Document:

galicposam32017ex4c7

E1823017NW 1     Home Office:  Cincinnati, Ohio Administrative Office:  [P.O. Box 5423, Cincinnati, OH 45201-5423]   iSHARES U.S. REAL ESTATE GROWTH INDEXED STRATEGY Crediting Strategy Endorsement Index Gain Subject to a Maximum Gain for the Term Index Loss Subject to 10% Maximum Loss for the Term Bailout Feature  Gain or Loss Each day, the value of the Strategy includes the Vested Gain or Loss for the Term.  Vested Gain or Loss is calculated on and added to the remaining investment base for the current Term.  For this purpose, the investment base starts with the amount applied to that Strategy at the start of the current Term.  It is then reduced to pay for each withdrawal or charge that taken from the Strategy during the current Term.  Index Change For this Strategy, Index Change is the increase or decrease in the price of the iShares U.S. Real Estate ETF since the start of the Term.  This increase or decrease is expressed as a percentage of the Index Value at the start of the Term.  It is measured from the Index Value at the start of the Term to the Index Value at the last Market Close on or before the date that the Index Change is determined.    Index Value For this Strategy, the Index Value is price of iShares U.S. Real Estate ETF for the last reported sale on the New York Stock Exchange Arca.  It is determined at each Market Close.  The Index Value at the start of a Term is its value at the last Market Close on or before the first day of that Term.  The Index Value at the end of a Term is its value at the final Market Close of that Term.  Market Close A Market Close for this Strategy is the close of the core trading session on the New York Stock Exchange Arca on each day that is a Market Day.   

 

E1823017NW 2   Vested Gain Vested Gain is the portion any positive Index Change for the Term that is taken into account when determining the value of the Strategy.  For any day of a Term, the Vested Gain is equal to: 1) any positive Index Change for the Term, but not exceeding the Maximum Gain set for the Term; multiplied by 2) the applicable vesting factor for that day; and then multiplied by 3) the remaining investment base for the current Term.  The vesting factors are set out on the Contract Specifications page.  Vested Loss Vested Loss is the portion any negative Index Change for the Term that is taken into account when determining the value of the Strategy.  For any day of a Term, the Vested Index Loss is equal to: 1) any negative Index Change for the Term, after taking into account the Maximum Loss for each Term of this Strategy; multiplied by 2) the applicable vesting factor for that day; and then multiplied by 3) the remaining investment base for the current Term.  The vesting factors are set out on the Contract Specifications page.  Maximum Gain The Maximum Gain is the largest positive Index Change for a Term taken into account to determine the Vested Gain.  We will set the Maximum Gain for each initial or renewal Term of this Strategy before the first day of that Term.  For a given Term, we may set a different Maximum Gain for amounts attributable to Purchase Payments received on different dates.  The Maximum Gain for each Term of this Strategy shall never be less than 1%.  Maximum Loss The Maximum Loss is the most negative Index Change for a Term taken into account to determine a Vested Loss.  The Maximum Loss for each Term of this Strategy is 10%.  Bailout We will waive the Early Withdrawal Charge [and Market Value Adjustment] on amounts that you withdraw from this Contract at the end of a current Term if the amounts are held under this Strategy and either: 1) the Maximum Gain set for the next Term of this Strategy is less than the Bailout Trigger for the current Term; or 2) this Strategy will not be available for the next Term.  If this waiver will apply to this Strategy at the end of the current Term, we will notify you in writing at least thirty (30) days before the current Term ends.  You may elect a withdrawal under this provision by a Request in Good Order.  Such a request must be received by us before the end of the current Term.  This waiver will only apply to the amount held under this Strategy for the Term that is ending.  It will not apply to amounts then held under a different Strategy, or to amounts held under the same Strategy for a Term ending a different date.  You may not carry over any unused part of the waiver from one Term to the next.   

 

