Document:

EX-10.73

 Exhibit 10.73 
 EXECUTION COPY 
  

 
 GREAT
PLAINS NATURAL GAS COMPANY 
 SECOND
AMENDMENT AND WAIVER TO NOTE PURCHASE AGREEMENT 
 Dated as of April 9, 2012 
 Re: 

Note Purchase Agreement dated as of November 1, 2010, as heretofore amended 

and 
 Floating
Rate Senior Secured Guaranteed Notes due May 3, 2014 
  
  

 

 TABLE OF CONTENTS 

(Not a part of this Second Amendment and Waiver to Note Purchase Agreement) 

 

							
	SECTION	  	HEADING	  	PAGE	 
			
	SECTION 1.	  	AMENDMENTS TO CURRENT NOTE PURCHASE AGREEMENT	  	 	2	  
			
	SECTION 2.	  	LIMITED WAIVER	  	 	5	  
			
	SECTION 3.	  	CONDITIONS PRECEDENT	  	 	6	  
			
	SECTION 4.	  	REPRESENTATIONS AND WARRANTIES	  	 	7	  
			
	SECTION 5.	  	MISCELLANEOUS	  	 	8	  

  
 -i-

 GREAT PLAINS NATURAL GAS
COMPANY 
 8500 STATION STREET, SUITE 100 

MENTOR, OHIO 44060 
 SECOND AMENDMENT AND WAIVER TO NOTE PURCHASE AGREEMENT 

Dated as of April 9, 2012 
 RE: Note Purchase Agreement dated as of November 1, 2010, as heretofore amended 
 and 
 Floating Rate Senior Secured Guaranteed Notes due May 3, 2014 

To Sun Life Assurance Company of Canada 
 Ladies
and Gentlemen: 
 This Second Amendment and Waiver to Note Purchase Agreement (this “Amendment”) is made as of
April 9, 2012, by and among Great Plains Natural Gas Company, an Ohio corporation (the “Issuer”), Lightning Pipeline Company, Inc., an Ohio corporation (“Lightning”), Spelman Pipeline Holdings, LLC, an Ohio
limited liability company (“Spelman”), Kidron Pipeline, LLC, an Ohio limited liability company (“Kidron”), Gas Natural Service Company, LLC, an Ohio limited liability company (“Service Company”),
and Gas Natural Inc., an Ohio corporation (the “Parent”; the Parent, Lightning, Spelman, Kidron and Service Company are referred to herein, collectively, as the “Guarantors” and, individually, as a
“Guarantor”), and Sun Life Assurance Company of Canada (the “Purchaser”). 
 Reference is made
to the Note Purchase Agreement dated as of November 1, 2010, by and among the Issuer, Lightning, the Parent and the Purchaser, as amended by that certain First Amendment and Joinder to Note Purchase Agreement dated as of May 3, 2011, by
and among the Issuer, the Guarantors and the Purchaser (as so amended, the “Current Note Purchase Agreement”), pursuant to which, among other things, (i) the Issuer sold to the Purchaser its Floating Rate Senior Secured
Guaranteed Notes due May 3, 2014 in the original aggregate principal amount of $3,000,000 (the “Notes”) and (ii) each of the Guarantors agreed to jointly and severally guarantee the Guaranteed Obligations (as defined
therein). Capitalized terms used in this Amendment without definition shall have the meanings given such terms in the Current Note Purchase Agreement, as amended by this Amendment (as so amended, and as from time to time further amended, restated,
supplemented or otherwise modified, the “Note Purchase Agreement”). 
 For good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the Obligors request the amendment and waiver of certain provisions of the Current Note Purchase Agreement as hereinafter provided. 

			
	Great Plains Natural Gas Company	  	Second Amendment and Waiver
		  	to Note Purchase Agreement

  

Upon your acceptance hereof in the manner hereinafter provided and upon satisfaction of all conditions to the effectiveness hereof and
receipt by the Obligors of similar acceptances from the Purchaser, this Amendment shall be effective, but only in the respects hereinafter set forth: 
 SECTION 1. AMENDMENTS TO CURRENT NOTE PURCHASE AGREEMENT. 

