Document:

THIS PRIVATE
PLACEMENT SUBSCRIPTION AGREEMENT (THE "SUBSCRIPTION AGREEMENT") RELATES TO AN OFFERING OF SECURITIES IN AN OFFSHORE TRANSACTION
TO PERSONS WHO ARE NOT U.S. PERSONS (AS DEFINED HEREIN) PURSUANT TO REGULATION S UNDER THE UNITED STATES SECURITIES ACT OF 1933,
AS AMENDED (THE "1933 ACT").

 

NONE OF THE SECURITIES TO WHICH THIS SUBSCRIPTION
AGREEMENT RELATES HAVE BEEN REGISTERED UNDER THE 1933 ACT, OR ANY U.S. STATE SECURITIES LAWS, AND, UNLESS SO REGISTERED, NONE MAY
BE OFFERED OR SOLD, DIRECTLY OR INDIRECTLY, IN THE UNITED STATES OR TO U.S. PERSONS (AS DEFINED HEREIN) EXCEPT IN ACCORDANCE WITH
THE PROVISIONS OF REGULATION S UNDER THE 1933 ACT, PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE 1933 ACT, OR PURSUANT
TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE 1933 ACT AND IN EACH CASE
ONLY IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS.

 

AMERICAN MINING CORPORATION

PRIVATE PLACEMENT SUBSCRIPTION

(Non U.S. Subscribers Only)

 

To:The Board of Directors

American Mining Corporation (the “Company”)

970 Caughlin Crossing, Suite 100

Reno, Nevada 89519

 

Re:Acquisition of Common Shares of AMERICAN MINING CORPORATION

a Nevada corporation (the "Company")

 

		1.	SUBSCRIPTION

1.1.              
The undersigned (the "Subscriber") hereby irrevocably subscribes for and agrees to
purchase 20,000,000 shares of the Company's common stock (the "Shares") at a price of US$0.005 per Share (such subscription
and agreement to purchase being the "Subscription"), for the total subscription price of $100,000 USD (the "Subscription
Proceeds"), which Subscription Proceeds are tendered herewith, on the basis of the representations and warranties and subject
to the terms and conditions set forth herein. The Shares are referred to as the “Securities”.

1.2.              
The Company hereby agrees to sell the Shares to the Subscriber on the basis of the representations
and warranties and subject to the terms and conditions set forth herein. Subject to the terms hereof, the Subscription Agreement
will be effective upon its acceptance by the Company.

1.3.              
Unless otherwise provided, all dollar amounts referred to in this Subscription Agreement are
in lawful money of the United States of America.

		2.	PAYMENT

2.1.              
The Subscription Proceeds must accompany this Subscription Agreement. 

2.2.              
If this Subscription Agreement is not accepted by the Company for whatever reason within 90
days of the delivery of an executed Subscription Agreement by the Subscriber, or the minimum offering amount (if any) is not achieved
by that time, this Subscription Agreement, the Subscription Proceeds and any other documents delivered in connection herewith will
be returned to the Subscriber at the address of the Subscriber as set forth in this Subscription Agreement without interest or
deduction. 

2.3.              
Where the Subscription Proceeds are paid to the Company, the Company may treat the Subscription
Proceeds as a non-interest bearing loan and may use the Subscription Proceeds prior to this Subscription Agreement being accepted
by the Company. 

2.4.              
The Subscriber shall complete, sign and return to the Company as soon as possible, on request
by the Company, any documents, questionnaires, notices and undertakings as may be required by regulatory authorities, stock exchanges
and applicable law. 

		3.	CLOSING

3.1.              
Closing of the purchase and sale of the Shares shall occur on or before June 24, 2013, or on
such other date as may be determined by the Company in its sole discretion (the "Closing Date"). The Subscriber acknowledges
that Shares may be issued to other subscribers under this offering (the "Offering") before or after the Closing Date.
The Company, may, at its discretion, elect to close the Offering in one or more closings, in which event the Company may agree
with one or more subscribers (including the Subscriber hereunder) to complete delivery of the Shares to such subscriber(s) against
payment therefore at any time on or prior to the Closing Date. 

		4.	ACKNOWLEDGEMENTS OF SUBSCRIBER

		4.1.	The Subscriber acknowledges and agrees that: 

(a)                 
none of the Securities have been registered under the Securities Act of 1933, as amended (the
"1933 Act"), or under any state securities or "blue sky" laws of any state of the United States, and are being
offered only in a transaction not involving any public offering within the meaning of the 1933 Act, and, unless so registered,
may not be offered or sold in the United States or to U.S. Persons (as defined herein), except pursuant to an effective registration
statement under the 1933 Act, or pursuant to an exemption from, or in a transaction not subject to, the registration requirements
of the 1933 Act, and in each case only in accordance with applicable state and provincial securities laws; 

(b)                
the Company will refuse to register any transfer of any of the Securities not made in accordance
with the provisions of Regulation S, pursuant to an effective registration statement under the 1933 Act or pursuant to an available
exemption from, or in a transaction not subject to, the registration requirements of the 1933 Act; 

(c)                 
the decision to execute this Subscription Agreement and purchase the Shares agreed to be purchased
hereunder has not been based upon any oral or written representation as to fact or otherwise made by or on behalf of the Company
and such decision is based solely upon a review of publicly available information regarding the Company available on the website
of the United States Securities and Exchange Commission (the "SEC") available at www.sec.gov (the "Company Information");

(d)                
the Subscriber and the Subscriber's advisor(s) have had a reasonable opportunity to review
the Company Information and to ask questions of and receive answers from the Company regarding the Offering, and to obtain additional
information, to the extent possessed or obtainable without unreasonable effort or expense, necessary to verify the accuracy of
the information contained in the Company Information, or any other document provided to the Subscriber; 

(e)                 
the books and records of the Company were available upon reasonable notice for inspection,
subject to certain confidentiality restrictions, by the Subscriber during reasonable business hours at its principal place of business
and that all documents, records and books pertaining to this Offering have been made available for inspection by the Subscriber,
the Subscriber's attorney and/or advisor(s); 

(f)                 
by execution hereof the Subscriber has waived the need for the Company to communicate its acceptance
of the purchase of the Shares pursuant to this Subscription Agreement; 

(g)                
the Company is entitled to rely on the representations and warranties and the statements and
answers of the Subscriber contained in this Subscription Agreement and the Subscriber will hold harmless the Company from any loss
or damage it may suffer as a result of the Subscriber's failure to correctly complete this Subscription Agreement; 

(h)                
the Subscriber will indemnify and hold harmless the Company and, where applicable, its respective
directors, officers, employees, agents, advisors and shareholders from and against any and all loss, liability, claim, damage and
expense whatsoever (including, but not limited to, any and all fees, costs and expenses whatsoever reasonably incurred in investigating,
preparing or defending against any claim, lawsuit, administrative proceeding or investigation whether commenced or threatened)
arising out of or based upon any acknowledgment, representation or warranty of the Subscriber contained herein or in any other
document furnished by the Subscriber to the Company in connection herewith, being untrue in any material respect or any breach
or failure by the Subscriber to comply with any covenant or agreement made by the Subscriber to the Company in connection therewith;

