Document:

ex4-3.htm

Exhibit 4.3

 

THIS WARRANT AND THE SECURITIES ISSUABLE UPON EXERCISE OF THIS WARRANT (COLLECTIVELY WITH THIS WARRANT, THE “SECURITIES”) HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”) OR ANY OTHER APPLICABLE FEDERAL OR STATE SECURITIES LAWS, AND MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED, PLEDGED OR HYPOTHECATED, UNLESS REGISTERED UNDER THE SECURITIES ACT AND ANY OTHER APPLICABLE FEDERAL OR STATE SECURITIES LAWS, OR UPON DELIVERY TO THE ISSUER OF THE SECURITIES OF AN OPINION OF COUNSEL IN FORM AND SUBSTANCE SATISFACTORY TO THE ISSUER OF THE SECURITIES THAT SUCH REGISTRATION IS NOT REQUIRED UNDER THE SECURITIES ACT OR SUCH OTHER APPLICABLE FEDERAL OR STATE SECURITIES LAWS PURSUANT TO AVAILABLE EXEMPTIONS THEREFROM.

THIS WARRANT IS BEING ISSUED PURSUANT TO THE TERMS OF THAT CERTAIN PURCHASE AGREEMENT DATED AS OF OCTOBER 29, 2012 (AS FURTHER AMENDED, AMENDED AND RESTATED AND SUPPLEMENTED, THE “PURCHASE AGREEMENT”), BY AND AMONG GULF UNITED ENERGY, INC., A NEVADA CORPORATION, GULF UNITED ENERGY DE COLOMBIA LTD., A COMPANY ORGANIZED UNDER THE LAWS OF THE BRITISH VIRGIN ISLANDS, GULF UNITED ENERGY DE CUENCA TRUJILLO LTD., A COMPANY ORGANIZED UNDER THE LAWS OF THE BRITISH VIRGIN ISLANDS AND _________________, AN INDIVIDUAL, AND THE OTHER PERSONS SET FORTH THEREIN.

 

Warrant to Purchase

Shares of

Common Stock

of

Gulf United Energy, Inc.

 

 

	Warrant No.:   	 	 	Number of Shares: _________
	Date of Issuance: January 18, 2013	 	 	 

 

 

This is to certify that _______________, an individual and his successors and assigns (collectively, the “Holder”), is the owner of a Warrant (this “Warrant”), which entitles the Holder to purchase from Gulf United Energy, Inc., a Nevada corporation (the “Company”) up to ELEVEN MILLION NINE HUNDRED TWENTY-SIX THOUSAND TWO HUNDRED EIGHTY-SEVEN (11,926,287) shares of duly authorized, validly issued, fully paid and nonassessable shares of Common Stock, par value $0.001 per share, of the Company (the “Shares”), from the period beginning on January 18, 2013 (the “Issue Date”) and ending at the Expiration Time (such period being the “Exercise Period”), at an exercise price of U.S. $0.001 per share, all on the terms and subject to the conditions hereinafter set forth.

  

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The number of Shares issuable upon the full exercise of this Warrant (the “Number Issuable”), is subject to adjustment from time to time pursuant to the provisions of Section 2 of this Warrant, provided that in no event shall the Exercise Price (as defined below) be less than the par value of the Common Stock.  All references to the Number Issuable shall be deemed to mean the Number Issuable as so adjusted as of the time of determination.  The exercise price per Share to be paid in connection with an exercise of the Warrant (the “Exercise Price”), which is initially U.S. $0.001, is subject to adjustment from time to time pursuant to the provisions of Section 2 of this Warrant.  All references to the Exercise Price shall be deemed to mean the Exercise Price as so adjusted as of the time of determination.

Capitalized terms used herein but not otherwise defined shall have the respective meanings ascribed to them in the Purchase Agreement.

 

1.           Manner of Exercise of Warrant.

(a)           This Warrant may be exercised by the Holder, in whole or in part, during the Exercise Period upon delivery to the Company at the principal executive office of the Company, of (i) this Warrant, (ii) a completed Notice of Cash Exercise, in the form attached hereto as Exhibit A-1, (iii) payment of the aggregate Exercise Price for the Shares issuable upon such exercise, which shall be payable either in cash or by a certified or official bank check payable to the order of the Company, at the Holder’s option, and (iv) such other documents and instruments, duly and properly executed, as the Company shall reasonably require from the Holder or the Holder’s transferees (collectively, the “Warrant Cash Exercise Documentation”).  Any request to issue Shares in a name other than the name of the Holder shall be deemed a transfer of this Warrant and shall be subject to compliance with Section 7.

(b)           To the extent this Warrant is not previously exercised, and if the fair market value of one Share is greater than the Exercise Price, the Holder may elect to receive Shares equal to the value of this Warrant determined in the manner described below (or of any portion thereof remaining unexercised) by surrender of this Warrant at the principal office of the Company together with the form of Notice of Cashless Exercise attached hereto as Exhibit A-2 (the “Warrant Non-Cash Exercise Documentation” and, collectively with the Warrant Cash Exercise Documentation, the “Warrant Exercise Documentation”), in which event the Company shall issue to Holder a number of Shares computed using the following formula:

 

X = Y (A-B)

      A

Where X =the number of Shares to be issued to Holder.

