Document:

exhibit_10-1.htm

Exhibit 10.1

 

AMENDMENT NO. 1

TO CREDIT AGREEMENT

 

This Amendment No. 1 to Credit Agreement is dated as of May 3, 2013 (the “Agreement”), and is among the Lenders identified on the signature pages hereof as Lenders (which Lenders constitute the Required Lenders), WELLS FARGO BANK, NATIONAL ASSOCIATION (“WFB ”), as administrative agent for the Lenders (WFCF, in that capacity, “ Agent ”) and Co-Lead Arranger, HSBC BANK USA, N.A., (“ HSBC ”) as Syndication Agent and Co-Lead Arranger, and PAC-VAN, INC. (“ Borrower ”).

 

The Lenders, Agent, and Borrower are party to a Credit Agreement dated as of September 7, 2012 (as amended, restated, supplemented, or otherwise modified before the date of this Agreement, the “ Credit Agreement ”).

 

The parties also desire to modify the Credit Agreement in certain respects.

 

The parties therefore agree as follows:

 

1. Definitions. Defined terms used but not defined in this Agreement are as defined in the Credit Agreement.

 

2. Amendments to Credit Agreement. Subject to the satisfaction of each of the conditions to effectiveness set forth in Section 4 of this Agreement, the parties hereto agree as follows:

 

(a) The opening paragraph appearing at the top of page 1 of the Credit Agreement immediately prior to Section 1thereof is hereby amended and restated in its entirety to read as follows:

 

THIS CREDIT AGREEMENT (this “Agreement”), is entered into as of September 7, 2012, by and among the lenders identified on the signature pages hereof (each of such lenders, together with its successors and permitted assigns, is referred to hereinafter as a “ Lender ”, as that term is hereinafter further defined), WELLS FARGO BANK, NATIONAL ASSOCIATION, a national banking association, as administrative agent for each member of the Lender Group and the Bank Product Providers (in such capacity, together with its successors and assigns in such capacity, “ Agent ”), WELLS FARGO BANK, NATIONAL ASSOCIATION, a national banking association, as a co-lead arranger (any institution serving in such capacity, together with its successors and assigns in such capacity, a “ Co-Lead Arranger ”), WELLS FARGO BANK, NATIONAL ASSOCIATION, a national banking association, as book runner (in such capacity, together with its successors and assigns in such capacity, the “ Book Runner ”), HSBC BANK USA, N.A., a national banking association, as syndication agent (“ Syndication Agent ”) and as a Co-Lead Arranger, PAC-VAN, INC., an Indiana corporation (“ Pac-Van ”), and the Subsidiaries of Pac-Van identified on the signature pages hereof (such Subsidiaries, together with Pac-Van, are referred to hereinafter each individually as a “ Borrower ”, and individually and collectively, jointly and severally, as the “ Borrowers ”).

 

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(b) Section 6.7 of the Credit Agreement is hereby amended to (i) remove the word “and” which appears at the end of Section 6.7(f), (ii) replace the period (“.”) at the end of Section 6.7(g) with “; and” and (iii) add the following new Section 6.7(h) immediately after the end of Section 6.7(g):

 

“(h) Pac-Van may declare and pay dividends to GFN on account of Equity Interests issued to GFN by Pac-Van that do not constitute “Series A Cumulative Preferred Stock” (as defined in Pac-Van’s Governing Documents as in effect on the date of this Agreement) in an aggregate amount not to exceed, in any fiscal year of Pac-Van, the lesser of (i) $4,000,000, (ii) the Series C Preferred Dividend Percentage of the stated liquidation preference of Series C Preferred Stock of GFC which is issued and outstanding and (iii) the actual amount of annual dividends required to be paid in respect of the Series C Preferred Stock of GFC which is issued and outstanding, so long as before and immediately after giving effect to the payment of any such dividend, (1) no Default or Event of Default shall have occurred and be continuing or would result therefrom, (2) Pac-Van is Solvent, (3) Excess Availability is greater than or equal to $4,000,000, (4) the Fixed Charge Coverage Ratio, measured on a trailing-twelve-months’ basis as of the end of the most recently completed month for which financial statements have been provided to Agent pursuant to Section 5.1 , both actual and giving  pro forma  effect to the payment of that dividend, will be greater than 1.25 to 1.00 and (5) such dividends are paid no earlier than ten (10) Business Days prior to the date GFC is required to fund dividends in a like amount in respect of the Series C Preferred Stock of GFC.”