(i)                  
the issuance and sale of the Shares to the Subscriber will not be completed if it would be
unlawful or if, in the discretion of the Company acting reasonably, it is not in the best interests of the Company; 

(j)                  
the Subscriber has been advised to consult the Subscriber’s own legal, tax and other
advisors with respect to the merits and risks of an investment in the Securities and with respect to the applicable resale restrictions,
and it is solely responsible (and the Company is not in any way responsible) for compliance with: 

		(i)	any applicable laws of the jurisdiction in which the Subscriber is resident in connection with
the distribution of the Securities hereunder, and 

		(ii)	applicable resale restrictions; 

(k)                
the Subscriber has not acquired the Shares as a result of, and will not itself engage in, any
"directed selling efforts" (as defined in Regulation S under the 1933 Act) in the United States in respect of any of
the Securities which would include any activities undertaken for the purpose of, or that could reasonably be expected to have the
effect of, conditioning the market in the United States for the resale of any of the Securities; provided, however, that the Subscriber
may sell or otherwise dispose of any of the Shares pursuant to registration of any of the Shares pursuant to the 1933 Act and any
applicable state securities laws or under an exemption from such registration requirements and as otherwise provided herein; 

(l)                  
the Subscriber is outside the United States when receiving and executing this Subscription
Agreement and is acquiring the Shares as principal for its own account, for investment purposes only, and not with a view to, or
for, resale, distribution or fractionalization thereof, in whole or in part, and no other person has a direct or indirect beneficial
interest in such Shares; 

(m)               
the statutory and regulatory basis for the exemption claimed for the offer and sale of the
Shares, although in technical compliance with Regulation S, would not be available if the offering is part of a plan or scheme
to evade the registration provisions of the 1933 Act; 

(n)                
the Company has advised the Subscriber that, if the Subscriber is a Canadian resident, the
Company is relying on an exemption from the requirements to provide the Subscriber with a prospectus and to sell the Shares through
a person registered to sell securities and, as a consequence of acquiring the Shares pursuant to this exemption, certain protections,
rights and remedies provided, including statutory rights of rescission or damages, will not be available to the Subscriber; 

(o)                
neither the SEC nor any other securities commission or similar regulatory authority has reviewed
or passed on the merits of any of the Securities; 

(p)                
no documents in connection with this Offering have been reviewed by the SEC or any state securities
administrators; 

(q)                
there is no government or other insurance covering any of the Securities; and 

(r)                 
this Subscription Agreement is not enforceable by the Subscriber unless it has been accepted
by the Company, and the Subscriber acknowledges and agrees that the Company reserves the right to reject any subscription for any
reason. 

		5.	REPRESENTATIONS, WARRANTIES AND COVENANTS OF THE SUBSCRIBER

5.1.              
The Subscriber hereby represents and warrants to and covenants with the Company (which representations,
warranties and covenants shall survive the Closing Date) that: 

(a)                 
the Subscriber is not a U.S. Person (as defined herein); 

(b)                
the Subscriber is not acquiring the Shares for the account or benefit of, directly or indirectly,
any U.S. Person (as defined herein); 

(c)                 
the Subscriber: 

(i)                  
is knowledgeable of, or has been independently advised as to, the applicable securities laws
of the securities regulators having application in the jurisdiction in which the Subscriber is resident (the “International
Jurisdiction”) which would apply to the acquisition of the Shares, 

(ii)                
is purchasing the Shares pursuant to exemptions from prospectus or equivalent requirements
under applicable securities laws or, if such is not applicable, the Subscriber is permitted to purchase the Shares under the applicable
securities laws of the securities regulators in the International Jurisdiction without the need to rely on any exemptions, 

(iii)               
acknowledges that the applicable securities laws of the authorities in the International Jurisdiction
do not require the Company to make any filings or seek any approvals of any kind whatsoever from any securities regulator of any
kind whatsoever in the International Jurisdiction in connection with the issue and sale or resale of any of the Securities, and

(iv)               
represents and warrants that the acquisition of the Shares by the Subscriber does not trigger:

A.                 
any obligation to prepare and file a prospectus or similar document, or any other report with
respect to such purchase in the International Jurisdiction, or 

B.                  
any continuous disclosure reporting obligation of the Company in the International Jurisdiction,
and 

the Subscriber will, if requested by the Company, deliver
to the Company a certificate or opinion of local counsel from the International Jurisdiction which will confirm the matters referred
to in subparagraphs (ii), (iii) and (iv) above to the satisfaction of the Company, acting reasonably;

(d)                
the Subscriber is acquiring the Shares as principal for investment only and not with a view
to, or for, resale, distribution or fractionalization thereof, in whole or in part, and, in particular, it has no intention to
distribute either directly or indirectly any of the Securities in the United States or to U.S. Persons (as defined herein);

(e)                 
the Subscriber is outside the United States when receiving and executing this Subscription
Agreement;

(f)                 
the Subscriber understands and agrees not to engage in any hedging transactions involving any
of the Securities unless such transactions are in compliance with the provisions of the 1933 Act and in each case only in accordance
with applicable state securities laws;

(g)                
the Subscriber acknowledges that it has not acquired the Shares as a result of, and will not
itself engage in, any "directed selling efforts" (as defined in Regulation S under the 1933 Act) in the United States
in respect of any of the Securities which would include any activities undertaken for the purpose of, or that could reasonably
be expected to have the effect of, conditioning the market in the United States for the resale of any of the Securities; provided,
however, that the Subscriber may sell or otherwise dispose of any of the Shares pursuant to registration of any of the Shares pursuant
to the 1933 Act and any applicable state securities laws or under an exemption from such registration requirements and as otherwise
provided herein;

(h)                
the Subscriber has the legal capacity and competence to enter into and execute this Subscription
Agreement and to take all actions required pursuant hereto and, if the Subscriber is a corporation, it is duly incorporated and
validly subsisting under the laws of its jurisdiction of incorporation and all necessary approvals by its directors, shareholders
and others have been obtained to authorize execution and performance of this Subscription Agreement on behalf of the Subscriber;

(i)                  
the entering into of this Subscription Agreement and the transactions contemplated hereby do
not result in the violation of any of the terms and provisions of any law applicable to, or, if applicable, the constating documents
of, the Subscriber, or of any agreement, written or oral, to which the Subscriber may be a party or by which the Subscriber is
or may be bound;

(j)                  
the Subscriber has duly executed and delivered this Subscription Agreement and it constitutes
a valid and binding agreement of the Subscriber enforceable against the Subscriber;

(k)                
the Subscriber has received and carefully read this Subscription Agreement;

(l)                  
the Subscriber (i) has adequate net worth and means of providing for its current financial
needs and possible personal contingencies, (ii) has no need for liquidity in this investment, and (iii) is able to bear the economic
risks of an investment in the Securities for an indefinite period of time, and can afford the complete loss of such investment;

(m)               
the Subscriber has the requisite knowledge and experience in financial and business matters
as to be capable of evaluating the merits and risks of the investment in the Securities and the Company; 

