Exhibit 10.10.1
FIRST AMENDMENT TO AMENDED AND RESTATED
LOAN AND SECURITY AGREEMENT
THIS FIRST AMENDMENT TO AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT
(this "Amendment") is made and entered into this 1st day of May, 2000, to be
effective as of the respective date herein indicated, by and among RAM ENERGY,
INC., a Delaware corporation ("Borrower"), the financial institutions listed on
the signature pages hereof (such financial institutions being hereinafter
individually and collectively referred to as the "Lender"), and FOOTHILL CAPITAL
CORPORATION, a California corporation, as agent for the Lender ("Agent").
RECITALS
A. Borrower, Lender and Agent have entered into that certain Amended and
Restated Loan and Security Agreement, dated as of December 27, 1999 (as amended
from time to time, the "Loan Agreement").
B. Borrower and Lender desire to amend the Loan Agreement as hereinafter
set forth.
NOW, THEREFORE, in consideration of the premises herein contained and other
good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties, intending to be legally bound, agree as follows:
AGREEMENT
ARTICLE I
Definitions
1.01 Capitalized terms used in this Amendment are defined in the Loan
Agreement, as amended hereby, unless otherwise stated.
ARTICLE II
Amendments to Loan Agreement
Effective as of the date hereof, the Loan Agreement is hereby amended as
follows:
2.01 Amendment to Section 5.21(a) of the Loan Agreement. Section 5.21(a) of
the Loan Agreement is hereby amended by deleting the first two sentences of such
Section 5.21(a) and substituting the following two sentences in replacement
thereof:
"The primary accounting and business books, records and papers of
Borrower pertaining to the Collateral are kept and maintained solely at
Borrower's chief executive office set forth in the beginning of this
Agreement and at the office of one of Borrower's accounting firms, Xxxxxx &
Xxxx, at 000 Xxxxx Xxxxxxxx, Xxxxxxx, Xxxxxxxx 00000. In addition, the
Collateral, and the books, records and papers of Borrower pertaining
thereto, are kept and maintained solely at Borrower's chief executive
office set forth in the beginning of this Agreement and at those locations
which are listed on Schedule 5.1(a) attached hereto and at the Xxxxxx &
Xxxx office at 000 Xxxxx Xxxxxxxx, Xxxxxxx, Xxxxxxxx 00000, except that
certain Oil and Gas Property Collateral also is located at the locations
specified on Schedule 5.21 attached hereto, which schedules include the
names and addresses of each of Borrower's landlords."
2.02 Amendment to Schedule 5.21 of the Loan Agreement. Schedule 5.21 of the
Loan Agreement is hereby deleted in its entirety and is replaced with Schedule
5.21 attached hereto as Annex I.
ARTICLE III
Limited Consent to and Waiver Regarding Closing of
Oklahoma City, Oklahoma and Midland, Texas Offices
and Related Activities
3.01 Limited Consent to and Waiver Regarding Closing of Oklahoma City,
Oklahoma and Midland, Texas Offices and Related Activities. Borrower (i) has
requested permission from the Agent and Lender for Borrower to consummate the
following activities (collectively, the "Activities"):
(a) Closure of the following offices of Borrower:
(1) One Xxxxxx Place
Suites 130 and 850
0000 Xxxxx Xxxxxxxx
Xxxxxxxx Xxxx, Xxxxxxxx 000000
(2) 000 X. Xxxxxx
Xxxxx 000
Xxxxxxx, Xxxxx 00000; and
(b) Outsourcing the accounting functions previously performed at the
above-described Oklahoma City, Oklahoma office to one of Borrower's
accounting firms, Xxxxxx & Xxxx, including moving the relevant financial
and collateral information previously located at the above-described
Oklahoma City, Oklahoma location to the Xxxxxx & Xxxx office at:
000 X. Xxxxxxxx
Xxxxxxx, Xxxxxxxx 00000;
and
(ii) has requested that Agent and Lender waive the covenants embodied in Section
7.12 of the Loan Agreement to the extent such covenants would be deemed violated
solely due to the consummation of the Activities and waive the violation of the
representations and warranties embodied in Section 5.21 of the Loan Agreement to
the extent such representations and warranties would be deemed violated solely
due to the consummation of the Activities Subject to the conditions specified in
Section 3.02 of this Amendment and to the other terms, conditions and provisions
of this Amendment, each of Agent and Lender hereby (i) consents to the
consummation by Borrower of the Activities, and (ii) waives the covenants
embodied in Section 7.12 of the Loan Agreement to the extent such covenants
would be deemed violated solely due to the consummation of the Activities and
waives the violation of the representations and warranties embodied in Section
5.21 of the Loan Agreement to the extent such representations and warranties
would be deemed violated solely due to the consummation of the Activities;
provided, however, the consent and waiver described in this Section 3.01 of the
Amendment is strictly limited to the Activities and to the above-described
Sections of the Loan Agreement as they relate to the Activities.
