Document:

Exhibit 10.2

Exhibit 10.2

AMENDMENT TO CREDIT AGREEMENT

This AMENDMENT TO CREDIT AGREEMENT (“Agreement”), dated as of December 18, 2009, is entered into by and among
GREAT AMERICAN GROUP ENERGY EQUIPMENT, LLC, a California limited liability company (“Borrower”), the Lenders party
hereto and GARRISON LOAN AGENCY SERVICES LLC, as Administrative Agent for the Lenders (“Administrative Agent”). Unless
otherwise defined above or elsewhere in this Agreement, capitalized terms used herein shall have the meanings ascribed
to them in the Credit Agreement (as hereinafter defined).

RECITALS:

WHEREAS, the Borrower, the Lenders party thereto and the Administrative Agent have entered into that certain
Credit Agreement, dated as of May 29, 2008 (as has been amended, restated, supplemented or otherwise modified from time
to time, the “Credit Agreement”);

WHEREAS, on September 26, 2009 the Maturity Date occurred and Borrower failed to repay the principal amount of all
outstanding Loans, due and unpaid interest and all other Obligations under the Credit Agreement and the other Loan
Documents, notwithstanding that such Obligations have become due and payable in full, and such Obligations remain due
and payable and unpaid (the “Payment Defaults”);

WHEREAS, the Non-Payment Defaults (as defined in that certain Forbearance Agreement dated as of October 8, 2009 by
and among Borrower, the Lenders party thereto and the Administrative Agent (the “Forbearance Agreement”)) have occurred
and are continuing under the Credit Agreement and Security Agreement none of which has been cured or waived;

WHEREAS, as a result of the Specified Defaults (as hereinafter defined), the Collateral Agent has the rights
specified under Section 4.01 of the Security Agreement to, among other rights, take possession of the Article 9
Collateral and to exercise any or all other rights of a secured party under the Uniform Commercial Code;

WHEREAS, in an effort to repay the Obligations and to maximize the value of the assets, Borrower determined to
effectuate a sale of Borrower’s assets pursuant to an auction and, as described in the Forbearance Agreement, Borrower
pursued such sale (the “Proposed Auction Sale”);

WHEREAS, as the Proposed Auction Sale was not consummated, Borrower has determined to effectuate a sale of
Borrower’s assets as described herein;

WHEREAS, the Borrower has requested that Administrative Agent and the Lenders forbear from the exercise of
remedies available to them as a result of the Specified Defaults and make certain amendments to the Credit Agreement;
and

WHEREAS, in reliance on Borrower’s determination to dispose of its assets, the Administrative Agent and the
Lenders are willing to (i) further forbear from exercising their rights and remedies under the Loan Documents subject
to the terms and conditions hereinafter set forth and (ii) amend certain provisions of the Credit Agreement, provided
that Borrower complies with the terms of this Agreement.

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NOW, THEREFORE, in consideration of the mutual agreements contained in the Credit Agreement and the other Loan
Documents and herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto hereby agree as follows:

SECTION 1. Definitions. 

(a) The “Effective Date” of this Agreement shall be 12:01 a.m. New York City time on November 10, 2009.

(b) “Forbearance Period” shall mean the period beginning on the Effective Date of this Agreement and ending at
12:01 a.m. New York City time on the earlier to occur of (i) the occurrence of any Forbearance Default and (ii)
November 18, 2010 (which date may or may not be extended upon Borrower’s request, in Administrative Agent’s sole
discretion).

(c) “Forbearance Default” shall mean any of the following: (i) the occurrence of any Event of Default (after
giving effect to any grace period) other than the Specified Defaults; (ii) the failure of Borrower timely to comply
with any term, condition, or covenant set forth in this Agreement; (iii) the failure of any representation or
warranty made by Borrower under or in connection with this Agreement to be true and complete in all material
respects as of the date when made or deemed made; or (iv) the filing of any petition (voluntary or involuntary)
under the insolvency or bankruptcy laws of the United States or any state thereof, or of any foreign jurisdiction,
with respect to Borrower any of its Affiliates, or any of their Subsidiaries.

(d) “Non Payment Defaults” shall mean, collectively, (i) the Defaults and Events of Defaults asserted by the
Administrative Agent and expressly referred to in that certain letter dated as of December 10, 2008 from the
Administrative Agent to Borrower and (ii) the Event of Default arising directly as a result of the existence of the
Tax Lien.

(e) “Specified Defaults” means the Payment Defaults and the Non Payment Defaults.

(f) “Tax Lien” shall mean the Lien or purported Lien asserted by the treasurers of each of Blaine and
Kingfisher Counties, Oklahoma, in the aggregate amount of not more than $313,062.42 as described in Exhibit
A attached hereto, for unpaid and overdue property taxes for the 2007 and 2008 tax years.

SECTION 2. Confirmation by Borrower of Obligations and Specified Defaults Under the Credit Agreement. 

Borrower represents, warrants, acknowledges and agrees that:

(a) As of the date hereof, the aggregate principal balance plus interest of the outstanding Obligations under
the Credit Agreement is not less than $11,429,125.24;

(b) As of the date hereof, the applicable interest rate under the Credit Agreement is 20%;

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(c) Each of the Specified Defaults constitutes an Event of Default that has occurred and is continuing as of
the date of this Agreement;

(d) None of the Specified Defaults has been cured or waived as of the Effective Date;

(e) Except for the Specified Defaults, no other Defaults or Events of Default have occurred and are continuing
as of the date hereof, or are expected to occur during the Forbearance Period, as the case may be;

(f) Prior to, and from and after the Effective Date, the Specified Defaults: (i) relieve the Lenders from any
obligation to extend any Loan or provide other financial accommodations under the Credit Agreement or other Loan
Documents (including consenting to Borrower’s use of cash collateral); and (ii) permit the Administrative Agent,
Collateral Agent, Lenders and other Secured Parties, as the case may be, to, among other things, (A) make other
extensions of credit under any or all of the Credit Agreement and the other Loan Documents, (B) accelerate all or
any portion of the Obligations, (C) commence any legal or other action to collect any or all of the Obligations
from Borrower and/or any Collateral, (D) foreclose or otherwise realize on any or all of the Collateral, and/or
appropriate, set-off and apply to the payment of any or all of the Obligations, any or all of the Collateral,
and/or (E) take any other enforcement action or otherwise exercise any or all rights and remedies provided for by
any or all of the Credit Agreement, the other Loan Documents or applicable law. For the avoidance of doubt,
Borrower represents, warrants, acknowledges and agrees that as a result of the Specified Defaults, the Obligations
have become, and remain, immediately due and payable in their entirety.

SECTION 3. No Waiver.

