Document:

SUBSCRIPTION
AGREEMENT

     

    Epic
Energy Resources, Inc.

    1450 Lake
Robbins Drive, Suite 160

    The
Woodlands, Texas 77380

    Attention:
Mike Kinney

    

    Ladies
and Gentlemen:

     

    1.           Subscription.

     

    (a)           The
undersigned (“Subscriber”) hereby
subscribes to purchase the number of shares (the “Shares”) of Series A
Convertible Preferred Stock (“Series A Preferred
Stock”) set forth on the signature page hereto, of Epic Energy Resources,
Inc., a Colorado corporation (the “Company”).

     

    (b)           The
offering of Series A Preferred Stock by the Company pursuant to this
Subscription Agreement is available only to an “accredited investor,” as defined
in Rule 501 of Regulation D (“Rule 501”) under the
Securities Act of 1933, as amended (the “Securities
Act”).

     

    2.           Closing.

     

    (a)           Upon
(i) acceptance of this Subscription Agreement by the Company and its receipt of
the funds from Subscriber specified herein, (ii) Subscriber’s compliance with
all terms and provisions of this Subscription Agreement and (iii) the
satisfaction of the terms and conditions set forth herein, the Company shall
issue to Subscriber a share certificate representing the Shares.

     

    (b)           Within
20 days of the consummation of the transaction, the Company will mail to the
Subscriber a certificate representing the Shares acquired by the
Subscriber.

     

    3.           Applicable
Documents.  Subscriber acknowledges receipt of the following
documents in addition to this Subscription Agreement:

     

    (a)           the
confidential private placement memorandum of the Company dated as of March 13,
2010 (the “Private
Placement Memorandum”), and

     

    (b)           the
Amendment to the Articles of Incorporation for the Series A Preferred
Stock.

     

    4.           Deliveries by
Subscriber.  Subscriber hereby delivers to the
Company:

     

    (a)           a
check, wire receipt confirmation or other form of immediately available funds,
made payable to the order of the Company or directed to an account specified by
the Company, in the amount set forth on the signature page hereto, in payment
for the right to be issued the Series A Preferred Stock subscribed for
hereunder;

     

    (b)           a
completed and executed Appendix A to the
Subscription Agreement; and

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

     

    (c)           this
executed Subscription Agreement.

     

    5.           Conditions to
Closing.  The obligation of the Company to consummate the
transactions shall be subject to the satisfaction or waiver of the following
conditions:

     

    (a)           the
holders of the Company’s Series C warrants tender, and do not withdraw, 100% of
the Company’s outstanding Series C warrants, as contemplated by the confidential
private placement memorandum;

     

    (b)           the
holders of the Company’s Series D warrants tender, and do not withdraw, 100% of
the Company’s outstanding Series D warrants, as contemplated by the confidential
private placement memorandum;

     

    (c)           the
Company’s sale of a minimum of 3,500,000 shares of the Company’s Series A
Preferred Stock, as contemplated in the confidential private placement
memorandum;

     

    (d)           holders
of at least 90% of the outstanding principal amount of the Company’s 10% Secured
Debentures with a maturity date of December 5, 2012, execute the Waiver and
Amendment to Debentures and the Amendment to Securities Purchase Agreement, as
contemplated by the confidential private placement memorandum; and

     

    (e)           the
exchange by Company’s management of deferred compensation for prior periods and
a permanent reduction of their 2010 base salaries for 1,000,000 shares of the
Company’s Series A Preferred Stock, as contemplated in the confidential private
placement memorandum.

     

    6.           Representations, Warranties and Covenants of
Subscriber.  Subscriber hereby represents, warrants and
covenants to the Company and its representatives as follows:

     

    (a)           Subscriber
has full power and authority to execute and deliver this Subscription Agreement
and to perform its obligations hereunder and such actions, if applicable, have
been duly authorized by all requisite action, corporate, partnership or
otherwise.

     

    (b)           The
execution and delivery by Subscriber of this Subscription Agreement and the
performance by Subscriber of its obligations hereunder do not and will not
violate any provision of law, any order of any court or other agency of
government, and do not and will not result in a material breach of or constitute
(with due notice or lapse of time or both) a material default under any
provision of any indenture, agreement or other instrument to which Subscriber,
or any of its properties or assets, is bound.

     

    (c)           This
Subscription Agreement has been duly executed and delivered by Subscriber and,
upon acceptance and execution by the Company, will constitute the legal, valid
and binding obligation of Subscriber, enforceable in accordance with its
terms.

     

    (d)           Subscriber
is (i) a citizen of the United States and is at least 21 years of age or (ii) a
corporation or other legal entity formed and duly organized under the laws of
the United States or a state thereof, and the offer to purchase the Shares was
made and accepted by the Subscriber in the United States.

    
      
         

      

      
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    (e)           Subscriber
is an “accredited investor,” as defined in Rule 501 under the Securities Act,
and the certifications made, and information furnished, by Subscriber in Appendix A attached
hereto in connection with this subscription are true and complete.

     

    (f)           The
acquisition of the Shares by Subscriber is for Subscriber’s own account, is for
investment purposes only, and is not with a view to, nor for offer or sale in
connection with, the distribution of the Shares.  Subscriber is not
participating, does not have a participation in, and does not contemplate any
participation in such distribution or the underwriting of any such
distribution.

     

    (g)           Subscriber
has no present intention of selling or otherwise disposing of the Shares in
violation of the Securities Act or other applicable securities laws of any
state.

     

    (h)           Subscriber
is able to bear the economic risk of the investment in the Company for an
indefinite period of time.  Subscriber understands that the Series A
Preferred Stock being offered hereunder has not been registered under the
Securities Act or the securities laws of any state and, therefore, cannot be
sold unless such Series A Preferred Stock is subsequently registered under the
Securities Act and any applicable securities laws of any state or exemptions
from registration thereunder are available.  Subscriber further
understands that only the Company can take action to register the Series A
Preferred Stock which the Company has agreed to do pursuant to that certain
Registration Rights Agreement dated the date hereof.

     

    (i)           
Subscriber has such knowledge and experience in financial, investing and
business matters as to be capable of evaluating the risks and merits of this
investment in the Company and protecting Subscriber’s interests in connection
with such investment.

     

    (j)           
If Subscriber is a corporation, trust, partnership or other organization,
Subscriber is not an “investment company,” as defined in Section 3(a) of the
Investment Company Act of 1940, as amended (the “Investment Company
Act”), or an entity that would be an “investment company” but for the
exception provided for in Section 3(c)(1) or Section 3(c)(7) of the Investment
Company Act.

     

    (k)           Subscriber
confirms that it understands and has fully considered for purposes of this
investment (i) that the Shares being offered are speculative investments which
involve a high degree of risk of loss by Subscriber of its entire investment
therein, and (ii) that there are substantial restrictions on the transferability
of, and there will be no public market for, the Shares and accordingly, it may
not be possible for Subscriber to liquidate its investment in the
Company.

     

    (l)          
 Subscriber is aware that no federal or state governmental authority has
made any finding or determination as to the fairness of an investment in the
Company, or any recommendation or endorsement with respect thereto.

     

    (m)          The
funds provided to the Company for Subscriber’s payment are either separate
property or community property over which Subscriber has the right of control or
are otherwise funds as to which Subscriber has the sole right of
management.

    
      
         

      

      
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    (n)           Subscriber
was not contacted by the Company or its representatives for the purpose of
investing in any securities of the Company offered hereby through any
advertisement, article, mass mailing, cold call, notice or any other
communication published in any newspaper, magazine, or similar media or
broadcast over television or radio, or any seminar or meeting whose attendees
were invited by any general advertising.

     

    (o)           Subscriber
understands that the Shares are being offered and sold to it in reliance upon
specific exemptions from the registration requirements of the Securities Act and
state securities laws, and that the Company is relying upon the truth and
accuracy of, and the Subscriber’s compliance with, the representations,
warranties, agreements, acknowledgements and understandings of the Subscriber
set forth herein and in Appendix A attached
hereto, in order to determine the availability of such exemptions and the
eligibility of the Subscriber to acquire the Shares.

     

    (p)           Subscriber
confirms that, in making Subscriber’s decision to purchase the Shares hereby
subscribed for, Subscriber has relied solely upon independent investigations
made by Subscriber or Subscriber’s representative(s), including Subscriber’s own
professional tax and other advisers and that Subscriber and such representatives
have had access to and an opportunity to inspect all relevant information
relating to the Company (including all documents referenced herein) sufficient
to enable Subscriber to evaluate the merits and risks of Subscriber’s purchase
of the Shares hereunder.

     

    (q)           Subscriber
has had the opportunity to ask questions of officers of the Company and has
received satisfactory answers respecting, and has obtained such additional
information as Subscriber has desired regarding the business, financial
condition and affairs of the Company.

     

    (r)           Subscriber
is not acquiring the Shares with a view to realizing any benefits under the
United States federal income tax laws with respect to Subscriber’s share of any
losses or expenses of the Company, and no representations have been made to
Subscriber that any such benefits will be available as a result of Subscriber’s
acquisition, ownership or disposition of the Shares.