(n)                
the Subscriber understands and agrees that the Company and others will rely upon the truth
and accuracy of the acknowledgements, representations, warranties, covenants and agreements contained in this Subscription Agreement
and agrees that if any of such acknowledgements, representations and agreements are no longer accurate or have been breached, the
Subscriber shall promptly notify the Company; 

(o)                
the Subscriber is aware that an investment in the Company is speculative and involves certain
risks, including the possible loss of the investment; 

(p)                
the Subscriber is purchasing the Shares for its own account for investment purposes only and
not for the account of any other person and not for distribution, assignment or resale to others, and no other person has a direct
or indirect beneficial interest is such Shares, and the Subscriber has not subdivided his interest in the Shares with any other
person; 

(q)                
the Subscriber is not an underwriter of, or dealer in, the shares of the Company's common stock,
nor is the Subscriber participating, pursuant to a contractual agreement or otherwise, in the distribution of the Shares; 

(r)                 
the Subscriber has made an independent examination and investigation of an investment in the
Securities and the Company and has depended on the advice of its legal and financial advisors and agrees that the Company will
not be responsible in anyway whatsoever for the Subscriber's decision to invest in the Securities and the Company; 

(s)                 
if the Subscriber is acquiring the Shares as a fiduciary or agent for one or more investor
accounts, the Subscriber has sole investment discretion with respect to each such account, and the Subscriber has full power to
make the foregoing acknowledgements, representations and agreements on behalf of such account; 

(t)                  
the Subscriber is not aware of any advertisement of any of the Shares and is not acquiring
the Shares as a result of any form of general solicitation or general advertising including advertisements, articles, notices or
other communications published in any newspaper, magazine or similar media or broadcast over radio or television, or any seminar
or meeting whose attendees have been invited by general solicitation or general advertising; 

(u)                
no person has made to the Subscriber any written or oral representations: 

(i)                  
that any person will resell or repurchase any of the Securities, 

(ii)                
that any person will refund the purchase price of any of the Securities, or

(iii)               
as to the future price or value of any of the Securities;

5.2.              
In this Subscription Agreement, the term "U.S. Person" shall have the meaning ascribed
thereto in Regulation S promulgated under the 1933 Act and for the purpose of the Subscription Agreement includes any person in
the United States. 

		6.	ACKNOWLEDGEMENT AND WAIVER

6.1.              
The Subscriber has acknowledged that the decision to purchase the Shares was solely made on
the Company Information. The Subscriber hereby waives, to the fullest extent permitted by law, any rights of withdrawal, rescission
or compensation for damages to which the Subscriber might be entitled in connection with the distribution of any of the Shares.

		7.	REPRESENTATIONS AND WARRANTIES WILL BE RELIED UPON BY THE COMPANY 

7.1.              
The Subscriber acknowledges that the acknowledgements, representations and warranties contained
herein are made by it with the intention that they may be relied upon by the Company and its legal counsel in determining the Subscriber's
eligibility to purchase the Shares under applicable securities legislation, or (if applicable) the eligibility of others on whose
behalf it is contracting hereunder to purchase the Shares under applicable securities legislation. The Subscriber further agrees
that by accepting delivery of the certificates representing the Shares, it will be representing and warranting that the acknowledgements
representations and warranties contained herein are true and correct as of the date hereof and will continue in full force and
effect notwithstanding any subsequent disposition by the Subscriber of such Shares. 

		8.	RESALE RESTRICTIONS

8.1.              
The Subscriber acknowledges that any resale of the Securities will be subject to resale restrictions
contained in the securities legislation applicable to the Subscriber or proposed transferee. The Subscriber acknowledges that none
of the Securities have been registered under the 1933 Act or the securities laws of any state of the United States. None of the
Securities may be offered or sold in the United States unless registered in accordance with federal securities laws and all applicable
state securities laws or exemptions from such registration requirements are available. 

		9.	LEGENDING AND REGISTRATION OF SUBJECT SECURITIES

9.1.              
The Subscriber hereby acknowledges that upon the issuance thereof, and until such time as the
same is no longer required under the applicable securities laws and regulations, the certificates representing the Shares will
bear a legend in substantially the following form: 

THE SECURITIES REPRESENTED HEREBY HAVE
BEEN OFFERED IN AN OFFSHORE TRANSACTION TO A PERSON WHO IS NOT A U.S. PERSON (AS DEFINED HEREIN) PURSUANT TO REGULATIONS UNDER
THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE "1933 ACT").

NONE OF THE SECURITIES REPRESENTED HEREBY
HAVE BEEN REGISTERED UNDER THE 1933 ACT, OR ANY U.S. STATE SECURITIES LAWS, AND, UNLESS SO REGISTERED, MAY NOT BE OFFERED OR SOLD,
DIRECTLY OR INDIRECTLY, IN THE UNITED STATES (AS DEFINED HEREIN) OR TO U.S. PERSONS EXCEPT IN ACCORDANCE WITH THE PROVISIONS OF
REGULATION S UNDER THE 1933 ACT, PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE 1933 ACT, OR PURSUANT TO AN AVAILABLE
EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE 1933 ACT AND IN EACH CASE ONLY IN ACCORDANCE
WITH APPLICABLE STATE SECURITIES LAWS. IN ADDITION, HEDGING TRANSACTIONS INVOLVING THE SECURITIES MAY NOT BE CONDUCTED UNLESS IN
COMPLIANCE WITH THE 1933 ACT. "UNITED STATES" AND "U.S. PERSON" ARE AS DEFINED BY REGULATION S UNDER THE 1933
ACT.

9.2.              
The Subscriber hereby acknowledges and agrees to the Company making a notation on its records
or giving instructions to the registrar and transfer agent of the Company in order to implement the restrictions on transfer set
forth and described in this Subscription Agreement. 

		10.	COLLECTION OF PERSONAL INFORMATION

10.1.           
The Subscriber acknowledges and consents to the fact that the Company is collecting the Subscriber's
personal information for the purpose of fulfilling this Subscription Agreement and completing the Offering. The Subscriber's personal
information (and, if applicable, the personal information of those on whose behalf the Subscriber is contracting hereunder) may
be disclosed by the Company to (a) stock exchanges or securities regulatory authorities, (b) the Company's registrar and transfer
agent, (c) tax authorities, (d) other authorities concerned with money laundering, and (e) any of the other parties involved in
the Offering, including legal counsel, and may be included in record books in connection with the Offering. By executing this Subscription
Agreement, the Subscriber is deemed to be consenting to the foregoing collection, use and disclosure of the Subscriber's personal
information (and, if applicable, the personal information of those on whose behalf the Subscriber is contracting hereunder) and
to the retention of such personal information for as long as permitted or required by law or business practice. Notwithstanding
that the Subscriber may be purchasing Shares as agent on behalf of an undisclosed principal, the Subscriber agrees to provide,
on request, particulars as to the identity of such undisclosed principal as may be required by the Company in order to comply with
the foregoing. 

		11.	COSTS

11.1.           
The Subscriber acknowledges and agrees that all costs and expenses incurred by the Subscriber
(including any fees and disbursements of any special counsel retained by the Subscriber) relating to the purchase of the Shares
shall be borne by the Subscriber. 