Except as expressly set forth in this Agreement, no Lender or other Secured Party has waived or is by this
Agreement waiving, and no Lender or other Secured Party has any intention of waiving, any other provisions of the Loan
Documents, any Default or Event of Default which may be continuing on the date hereof or any Event of Default which
may occur after the date hereof (whether the same or similar to the Specified Defaults or otherwise).

SECTION 4. Forbearance; Forbearance Default Rights and Remedies.

(a) As of the Effective Date, each of the Lenders and the Administrative Agent agrees that until the
expiration or termination of the Forbearance Period, it will forbear from exercising its default-related rights and
remedies against Borrower arising solely with respect to the Specified Defaults; provided, however, (i) the
Obligations shall continue to bear interest as specified herein, (ii) the Lenders shall have no obligation to make
any further Loans or make other extensions of credit to Borrower, (iii) Borrower shall comply with all limitations,
restrictions or prohibitions that would otherwise be effective or applicable under the Credit Agreement or any of
the other Loan Documents during the continuance of any Event of Default, (iv) except as otherwise expressly set
forth herein, nothing herein shall restrict, impair or otherwise affect any Lender’s or other Secured Party’s other
rights and remedies under any agreements, including, without limitation, any agreement containing subordination
provisions in favor of any or all of the Lenders or amend or modify any provision thereof, (v) nothing herein shall
restrict, impair or otherwise affect Administrative Agent’s right to file, record, publish or deliver a notice of
default or document of similar effect under any state foreclosure law and (vi) nothing herein shall restrict,
impair or otherwise affect Administrative Agent’s and Lenders’ rights referred to herein.

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(b) Any Forbearance Default shall constitute an immediate Event of Default under the Credit Agreement. No
Forbearance Default shall be a Specified Default.

(c) Upon the occurrence of a Forbearance Default, the agreement of the Lenders hereunder to forbear from
exercising their respective default-related rights and remedies shall immediately terminate without the requirement
of any demand, presentment, protest, or notice of any kind, all of which Borrower waives; provided, however,
the Lenders agree to provide notice of any such Forbearance Default to the Borrower, but the failure to provide such
notice shall not affect the occurrence or existence of any such Forbearance Default or delay or modify any of the
Administrative Agent’s and Lenders’ rights. Borrower agrees that any or all of the Lenders and other Secured Parties
may at any time thereafter proceed to exercise any and all of their respective rights and remedies under any or all
of the Credit Agreement and any other Loan Document and/or applicable law, including, without limitation, their
respective rights and remedies with respect to the Specified Defaults. Without limiting the generality of the
foregoing, upon the occurrence of a Forbearance Default, the Lenders may, in their sole discretion and without the
requirement of any demand, presentment, protest, or notice of any kind, (i) suspend or terminate any commitment to
provide Loans or other extensions of credit under any or all of the Credit Agreement and other Loan Documents, (ii)
continue to charge interest on any or all of the Obligations in accordance with the Credit Agreement, (iii) commence
any legal or other action to collect any or all of the Obligations from Borrower and/or any Collateral, (iv)
foreclose or otherwise realize on any or all of the Collateral, and/or appropriate, setoff or apply to the payment
of any or all of the Obligations and any or all of the Collateral, and (v) take any other enforcement action or
otherwise exercise any or all rights and remedies provided for by any or all of the Loan Documents and/or applicable
law, all of which rights and remedies are fully reserved by the Lenders.

(d) Any agreement by the Lenders to extend the Forbearance Period, if any, must be set forth in writing and
signed by a duly authorized signatory of each of the Administrative Agent, Borrower and the Lenders under the Credit
Agreement.

(e) The parties hereto agree that the running of all statutes of limitation or doctrine of laches applicable to
all claims or causes of action that any Lender or other Secured Party may be entitled to take or bring in order to
enforce its rights and remedies against Borrower is, to the fullest extent permitted by law, tolled and suspended
during the Forbearance Period.

(f) Borrower acknowledges and agrees that any Loan or other financial accommodation which any Lender makes (or
may be deemed to make) on or after the Effective Date has been made by such party in reliance upon, and is
consideration for, among other things, the general releases and indemnities contained in this Agreement and the
other covenants, agreements, representations and warranties of Borrower hereunder.

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SECTION 5. Amendments to Credit Agreement.

Notwithstanding any provision to the contrary set forth in the Credit Agreement or any other Loan Document:

(a) Interest Rate. As of the Effective date and during the Forbearance Period, the applicable interest
rate under the Credit Agreement shall be 0%.

(b) Proceeds from Asset Sale. The proceeds received by the Borrower from the Asset Sale (as defined
herein) shall be immediately applied and/or distributed, as the case may be, in the following order:

first, to the payment to Great American Group, LLC (“Great American”) in an amount not to exceed $313,062.42
in the aggregate for reimbursement to Great American for its payment of the Tax Lien;

second, to the payment to Great American in an amount not to exceed $634,025.15 for reimbursement to
Great American for its payment of Auction Expenses (as defined herein) and Operating Expenses (as defined herein);
in each case, solely to the extent such expenses have been incurred by Great American;

third, to the payment of fees and expenses of the Agents for any amounts in excess of the
Retainer (as defined in Section 22(c));

fourth, after giving effect to the Great American Reimbursement, to payment of Administrative Agent for
application to the Obligations in an aggregate amount of up to $9,000,000 (the “Tier 1 Proceeds”);

fifth, after giving effect to the Great American Reimbursement, to the extent aggregate proceeds from the Asset
Sale exceed the Tier 1 Proceeds but are less than or equal to $11,429,125.24 (such incremental amount being referred to
as the “Tier 2 Proceeds”), to payment of (i) Administrative Agent in an amount equal to 80% of such Tier 2 Proceeds for
application to the Obligations and (ii) Great American in an amount equal to 20% of such Tier 2 Proceeds; and

sixth, after giving effect to the Great American Reimbursement, to the extent aggregate proceeds from the
Asset Sale exceed the Tier 2 Proceeds (such incremental amount being referred to as the “Tier 3 Proceeds”), to payment
of (i) Administrative Agent in an amount equal to 25% of such Tier 3 Proceeds for application to the Obligations and
(ii) Great American in an amount equal to 75% of such Tier 3 Proceeds.

SECTION 6. Conditions Precedent to Agreement.

(a) Agreement. The Agents shall have received this Agreement, duly executed by the parties hereto, and
the same shall be in full force and effect.

(b) Representations and Warranties. After giving effect to this Agreement, the representations and
warranties herein shall be true and correct in all material respects on and as of the date hereof.

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(c) Default or Event of Default. After giving effect to this Agreement, no Default or Event of Default
shall have occurred and be continuing on the date hereof, nor shall result from the consummation of the
transactions contemplated herein.