Section 3.02 Conditions to Consent and Waiver. The effectiveness of the
consent and waiver described above in Section 3.01 is subject to each of the
conditions specified in Article IV of this Amendment regarding the effectiveness
of this Amendment having been satisfied in a manner satisfactory to Agent.
3.03 No Other Waivers. Except as otherwise specifically provided for in
Section 3.01 of this Amendment, nothing contained herein shall be construed as a
waiver by Agent or Lender of any covenant or provision of the Loan Agreement,
the other Loan Documents, this Amendment or of any other contract or instrument
between Borrower and Agent or Lender, and the failure of Agent or Lender at any
time or times hereafter to require strict performance by Borrower of any
provision thereof shall not waive, affect or diminish any right of Agent or
Lender to thereafter demand strict compliance therewith. Each of Agent and
Lender hereby reserves all rights granted under the Loan Agreement, the other
Loan Documents, this Amendment and any other contract or instrument between
Borrower and Agent or Lender.
ARTICLE IV
Conditions Precedent
4.01 Conditions to Effectiveness. The effectiveness of this Amendment is
subject to the satisfaction of the following conditions precedent in a manner
satisfactory to Agent, unless specifically waived in writing by Agent:
(a) Agent shall have received this Amendment, duly executed by
Borrower.
(b) Agent shall have received an agreement duly executed by Xxxxxx &
Xxxx, whereby Xxxxxx & Xxxx agrees to grant Agent access to the books and
records of Borrower kept at the Xxxxxx & Xxxx office, and agrees to turn
over such books and records to Agent upon request by Agent, the form and
substance of such agreement to be satisfactory to Agent.
(c) The representations and warranties contained herein and in the
Loan Agreement and the other Loan Documents, as each is amended hereby,
shall be true and correct as of the date hereof, as if made on the date
hereof.
(d) No Default or Event of Default shall have occurred and be
continuing, unless such Default or Event of Default has been otherwise
specifically waived in writing by Agent.
(e) All corporate proceedings taken in connection with the
transactions contemplated by this Amendment and all documents, instruments
and other legal matters incident thereto shall be satisfactory to Agent and
its legal counsel.
ARTICLE V
Ratifications, Representations and Warranties
5.01 Ratifications. The terms and provisions set forth in this Amendment
shall modify and supersede all inconsistent terms and provisions set forth in
the Loan Agreement and the other Loan Documents, and, except as expressly
modified and superseded by this Amendment, the terms and provisions of the Loan
Agreement and the other Loan Documents are ratified and confirmed and shall
continue in full force and effect. Borrower, Lender and Agent agree that the
Loan Agreement and the other Loan Documents, as amended hereby, shall continue
to be legal, valid, binding and enforceable in accordance with their respective
terms.
5.02 Representations and Warranties. Borrower hereby represents and
warrants to Agent and Lender that (a) the execution, delivery and performance of
this Amendment and any and all other Loan Documents executed and/or delivered in
connection herewith have been authorized by all requisite corporate action on
the part of Borrower and will not violate the Articles of Incorporation or
Bylaws of Borrower; (b) attached hereto as Annex A is a true, correct and
complete copy of presently effective resolutions of Borrower's Board of
Directors authorizing the execution, delivery and performance of this Amendment
and any and all other Loan Documents executed and/or delivered in connection
herewith, certified by the Secretary of Borrower; (c) the representations and
warranties contained in the Loan Agreement, as amended hereby, and any other
Loan Document are true and correct on and as of the date hereof and on and as of
the date of execution hereof as though made on and as of each such date; (d) no
Default or Event of Default under the Loan Agreement, as amended hereby, has
occurred and is continuing, unless such Default or Event of Default has been
specifically waived in writing by Agent or Lender; (e) Borrower is in full
compliance with all covenants and agreements contained in the Loan Agreement and
the other Loan Documents, as amended hereby; and (f) Borrower has not amended
its Articles of Incorporation or its Bylaws since the date of the Loan
Agreement.