E1823017NW 3   Bailout Trigger Each current Term of this Strategy has its own Bailout Trigger, even if no funds are held under this Strategy for that Term.  The Bailout Trigger for one current Term of this Strategy may be different from the Bailout Trigger for another current Term of this Strategy that started on a different date.  For a current Term, the Bailout for this Strategy is equal to the lowest of: 1) the initial Bailout Trigger of [3.00%]; or 2) the Bailout Trigger for the Term that ended on the date the current Term began; or 3) the Maximum Gain set for the current Term.  If the Maximum Gain is never set below the Bailout Trigger, then the Bailout Trigger will not change.  If the Maximum Gain is ever set below the Bailout Trigger, then the Bailout Trigger will be reduced for the new Term and for each Term that starts on an anniversary of that Term start date.  Index Information iShares U.S. Real Estate ETF (IYR on the New York Stock Exchange Arca) is an exchange traded fund that seeks to track the investment performance of an index composed of U.S. equities in the real estate sector.  [The iShares U.S. Real Estate ETF is distributed by BlackRock Investments, LLC. iShares®, BLACKROCK®, and the corresponding logos are registered and unregistered trademarks of BlackRock, Inc. and its affiliates (“BlackRock”), and these trademarks have been licensed for certain purposes by Great American Life Insurance Company.  Great American Life Insurance Company annuity products are not sponsored, endorsed, sold or promoted by BlackRock, and purchasers of an annuity from Great American Life Insurance Company do not acquire any interest in the iShares U.S. Real Estate ETF nor enter into any relationship of any kind with BlackRock.  BlackRock makes no representations or warranty, express or implied, to the owners of any Great American Life Insurance Company annuity product or any member of the public regarding the advisability of purchasing an annuity, nor does it have any liability for any errors, omissions, interruptions or use of the iShares U.S. Real Estate ETF or any data related thereto.]  GAIN OR LOSS UNDER THIS CREDITING STRATEGY IS DETERMINED IN PART BASED ON THE iSHARES U.S. REAL ESTATE ETF.  HOWEVER, THIS CONTRACT DOES NOT DIRECTLY PARTICIPATE IN ANY EQUITY INVESTMENTS.   This is part of your Contract.  It is not a separate contract.  It changes the Contract only as and to the extent stated.  In all cases of conflict with the other terms of the Contract, the provisions of this Endorsement shall control.  Signed for us at our office as of the Contract Effective Date.   [ ]  [ ] [Mark F. Muething]  [John P. Gruber] [Executive Vice President]  [Secretary]ex_100884.htm

FIRST AMENDMENT TO LOAN AND SECURITY AGREEMENT

AND WAIVER

 

THIS FIRST AMENDMENT TO LOAN AND SECURITY AGREEMENT AND WAIVER (this “Amendment”), dated as of November 20, 2017, is entered into by and among ENSERVCO CORPORATION, a Delaware corporation, DILLCO FLUID SERVICE, INC., a Kansas corporation, HEAT WAVES HOT OIL SERVICE LLC, a Colorado limited liability company, HEAT WAVES WATER MANAGEMENT LLC, a Colorado limited liability company (collectively, “Borrowers”), and EAST WEST BANK, a California banking corporation (“Lender”), with reference to the following facts:

 

RECITALS

 

A.     Borrowers and Lender previously entered into that certain Loan and Security Agreement, dated as of August 10, 2017 (the “Loan Agreement”), pursuant to which Lender provides certain loans and other credit accommodations to Borrowers. 

 

B.     An Event of Default has occurred and is continuing under Section 8.2(a) of the Loan Agreement as a result of Borrowers having failed to satisfy the minimum Fixed Charge Coverage Ratio set forth in Section 6.7(b) of the Loan Agreement for the reporting period ended September 30, 2017 (the “Existing Event of Default”).

 

C.     Borrower has requested that Lender waive the Existing Event of Default, which Lender is willing to do subject to the terms and conditions set forth below.

 

G.     Borrower and Lender also wish to amend the Loan Agreement as set forth herein.

 

NOW, THEREFORE, the parties hereto agree as follows:

 

1.     Defined Terms. Any and all initially capitalized terms used, but not expressly defined herein (including, without limitation, in the recitals hereto), shall have the respective meanings specified in the Loan Agreement.

 

2.     Waiver of Existing Event of Default. Lender hereby waives the Existing Event of Default. This limited waiver shall not be deemed to amend or alter in any respect the terms and conditions of the Loan Agreement, the obligations of Borrowers to Lender thereunder or under any other Loan Document, or to constitute a waiver or release of Lender of any right, remedy or Event of Default under the Loan Agreement or any other Loan Document, except to the extent specifically set forth herein. Furthermore, this waiver shall not affect in any manner whatsoever any rights or remedies of Lender with respect to any other non-compliance by Borrowers with the Loan Agreement or any other Loan Document, whether in the nature of an Event of Default or otherwise, and whether now in existence or subsequently arising.

 

3.     Amendment to Section 6.7. The last paragraph of Section 6.7 of the Loan Agreement is hereby amended and restated in its entirety as follows:

 

Lender shall test Borrower’s compliance with the financial covenant set forth in clause (a) of this Section 6.7 at all times that a Liquidity Testing Trigger Period is in effect. Lender shall test Borrowers’ compliance with the financial covenant set forth in clause (b) of this Section 6.7 as of the last day of each month, commencing with the month ended June 30, 2017, for, as applicable, (i) the trailing twelve-month period ended on such date or (ii) the shorter cumulative period commencing on January 1, 2017 and ended on such compliance test date, provided, however, that Borrowers shall not be required to comply with clause (b) of this Section 6.7 for the months ending October 31, 2017 and November 30, 2017.