 

(c) Section 8 of the Credit Agreement is hereby amended to (i) remove the word “or” which appears at the end of Section 8.10, (ii) replace the period (“.”) at the end of Section 8.11 with a semicolon (“;”), (iii) replace the period (“.”) at the end of Section 8.12 with “; and” and (iv) add the following new Section 8.13.immediatly after the end of Section 8.12:

 

“8.13 Required Series C Preferred Equity Contributions. The failure of Pac-Van to receive a cash equity contribution (within five (5) Business Days following the date of any issuance by GFC of Series C Preferred Stock of GFC) equal to an amount not less than 80% of the stated liquidation preference of any shares of Series C Preferred Stock of GFC issued by GFC.”

 

(d) The Definition of “Lead Arranger” set forth in Schedule 1.1 to the Credit Agreement is hereby amended to read in its entirety as follows:

 

““Co-Lead Arranger(s)” has the meaning set forth in the preamble to the Agreement.”

 

(e) The Definition of “Fixed Charge Coverage Ratio” set forth in Schedule 1.1 to the Credit Agreement is hereby amended to read in its entirety as follows:

 

““Fixed Charge Coverage Ratio” means, with respect to any fiscal period and with respect to Borrowers determined on a consolidated basis in accordance with GAAP, the ratio of (a) the result of (i) EBITDA for such period,  minus  (ii) Net Unfinanced Capital Expenditures for such period,  minus  (iii) all Affiliate Distributions under Section 6.7(e)  and/or Section 6.7(h)  paid during such period, to (b) Fixed Charges for such period.”

 

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(f) Schedule 1.1 to the Credit Agreement is hereby amended by adding the following terms in proper alphabetical order:

 

““Series C Preferred Dividend Percentage” means, the “Stated Rate” as such term is defined in the Certificate of Designations, Preferences and Rights of the Series C Cumulative Redeemable Perpetual Preferred Stock of GFC as in effect on the date of the initial issuance by GFC of any Series C Preferred Stock of GFC.

 

“Series C Preferred Stock of GFC” means Series C Cumulative Redeemable Perpetual Preferred Stock issued by GFC, which shall not, in any event, exceed 400,000 shares of such Equity Interest.”

 

(g) Section 15.18 of the Credit Agreement is hereby amended and restated in its entirety to read as follows:

 

“15.18 Co-Lead Arrangers, Book Runner, and Syndication Agent. Each of Co-Lead Arrangers, Book Runner, and Syndication Agent, in such capacities, shall not have any right, power, obligation, liability, responsibility, or duty under this Agreement other than those applicable to it in its capacity as a Lender, as Agent, as Swing Lender, or as Issuing Bank. Without limiting the foregoing, each of Co-Lead Arrangers, Book Runner, and Syndication Agent, in such capacities, shall not have or be deemed to have any fiduciary relationship with any Lender or any Loan Party. Each Lender, Agent, Swing Lender, Issuing Bank, and each Loan Party acknowledges that it has not relied, and will not rely, on any of Co-Lead Arrangers, Book Runner, and Syndication Agent in deciding to enter into this Agreement or in taking or not taking action hereunder. Each of Co-Lead Arrangers, Book Runner, and Syndication Agent, in such capacities, shall be entitled to resign at any time by giving notice to Agent and Borrowers.”