ARTICLE VI
Miscellaneous Provisions
6.01 Survival of Representations and Warranties. All representations and
warranties made in the Loan Agreement or any other Loan Document, including,
without limitation, any document furnished in connection with this Amendment,
shall survive the execution and delivery of this Amendment and the other Loan
Documents, and no investigation by Agent or Lender or any closing shall affect
the representations and warranties or the right of Agent or Lender to rely upon
them.
6.02 Reference to Loan Agreement. Each of the Loan Agreement and the other
Loan Documents, and any and all other Loan Documents, documents or instruments
now or hereafter executed and delivered pursuant to the terms hereof or pursuant
to the terms of the Loan Agreement, as amended hereby, are hereby amended so
that any reference in the Loan Agreement and such other Loan Documents to the
Loan Agreement shall mean a reference to the Loan Agreement, as amended hereby.
6.03 Expenses of Lender and Agent. As provided in the Loan Agreement,
Borrower agrees to pay on demand all costs and expenses incurred by Agent or
Lender in connection with the preparation, negotiation, and execution of this
Amendment and the other Loan Documents executed pursuant hereto and any and all
amendments, modifications, and supplements thereto, including, without
limitation, the costs and fees of Agent's legal counsel and Lender's legal
counsel, and all costs and expenses incurred by Agent and Lender in connection
with the enforcement or preservation of any rights under the Loan Agreement, as
amended hereby, or any other Loan Documents, including, without, limitation, the
costs and fees of Agent's legal counsel and Lender's legal counsel.
6.04 Severability. Any provision of this Amendment held by a court of
competent jurisdiction to be invalid or unenforceable shall not impair or
invalidate the remainder of this Amendment and the effect thereof shall be
confined to the provision so held to be invalid or unenforceable.
6.05 Successors and Assigns. This Amendment is binding upon and shall inure
to the benefit of Lender and Agent and Borrower and their respective successors
and assigns, except that Borrower may not assign or transfer any of its rights
or obligations hereunder without the prior written consent of Agent or Lender.
6.06 Counterparts. This Amendment may be executed in one or more
counterparts, each of which when so executed shall be deemed to be an original,
but all of which when taken together shall constitute one and the same
instrument.
6.07 Effect of Waiver. No consent or waiver, express or implied, by Agent
or Lender to or for any breach of or deviation from any covenant or condition by
Borrower shall be deemed a consent to or waiver of any other breach of the same
or any other covenant, condition or duty.
6.08 Headings. The headings, captions, and arrangements used in this
Amendment are for convenience only and shall not affect the interpretation of
this Amendment.
6.09 Applicable Law. THIS AMENDMENT AND ALL OTHER LOAN DOCUMENTS EXECUTED
PURSUANT HERETO SHALL BE DEEMED TO HAVE BEEN MADE AND TO BE PERFORMABLE IN AND
SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF
CALIFORNIA.
6.10 Final Agreement. THE LOAN AGREEMENT AND THE OTHER LOAN DOCUMENTS, EACH
AS AMENDED HEREBY, REPRESENT THE ENTIRE EXPRESSION OF THE PARTIES WITH RESPECT
TO THE SUBJECT MATTER HEREOF ON THE DATE THIS AMENDMENT IS EXECUTED. THE LOAN
AGREEMENT AND THE OTHER LOAN DOCUMENTS, AS AMENDED HEREBY, MAY NOT BE
CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS
OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES. NO
MODIFICATION, RESCISSION, WAIVER, RELEASE OR AMENDMENT OF ANY PROVISION OF THIS
AMENDMENT SHALL BE MADE, EXCEPT BY A WRITTEN AGREEMENT SIGNED BY BORROWER AND
AGENT AND LENDER.
[The Remainder of this Page Intentionally Left Blank]
IN WITNESS WHEREOF, this Amendment has been executed and is effective as of
the date first above-written.
