REVOLVING CREDIT AGREEMENT
BY AND BETWEEN
PLATINA ENERGY GROUP, INC.,
as Borrower
AND
XXXXX XXXXXXX,
as Lender
Dated as of December 12, 2005
TABLE OF CONTENTS
ARTICLE 1 - CERTAIN DEFINITIONS---------------------1
Section 1.1 Certain Definitions-----------------1
Section 1.2 Construction------------------------2
ARTICLE 2 - LOANS, NOTES AND PREPAYMENTS------------3
Section 2.1 Loans-------------------------------3
Section 2.2 Notes-------------------------------3
Section 2.3 Procedure for Borrowing-------------3
Section 2.4 Repayment of Loans------------------3
Section 2.5 Optional Prepayments----------------4
Section 2.6 Indemnity---------------------------4
Section 2.7 Computations------------------------4
Section 2.8 Repayment of the Loans--------------4
ARTICLE 3 - EVENTS OF DEFAULT-----------------------4
Section 3.1 Events of Default-------------------4
Section 3.2 Remedies----------------------------4
ARTICLE 4 - MISCELLANEOUS---------------------------4
Section 4.1 Amendments, etc.--------------------4
Section 4.2 Notices, etc.-----------------------5
Section 4.3 No Waiver; Remedies-----------------5
Section 4.4 Binding Effect----------------------5
Section 4.5 Governing Law-----------------------5
Section 4.6 Usury Laws--------------------------5
Section 4.7 Section Headings--------------------5
Section 4.8 Execution---------------------------5
Signatures------------------------------------------6
EXHIBITS
Exhibit A - Form of Request for Borrowing-----------7
REVOLVING CREDIT AGREEMENT
THIS REVOLVING CREDIT AGREEMENT ("Agreement") is made as of December
12, 2005 by and between Platina Energy Group, Inc., a Delaware limited
liability company ("Borrower"), and Xxxxx Xxxxxxx ("Lender").
EXPLANATORY STATEMENT
A. The Borrower is a wholly-owned subsidiary of the Lender.
B. The Borrower has requested, and the Lender has agreed to
make, certain Loans, advances and other financial accommodations
to the Borrower on the terms and conditions set forth herein;
NOW, THEREFORE, in consideration of the promises set forth herein and
for other good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, the parties hereto agree as follows:
ARTICLE 1
CERTAIN DEFINITIONS
Section 1.1 Certain Definitions. In addition to words and terms defined
elsewhere in this Agreement, the following words and terms shall have the
following meanings, respectively, unless the context clearly requires
otherwise:
"Agreement" shall mean this Revolving Credit Agreement, as the same may be
amended, restated, supplemented or otherwise modified from time to time
hereafter, including all Schedules and Exhibits hereto.
"Authorized Officer" shall mean either Xxxxx Xxxxxxx.
"Borrower's Account" shall mean the Borrower's bank account as may be
designated by the Borrower from time to time by written notice to the
Lender.
"Business Day" shall mean any day other than a Saturday or Sunday or other
day upon which banks or the Lender are authorized or required to close in
the State of Wyoming.
"Dollar," "Dollars," "U.S. Dollars" and the symbol "$" shall mean the lawful
currency of the United States of America.
"Event of Default" shall mean any of the Events of Default described in
Section 3.1.
"Funding Date" shall mean the date on which a Loan is made hereunder.
"Insolvency Event" shall mean, with respect to any Person, (i) such Person
generally shall not pay its debts as such debts become due, or shall admit
in writing its inability to pay its debts generally, or shall make a general
assignment for the benefit of creditors; or any proceeding shall be
instituted by or against such Person seeking to adjudicate it a bankrupt or
insolvent, or seeking liquidation, winding up, reorganization, arrangement,
adjustment, protection, relief, or composition of it or its debts under any
Law related to bankruptcy, insolvency or reorganization or relief of
debtors, or seeking the entry of an order for relief or the appointment of a
receiver, trustee, or other similar official for it or for any substantial
part of its property provided; however, any proceeding instituted against
such Person shall not constitute an Insolvency Event if such proceeding has
been dismissed within 60 days of the institution of such proceeding against
such Person; or (ii) such Person shall take any action to authorize any of
the actions set forth in clause (i) herein.