     

    (s)           All
information that Subscriber has supplied to the Company or its representatives
or agents, including the information herein and in Appendix A attached
hereto, in connection with the determination of whether to accept Subscriber’s
subscription, is true and complete.

     

    7.           Representations, Warranties
and Covenants of the Company.  The Company represents, warrants and
covenants to Subscriber as follows:

     

    (a)           The
Company is a corporation duly organized, validly existing and in good standing
under the laws of the State of Colorado and is duly licensed or qualified to
transact business as a foreign corporation and is in good standing in each
jurisdiction in which the nature of the business transacted by it or the
character of the properties owned or leased by it requires such licensing or
qualification, except where the failure to be so licensed or qualified would not
reasonably be expected to have a material adverse effect on the business,
condition (financial or otherwise) or assets of the Company.  The
Company has full power and authority, corporate or otherwise, to own and hold
its properties and to carry on its business as now conducted and as proposed to
be conducted, to execute, deliver and perform this Subscription Agreement and
all other documents required to complete the subscription hereunder and to
issue, sell and deliver the Shares.

    
      
         

      

      
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    (b)           The
execution and delivery of this Subscription Agreement and the performance by the
Company of its obligations hereunder, including the issuance of any Series A
Preferred Stock pursuant hereto, has been duly authorized by all requisite
action, corporate or otherwise, and do not and will not violate any provision of
law, any order of any court or other agency of government or the Articles of
Incorporation or Bylaws of the Company, as may be amended to date, and do not
and will not result in a material breach of or constitute (with due notice or
lapse of time or both) a material default under any provision of any indenture,
agreement or other instrument to which the Company, or any of its properties or
assets, is bound.

     

    (c)           The
issuance, sale or delivery of the Series A Preferred Stock is not subject to any
preemptive or antidilutive right of the equity holders of the Company or any
other party or to any right of first refusal or other right in favor of any
person that has not been waived except for the antidilution provisions
applicable to the Company’s Series C Warrants and Series D Warrants as set forth
in the Private Placement Memorandum.

     

    (d)           Upon
acceptance by the Company, this Subscription Agreement shall be duly executed
and delivered by the Company and shall constitute the legal, valid and binding
obligation of the Company enforceable in accordance with its terms. Upon
issuance, the Series A Preferred Stock issued hereunder will be duly authorized,
validly issued, fully paid and non-assessable, except as such non-assessability
may be affected by the Colorado Business Corporation Act.

     

    (e)           There
is no action, suit, proceeding at law or in equity, arbitration or
administrative or other proceeding pending, or to the Company’s knowledge
threatened, against or affecting the Company or any of their properties or
rights which would reasonably be expected to have a material adverse effect on
the Company’s business, condition (financial or otherwise) or
assets.

     

    8.           Transfer
Restrictions.

     

    (a)           Subscriber
agrees that it will not sell or otherwise dispose of the Shares unless such sale
or other disposition has been registered or is exempt from registration under
the Securities Act and has been registered or qualified or is exempt from
registration or qualification under applicable securities laws of any state.
Subscriber agrees that, prior to selling or otherwise disposing of any of the
Shares pursuant to an exemption under the Securities Act, the Company may
require an opinion of counsel selected by the Company, the form and substance of
which opinion shall be reasonably satisfactory to the Company, to the effect
that such sale or disposition does not require registration of such Shares under
the Securities Act.

    
      
         

      

      
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    (b)           The
Subscriber hereby covenants with the Company not to make any sale of the Shares
under the Registration Statement without complying with the provisions of this
Agreement and without effectively causing the prospectus delivery requirement
under the Securities Act to be satisfied (whether physically or through
compliance with Rule 172 under the Securities Act or any similar rule), and the
Subscriber acknowledges and agrees that such Shares are not transferable on the
books of the Company unless the certificate submitted to the transfer agent
evidencing the Shares is accompanied by a separate Subscriber’s Certificate of
Subsequent Sale: (i) in the form of Appendix B hereto,
(ii) executed by an officer of, or other authorized person designated by, the
Subscriber, and (iii) to the effect that (A) the Shares have been sold in
accordance with the Registration Statement, the Securities Act, and any
applicable state securities or Blue Sky laws, and (B) the prospectus delivery
requirement effectively has been satisfied.  The Subscriber
acknowledges that there may occasionally be times when the Company must suspend
the use of the prospectus (the “Prospectus”) forming
a part of the Registration Statement (a “Suspension”) until
such time as an amendment to the Registration Statement has been filed by the
Company and declared effective by the Commission, or until such time as the
Company has filed an appropriate report with the Commission pursuant to the
Exchange Act.  Without the Company’s prior written consent, which
consent shall not unreasonably be withheld or delayed, the Subscriber shall not
use any written materials to offer the Shares for resale other than the
Prospectus, including any “free writing prospectus” as defined in Rule 405 under
the Securities Act.  The Subscriber covenants that it will not sell
any Shares pursuant to said Prospectus during the period commencing at the time
when the Company gives the Subscriber written notice of the suspension of the
use of said Prospectus and ending at the time when the Company gives the
Subscriber written notice that the Subscriber may thereafter effect sales
pursuant to said Prospectus.  Notwithstanding the foregoing, the
Company agrees that no Suspension shall be for a period of longer than 60
consecutive days, and no Suspension shall be for a period longer than 120 days
in the aggregate in any 12 month period.  The Subscriber further
covenants to notify the Company promptly of the sale of all of its Shares. The
term “Registration
Statement” shall include any preliminary prospectus, final prospectus,
free writing prospectus, exhibit, supplement, or amendment included in or
relating to, and any document incorporated by reference in, the Registration
Statement.  At any time that the Subscriber is an affiliate of the
Company, any resale of the Shares that purports to be effected under Rule 144
shall comply with all of the requirements of such rule, including the “manner of
sale” requirements set forth in Rule 144(f).

     

    (c)           The
Subscriber understands that, until such time as the Registration Statement has
been declared effective or the Shares may be sold pursuant to Rule 144 under the
Securities Act without any restriction as to the number of securities as of a
particular date that can then be immediately sold, the Shares will bear a
restrictive legend in substantially the following form:

     

    “THE
SHARES EVIDENCED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”) OR THE SECURITIES LAWS
OF ANY STATE OR OTHER JURISDICTION.  THE SHARES MAY NOT BE OFFERED,
SOLD, PLEDGED, OR OTHERWISE TRANSFERRED EXCEPT (1) PURSUANT TO AN EXEMPTION FROM
REGISTRATION UNDER THE SECURITIES ACT, OR (2) PURSUANT TO AN EFFECTIVE
REGISTRATION STATEMENT UNDER THE SECURITIES ACT, IN EACH CASE IN ACCORDANCE WITH
ALL APPLICABLE STATE SECURITIES LAWS AND THE SECURITIES LAWS OF OTHER
JURISDICTIONS, AND IN THE CASE OF A TRANSACTION EXEMPT FROM REGISTRATION, UNLESS
THE COMPANY HAS RECEIVED AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO IT
THAT SUCH TRANSACTION DOES NOT REQUIRE REGISTRATION UNDER THE SECURITIES ACT AND
SUCH OTHER APPLICABLE LAWS.”

    
      
         

      

      
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    (d)           The
Company agrees that following such time as the legend referred to in Section
8(c) is no longer required, it will, no later than ten trading days following
the delivery by a Subscriber to the Company or the Transfer Agent of a
certificate representing the Shares, as the case may be, issued with a
restrictive legend, deliver or cause to be delivered to such Subscriber a
certificate representing such shares that is free from all restrictive and other
legends.  The Company shall cause legal counsel to issue an opinion to the
Transfer Agent promptly if the Transfer Agent conditions the removal of the
legend on receipt of such an opinion. The Transfer Agent and any applicable
broker shall each be instructed not to recognize any transfer by a Subscriber
that does not comply with this Agreement.

     

    (e)           Subscriber
acknowledges and agrees that it has received material nonpublic information in
connection with the transactions contemplated by this Agreement and that it will
not sell or otherwise dispose of any of the Shares unless such material
nonpublic information has been publicly disclosed or no longer constitutes
material nonpublic information.

     

    9.           Authorization of Common
Stock.  The Company shall use its reasonable best efforts to
take all action necessary in accordance with applicable law and the Articles of
Incorporation and Bylaws to duly call and hold a meeting of the Company’s
stockholders (the “Company Meeting”) for
the purpose of considering and voting upon a proposal to amend the Articles of
Incorporation to increase the number of shares of Common Stock authorized for
issuance by the Company to a number of shares sufficient to satisfy the
requirements of the Company, which shall be no less 250,000,000 shares of Common
Stock (the “Proposed
Share Increase”).  The Company shall take all commercially
reasonable action necessary to hold the Company Meeting on or prior to June 1,
2010, including complying with the Exchange Act.  The Company shall
not require any vote greater than a majority of the outstanding shares of
capital stock of the Company entitled to vote thereon, and a majority of the
outstanding stock of each class entitled to vote thereon as a class, for
approval of the Proposed Share Increase.