		12.	GOVERNING LAW

12.1.           
This Subscription Agreement is governed by the laws of the State of Nevada. The Subscriber,
in its personal or corporate capacity and, if applicable, on behalf of each beneficial purchaser for whom it is acting, irrevocably
attorns to the exclusive jurisdiction of the Courts of the State of Nevada. 

		13.	SURVIVAL

13.1.           
This Subscription Agreement, including without limitation the representations, warranties and
covenants contained herein, shall survive and continue in full force and effect and be binding upon the parties hereto notwithstanding
the completion of the purchase of the Shares by the Subscriber pursuant hereto. 

		14.	ASSIGNMENT

14.1.           
This Subscription Agreement is not transferable or assignable. 

		15.	SEVERABILITY

15.1.           
The invalidity or unenforceability of any particular provision of this Subscription Agreement
shall not affect or limit the validity or enforceability of the remaining provisions of this Subscription Agreement. 

		16.	ENTIRE AGREEMENT

16.1.           
Except as expressly provided in this Subscription Agreement and in the agreements, instruments
and other documents contemplated or provided for herein, this Subscription Agreement contains the entire agreement between the
parties with respect to the sale of the Shares and there are no other terms, conditions, representations or warranties, whether
expressed, implied, oral or written, by statute or common law, by the Company or by anyone else. 

		17.	NOTICES

17.1.           
All notices and other communications hereunder shall be in writing and shall be deemed to have
been duly given if mailed or transmitted by any standard form of telecommunication. Notices to the Subscriber shall be directed
to the address provided by the Subscriber herein and notices to the Company shall be directed to it at the first page of this Subscription
Agreement. 

		18.	COUNTERPARTS AND ELECTRONIC MEANS

18.1.           
This Subscription Agreement may be executed in any number of counterparts, each of which, when
so executed and delivered, shall constitute an original and all of which together shall constitute one instrument. Delivery of
an executed copy of this Subscription Agreement by electronic facsimile transmission or other means of electronic communication
capable of producing a printed copy will be deemed to be execution and delivery of this Subscription Agreement as of the date hereinafter
set forth. 

By executing this Agreement, the Subscriber certifies that the
Subscriber and any beneficial purchaser for whom the Subscriber is acting is resident in the jurisdiction shown below as the
“Address of the Subscriber (residence)”. The address of the Subscriber will be accepted by the Company as a
representative as to the address of residency for the Subscriber.

 

IN WITNESS WHEREOF, the undersigned has executed this Agreement this
21st day of June, 2013.

 

	If an Individual:	 	If a Corporation, Partnership or Other Entity:
	 	 	 
	 	 	OPHION MANAGEMENT LTD.
	Signature	 	Print or Type Name of Entity
	 	 	 
	Thomas Mills	 	/s/ Thomas Mills
	Print or Type Name	 	Signature of Authorized Signatory
	 	 	 
	157 Adelaide Street, Suite 338, Toronto, On  M5H 4E7	 	 
	Mailing Address of Subscriber	 	 
	 	 	 

 

By signing this acceptance, the Company agrees to be bound by all
representations, warranties, covenants and agreements herein.

 

ACCEPTED this 24th day of June, 2013.

 

AMERICAN MINING CORPORATION

 

 

 

Per: /s/ Andrew Grundman

Andrew Grundman

Authorized signatoryexhibit_10-1.htm

EXHIBIT 10.1

SECOND AMENDMENT TO CREDIT AND SECURITY AGREEMENT

 

This SECOND AMENDMENT TO CREDIT AND SECURITY AGREEMENT (this “Second Amendment”) is entered into as of June 26, 2013 (the “Second Amendment Effective Date”), by and among the following:  (i) WELLS FARGO BANK, NATIONAL ASSOCIATION (the “Lender”), (ii) SOUTHERN FRAC, LLC, a Texas limited liability company (the “Borrower”), (iii) GENERAL FINANCE CORPORATION, a Delaware corporation (“GFN”), and (iv) GFN MANUFACTURING CORPORATION, a Delaware corporation (“GFN Mfg” and, together with GFN, the “Guarantors”)(the Borrower and the Guarantors shall be collectively referred to herein as the “Loan Parties”).

 

Recitals

 

Reference is made to the following:

 

	
  

	
A.

	
Lender, Borrower and Guarantors have entered into that certain Credit and Security Agreement, dated as of October 1, 2012 (the “Credit Agreement”), as amended by that certain First Amendment to Credit and Security Agreement, dated as of February 22, 2013.

 

	
  

	
B.

	
Borrower has requested that it be allowed to prepay all of the Indebtedness related to the Equipment Term Loan and the CAPEX Loan in an aggregate amount equal to $334,862.56 as of the Second Amendment Effective Date and that the cash held in the Restricted Account be released and used to pay down the Indebtedness in an aggregate amount equal to $350,000.00 and to re-pay certain inter-company indebtedness back to GFN in an aggregate amount equal to $650,000.00 (the “Agreed Prepayment”).

 

	
  

	
C.

	
Subject to the terms conditions and limitations set forth herein, Lender is willing to consent to the prepayments and the release of the cash in the Restricted Account, as detailed in Recital B above, and amend the Credit Agreement to accommodate the effects of such transactions as set forth in this Second Amendment.

 

AGREEMENTS

 

NOW, THEREFORE, in consideration of the premises herein contained and other good and valuable consideration, the sufficiency of which is hereby acknowledged, the Lender and the Loan Parties, intending to be legally bound, agree to the accuracy and completeness of the above Recitals, and further agree as follows:

 

1.           DEFINITIONS.  All capitalized terms used but not otherwise defined in this Second Amendment shall have the meanings ascribed to them in the Credit Agreement.

 

2.           CONSENT TO RELEASE OF THE CASH IN THE RESTRICTED ACCOUNT.  Subject to the terms, conditions and limitations contained in this Second Amendment (including, without limitation, the full and timely satisfaction of each of the conditions precedent specified in Article 4 of this Second Amendment) and the Credit Agreement, Lender hereby:  (a) acknowledges that the conditions to the release of the cash in the Restricted Account set forth in Section 6.12(c)(iv) of the Credit Agreement are hereby met;  (b) consents to the release of the cash in the Restricted Account;  and (c) consents to the one-time payment Agreed Prepayment in the amount of $650,000 to GFN by the Borrower promptly following the Second Amendment Effective Date.

 

3.           AMENDMENTS TO CREDIT AGREEMENT.

 

a.           As of the Second Amendment Effective Date, Schedule 1.1 to the Credit Agreement is hereby amended by adding definitions of “Equipment Appraisal Condition”, “Second Amendment”, and “Second Amendment Effective Date” to such Schedule to read in its entirety as follows:

  

  

  

	
  

	
“Equipment Appraisal Condition” means, (i) provided no Default or Event of Default exists or has occurred, the receipt of an annual appraisal of the Net Liquidation Percentage applicable to Borrower’s Equipment, performed at Borrower’s expense, that is satisfactory to Lender in its sole discretion, and (ii) in the event a Default or an Event of Default exists or has occurred, the receipt of one or more appraisals of the Net Liquidation Percentage applicable to Borrower’s Equipment, performed at Borrower’s expense, that is satisfactory to Lender in its sole discretion.