Section 1.1. Additional Obligors. Section 9.8 of the Current Note Purchase Agreement is hereby amended by adding the
following sentence to the end thereof: 
 Notwithstanding the requirement to promptly comply with this Section 9.8, solely
with respect to Gas Natural Energy Solutions, LLC, an Ohio limited liability company (“Solutions”), and Independence Oil, LLC, an Ohio limited liability company (“Independence” and together with Solutions, the
“New Subsidiaries”), the Obligors shall be deemed to have timely complied with this Section 9.8 if, on or prior to May 31, 2012, such New Subsidiaries either (i) accede to this Agreement and the Collateral Documents
in accordance with the first sentence of this Section 9.8 or (ii) provide evidence detailing such Subsidiary’s inability to accede to this Agreement and the Collateral Documents in accordance with the second and third sentences of
this Section 9.8. 
 Section 1.2. Restricted Payments LC. Section 9 of the Current Note Purchase Agreement
is hereby amended by adding a new Section 9.11 at the end thereof as follows: 
 Section 9.11.
Restricted Payments LC. On or prior to May 15, 2012, the Purchaser shall have received delivery of an original irrevocable standby letter of credit (the “LC”) from PNC Bank, National Association or another bank reasonably
acceptable to the Purchaser (the “LC Issuer”), along with duly executed copies of any reimbursement agreement and any other documentation between any Obligor and the LC Issuer with respect to the LC, which LC shall include
the following terms: (i) shall be in favor of Sun Life Assurance Company of Canada; (ii) shall be in a face amount of $750,000; (iii) may be drawn upon by Sun Life Assurance Company of Canada if and when any Event of Default has
occurred and is continuing; (iv) shall remain outstanding until the earlier to occur of (x) the date on which (A) the aggregate amount of all Restricted Payments, determined as of the end of each fiscal quarter of the Parent for the
four fiscal quarters then ending, is less than 70% of the Ohio Group Net Income for the four fiscal quarters then ending, and (B) no Default or Event of Default then exists, each of which shall be confirmed in an Officer’s Certificate of a
Senior Financial Officer delivered to the Purchaser, or (y) the indefeasible payment in full of the 

			
	Great Plains Natural Gas Company	  	Second Amendment and Waiver
		  	to Note Purchase Agreement

  

Notes and all other Obligations under the Financing Agreements (the earlier of (x) and (y) shall be hereinafter referred to as the “LC Termination Date”); and
(v) shall otherwise be in form and substance reasonably acceptable to the Purchaser. Following the LC Termination Date, the LC shall terminate and the Purchaser shall return the LC to the LC Issuer within ten (10) Business Days with
instructions to cancel the undrawn portion of the LC. 
 Section 1.3. Restrictions on Dividends and Distributions.
Section 10.5 of the Current Note Purchase Agreement is hereby amended and restated in its entirety to read as follows: 
 Section 10.5. Restrictions on Dividends and Distributions. The Obligors shall not, and shall not permit any Restricted Subsidiary to, make any dividend, distribution, redemption or repurchase
(collectively, a “Restricted Payment”) with respect to the shares of capital stock or pursuant to any option, or put agreement (other than dividends and distributions which, in each case, consist solely of shares of capital stock)
if, (i) at the time of such Restricted Payment, an Event of Default or Default has occurred and is continuing or would be caused by such Restricted Payment, or (ii) with respect to the members of the Ohio Group (other than the Parent), the
Restricted Payment would cause the aggregate amount of all Restricted Payments, determined as of the end of each fiscal quarter of the Parent for the four fiscal quarters then ending, to exceed seventy percent (70%) of the Ohio Group Net Income
for the four fiscal quarters then ending. 
 For the avoidance of doubt, the Obligors shall not, and shall not
permit any Restricted Subsidiary to, make any Restricted Payment at any time prior to the LC Termination Date. 

Section 1.4. Events of Default. Section 11(c) of the Current Note Purchase Agreement is hereby amended by deleting the
phrase “the Issuer” therein and adding the phrase “an Obligor” in lieu thereof. 
 Section 1.5.
Amendment to the defined term “Consolidated Coverage Ratio”. The definition of “Consolidated Coverage Ratio” set forth in Schedule B of the Current Note Purchase Agreement is hereby amended effective October 1,
2011 by deleting the term “Consolidated EBIT” therein and adding the term “Consolidated EBITDA” in lieu thereof. 