Y = the number of Shares that the Holder elects to purchase under this Warrant (at the date of such calculation).

 

A =the Fair Market Value (at the date of such calculation).

 

B =Exercise Price (as adjusted to the date of such calculation).

  

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(c)           As promptly as practicable, the Company shall deliver or cause to be delivered (i) a certificate or certificates representing the number of Shares specified in the Warrant Exercise Documentation, (ii) if applicable, cash in lieu of any fractional share, as hereinafter provided, and (iii) if the Warrant evidenced hereby is being exercised with respect to a number of Shares which is less than the full number of Shares as to which the Warrant evidenced hereby is exercisable, a new warrant certificate or certificates, of like tenor, exercisable, in aggregate, for the number of Shares underlying this Warrant, less the aggregate number of Shares issued upon all exercises of this Warrant.  Such exercise shall be deemed to have been made at the close of business on the date of delivery of all Warrant Exercise Documentation so that the Person entitled to receive Shares upon such exercise shall be treated for all purposes as having become the record holder of such Shares at such time.  No such surrender shall be effective to constitute the Person entitled to receive such shares as the record holder thereof while the transfer books of the Company for Shares are closed for any purpose; but any such surrender of this Warrant for exercise during any period while such transfer books are so closed shall become effective for exercise immediately upon the reopening of such transfer books, as if the exercise had been made on the date the Warrant Exercise Documentation was received.

 

(d)           The issuance of certificates for Shares issuable upon exercise of this Warrant shall be made without charge to the Holder for any issuance tax in respect thereof, if any, other than taxes in connection with the issuance of certificates for Shares in the name of any Person other than the Holder.

(e)           In connection with the exercise of this Warrant, no fractions of Shares shall be issued, but, in lieu thereof, the Company shall, in its sole discretion, either (i)  pay a cash adjustment in respect of such fractional interest in an amount equal to such fractional interest multiplied by the Fair Market Value of such share on the Business Day which next precedes the date of exercise or (ii) round-up to the next whole number.

 

2.           Adjustment of Number Issuable and Exercise Price.  If the Common Stock as presently constituted shall be changed into or exchanged for a different number or kind of shares or other securities of the Company or of another entity (whether by reason of merger, consolidation, recapitalization, reclassification, split, reverse split, combination of shares, or otherwise) or if the number of shares of Common Stock shall be increased through the payment of a share dividend, the Holder shall receive upon exercise of this Warrant, the number and kind of shares or other securities into which each outstanding share of Common Stock shall be so changed, or for which each such share of Common Stock shall be exchanged, or to which each such share of Common Stock shall be entitled, as the case may be.  The Exercise Price and other terms of this Warrant shall be appropriately amended to reflect the foregoing events.  If there shall be any other change in the number or kind of the outstanding shares of Common Stock, or of any shares or other securities into which the Common Stock shall have been changed, or for which the shares of Common Stock shall have been exchanged, then, if the Board shall, in its sole discretion, determine that such change equitably requires an adjustment in the Exercise Price, such adjustment shall be made in accordance with that determination.  Notice of any adjustment shall be given by the Company to the Holder as provided in Section 4 herein.

  

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3.         Redemption.  The Company shall not have any right to redeem this Warrant.

4.         Notice of Certain Events.  In case of any adjustments to the Number Issuable or Exercise Price, the Company shall provide the Holder prior written notice of the adjustments. Such notice shall provide (a) the date on which a record is to be taken for the purpose of such dividend, distribution, subdivision or combination of Common Stock, or similar event or transaction, or, if a record is not to be taken, the date as of which the holders of Common Stock of record to be entitled to or affected by such dividend, distribution, subdivision or combination, or similar event or transaction, are to be determined, or (b) the date on which such consolidation, merger, dissolution, liquidation, winding-up, sale of all or substantially all of the assets or capital stock of the Company or similar event or transaction is expected to become effective.

5.         Registered Holder.  The Person in whose name this Warrant is registered shall be deemed the owner hereof for all purposes.

6.         Transfer of Warrants.  The Holder may assign this Warrant and its rights and obligations hereunder in whole or in part, without the prior written consent of the Company, after notice duly given by the Holder to the Company.  Any transfer of this Warrant or the rights represented hereby, shall be effected by the surrender of this Warrant, along with a completed form of assignment, in the form attached hereto as Exhibit B, duly and properly completed and executed by the Holder hereof, and delivered to the principal executive office of the Company.

7.         Registration Rights.  The Holder (and its assignees), shall have the rights as set forth in the Registration Rights Agreement in respect to the Shares as set forth in the Registration Rights Agreement.

8.         No Rights as Shareholder Until Exercise.  This Warrant does not entitle the Holder to any voting rights or other rights as a stockholder of the Company prior to the exercise hereof as set forth in Section 1 herein.  Upon surrender of this Warrant and the payment of the aggregate Exercise Price, the Shares so purchased shall be and be deemed to be issued to the Holder as the record owner of such shares as of the close of business on the later of the date of such surrender or payment.