(d) Injunctions, Writs, Restraining Orders and Other Orders. No injunction, writ, restraining order,
or other order of any nature prohibiting, directly or indirectly, the consummation of the transactions contemplated
herein shall have been issued and remain in force by any governmental authority against the Borrower, the Agent, or
any Lender.

(e) Payment of Tax Lien. The outstanding obligations under the Tax Lien shall have been paid in full
and Agent shall have received evidence satisfactory to it of such payment and Agent shall be satisfied that no
other liens or obligations senior to the Obligations shall remain unpaid.

SECTION 7. Supplemental Terms, Conditions and Covenants During the Forbearance Period. 

Borrower, in an effort to repay the Obligations, has determined that it is in the best interests of Borrower and
its creditors to effectuate a sale of the Borrower’s assets, and that each such determination is, in the opinion of
Borrower, commercially reasonable. Accordingly, Borrower hereby covenants and agrees to comply with the following
terms, conditions and covenants during the Forbearance Period, in each case notwithstanding any provision to the
contrary set forth in this Agreement, the Credit Agreement or any other Loan Document:

(a) Payment of Insurance Premiums, Auction Expenses and Collateral Costs. From the Effective Date and
throughout the Forbearance Period, Great American shall (i) as described in Exhibit B attached hereto, pay
all auction expenses in connection with the sale of the Borrower’s assets in an amount not to exceed $163,025.15 in
the aggregate (“Auction Expenses”); and (ii) pursuant to the budget set forth in Exhibit C attached hereto,
provide funding to Borrower in amounts necessary to cover such ongoing operating costs of the Borrower (or such
other amounts with the prior written consent of the Administrative Agent) (including, but not limited to, the
payment of all premium payments in connection with all of Borrower’s insurance policies in order to maintain, or
cause Borrower to maintain all such insurance policies in effect and the preservation and marketing of the
Collateral); provided, that any such costs exceeding $15,000 shall require the prior written consent of the
Administrative Agent (“Operating Expenses”, and together with the Auction Expenses and the payment of the Tax Lien
as required hereunder, the “Great American Reimbursement”).

(b) Sale Process. On or before November 18, 2010 (the “Sale Date”), the Borrower shall consummate a
sale of all of its assets (the “Asset Sale”) 100% of the proceeds thereform shall be remitted by buyers thereunder
to Administrative Agent for application in accordance with the terms hereof.

(c) Other. Promptly following any such request, Borrower shall provide all other available financial
and operational information of Borrower that is reasonably requested by the Administrative Agent.

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(d) General Cooperation from Borrower. Borrower shall, and shall cause its officers, other members of
senior management and advisors to, cooperate fully with Administrative Agent, Collateral Agent and/or the Lenders
and any of its or their respective advisors in furnishing information as and when reasonably requested by any of
them regarding the matters described in this Agreement, the Collateral or Borrower’s financial affairs, finances,
financial condition, business and operations. Borrower authorizes Administrative Agent, Collateral Agent and/or the
Lenders and any of its or their respective advisors to meet and/or have discussions with any of their officers,
other members of senior management and advisors from time to time as reasonably requested by Administrative Agent,
Collateral Agent and/or the Lenders or any of its or their respective advisors to discuss any matters regarding the
matters described in this Agreement, the Collateral or Borrower’s financial affairs, finances, financial condition,
business and operations, and shall direct and authorize all such persons and entities to fully disclose to
Administrative Agent, Collateral Agent, any of the Lenders and any of its or their respective advisors all
information reasonably requested by any of them regarding the foregoing.

(e) Prohibition Against Voluntary Repayment of Other Indebtedness. Borrower agrees that it shall not
voluntarily prepay, redeem or repurchase any principal of, or interest or other amounts owing with respect to, any
Indebtedness other than the Obligations during the Forbearance Period.

SECTION 8. General Release; Indemnity.

(a) In consideration of, among other things, Administrative Agent’s and Lenders’ execution and delivery of this
Agreement, Borrower, on behalf of itself and its agents, representatives, officers, directors, advisors, employees,
subsidiaries, affiliates, successors and assigns (collectively, “Releasors”), hereby forever agrees and covenants
not to sue or prosecute against any Releasee (as hereinafter defined) and hereby forever waives, releases and
discharges, to the fullest extent permitted by law, each Releasee from any and all claims (including, without
limitation, crossclaims, counterclaims, rights of set-off and recoupment), actions, causes of action, suits, debts,
accounts, interests, liens, promises, warranties, damages and consequential damages, demands, agreements, bonds,
bills, specialties, covenants, controversies, variances, trespasses, judgments, executions, costs, expenses or
claims whatsoever (collectively, the “Claims”), that such Releasor now has or hereafter may have, of whatsoever
nature and kind, whether known or unknown, whether now existing or hereafter arising, whether arising at law or in
equity, against the Collateral Agent, Administrative Agent and any or all of the Lenders and/or any other Secured
Party in any capacity and their respective affiliates, subsidiaries, shareholders and “controlling persons” (within
the meaning of the federal securities laws), and their respective successors and assigns and each and all of the
officers, directors, employees, agents, attorneys and other representatives of each of the foregoing (collectively,
the “Releasees”), based in whole or in part on facts, whether or not now known, existing on or before the date
hereof, that relate to, arise out of or otherwise are in connection with: (i) any or all of the Loan Documents and
this Agreement, or transactions contemplated thereby or hereby, or any actions or omissions in connection therewith
or herewith, or (ii) any aspect of the dealings or relationships between or among Borrower, on the one hand, and any
or all of the Lenders and/or any other Secured Party, on the other hand, relating to any or all of the documents,
transactions, actions or omissions referenced in clause (i) hereof. In entering into this Agreement, Borrower
consulted with, and has been represented by, legal counsel and expressly disclaims any reliance on any
representations, acts or omissions by any of the Releasees and hereby agrees and acknowledges that the validity and
effectiveness of the releases set forth above do not depend in any way on any such representations, acts and/or
omissions or the accuracy, completeness or validity hereof. The provisions of this Section shall survive the
termination of this Agreement, the Credit Agreement, other Loan Documents and payment in full of the Obligations.