			
	Great Plains Natural Gas Company	  	Second Amendment and Waiver
		  	to Note Purchase Agreement

  

Section 1.6. Amendment to the defined term “Consolidated EBIT”. The definition of “Consolidated
EBIT” set forth in Schedule B of the Current Note Purchase Agreement is hereby amended effective October 1, 2011 by (i) renaming the term “Consolidated EBITDA” and (ii) amending and restating the definition
thereof in its entirety to read as follows: 
 “Consolidated EBITDA” means, for any period, the
sum of Consolidated Net Income, plus (to the extent deducted in computing Consolidated Net Income) the sum of (i) interest expense, (ii) any provision for federal, state and local income taxes, (iii) depreciation and
(iv) amortization, each of the foregoing determined on a consolidated basis for the Parent and its Subsidiaries in accordance with GAAP, but excluding from such calculation any extraordinary non-operating income or loss and any gain or loss
from any non-recurring transactions. 
 Section 1.7. Amendment to the defined term “Consolidated Net Income”.
The definition of “Consolidated Net Income” set forth in Schedule B of the Current Note Purchase Agreement is hereby amended effective October 1, 2011 by adding the following sentence at the end thereof: 

To the extent determined in the calculation thereof, all legal fees and expenses in connection with the audit disagreement between the
members of the Ohio Group and the Public Utilities Commission of Ohio that were incurred by the members of the Ohio Group during the fiscal year ended December 31, 2011 in an aggregate amount of up to $329,518, shall be excluded from the
determination of Consolidated Net Income for purposes of calculating the Obligors’ compliance with Section 10.4(b) for each testing period ending during such fiscal year. 

Section 1.8. Amendment to the defined term “Ohio Group Coverage Ratio”. The definition of “Ohio Group
Coverage Ratio” set forth in Schedule B of the Current Note Purchase Agreement is hereby amended effective October 1, 2011 by deleting the term “Ohio Group EBIT” therein and adding the term “Ohio Group EBITDA” in
lieu thereof. 
 Section 1.9. Amendment to the defined term “Ohio Group EBIT”. The definition of
“Ohio Group EBIT” set forth in Schedule B of the Current Note Purchase Agreement is hereby amended effective October 1, 2011 by (i) renaming the term “Ohio Group EBITDA” and (ii) amending and
restating the definition thereof in its entirety to read as follows: 
 “Ohio Group EBITDA”
means, for any period, the sum of Ohio Group Net Income, plus (to the extent deducted in computing Ohio Group Net Income) the sum of (i) interest expense, (ii) any provision for federal, state and local income taxes,
(iii) depreciation and (iv) amortization, each of the foregoing determined on a consolidated basis for the members of the Ohio Group in accordance with GAAP, but excluding from such calculation any extraordinary non-operating income or
loss and any gain or loss from any non-recurring transactions. 

			
	Great Plains Natural Gas Company	  	Second Amendment and Waiver
		  	to Note Purchase Agreement

  

Section 1.10. Amendment to the defined term “Ohio Group Net Income”. The definition of “Ohio Group Net
Income” set forth in Schedule B of the Current Note Purchase Agreement is hereby amended effective October 1, 2011 by adding the following sentence at the end thereof: 

To the extent determined in the calculation thereof, all legal fees and expenses in connection with the audit
disagreement between the members of the Ohio Group and the Public Utilities Commission of Ohio that were incurred by the members of the Ohio Group during the fiscal year ended December 31, 2011 in an aggregate amount of up to $329,518, shall be
excluded from the determination of Ohio Group Net Income for purposes of calculating the Obligors’ compliance with Section 10.4(a) for each testing period ending during such fiscal year. 

Section 1.11. Amendment to add the new defined term “LC Termination Date”. Schedule B to the Current Note Purchase
Agreement is hereby further amended by adding the following new definition thereto in proper alphabetical order: 

“LC Termination Date” is defined in Section 9.11. 

SECTION 2. LIMITED WAIVER. 
 Section 2.1. Specified Defaults. 
 (a) Restrictions on Dividends
and Distributions. The Obligors have advised the Purchaser that (i) an Event of Default has occurred and is continuing under Section 11(c) of the Current Note Purchase Agreement for the fiscal year ending December 31, 2011 by
reason of the Obligors making certain Restricted Payments during such fiscal year in the aggregate amount of $1,630,704.96 (the “2011 Payments”) that exceeded 60% of Ohio Group Net Income for the fiscal year 2011 in violation of
Section 10.5(ii) of the Current Note Purchase Agreement and (ii) a separate Event of Default has occurred and is continuing under Section 11(c) of the Current Note Purchase Agreement by reason of the Obligors making certain additional
Restricted Payments on January 31, 2012 in the aggregate amount of $135,892.08 (the “2012 Payments”, and together with the 2011 Payments, the “Specified Payments”) at a time when an Event of Default was in
existence in violation of Section 10.5(i) of the Note Purchase Agreement (the Events of Default described in the foregoing clauses (i) and (ii) are collectively referred to as the “Section 10.5 Defaults”). 