 

9.         Replacement of Warrants.  Upon receipt by the Company of evidence satisfactory to it of the loss, theft, destruction or mutilation of this Warrant, and in case of loss, theft or destruction, of indemnity in customary form, and (if mutilated) upon surrender and cancellation of this Warrant, the Company shall make and deliver to the Holder a new warrant certificate of like tenor in lieu of this Warrant.  Any replacement warrant certificate made and delivered in accordance with this Section 9 shall be dated as of the date hereof.

10.       GOVERNING LAW.  THIS WARRANT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF TEXAS (WITHOUT GIVING EFFECT TO ANY CHOICE OR CONFLICT OF LAWS PROVISIONS).

11.         Benefits of Warrant.  This Warrant will inure to the benefit of and be binding upon the Holder, the Company and their respective successors and assigns.  Nothing in this Warrant shall be construed to give the Holder any rights as a holder of Shares until such time, if any, as this Warrant is exercised in accordance with the provisions hereof.

  

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12.         Definitions.  For the purposes of this Warrant, the following terms shall have the meanings indicated below:

“Board” means the Board of Directors of the Company.

“Business Day” means any day that is not a Saturday, Sunday or a legal holiday in the State of Texas.

“Common Stock” means (a) the Company’s Common Stock, par value $0.001 per share, and (b) any capital stock into which such Common Stock shall have been changed or any capital stock resulting from a reclassification of such.

“Expiration Time” means 5:00 p.m., Houston, Texas time, on October 29, 2017.

“Fair Market Value” means the average of the daily closing price per share of Common Stock for the three (3) days immediately preceding the date of determination as such daily closing price is reported on the OTCQB or such other financial reporting marketplace that the Common Stock is then listed.

“Person” means any individual, corporation, limited liability company, partnership, trust, incorporated or unincorporated association, joint venture, joint stock company, government (or an agency or political subdivision thereof) or other entity of any kind.

“Registration Rights Agreement” means that certain Registration Rights Agreement, dated as of October 29, 2012, by and among the Company and the other Persons referred to therein, as amended by that certain First Amendment to Registration Rights Agreement dated January 18, 2013 and as such agreement may be further amended, restated or modified and in effect from time to time.

“Securities Act” means the Securities Act of 1933, as amended.

13.         Notices.  All notices, demands and other communications provided for or permitted hereunder shall be made in writing and shall be sufficient if delivered personally or sent by telecopy (with confirmation of receipt) or by registered or certified mail, postage prepaid, return receipt requested, to the addresses as set forth in Section 9.4 of the Purchase Agreement.  Each such notice, request or communication shall be effective when received or, if given by mail, when delivered at the address specified by such Person or on the fifth (5th) Business Day following the date on which such communication is posted, whichever occurs first.

14.         Securities Laws; Legend.  The Holder (and its transferees and assigns), by acceptance of this Warrant, covenants and agrees that such Holder is acquiring this Warrant evidenced hereby, and, upon exercise hereof, the Shares, for its own account as an investment and not with a view to distribution thereof.  Neither this Warrant nor the Shares issuable hereunder have been registered under the Securities Act or any state securities laws and no transfer of this Warrant or any Shares shall be permitted unless the Company has received notice of such transfer in the form of the assignment attached hereto as Exhibit B, accompanied, if requested by the Company, by an opinion of counsel reasonably satisfactory to the Company that an exemption from registration of such Warrant or Shares under the Securities Act is available for such transfer, except that no such opinion shall be required after the registration for resale of the Shares has become effective.  Each certificate representing Shares shall bear a legend substantially to the following effect unless such Shares have been registered under the Securities Act and any other applicable federal and state securities laws:

  

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“THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”) OR OTHER APPLICABLE FEDERAL OR STATE SECURITIES LAWS, AND MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED, PLEDGED OR HYPOTHECATED, UNLESS REGISTERED UNDER THE ACT AND OTHER APPLICABLE FEDERAL OR STATE SECURITIES LAWS, OR UPON DELIVERY TO THE ISSUER OF THE SECURITIES REPRESENTED HEREBY OF AN OPINION OF COUNSEL IN FORM AND SUBSTANCE SATISFACTORY TO THE ISSUER OF THE SECURITIES REPRESENTED HEREBY THAT SUCH REGISTRATION IS NOT REQUIRED UNDER THE ACT OR SUCH OTHER APPLICABLE FEDERAL OR STATE SECURITIES LAWS PURSUANT TO AVAILABLE EXEMPTIONS THEREFROM.”

 

Any purported transfer of the Warrant or Shares not in compliance with the provisions of this Section 14 shall be null and void.  Stop transfer instructions have been or will be imposed with respect to the Shares so as to restrict resale or other transfer thereof, subject to this Section 14.

 

15.         Amendments and Waivers.  No modification, amendment or waiver of any term of, or consent required by, this Warrant, nor any consent to any departure herefrom, shall be effective unless it is in writing and signed by the Company and the Holder.  Such modification, amendment, waiver or consent shall be effective only in the specific instance and for the specific purpose for which given.