    
      
         

      

      
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    10.           Limited Conversion of
Shares.  Notwithstanding anything herein to the contrary, the
Company shall not effect any conversion of the Shares, and a Subscriber shall
not have the right to convert any portion of the Shares, to the extent that,
after giving effect to the conversion set forth on the applicable notice of
conversion, such Subscriber (together with such Subscriber’s Affiliates, and any
Persons acting as a group together with such Subscriber or any of such
Subscriber’s Affiliates) would beneficially own in excess of the Beneficial
Ownership Limitation (as defined below).  For purposes of the
foregoing sentence, the number of shares of Common Stock beneficially owned by
such Subscriber and its Affiliates shall include the number of shares of Common
Stock issuable upon conversion of the Shares with respect to which such
determination is being made, but shall exclude the number of shares of Common
Stock which are issuable upon (i) conversion of the remaining, unconverted
Shares beneficially owned by such Subscriber or any of its Affiliates and (ii)
exercise or conversion of the unexercised or unconverted portion of any other
securities of the Company  subject to a limitation on conversion or
exercise analogous to the limitation contained herein (including, without
limitation, the Shares) beneficially owned by such Subscriber or any of its
Affiliates.  Except as set forth in the preceding sentence, for
purposes of this Section 10, beneficial ownership shall be calculated in
accordance with Section 13(d) of the Exchange Act and the rules and regulations
promulgated thereunder.  To the extent that the limitation contained
in this Section 10 applies, the determination of whether the Shares is
convertible (in relation to other securities owned by such Subscriber together
with any Affiliates) and of how many shares of Shares are convertible shall be
in the sole discretion of such Subscriber, exercised in good faith, and the
submission of a notice of conversion shall be deemed to be such Subscriber ’s
determination of whether the Shares may be converted (in relation to other
securities owned by such Subscriber together with any Affiliates) and how many
Shares are convertible, in each case subject to the Beneficial Ownership
Limitation. To ensure compliance with this restriction, each Subscriber will be
deemed to represent to the Company each time it delivers a notice of conversion
that has not violated the restrictions set forth in this paragraph and the
Company shall have no obligation to verify or confirm the accuracy of such
determination.  In addition, a determination as to any group status as
contemplated above shall be determined in accordance with Section 13(d) of the
Exchange Act and the rules and regulations promulgated
thereunder.  For purposes of this Section 10, in determining the
number of outstanding shares of Common Stock, a Subscriber may rely on the
number of outstanding shares of Common Stock as stated in the most recent of the
following: (i) the Company’s most recent periodic or annual report filed with
the Securities and Exchange Commission, as the case may be, (ii) a more recent
public announcement by the Company or (iii) a more recent written notice by the
Company or its transfer agent setting forth the number of shares of Common Stock
outstanding.  Upon the written or oral request of a Subscriber, the
Company shall within two business days confirm orally and in writing to such
Subscriber the number of shares of Common Stock then outstanding.  In
any case, the number of outstanding shares of Common Stock shall be determined
after giving effect to the conversion or exercise of securities of the Company,
including the Shares, by such Subscriber or its Affiliates since the date as of
which such number of outstanding shares of Common Stock was reported. The
“Beneficial Ownership Limitation” shall be 9.9% of the number of shares of the
Common Stock outstanding immediately after giving effect to the issuance of
Common Stock issuable upon conversion of Shares held by the applicable
Subscriber.  A Subscriber, upon not less than 61 days’ prior notice to
the Company, may increase or decrease the Beneficial Ownership Limitation
provisions of this Section 10 applicable to its Shares provided that the
Beneficial Ownership Limitation in no event exceeds 9.9% of the number of shares
of the Common Stock outstanding immediately after giving effect to the issuance
of Common Stock upon conversion of this Shares held by the Subscriber and the
provisions of this Section 10 shall continue to apply.  Any such
increase or decrease will not be effective until the 61st day after such notice
is delivered to the Company and shall only apply to such Subscriber and no other
Subscriber.  The provisions of this paragraph shall be construed and
implemented in a manner otherwise than in strict conformity with the terms of
this Section 10 to correct this paragraph (or any portion hereof) which may be
defective or inconsistent with the intended Beneficial Ownership Limitation
contained herein or to make changes or supplements necessary or desirable to
properly give effect to such limitation.  The limitations contained in
this paragraph shall apply to a successor Subscriber of Shares.

     

    11.           Indemnification.  Subscriber recognizes that the offer and sale of Series
A Preferred Stock to Subscriber will be based on the representations,
warranties, covenants and agreements made by Subscriber herein and on the
certifications made, and information furnished, by Subscriber in Appendix A attached
hereto.  Subscriber hereby agrees to indemnify and hold harmless the
Company and its directors, members, officers, employees, consultants,
representatives and agents against and from any and all causes of action,
charges, claims, damages, demands, liabilities, losses, obligations, penalties
and other recoveries and any and all related costs and expenses (including,
without limitation, reasonable attorneys’ fees) arising, directly or indirectly,
from:

    
      
         

      

      
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    (a)           any
material breach by Subscriber of the representations, warranties or covenants
made by Subscriber herein or in Appendix A attached
hereto;

     

    (b)           any
material omission of fact by Subscriber herein or in Appendix A attached
hereto; or

     

    (c)           any
resale or other distribution of Series A Preferred Stock by Subscriber in
violation of the Securities Act or any securities laws of any applicable state
or foreign jurisdiction.

     

    12.           Revocation.  Subscriber
acknowledges that upon delivery of this Subscription Agreement to the Company,
it may not cancel, terminate or revoke this Subscription Agreement or any
agreement of the Subscriber made hereunder and that this Subscription Agreement
shall survive the death or disability of the Subscriber (as applicable) and
shall be binding upon the Subscriber’s heirs, executors, administrators, legal
representatives, successors and assigns, as applicable.

     

    13.           Survival.  All
representations, certifications, warranties, understandings, covenants,
agreements and furnished information contained in this Subscription Agreement
(including, without limitation, the indemnification provisions hereof) and in
Appendix A attached hereto shall
survive the acceptance of this Subscription Agreement by the Company, the
issuance and delivery of the Shares to Subscriber and the liquidation,
dissolution or termination (as applicable) of Subscriber.

     

    14.           Governing
Law.  This Subscription Agreement shall be governed by,
construed under, and enforced in accordance with the laws of the State of Texas,
without regard to its conflict of laws rules.

     

    15.           Execution in
Counterparts.  This Subscription Agreement may be executed in
multiple counterparts each of which shall be deemed an original and all of which
shall constitute one instrument.

     

    16.           Further
Assurances.  In connection with this Subscription Agreement and
the transactions contemplated hereby, Subscriber shall execute and deliver any
additional documents and instruments and perform any additional acts that may be
necessary or appropriate to effectuate and perform the provisions of this
Subscription Agreement and those transactions.

     

    17.           Severability.  If any
provision of the Subscription Agreement is rendered or declared illegal or
unenforceable by reason of any existing or subsequently enacted legislation or
by decree of a court of last resort, the Company and Subscriber shall promptly
meet and negotiate substitute provisions for those rendered or declared illegal
or unenforceable and amend this Subscription Agreement accordingly, but all of
the remaining provisions of this Subscription Agreement shall remain in full
force and effect.

    
      
         

      

      
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    18.           Entire
Agreement.  This Subscription Agreement and the documents
referenced herein constitute the entire agreement among the parties with respect
to the subject matter hereof and supersede all prior agreements and
understandings, both written and oral, among the parties with respect to the
subject matter hereof.  Each party to this Agreement agrees that (a)
no other party to this Subscription Agreement (including their respective agents
and representatives) has made any representation, warranty, covenant or
agreement to or with such party relating to this Subscription Agreement, the
documents referenced herein, the Company or the Series A Preferred Stock offered
hereunder, other than those expressly set forth in the Subscription Agreement
and the documents referenced herein, and (b) such party has not relied upon any
representation, warranty, covenant or agreement relating to this Subscription
Agreement, the documents referenced herein, the Company or the Series A
Preferred Stock offered hereunder, other than those referred to in clause (a)
above.

     

    19.           Construction
and Captions.  Unless the context requires otherwise: (a) any
pronoun used in this Subscription Agreement shall include the corresponding
masculine, feminine or neuter forms, and the singular form of nouns, pronouns
and verbs shall include the plural and vice versa; and (b) the term “include” or
“includes” means includes, without limitation, and “including” means including,
without limitation.  The section headings appearing herein are
inserted for convenience of reference only and are not intended to be a part of
or to affect the meaning or interpretation of this Subscription
Agreement.

     

    [SIGNATURE
PAGE FOLLOWS]

    
      
         

      

      
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    EPIC
ENERGY RESOURCES, INC.

    SIGNATURE
PAGE

     

    IN
WITNESS WHEREOF, the undersigned has executed this signature page evidencing its
subscription to purchase the Shares in the Company, and has completed Appendix
A, attached hereto.