(b) Additional Obligors. The Obligors have advised the Purchaser that an Event of Default has occurred and is continuing under
Section 11(d) of the Current Note Purchase Agreement by reason of the Obligors’ failing to cause Independence and Solutions to timely accede to (or demonstrate why such Subsidiaries cannot accede to) the Current Note Purchase Agreement and
the Collateral Documents in violation of Section 9.8 of the Current Note Purchase Agreement (the “Section 9.8 Default” and together with the Section 10.5 Defaults, the “Specified Defaults”). 

			
	Great Plains Natural Gas Company	  	Second Amendment and Waiver
		  	to Note Purchase Agreement

  

Section 2.2. Waiver of Specified Defaults. 
 (a) Restrictions on Dividends and Distributions. Upon the effectiveness of this Amendment, the Purchaser hereby waives the Section 10.5 Defaults. Upon the effectiveness of this Amendment, the
Purchaser also hereby waives any Event of Default that may occur under Section 10.5(ii) of the Note Purchase Agreement for any of the fiscal quarters ending March 31, 2012, June 30, 2012, September 30, 2012 and
December 31, 2012 solely as a result of the Specified Payments (but no other Restricted Payments). For the avoidance of doubt, the Specified Payments shall be included as “Restricted Payments” for all purposes under the Note Purchase
Agreement, including, without limitation, (i) determining the aggregate amount of Restricted Payments as of March 31, 2012, June 30, 2012, September 30, 2012 and December 31, 2012 for the period of four fiscal
quarters ending on each such date, that are permitted to be made under Section 10.5(ii) of the Note Purchase Agreement, and (ii) determining the LC Termination Date. 

(b) Additional Obligors. Upon the effectiveness of this Amendment, the Purchaser hereby waives the Section 9.8 Default and,
in exchange therefore, the Obligors hereby agree to timely comply with Section 9.8 of the Note Purchase Agreement. 

Section 2.3. Limitation on Waiver. The foregoing waivers shall not constitute a waiver of any other existing or future
Default, Event of Default, or other breach or violation of any term of the Current Note Purchase Agreement, the Note Purchase Agreement or any of the Financing Agreements. Without limiting the foregoing, the Obligors hereby acknowledge and agree
that the Purchaser’s execution of this Amendment shall not be construed as a release, waiver, or modification of any of the terms, conditions, representations, warranties, covenants, rights, or remedies set forth in the Current Note Purchase
Agreement or the other Financing Agreements, except as provided herein. The foregoing waivers are not intended to, nor shall they, establish any course of dealing among the Obligors and the Purchaser and shall not constitute a continuing waiver of
any kind. 
 SECTION 3. CONDITIONS PRECEDENT. 

This Amendment shall not become effective until, and shall become effective on, the Business Day when each of the following conditions
shall have been satisfied (the “Effective Date”): 
 (a) The Purchaser shall have received this
Amendment, duly executed by each Obligor. 
 (b) The Purchaser shall have consented to this Amendment as
evidenced by its execution hereof. 
 (c) The representations and warranties of the Obligors set forth in
Section 4 hereof shall be true and correct as of the date of the execution and delivery of this Amendment and as of the Effective Date. 

			
	Great Plains Natural Gas Company	  	Second Amendment and Waiver
		  	to Note Purchase Agreement

  

(d) Any consents from any holder or holders of any outstanding security or indebtedness of the Obligors and any amendments
of agreements pursuant to which any securities or indebtedness may have been issued which shall be necessary to permit the consummation of the transactions contemplated hereby shall have been obtained and all such consents or amendments shall be
reasonably satisfactory in form and substance to the Purchaser and its special counsel. 
 (e) The Purchaser
shall have received all reasonable and necessary final, non-appealable regulatory and other approvals in respect of the transactions contemplated by this Amendment and evidence that in respect of the transactions contemplated by this Amendment, the
Obligors are in compliance with all applicable regulatory and statutory requirements. 
 (f) All corporate and
other proceedings in connection with the transactions contemplated by this Amendment and all documents and instruments incident to such transactions shall be satisfactory to the Purchaser and its special counsel, and the Purchaser and its special
counsel shall have received all such counterpart originals or certified or other copies of such documents as the Purchaser or its special counsel may reasonably request. 

(g) The Purchaser shall have received such certificates of officers of the Obligors as it may reasonably request with
respect to this Amendment and the transactions contemplated hereby. 
 (h) The Obligors shall have paid the fees
and disbursements of the Purchaser’s special counsel, Chapman and Cutler LLP, incurred in connection with the negotiation, preparation, execution and delivery of this Amendment and the transactions contemplated hereby (which fees and
disbursements shall be reflected in the statement of such special counsel delivered to the Obligors at least one Business Day prior to the proposed Effective Date). 

