Document:

exhibit.htm

    Exhibit 10.1

    

 

    AMENDMENT
NUMBER ONE TO THE

    PURCHASE
AGREEMENT

    

    dated as
of

    

    February
3, 2010

    

    between

    

    CONSECO,
INC.

    

    and

    

    MORGAN
STANLEY & CO. INCORPORATED

    

    relating
to the purchase and sale

    

    of

    

    UP TO $293,000,000 AGGREGATE PRINCIPAL
AMOUNT

    

    7.0%
CONVERTIBLE SENIOR NOTES DUE 2016

    

    of

    

    CONSECO,
INC.

     

     

     

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    This
AMENDMENT NUMBER ONE TO THE PURCHASE AGREEMENT, dated February 3, 2010 (the
“Amendment”), is entered
into by Conseco, Inc. (the “Company”) and Morgan Stanley
& Co. Incorporated (“Morgan
Stanley”).

     

    WITNESSETH:

     

    WHEREAS,
on October 14, 2009, the Company and Morgan Stanley entered into a Purchase
Agreement (the “Agreement”) pursuant to which
the Company has agreed to issue and sell to Morgan Stanley, as initial
purchaser, and Morgan Stanley has agreed to buy from the Company, subject to the
conditions set forth therein, up to $293,000,000 aggregate principal amount of
Securities on any Tender Offer Closing Date, the Put Right Closing Date or the
Redemption Closing Date;

     

    WHEREAS,
the Company seeks to repurchase its outstanding Existing Convertibles from
holders thereof pursuant to privately negotiated transactions and issue and sell
to Morgan Stanley an aggregate principal amount of Securities equal to the
aggregate principal amount of Existing Convertibles repurchased by the Company
in such transactions; and

    

    WHEREAS,
the Company and Morgan Stanley have determined that the Agreement should be
amended as set forth herein.

     

    NOW,
THEREFORE, in consideration of the mutual promises contained herein, the parties
hereto hereby agree as follows:

     

    Section
1. Amendments to the
Agreement.

     

    (a)   The
second paragraph of the Preamble to the Agreement shall be deleted and replaced
with the following:

     

    “As
described in Section 2, the Company will, upon receipt of payment therefor,
issue Securities as follows: (a) on the closing date for the cash tender offer
for any and all of its outstanding 3.50% Convertible Debentures due September
30, 2035 (the “Existing
Convertibles”) that it intends to commence soon after the execution of
this Agreement and, if any Existing Convertibles remain outstanding, on the
closing date for any subsequent issuer tender offer for the Existing
Convertibles that expires before October 5, 2010, (each, a “Tender Offer” and
collectively, the “Tender
Offers”), (b) on the closing date for any privately negotiated repurchase
by the Company of any of its outstanding Existing Convertibles that settles
before October 5, 2010 (each, a “Repurchase” and collectively,
the “Repurchases”), (c)
if any Existing Convertibles remain outstanding, on September 30, 2010, the date
the holders of the Existing Convertibles are entitled to require the Company to
repurchase such securities pursuant to their terms (if such holders exercise
their repurchase right), and (d) if any Existing Convertibles remain
outstanding, on October 5, 2010, the date the

    
      
         

      

      
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    Company
is entitled to redeem from the holders thereof the Existing Convertibles
pursuant to their terms (if the Company exercises its redemption
right).”

    

    (b)   The
fourth paragraph of the Preamble to the Agreement shall be deleted and replaced
with the following:

    

    “The
Private Placement, the Tender Offers, any Repurchases and the offer and sale of
the Securities are hereinafter referred to as the “Transactions”. The Indenture
and this Agreement are hereinafter referred to as the “Transaction Agreements.”
Except where the context expressly provides for the contrary, the
representations, warranties and other provisions of this Agreement should not be
interpreted as referring to the Tender Offers, any Repurchases or the Private
Placement.”