 

16.         Assignment.  Any assignment of this Warrant and the rights of the Holder hereunder, shall be carried out in accordance with Section 6 herein.  Any instrument purporting to make a transfer or assignment in violation of this Section 16 shall be void and of no effect.

 

17.         Consent to Exclusive Jurisdiction and Service of Process.  The Company and the Holder each hereby irrevocably and unconditionally submits to the jurisdiction of the courts of the State of Texas and of the Federal courts sitting in the State of Texas in any action or proceeding directly or indirectly arising out of or relating to this Warrant or the transactions contemplated hereby (whether based in contract, tort, equity or any other theory).  The Company and the Holder each agrees that all actions or proceedings arising out of or relating to this Warrant must be litigated exclusively in the State of Texas or, to the extent permitted by law, the United States Court – Southern District of Texas, in Harris County, Texas and accordingly, each party irrevocably waives any objection which he or it may now or hereafter have to the laying of the venue of any such action or proceeding in any such court.  The Company and the Holder each further irrevocably consents to service of process in the manner provided for notices in Section 13.  Nothing in this Warrant will affect the right of the Company or the Holder to serve process in any other manner permitted by law.

 

  

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18.         Tax Reporting.  The Company and the initial Holder agree that the separate cash consideration paid by the initial Holder for this Warrant is separately bargained for consideration equal to the Warrant’s fair market value, and each of the Company and the initial Holder agree to consistently utilize such value for federal and applicable state income tax reporting purposes.

 

19.         Termination.  Notwithstanding any other provision of this Warrant, the right to exercise this Warrant shall terminate at the Expiration Time.

 

[Signature Page Follows]

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  

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In Witness Whereof, the Company has caused this Warrant to be duly executed as of the Issue Date.

 

	 	 	 
GULF UNITED ENERGY, INC.

By:_____________________________________

John B. Connally III

Chief Executive Officer

	 	 	 	 
	 	 	 	 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Signature Page to Warrant to Purchase Shares of Common Stock

 

  

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Exhibit A-1

NOTICE OF EXERCISE OF WARRANT

BY CASH PAYMENT OF EXERCISE PRICE

________________, 20__

	
 

Holder Name and Address:

 

__________________________

 

__________________________

 

 

 

 

	
 

Aggregate Exercise Price of Warrant Before Exercise:

 

Aggregate Exercise Price Being Exercised:

 

	
 

 

$ ____________

 

 

$ ____________

 

	  	
 

Exercise Price Per Share:

	
 

$ ____________

 

	  	
Number of Shares of Common Stock to be Issued Under this Notice:

 

Remaining Number of Shares of Common Stock After Exercise (if any):

 

	
  

       ____________

 

       ____________

CASH EXERCISE

Gentlemen:

The undersigned registered Holder of the Warrant delivered herewith (the “Warrant”), hereby irrevocably exercises such Warrant for, and purchases thereunder, shares of the Common Stock of Gulf United Energy, Inc., a Nevada corporation, as provided below.  Capitalized terms used herein, unless otherwise defined herein, shall have the meanings given in the Warrant.  The aggregate Exercise Price to be applied toward the purchase of Common Stock pursuant to this Notice of Exercise is $__________, thereby leaving a remainder aggregate Exercise Price (if any) of $____________.  Such exercise shall be pursuant to the cash exercise provisions of Section 1(a) of the Warrant.  Therefore, Holder makes payment with this Notice of Exercise by way of check payable to the Company in the amount of $___________________.  Such check is payment in full under the Warrant for ___________ shares of Common Stock based upon the Exercise Price of $___________ per share, as currently in effect under the Warrant.  Holder requests that the certificates for the purchased shares of Common Stock be issued in the name of and delivered to ____________________.  To the extent the foregoing exercise is for less than the full Number Issuable, a replacement Warrant representing the remainder of the Number Issuable and otherwise of like form, tenor and effect should be delivered to Holder along with the share certificates evidencing the Common Stock issued in response to this Notice of Exercise.

 

 

	  	
 

HOLDER: 

 

____________________________

 

 

 

 

  

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Exhibit A-2

NOTICE OF EXERCISE OF WARRANT

PURSUANT TO CASHLESS EXERCISE PROVISIONS

_______________, 20__

	
 

Holder Name and Address:

 

 

 

 

 

	
 

Aggregate Exercise Price of Warrant Before Exercise:

 

Aggregate Exercise Price Being Exercised:

 

	
 

 

$ ____________

 

 

$ ____________

 

	  	
 

Exercise Price Per Share:

	
 

$ ____________

 

	  	
Number of Shares of Common Stock to be Issued Under this Notice:

 

Remaining Number of Shares of Common Stock After Exercise (if any):

 

	
  

       ____________

 

       ____________

CASHLESS EXERCISE

Gentlemen:

