The maturity of the term loan will
now be 7/1/2003.
(3) LIBOR Interest Rate, Paragraph 4, Page 1 of the Note will be changed to
reflect LIBOR plus 150 basis points.
(4) The Agreement will be changed to reflect only one formal Borrowing Base
review date annually. The date will be April 1st and the calculation will
be based on an outside engineering report effective November 1st of the
prior year. Borrower or Bank shall have the right to request on
additional redetermination annually. The Bank has already begun its
semiannually determination for October 1st of this year and wishes to
complete that under the provisions of the existing agreement. Borrower
will continue to supply the Bank with all of the reporting information
required in the existing agreement and Bank will perform and informal
review semiannually.
Sincerely,
/s/ X. X. XXXXXX
X. X. Xxxxxx
Vice President
Energy and Minerals