 

3. Representations. To induce Agent and the Required Lenders to enter into this Agreement, Borrower hereby represents to Agent and the Required Lenders as follows:

 

(a) that Borrower is duly authorized to execute and deliver this Agreement and is and will continue to be duly authorized to borrow monies under the Credit Agreement, as amended by this Agreement, and to perform its obligations under the Credit Agreement, as amended by this Agreement;

 

(b) that the execution and delivery of this Agreement and the performance by Borrower of its obligations under the Credit Agreement, as amended by this Agreement, do not and will not conflict with any provision of law or of the articles of incorporation or bylaws of Borrower or of any agreement binding upon Borrower;

 

(c) that the Credit Agreement, as amended by this Agreement, is a legal, valid, and binding obligation of Borrower, enforceable against Borrower in accordance with its terms, except as enforceability is limited by bankruptcy, insolvency, or other similar laws of general application affecting the enforcement of creditors’ rights or by general principles of equity limiting the availability of equitable remedies;

 

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(d) that the representations and warranties set forth in Section 4 of the Credit Agreement, as amended by this Agreement, are true and correct in all material respects (but if any representation or warranty is by its terms qualified by concepts of materiality, that representation or warranty is true and correct in all respects), in each case with the same effect as if such representations and warranties had been made on the date of this Agreement, with the exception that all references to the financial statements mean the financial statements most recently delivered to Agent except for such changes as are specifically permitted under the Credit Agreement and except to the extent that any such representation or warranty expressly relates to an earlier date;

 

(e) that Borrower has complied with and is in compliance with all of the covenants set forth in the Credit Agreement, as amended by this Agreement, including those set forth in Section 5, Section 6, and Section 7 of the Credit Agreement; and

 

(f) that as of the date of this Agreement, no Default or Event of Default has occurred and is continuing.

 

4. Conditions. The effectiveness of this Agreement is subject to satisfaction of the following conditions:

 

(a) that Agent has received this Agreement executed by Agent, the Required Lenders and Borrower;

 

(b) that Agent has received copies (executed or certified, as appropriate) of all other legal documents or minutes of proceedings taken in connection with the execution and delivery of this Agreement to the extent Agent or its counsel reasonably requests;

 

(c) that the closing of the initial issuance and sale of shares of the Series C Preferred Stock of GFC has occurred;

 

(d) that Borrower has paid all fees and expenses required to be paid by Borrower on the date of this Agreement under this Agreement, the Credit Agreement, or the other Loan Documents; and

 

(e) that all legal matters incident to the execution and delivery of this Agreement are satisfactory to Agent and its counsel.

 

5. Release. Borrower hereby waives and releases any and all current existing claims, counterclaims, defenses, or set-offs of every kind and nature which it has or might have against Agent or any Lender arising out of, pursuant to, or pertaining in any way to the Credit Agreement, any and all documents and instruments delivered in connection with or relating to the foregoing, or this Agreement. Borrower hereby further covenants and agrees not to sue Agent or any Lender or assert any claims, defenses, demands, actions, or liabilities against Agent or any Lender which occurred prior to or as of the date of this Agreement arising out of, pursuant to, or pertaining in any way to the Credit Agreement, any and all documents and instruments delivered in connection with or relating to the foregoing, or this Agreement.

 

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6. Miscellaneous.

 

(a) This Agreement is governed by, and is to be construed in accordance with, the laws of the State of Illinois. Each provision of this Agreement is severable from every other provision of this Agreement for the purpose of determining the legal enforceability of any specific provision.

 

(b) This Agreement binds Agent, the Lenders and Borrower and their respective successors and assigns, and will inure to the benefit of Agent, the Lenders and Borrower and the successors and assigns of Agent and each Lender.

 

(c) Except as specifically modified or amended by the terms of this Agreement, all other terms and provisions of the Credit Agreement and the other Loan Documents are incorporated by reference in this Agreement and in all respects continue in full force and effect. Borrower, by execution of this Agreement, hereby reaffirms, assumes, and binds itself to all of the obligations, duties, rights, covenants, terms, and conditions that are contained in the Credit Agreement and the other Loan Documents.

 

(d) Each reference in the Credit Agreement to “this Agreement,” “hereunder,” “hereof,” or words of like import, and each reference to the Credit Agreement in any and all instruments or documents delivered in connection therewith, will be deemed to refer to the Credit Agreement, as amended by this Agreement.

 

(e) This Agreement is a Loan Document. Borrower acknowledges that Agent’s reasonable costs and out-of-pocket expenses (including reasonable attorneys’ fees) incurred in drafting this Agreement and in amending the Loan Documents as provided in this Agreement constitute Lender Group Expenses.

 

(f) The parties may sign this Agreement in several counterparts, each of which will be deemed to be an original but all of which together will constitute one instrument.