	
  

	
“Second Amendment” means that certain Second Amendment to Credit and Security Agreement, dated as of June 26, 2013, by and among Lender, Borrower and Guarantors, as the same may be amended, modified, supplemented or restated from time to time.

	
  

	
“Second Amendment Effective Date” shall have the meaning assigned to such term in the Second Amendment.

b.           As of the Second Amendment Effective Date, Schedule 1.1 to the Credit Agreement is hereby amended by amending and restating the following definitions to read in their entirety as follows:

“Borrowing Base” means, as of any date of determination, the result of:

 

 

(a)           85% (less the amount, if any, of the Dilution Reserve, if applicable) of the amount of Eligible Accounts, plus

 

(b)           with respect to Eligible Inventory, the lowest of

 

(i)           $6,000,000,

 

(ii)           the sum of (x) with respect to Eligible Inventory consisting of raw materials,47% of the Value of Eligible Inventory consisting of raw materials (until the first anniversary of the Closing Date, when the percentage will be reduced to 40% in increments of 1% per month for seven months) and (y) with respect to Eligible Inventory consisting of finished goods, 74% of the Value of Eligible Inventory consisting of finished goods (until the first anniversary of the Closing Date, when the percentage will be reduced to 63% in increments of 2% per month for six months), or

 

     (iii)        the sum of (x) with respect to Eligible Inventory consisting of raw materials,100% of the Net Orderly Liquidation Value of Eligible Inventory consisting of raw materials (until the first anniversary of the Closing Date, when the percentage will be reduced to 85% in equal increments over a period of seven months) and (y) with respect to Eligible Inventory consisting of finished goods, 100% of the Net Orderly Liquidation Value of Eligible Inventory consisting of finished goods (until the first anniversary of the Closing Date, when the percentage will be reduced to 85% in equal increments over a period of six months); provided, however, the Lender, in its sole discretion, may reduce to 85% following its review of the results of a future appraisal; plus

 

(c)           the aggregate amount of Reserves, if any, established by Lender.

  

  

  

“Fixed Charges” means, with respect to any fiscal period of Borrower, the sum, without duplication, of (a) cash Interest Expense paid during such period (other than interest paid-in-kind, amortization of financing fees, and other non-cash Interest Expense), (b) principal payments paid in cash in respect of Indebtedness paid during such period (excluding both the $334,862.56 paid on the Second Amendment Effective Date for the payment in full of the CAPEX Loan and the Equipment Term Loan and the amount of the Agreed Prepayment as of the Second Amendment Effective Date), including cash payments with respect to Capital Leases and any lease payments made by Borrower to GFN Mfg. used to repay Indebtedness of GFN Mfg. incurred in connection with any Permitted Real Property Acquisition, and (c) all Restricted Junior Payments (other than Pass-Through Tax Liabilities) and other distributions paid in cash during such period.

 

	
  

	
“Interest Rate Margin” means (i) with respect to Advances, 3.5 percentage points; (ii) with respect to the Restated Equipment Term Loan, 4.0 percentage points; and (iii) with respect to Term Loan “B”, 7.0 percentage points.

	
  

	
“Inventory Appraisal Condition” means, provided no Default or Event of Default exists or has occurred, the receipt of an appraisal of the Net Liquidation Percentage applicable to Borrower’s Inventory, performed at Borrower’s expense, (i) 6 months after the Closing Date, that is satisfactory to Lender in its sole discretion and, thereafter, (ii) twice annually until all Indebtedness has been paid in full.

c.           As of the Second Amendment Effective Date, a subsection (u) is added to the definition of “Eligible Inventory” in Schedule 1.1 to the Credit Agreement and shall read in its entirety as follows:

“(u)           it is a sub-assembly.”

d.           As of the Second Amendment Effective Date, subsection (a) of Section 2.2 of the Credit Agreement is hereby amended and restated and shall read in its entirety as follows::

 

“(a)           Restated Equipment Term Loan.  As of the Second Amendment Effective Date, the Equipment Term Loan and the CAPEX Loan were combined and reissued as the Restated Equipment Term Loan (as defined below).  Lender shall extend a secured term loan to Borrower through a single advance in an aggregate amount not in excess of $860,000 (the “Restated Equipment Term Loan”).  The Restated Equipment Term Loan shall be advanced on the Second Amendment Effective Date and secured by all the Collateral.  The principal of the Restated Equipment Term Loan shall be repaid monthly in arrears in 48 installments on the following dates and in the following amounts:

	
Date

	
Installment Amount

	
July 1, 2013

	
$17,916.67

	
August 1, 2013

	
$17,916.67

	
September 1, 2013

	
$17,916.67

	
October 1, 2013

	
$17,916.67

	
November 1, 2013

	
$17,916.67

	
December 1, 2013

	
$17,916.67

	
January 1, 2014

	
$17,916.67

	
February 1, 2014

	
$17,916.67

	
March 1, 2014

	
$17,916.67

	
April 1, 2014

	
$17,916.67

	
May 1, 2014

	
$17,916.67

	
June 1, 2014

	
$17,916.67

	
July 1, 2014

	
$17,916.67

  

  

  

	
Date

	
Installment Amount

	
August 1, 2014

	
$17,916.67

	
September 1, 2014

	
$17,916.67

	
October 1, 2014

	
$17,916.67

	
November 1, 2014

	
$17,916.67

	
December 1, 2014

	
$17,916.67

	
January 1, 2015

	
$17,916.67

	
February 1, 2015

	
$17,916.67

	
March 1, 2015

	
$17,916.67

	
April 1, 2015

	
$17,916.67

	
May 1, 2015

	
$17,916.67

	
June 1, 2015

	
$17,916.67

	
July 1, 2015

	
$17,916.67

	
August 1, 2015

	
$17,916.67

	
September 1, 2015

	
$17,916.67

	
October 1, 2015

	
$17,916.67

	
November 1, 2015

	
$17,916.67

	
December 1, 2015

	
$17,916.67

	
January 1, 2016

	
$17,916.67

	
February 1, 2016

	
$17,916.67

	
March 1, 2016

	
$17,916.67

	
April 1, 2016

	
$17,916.67

	
May 1, 2016

	
$17,916.67

	
June 1, 2016

	
$17,916.67

	
July 1, 2016

	
$17,916.67

	
August 1, 2016

	
$17,916.67

	
September 1, 2016

	
$17,916.67

	
October 1, 2016

	
$17,916.67

	
November 1, 2016

	
$17,916.67

	
December 1, 2016

	
$17,916.67

	
January 1, 2017

	
$17,916.67

	
February 1, 2017

	
$17,916.67

	
March 1, 2017

	
$17,916.67

	
April 1, 2017

	
$17,916.67

	
May 1, 2017

	
$17,916.67

	
June 1, 2017

	
$17,916.67

 

	
  

	
The outstanding unpaid principal balance and all accrued and unpaid interest on the Restated Equipment Term Loan shall be due and payable on the Termination Date. Any principal amount of the Restated Equipment Term Loan that is repaid or prepaid may not be reborrowed.”

