Note Purchase Agreement for US$25,000,000 Senior Secured Notes between CanArgo Energy Corporation and Purchasers (July 25, 2005)

Contract Categories: Business Finance › Note Agreements
Summary

CanArgo Energy Corporation entered into an agreement with purchasers to sell $25 million in senior secured notes due July 25, 2009. The agreement outlines the terms for the sale and purchase of the notes, the security interests granted to purchasers, and the conditions required for closing. It also details the company’s representations, warranties, and ongoing obligations, as well as the rights of the purchasers. The notes are secured by collateral, and the agreement includes provisions for prepayment, change of control, and both affirmative and negative covenants to protect the interests of the purchasers.

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EX-4.1 2 y11219exv4w1.txt EX-4.1: NOTE PURCHASE AGREEMENT EXHIBIT 4.1 ================================================================================ CANARGO ENERGY CORPORATION US $25,000,000.00 Senior Secured Notes due July 25, 2009 ---------- NOTE PURCHASE AGREEMENT ---------- DATED JULY 25, 2005 TABLE OF CONTENTS (Not a part of the Agreement)
SECTION HEADING PAGE SECTION 1. AUTHORIZATION OF NOTES.................................................................1 SECTION 2. SALE AND PURCHASE OF NOTES.............................................................1 SECTION 3. SECURITY...............................................................................1 Section 3.1. Grant of Security Interests............................................................1 SECTION 4. CLOSING................................................................................2 SECTION 5. CONDITIONS TO CLOSING..................................................................3 Section 5.1 Conditions to Purchaser's Obligation to Purchase Notes.................................3 Section 5.1.1. Representations and Warranties.........................................................3 Section 5.1.2. Performance; No Default................................................................3 Section 5.1.3. Compliance Certificates................................................................3 Section 5.1.4. Opinions of Counsel....................................................................4 Section 5.1.5. Purchase Permitted by Applicable Law, etc..............................................4 Section 5.1.6. Loan Documents.........................................................................4 Section 5.1.7. Proceedings and Documents..............................................................4 Section 5.1.8. Subsidiary Guaranties..................................................................4 Section 5.1.9. Due Diligence..........................................................................4 Section 5.2 Conditions to Obligations of the Company...............................................4 Section 5.2.1 Representations and Warranties.........................................................4 Section 5.2.2. Performance............................................................................5 Section 5.2.3. Proceedings and Litigation.............................................................5 Section 5.2.4. Proceedings and Documents..............................................................5 SECTION 6. REPRESENTATIONS AND WARRANTIES OF THE COMPANY..........................................5 Section 6.1. Organization; Power and Authority......................................................5 Section 6.2. Authorization, etc.....................................................................5 Section 6.3. Disclosure.............................................................................6 Section 6.4. Organization and Ownership of Shares of Subsidiaries; Affiliates.......................6 Section 6.5. Financial Statements...................................................................6 Section 6.6. Compliance with Laws, Other Instruments, etc...........................................7 Section 6.7. Governmental Authorizations, etc.......................................................7 Section 6.8. Litigation; Observance of Agreements, Statutes and Orders..............................7 Section 6.9. Taxes..................................................................................7 Section 6.10. Title to Collateral; Assets of the Company.............................................8 Section 6.11. Licenses, Permits, etc.................................................................8
Section 6.12. Benefit Plan Compliance................................................................8 Section 6.13. Private Offering by the Company........................................................9 Section 6.14. Use of Proceeds; Margin Regulations....................................................9 Section 6.15. Existing Indebtedness; Future Liens....................................................9 Section 6.16. Foreign Assets Control Regulations, etc...............................................10 Section 6.17. Status under Certain Statutes.........................................................10 Section 6.18. Environmental Matters.................................................................10 Section 6.19. Basic Documents.......................................................................11 Section 6.20. Solvency..............................................................................11 SECTION 7. REPRESENTATIONS OF THE PURCHASER......................................................12 Section 7.1 Due Authorization; Absence of Conflicts; Enforceability; Purchase for Investment, etc.......................................................................12 Section 7.2 Access to Information.................................................................13 Section 7.3. Source of Funds.......................................................................13 SECTION 8. INFORMATION AS TO COMPANY.............................................................14 Section 8.1. Financial and Business Information....................................................14 Section 8.2. Officer's Certificate.................................................................17 Section 8.3. Inspection............................................................................18 SECTION 9. PREPAYMENT OF THE NOTES; CHANGE IN CONTROL............................................18 Section 9.1. Optional Prepayments..................................................................18 Section 9.2. Allocation of Partial Prepayments.....................................................18 Section 9.3. Maturity; Surrender, etc..............................................................19 Section 9.4. Purchase of Notes.....................................................................19 Section 9.5. Redemption Price......................................................................19 Section 9.6. Change in