(i) The Purchaser shall have received by wire transfer to its account specified in Schedule A to the Note Purchase
Agreement (or otherwise specified to the Obligors in a separate writing) a non-refundable amendment fee equal to $5,000. 

SECTION 4. REPRESENTATIONS AND WARRANTIES. 

The Obligors hereby, jointly and severally, represent and warrant to the Purchaser that as of the date of execution and delivery of this
Amendment and as of the Effective Date: 
 (a) Each Obligor is duly organized, validly existing and in good
standing under the laws of its jurisdiction of organization. 
 (b) Each Obligor has the requisite power to own
its property and to carry on its business as now being conducted. 

			
	Great Plains Natural Gas Company	  	Second Amendment and Waiver
		  	to Note Purchase Agreement

  

(c) Each Obligor is duly qualified and in good standing as a foreign corporation or limited liability company, as
applicable, authorized to do business in each jurisdiction in which the failure to do so would, individually or in the aggregate, have a Material Adverse Effect. 

(d) This Amendment, the Note Purchase Agreement and the transactions contemplated hereby are within the requisite powers
of each Obligor, have been duly authorized by all necessary corporate or limited liability company action, as applicable, on the part of each Obligor, and this Amendment and the Note Purchase Agreement have been duly executed and delivered by each
Obligor and constitute legal, valid and binding obligations of each Obligor enforceable in accordance with their respective terms. 
 (e) After giving effect to this Amendment, there are no Defaults or Events of Default under the Note Purchase Agreement. 

(f) The execution, delivery and performance of this Amendment and the Note Purchase Agreement do not and will not result
in a violation of or default under (i) the organizational documents of any Obligor, (ii) any agreement to which any Obligor is a party or by which any Obligor is bound or to which any Obligor or any of its properties is subject,
(iii) any order, writ, injunction or decree binding on any Obligor, or (iv) any statute, regulation, rule or other law applicable to any Obligor. 
 (g) No consent, approval or authorization of, or registration, filing or declaration with, any Governmental Authority is required in connection with the execution, delivery or performance by the Obligors
of this Amendment. 
 (h) All of the representations and warranties of the Obligors set forth in Section 5
of the Current Note Purchase Agreement, other than those contained in Sections 5.3, 5.4, 5.5, 5.13, 5.14, 5.15 and the last sentence of Section 5.22, are true and correct in all respects. 

SECTION 5. MISCELLANEOUS. 
 Section 5.1. Ratification of the Current Note Purchase Agreement. Except as amended herein, all terms and provisions of the Current Note Purchase Agreement and related agreements and
instruments are hereby ratified, confirmed and approved in all respects. If and to the extent that any of the terms or provisions of the Current Note Purchase Agreement are in conflict or inconsistent with any of the terms or provisions of this
Amendment, this Amendment shall govern. 
 Section 5.2. References to the Note Purchase Agreement. Each
reference in the Current Note Purchase Agreement to “this Agreement,” “hereunder,” “hereof,” or words of similar import in instruments or documents provided for in the Current Note Purchase Agreement or delivered or to
be delivered thereunder or in connection therewith, shall, except where the context otherwise requires, be deemed a reference to the Note Purchase Agreement. 

			
	Great Plains Natural Gas Company	  	Second Amendment and Waiver
		  	to Note Purchase Agreement

  

Section 5.3. Governing Law. This Amendment shall be construed and enforced in accordance with, and the rights of the parties
shall be governed by, the law of the State of Ohio excluding choice-of-law principles of the law of such State that would permit the application of the laws of a jurisdiction other than such State. 

Section 5.4. Survival. All warranties, representations, and covenants made by the Obligors herein will be considered to have
been relied upon by the Purchaser and will survive the execution and delivery of this Amendment. 
 Section 5.5.
Successors and Assigns. This Amendment will inure to the benefit of and be binding upon the successors and assigns of each of the parties. The provisions of this Amendment for the benefit of the Purchaser are intended in all cases, whether
explicitly so stated or not, to be for the benefit of all holders, from time to time, of the Notes, and will be enforceable by any such holder, whether or not an express assignment to such holder of rights under this Amendment has been made by the
Purchaser or its successors or assigns. 
 Section 5.6. Counterparts. This Amendment may be executed in any number
of counterparts, each of which shall be deemed to be an original and all of which, taken together, shall constitute but one and the same Amendment. Delivery of an executed counterpart of this Amendment by facsimile or email shall be as effective as
delivery of a manually executed counterpart of this Amendment. 
 Section 5.7. Severability. Whenever possible, each
provision of this Amendment will be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Amendment is held to be prohibited by or invalid under applicable law, such provision will be ineffective
only to the extent of such prohibition or invalidity, without invalidating the remainder of this Amendment unless the consummation of the transactions contemplated hereby is materially adversely affected thereby. 