     

    
      
        
          
            
              
                	
                        Number
      of Shares subscribed:

                      	 
      
	 
      	 
      
	
                        ____________
      Series A Preferred Stock

                      	
                        Signature:

                      	 
      
	 
      	 
      	 
      
	 
      	
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      Name:

                      	 
      
	
                        Price
      Per Share:  $1.00

                      	 
      
	 
      	 
      
	
                        Total
      Price:  $_______________________

                      	 
      

              

            

          

        

      

    

    

    NOTE:  PLEASE
DO NOT DATE THIS AGREEMENT AS IT WILL BE DATED IF AND WHEN ACCEPTED BY THE
COMPANY.

    

    IN
WITNESS WHEREOF, the Company has agreed to and accepted this Subscription
Agreement subject to the terms and conditions hereof as of the day and year set
forth below.

     

    Date:   ___________________,
2010:

     

    
      
        
          	 
      	
                  EPIC
      ENERGY RESOURCES, INC.

                
	 
      	 
      
	 
      	
                  By:     

                	 
      
	 
      	
                  Name:

                
	 
      	
                  Title:

                

        

      

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Appendix
A

    

    CERTIFICATION
OF STATUS AS AN ACCREDITED INVESTOR

    

    Subscriber,
a party to the Subscription Agreement (the “Subscription
Agreement”) between Epic Energy Resources, Inc. (the “Company”) and
Subscriber, hereby certifies, pursuant to Section 6(e) of the Subscription
Agreement, as set forth below.  Terms not otherwise defined herein
shall have the meanings given to such terms in the Subscription
Agreement.

    

    Subscriber
is an “Accredited Investor,” as defined in Rule 501 of the Securities
Act.  Subscriber meets each of the following “Accredited Investor”
categories marked with an “X”:

    

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  	
                                          _____

                                        	
                                          i.

                                        	
                                          a
      bank as defined in Section 3(a)(2) of the Securities Act, or a savings and
      loan association or other institution as defined in Section 3(a)(5)(A) of
      the Securities Act, whether acting in its individual or fiduciary
      capacity;

                                        
	 	 	 
	
                                          _____

                                        	
                                          ii.

                                        	
                                          a
      broker or dealer registered pursuant to Section 15 of the Securities
      Exchange Act of 1934, as amended;

                                        
	 	 	 
	
                                          _____

                                        	
                                          iii.

                                        	
                                          an
      insurance company as defined in Section 2(13) of the Securities
      Act;

                                        
	 	 	 
	
                                          _____

                                        	
                                          iv.

                                        	
                                          an
      investment company registered under the Investment Company
      Act;

                                        
	 	 	 
	
                                          _____

                                        	
                                          v.

                                        	
                                          a
      business development company as defined in Section 2(a)(48) of the
      Investment Company Act;

                                        
	 	 	 
	
                                          _____

                                        	
                                          vi.

                                        	
                                          a
      Small Business Investment Company licensed by the U.S. Small Business
      Administration under Section 301(c) or (d) of the Small Business
      Investment Act of 1958, as amended;

                                        
	 	 	 
	
                                          _____

                                        	
                                          vii.

                                        	
                                          a
      plan established and maintained by a state, its political subdivisions, or
      any agency or instrumentality of a state or its political subdivisions,
      for the benefit of its employees, if such plan has total assets in excess
      of $5,000,000;

                                        
	 	 	 
	
                                          _____

                                        	
                                          viii.

                                        	
                                          an
      employee benefit plan within the meaning of Title I of the Employee
      Retirement Income Security Act of 1974, as amended (“ERISA”), if
      either

                                        
	 	 	 
	
                                          _____

                                        	 
      	
                                          (a)

                                        	
                                          the
      investment decision is made by a plan fiduciary, as defined in Section
      3(21) of ERISA, which is either a bank, savings and loan association,
      insurance company or registered investment adviser,

                                        
	 	 	 	 
	
                                          _____

                                        	 
      	
                                          (b)

                                        	
                                          the
      employee benefit plan has total assets in excess of $5,000,000,
      or

                                        
	 	 	 	 
	
                                          _____

                                        	 
      	
                                          (c)

                                        	
                                          the
      plan is a self-directed plan with investment decisions made solely by
      persons that are Accredited
Investors;

                                        

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

     

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              	
                                      _____

                                    	
                                      ix.

                                    	
                                      a
      private business development company as defined in Section 202(a)(22) of
      the Investment Advisers Act of 1940, as amended;

                                    
	 	 	 
	
                                      _____

                                    	
                                      x.

                                    	
                                      an
      organization described in Section 501(c)(3) of the Internal Revenue Code
      of 1986, as amended, corporation, Massachusetts or similar business trust,
      or partnership not formed for the specific purpose of making an investment
      in the Partnership, with total assets in excess of
    $5,000,000;

                                    
	 	 	 
	
                                      _____

                                    	
                                      xi.

                                    	
                                      a
      director, executive officer, or general partner of the issuer of the
      interests being offered or sold, or a director or executive officer of
      that issuer;

                                    
	 	 	 
	
                                      _____

                                    	
                                      xii.

                                    	
                                      a
      natural person whose individual net worth, or joint net worth with his or
      her spouse, at the time of his or her purchase exceeds
      $1,000,000;

                                    
	 	 	 
	
                                      _____

                                    	
                                      xiii.

                                    	
                                      a
      natural person who has an individual income in excess of $200,000 in each
      of the two most recent years or joint income1 with that person’s
      spouse in excess of $300,000 in each of those years and has a reasonable
      expectation of reaching the same income level in the current
      year;

                                    
	 	 	 
	
                                      _____

                                    	
                                      xiv.

                                    	
                                      a
      trust, with total assets in excess of $5,000,000, not formed for the
      specific purpose of making an investment in the Company whose purchase of
      the Shares offered is directed by a sophisticated person as described in
      Rule 506(b)(2)(ii) of Regulation D; or

                                    
	 	 	 
	
                                      _____

                                    	
                                      xv.

                                    	
                                      an
      entity in which all of the equity owners are Accredited
      Investors.

                                    

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

     

    
      

    
      1           For
purposes of this item, “joint income” means adjusted gross income as reported
for U.S. Federal income tax purposes, including any income attributable to a spouse or
to property owned by a spouse, increased by the following amounts (including any
amounts attributable to a spouse or to property owned by a
spouse):  (i) the amount of any interest income received which is
tax-exempt under Section 103 of the Code, (ii) the amount of losses claimed
as a limited partner in a limited partnership (as reported on Schedule E of
Form 1040), (iii) any deduction claimed for depletion under Section 611 et
seq. of the Code, and (iv) any amount by which income from long-term capital
gains has been reduced in arriving at adjusted gross income pursuant to the
provisions of Section 1202 of the Code prior to its repeal by the Tax
Reform Act of 1986.

    

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    Appendix
B

    [Transfer
Agent]

    [Address]

     

    Attention:

     

    SUBSCRIBER
’S CERTIFICATE OF SUBSEQUENT SALE

     

    The
undersigned, [an officer of, or other person duly authorized by]
________________________________________________ hereby certifies [fill in
official name of individual or institution] that he/she [said institution] is
the Subscriber of the shares evidenced by the attached certificate, and as such,
sold such shares on ___________________________in accordance with the terms of
the [date] Purchase Agreement and in accordance with Registration Statement
number ______________________________________________________ [fill in the
number of or otherwise identify Registration Statement] or otherwise in
accordance with the Securities Act of 1933, as amended, and, in the case of a
transfer pursuant to the Registration Statement, the requirement of delivering a
current prospectus by the Company has been complied with in connection with such
sale.

     

    Print or
Type:

     

    Name of
Subscriber

    (Individual
or

    Institution):
____________________________________

     

    Name of
Individual

    representing
Subscriber

    (if an
Institution) ____________________________________

     

    Title of
Individual

    representing
Subscriber

    (if an
Institution):

    Signature
by: ____________________________________

     

    Individual
Subscriber or

    Individual
representing

    Subscriber
: ____________________________________

    Purchase
Agreement

    
      
         

      

      
        4WAIVER
AND AMENDMENT TO DEBENTURE

     

    This
WAIVER AND AMENDMENT TO DEBENTURE dated as of April __, 2010 (this “Amendment”),
is among EPIC ENERGY RESOURCES, INC., a Colorado corporation (the “Company”),
and one or more of the holders of the Company’s 10% secured debentures due
December 5, 2012, and issued on December 5, 2007 (each a “Holder”
and, collectively, the “Holders”).

     

    RECITALS

     

    A.  Reference
is made to the Company’s 10% secured debentures due December 5, 2012 and issued
on December 5, 2007, as each such secured debenture has been amended,
supplemented or otherwise modified from time to time until the date hereof
(including, as applicable, pursuant to (i) that certain Amendment Agreement
dated as of February 26, 2009 among the Company and the parties thereto and (ii)
that certain Amendment Agreement dated as of December 1, 2009 (the “December 2009
Amendment”), among the Company and each of Whitebox Convertible Arbitrage
Partners, LP, and Midsummer Investment, Ltd. (together, the “December 2009
Amending Holders”)) (the “Debentures”).

     

    B.  The
Company intends to conduct a private placement of up to 5,000,000 shares of
Series A Convertible Preferred Stock to accredited investors, which is exempt
from registration under Section 4(2) of the Securities Act of 1933, as amended
and related exchange offers (the “March 2010
Offerings”).