 

 

 

 

4.     Amendment to Compliance Certificate. Exhibit E to the Loan Agreement is hereby amended and restated in its entirety to read in full as set forth on Exhibit E to this Amendment. 

 

5.     Amendment and Waiver Fee. In consideration of Lender’s agreement to enter into this Amendment and to provide Borrowers the accommodations contemplated hereunder, Borrowers shall pay to Lender, on the date hereof, a one-time fee in the amount of $20,000 (the “Amendment Fee”). Each Borrower acknowledges and agrees that the Amendment Fee shall be fully earned and non-refundable when due and that Lender may effect payment of the Amendment Fee by charging the full amount thereof to any deposit account maintained by any Borrower with Lender.

 

6.     Conditions Precedent. The effectiveness of this Amendment shall be subject to the prior satisfaction of each of the following conditions:

 

(a)     Lender shall have received this Amendment, duly executed by each Borrower; 

 

(b)     Lender shall have received the Amendment Fee; and

 

(c)     Lender shall have received such other documents and completion of such other matters as Lender may reasonably deem necessary or appropriate.

 

7.     Miscellaneous.

 

(a)     Survival of Representations and Warranties. All representations and warranties made in the Loan Agreement or in any other Loan Document shall survive the execution and delivery of this Amendment.

 

(b)     References to the Loan Agreement. The Loan Agreement, each of the other Loan Documents, and any and all other agreements, documents or instruments now or hereafter executed and delivered pursuant to the terms hereof, or pursuant to the terms of the Loan Agreement as amended hereby, are hereby amended so that any reference therein to the Loan Agreement shall mean a reference to the Loan Agreement as amended by this Amendment.

 

(c)     Loan Agreement Remains in Effect. The Loan Agreement and the other Loan Documents remain in full force and effect, and each Borrower hereby ratifies and confirms its agreements and covenants contained therein. Each Borrower hereby confirms that, after giving effect to this Amendment, no default or Event of Default shall have occurred and be continuing.

 

(d)     Severability. Any provision of this Amendment held by a court of competent jurisdiction to be invalid or unenforceable shall not impair or invalidate the remainder of this Amendment and the effect thereof shall be confined to the provision so held to be invalid or unenforceable.

 

(e)     Governing Law. This Amendment shall be governed by and construed in accordance with the laws of the State of California applied to contracts to be performed wholly within the State of California.

 

(f)     Counterparts. This Amendment may be executed in two or more counterparts, each of which when so executed shall be deemed to be an original, but all of which when taken together shall constitute one and the same instrument.

 

 

 

 

(g)     Headings. The headings, captions and arrangements used in this Amendment are for convenience only and shall not affect the interpretation of this Amendment.

 

(h)     Expenses of Lender. Borrowers jointly and severally agree to pay on demand all costs and expenses reasonably incurred by Lender in connection with the preparation, negotiation and execution of this Amendment, including, without limitation, the reasonable fees and expenses of Lender’s legal counsel.

 

(i)     NO ORAL AGREEMENTS. THIS AMENDMENT REPRESENTS THE FINAL AGREEMENT AMONG THE PARTIES HERETO WITH REGARD TO THE SUBJECT MATTER HEREOF AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS AMONG THE PARTIES HERETO.

 

 

 

Remainder of page intentionally left blank. Signature page(s) follow(s).

 

 

 

 

 

 

IN WITNESS WHEREOF, the parties hereto have entered into this Amendment by their respective duly authorized officers as of the date first above written.

 

BORROWERS:

 

ENSERVCO CORPORATION,

a Delaware corporation

 

By: /s/ Ian Dickinson                           

Name:      Ian Dickinson

Title:      President and Chief Executive Officer

 

DILLCO FLUID SERVICE, INC.,

a Kansas corporation

 

By: /s/ Ian Dickinson                           

Name:      Ian Dickinson

Title:      President and Chief Executive Officer

 

HEAT WAVES HOT OIL SERVICES LLC,

a Colorado limited liability company

 

By: /s/ Ian Dickinson                           

Name:      Ian Dickinson

Title:      Manager and President

 

HEAT WAVES WATER MANAGEMENT, LLC,

a Colorado limited liability company

 

By: /s/ Ian Dickinson                           

Name:      Ian Dickinson

Title:      Manager and President

 

 

 

 

 

 

 

LENDER:

 

EAST WEST BANK,

a California banking corporation

 

 

By: /s/ Nima Michael Rassouli                             

Name:     Nima Michael Rassouli 

Title:     Vice President

 

 

 

 

 

 

 

EXHIBIT E

 

FORM OF COMPLIANCE CERTIFICATE

 

Compliance Certificate

 

	
			To:

				
			East West Bank

			
	
			Date:

				
			, 20___

			
	
			Subject:

				
			Enservco Corporation, Dillco Fluid Service, Inc., Heat Waves Hot Oil Services LLC and Heat Waves Water Management LLC

			

 

Financial Statements

 

In accordance with our Loan and Security Agreement dated as of August 10, 2017, as amended, modified, extended, renewed, supplemented or restated (the “Loan Agreement”), attached are the financial statements of Enservco Corporation and its Subsidiaries on a consolidated basis as of and for the month ended ____________ ____, 20__ (the “Reporting Date”) and the year-to-date period then ended (the “Current Financials”) required to be delivered pursuant to Section 6.2 of the Loan Agreement. All terms used in this certificate have the respective meanings given to such terms in the Loan Agreement.