The undersigned, registered Holder of the Warrant delivered herewith (the “Warrant”), hereby irrevocably exercises such Warrant for, and purchases thereunder, shares of the Common Stock of Gulf United Energy, Inc., a Nevada corporation, as provided below.  Capitalized terms used herein, unless otherwise defined herein, shall have the meanings given in the Warrant.  The portion of the aggregate Exercise Price to be applied toward the purchase of Common Stock pursuant to this Notice of Exercise is $___________, thereby leaving a remainder aggregate Exercise Price (if any) equal to $___________.  Such exercise shall be pursuant to the net issue exercise provisions of Section 1(b) of the Warrant; therefore, Holder makes no payment with this Notice of Exercise.  The number of shares to be issued pursuant to this exercise shall be determined by reference to the formula in Section 1(b) of the Warrant which requires the use of the current per share fair market value of the Company’s Common Stock.  The current fair market value of one share of the Company’s Common Stock shall be determined in the manner provided in Section 1(b), which amount has been determined to be $_________, which figure is acceptable to Holder for calculations of the number of shares of Common Stock issuable pursuant to this Notice of Exercise.  Holder requests that the certificates for the purchased shares of Common Stock be issued in the name of and delivered to ______________.  To the extent the foregoing exercise is for less than the full Number Issuable, a replacement Warrant representing the remainder of the Number Issuable (and otherwise of like form, tenor and effect) shall be delivered to Holder along with the share certificate evidencing the Common Stock issued in response to this Notice of Exercise.

 

	  	
 

HOLDER: 

 

____________________________

 

 

 

 

  

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Exhibit B

Form of Assignment of Warrant

The undersigned hereby assigns and transfers this Warrant to [__________], whose Social Security Number or Tax ID Number is [__________] and whose address of record shall be [__________], and irrevocably appoints the Secretary of Gulf United Energy, Inc., a Nevada corporation (the “Company”) as agent to transfer this security to such assignee on the books of the Company.   Such agent may substitute another to act for such agent.

	
Dated:_____________________

 

	
________________________________

 

 

 

________________________________

________________________________

 

	  	  
	  	
 

__________________________________

Signature of Registered Holder

 

 

	  	  
	  	  

 

 

 

 

 

 

 

 

 

  

11ex10-1.htm

Exhibit 10.1

 

AMENDMENT TO

PURCHASE AGREEMENT AND OTHER TRANSACTION DOCUMENTS

THIS AMENDMENT TO PURCHASE AGREEMENT AND OTHER TRANSACTION DOCUMENTS (this “Amendment”) dated January 18, 2013, is by and among Gulf United Energy, Inc., a Nevada corporation (“Gulf”), Gulf United Energy de Colombia Ltd., a company organized under the laws of the British Virgin Islands and a wholly-owned subsidiary of Gulf (“BVI Colombia”), Gulf United Energy de Cuenca Trujillo Ltd., a company organized under the laws of the British Virgin Islands and a wholly-owned subsidiary of Gulf (“BVI Peru”, together with BVI Colombia, the “BVI Subs”, and together with Gulf, each a “Company” and collectively, the “Companies”), Sydson Oil & Gas Investments, LLC, a Delaware limited liability company (“Sydson”), as administrative agent (in such capacity, “Administrative Agent”) for itself and the other Investors (defined below), each an “Investor” and collectively, the “Investors”).  Capitalized terms used but not defined herein shall have the meanings given such terms in the Purchase Agreement (as defined below).

 

RECITALS

 

A.           The Companies, Administrative Agent and the Investors entered into, directly or pursuant to a Joinder Agreement (defined below), that certain Purchase Agreement (as amended, restated, supplemented or otherwise modified from time to time, the “Purchase Agreement”) dated as of October 29, 2012 (the “Closing Date”).

 

B.           ______________________ purchased from Gulf, and Gulf sold and issued to such Investors, upon the terms and conditions stated in the Purchase Agreement, convertible notes, each dated as of the Closing Date, all of the foregoing in the aggregate principal amount of $2,550,000 (collectively, the “Original First Tranche Notes”).

 

C.            The Companies, Administrative Agent, and ________ entered into that certain Joinder Agreement (the “Joinder Agreement”), dated as of November 12, 2012, whereby, among other things, ________ became an Investor under the Transaction Documents (defined below).

 

D.           __________ purchased from Gulf, and Gulf sold and issued to _______, upon the terms and conditions stated in the Purchase Agreement, a convertible note, dated effective as of October 29, 2012, in the aggregate principal amount of $250,000 (the “        Note”).

 

E.           The Companies, Administrative Agent, and ______ entered into a Joinder Agreement, dated as of November 20, 2012, whereby, among other things, _______ became an Investor under the Transaction Documents.

 

F.           ______ purchased from Gulf, and Gulf sold and issued to Walker, upon the terms and conditions stated in the Purchase Agreement, a convertible note, dated as of November 20, 2012, in the aggregate principal amount of $75,000 (the “       Note”).

 

G.           _________________________ purchased from Gulf, and Gulf sold and issued to such Investors, upon the terms and conditions stated in the Purchase Agreement, convertible notes, each dated on or about November 20, 2012, all of the foregoing in the aggregate principal amount of $860,000 (the “Original Second Tranche Notes”; together with the Original First Tranche Notes, the ______ Note and the ______ Note, each a “Note” and collectively, the “Notes”).