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"Interest Rate" shall have the meaning provided in Section 2.4(b).
"Law" shall mean any law (including common law), constitution, statute,
treaty, regulation, rule, ordinance, opinion, release, ruling, order,
injunction, writ, decree or award of any Governmental Authority.
"Loan" shall have the meaning provided in Section 2.1
"Loan Documents" shall mean this Agreement, the Revolving Loan Note and any
other instruments, certificates or documents delivered or contemplated to be
delivered hereunder or thereunder or in connection herewith or therewith, as
the same may be supplemented or amended from time to time hereafter in
accordance herewith or therewith, and "Loan Document" shall mean any of the
Loan Documents.
"Person" shall mean any individual, corporation, partnership, limited
liability company, joint-stock company, trust, unincorporated organization or
association, joint venture, government or political subdivision or agency
thereof, or any other entity.
"Post-Default Rate" shall mean, in respect of any principal of any Loan or any
other amount under this Agreement, the Revolving Loan Note or any other Loan
Document that is not paid when due to the Lender (whether at stated maturity,
by acceleration, by optional or mandatory prepayment or otherwise), a rate
per annum during the period from and including the due date to but excluding
the date on which such amount is paid in full equal to the lesser of 15% or
the maximum amount permitted by applicable Law.
"Request for Borrowing" has the meaning assigned to such term
in Section 2.3(a).
"Revolving Loan Note" means the promissory note of the Borrower, payable to
the order of the Lender, in substantially the form of Exhibit B hereto,
evidencing the aggregate indebtedness of the Borrower to the Lender resulting
from Loans made by the Lender.
"Term of this Agreement" means from the date hereof and for a period of twenty
(20) years thereafter unless sooner terminated by the Lender.
"Total Loan Amount" shall mean up to $100,000, as such amount may be reduced
from time to time in accordance with this Agreement.
Section 1.2 Construction. Unless the context of this Agreement otherwise
clearly requires, references to the plural shall include the singular,
references to the singular shall include the plural, references to the part
shall include the whole and references to any masculine, feminine or neuter
pronoun shall include all other genders. References in this Agreement to
"determination" of or by the Lender shall be deemed to include good faith
estimates by the Lender (in the case of quantitative determinations) and good
faith beliefs by the Lender (in the case of qualitative determinations). The
words "hereof," "herein," "hereunder" and similar terms in this Agreement
refer to this Agreement as a whole and not to any particular provision of
this Agreement. Any references herein to Articles, Sections, Exhibits or
Schedules are references to Articles, Sections, Exhibits and Schedules of or
to this Agreement unless otherwise expressly specified. The Section and other
headings contained in this Agreement and the Table of Contents preceding this
Agreement are for reference purposes only and shall not control or affect the
construction of this Agreement or the interpretation thereof in any respect.
PAGE 2
ARTICLE 2
LOANS, NOTES AND PREPAYMENTS
Section 2.1 Loans.
(a) The Lender agrees, on the terms and conditions of this Agreement,
to make Loans (individually, a "Loan"; collectively, the "Loans") to the
Borrower in Dollars, on any Business Day during the Term of this Agreement
in an aggregate principal amount at any one time outstanding up to but not
exceeding the Total Loan Amount. This Agreement shall not obligate the
Lender to make any specific Loans to the Borrower, but if Loans are made
up to the Total Loan Amount, such Loans will be pursuant to the terms and
conditions of this Agreement and the Revolving Loan Note. Subject to the
terms and conditions of this Agreement, during such period the Borrower may
borrow, repay and re-borrow hereunder.
(b) In no event shall a Loan be made when any Event of Default has occurred
and is continuing or would exist after the making of such Loan on such
Funding Date.
Section 2.2 Notes.
(a) The Loans made by the Lender shall be collectively evidenced by the
Revolving Loan Note, dated the date hereof, payable to the Lender in a
principal amount equal to the amount of the Total Loan Amount then outstanding
plus accrued interest.