    

    (c)   Section
2 of the Agreement shall be deleted and replaced with the
following:

     

    “Agreements to Sell and
Purchase.  The Company hereby agrees to sell to the Initial
Purchaser, and the Initial Purchaser, upon the basis of the representations and
warranties herein contained, but subject to the conditions hereinafter stated,
agrees to purchase from the Company the Securities at a purchase price equal to
the aggregate principal amount of the Securities purchased on the applicable
Closing Date (as defined below) multiplied by (1 – (0.07 x N/365)), where N
equals the number of days from, and including, the Effectiveness Date to, and
excluding, the applicable Closing Date, less an amount equal to 2% of the
aggregate principal amount of such Securities, (the “Purchase Price”), as
follows:

    

    
      	
              i.  

            	
              On
      each date that a Tender Offer settles (a “Tender Offer Closing
      Date”), the Initial Purchaser will purchase an aggregate principal
      amount of Securities equal to the aggregate principal amount of Existing
      Convertibles accepted for purchase by the Company in each such Tender
      Offer; 

            

    

    

    
      	
              ii.  

            	
              On
      each date that a Repurchase settles (a “Repurchase Closing
      Date”), the Initial Purchaser will purchase an aggregate principal
      amount of Securities equal to the aggregate principal amount of Existing
      Convertibles repurchased by the Company in each such
      Repurchase;

            

    

    

    
      	
              iii.  

            	
              On
      September 30, 2010 (the “Put Right Closing
      Date”), the Initial Purchaser will purchase the aggregate principal
      amount of Existing Convertibles remaining after the completion of the
      Tender Offers and any Repurchases, if any, that the Company is required by
      holders thereof to repurchase pursuant to the terms of the Existing
      Convertibles; and

            

    

    

    
      	
              iv.  

            	
              On
      October 5, 2010 (the “Redemption  Closing
      Date”), the Initial Purchaser will purchase the aggregate principal
      amount of Existing

            

    

    
      
         

      

      
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    Convertibles
remaining after the completion of the Tender Offers, any Repurchases and the Put
Right Closing Date, if any, that the Company elects to redeem from the holders
thereof pursuant to the terms of the Existing Convertibles.

    

    Any
Tender Offer Closing Date, any Repurchase Closing Date, the Put Right Closing
Date, and the Redemption Closing Date, each a “Closing Date,” are
collectively referred to herein as the “Closing Dates”. For the
avoidance of doubt, even if any Existing Convertibles remain outstanding on the
Redemption Closing Date, the Company shall be under no obligation to sell and
the Initial Purchaser shall be under no obligation to buy, any Securities
subsequent to the Redemption Closing Date and this Agreement shall immediately
terminate without any obligation or liability of either party (or any
stockholder, director, officer, employee, agent, consultant or representative of
such party) to the other party to this Agreement by reason of this Agreement,
provided that Section 9 and Section 11 shall survive any such
termination.

    

    Notwithstanding
anything to the contrary set forth herein, but subject to the conditions set
forth in Section 5, this Agreement (including the Initial Purchaser’s obligation
to purchase and pay for the Securities on each Closing Date, upon satisfaction
of the conditions set forth in Section 6), shall become effective two Business
Days (as defined below) after execution and delivery of this Agreement by the
parties hereto (such date, the “Effectiveness Date”). For
purposes of this Agreement, a “Business Day” means each
Monday, Tuesday, Wednesday, Thursday and Friday which is not a day on which
banking institutions in New York City or the City of Chicago are authorized or
obligated by law or executive order to close.”

    

     

    Section
2. Effectiveness

     

    This
Amendment shall become effective upon execution by the parties
hereto.

     

    Section
3. Reference to and Effect on
the Agreement.

     

    (a)   On
and after the date of this Amendment, each reference in the Agreement to “this
Agreement,” “hereunder,” “hereof,” or “herein” shall mean and be a reference to
the Agreement as amended by this Amendment.