 

e.           As of the Second Amendment Effective Date, Section 2.4(f) to the Credit Agreement is hereby amended by amending and restating Section 2.4(f) to read in its entirety as follows:

  

  

  

	
  

	
“(f)

	
Mandatory Prepayments.  If, at any time, (i) the Revolver Usage exceeds (A) the Borrowing Base or (B) the Maximum Revolver Amount, less Reserves (in accordance with Section 2.1(c)) at such time or (ii) (A) the sum of the outstanding principal balance of the Term Loan on such date plus the Revolver Usage on such date exceeds (B) the Maximum Credit, less Reserves (in accordance with Section 2.1(c)) at such time or (iii) if, following the annual appraisal of the Equipment of the Borrower’s and its Subsidiaries, (A) the sum of the outstanding principal balance of the Restated Equipment Term Loan on such date exceeds (B) 85% of the Net Orderly Liquidation Value of the Equipment (such excess amount described in clauses (i), (ii), and (iii) being referred to as the “Overadvance Amount”), then Borrower shall promptly, but in any event, within 3 Business Days, prepay either Advances (in the case of subsection (i) and (ii) above) or the Restated Equipment Term Loan (in the case of subsection (iii) above) in an aggregate amount equal to the corresponding Overadvance Amount.  If payment in full of the outstanding revolving loans is insufficient to eliminate the Overadvance Amount and Letter of Credit Usage continues to exceed the Borrowing Base, Borrower shall maintain Letter of Credit Collateralization of the outstanding Letter of Credit Usage. Lender shall not be obligated to provide any Advances during any period that an Overadvance Amount is outstanding.”

f.           As of the Second Amendment Effective Date, Section 6.2 to the Credit Agreement is hereby amended by amending and restating Section 6.2 to read in its entirety as follows:

 

                      “6.2           Collateral Reporting.  Satisfy the Equipment Appraisal Condition and provide Lender with each of the reports set forth on Schedule 6.2 at the times specified therein. In addition, Borrower agrees to use commercially reasonable efforts in cooperation with Lender to facilitate and implement a system of electronic collateral reporting in order to provide electronic reporting of each of the items set forth on such Schedule.”

g.           As of the Second Amendment Effective Date, Section 7.7(a)(ii) to the Credit Agreement is hereby amended by amending and restating Section 7.7(a)(ii) to read in its entirety as follows:

	
  

	
“(ii)

	
make any payment on account of Indebtedness (including any payment in respect of any Subordinated Indebtedness) that has been contractually subordinated in right of payment to the Obligations if such payment is not permitted at such time under the subordination terms and conditions (including the terms of the applicable Subordination Agreement), which subordination terms and conditions shall require that the applicable Permitted Payment Conditions shall have been satisfied in respect of each payment of such Indebtedness (including any payment in respect of any Subordinated Indebtedness); provided, however, following the Second Amendment Effective Date, a one-time payment of $650,000 may be made to GFN by the Borrower, or”

4.           CONDITIONS PRECEDENT TO EFFECTIVENESS OF SECOND AMENDMENT.  The effectiveness of this Second Amendment is subject to the full satisfaction of the following conditions precedent on or before 5:00 pm CDT, June 26, 2013, unless specifically waived or extended in writing by Lender:

 

4.1.           Lender shall have received this Second Amendment, duly executed by Borrower and each Guarantor

 

4.2.           Lender shall have received a payment of $350,000 on the Revolving Credit Facility upon the release of the funds in the Restricted Account and a payment of $334,862.56 to pay all Indebtedness related to the Equipment Term Loan and the CAPEX Loan.

 

4.3.           Lender shall be satisfied with all corporate proceedings taken in connection with the transactions contemplated by this Second Amendment and all documents, instruments and other legal matters incident thereto shall be satisfactory to Lender and its legal counsel.

 

  

  

  

4.4.           The representations and warranties contained herein and in the Credit Agreement and the other Loan Documents shall be true and correct on and as of the Second Amendment Effective Date and the date on which all conditions precedent hereunder are satisfied, except to the extent that any such representations or warranties relate to an earlier specific date or dates.

 

4.5.           No Default or Event of Default under the Credit Agreement or the other Loan Documents shall have occurred and be continuing, unless such Default or Event of Default has been specifically waived in writing by Lender.

 

5.           ACKNOWLEDGEMENT OF GUARANTORS.

 

5.1.           GFN Reaffirmation.  GFN hereby acknowledges and agrees that (a) the Credit Agreement and each of the GFN Loan Documents is in full force and effect and continues to be the valid, legal and binding obligation of GFN to the extent GFN is a party thereto, and (b) the obligations arising thereunder are without offset or reduction.  GFN hereby (i) consents to the terms of this Second Amendment and agrees that nothing herein shall impair in any way its obligations under the Credit Agreement or any of the GFN Loan Documents and (ii) reaffirms each of its representations, warranties, covenants, guarantees and other agreements set forth in the Credit Agreement or any of the GFN Loan Documents.

 

5.2.           GFN Mfg Reaffirmation.  GFN Mfg hereby acknowledges and agrees that (a) the Credit Agreement and each of the GFN Mfg Loan Documents is in full force and effect and continues to be the valid, legal and binding obligation of GFN Mfg to the extent GFN Mfg is a party thereto, and (b) the obligations arising thereunder are without offset or reduction.  GFN Mfg hereby (i) consents to the terms of this Second Amendment and agrees that nothing herein shall impair in any way its obligations under the Credit Agreement or any of the GFN Mfg Loan Documents and (ii) reaffirms each of its representations, warranties, covenants, guarantees and other agreements set forth in the Credit Agreement or any of the GFN Mfg Loan Documents.

 

6.           ADDITIONAL COVENANTS; RATIFICATIONS; REPRESENTATIONS AND WARRANTIES.

 

6.1.           The terms and provisions set forth in this Second Amendment shall supersede all inconsistent terms and provisions set forth in the Credit Agreements and, except as expressly set forth in this Second Amendment, the terms and provisions of the Credit Agreement are ratified and confirmed and shall continue in full force and effect.  The parties hereto agree that the Credit Agreement shall continue to be legal, valid, binding and enforceable in accordance with its terms, and this Second Amendment constitutes a Loan Document for all purposes.