 

  

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H.           The BVI Subs entered into guaranty agreements (each a “Guaranty” and collectively, the “Guaranties”), each dated as of the Closing Date,  pursuant to which the BVI Subs jointly and severally guaranteed the obligations and liabilities under the Notes and the other Transaction Documents.

 

I.           In connection with entering into the Purchase Agreement and the sale of the Notes, Gulf issued warrants (“Warrants”) to the Investors pursuant to warrant agreements (as amended, restated, supplemented or otherwise modified from time to time, collectively, the “Warrant Agreement”) that entitled the Investors, at their option, to purchase shares of Common Stock of Gulf.

 

J.           In connection with entering into the Purchase Agreement, the issuance of the Notes and the issuance of the Warrants, the obligations and liabilities under the Notes and the other Transaction Documents are secured pursuant to (a) a Pledge Agreement (as amended, restated, supplemented or otherwise modified from time to time, the “BVI Colombia Pledge Agreement”), dated as of the Closing Date, from Gulf to the Administrative Agent for the benefit of the Investors covering the equity interests of BVI Colombia and certain other collateral as set forth therein and (b) a Pledge Agreement (as amended, restated, supplemented or otherwise modified from time to time, the “BVI Peru Pledge Agreement”), dated as of the Closing Date, from Gulf to the Administrative Agent for the benefit of the Investors covering the equity interests of BVI Peru and certain other collateral as set forth therein (each a “Pledge Agreement” and, collectively, the “Pledge Agreements” and the property covered by the Pledge Agreements shall be hereinafter referred to as the “Collateral”), provided that the BVI Peru Pledge Agreement is subject to the terms of that certain Escrow Agreement, dated as of the Closing Date, among Gulf, Administrative Agent, the Investors and Gaston & Thanheiser, P.C. (the “Escrow Agent”) (as amended, restated, supplemented or otherwise modified from time to time, the “Escrow Agreement”).

 

K.           Subject to, and pursuant to, the Escrow Agreement, Gulf, as assignor, executed, as of the Closing Date, in favor of Administrative Agent, as assignee, for the benefit of the Investors, (i) an Assignment regarding the conditional assignment of all of the equity interests of BVI Colombia (the “BVI Colombia Assignment”) and (ii) an Assignment regarding the conditional assignment of all of the equity interests of BVI Peru (the “BVI Peru Assignment”; each an “Assignment” and, collectively, the “Assignments”).

 

L.           In connection with the execution of the Pledge Agreements, the Assignments and the Escrow Agreement, the Administrative Agent, the Investors and the Companies entered into an Intercreditor Agreement (as amended, restated, supplemented or otherwise modified from time to time, the “Intercreditor Agreement”), dated as of the Closing Date, pursuant to which the Investors have appointed Sydson, as Administrative Agent, to act on behalf of the Investors regarding the transactions described above and otherwise herein.

 

M.           In connection with the Warrant Agreement and the Notes, Gulf and the Investors entered into that certain Registration Rights Agreement (the “Registration Rights Agreement”) dated as of the Closing Date to govern the registration rights to be granted by Gulf to the Investors regarding shares of Common Stock of Gulf pursuant to the foregoing Warrants and Notes.

 

  

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N.           As of the date hereof, the Companies have agreed to issue amended and restated convertible notes in favor of each of the Investors, all of the foregoing in the aggregate principal amount of $3,920,000 (such notes, together with any notes or other securities issued in exchange or substitution therefor or in addition or replacement thereof, and as any of the same may be amended, restated, supplemented or otherwise modified and in effect from time to time, each an “Amended Restated Note” and collectively, the “Amended Restated Notes”), which Amended Restated Notes will (i) amend, restate and rearrange, but not extinguish or novate, the obligations under the Original First Tranche Notes and the Original Second Tranche Notes and (ii) include in the aggregate principal amount thereof the extension by the Investors of the Additional Obligation Amount (as defined below).

 

O.           As of the date hereof, in connection with entering issuing the Amended Restated Notes, Gulf shall issue additional Warrants to _______ and ______ pursuant to additional Warrant Agreements that will entitle such Investors, at their option, to purchase additional shares of Common Stock of Gulf.

 

P.           Companies have requested that (i) Administrative Agent and Investors amend certain provisions under the Purchase Agreement and certain other Transaction Documents, and (ii) the Investors extend additional credit to Gulf for working capital purposes in the aggregate amount of $185,000 (the “Additional Obligation Amount”).

 

Q.           Administrative Agent and Investors are willing to enter into the requested amendments, subject to and conditioned upon the provisions set forth herein.

 

AGREEMENT

 

NOW, THEREFORE, in consideration of the promises herein contained, the mutual benefits to be derived herefrom and other good and valuable consideration received by each party, and each intending to be legally bound hereby, the parties agree as follows:

 

	
  

	
I.

	
Specific Amendments to Purchase Agreement.

	
  

	
A.