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(b) Borrower hereby agrees that it shall be obligated to indemnify and hold the Releasees harmless with respect
to any and all liabilities, obligations, losses, penalties, actions, judgments, suits, costs, expenses or
disbursements of any kind or nature whatsoever incurred by the Releasees, or any of them, whether direct, indirect
or consequential, as a result of or arising from or relating to any proceeding by, or on behalf of any person,
including, without limitation, the respective officers, directors, agents, trustees, creditors, partners or
shareholders of Borrower, or any of their respective subsidiaries, whether threatened or initiated, in respect of
any claim for legal or equitable remedy under any statute, regulation or common law principle arising from or in
connection with the negotiation, preparation, execution, delivery, performance, administration and enforcement of
the Credit Agreement, the other Loan Documents, this Agreement or any other document executed and/or delivered in
connection herewith; provided, that Borrower shall have no obligation to indemnify or hold harmless any Releasee
hereunder with respect to liabilities to the extent they result from the gross negligence or willful misconduct of
that Releasee as finally determined by a court of competent jurisdiction. To the extent that the undertakings to
defend, indemnify, pay and hold harmless set forth in this Section 8 may be unenforceable in whole or in part
because they are violative of any law or public policy, Borrower agrees to contribute the maximum portion that it is
permitted to pay and satisfy under applicable law to the payment and satisfaction of all indemnified liabilities
hereunder incurred by any of them. The foregoing indemnity shall survive the termination of this Agreement, the
Credit Agreement, the other Loan Documents and the payment in full of the Obligations.

(c) Borrower, on behalf of itself and its successors, assigns, and other legal representatives, hereby
absolutely, unconditionally and irrevocably, covenants and agrees with and in favor of each Releasee that it will
not sue (at law, in equity, in any regulatory proceeding or otherwise) any Releasee on the basis of any Claim
released, remised and discharged by Borrower pursuant to Section 8 hereof If Borrower or any of its successors,
assigns or other legal representatives violates the foregoing covenant, Borrower, each for itself and its
successors, assigns and legal representatives, agrees to pay, in addition to such other damages as any Releasee may
sustain as a result of such violation, all attorneys’ fees and costs incurred by any Releasee as a result of such
violation.

(d) Upon consummation of the Asset Sale resulting in the sale of all of Borrower’s assets, payment of all
proceeds being made to Agent in accordance herewith, Agent will undertake to release Borrower from further
liabilities under the Credit Agreement other than indemnification obligations and other than to the extent anything
gets clawed back.

SECTION 9. Representations and Warranties of Borrower. 

To induce Administrative Agent, Collateral Agent and Lenders to execute and deliver this Agreement, Borrower
represents and warrants that:

(a) The execution, delivery and performance by Borrower of this Agreement and all documents and instruments
delivered in connection herewith and the Loan Agreement and all other Loan Documents have been duly authorized by
Borrower’s board of directors (or similar governing body), and this Agreement and all documents and instruments
delivered in connection herewith and the Credit Agreement and all other Loan Documents are legal, valid and binding
obligations of Borrower enforceable against Borrower in accordance with their respective terms, except as may be
limited by (i) the effect of any applicable bankruptcy, insolvency, reorganization, moratorium or similar laws
affecting creditors’ rights generally and (ii) general principles of equity (regardless of whether such enforcement
is sought in a proceeding in equity or at law);

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(b) Except as a result of the Specified Defaults, each of the representations and warranties contained in the
Credit Agreement and the other Loan Documents is true and correct in all material respects on and as of the date
hereof to the same extent as though made on the date hereof, except to the extent that such representations and
warranties specifically relate to an earlier date, in which case such representations and warranties shall have
been true and correct in all material respects on and as of such earlier date, and each of the agreements and
covenants in the Credit Agreement and the other Loan Documents is hereby reaffirmed with the same force and effect
as if each were separately stated herein and made as of the date hereof;

(c) Neither the execution, delivery and performance of this Agreement and all documents and instruments
delivered in connection herewith nor the consummation of the transactions contemplated hereby or thereby does or
shall contravene, result in a breach of, or violate (i) any provision of Borrower’s corporate charter, bylaws,
operating agreement, or other governing documents, (ii) any law or regulation, or any order or decree of any court
or government instrumentality, or (iii) any indenture, mortgage, deed of trust, lease, agreement or other
instrument to which Borrower is a party or by which Borrower or any of its respective property is bound;

(d) As of the date hereof, except for the Specified Defaults, no Event of Default has occurred or is
continuing under this Agreement, the Credit Agreement or any other Loan Document; and

(e) The Lenders’ and the other Secured Parties’ security interests in the Collateral continue to be valid,
binding and enforceable first-priority perfected security interests which secure the Obligations subject only to
the Permitted Liens and, potentially, the Tax Lien.

SECTION 10. Ratification of Liability.

Borrower, as debtor, grantor, pledgor, assignor, or in other similar capacities in which such parties grant liens
or security interests in their properties or otherwise act as accommodation parties, as the case may be, under the
Loan Documents, hereby ratifies and reaffirms all of its payment and performance obligations and obligations to
indemnify, contingent or otherwise, under each of such Loan Documents to which such party is a party, and such party
hereby ratifies and reaffirms its grant of liens on or security interests in its properties pursuant to such Loan
Documents to which it is a party as security for the Obligations under or with respect to the Credit Agreement and
confirms and agrees that such liens and security interests hereafter secure all of the Obligations, including, without
limitation, all additional Obligations hereafter arising or incurred pursuant to or in connection with this Agreement,
the Credit Agreement or any other Loan Document. Borrower further agrees and reaffirms that the Loan Documents to
which it is a party now apply to all Obligations as defined in the Credit Agreement, as modified hereby (including,
without limitation, all additional Obligations hereafter arising or incurred pursuant to or in connection with this
Agreement, the Credit Agreement or any other Loan Document). Such party (i) further acknowledges receipt of a copy of
this Agreement and all other agreements, documents, and instruments executed and/or delivered in connection herewith,
(ii) consents to the terms and conditions of same, and (iii) agrees and acknowledges that each of the Loan Documents,
as modified hereby, remains in full force and effect and is hereby ratified and confirmed. Except as expressly
provided herein, the execution of this Agreement shall not operate as a waiver of any right, power or remedy of any
Lender, nor constitute a waiver of any provision of any of the Loan Documents nor constitute a novation of any of the
Obligations under the Credit Agreement or other Loan Documents.

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SECTION 11. Reference to and Effect Upon the Credit Agreement.

(a) Except as specifically amended hereby, all terms, conditions, covenants, representations and warranties
contained in the Credit Agreement and other Loan Documents, and all rights of the Lenders and all of the
Obligations, shall remain in full force and effect. Borrower hereby confirms that the Credit Agreement and the
other Loan Documents are in full force and effect and that Borrower has no right of setoff, recoupment or other
offset or any defense, claim or counterclaim with respect to any of the Obligations, the Credit Agreement or any
other Loan Document.