     

    (b)   Except
as specifically amended above, the Agreement shall remain in full force and
effect and is hereby ratified and confirmed.

     

    Section
4. Due Authorization,
Execution and Delivery.

     

    Each of
the Company and Morgan Stanley represents and warrants that this Amendment has
been duly authorized, executed and delivered by it.

     

    
      
         

      

      
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    Section
5. Governing
Law.

     

    THIS
AMENDMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE INTERNAL
LAWS OF THE STATE OF NEW YORK.

    

    Section
6. Defined
Terms.

     

    Capitalized
terms used herein and not otherwise defined shall have the respective meanings
given such terms in the Agreement.

     

    Section
7. Counterparts and Method of
Execution.

     

    This
Amendment may be executed in any number of counterparts, each of which shall be
deemed to be an original, but all such counterparts shall constitute but one and
the same instrument.

     

    Section
8. Headings.

     

    The
headings of the sections of this Amendment have been inserted for convenience of
reference only and shall not be deemed a part of this Amendment.

     

    

     

    

     

    

     

    

     

    

     

    

     

    

     

    

    [Signature
Page Follows]

    
      
         

      

      
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    IN
WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed
and delivered by their duly authorized officers as of the date first written
above.

    

    CONSECO,
INC.

    

    By:    /s/ Karl W.
Kindig 

    Name:  Karl
W. Kindig

    Title:  Secretary

    

    

    MORGAN
STANLEY & CO. INCORPORATED

    

    By:     /s/
Kenneth G. Pott 

    Name:  Kenneth
G. Pott

    Title:  Managing
Director

    

    

    

    
      
         

      

      
        6ex10_1.htm

 

SUPERIOR COURT OF THE STATE OF CALIFORNIA

 

FOR THE COUNTY OF LOS ANGELES, CENTRAL DISTRICT

 

	
Socius CG II, Ltd.,

 

Plaintiff,

 

v.

 

Bergio International, Inc. and Does 1-10 Inclusive,

 

Defendants.

 
	  	
Case No. BC430689

 

Assigned For All Purposes To:

Hon. Mary Ann Murphy, Dept. 25

 

[PROPOSED] ORDER APPROVING STIPULATION FOR SETTLEMENT OF CLAIM

 

Date:             February 4, 2010

Time:             8:30 a.m.

Dept.:             25

 

 

Complaint Filed:                            January 28, 2010

Trial Date:                                      None Set

 

 

The Ex Parte Application To Approve Stipulation For Settlement Of Claims, filed by Plaintiff Socius CG II, Ltd. (“Socius”) and joined by Defendant Bergio International, Inc., formerly known as Alba Mineral Exploration, Inc. ( “Bergio” or the “Company”), came on for hearing on February 4, 2010 at 8:30
a.m. in Department 25 of the above-entitled court, the Honorable Mary Ann Murphy, Judge presiding.

 

 

 

 

 

The Court, having reviewed the Ex Parte Application To Approve Stipulation For Settlement Of Claim in the above-captioned matter, having been presented with a Stipulation for Settlement of the Claim (the “Stipulation”), a copy of which is attached as Exhibit “A” to the Ex Parte Application, and after a hearing upon
the fairness, adequacy and reasonableness of the terms and conditions of the issuance of Bergio’s shares of common stock to Socius in exchange for the extinguishment of said claims, IT IS THEREFORE ORDERED AS FOLLOWS:

1. The Stipulation is approved in it entirety;

2. In full and final settlement of the claim against Bergio in the total amount of $700,000 which Socius purchased from Columbia Bank, arising out of a loan by Columbia Bank to Bergio (by and through its predecessor DIII), in the principal
amount of $700,000 (Loan No. 21175), which is currently past due in the full amount (the “Claim”), Bergio will issue and deliver to Socius 5,700,000 shares of common stock, par value $0.01 per share, of  Bergio, subject to adjustment as set forth in paragraph 4.  This action is hereby dismissed with prejudice, provided that the court shall retain jurisdiction with regard to the Claim to enforce the terms of this Order.