     

    C.  The
Company has requested that the Holders amend the Debentures to defer all
regularly scheduled principal payments
otherwise scheduled to become due during the 2010 calendar year until the
Maturity Date and to waive certain Events of Default that now exist or may
result in connection with the Company’s failure to make any Quarterly Redemption
to any Holder that was due on or prior to the date hereof.

     

    D.  Each
Holder party hereto has executed and delivered this Amendment to evidence its
agreement to amend and waive the provisions of its respective Debenture(s), as
provided herein.

     

    NOW,
THEREFORE, for good and valuable consideration, the receipt and sufficiency of
which is hereby acknowledged, each of the Holders party hereby agrees as
follows:

     

    Section
1.             Definitions.  Defined
terms not otherwise defined herein shall have the meanings set forth in that
certain securities purchase agreement dated December 5, 2007 among the Company,
the Holders and the other investors signatory thereto (the “Purchase
Agreement”).

     

    Section
2.             Amendment to the
Debentures.  The Company and each Holder party hereto
(severally and not jointly) hereby amends its respective Debenture(s) as
follows:

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    (a)          The
definition of “Quarterly
Redemption Date” in Section 1 of each such Debenture is hereby amended
and restated to provide as follows:

     

    ““Quarterly Redemption Date”
means each December 1, March 1, June 1 and September 1, commencing on December
1, 2008, but expressly excluding any such date occurring during the 2010
calendar year, and terminating upon the full redemption of this
Debenture.”

     

    Section
3.             Each
of the December 2009 Amending Holders (severally and not jointly) hereby amends
Section 2(a) of its respective Debenture(s) (as amended and restated pursuant to
the foregoing Section 2(a) of the Amendment) by amending and restating such
section to provide as follows:

     

    “(a)       Payment of Interest
in Cash.  The
Company shall pay interest to the Holder on the aggregate unredeemed and then
outstanding principal amount of this Debenture at the rate of 10% per annum,
payable quarterly on January 1, April 1, July 1 and October 1, beginning on the
first such date after the Original Issue Date, on each Quarterly Redemption Date
(as to that principal amount then being redeemed), and on the Maturity Date
(each such date, an “Interest
Payment Date”) (if any Interest Payment Date is not a Business Day, then
the applicable payment shall be due on the next succeeding Business Day), in
cash; provided that, notwithstanding the forgoing, the Company shall pay
interest to the Holder on the aggregate unredeemed and then outstanding
principal amount of this Debenture at the rate of 12% per annum for the period
from December 1, 2009 until April 9, 2010.”

     

    Section
4.             Waiver of all Holders Party
Hereto.  Each Holder severally and not jointly hereby waives
the following Events of Default that have occurred (whether or not continuing as
of the effectiveness of this Amendment) under any Debenture (whether such
Debenture is held by a Holder party hereto or another Holder) as a result of the
Company’s actions with regards to the following:

     

    (a)         any
Event of Default arising pursuant to Section 8(a)(i) of the respective
Debentures arising out of or attributable to the Company not paying any amount
of principal, interest, liquidated damages or other amounts owing under any
Debenture due on or prior to the date hereof pursuant to Section 2(a) of the
Debenture;

     

    (b)         any
Event of Default arising pursuant to Section 8(a)(iii) of the respective
Debentures arising out of or attributable to any breach of Section 4.21 of the
Purchase Agreement as a result of the Company’s increase of the individual cash
salaries of the chief executive officer and the chief financial officer beyond
2008 levels in October, 2009; and

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    (c)         any
Event of Default arising pursuant to Section 8(a)(iii) of the respective
Debentures arising out of or attributable to any breach of Section 4.19(c) of
the Purchase Agreement as a result of the Company’s failure to achieve, on a
consolidated basis, EBITDA (as defined in the Purchase Agreement) of at least
$1,000,000 for the three month period ended March 31, 2010; and

     

    (d)         any
Event of Default arising pursuant to Section 8(a)(iii) of the respective
Debentures arising out of or attributable to any breach of Section 4.19(d) or
(e) of the Purchase Agreement as a result of the Company’s failure to issue any
report to the Agent.

     

    Except as expressly set forth herein,
nothing contained in this Amendment shall be construed to waive, limit, impair
or otherwise affect any rights of a Holder in respect of any “Event of Default”
(as defined in the Debentures).

     

    Section
5.             Waiver of December 2009
Amending Holders. In addition to all other agreements contained in this
Amendment, by executing this Amendment each December 2009 Amending Holder,
severally and not jointly, agrees to waive the requirement that the Company pay
the Quarterly Redemption Amount that was originally due on December 1, 2009 and,
pursuant to December 2009 Amendment, was amended to be due on December 1, 2010,
until the Maturity Date; provided, however, that the
Company shall be permitted to pay such Quarterly Redemption Amount, in cash, at
any time on or after the date hereof.

     

    Section
6.             Consideration.  As
consideration for the approval of this Amendment, the Company shall issue to
Midsummer Investments, Ltd. if a signatory to this Amendment within 10 business
days after the closing of the March 2010 Offerings  147,094 shares
(the “Preferred
Shares”) of Series A Convertible Peferred Stock (“Series A
Preferred Stock”) and to each other Holder signatory to this Amendment
within 10 business days after the closing of the March 2010 Offerings shares of
common stock, no par value, in the Company (“Common
Stock”) equal to the percentage that the principal amount outstanding
under its respective Debenture at such time bears to the aggregate principal
amount outstanding under all Debentures held by Holders party hereto multiplied
by 3,940,678 shares of Common Stock (the  “Common
Shares,” and, together with the Preferred Shares, the “Shares
”).

     

    Section
7.             Representations and
Warranties of the Holders.  Each Holder party hereto hereby
makes to the Company the following representations and warranties:

     

    (a)         
Holder is an “accredited investor,” as defined in Rule 501 under the Securities
Act of 1933, as amended (the “Securities
Act”).

     

    (b)          Holder
understands and agrees to the following transfer restrictions on the Shares held
by such Holder:

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    (1)           The
Shares and the shares of Common Stock underlying the Preferred Shares may only
be disposed of in compliance with state and federal securities laws. In
connection with any transfer of Shares or the shares of Common Stock underlying
the Preferred Shares other than pursuant to an effective registration statement
or Rule 144, to the Company or to an Affiliate of a Holder or in connection with
a pledge as contemplated in Section 7(b)(3), the Company may require the
transferor thereof to provide to the Company an opinion of counsel selected by
the transferor and reasonably acceptable to the Company, the form and substance
of which opinion shall be reasonably satisfactory to the Company, to the effect
that such transfer does not require registration of such transferred Shares or
the shares of Common Stock underlying the Preferred Shares under the Securities
Act. As a condition of transfer, any such transferee shall agree in writing to
be bound by the terms of this Amendment and shall have the rights of a Holder
under this Amendment and the registration rights agreement, dated the date
hereof, among the Company and the Holders and other signatories thereto (“Registration
Rights Agreement”). For purposes of this Amendment, “Affiliate”
(and, with a correlative meaning, “affiliated”)
means, with respect to any Person, any direct or indirect subsidiary of such
Person, and any other Person that directly, or through one or more
intermediaries, Controls or is Controlled by or is under common Control with
such first Person.  As used in this definition, “Control”
(and, with correlative meanings, “Controlled
by” and “under common
Control with”) means the possession, directly or indirectly, of the power
to direct the management or policies of a Person (whether through ownership of
securities or partnership or other ownership interests, by contract or
otherwise) and shall be construed as such term is used in the rules promulgated
under the Securities Act.

     

    (2)           The
Holder agrees to the imprinting, so long as is required by this Section 7(b), of
a legend on any of the Shares and the shares of Common Stock underlying the
Preferred Shares in the following form:

     

    THE
SHARES EVIDENCED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”) OR THE SECURITIES LAWS
OF ANY STATE OR OTHER JURISDICTION.  THE SHARES MAY NOT BE OFFERED,
SOLD, PLEDGED, OR OTHERWISE TRANSFERRED EXCEPT (1) PURSUANT TO AN EXEMPTION FROM
REGISTRATION UNDER THE SECURITIES ACT, OR (2) PURSUANT TO AN EFFECTIVE
REGISTRATION STATEMENT UNDER THE SECURITIES ACT, IN EACH CASE IN ACCORDANCE WITH
ALL APPLICABLE STATE SECURITIES LAWS AND THE SECURITIES LAWS OF OTHER
JURISDICTIONS, AND IN THE CASE OF A TRANSACTION EXEMPT FROM REGISTRATION, UNLESS
THE COMPANY HAS RECEIVED AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO IT
THAT SUCH TRANSACTION DOES NOT REQUIRE REGISTRATION UNDER THE SECURITIES ACT AND
SUCH OTHER APPLICABLE LAWS.