	
Section 1 of the Purchase Agreement is hereby amended by amending the definition of “Offering Period” in its entirety and adding the definition of “Amendment Closing Date” to read as follows:

 

“Offering Period” means the period beginning on the Closing Date and ending on January 31, 2013.

 

“Amendment Closing Date” means January 18, 2013.

 

	
  

	
B.

	
As of the Amendment Closing Date, and notwithstanding the amendment to the definition of “Offering Period” set forth herein, Section 9.1 of the Purchase Agreement is of no further force and effect as to any additional New Investors.

 

 

  

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C.

	
Section 2(d) of the Purchase Agreement is hereby amended by replacing the text thereof with the following text:

 

“(d)  In connection with the offer of Gulf of up to an aggregate of $4,400,000 of principal amount of Notes (and corresponding Warrants to purchase shares of Common Stock of Gulf) on the Closing Date and through and including the last day of the Offering Period, the number of shares of Common Stock of Gulf that may be purchased pursuant to the Warrants shall be (x), for amounts issued under Notes on or before November 20, 2012, allocated among the Investors pro-rata based on the principal amounts under such Investor’s respective Notes (such allocation being 13.33 shares of Common Stock per U.S. dollar issued under the Notes, rounded to the nearest whole share) and (y), for amounts issued under the Notes after November 20, 2012, allocated among the Investors pro-rata based on the principal amounts allocated to such amounts issued after November 20, 2012 under such Investor’s respective Notes (such allocation being 802.6069 shares of Common Stock per U.S. dollar issued under the Notes, rounded to the nearest whole share).  For example, a Note amount of $850,000 for amounts issued under the Note on or before November 20, 2012 would entitle an Investor to 11,333,333 shares of Common Stock under such Investor’s Warrant.  For example, a Note amount of $100,000 for amounts issued under the Note after November 20, 2012 would entitle an Investor to 80,260,690 shares of Common Stock under such Investor’s Warrant.”

 

	
  

	
D.

	
Any references in the Purchase Agreement to the terms “Note” or “Notes” shall hereafter be deemed to refer and relate to the Amended Restated Notes for all purposes.

 

II.           Specific Amendments to Other Transaction Documents. Any references in any other Transaction Document, including without limitation, the Pledge Agreements, the Assignments, the Guaranties, the Escrow Agreement, the Intercreditor Agreement and the Registration Rights Agreement, to the terms “Note” or “Notes” shall hereafter be deemed to refer and relate to instead to the Amended Restated Notes for all purposes.  For avoidance of doubt, the Secured Obligations (as defined in the Pledge Agreements) secured by the Pledge Agreements shall include, among other things, the obligations under the Amended Restated Notes.

III.           Specific Amendment to Intercreditor Agreement.  Any references in the Intercreditor Agreement to the term “Secured Obligations” shall be deemed to refer such term as defined in the Pledge Agreements.

IV.           Escrow Agreement.  The parties hereto agree that any amendments to the BVI Peru Pledge Agreement and the Assignments pursuant to this Amendment shall be effective as to such BVI Peru Pledge Agreement and the Assignments held under the Escrow Agreement and no further action shall be needed in regards to such Escrow Agreement.  The parties hereto further agree that (i) any all instructions and disbursement requests submitted by Administrative Agent to the Escrow Agent regarding such BVI Peru Pledge Agreement and the Assignments shall apply to such agreements as amended hereby and (ii) that Administrative Agent may, in its sole discretion, provide a counterpart of the Amendment to the Escrow Agent for the purpose of having the Escrow Agent acknowledge the transactions evidenced hereunder and the other Transaction Documents and the continued rights of the Administrative Agent under the Escrow Agreement.

  

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V.           Operating Budget. Attached hereto as Exhibit A is the Companies’ weekly operating budget through and including the week ending February 15, 2013.  The Companies agree that, by the close of business on Friday, at the end of each week, commencing with the week ending January 25, 2013, they shall provide to Administrative Agent a comparison of actual operating expenses of the Companies for such week to such budgeted expenses set forth on Exhibit A, together with any necessary updates to such operating budget.

VI.           Amendment to Gulf Articles.  Gulf hereby agrees to promptly call a special meeting of its shareholders to seek approval to amend its Amended and Restated Articles of Incorporation (“Articles”) to increase the number of authorized shares of Common Stock.  Such amendment to Gulf’s Articles shall authorize such number of shares of Common Stock as is necessary to reserve for issuance the shares of Common Stock underlying the Warrants, including additional Warrants issued to certain Investors as of the Amendment Closing Date, the Amended and Restated Notes and such other options and warrants issued and outstanding as of the Amendment Closing Date.  Failure of Gulf to file an amendment to its Articles with the Nevada Secretary of State on or before 75 days of the Amendment Closing Date shall be an “Event of Default” for all purposes under the Transaction Documents without the benefit of any grace periods.