3. No later than the first business day following the date that Bergio receives notice that the Order has been entered, Bergio shall: (i) immediately issue 5,700,000 shares of common stock  to Socius or its designee’s
balance account with The Depository Trust Company (DTC) through the Fast Automated Securities Transfer (FAST) Program of DTC’s Deposit/Withdrawal Agent Commission (DWAC) system, without any restriction on transfer, time being of the essence, by transmitting by facsimile and overnight delivery such irrevocable and unconditional instruction to Bergio’s stock transfer agent and (ii) cause its legal counsel to issue an opinion to Bergio’s transfer agent that the shares may be so transferred.

4. The number of shares to be issued under the this agreement is subject to adjustment as follows: in the event that the number of VWAP Shares (as described below) exceeds the number of Settlement Shares initially issued, then Bergio
will issue to Socius additional shares of Bergio’s common stock equal to the difference between the number of VWAP Shares and the number of Settlement Shares initially issued.  In the event that the number of VWAP Shares is less than the number of Settlement Shares initially issued, then Socius will return to Bergio for cancellation that number of shares as equals the difference between the number of VWAP Shares and the number of Settlement Shares initially issued.

 

2

 

 

a. The number of VWAP Shares is equal to (i) 700,000 plus Socius’ legal fees, (ii) divided by 75% of the volume weighted average price (the “VWAP”) of Bergio’s common stock over the 20-day trading period immediately
following the date on which the Settlement Shares were issued.  

5. For so long as Socius or any of its affiliates holds any shares of common stock of Bergio, neither Socius nor any of its affiliates will: (i) vote any shares of Common Stock owned or controlled by it, or solicit any proxies or seek
to advise or influence any person with respect to any voting securities of the Company; or (ii) engage or participate in any actions, plans or proposals which relate to or would result in (a) Socius or any of its affiliates acquiring additional securities of the Company, alone or together with any other person, which would result in Socius and its affiliates collectively beneficially owning or controlling more than 9.99% of the total outstanding Common Stock or other voting securities of the Company, (b) an extraordinary
corporate transaction, such as a merger, reorganization or liquidation, involving the Company or any of its subsidiaries, (c) a sale or transfer of a material amount of assets of the Company or any of its subsidiaries, (d) any change in the present board of directors or management of the Company, including any plans or proposals to change the number or term of directors or to fill any existing vacancies on the board, (e) any material change in the present capitalization or dividend policy of the Company, (f)
any other material change in the Company’s business or corporate structure, including but not limited to, if the Company is a registered closed-end investment company, any plans or proposals to make any changes in its investment policy for which a vote is required by Section 13 of the Investment Company Act of 1940, (g) changes in the Company’s charter, bylaws or instruments corresponding thereto or other actions which may impede the acquisition of control of the Company by any Person, (h) causing
a class of securities of the Company to be delisted from a national securities exchange or to cease to be authorized to be quoted in an inter-dealer quotation system of a registered national securities association, (i) causing a class of equity securities of the Company becoming eligible for termination of registration pursuant to Section 12(g)(4) of the Act, or (j) taking any action, intention, plan or arrangement similar to any of those enumerated above.  The provisions of this paragraph may not be
modified or waived without further order of the Court.

6. The Stipulation and this Order may be enforced by any party to the Stipulation by a motion under California Code of Civil Procedure section 664.6, or by any procedure permitted by law in the Superior Court of Los Angeles County.  Pursuant
to the Stipulation, each party thereto further waives a statement of decision, and the right to appeal from this Order after entry.  Except as expressly provided in Paragraph 4 above, each party shall bear its own attorney’s fees, expenses and costs with regard to this Stipulation and Order.

 

 

3

 

 

IT IS SO ORDERED.

DATED: February 4, 2010

 

 

/s/ Mary Ann Murphy

JUDGE OF THE SUPERIOR COURT

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