(b) Except as expressly set forth herein, the execution, delivery and effectiveness of this Agreement shall
not directly or indirectly (i) continue to defer any enforcement action after the occurrence of any other Default
or Event of Default (including, without limitation, any Forbearance Default), (ii) constitute a consent or waiver
of any past, present or future violations of any provisions of the Credit Agreement or any other Loan Documents,
(iii) amend, modify or operate as a waiver of any provision of the Credit Agreement or any other Loan Documents or
any right, power or remedy of any Lender, (iv) constitute a consent to any merger or other transaction or to any
sale, restructuring or refinancing transaction, or (v) constitute a course of dealing or other basis for altering
any Obligations or any other contract or instrument. Except as expressly set forth herein, each Lender and each of
the other Secured Parties reserves all of its rights, powers, and remedies under the Credit Agreement, the other
Loan Documents and applicable law. All of the provisions of the Credit Agreement and the other Loan Documents,
including, without limitation, the time of the essence provisions, are hereby reiterated.

(c) No Lender or other Secured Party has waived or is by this Agreement waiving, and no Lender or other Secured
Party has any intention of waiving (regardless of any delay in exercising such rights and remedies), any Default or
Event of Default which may be continuing on the date hereof or any Event of Default which may occur after the date
hereof (whether the same or similar to the Specified Defaults or otherwise), and no Lender or any other Secured
Party has agreed to forbear with respect to any of its rights or remedies concerning any Events of Default (other
than, during the Forbearance Period, the Specified Defaults solely to the extent expressly set forth herein), which
may have occurred or are continuing as of the date hereof, or which may occur after the date hereof.

(d) Borrower agrees and acknowledges that the Lenders’ agreement to forbear from exercising certain of their
default-related rights and remedies with respect to the Specified Defaults during the Forbearance Period does not in
any manner whatsoever limit any Lender’s or other Secured Party’s right to insist upon strict compliance by Borrower
with the Credit Agreement, this Agreement or any other Loan Document during the Forbearance Period, except as
related to the Specified Defaults to the extent provided herein and otherwise as expressly set forth herein.

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(e) This Agreement shall not be deemed or construed to be a satisfaction, reinstatement, novation or release of
the Credit Agreement or any other Loan Document.

SECTION 12. Costs And Expenses.

In addition to (to the extent not otherwise provided in the Credit Agreement), and not in lieu of, the terms of
the Credit Agreement and other Loan Documents relating to the reimbursement of fees and expenses, Borrower shall
reimburse Administrative Agent and the other Lenders, as the case may be, promptly following demand therefor, for all
fees, costs, charges and expenses, including the fees, costs and expenses of counsel and other expenses, incurred in
connection with this Agreement and the other agreements and documents executed and/or delivered in connection herewith.
The Borrower agrees upon submission of any invoice by counsel to the Administrative Agent, to wire the invoiced amount
to such counsel (in accordance with the wire instructions set forth in such invoice), less the amount (if any) held by
such counsel from the retainer paid in accordance with Section 22(c) of this Agreement.

SECTION 13. Governing Law; Consent to Jurisdiction and Venue.

THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE GOVERNED BY, AND SHALL BE
CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO CONFLICT OF LAWS
PRINCIPLES THEREOF. ALL JUDICIAL PROCEEDINGS BROUGHT AGAINST BORROWER ARISING OUT OF OR RELATING HERETO OR ANY OTHER
LOAN DOCUMENT, OR ANY OF THE OBLIGATIONS, MAY BE BROUGHT IN ANY STATE OR FEDERAL COURT OF COMPETENT JURISDICTION IN THE
STATE, COUNTY AND CITY OF NEW YORK. BY EXECUTING AND DELIVERING THIS AGREEMENT, BORROWER, FOR ITSELF AND IN CONNECTION
WITH ITS PROPERTIES, IRREVOCABLY (A) ACCEPTS GENERALLY AND UNCONDITIONALLY THE NONEXCLUSIVE JURISDICTION AND VENUE OF
SUCH COURTS; (B) WAIVES ANY DEFENSE OF FORUM NON CONVENIENS; (C) AGREES THAT SERVICE OF ALL PROCESS IN ANY SUCH
PROCEEDING IN ANY SUCH COURT MAY BE MADE BY REGISTERED OR CERTIFIED MAIL, RETURN RECEIPT REQUESTED, TO BORROWER AT ITS
ADDRESS PROVIDED IN THE CREDIT AGREEMENT; (D) AGREES THAT SERVICE AS PROVIDED IN CLAUSE (C) ABOVE IS SUFFICIENT TO
CONFER PERSONAL JURISDICTION OVER BORROWER IN ANY SUCH PROCEEDING IN ANY SUCH COURT, AND OTHERWISE CONSTITUTES
EFFECTIVE AND BINDING SERVICE IN EVERY RESPECT; AND (E) AGREES THAT AGENTS AND LENDERS RETAIN THE RIGHT TO SERVE
PROCESS IN ANY OTHER MANNER PERMITTED BY LAW OR TO BRING PROCEEDINGS AGAINST BORROWER IN THE COURTS OF ANY OTHER
JURISDICTION.

11

 

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SECTION 14. Construction.

This Agreement and all other agreements and documents executed and/or delivered in connection herewith have been
prepared through the joint efforts of all of the parties hereto. Neither the provisions of this Agreement or any such
other agreements and documents nor any alleged ambiguity therein shall be interpreted or resolved against any party on
the ground that such party or its counsel drafted this Agreement or such other agreements and documents, or based on
any other rule of strict construction. Each of the parties hereto represents and declares that such party has
carefully read this Agreement and all other agreements and documents executed in connection therewith, and that such
party knows the contents thereof and signs the same freely and voluntarily. The parties hereto acknowledge that they
have been represented by legal counsel of their own choosing in negotiations for and preparation of this Agreement and
all other agreements and documents executed in connection herewith and that each of them has read the same and had
their contents fully explained by such counsel and is fully aware of their contents and legal effect. If any matter is
left to the decision, right, requirement, request, determination, judgment, opinion, approval, consent, waiver,
satisfaction, acceptance, agreement, option or discretion of one or more Lenders, the other Secured Parties or their
respective employees, counsel, or agents in the Credit Agreement or any other Loan Documents, such action shall be
deemed to be exercisable by such Lenders, such other Secured Parties or such other Person in its sole and absolute
discretion and according to standards established in its sole and absolute discretion. Without limiting the generality
of the foregoing, “option” and “discretion” shall be implied by the use of the words “if’ and “may.”

SECTION 15. Counterparts.

This Agreement may be executed in any number of counterparts, each of which when so executed shall be deemed an
original, but all such counterparts shall constitute one and the same instrument, and all signatures need not appear
on any one counterpart. Any party hereto may execute and deliver a counterpart of this Agreement by delivering by
facsimile or other electronic transmission a signature page of this Agreement signed by such party, and any such
facsimile or other electronic signature shall be treated in all respects as having the same effect as an original
signature. Any party delivering by facsimile or other electronic transmission a counterpart executed by it shall
promptly thereafter also deliver a manually signed counterpart of this Agreement.