VII.           Conditions Precedent to the Effectiveness of Amendment.  As a condition to the effectiveness of this Amendment, each of the following shall have occurred or have been satisfied or otherwise delivered to Administrative Agent, as determined by Administrative Agent:

(a)           this Amendment duly executed by the Companies, the Administrative Agent and the Investors;

(b)           an amendment to the Registration Rights Agreement duly executed by Gulf and the Investors;

(c)           Amendments to the existing Warrant Agreements duly executed by Gulf in favor of the Investors;

(d)           Amended Restated Notes duly executed by Gulf in favor of, and in form and content satisfactory to, each of the Investors;

(e)           additional Warrant Agreements duly executed by Gulf for, and in form and content satisfactory to, each of the Investors;

(f)           a duly executed certificate of a responsible officer of Gulf and duly executed certificates of the director of each of the BVI Subs, in each case, (i) ratifying the incumbency signatures and attached governing documents set forth in such similar certificates delivered on the Closing Date and (ii) certifying to the accuracy of the attached authorizing resolutions in support of this Amendment and the other documents related thereto;

  

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(g)           powers of attorney for each BVI Sub duly executed by the director thereof; and

(h)           such other documents or deliverables as Administrative Agent and Investors may request.

VIII.           Reaffirmation of Representations and Warranties.  To induce Administrative Agent and Investors to enter into this Amendment, Companies hereby reaffirm, as of Amendment Closing Date, their representations and warranties contained in Section 4 of the Purchase Agreement (other than the second sentence of Section 4.3, Section 4.9(b) and Section 4.10(b) thereof, which representations shall have been deemed to have been made as of the Closing Date), and in all other documents executed pursuant thereto, and additionally represent and warrant as follows:

(a)           The execution and delivery of this Amendment and the performance by Companies of their obligations under this Amendment are within Companies’ power, have been duly authorized by all necessary governing action, have received all necessary governmental approval (if any shall be required), and do not and will not contravene or conflict with any provision of law or of Companies’ governing agreements or of any agreement binding upon Companies.

 

(b)           This Amendment represents the legal, valid and binding obligations of Companies enforceable against Companies in accordance with its terms subject as to enforcement only to the United States bankruptcy code and other similar laws affecting creditors’ rights generally.

 

IX.           Reaffirmation of Purchase Agreement.  This Amendment shall be deemed to be an amendment to the Purchase Agreement and the other Transaction Documents, and the Purchase Agreement and such other Transaction Documents, each as amended hereby, are hereby ratified, adopted and confirmed in each and every respect.

X.           Governing Law.  THIS AMENDMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF TEXAS AND THE APPLICABLE LAWS OF THE UNITED STATES OF AMERICA.  This Amendment has been entered into in Houston, Texas, and it shall be performable for all purposes in Houston, Texas.  Courts of the State of Texas located in Harris County and the United States District Court for the Southern District of Texas shall have jurisdiction over any and all disputes among the parties hereto, whether in law or equity, including, but not limited to, any and all disputes arising out of or relating to this Amendment or any other Transaction Documents; and venue in any such dispute whether in federal or state court shall be laid in Houston, Texas.

  

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XI.           Severability.  Whenever possible each provision of this Amendment shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Amendment shall be prohibited by or invalid under applicable law, such provision shall be ineffective to the extent of such prohibition or invalidity, without invalidating the remainder of such provision or the remaining provisions of this Amendment.

XII.           Execution in Counterparts.  This Amendment may be executed in any number of counterparts and by the different parties on separate counterparts on different dates, and each such counterpart shall be deemed to be an original, but all such counterparts shall together constitute but one and the same agreement.

XIII.           Section Captions.  Section captions used in this Amendment are for convenience of reference only, and shall not affect the construction of this Amendment.

XIV.           Successors and Assigns.  This Amendment shall be binding upon Companies, Administrative Agent and Investors and their respective successors and permitted assigns, and shall inure to the benefit of Companies, Administrative Agent and Investors and the respective successors and assigns of Administrative Agent and Investors.

XV.           NOTICE OF FINAL AGREEMENT.  THE WRITTEN PURCHASE AGREEMENT, AS HEREBY AMENDED, REPRESENTS THE FINAL AGREEMENT AMONG ADMINISTRATIVE AGENT, INVESTORS AND COMPANIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES.  THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.

 

 

 

 

 

 

 

 

 

 

 

 

  

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IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed on the Amendment Closing Date.

 

COMPANIES:

GULF UNITED ENERGY, INC.

By:                                                                

John B. Connally III

Chief Executive Officer

GULF UNITED ENERGY DE COLOMBIA LTD.

By:                                                                

John B. Connally III

Attorney-in-Fact

GULF UNITED ENERGY CUENCA TRUJILLO LTD.

By:                                                                

John B. Connally III

	
  

	
 Attorney-in-Fact

ADMINISTRATIVE AGENT:

SYDSON OIL & GAS INVESTMENTS, LLC,

as Administrative Agent

By:                                                                

Michael J. Mayell

	
  

	
  Manager

  

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INVESTORS:

SYDSON OIL & GAS INVESTMENTS, LLC

By:                                                                

Michael J. Mayell

Manager

 

 

 

 

 

 

 

 

 

 

 

  

9

  

 

 

 

Exhibit A

 

Operating Budget

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  

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