 

[Signature pages to follow]

 

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The parties are signing this Amendment No. 1 to Credit Agreement as of the date stated in the introductory clause.

 

	  	  	  	  	  	  
	
PAC-VAN, INC.,

as a Borrower and as the initial Administrative Borrower

	  	  	  
	  	  	  	  	  
	
By:

	
 

/s/ Christopher A. Wilson

	  	  	  
	
Name:

	
 

Christopher A. Wilson

	  	  	  
	
Title:

	
 

Secretary

	  	  	  

 

Signature page to Amendment No. 1 to Credit Agreement

  

  

  

 

	  	  	  	  	  	  
	
WELLS FARGO BANK, NATIONAL ASSOCIATION,

as Agent, Co-Lead Arranger and as a Lender

	  	  	  
	  	  	  	  	  
	
By:

	
 

/s/ Brian Hynds

	  	  	  
	
Name:

	
 

Brian Hynds

	  	  	  
	  	
 

Its Authorized Signatory

	  	  	  

 

Signature page to Amendment No. 1 to Credit Agreement

  

  

  

 

	  	  	  	  	  	  
	
HSBC BANK USA, N.A.,

as Syndication Agent, Co-Lead Arranger and as a Lender

	  	  	  
	  	  	  	  	  
	
By:

	
 

/s/ William Ozaki

	  	  	  
	
Name:

	
 

William Ozaki

	  	  	  
	  	
 

Its Authorized Signatory

	  	  	  

Signature page to Amendment No. 1 to Credit Agreementsrbl_ex102.htm

EXHIBIT 10.2

 

THE SECURITIES OFFERED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND ARE PROPOSED TO BE ISSUED IN RELIANCE UPON AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT PROVIDED BY REGULATION S PROMULGATED UNDER THE SECURITIES ACT. UPON ANY SALE, SUCH SECURITIES MAY NOT BE REOFFERED FOR SALE OR RESOLD OR OTHERWISE TRANSFERRED IN THE UNITED STATES OR TO U.S. PERSONS EXCEPT IN ACCORDANCE WITH THE PROVISIONS OF REGULATION S, PURSUANT TO AN EFFECTIVE REGISTRATION UNDER THE SECURITIES ACT, OR PURSUANT TO AN AVAILABLE EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT. HEDGING TRANSACTIONS INVOLVING THE SECURITIES MAY NOT BE CONDUCTED UNLESS IN COMPLIANCE WITH THE SECURITIES ACT.

 

REGULATION SUBSCRIPTION AGREEMENT

 

NON-U.S. PERSONS ONLY

 

THIS AGREEMENT is made effective as of the 7 day of march, 2013.

 

BETWEEN:

THE SUBSCRIBER LISTED ON THE EXECUTION PAGE TO THIS AGREEMENT

 

(hereinafter called the “Subscriber”)

OF THE FIRST PART

AND:

GREAT AMERICAN ENERGY CORP a Nevada corporation, having a corporate office at 999 18th Street Suite 3000 Denver, Colorado 80202..

(hereinafter called the “Corporation”)

 

OF THE SECOND PART

 

THE PARTIES HEREBY AGREE AS FOLLOWS:

 

1. DEFINITIONS

 

The following terms will have the following meanings for all purposes of this Agreement.

 

	
(a)

	
“Agreement” means this Agreement, and all schedules and amendments to this Agreement.

 

	
(b)

	
“Common Stock” means the shares of Common Stock of the Corporation, $0.90 par value per share.

 

	
(c)

	
“Corporation” means Great American Energy Corp, a Nevada corporation.

 

	
(d)

	
“Exchange Act” means the United States Securities Exchange Act of 1934, as amended.

 

	
(e)

	
“Offering” means the offering of the Units by the Corporation as set forth herein.

 

  

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(f)

	
“Purchase Price” means the purchase price payable by the Subscriber to the Corporation in consideration for the purchase and sale of the Units in accordance with Section 2 of this Agreement.

 

	
(g)

	
“SEC” means the United States Securities and Exchange Commission.

 

	
(h)

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

 

	
(i)

	
“Shares” means those shares of Common Stock to be purchased by the Subscriber.