 

6.2.           The Loan Parties hereby represent and warrant to Lender as to itself:

 

(a)           the execution, delivery and performance of this Second Amendment and any and all other agreements executed and/or delivered in connection herewith or therewith have been authorized by all requisite action on the part of the Loan Parties and their respective directors and shareholders, and will not violate the Governing Documents of any of the Loan Parties;

 

(b)           the representations and warranties contained in this Second Amendment and the Credit Agreement are true and correct on and as of the date hereof as though made on and as of such date, except to the extent that breaches thereof are specifically waived by this Second Amendment;

 

(c)           no Default or Event of Default has occurred and is continuing;

 

(d)           Loan Parties are in full compliance with all covenants and agreements contained in the Credit Agreement (and the Loan Documents);

 

(e)           the consummation of this Second Amendment will not (i) violate any provision of the organizational documents or governing instruments; (ii) violate any judgment, order, ruling, injunction, decree or award of any court, administrative agency or governmental body against, or binding upon, any of the Loan Parties; or (iii) constitute a violation by any of the Loan Parties of any law or regulation of any jurisdiction applicable to any of the Loan Parties;

 

  

  

  

(f)           this Second Amendment was reviewed by each of the Loan Parties, who acknowledges and agrees that such Loan Party (i) understands fully the terms of this Second Amendment and the consequences of the issuance hereof, (ii) has been afforded an opportunity to have this Second Amendment reviewed by, and to discuss this Second Amendment with, such attorneys and other Persons as Borrower may wish, and (iii) has entered into this Second Amendment of its own free will and accord and without threat or duress; and

 

(g)           this Second Amendment and all information furnished to Lender is made and furnished in good faith, for value and valuable consideration; and this Second Amendment has not been made or induced by any fraud, duress or undue influence exercised by Lender or any other Person.

 

7.           MISCELLANEOUS.

 

7.1.           Misrepresentation.  Borrower shall indemnify and hold Lender (and each of its officers, agents, employees, affiliates, and representatives) harmless from and against any losses, damages, costs and expenses (including attorneys’ fees) incurred by Lender as a direct or indirect result of (a) any breach of any representation or warranty contained in this Second Amendment, or (b) any breach or default under any of the covenants or agreements contained in this Second Amendment.

 

7.2.           Covenants and Agreements.  Borrower hereby agrees and acknowledges that it is, well and truly indebted to Lender pursuant to the terms of the Loan Documents and hereby agrees to observe, comply with and perform all of the obligations, terms and conditions under or in connection with the Loan Documents.

 

7.3.           Ratification of Liens and Security Interests.  Each of the Loan Parties hereby acknowledges and agrees that the liens and security interests of Lender, as more fully described in Credit Agreement and the other Loan Documents, are valid and subsisting liens and security interests and are superior to all liens and security interests other than those exceptions approved by Lender in writing and as otherwise permitted under the Credit Agreement.

 

7.4.           No Waiver.  Each of the Loan Parties agrees that nothing contained in this Second Amendment shall affect or impair the validity or priority of the liens and security interests under any of the Loan Documents.  Lender further reserves all of its rights under Loan Documents, except as expressly modified herein.

 

7.5.           Survival of Representations and Warranties.  Except as provided otherwise in this Second Amendment, all representations and warranties made in the Credit Agreement and the other Loan Documents including, without limitation, any document furnished in connection with this Second Amendment, shall survive the execution and delivery of this Second Amendment, and no investigation by Lender or any closing shall affect the representations and warranties or the right of Lender to rely upon them.

 

7.6.           Reference to Credit Agreement.  Each of the Loan Documents and the Credit Agreement and any and all other agreements, documents or instruments now or hereafter executed and delivered pursuant to the terms hereof or pursuant to the terms of the Credit Agreement as amended hereby, are hereby amended so that any reference in such Loan Documents to the Credit Agreement shall mean a reference to the Credit Agreement as amended hereby.

7.7.           Expenses of Lender.  Borrower agrees to pay on demand all costs and expenses incurred by Lender in connection with the preparation, negotiation and execution of this Second Amendment and any other agreements executed pursuant hereto, including, without limitation, the reasonable costs and fees of Lender’s legal counsel.  Borrower acknowledges that Lender may debit Borrower’s account to pay such costs and expenses without further consent of, or notice, to Borrower.  Further, Borrower acknowledges that, at the execution and delivery of this Second Amendment, Lender may debit Borrower’s account to pay costs and expenses, including Lender’s attorneys’ fees, incurred at such time.

 

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

 

  

  

  

7.9.           Successors and Assigns.  This Second Amendment will inure to the benefit of and be binding upon the parties hereto and their respective successors and permitted assigns.

 

7.10.           Headings.  The headings of the sections and subsections of this Second Amendment are inserted for convenience only and do not constitute a part of this Second Amendment.

 

7.11.           Counterparts.  This Second Amendment may be executed in counterparts, and when so executed each counterpart shall be deemed to be an original, and said counterparts together shall constitute one and the same instrument.  However, no party shall be required to exhibit or prove all counterparts of the original agreement to make proof of same, rather each counterpart shall constitute an enforceable agreement against the party who has executed the same.

 

7.12.           Facsimile and Electronic Execution. This Second Amendment may be executed and delivered by facsimile or other electronic transmission, and the production of a facsimile counterpart shall have the same force and effect as production of an originally executed counterpart for all purposes.

 

7.13.           No Commitment.  Each of the Loan Parties agrees that Lender has not made any commitment or other agreement regarding further amendment the Credit Agreement or the other Loan Documents.  Each of the Loan Parties warrants and represents that each of the Loan Parties has not, and will not, rely on any commitment or other agreement on the part of Lender unless such commitment or agreement is in writing and signed by Lender.

 

7.14.           Survival.  All representations, warranties, covenants and agreements of the parties made in this Second Amendment shall survive the execution and delivery hereof, until such time as all of the obligations of the parties hereto shall have lapsed in accordance with their respective terms or shall have been discharged in full.

 

7.15.           Time of Essence.  The parties to this Second Amendment have agreed specifically with regard to the times for performance set forth in this Second Amendment.  Further, the parties to this Second Amendment acknowledge that the agreements with regard to the times for performance are material to this Second Amendment.  Therefore, the parties agree and acknowledge that time is of the essence to this Second Amendment.

 

7.16.           Agreement Binding on Borrower and Guarantors.  The Loan Parties agree that this Agreement will be binding on each of the Loan Parties and their respective successors and assigns; provided, no obligation or right hereunder shall be assignable by any Borrower Party (whether voluntarily, involuntarily or by operation of law) without the prior written consent of Lender.

 

7.17.           Law Governing.  THIS SECOND AMENDMENT SHALL BE DEEMED TO HAVE BEEN SUBSTANTIALLY NEGOTIATED AND MADE IN THE STATE OF TEXAS AND SHALL BE INTERPRETED AND THE RIGHTS OF THE PARTIES DETERMINED IN ACCORDANCE WITH THE LAWS OF THE UNITED STATES APPLICABLE THERETO AND THE INTERNAL LAWS OF THE STATE OF TEXAS APPLICABLE TO AN AGREEMENT EXECUTED, DELIVERED AND PERFORMED THEREIN, WITHOUT GIVING EFFECT TO THE CHOICE-OF-LAW RULES THEREOF OR ANY OTHER PRINCIPLE THAT COULD REQUIRE THE APPLICATION OF THE SUBSTANTIVE LAW OF ANY OTHER JURISDICTION.