Section 5.8. No Novation. This Amendment shall, in no way, be deemed as a novation of the terms of the Current Note Purchase
Agreement. 
 Section 5.9. Further Assurances. At the Obligors’ expense, the parties hereto shall execute and
deliver such additional documents and take such further action as may be necessary or desirable to effectuate the provisions and purposes of this Amendment. 
 [REMAINDER OF PAGE INTENTIONALLY BLANK] 

			
	Great Plains Natural Gas Company	  	Second Amendment and Waiver
		  	to Note Purchase Agreement

  

The execution hereof by the Purchaser shall constitute a contract among the Obligors and the Purchaser for the uses and purposes
hereinabove set forth. This Amendment may be executed in any number of counterparts, each executed counterpart constituting an original but all together only one agreement. 

 

			
	GREAT PLAINS NATURAL GAS COMPANY, as a
	    Guarantor
		
	By	 	/s/ Thomas J. Smith
		 	Name: Thomas J. Smith
		 	Title:   Chief Financial Officer

  

			
	LIGHTNING PIPELINE COMPANY, INC., as a
	    Guarantor
		
	 By
	 	 /s/ Thomas J. Smith

		 	 Name: Thomas J. Smith

		 	 Title:   Chief Financial Officer

  

			
	KIDRON PIPELINE, LLC, as a Guarantor
	
	 BY NORTHEAST OHIO NATURAL GAS
CORP.,

	     Sole Member

		
	 By
	 	/s/ Thomas J. Smith
		 	Name: Thomas J. Smith
		 	Title:   Chief Financial Officer

			
	Great Plains Natural Gas Company	  	Second Amendment and Waiver
		  	to Note Purchase Agreement

  

 

			
	SPELMAN PIPELINE HOLDINGS, LLC, as a
	    Guarantor
	
	 BY LIGHTNING PIPELINE COMPANY, INC.,
Sole

	     Member

		
	 By
	 	/s/ Thomas J. Smith
		 	Name: Thomas J. Smith
		 	Title:   Chief Financial Officer

  

			
	GAS NATURAL SERVICE COMPANY, LLC, as a
	    Guarantor
		
	 By
	 	/s/ Richard M. Osborne
		 	Name: Richard M. Osborne
		 	Title:   Manager

  

			
	GAS NATURAL INC., as a Guarantor
		
	 By
	 	/s/ Thomas J. Smith
		 	Name: Thomas J. Smith
		 	Title:   Chief Financial Officer

			
	Great Plains Natural Gas Company	  	Second Amendment and Waiver
		  	to Note Purchase Agreement

  

This Amendment is hereby accepted and agreed to as of the date aforesaid. 

 

			
	SUN LIFE ASSURANCE COMPANY OF CANADA
		
	By	 	/s/ Paul Sinclair
		 	Name: Paul Sinclair
		 	Title:   Managing Director
		 	Head of Private Debt
		 	Private Fixed Income

  

			
	By	 	/s/ John Chamberlain
		 	Name: John Chamberlain
		 	Title:   Senior Director
		 	Private Fixed IncomeUnassociated Document

 

Exhibit 10.1

 

EMPLOYMENT CONTRACT

BETWEEN:  Wuhan Fengze Agricultural Science and Technology Development Co., Ltd., a company legally incorporated under the laws of People’s Republic of China, (Mailing address: Suite F, 23rd Floor, Building B, Jiangjing Mansion, 228 Yanjiang Ave., Jiang’an District, Wuhan City, Hubei Province) acting and represented herein by Ms. Hanying Li, chairwoman of the board, declaring duly authorized, (Hereinafter referred to "Fengze")

 

AND:   Mr. Guofu Zhang, residing at Room 701, Unit 2#, 207 Baibuyating, Baibuting Garden Road, Jiang’an District, Wuhan City, Hubei Province  (hereinafter referred to "Mr. Guofu Zhang")

 

(Fengze and Mr. Guofu Zhang hereinafter collectively called "Parties")

 

1. PREAMBLE

 

The preamble is an integral part of this contract.

