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EXHIBIT 10.65
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DENALI INCORPORATED
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WAIVER AGREEMENT
Dated as of September 30, 2000
Relating to the
Note and Warrant Purchase Agreement dated as of June 30, 1999
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12% Senior Subordinated Notes due 2006
and Warrants
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DENALI INCORPORATED
WAIVER AGREEMENT
as of September 27, 2000
Re: 12% Senior Subordinated Notes due 2006
TO THE SEVERAL HOLDERS OF NOTES
WHOSE NAMES APPEAR IN THE
ACCEPTANCE FORM AT THE END
HEREOF
Ladies and Gentlemen:
Denali Incorporated, a Delaware corporation (the "COMPANY"),
hereby agrees with you as follows:
Section 1. NOTE PURCHASE AGREEMENT, PROPOSED WAIVER, ETC.
Pursuant to the Note and Warrant Purchase Agreement dated as of June 30, 1999
(the "PURCHASE AGREEMENT") entered into by the Company with the investors named
in Schedule A thereto, the Company issued and sold $15,000,000 aggregate
principal amount of its 12% Senior Subordinated Notes due 2006 (the "NOTES")
and warrants initially to purchase an aggregate of 534,873 shares of the
Company's Common Stock, all of which Notes remain outstanding on the date
hereof. Unless the context otherwise requires, capitalized terms used herein
without definition have the respective meanings ascribed thereto in the
Purchase Agreement.
The Company proposes that the holders of the Notes waive any
Default or Event of Default for the period from June 30,2000 to and including
December 31, 2000 resulting solely from the failure of the Company to pay
accrued interest due and payable on the Notes on June 30, 2000 and September
30, 2000.
Section 2. REPRESENTATIONS AND WARRANTIES. The Company
represents and warrants to you as follows:
Section 2.1. No Default, etc. Except as described in Section
4 and except for failure of the Company to comply with its obligations under
Section 10.1 of the Purchase Agreement as of the last days of the fiscal
quarters and for the applicable numbers of fiscal quarters respectively ending
on December 31, 1999, March 31, 2000, July 1, 2000 and September 30, 2000, no
Event of Default or Default has occurred and is continuing and after giving
effect to the effectiveness of this Waiver Agreement no Event of Default or
Default shall exist except as aforesaid.
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Section 2.2. No Undisclosed Fees (See attached bank amendment
in February 2000 introducing an interest grid versus fixed margins previously.
Rates increased 1%). The Company has not, directly or indirectly, paid or
caused to be paid any consideration (as supplemental or additional interest, a
fee or otherwise) to any holder of Notes or other Indebtedness in order to
induce such holder to enter into this Waiver Agreement or to waive or forebear
with respect to defaults in respect of such other Indebtedness or give its
consent or take any other action in connection with the transactions
contemplated hereby, nor has the Company agreed to make any such payment.
Section 3. REPRESENTATION OF THE HOLDER. You represent to the
Company that you are the beneficial owner of Notes in the aggregate unpaid
principal amount and set forth below your name in the acceptance form of this
Waiver Agreement.
Section 4. WAIVER UNDER NOTES. Subject to this Waiver
Agreement becoming effective as below provided, you hereby waive for the period
from June 30, 2000 to and including December 31, 2000 any default by the
Company in the payment of interest on any Note that is due and payable on June
30, 2000 and September 30, 2000. During such waiver period, interest shall
continue to accrue on the unpaid principal amount of each Note and interest
shall also accrue on all overdue interest on such Note (but for this Waiver
Agreement) until such overdue interest is paid.
Section 5. EFFECTIVENESS OF THIS WAIVER AGREEMENT. This
Waiver Agreement will become effective on the date on which counterparts of
this Waiver Agreement shall have been executed and delivered by the Company and
the holders of all of the Notes.
Section 6. RATIFICATION. Except as modified hereby, the
Purchase Agreement is in all respects ratified and confirmed and the provisions
thereof shall remain in full force and effect.