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    (3)           The
Company acknowledges and agrees that Holder may from time to time pledge
pursuant to a bona fide margin agreement with a registered broker-dealer or
grant a security interest in some or all of the Shares and the shares of Common
Stock underlying the Preferred Shares to a financial institution that is an
“accredited investor” as defined in Rule 501 under the Securities Act and who
agrees to be bound by the provisions of this Amendment and, in the case of the
Common Stock, the Registration Rights Agreement and, if required under the terms
of such arrangement, such Holder may transfer pledged or secured Shares or
shares of Common Stock underlying the Preferred Shares to the pledgees or
secured parties. Such a pledge or transfer would not be subject to approval of
the Company and no legal opinion of legal counsel of the pledgee, secured party
or pledgor shall be required in connection therewith. Further, no notice shall
be required of such pledge. At the Holder’s expense, the Company will execute
and deliver such reasonable documentation as a pledgee or secured party of
Shares may reasonably request in connection with a pledge or transfer of the
Shares, including, if the Shares and the Common Stock underlying the Preferred
Shares are subject to registration pursuant to the Registration Rights
Agreement, the preparation and filing of any required prospectus supplement
under Rule424(b)(3) under the Securities Act or other applicable provision of
the Securities Act to appropriately amend the list of selling stockholders
thereunder.

     

    (4)           Certificates
evidencing Common Shares and the shares of Common Stock underlying the Preferred
Shares shall not contain any legend (including the legend set forth in Section
7(b)(2) hereof): (i) while a registration statement covering the resale of such
security is effective under the Securities Act, or (ii) following any sale of
such Common Shares and shares of Common Stock underlying the Preferred Shares
pursuant to Rule 144, or (iii) if such Common Shares and shares of Common Stock
underlying the Preferred Shares are eligible for sale pursuant to Rule 144, or
(iv) if such legend is not required under applicable requirements of the
Securities Act (including judicial interpretations and pronouncements issued by
the staff of the Commission).  The Company shall cause its counsel to
issue a legal opinion to the Transfer Agent promptly after the effective date of
a registration statement if required by the Transfer Agent to effect the removal
of the legend hereunder.  The Company agrees that following the
effective date of a registration statement or at such time as such legend is no
longer required under this Section 7(b), it will, no later than three Trading
Days following the delivery by Holder to the Company or the Transfer Agent of a
certificate representing Common Shares and shares of Common Stock underlying the
Preferred Shares (such third Trading Day, the “Legend Removal
Date”), as applicable, issued with a restrictive legend,
deliver  or cause to be delivered to Holder a certificate representing
such Common Shares and shares of Common Stock underlying the Preferred Shares
that is free from all restrictive and other legends. The Company may not make
any notation on its records or give instructions to the Transfer Agent that
enlarge the restrictions on transfer set forth in this Section
7(b).  Certificates for Common Shares and shares of Common Stock
underlying the Preferred Shares subject to legend removal hereunder shall be
transmitted by the Transfer Agent to Holder by crediting the account of the
Holder’s prime broker with the Depository Trust Corporation System as directed
by Holder.

     

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    (5)           In
addition to such Holder’s other available remedies, the Company shall pay to a
Holder, in cash, as partial liquidated damages and not as a penalty, for each
$1,000 of Common Shares (based on the VWAP of the Common Stock on the date such
Common Shares are submitted to the Transfer Agent) delivered for removal of the
restrictive legend and subject to Section 7(b), $10 per Trading Day (increasing
to $20 per Trading Day 5 Trading Days after such damages have begun to accrue)
for each Trading Day after the Legend Removal Date until such certificate is
delivered without a legend.  Nothing herein shall limit such Holder’s
right to pursue actual damages for the Company’s failure to deliver certificates
representing any Securities as required by the Transaction Documents, and such
Holder shall have the right to pursue all remedies available to it at law or in
equity including, without limitation, a decree of specific performance and/or
injunctive relief.

     

    (6)           Holder
agrees that Holder will sell any Shares or shares of Common Stock underlying the
Preferred Shares pursuant to either the registration requirements of the
Securities Act, including any applicable prospectus delivery requirements, or an
exemption therefrom, and that if Common Shares or shares of Common Stock
underlying the Preferred Shares are sold pursuant to a registration statement,
they will be sold in compliance with the plan of distribution set forth therein,
and acknowledges that the removal of the restrictive legend from certificates
representing Shares and shares of Common Stock underlying the Preferred Shares
as set forth in this Section 7(b) is predicated upon the Company’s reliance upon
this understanding.

     

    (c)           Holder
acknowledges and agrees that it has received material nonpublic information in
connection with the transactions contemplated by this Amendment and that it will
not sell or otherwise dispose of any of the Shares and it will keep all such
information confidential unless and until such material nonpublic information
has been publicly disclosed or no longer constitutes material nonpublic
information in accordance with Section 7(c).

     

    (d)           The
Company shall, within 4 Trading Day (as defined below) of the date hereof, issue
a Current Report on Form 8-K disclosing the material terms of the transactions
contemplated by this Amendment, and shall attach this Amendment and all other
related agreements thereto (the “8-K
Filing”).  From and after the filing of the 8-K Filing with the
United Stated Securities Exchange Commission, the Holder shall not be in
possession of any material, nonpublic information received from the Company, any
of its subsidiaries or any of their respective officers, directors, employees or
agents, that is not disclosed in the 8-K Filing.  The Company shall
consult with the Holders in issuing any other press releases with respect to the
transactions contemplated by this Amendment. Trading Day shall mean a day on
which the principal Trading Market is open for trading.  Trading
Market shall mean any of the following markets or exchanges on which the Common
Stock is listed or quoted for trading on the date in question: the NYSE AMEX,
the Nasdaq Capital Market, the Nasdaq Global Market, the Nasdaq Global Select
Market, the New York Stock Exchange or the OTC Bulletin Board (or any successors
to any of the foregoing).

    (e)           Holder
understands that the Shares are issued to it in reliance upon specific
exemptions from the registration requirements of the Securities Act and state
securities laws, and that the Company is relying upon the truth and accuracy of,
and the Holder’s compliance with, the representations, warranties, agreements,
acknowledgements and understandings of the Holder set forth herein, in order to
determine the availability of such exemptions and the eligibility of the Holder
to acquire the Shares.

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    (f)           Holder
confirms that, in making Holder’s decision to acquire the Shares hereby
subscribed for, Holder has relied solely upon independent investigations made by
Holder or Holder’s representative(s), including Holder’s own professional tax
and other advisers and that Holder and such representatives have had access to
and an opportunity to inspect all relevant information relating to the Company
(including all documents referenced herein) sufficient to enable Holder to
evaluate the merits and risks of Holder’s acquisition of the Shares
hereunder.

     

    (g)           Holder
has had the opportunity to ask questions of officers of the Company and has
received satisfactory answers respecting, and has obtained such additional
information as Holder has desired regarding the business, financial condition
and affairs of the Company.  Holder acknowledges and represents that
it has received and reviewed the Company’s confidential private placement
memorandum dated as of March 13, 2010, as supplemented on Apirl 8, 2010
..

     

    (h)           Holder
is not acquiring the Shares with a view to realizing any benefits under the
United States federal income tax laws with respect to Holder’s share of any
losses or expenses of the Company, and no representations have been made to
Holder that any such benefits will be available as a result of Holder’s
acquisition, ownership or disposition of the Shares.

     

    (i)           Holder
understands that the Shares are “restricted securities” and have not been
registered under the Securities Act or any applicable state securities law and
is acquiring the Shares as principal for its own account and not with a view to
or for distributing or reselling such securities or any part thereof in
violation of the Securities Act or any applicable state securities law, has no
present intention of distributing any of such securities in violation of the
Securities Act or any applicable state securities law and has no direct or
indirect arrangement or understandings with any other persons to distribute or
regarding the distribution of such securities (this representation and warranty
not limiting such Holder’s right to sell such securities pursuant to a
registration statement or otherwise in compliance with applicable federal and
state securities laws) in violation of the Securities Act or any applicable
state securities law.  Such Holder is acquiring the securities
hereunder in the ordinary course of its business.

     

    (j)           Such
Holder, either alone or together with its representatives, has such knowledge,
sophistication and experience in business and financial matters so as to be
capable of evaluating the merits and risks of the prospective investment in the
Shares, and has so evaluated the merits and risks of such
investment.

     

    (k)           Holder
was not contacted by the Company or its representatives for the purpose of
investing in any securities of the Company offered hereby through any
advertisement, article, mass mailing, cold call, notice or any other
communication published in any newspaper, magazine, or similar media or
broadcast over television or radio, or any seminar or meeting whose attendees
were invited by any general advertising.

     

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

    

     

    (l)           Except
as expressly set forth herein, each Holder, to its knowledge without independent
investigation, acknowledges there are no “Events of Default” (as defined in the
Debentures) under its Debentures that currently exist as of the date of that
Holder’s execution of this Amendment.