SECTION 16. Severability.

The invalidity, illegality, or unenforceability of any provision in or obligation under this Agreement in any
jurisdiction shall not affect or impair the validity, legality, or enforceability of the remaining provisions or
obligations under this Agreement or of such provision or obligation in any other jurisdiction. If feasible, any such
offending provision shall be deemed modified to be within the limits of enforceability or validity; however, if the
offending provision cannot be so modified, it shall be stricken and all other provisions of this Agreement in all other
respects shall remain valid and enforceable.

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12

 

SECTION 17. Time of Essence.

Time is of the essence in the performance of each of the obligations of Borrower hereunder and with respect to all
conditions to be satisfied by such parties.

SECTION 18. No Other Creditor Action.

The Lenders’ and the other Secured Parties’ obligations to forbear are expressly conditioned upon all other
creditors of Borrower (including, without limitation, trade creditors) refraining or otherwise forbearing from
exercising remedies or otherwise taking any enforcement action against Borrower or the Collateral (including, without
limitation, acceleration of indebtedness) during the Forbearance Period. In the event that any such creditor takes any
such action, all of the Lenders’ and the other Secured Parties’ obligations hereunder shall automatically and
immediately terminate without further notice or demand.

SECTION 19. Further Assurances.

Borrower agrees to take all further actions and execute all further documents as Administrative Agent may from
time to time reasonably request to carry out the transactions contemplated by this Agreement, the Credit Agreement,
other Loan Documents and all other agreements executed and delivered in connection herewith.

SECTION 20. Section Headings.

Section headings in this Agreement are included herein for convenience of reference only and shall not constitute
part of this Agreement for any other purpose.

SECTION 21. Notices.

All notices, requests, and demands to or upon the respective parties hereto shall be given in accordance with the
Credit Agreement.

SECTION 22. Effectiveness.

This Agreement shall become effective as of the Effective Date, provided that all of the following conditions
precedent have been met (or waived) as determined by Administrative Agent in its sole discretion:

(a) Agreement. Administrative Agent shall have received duly executed signature pages for this
Agreement signed by Administrative Agent, Lenders and Borrower.

(b) Representations and Warranties. The representations and warranties contained herein shall be true
and correct, and no Forbearance Default, Default or Event of Default, other than the Specific Defaults, shall exist
on the date hereof.

13

 

13

 

(c) Expenses. Borrower shall have remitted to the Administrative Agent’s counsel, Kirkland & Ellis LLP,
a retainer in the amount of $15,000 in immediately available funds, which amount shall be used towards the legal
fees and expenses incurred by the Administrative Agent through the date hereof and, to the extent of any remaining
amount, any legal fees and expenses incurred from and after the Effective Date (the “Retainer”).

SECTION 23. Waiver of Jury Trial Right and Other Matters.

BORROWER HEREBY WAIVES (i) THE RIGHT TO TRIAL BY JURY IN ANY ACTION, SUIT, PROCEEDING OR COUNTERCLAIM OF ANY KIND
ARISING OUT OF OR RELATED TO THIS AGREEMENT, THE CREDIT AGREEMENT, ANY OF THE OTHER LOAN DOCUMENTS, THE OBLIGATIONS OR
THE COLLATERAL; (ii) PRESENTMENT, DEMAND AND PROTEST, AND NOTICE OF PRESENTMENT, PROTEST, DEFAULT, NONPAYMENT,
MATURITY, RELEASE WITH RESPECT TO ALL OR ANY PART OF THE OBLIGATIONS OR ANY COMMERCIAL PAPER, ACCOUNTS, CONTRACT
RIGHTS, DOCUMENTS, INSTRUMENTS, CHATTEL PAPER AND GUARANTIES AT ANY TIME HELD BY ANY LENDER ON WHICH BORROWER MAY IN
ANY WAY BE LIABLE AND HEREBY RATIFIES AND CONFIRMS WHATEVER SUCH LENDER MAY DO IN THIS REGARD; (iii) NOTICE PRIOR TO
TAKING POSSESSION OR CONTROL OF THE COLLATERAL OR ANY BOND OR SECURITY WHICH MIGHT BE REQUIRED BY ANY COURT PRIOR TO
ALLOWING ANY LENDER TO EXERCISE ANY OF THEIR RESPECTIVE RIGHTS AND REMEDIES; (iv) THE BENEFIT OF ALL VALUATION,
APPRAISAL AND EXEMPTION LAWS AND ALL RIGHTS WAIVABLE UNDER ARTICLE 9 OF THE UNIFORM COMMERCIAL CODE; (v) ANY RIGHT
BORROWER MAY HAVE UPON PAYMENT IN FULL OF THE OBLIGATIONS TO REQUIRE ANY LENDER OR OTHER SECURED PARTY TO TERMINATE ITS
SECURITY INTEREST IN THE COLLATERAL OR IN ANY OTHER PROPERTY OF BORROWER UNTIL TERMINATION OF THE CREDIT AGREEMENT IN
ACCORDANCE WITH ITS TERMS AND THE EXECUTION BY BORROWER, AND BY ANY PERSON WHO PROVIDES FUNDS TO BORROWER WHICH ARE
USED IN WHOLE OR IN PART TO SATISFY THE OBLIGATIONS, OF AN AGREEMENT INDEMNIFYING ANY OR ALL OF THE LENDERS AND THE
OTHER SECURED PARTIES FROM ANY LOSS OR DAMAGE ANY SUCH PARTY MAY INCUR AS THE RESULT OF DISHONORED CHECKS OR OTHER
ITEMS OF PAYMENT RECEIVED BY SUCH LENDER OR OTHER SECURED PARTY FROM BORROWER, OR ANY ACCOUNT DEBTOR AND APPLIED TO THE
OBLIGATIONS AND RELEASING AND INDEMNIFYING, IN THE SAME MANNER AS DESCRIBED IN SECTION 8 OF THIS AGREEMENT, THE
RELEASEES FROM ALL CLAIMS ARISING ON OR BEFORE THE DATE OF SUCH TERMINATION STATEMENT; AND (vi) NOTICE OF ACCEPTANCE
HEREOF, AND BORROWER ACKNOWLEDGES THAT THE FOREGOING WAIVERS ARE A MATERIAL INDUCEMENT TO ADMINISTRATIVE AGENT’S AND
SIGNING LENDER’S ENTERING INTO THIS AGREEMENT AND THAT SUCH PARTIES ARE RELYING UPON THE FOREGOING WAIVERS IN THEIR
FUTURE DEALINGS WITH BORROWER. BORROWER WARRANTS AND REPRESENTS THAT IT HAS REVIEWED THE FOREGOING WAIVERS WITH ITS
LEGAL COUNSEL AND HAS KNOWINGLY AND VOLUNTARILY WAIVED ITS JURY TRIAL RIGHTS FOLLOWING CONSULTATION WITH LEGAL COUNSEL.
IN THE EVENT OF LITIGATION, THIS AGREEMENT MAY BE FILED AS A WRITTEN CONSENT TO A TRIAL BY THE COURT.