 

	
(j)

	
“Subscriber” means the Subscriber executing the signature page to this Agreement.

 

	
(k)

	
“Subscription” means the purchase and sale of the Units in accordance with Section 2.1 of this Agreement.

 

	
(l)

	
“Unit” means a unit consisting of one (1) Share and one (1) Warrant.

 

	
(m)

	
“Warrant” means one share purchase warrant entitling the holder thereof to purchase one (1) share of Common Stock of the Corporation at a price of $1.30 per share during the period of the date that is three (3) years from the date of issuance.

 

	
(n)

	
“Warrant Exercise Price” means $1.30 US per share.

 

	
(o)

	
“Warrant Shares” means the Common Stock issuable upon exercise of the Warrants.

 

All dollar amounts referred to in this agreement are in United States funds, unless expressly stated otherwise.

 

2. PURCHASE AND SALE OF UNITS

 

Subject to the terms and conditions of this Agreement, the Subscriber hereby subscribes for and agrees to purchase from the Corporation such number of Units as is set forth upon the signature page hereof at a price equal to $___ US per Unit. Upon execution, the subscription by the Subscriber will be irrevocable.

 

The Purchase Price is payable by the Subscriber upon execution of this Agreement and the Purchase Price shall be paid by wire transfer into the Corporation's bank account, the details of which are set out below:

 

Bank of America

333 S. Hope Ste 100

Los Angeles CA 90071

Checking Account 

Swift Code: BOFAUS3N

 

Upon execution by the Corporation, the Corporation agrees to sell such Units to the Subscriber for the Purchase Price subject to the Corporation's right to sell to the Subscriber such lesser number of Units as it may, in its sole discretion, deem necessary or desirable.

 

Any acceptance by the Corporation of the Subscription is conditional upon compliance with all securities laws and other applicable laws of the jurisdiction in which the Subscriber is resident, and the Subscriber hereby confirms it has complied with all such laws. Each Subscriber will deliver to the Corporation all other documentation, agreements, representations and requisite government forms required by the lawyers for the Corporation as required to comply with all securities laws and other applicable laws of the jurisdiction of the Subscriber.

 

  

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Pending acceptance of this Subscription by the Corporation, all funds paid by the Subscriber shall be deposited by the Corporation and immediately available to the Corporation for its corporate purposes. In the event the Subscription is not accepted, the Subscription funds will constitute a non-interest bearing demand loan of the Subscriber to the Corporation.

 

The Subscriber hereby authorizes and directs the Corporation to deliver the securities to be issued to such Subscriber pursuant to this Agreement to the Subscriber's address indicated on the signature page of this Agreement.

 

The Subscriber acknowledges and agrees that the Subscription for the Units and the Corporation's acceptance of the Subscription is not subject to any minimum subscription for the Offering.

 

3.REGULATION S AGREEMENTS OF THE SUBSCRIBER

 

The Subscriber represents and warrants to the Corporation that the Subscriber is not a “U.S. Person” as defined by Regulation S of the Securities Act and is not acquiring the Units for the account or benefit of a U.S. Person.

 

A 'U.S. Person' is defined by Regulation S of the Securities Act to be any person who is:

 

	
(a) 

	
any natural person resident in the United States;

 

	
(b) 

	
any partnership or corporation organized or incorporated under the laws of the United States;

 

	
(c) 

	
any estate of which any executor or administrator is a U.S. person;

 

	
(d) 

	
any trust of which any trustee is a U.S. person;

 

	
(e) 

	
any agency or branch of a foreign entity located in the United States;

 

	
(f) 

	
any non-discretionary account or similar account (other than an estate or trust) held by a dealer or other fiduciary organized, incorporated, or (if an individual) resident in the United States; and

 

	
(g)

	any partnership or corporation if

 

(i) organized or incorporated under the laws of any foreign jurisdiction; and

 

(ii) formed by a U.S. person principally for the purpose of investing in securities not registered under the Securities Act, unless it is organized or incorporated, and owned, by accredited Subscribers (as defined in Section 230.501(a) of the Securities Act) who are not natural persons, estates or trusts.

 

The Subscriber acknowledges that the Subscriber was not in the United States at the time the offer to purchase the Units was received.