 

7.18.           Waiver; Modification.  NO PROVISION OF THIS SECOND AMENDMENT MAY BE WAIVED, CHANGED OR MODIFIED, OR THE DISCHARGE THEREOF ACKNOWLEDGED, ORALLY, BUT ONLY BY AN AGREEMENT IN WRITING SIGNED BY THE PARTY AGAINST WHOM THE ENFORCEMENT OF ANY WAIVER, CHANGE, MODIFICATION OR DISCHARGE IS SOUGHT.  NO DELAY ON THE PART OF LENDER IN EXERCISING ANY RIGHT, POWER OR PRIVILEGE HEREUNDER, SHALL OPERATE AS A WAIVER THEREOF, NOR SHALL ANY WAIVER OF ANY RIGHT, POWER OR PRIVILEGE HEREUNDER OPERATE AS A WAIVER OF ANY OTHER RIGHT, POWER OR PRIVILEGE HEREUNDER, NOR SHALL ANY SINGLE OR PARTIAL EXERCISE OF ANY RIGHT, POWER OR PRIVILEGE HEREUNDER PRECLUDE ANY OTHER OR FURTHER EXERCISE THEREOF, OR THE EXERCISE OF ANY OTHER RIGHT, POWER OR PRIVILEGE HEREUNDER.  ALL RIGHTS AND REMEDIES HEREIN PROVIDED ARE CUMULATIVE AND ARE NOT EXCLUSIVE OF ANY RIGHTS OR REMEDIES, WHICH THE PARTIES HERETO MAY OTHERWISE HAVE AT LAW OR IN EQUITY.

 

  

  

  

7.19.           Waiver of Jury Trial.  TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, THE LOAN PARTIES HEREBY IRREVOCABLY AND EXPRESSLY WAIVE ALL RIGHT TO A TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM (WHETHER BASED UPON CONTRACT, TORT, OR OTHERWISE) ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THE ACTIONS OF LENDER IN THE NEGOTIATION, ADMINISTRATION OR ENFORCEMENT THEREOF.

 

7.20.           Final Agreement.  THIS SECOND AMENDMENT AND THE LOAN DOCUMENTS REPRESENT THE ENTIRE EXPRESSION OF THE PARTIES WITH RESPECT TO THE SUBJECT MATTER HEREOF ON THE DATE THIS SECOND AMENDMENT IS EXECUTED.  NEITHER THIS SECOND AMENDMENT NOR THE LOAN DOCUMENTS MAY BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES.  THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.

 

7.21.           Release. EACH OF THE BORROWER AND GUARANTORS HEREBY ACKNOWLEDGES THAT AS OF THE DATE HEREOF IT HAS NO DEFENSE, COUNTERCLAIM, OFFSET, CROSS-COMPLAINT, CLAIM OR DEMAND OF ANY KIND OR NATURE WHATSOEVER THAT CAN BE ASSERTED TO REDUCE OR ELIMINATE ALL OR ANY PART OF ITS LIABILITY TO REPAY THE INDEBTEDNESS OR TO SEEK AFFIRMATIVE RELIEF OR DAMAGES OF ANY KIND OR NATURE FROM LENDER OR ANY OF ITS AFFILIATES, PARTICIPANTS OR ANY OF THEIR RESPECTIVE DIRECTORS OFFICERS, AGENTS, EMPLOYEES, OR ATTORNEYS.  EACH OF THE BORROWER AND GUARANTORS HEREBY VOLUNTARILY AND KNOWINGLY RELEASES AND FOREVER DISCHARGES LENDER, AND ITS AFFILIATES AND PARTICIPANTS, AND EACH OF THEIR RESPECTIVE PREDECESSORS, AGENTS, OFFICERS, DIRECTORS, EMPLOYEES, SUCCESSORS AND ASSIGNS, FROM ALL POSSIBLE CLAIMS, DEMANDS, ACTIONS, CAUSES OF ACTION, DAMAGES, COSTS, EXPENSES, AND LIABILITIES WHATSOEVER, KNOWN OR UNKNOWN, ANTICIPATED OR UNANTICIPATED, SUSPECTED OR UNSUSPECTED, FIXED, CONTINGENT, OR CONDITIONAL, AT LAW OR IN EQUITY, ORIGINATING IN WHOLE OR IN PART ON OR BEFORE THE DATE THIS SECOND AMENDMENT IS EXECUTED, WHICH SUCH PERSON MAY NOW OR HEREAFTER HAVE AGAINST LENDER, ITS PREDECESSORS, AGENTS, OFFICERS, DIRECTORS, EMPLOYEES, SUCCESSORS AND ASSIGNS, IF ANY, AND IRRESPECTIVE OF WHETHER ANY SUCH CLAIMS ARISE OUT OF CONTRACT, TORT, VIOLATION OF LAW OR REGULATIONS, OR OTHERWISE, AND ARISING FROM THE OBLIGATIONS, THE EXERCISE OF ANY RIGHTS AND REMEDIES UNDER THE CREDIT AGREEMENT, THE OTHER LOAN DOCUMENTS, AND NEGOTIATION FOR AND EXECUTION OF THIS SECOND AMENDMENT.  EACH OF THE BORROWER AND GUARANTORS HEREBY COVENANTS AND AGREES NEVER TO INSTITUTE ANY ACTION OR SUIT AT LAW OR IN EQUITY, NOR INSTITUTE, PROSECUTE, OR IN ANY WAY AID IN THE INSTITUTION OR PROSECUTION OF ANY CLAIM, ACTION OR CAUSE OF ACTION, RIGHTS TO RECOVER DEBTS OR DEMANDS OF ANY NATURE AGAINST LENDER, ANY OF ITS AFFILIATES, AND PARTICIPANTS, AND THEIR RESPECTIVE SUCCESSORS, AGENTS, ATTORNEYS, OFFICERS, DIRECTORS, EMPLOYEES, AND PERSONAL AND LEGAL REPRESENTATIVES ARISING OUT OF OR RELATED TO AGENT’S OR LENDER’S ACTIONS, OMISSIONS, STATEMENTS, REQUESTS OR DEMANDS MADE IN CONNECTION WITH ADMINISTERING, ENFORCING, MONITORING, COLLECTION OR ATTEMPTING TO COLLECT THE OBLIGATIONS PRIOR TO THE SECOND AMENDMENT EFFECTIVE DATE.

 

[Remainder of page intentionally blank; signature pages follow.]

 

  

  

  

 

IN WITNESS WHEREOF, Borrower, Guarantors, and Lender have caused this Second Amendment to be executed and delivered as of the date first written.

 

BORROWER AND GUARANTORS:

Southern Frac, LLC

 

 

By:                 /s/ Cindy McSpadden

 

Name:            Cindy McSpadden

 

Title:              Chief Financial Officer

 

GFN Manufacturing Corporation

 

 

By:                 /s/ Charles E. Barrantes

 

Name:            Charles E. Barrantes

 

Title:              Director

 

General Finance Corporation

 

 

By:                 /s/ Charles E. Barrantes

 

Name:            Charles E. Barrantes

 

Title:              Executive Vice President and Chief Financial Officer

 

LENDER:

Wells Fargo Bank, National Association

 

 

By:                  /s/ Ron Zeiber

 

Name:             Ron Zeiber

 

Title:               Authorized Signatory

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