Control.....................................................................19 SECTION 10. AFFIRMATIVE COVENANTS.................................................................21 Section 10.1. Compliance with Law...................................................................21 Section 10.2. Insurance.............................................................................21 Section 10.3. Maintenance of Properties.............................................................22 Section 10.4. Payment of Taxes and Claims...........................................................22 Section 10.5. Corporate Existence, etc..............................................................22 Section 10.6. Additional Subsidiaries...............................................................22 Section 10.7. Conversion of Note....................................................................23 Section 10.8. Additional Security...................................................................24 Section 10.9. Payment of Special Counsel and Other Fees.............................................24 Section 10.10. Payment of Placement Fee..............................................................24 Section 10.11 Termination of Cornell Facilities.....................................................24 SECTION 11. NEGATIVE COVENANTS....................................................................25 Section 11.1. Transactions with Affiliates..........................................................25 Section 11.2. Merger, Consolidation, etc............................................................25
Section 11.3. Liens.................................................................................25 Section 11.4. Priority..............................................................................27 Section 11.5. Line of Business......................................................................27 Section 11.6. Restricted Payments...................................................................28 Section 11.7. Sale-and-Leasebacks...................................................................28 Section 11.8. Sale of Assets, etc...................................................................28 Section 11.9. Future Indebtedness...................................................................29 Section 11.10. Basic Documents.......................................................................29 Section 11.11. Anti-takeover Defense.................................................................30 SECTION 12. EVENTS OF DEFAULT.....................................................................31 SECTION 13. REMEDIES ON DEFAULT, ETC..............................................................33 Section 13.1. Acceleration..........................................................................33 Section 13.2. Other Remedies........................................................................34 Section 13.3. Collateral............................................................................34 Section 13.4. Costs and Expenses....................................................................34 Section 13.5. Rescission............................................................................34 Section 13.6. No Waivers or Election of Remedies, Expenses, etc.....................................35 SECTION 14. REGISTRATION; EXCHANGE; SUBSTITUTION OF NOTES.........................................35 Section 14.1. Registration of Notes.................................................................35 Section 14.2. Transfer and Exchange of Notes........................................................35 Section 14.3. Replacement of Notes..................................................................36 SECTION 15. PAYMENTS ON NOTES.....................................................................36 Section 15.1. Place of Payment......................................................................36 Section 15.2. Home Office Payment...................................................................36 SECTION 16. EXPENSES, ETC.........................................................................37 Section 16.1. Transaction Expenses..................................................................37 Section 16.2. Survival..............................................................................37 SECTION 17. SURVIVAL OF REPRESENTATIONS AND WARRANTIES; ENTIRE AGREEMENT..........................38 SECTION 18. AMENDMENT AND WAIVER..................................................................38 Section 18.1. Requirements..........................................................................38 Section 18.2. Solicitation of Holders of Notes......................................................38 Section 18.3. Binding Effect, etc...................................................................39 Section 18.4. Notes Held by Company, etc............................................................39
SECTION 19. NOTICES...............................................................................39 SECTION 20. REPRODUCTION OF DOCUMENTS.............................................................40 SECTION 21. CONFIDENTIAL INFORMATION..............................................................40 SECTION 22. SUBSTITUTION OF PURCHASER.............................................................41 SECTION 23. MISCELLANEOUS.........................................................................42 Section 23.1. Successors and Assigns................................................................42 Section 23.2. Payments Due on Non-Business Days.....................................................42 Section 23.3. Severability..........................................................................42 Section 23.4. Construction and Interpretation.......................................................42 Section 23.5. Counterparts..........................................................................43 Section 23.6. Governing Law.........................................................................43 Section 23.7. Submission to Jurisdiction............................................................43 Section 23.8 Appointment of Agent for Service of Process...........................................43 Section 23.9. Company Indemnification...............................................................44 Signatures........................................................................................................1
SCHEDULE A -- Information Relating To Purchasers SCHEDULE B -- Defined Terms SCHEDULE 5.11 -- Subsidiary Guarantors SCHEDULE 6.3 -- Disclosure Materials SCHEDULE 6.4 -- Subsidiaries of CanArgo SCHEDULE 6.5 -- Financial Statements SCHEDULE 6.8 -- Certain Litigation SCHEDULE 6.11 -- Licenses, Permits, etc. SCHEDULE 6.14 -- Use of Proceeds SCHEDULE 6.15 -- Existing Indebtedness SCHEDULE 6.18 -- Environmental Matters SCHEDULE 6.19 -- Basic Agreements SCHEDULE 11.1 -- Transactions with Affiliates SCHEDULE 11.8 -- Permitted Farmout Counterparties