 

WHEREAS FENGZE requires the services of Mr. Guofu Zhang as Chief Financial Officer (CFO);

 

WHEREAS, Mr. Guofu Zhang agreed to provide FENGZE his full-time services as CFO;

 

WHEREAS the parties wish to confirm their agreement in writing;

 

WHEREAS the parties have the capacity and quality of exercise all the rights necessary for the conclusion and implementation of the agreement found in this contract;

 

THEREFORE THE FOREGOING, THE PARTIES AGREE AS FOLLOWS:

 

2. PURPOSE

 

2.1 Services

 

Mr. Guofu Zhang agrees to assume full-time for FENGZE (minimum of forty (40) hours per week) the role of CFO during the entire duration of the contract;

 

2.2 Term

 

This contract is for an initial term of 33 months( From April 06, 2012 to December 31, 2014) renewable for an additional period of   24   months unless either party terminates it in writing at least three (3) months before the expiration of the initial term;

 

3. CONSIDERATION

 

3.1 Service Awards

 

In consideration of the provision of services, FENGZE to pay Mr. Guofu Zhang, as compensation;

 

The gross amount of RMB 480,000 ($76,190 US dollars) annually is constituted by a basis compensation of RMB 240,000 ($38,095 US dollars) and a conditional Year-end awards that no more than RMB 240,000 ($38,095 US dollars).

The basis compensation is calculated at the rate of twelve (12) equal monthly installments consecutively of RMB 20,000 ($3,175 US dollars) each, less withholding taxes applicable.

The Year-end award shall only be paid under the condition of 3.3.3

 

  

  

  

 

3.2 Expenditure incurred

 

FENGZE will reimburse Mr.Guofu Zhang all reasonable expenses incurred in connection with this Agreement, upon presentation of appropriate documentation;

 

3.3 Terms and conditions of payment

 

3 .3.1The price payable by FENGZE to Mr.Guofu Zhang is as follows:

 

3.3.2 The sum of RMB 20,000 ($3,175 US dollars) shall be paid on the 6th of each month from April 6th, 2012.

 

3.3.3 The sum of Year-end award shall be paid on the Dec 31, 2012, Dec 31, 2013 and Dec 31, 2014 only under the condition that FENGZE’s annual profit reach or over 50% of its last year’s annual profit. And the data of each FENGZE’s annual profit shall in accordance with audit report issued at the end of corresponding year.

3.3.4 Expenses will be reimbursed on presentation of an expense account on the 24th of each month.

 

4. SPECIAL PROVISIONS

 

4.1 Obligations of FENGZE

 

FENGZE agrees and undertakes to Mr. Guofu Zhang as follows:

 

FENGZE to bring Mr. Guofu Zhang collaboration and will provide information necessary to ensure the full and faithful discharge of services to be rendered;

 

4.2 Obligation to MR.GUOFU ZHANG

 

Mr. Guofu Zhang agrees and undertakes to FENGZE to the following:

The services must be made full time in a professional manner, according to the rules generally accepted by industry.

 

4.3 Commitment to confidentiality and nondisclosure

 

Mr. Guofu Zhang recognizes that certain disclosures to be provided by FENGZE have or may have considerable strategic importance, and therefore represent trade secrets for purposes of this contract. During the term of this Contract and for a period of   36 months following the end of it, Mr. Guofu Zhang is committed to FENGZE to:

 

a) keep confidential and not disclose the information;

 

b) take and implement all appropriate measures to protect the confidentiality of the information;

 

c) not disclose, transmit, exploit or otherwise use for its own account or for others, elements of information;

 

4.4 Exclusivity of service provider

 

During the term of this Contract and for a period of   24   months following the end of it, Mr. Guofu Zhang is committed to FENGZE not render services to or for direct or indirect competitors of FENGZE.

 

4.5 Responsibilities

	
4.5.1

	
Maintain executive responsibility for financial operations, including working capital, capital expenditures, debt levels, taxes, budget, and general accounting.

	
4.5.2

	
Develop and direct financial plans to the strategic business plan, company growth, and market opportunities and direction.

 

  

  

  

 

	
4.5.3

	
Establish and maintain stable cash flow management policies and procedures, and ensure cash resources are available for daily operations and business and product development.

	
4.5.4

	
Set-up and/or oversee all financial and operational controls and metrics within the organization.

	
4.5.4

	
Analyze current and future business operations and plans to determine financial effectiveness.

	
4.5.5

	
Manage outside lending and equity relationships, as well as relations with investors and shareholders within the investment community.

	
4.5.6 

	
Prepare and file federal, state, third-party, and other financial reports to ensure compliance with GAAP,   SEC, and IRS and other taxing entity requirements.

	
4.5.7

	
Establish the performance goals, allocate resources, and assess policies for employees, through other managers.