(b) The date and amount of each Loan made by the Lender to the Borrower,
and each payment made on account of the principal thereof, shall be recorded
by the Lender on its books and, prior to any transfer of the Revolving Loan
Note, endorsed by the Lender on the schedule attached to the Revolving Loan
Note or any continuation thereof; provided that the failure of the Lender to
make any such recordation or endorsement shall not affect the obligations of
the Borrower to make a payment when due of any amount owing hereunder or under
the Revolving Loan Note in respect of the Loans.
Section 2.3 Procedure for Borrowing.
(a) The Borrower may request a borrowing hereunder, on any Business Day
during the Term of this Agreement by delivering to the Lender a written
Request for Borrowing, substantially in the form of Exhibit A hereto signed
by an Authorized Officer.
(b) If the Lender agrees to fund the Request for Borrowing, the amount of
the requested borrowing shall be advanced in immediately available funds,
without deduction, set-off or counterclaim, to the Borrower's Account, not
later than ten days after receipt of the Request for Borrowing.
Section 2.4 Repayment of Loans.
(a) The total outstanding principal balance of each outstanding Loan
shall be immediately due and payable on demand by the Lender.
(b) Each Loan shall bear interest at a rate per annum equal to six
percent (6%).
(c) Notwithstanding the foregoing, the Borrower hereby promises to pay
to the Lender interest at the applicable Post-Default Rate on any principal of
any Loan and on any other amount payable by the Borrower hereunder or under
the Revolving Loan Note that shall not be paid in full when due (whether at
stated maturity, by acceleration or by mandatory prepayment or otherwise), for
the period from and including the due date thereof to but excluding the date
the same is paid in full (both before and after judgment). Any payment due
and owing at the Post-Default Rate shall be payable on demand by the Lender.
PAGE 3
Section 2.5 Optional Prepayments.
(a) The Loans are pre-payable at any time without premium or penalty,
in whole or in part. Any amounts prepaid shall be applied first to the
payment of interest then to the payment of outstanding principal until paid
in full. Amounts prepaid may be re-borrowed in accordance with the terms of
this Agreement.
Section 2.6 Indemnity. Upon demand by the Lender, the Borrower agrees to
indemnify the Lender and to hold the Lender harmless from any net loss or
expense (not to include any lost profit or opportunity) which the Lender may
sustain or incur as a consequence of default by the Borrower in making any
payments due under this Agreement.
Section 2.7 Computations. Interest on the Loans shall be computed on the
basis of a 365-day year and the actual number of days elapsed in any Interest
Period.
Section 2.8 Repayment of the Loans. All payments shall be applied first,
to the payment of interest, if any, which is due and payable with respect to
the Loans; second, to the payment of all fees, expenses and indemnities due
and payable hereunder; and then to the repayment of the aggregate unpaid
principal amount of the Loans which is due and payable.
ARTICLE 3
EVENTS OF DEFAULT
Section 3.1 Events of Default. Each of the following events shall
constitute an "Event of Default" hereunder:
The Borrower shall be the subject of an Insolvency Event; or
(a) The Borrower shall fail to perform or observe any material term,
covenant or agreement contained in this Agreement or any other agreement or
document executed in connection herewith or therewith on its part to be
performed or observed and any such failure shall remain unremedied for 20
Business Days, after written notice thereof shall have been given by the
Lender to the Borrower; or
(b) There shall have been any material adverse change in the financial
condition or operations of the Borrower and such material adverse change
remains unremedied for 14 days thereafter; or
(c) The Borrower shall fail to pay any principal of or interest on the
indebtedness evidenced by the Revolving Loan Note when the same becomes
due and payable.
Section 3.2 Remedies.
Upon the occurrence of one or more Events of Default in Section 3.1, the
Lender may immediately declare the principal amount of the Loans then
outstanding under the Revolving Loan Note to be immediately due and
payable, together with all interest thereon and fees and expenses accruing
under this Agreement.
ARTICLE 4
MISCELLANEOUS
Section 4.1 Amendments, etc. No amendment or waiver of any provision of
this Agreement or the Revolving Loan Note, nor consent to any departure by the
Borrower therefrom, shall in any event be effective unless the same shall be
in writing and signed by the Lender, and then such waiver or consent shall be
effective only in the specific instance and for the specific purpose for which
given.