 

Administrative Borrower certifies that the Current Financials have been prepared in accordance with GAAP and fairly present in all material respects the consolidated financial condition of the Loan Parties as of the date thereof, subject in the case of unaudited statements to changes resulting from audit and normal year-end adjustment.

 

Defaults. (Check one):

 

Administrative Borrower further certifies that:

 

	
			☐

				
			Except as previously reported in writing to Lender, there exists no event or circumstance which is or which with the passage of time, the giving of notice, or both would constitute an Event of Default or, if such an event of circumstance exists, a writing attached hereto specifies the nature thereof, the period of existence thereof and the action that the Loan Parties have taken or propose to take with respect thereto..

			

 

	
			☐

				
			There exists no event or circumstance which is or which with the passage of time, the giving of notice, or both would constitute an Event of Default or, if such an event of circumstance exists, a writing attached hereto specifies the nature thereof, the period of existence thereof and the action that the Loan Parties have taken or propose to take with respect thereto.

			

 

Representations and Warranties:

 

Administrative Borrower further certifies that each of the representations and warranties made by Borrowers, any other Loan Party and/or any Owner of any Borrower in the Loan Agreement and/or in any other Loan Document are true, correct and complete in all material respects on and as of the date of this Compliance Certificate as if made on and as of the date of this Compliance Certificate (and for purposes of this Compliance Certificate, the representations and warranties in Section 5.16 of the Loan Agreement shall be deemed to refer to the financial statements of Enservco Corporation and its Subsidiaries on a consolidated basis delivered to the Lender with this Compliance Certificate); provided, that any representations or warranties qualified by reference to materiality, Material Adverse Effect or any similar language are true, correct and complete in all respects. 

 

 

 

 

Financial Covenants. Administrative Borrower further certifies as follows:

 

1.     Minimum Liquidity. Pursuant to Section 6.7(a) of the Loan Agreement, as of the Reporting Date, if a Liquidity Testing Trigger Period was then in effect, Liquidity was $______________ which ☐ satisfies ☐ does not satisfy the requirement that such amount be not less than $1,500,000 at all times during a Liquidity Testing Trigger Period.

 

2.     Minimum Fixed Charge Coverage Ratio. Pursuant to Section 6.7(b) of the Loan Agreement, as of the Reporting Date, the Fixed Charge Coverage Ratio was _____ to 1.00 which ☐ satisfies ☐ does not satisfy the requirement that such ratio be no less than 1.10 to 1.00 on the Reporting Date.1

 

3.     Capital Expenditures. Pursuant to Section 7.12 of the Loan Agreement, for the year-to-date period ending on the Reporting Date, the Loan Parties have expended or contracted to expend during the Fiscal Year ended _______________, 20___, for Capital Expenditures, $_________________ in the aggregate, which ☐ satisfies ☐ does not satisfy the requirement that such expenditures not exceed $2,500,000 in the aggregate during such Fiscal Year, plus, in the case of Fiscal Year 2018 or any subsequent Fiscal Year, the amount of any unused permitted Capital Expenditures for the immediately preceding Fiscal Year.

 

Attached hereto are all relevant facts in reasonable detail to evidence, and the computations of the financial covenants referred to above. These computations were made in accordance with GAAP, subject to normal year-end adjustments and absence of footnotes.

 

Additional Intellectual Property. Administrative Borrower further certifies that since the date of the last Compliance Certificate delivered by Administrative Borrower to Lender, Borrowers have filed applications for or have registered the following additional Copyrights, Patents and/or Trademarks:     

     ☐     None     

     ☐     As indicated below:                    

 

Copyrights

 

Description          Registration/Application No.          Registration/Application Date

 

 

1 Borrowers shall not be required to comply with the minimum Fixed Charge Coverage Ratio covenant for the months ending October 31, 2017 and November 30, 2017.

 

 

 

 

 

 

Patents

 

Description          Registration/Application No.          Registration/Application Date

 

 

 

 Trademarks

 

Description          Registration/Application No.          Registration/Application Date

 

 

 

ENSERVCO CORPORATION,

a Delaware corporation,

as Administrative Borrower

 

By:                              

Name:                              

Title:

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