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14

 

SECTION 24. Assignments; No Third Party Beneficiaries. 

This Agreement shall be binding upon and inure to the benefit of Borrower, the Lenders and the other Secured
Parties and their respective successors and assigns; provided, that Borrower shall not be entitled to delegate any of
its duties hereunder and shall not assign any of its rights or remedies set forth in this Agreement without the prior
written consent of Administrative Agent in its sole discretion. No Person other than the parties hereto, and in the
case of Section 8 hereof, the Releasees, shall have any rights hereunder or be entitled to rely on this Agreement and
all third-party beneficiary rights (other than the rights of the Releasees under Section 8 hereof) are hereby
expressly disclaimed.

SECTION 25. Final Agreement.

This Agreement, the Credit Agreement, the other Loan Documents, and the other written agreements, instruments,
and documents entered into in connection therewith (collectively, the “Borrower/Lender Documents”) set forth in full
the terms of agreement between the parties hereto and thereto and are intended as the full, complete, and exclusive
contracts governing the relationship between such parties, superseding all other discussions, promises,
representations, warranties, agreements, and understandings between the parties with respect thereto. No term of the
Borrower/Lender Documents may be modified or amended, nor may any rights thereunder be waived, except in a writing
signed by the party against whom enforcement of the modification, amendment, or waiver is sought. Any waiver of any
condition in, or breach of, any of the foregoing in a particular instance shall not operate as a waiver of other or
subsequent conditions or breaches of the same or a different kind. Administrative Agent’s, any Lender’s or any other
Secured Party’s exercise or failure to exercise any rights or remedies under any of the foregoing in a particular
instance shall not operate as a waiver of its right to exercise the same or different rights and remedies in any other
instances. There are no oral agreements among the parties hereto.

SECTION 26. Administrative Agent.

The Lenders hereby authorize the Administrative Agent to execute this Agreement.

Signature pages to follow

15

 

15

 

IN WITNESS WHEREOF, as of the Effective Date, the duly authorized representatives of
the parties have caused this Agreement to be executed and acknowledge that they have read and
understood this Agreement.

	 	 	 	 	 
	 	GREAT AMERICAN GROUP ENERGY EQUIPMENT, LLC 

as Borrower

 	 
	 	By:  	/s/ Mark Naughton
 	 
	 	 	Name:  	Mark Naughton 	 
	 	 	Title:  	Senior Vice President and General Counsel of Great
American Group, LLC, Member 	 
	 
	 	GARRISON LOAN AGENCY SERVICES, LLC 

as Administrative Agent

 	 
	 	By:  	/s/
Brian S. Chase 	 
	 	 	Authorized Signatory 	 
	 	 	 	 
	 
	 	GARRISON SPECIAL OPPORTUNITIES FUND LP, 

as Lender

 	 
	 	By:  	/s/
Brian S. Chase
 	 
	 	 	Title:  Chief Financial Officer 	 
	 	 	 	 
	 

 

 

 

Exhibit A — Tax Liens 

 

 

 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Red River Tax Liens	 
	 	 	2007	 	 	2008	 	 	2009	 	 	Total	 
	Kingfisher CO
	 	 	54,388.95	 	 	 	100,196.49	 	 	 	107,242.00	 	 	 	261,827.44	 
	Blaine CO
	 	 	51,234.98	 	 	 	 	 	 	 	 	 	 	 	51,234.98	 

 

 

 

Exhibit B — Auction Expenses 

 

 

 

Red River Auction Expenses

	 	 	 	 	 	 	 	 	 
	Acct #	 	 	 	 	 	 	 
	 	515-50	 	 	Temporary Help
	 	$	2,655.71	 
	 	537-50	 	 	Advertising
	 	$	118,926.52	 
	 	555-50	 	 	Equipment Rental
	 	$	4,191.54	 
	 	585-50	 	 	Outside Services
	 	$	3,476.21	 
	 	586-50	 	 	Webcast Services
	 	$	7,410.14	 
	 	595-50	 	 	Supplies
	 	$	1,213.09	 
	 	598-50	 	 	Telephone & Pagers
	 	$	393.37	 
	 	630-50	 	 	Supervision
	 	$	12,836.00	 
	 	650-50	 	 	Trave
	 	$	11,650.87	 
	 	660-50	 	 	Rent
	 	$	271.70	 
	 	 	 	 	Total
	 	$	163,025.15	 

 

 

 

Exhibit C — Operating Expenses 

 

 

 

Red River Operating Costs

	 	 	 	 	 
	 	 	9 mo	 
	 
	 	 	 	 
	Operating Expenses:
	 	 	 	 
	 
	 	 	 	 
	Advertising
	 	 	33	 
	 
	 	 	 	 
	Bank Fees
	 	 	3	 
	 
	 	 	 	 
	Cost of Capital / Interest
	 	 	 	 
	Consolidation of Assets
	 	 	0	 
	Office Supplies
	 	 	1	 
	Webcast
	 	 	0	 
	Miscelleanous
	 	 	2	 
	Equipment Rental
	 	 	0	 
	Shipping/Postage
	 	 	10	 
	Legal
	 	 	0	 
	GAG Insurance
	 	 	55	 
	 
	 	 	 
	Misc Expenses
	 	 	71	 
	 
	 	 	 	 
	JV Consultant and Lead Man
	 	 	12	 
	Travel
	 	 	33	 
	 
	 	 	 
	Supervision
	 	 	45	 
	 
	 	 	 	 
	Labor and Refurb Supervision
	 	 	 	 
	Move, rig up prep, outside services
	 	 	120	 
	 
	 	 	 
	Reconditioning Expenses
	 	 	120	 
	 
	 	 	 	 
	Occupancy
	 	 	80	 
	Ad Valorem Taxes
	 	 	122	 
	 
	 	 	 
	Occupancy
	 	 	202	 
	 
	 	 	 	 
	 
	 	 	 
	Total Operating Expenses
	 	 	471Converted by EDGARwiz

Sale and Purchase Agreement and Joint Escrow Instructions

Re:  Vacant Land, 413.22 acres, APN: 0517-251-05 San Bernardino County, CA  USA

Bruce D. Strachan and Elizabeth K. Strachan hereby agree to sell the above noted property to John Power or assignee on the following terms and conditions:

1.