 

4.6 Relationship between the parties

 

Neither party may bind the other in any way whatsoever to anyone, except in accordance with the provisions of this contract.

 

4.7 Representations and Warranties Mr. Guofu Zhang

 

Mr. Guofu Zhang represents and warrants to FENGZE that:

 

a) he has the capacity required to undertake under this contract, such capacity was not limited by any commitment to another person;

 

b) he has the expertise and experience required to execute and complete the its obligations under this contract;

 

c) he will make services efficient and professional manner, according to the rules generally accepted by industry;

 

4.8 Termination of Contract

 

Either party may terminate this contract at any time, upon presentation of a 60 days notice given to the other party. Amounts due and options purchases of shares will be delivered when calculated on a pro-rata to the time elapsed since the last payment or the last delivery of stock options.

 

5. GENERAL PROVISIONS

 

Unless specific provision to the contrary in this Agreement, the following provisions apply.

 

5.1 Force Majeure

 

Neither party can be considered in default under this contract if the performance of its obligations in whole or in part is delayed or prevented by following a force majeure situation. Force majeure is an external event, unforeseeable, irresistible and it absolutely impossible to fulfill an obligation.

 

5.2 Severability

 

The possible illegality or invalidity of an article, a paragraph or provision (or part of an article, a paragraph or provision) does not in any way affect the legality of other items, paragraphs or provisions of this contract, nor the rest of this article, this paragraph or provision unless a contrary intention is evident in the text.

 

  

  

  

 

5.3 Notices

 

Any notice to a party is deemed to have been validly given if in writing and sent by registered or certified mail, by bailiff or by courier to such party at the address listed at the beginning of this contract or any other address that the party may indicate a similar notice to another party. A copy of any notice sent by mail must be sent by one mode of delivery mentioned above.

 

5.4 Titles

 

The headings used in this contract are only for reference and convenience only. They do not affect the meaning or scope of the provisions they designate.

 

5.5 No Waiver

 

The inertia, neglect or delay by any party to exercise any right or remedy under this Agreement shall in no way be construed as a waiver of such right or remedy.

 

5.6 Rights cumulative and not alternative

 

All the rights mentioned in this Agreement are cumulative and not alternative. The waiver of a right should not be construed as a waiver of any other right.

 

5.7 Totality and entire agreement

 

This contract represents the full and entire agreement between the parties. No statement, representation, promise or condition not contained in this agreement can and should be allowed to contradict, modify or affect in any manner whatsoever the terms thereof.

 

5.8 Contract Amendment

 

This contract may be amended only by a writing signed by all parties.

 

5.9 Gender and Number

 

All words and terms used in this agreement shall be interpreted as including the masculine and feminine and singular and plural as the context or meaning of this contract.

 

5.10 Assignable

 

Neither party may assign or otherwise transfer to any third party or of his rights in this contract without the prior written permission of the other party to that effect.

 

5.11 Computation of time

 

In computing any period fixed by the contract:

 

a) the day that marks the starting point is not counted, but the terminal is;

 

b) non-juridical days (Saturdays, Sundays and holidays) are counted;

 

c) when the last day is not legal, the deadline is extended to the next juridical day.

 

5.12 Currencies

 

All sums of money under this contract refer to Chinese currency.

 

  

  

  

 

5.13 Applicable Laws

 

This contract is subject to the laws of the People’s Republic of China.

 

5.14 Election of domicile

 

The parties agree to elect domicile in the judicial district of Wuhan,China , and chose it as the appropriate district to hear any claim arising from the interpretation, application, performance, the entry into force, validity and effect of this contract.

 

5.15 Copies

 

When initialed and signed by all parties, each copy of this contract shall be deemed an original, but these examples do not reflect all one and the same agreement.

 

5.16 Scope of Contract

 

This contract binds the parties and their successors, heirs and assigns, respectively.

 

5.17 Solidarity

 

If a party consists of two or more persons, they are forced and severally liable to the other party.

 

5.18 Time is of Essence

 

If a party must fulfill an obligation under this contract within a specified time, the passage of time will effectively be part of this notice.

 

6. EFFECTIVE DATE OF CONTRACT

 

This Agreement shall enter into force April 6th, 2012.

 

SIGNED BY Two (2) copies,

 

IN THE CITY OF WUHAN, HUBEI PROVINCE, 

DATED: April 6th, 2012.

  

Wuhan Fengze Agricultural Science and Technology Development Co., Ltd

 

By: /s/ Hanying Li

       Hanying Li

 

Mr. Guofu Zhang

 

 

/s/Guofu Zhang

Guofu Zhang

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00202-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00202-of-00352.parquet"}]]