BORROWER:
RAM ENERGY, INC.,
a Delaware corporation
By: /s/ XXXX XXXXXXXX
Name: Xxxx Xxxxxxxx
Title: Senior Vice President
LENDER:
FOOTHILL CAPITAL CORPORATION,
a California corporation, as Lender
By: /s/ XXXXXXX XXXXXXXX
Name: Xxxxxxx Xxxxxxxx
Title: Vice President
AGENT:
FOOTHILL CAPITAL CORPORATION,
a California corporation, as Agent
for Lender
By: /s/ XXXXXXX XXXXXXXX
Name: Xxxxxxx Xxxxxxxx
Title: Vice President
Acknowledged, Consented and Agreed to:
RLP GULF STATES, L.L.C.,
an Oklahoma limited liability company
By: RAM ENERGY, INC.,
a Delaware corporation, as its Sole Member
and Sole Manager
By: /s/ XXXX XXXXXXXX
Name: Xxxx Xxxxxxxx
Title: Senior Vice President
MAGIC CIRCLE ENERGY CORPORATION,
a Delaware corporation
By: /s/ XXXX XXXXXXXX
Name: Xxxx Xxxxxxxx
Title: Senior Vice President
MAGIC CIRCLE ACQUISITION CORPORATION,
an Oklahoma corporation
By: /s/ XXXX XXXXXXXX
Name: Xxxx Xxxxxxxx
Title: Senior Vice President
XXXXXX DEVELOPMENT CORPORATION,
an Oklahoma corporation
By: /s/ XXXX XXXXXXXX
Name: Xxxx Xxxxxxxx
Title: Senior Vice President
XXXXXX FIELD LIMITED PARTNERSHIP,
an Oklahoma limited partnership
By: XXXXXX DEVELOPMENT CORPORATION,
an Oklahoma corporation, its Sole General Partner
By: /s/ XXXX XXXXXXXX
Name: Xxxx Xxxxxxxx
Title: Senior Vice President
ANNEXES:
A - Certified Resolutions of RAM Energy, Inc.
I - Schedule 5.21 to the Amended and Restated Loan and Security Agreement
ANNEX A
CERTIFIED RESOLUTIONS OF
RAM ENERGY, INC.'S BOARD OF DIRECTORS
RESOLVED: That any officer of RAM Energy, Inc., a Delaware corporation (the
"Corporation"), acting alone, by his signature be, and the same hereby is,
authorized and directed, in the name of and on behalf of the Corporation (a) to
amend that certain Amended and Restated Loan and Security Agreement by and among
the Corporation, the financial institutions listed on the signature pages
thereof (individually and collectively, "Lender"), and Foothill Capital
Corporation, a California corporation, as agent for the Lender ("Agent"), (b) to
execute and deliver to Agent with such changes in the terms and provisions
thereof as the officer executing same shall, in his sole discretion, deem
advisable, (i) a certain proposed First Amendment to Amended and Restated Loan
and Security Agreement to be executed by Corporation, Lender and Agent, a draft
of which has been reviewed and discussed by the Board of Directors of the
Corporation, and (ii) such other Loan Documents, instruments, statements and
writings as the officer or officers executing the same may deem desirable or
necessary in connection therewith, and (c) to perform such other acts as the
officer or officers performing such acts on behalf of the Corporation may deem
desirable or necessary in connection therewith; and be it
FURTHER RESOLVED: That said agreements will benefit the Corporation, both
directly and indirectly, and are in the best interests of the Corporation; and
be it
FURTHER RESOLVED: That said agreements and other statements in writing
executed in the name and on behalf of the Corporation by any officer of the
Corporation shall be presumed conclusively to be the instruments, the execution
of which is authorized by these resolutions; and be it
FURTHER RESOLVED: That the officers of the Corporation be, and the same
hereby are, authorized and directed to execute, in the name of and on behalf of
the Corporation, security agreements, financing statements, assignments,
collateral reports, loan statements, confirmations of delivery, lien statements,
pledge certificates, release certificates, removal reports, guaranties,
cross-collateralization agreements and such other writings and to take such
other actions as are necessary in their dealings with Agent and Lender, and any
such papers executed and any such actions taken by any of them prior to this
time are approved, ratified and confirmed; and be it
FURTHER RESOLVED: That the Secretary or any Assistant Secretary of the
Corporation, by the signature of any one or more of them, be, and the same
hereby are, authorized and directed to attest the execution by the Corporation
of the papers signed pursuant to these resolutions, to affix the seal of the
Corporation thereto, if required by Agent or Lender, and to certify to Agent and
Lender the adoption of these resolutions.
CERTIFICATION
The undersigned hereby certifies that the within and foregoing resolutions
are in effect as of the date hereof, without modification, and that the person
signing the within and foregoing Amendment on behalf of the Corporation is the
duly elected officer stated below his name, that he is authorized to sign such
Amendment, and that his signature thereon is genuine.
DATED: May ___, 2000
/s/ XXXX XXXXXXXX
[Assistant] Secretary of the Corporation
ANNEX I
SCHEDULE 5.21
TO
AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT
[See Attached]