Sales price of $8,000,000 or the spot price of 500,000 troy ounces* of silver, whichever is greater, payable as follows:

A.

Buyer shall deposit $10,000 in escrow on or before December 15, 2009.

B.

Buyer shall deposit an additional $90,000 into escrow on or before March 15, 2010.  Said deposit shall be deposited into escrow by bank wire from buyer and shall be released immediately to the sellers by escrow agent.  Buyer hereby authorizes and directs escrow agent to disburse said funds to seller.  Said $90,000 deposit is non-refundable, however, it shall be applied to the purchase price.

C.

Buyer shall deposit an additional $100,000 into escrow on or before July 15, 2011.  Said deposit shall be deposited into escrow by bank wire from buyer and shall be released immediately to the sellers by escrow agent.  Buyer hereby authorizes and directs escrow agent to disburse said funds to seller.  Said $100,000 deposit is non-refundable, however, it shall be applied to the purchase price.

D.

Buyer shall deposit an additional $1,800,000 plus closing costs by bank wire from buyer at close of escrow on or before July 15, 2012.

E.

Buyer shall execute and seller shall carry back a note secured by a first trust deed on subject property for the balance of the purchase price.  15 year amortization, 6% interest, annual payments, first payment due 12 months after close of escrow.  6% late charge if any installment payment is 15 days past due.

Recap:

December 15, 2009

$   10,000

March 15, 2010

$   90,000

July 15, 2011

$  100,000

July 15, 2012

$1,800,000 (plus closing costs)

Total Down Payment

$2,000,000 (plus closing costs)

Balance of purchase price:

Note and Trust Deed

Seller’s Initials /s/ BDS   EKS

Buyer’s Initials  /s/ JCP   Page 1 of 4

F.

*The spot price of silver shall be defined as the average of the daily London fixing, as published by the Wall Street Journal, during the calendar month preceding the close of escrow.

2.

Buyer shall have until March 15, 2010 as a period of due diligence.  During this time the geologists, permitting consultants, legal consultants, etc employed by the buyer shall be given access to the property to perform all necessary tests in accordance with fatal flaw analysis, permitting research and deposit verification.  During this due diligence period, the removal of any material not directly related to the aforementioned testing (fatal flaw analysis, permitting research and deposit verification) will not be permitted.  Any costs associated with the geologist’s work, permitting research, deposit verification, fatal flaw analysis, actual permitting of this property, legal consultations or any activity associated therein shall solely be the responsibility of the buyer and will not be assumed by, nor paid by, the sellers.  Buyer hereby agrees to indemnify and to hold harmless the sellers in the event of any injuries to the buyers, their agents, employees, contractors, subcontractors, etc which may occur on the subject property.  During this time the buyer may withdraw from escrow without penalty and the earnest money deposit shall be refunded minus any already incurred transaction fees or cancellation fees.  Buyer shall be solely responsible for any and all fees associated with the cancellation of escrow due to withdrawal.

3.

As consideration for entering into this agreement buyer shall provide the seller with legible copies of all documents which buyer obtains or procedures regarding this property during the escrow period (ie:  assay reports, geological reports, mining engineer reports, environmental reports, drill logs, maps, governmental reports, feasibility reports, historical reports, permit applications, permits, etc).  Copies of said documents shall be mailed by buyer to seller within 30 days of receipt or production of said documents.  Said documents shall be provided to seller at no charge to seller.

4.

All transaction costs shall be paid by buyer, including, but not limited to escrow fee, policy of title insurance, recording fees, Fedex charges, document preparation fees, natural hazard report, county documentary transfer tax, etc.

5.

Buyer shall retain the right to amend, and or change, vesting during escrow.

6.

Buyer hereby acknowledges that it may be the intent of the seller to effect a 1031 Tax Deferred Exchange, which shall not delay the closing or cause any additional expense to the buyer.  The seller’s rights under this agreement may be assigned to a qualified intermediary, for the purpose of completing such an exchange.  Buyer agrees to cooperate with the seller and a qualified intermediary to complete the exchange.

Seller’s Initials /s/ BDS   EKS

Buyer’s Initials  /s/ JCP   Page 2 of 4

7.

Proration of taxes shall be on the basis of the current taxes at close of escrow and no adjustments shall be made for any supplemental taxes due to reappraisal caused by the sale of this property.  Said supplemental taxes shall be the sole responsibility of the buyer.

8.

Buyer has been made aware of the following:

A.

One of the sellers, Bruce D. Stachan, is a retired, yet still licensed California Real Estate Broker.

B.

There exists a graduated scale royalty interest on any production from this property (3% - 7% depending upon the price of silver) at the time of production retained by Exxon-Mobil Corp.

9.

Escrow shall be cancelled automatically if any payment is not paid on or before the due date as listed in this document.

10.

Buyer and seller shall each execute separate escrow cancellation instructions for each payment due date.  Said cancellation instructions shall be used by escrow agent in the event that the buyer shall fail to make any of the payments which are enumerated in this proposal.

11.

Said cancellation instructions shall not be revoked unless said revocation is approved in writing by both buyer and seller.

12.

Any funds remaining in escrow shall be released to seller by escrow agent in the event of non-payment of the payment due on July 15, 2011 or July 15, 2012.

13.

Preliminary title report and title policy shall be issued by Chicago Title Company.

14.

Escrow agent shall be Chicago Title Company, Escrow Dept. 560 East Hospitality Dr. San Bernardino, CA  92408.  Phone (909) 390-3465.  Fax (909) 937-0905.

15.

This agreement shall be null and void and shall be automatically cancelled if escrow is not opened on or before December 15, 2009 with a deposit of $10,000.

We agree to sell APN: 0517-251-05 on the terms and conditions stated in this document.

/s/ Bruce D. Strachan

Dec 4, 2009

Bruce D. Strachan

Date

As Trustee of the Bruce and Elizabeth

Strachan Revocable Living Trust

Dated 7-25-09

Seller’s Initials /s/ BDS   EKS

Buyer’s Initials  /s/ JCP   Page 3 of 4

/s/ Elizabeth K. Strachan

Dec 4, 2009

Elizabeth K. Strachan

Date

As Trustee of the Bruce and Elizabeth

Strachan Revocable Living Trust

Dated 7-25-09

[address and phone number for Strachan intentionally omitted]

I agree to purchase APN:  0517-251-05 on the terms and conditions stated in this document.

/s/ John Power

12-7-09

John Power

Date

[address and phone number for Power intentionally omitted]

Seller’s Initials /s/ BDS   EKS

Buyer’s Initials  /s/ JCP   Page 4 of 4

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