     

    Section
8.             Representations and
Warranties of the Company.  The Company hereby makes to the
Holders party hereto the following representations and warranties:

     

    (a)           Authorization;
Enforcement.  The Company has the requisite corporate power and
authority to enter into and to consummate the transactions contemplated by this
Amendment and otherwise to carry out its obligations hereunder and thereunder.
The execution and delivery of this Amendment by the Company and the consummation
by it of the transactions contemplated by this Amendment have been duly
authorized by all necessary action on the part of the Company and no further
action is required by the Company, its board of directors or its stockholders in
connection therewith. This Amendment has been duly executed by the Company and,
when delivered in accordance with the terms hereof, will constitute the valid
and binding obligation of the Company enforceable against the Company in
accordance with its terms except: (i) as limited by general equitable principles
and applicable bankruptcy, insolvency, reorganization, moratorium and other laws
of general application affecting enforcement of creditors’ rights generally,
(ii) as limited by laws relating to the availability of specific performance,
injunctive relief or other equitable remedies, and (iii) insofar as
indemnification and contribution provisions may be limited by applicable
law.

     

    (b)           No
Conflicts.  The execution, delivery and performance of this
Amendment by the Company and the consummation by the Company of the transactions
contemplated by this Amendment do not and will not: (i) conflict with or violate
any provision of the Company’s or any Subsidiary’s certificate or articles of
incorporation, bylaws or other organizational or charter documents, or (ii)
conflict with, or constitute a default (or an event that with notice or lapse of
time or both would become a default) under, result in the creation of any Lien
upon any of the properties or assets of the Company or any Subsidiary, or give
to others any rights of termination, amendment, acceleration or cancellation
(with or without notice, lapse of time or both) of, any material agreement,
credit facility, debt or other material instrument (evidencing a Company or
Subsidiary debt or otherwise) or other material understanding to which the
Company or any Subsidiary is a party or by which any property or asset of the
Company or any Subsidiary is bound or affected, or (iii) conflict with or result
in a violation of any law, rule, regulation, order, judgment, injunction, decree
or other restriction of any court or governmental authority to which the Company
or a Subsidiary is subject (including federal and state securities laws and
regulations), or by which any property or asset of the Company or a Subsidiary
is bound or affected; except in the case of each of clauses (ii) and (iii), such
as could not have or reasonably be expected to result in a Material Adverse
Effect.

     

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

    (c)           Equal
Consideration.  Except as provided in Section 6 hereof, no
consideration has been paid to any person to amend or consent to a waiver,
modification, forbearance or otherwise of any provision of any of the
Transaction Documents pursuant to this Amendment.

     

    (d)           Survival; Bring
Down.  All of the Company’s warranties and representations
contained in this Amendment shall survive the execution, delivery and acceptance
of this Amendment by the parties hereto.

     

    (e)           No
Defaults.  Following the execution and delivery of this
Amendment by the parties hereto, no Event of Default (as defined in the
Debentures) has occurred and is continuing as of the date hereof.

     

    (f)           Issuance of the
Securities.  The Shares are duly authorized and, when issued in
accordance with the applicable Transaction Documents, will be duly and validly
issued, fully paid and nonassessable, free and clear of all Liens imposed by the
Company other than restrictions on transfer provided for in the Transaction
Documents.

     

    (g)           Capitalization.  The
capitalization of the Company is as set forth on Schedule 8(g), which Schedule
8(g) shall also include the number of shares of Common Stock owned beneficially,
and of record, by Affiliates of the Company as of April 5, 2010.  The
Company has not issued any capital stock since its most recently filed periodic
report under the Securities Exchange Act of 1934, as amended (“Exchange Act”), other than
pursuant to the exercise of employee stock options under the Company’s stock
option plans, the issuance of shares of Common Stock to employees pursuant to
the Company’s employee stock purchase plans and pursuant to the conversion
and/or exercise of Common Stock Equivalents outstanding as of the date of the
most recently filed periodic report under the Exchange Act.  The
issuance of securities hereunder will not obligate the Company to issue shares
of Common Stock or other securities to any Person (other than the Holders) and
will not result in a right of any holder of Company securities to adjust the
exercise, conversion, exchange or reset price under any of such
securities.  All of the outstanding shares of capital stock of the
Company are validly issued, fully paid and nonassessable, have been issued in
compliance with all federal and state securities laws, and none of such
outstanding shares was issued in violation of any preemptive rights or similar
rights to subscribe for or purchase securities.  There are no
stockholders agreements, voting agreements or other similar agreements with
respect to the Company’s capital stock to which the Company is a party or, to
the knowledge of the Company, between or among any of the Company’s
stockholders.

     

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

    Section
9.         
    Miscellaneous.

     

    (a)      
   Mechanics of Conversion of
Exchange Securities.

     

    (1)           The
date of receipt of a Holder’s certificates representing Preferred Shares,
together with a notice by the Holder of its election of conversion, by the
Transfer Agent or the Company will be the date of conversion (the “Conversion
Date”).  Not later than three (3) Trading Days after each
Conversion Date (the “Share Delivery
Date”), the Company shall deliver, or cause to be delivered, to the
converting Holder a certificate or certificates representing the number of
shares of Common Stock to which such Holder is entitled, which shall be free of
restrictive legends and trading restrictions (other than those which may then be
required by the agreement pursuant to which the Holder acquired the Preferred
Shares).  The Company shall use its best efforts to deliver any
certificate or certificates required to be delivered by the Company under this
Section 9(a) electronically through the Depository Trust Corporation or another
established clearing Corporation performing similar functions.

     

    (2)           If
such certificate or certificates are not delivered to or as directed by the
applicable Holder by the Share Delivery Date, the Holder shall be entitled to
elect by written notice to the Company at any time on or before its receipt of
such certificate or certificates to rescind such conversion, in which event the
Company shall promptly return to the Holder any original Preferred Share
certificate delivered to the Company.  If such Holder receives Common
Stock certificates because such certificates were mailed to the Holder before
the Company received notice of the Holder’s rescission, the Holder shall
promptly return to the Company the Common Stock certificates.

     

    (3)           Subject
to amending the Company’s Articles of Incorporation to increase the number of
authorized shares of Common Stock, the Company’s obligation to issue and deliver
the Common Stock upon conversion of Preferred Shares in accordance with the
terms hereof are absolute and unconditional, irrespective of any action or
inaction by a Holder to enforce the same, any waiver or consent with respect to
any provision hereof, the recovery of any judgment against any person or any
action to enforce the same, or any setoff, counterclaim, recoupment, limitation
or termination, or any breach or alleged breach by such Holder or any other
person of any obligation to the Company or any violation or alleged violation of
law by such Holder or any other person, and irrespective of any other
circumstance which might otherwise limit such obligation of the Company to such
Holder in connection with the issuance of such Common Stock; provided, however,
that such delivery shall not operate as a waiver by the Company of any such
action that the Company may have against such Holder.  In the event a
Holder shall elect to convert any or all of its Preferred Shares, the Company
may not refuse conversion based on any claim that such Holder or any one
associated or affiliated with such Holder has been engaged in any violation of
law, agreement or for any other reason, unless an injunction from a court, on
notice to Holder, restraining and/or enjoining conversion of all or part of the
Preferred Shares of such Holder shall have been sought and obtained, and the
Company posts a surety bond for the benefit of such Holder in the amount of
$1.00 per Preferred Share that is subject to the injunction, which bond shall
remain in effect until the completion of arbitration/litigation of the
underlying dispute and the proceeds of which shall be payable to such Holder to
the extent it obtains judgment.  In the absence of such injunction,
the Company shall issue Common Stock and, if applicable, cash, upon a properly
noticed conversion. If the Company fails to deliver to a Holder such certificate
or certificates pursuant to Section 9(a)(3) on the second Trading Day after the
Share Delivery Date applicable to such conversion, the Company shall pay to such
Holder, in cash, as liquidated damages and not as a penalty, for each $5,000 of
Stated Value of the Preferred Shares being converted (“Stated Value” meaning
$1 per Preferred Share), $50 per Trading Day (increasing to $100 per Trading Day
on the third Trading Day and increasing to $200 per Trading Day on the sixth
Trading Day after such damages begin to accrue) for each Trading Day after such
second Trading Day after the Share Delivery Date until such certificates are
delivered or Holder rescinds such conversion.  Nothing herein shall
limit a Holder’s right to pursue actual damages for the Company’s failure to
deliver Common Stock within the period specified herein and such Holder shall
have the right to pursue all remedies available to it hereunder, at law or in
equity including, without limitation, a decree of specific performance and/or
injunctive relief.  The exercise of any such rights shall not prohibit
a Holder from seeking to enforce damages pursuant to any other Section hereof or
under applicable law.