PAGE 4
Section 4.2 Notices, etc. All notices and other communications provided for
hereunder shall be in writing (including telegraphic, facsimile or cable
communication) and mailed, telegraphed, faxed, cabled or delivered, if to the
Borrower, at its address at 000 X. 00xx Xxxxxx, Xxxxx 000, Xxxxxxxx, Xxxxxxx
00000, Attention: Xxxxx Xxxxxxx, President, and if to the Lender, at his
address at 000 X. 00xx Xxxxxx, Xxxxx 000, Xxxxxxxx, Xxxxxxx 00000, or, as to
each party, at such other address as shall be designated by such party in a
written notice to the other party. All such notices and communications shall
be effective, upon receipt, or in the case of (i) notice by mail, upon return
of the completed delivery receipt when sent via United States certified mail,
(ii) notice by overnight courier, one Business Day after being deposited with
a national overnight courier service, or (iii) notice by facsimile, when faxed
against receipt of answer back, except that notices and communications to the
Lender pursuant to Article 2 shall not be effective until received by the
Lender.
Section 4.3 No Waiver; Remedies. No failure on the part of the Lender to
exercise, and no delay in exercising, any right hereunder or under the
Revolving Loan Note shall operate as a waiver thereof; nor shall any single or
partial exercise of any such right preclude any other or further exercise
thereof or the exercise of any other right. The remedies herein provided are
cumulative and not exclusive of any remedies provided by Law.
Section 4.4 Binding Effect. This Agreement shall be binding upon and inure
to the benefit of the Borrower and the Lender and their respective successors
and assigns.
Section 4.5 Governing Law. This Agreement shall be governed by and construed
in accordance with the Laws of the State of Wyoming.
Section 4.6 Usury Laws. It is not intended hereby to charge interest at a
rate in excess of the maximum rate of interest permitted to be charged to
Borrower under applicable Law, but if, notwithstanding such intention,
interest in excess of the maximum rate shall be paid under this Agreement or
the Revolving Loan Note, the excess shall be applied to principal and the
Interest Rate on the Revolving Loan Note shall be adjusted to the maximum
permitted under applicable Law during the period or periods that the Interest
Rate otherwise provided herein would exceed such rate.
Section 4.7 Section Headings. All section headings are inserted for
convenience of reference only and shall not affect any construction or
interpretation of this Agreement.
Section 4.8 Execution. This Agreement may be executed, manually or by
facsimile signature, in any number of counterparts and by different parties
hereto in separate counterparts, each of which when so executed shall be
deemed to be an original and all of which taken together shall constitute
one and the same agreement.
[Remainder of Page Intentionally Blank; Signature Page Follows]
PAGE 5
IN WITNESS WHEREOF, the parties hereto have caused this Revolving Credit
Agreement to be executed by their respective officer hereunto duly authorized,
as of the date first above written.
PLATINA ENERGY GROUP, INC.,
a Delaware corporation,
as Borrower
By:
/ S/ Xxxxxx Xxxxxxxx
Xxxxxx Xxxxxxxx, Secretary
XXXXX XXXXXXX,
as Lender
/ s/ Xxxxx Xxxxxxx
PAGE 6
EXHIBIT A - TO REVOLVING CREDIT AGREEMENT
FORM OF REQUEST FOR BORROWING
Xxxxx Xxxxxxx
000 X. 00xx Xxxxxx, Xxxxx 000
Xxxxxxxx, Xxxxxxx 00000
Ladies and Gentlemen:
The undersigned, PLATINA ENERGY GROUP, INC. (the "Company"), refers to
the Revolving Credit Agreement dated as of December 12, 2005 (as amended,
restated, supplemented or otherwise modified from time to time, the "Loan
Agreement"; the terms defined therein being used herein as therein defined)
among the Company and XXXXX XXXXXXX, as Lender, and hereby gives you notice
pursuant to Section 2.3(a) of the Loan Agreement that the Company requests
a Loan under Section 2.1 of $_______________.
Dated: ________________________, _________
PLATINA ENERGY GROUP, INC.,
a Delaware corporation
By:
Name:
Title:
PAGE 7