Section 7. COUNTERPARTS. This Waiver Agreement may be
executed in two or more counterparts, each of which shall be deemed an
original, but all of which together shall constitute one and the same
instrument.
Section 8. GOVERNING LAW. This Waiver Agreement shall be
governed by and construed in accordance with the laws of the State of New York.
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If you are in agreement with the foregoing, please sign the
form of acceptance in the space below provided, whereupon this Waiver Agreement
shall become a binding agreement between you and the Company, subject to this
Waiver Agreement becoming effective as hereinabove provided.
DENALI INCORPORATED
By /s/ XXXXXXX X. XXXX
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Title: CEO
ACCEPTED AND AGREED:
THE VARIABLE ANNUITY LIFE INSURANCE
COMPANY
By /s/ C. XXXXX XXXXXX
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Title: C. Xxxxx Xxxxxx
Investment Officer
Principal Amount of Notes Held: $6,285,000
A.G. INVESTMENT ADVISORY SERVICES, INC.
By /s/ XXXXXXX X. XXXX, XX.
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Title: Xxxxxxx X. Xxxx, Xx.
Real Estate Investment Officer
Principal Amount of Notes Held; $4,1190,000
EMC EQUITY FUND, L.P.
By /s/ XXXXX X. XXXXXXXXX
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Title: Xxxxx X. Xxxxxxxxx
Managing Director
Principal Amount of Notes Held: $1,500,000
XXXXXXXX INVESTMENT PARTNERS, L.P.
By /s/ XXXXX X. XXXXXXXX
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Title: Xxxxxx X. Xxxxxxxx
Chairman, Texas Production Company, G.P.
Principal Amount of Notes Held: $1,500,000
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XXXXXXX FAMILY TRUST
By /s/ XXXXXX X. XXXXXXX, XX.
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Title: Xxxxxx X. Xxxxxxx, Xx.
Co-trustee
Principal Amount of Notes Held: $166,666
XXXXXX XXXXXX XXXXXXX, XX. MARITAL
TRUST
By /s/ XXXXXX X. XXXXXXX, XX.
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Title: Xxxxxx X. Xxxxxxx, Xx.
Trustee
Principal Amount of Notes Held: $166,666
XXXXXX XXXXXXX, JR.
By /s/ XXXXXX X. XXXXXXX, XX.
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Title: Xxxxxx X. Xxxxxxx, Xx.
Principal Amount of Notes Held: $166,666
XXXX X. STAFF
By /s/ XXXX X. STAFF
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Title: Xxxx X. Staff
Principal Amount of Notes Held: $250,000
XXXXXXX TRUST CO., LTD..
By /s/ X. XXXX XXXXXXX
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Title: X. Xxxx Xxxxxxx
Principal Amount of Notes Held: $125,000
XXXX XXXXX XXXXXXX REVOCABLE TRUST
By /s/ XXXX XXXXX XXXXXXX
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Title: Xxxx Xxxxx Xxxxxxx
Trustee
Principal Amount of Notes Held: $125,000
XXXXXXX X. XXXXXXXXXX, XX.
By /s/ XXXXXXX X. XXXXXXXXXX, XX.
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Title: Xxxxxxx X. Xxxxxxxxxx, Xx.
Principal Amount of Notes Held: $100,000
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XXXXXXX X. XXXXXXX
By /s/ XXXXXXX X. XXXXXXX
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Title: Xxxxxxx X. Xxxxxxx
Principal Amount of Notes Held: $125,000
H. XXXX XXXXXX
By /s/ H. XXXX XXXXXX
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Title: H. Xxxx Xxxxxx
Principal Amount of Notes Held: $200,000
XXXX XXXXX XXXX XXXXXX, CUSTODIAN
F/O/B XXX X. XXXXXXX PROFIT SHARING
PLAN DATED 12/11/89
By /s/ XXXXX XXXXXXX
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Title: Xxxxx Xxxxxxx
Xx. V.P. - Investments
Principal Amount of Notes Held: $100,000