     

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

     

    (4)           In
addition to any other rights available to the Holder, if the Company fails for
any reason to deliver to a Holder the applicable certificate or certificates by
the Share Delivery Date pursuant to Section 9(a)(2), and if after such Share
Delivery Date such Holder is required by its brokerage firm to purchase (in an
open market transaction or otherwise), or the Holder’s brokerage firm otherwise
purchases, shares of Common Stock to deliver in satisfaction of a sale by such
Holder of the Common Stock which such Holder was entitled to receive upon the
conversion relating to such Share Delivery Date (a “Buy-In”), then the
Company shall (A) pay in cash to such Holder (in addition to any other remedies
available to or elected by such Holder) the amount, if any, by which (x) such
Holder’s total purchase price (including any brokerage commissions) for the
Common Stock so purchased exceeds (y) the product of (1) the aggregate number of
shares of Common Stock that such Holder was entitled to receive from the
conversion at issue multiplied by (2) the actual sale price at which the sell
order giving rise to such purchase obligation was executed (including any
brokerage commissions) and (B) at the option of such Holder, either reissue
Preferred Shares equal to the number of Preferred Share submitted for conversion
(in which case, such conversion shall be deemed rescinded) or deliver to such
Holder the number of shares of Common Stock that would have been issued if the
Company had timely complied with its delivery requirements under Section
9(a)(2). For example, if a Holder purchases shares of Common Stock having a
total purchase price of $11,000 to cover a Buy-In with respect to an attempted
conversion of Preferred Share with respect to which the actual sale price of the
Common Stock (including any brokerage commissions) giving rise to such purchase
obligation was a total of $10,000 under clause (A) of the immediately preceding
sentence, the Company shall be required to pay such Holder $1,000. The Holder
shall provide the Company written notice indicating the amounts payable to such
Holder in respect of the Buy-In and, upon request of the Company, evidence of
the amount of such loss. Nothing herein shall limit a Holder’s right to pursue
any other remedies available to it hereunder, at law or in equity including,
without limitation, a decree of specific performance and/or injunctive relief
with respect to the Company’s failure to timely deliver certificates
representing shares of Common Stock upon conversion of the Preferred Share as
required pursuant to the terms hereof.

     

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

    (b)           All
questions concerning the construction, validity, enforcement and interpretation
of this Amendment shall be governed by and construed and enforced in accordance
with the internal laws of the State of New York, without regard to the
principles of conflicts of law thereof. Each party agrees that all legal
proceedings concerning the interpretations, enforcement and defense of the
transactions contemplated by this Amendment and (whether brought against a party
hereto or its respective Affiliates, directors, officers, shareholders,
employees or agents) shall be commenced exclusively in the state and federal
courts sitting in the City of New York. Each party hereby irrevocably submits to
the exclusive jurisdiction of the state and federal courts sitting in the City
of New York, borough of Manhattan for the adjudication of any dispute hereunder
or in connection herewith or with any transaction contemplated hereby or
discussed herein, and hereby irrevocably waives, and agrees not to assert in any
suit, action or proceeding, any claim that it is not personally subject to the
jurisdiction of any such court, that such suit, action or proceeding is improper
or is an inconvenient venue for such proceeding. Each party hereby irrevocably
waives personal service of process and consents to process being served in any
such suit, action or proceeding by mailing a copy thereof via registered or
certified mail or overnight delivery (with evidence of delivery) to such party
at the address in effect for notices to it under this Amendment and agrees that
such service shall constitute good and sufficient service of process and notice
thereof. Nothing contained herein shall be deemed to limit in any way any right
to serve process in any other manner permitted by law. If either party shall
commence an action or proceeding to enforce any provisions of this Amendment,
then the prevailing party in such action or proceeding shall be reimbursed by
the other party for its reasonable attorneys' fees and other costs and expenses
incurred with the investigation, preparation and prosecution of such action or
proceeding.

     

    (c)           The
waivers and amendments set forth herein shall not be effective unless and until
(i) the Holders of at least 90% of the current aggregate principal amount
outstanding under the Debentures shall have agreed to the terms and conditions
hereunder and executed and delivered their signature page hereto to the Company
and (ii) all conditions precedent to the effectiveness of this Amendment shall
have been satisfied.  all conditions precedent to the effectiveness of
this Amendment shall have been satisfied.  The respective obligations,
amendments, agreements and waivers of the Holders hereunder are subject to the
following conditions being met: (a) the accuracy in all material respects of the
representations and warranties of the Company contained herein and (b) the
performance by the Company of all if its obligations, covenants and agreements
required to be performed hereunder.    In addition, the
respective obligations, amendments, agreements and waivers of the Holders
hereunder shall be null and void in the event the March 2010 Offering is not
consummated on or before April 9, 2010, with gross cash proceeds of $3,5000,000
or more.

     

    (d)           The
Company shall file a proxy statement or information statement (if eligible) with
the Commission on or before the 20th Trading
Day following the date hereof, seeking shareholder approval to increase its
authorized Common Stock to at least 300,000,000 shares, and shall use its
reasonable efforts to amend the Company’s certificate or articles of
incorporation to increase the number of authorized but unissued shares of Common
Stock to at least 300,000,000 as soon as possible following the date
hereof.

     

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

    (e)           The
respective obligations, amendments, agreements and waivers hereunder of the
Holders party hereto are subject to the accuracy in all material respects of the
representations and warranties of the Company contained herein.

     

    (f)           Except
as expressly set forth above, all of the terms and conditions of the Debentures
shall continue in full force and effect after the execution of this Amendment
and shall not be in any way changed, modified or superseded by the terms set
forth herein.  From and after the 8-K Filing, the Company shall have
publicly disclosed all material, non-public information delivered to any of the
Holders by the Company or any of its subsidiaries, or any of their respective
officers, directors, employees or agents.  The parties agree that each
of them and/or their respective counsel has reviewed and had an opportunity to
revise this Amendment and, therefore, any rule of construction to the effect
that any ambiguities are to be resolved against the drafting party shall not be
employed in the interpretation of this Amendment or any amendments
hereto.

     

    (g)           This
Amendment may be executed in two or more counterparts and by facsimile signature
or otherwise, and each of such counterparts shall be deemed an original and all
of such counterparts together shall constitute one and the same
agreement.  The Company hereby agrees that it will reimburse Midsummer
Investment, Ltd., up to $7,500 for its legal fees and expenses upon its
execution of this Amendment.  Except as set forth in this section,
each party shall pay the fees and expenses of its advisers, counsel, accountants
and other experts, if any, and all other expenses incurred by such party
incident to the negotiation, preparation, execution, delivery and performance of
this Amendment.

     

    (h)           The
obligations of each Holder under this Amendment and any Transaction Document are
several and not joint with the obligations of any other Holder, and no Holder
shall be responsible in any way for the performance or non-performance of the
obligations of any other Holder under this Amendment or any Transaction
Document. Nothing contained herein or in any Transaction Document, and no action
taken by any Holder pursuant thereto, shall be deemed to constitute the Holders
as a partnership, an association, a joint venture or any other kind of entity,
or create a presumption that the Holders are in any way acting in concert or as
a group with respect to such obligations or the transactions contemplated by
this Amendment or the Transaction Documents. Each Holder shall be entitled to
independently protect and enforce its rights, including without limitation, the
rights arising out of this Amendment or out of the other Transaction Documents,
and it shall not be necessary for any other Holder to be joined as an additional
party in any proceeding for such purpose. Each Holder has been represented by
its own separate legal counsel in their review and negotiation of this Amendment
and the Transaction Documents.

     

    [Signature
pages follow.]

    
      
         

      

      
        13

        
          

        

      

      
         

      

    

    IN
WITNESS WHEREOF, the undersigned parties hereto have caused this Waiver and
Amendment to Debenture to be duly executed by their respective authorized
officers as of the day and year first above written.

     

    
      
        
          
            	 
      	
                    EPIC ENERGY RESOURCES,
  INC.,

                  
	 
      	
                    as
      the Company

                  
	 
      	 
      
	 
      	
                    By:

                  	 
      
	 
      	
                    Name:

                  
	 
      	
                    Title:

                  

          

        

      

    

     

    
      
         

      

      
        S
-1

        
          

        

      

      
         

      

    

     

    
      
        
          
            
              	 
      	
                      HOLDERS

                    
	 
      	 
      
	 
      	 
      
	 
      	 
      
	 
      	
                      By:

                    	 
      
	 
      	
                      Name:

                    
	 
      	
                      Title:

                    

            

          

        

      

    

     

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    Schedule
8(g)

    

    The
following table sets forth our capitalization as of  April 5, 2010 on
an actual basis.

     

    
      
        
          
            	
                    Cash

                  	 	$	153	 
	 
      	 	 	 	 
	
                    Debentures

                  	 	 	14,922	 
	
                    Note
      Payable Secured by Assets Acquired

                  	 	 	1.343	 
	
                    Note
      Payable – EIS Acquisition

                  	 	 	1,070	 
	
                    Other
      Liabilities

                  	 	 	7,568	 
	
                            Total
      Debt

                  	 	$	24,903	 
	 
      	 	 	 	 
	
                    Stockholders’
      equity

                  	 	 	 	 
	
                    Series
      A Preferred Stock

                  	 	$	-	 
	
                    Common
      Stock, no par value, authorized 100,000,000 shares; outstanding
      45,413,7811,
      net of treasury stock

                  	 	 	33,639	 
	
                    Warrants

                  	 	 	-	 
	
                    Additional
      paid-in capital

                  	 	 	1,924	 
	
                    Accumulated
      deficit

                  	 	 	(31,778	)
	
                    Accumulated
      other comprehensive loss

                  	 	 	-	 
	
                    Treasury
      stock, at cost, no shares

                  	 	 	-	 
	
                    Total
      stockholders’ equity

                  	 	 	3,785	 
	 
      	 	 	 	 
	
                    Total
      Capitalization

                  	 	$	28,688	 

          

        

      

    

    

    
      
        

      

    

    
      1 Of
which, Affiliates of the Company own 77.5%.

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