 

The Subscriber acknowledges that the Shares, the Warrants and the Warrant Shares are “restricted securities” within the meaning of the Securities Act and will be issued to the Subscriber in accordance with Regulation S of the Securities Act.

 

  

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The Subscriber agrees not to engage in hedging transactions with regard to the Shares, the Warrants and the Warrant Shares unless in compliance with the Securities Act.

 

The Subscriber and the Corporation agree that the Corporation will refuse to register any transfer of the Shares, the Warrants and the Warrant Shares not made in accordance with the provisions of Regulation S of the Securities Act, pursuant to registration under the Securities Act, pursuant to an available exemption from registration, or pursuant to this Agreement.

 

The Subscriber agrees to resell the Shares, the Warrants and the Warrant Shares only in accordance with the provisions of Regulation S of the Securities Act, pursuant to registration under the Securities Act, or pursuant to an available exemption from registration pursuant to the Securities Act.

 

The Subscriber acknowledges and agrees that all certificates representing the Shares and the Warrant Shares will be endorsed with the following legend in accordance with Regulation S of the Securities Act, together with any other legends reasonably required by counsel for the Corporation:

 

“THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND HAVE BEEN ISSUED IN RELIANCE UPON AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT PROVIDED BY REGULATION S PROMULGATED UNDER THE SECURITIES ACT. SUCH SECURITIES MAY NOT BE REOFFERED FOR SALE OR RESOLD OR OTHERWISE TRANSFERRED EXCEPT IN ACCORDANCE WITH THE PROVISIONS OF REGULATION S, PURSUANT TO AN EFFECTIVE REGISTRATION UNDER THE SECURITIES ACT, OR PURSUANT TO AN AVAILABLE EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT. HEDGING TRANSACTIONS INVOLVING THE SECURITIES MAY NOT BE CONDUCTED UNLESS IN COMPLIANCE WITH THE SECURITIES ACT.”

 

The Subscriber acknowledges and agrees that all certificates representing the Warrants will be endorsed with the following legend in accordance with Regulation S of the Securities Act:

 

THE SECURITIES REPRESENTED BY THIS CERTIFICATE AND THE SECURITIES TO BE ISSUED UPON ITS EXERCISE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND HAVE BEEN ISSUED IN RELIANCE UPON AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT PROVIDED BY REGULATION S PROMULGATED UNDER THE SECURITIES ACT. SUCH SECURITIES MAY NOT BE REOFFERED FOR SALE OR RESOLD OR OTHERWISE TRANSFERRED EXCEPT IN ACCORDANCE WITH THE PROVISIONS OF REGULATION S, PURSUANT TO AN EFFECTIVE REGISTRATION UNDER THE SECURITIES ACT, OR PURSUANT TO AN AVAILABLE EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT. THIS WARRANT MAY NOT BE EXERCISED IN THE UNITED STATES OR BY OR ON BEHALF OF A PERSON IN THE UNITED STATES OR A U.S. PERSON UNLESS THE WARRANT AND THE UNDERLYING SHARES AND WARRANTS HAVE BEEN REGISTERED UNDER THE SECURITIES ACT AND THE APPLICABLE SECURITIES LEGISLATION OF ANY SUCH STATE OR AN EXEMPTION FROM SUCH REGISTRATION REQUIREMENTS IS AVAILABLE. “UNITED STATES” AND “U.S. PERSON” ARE AS DEFINED BY REGULATION S UNDER THE SECURITIES ACT. HEDGING TRANSACTIONS INVOLVING THE SECURITIES MAY NOT BE CONDUCTED UNLESS IN COMPLIANCE WITH THE SECURITIES ACT.

 

  

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4. REPRESENTATIONS AND WARRANTIES OF THE SUBSCRIBER

 

The Subscriber represents and warrants to the Corporation as follows, and acknowledges that the Corporation is relying upon such covenants, representations and warranties in connection with the sale of the Units to such Subscriber:

 

The Subscriber is an investor in securities of companies in the development stage and acknowledges that he/she/it is able to fend for himself/herself/itself, can bear the economic risk of his/her/its investment, and has such knowledge and experience in financial or business matters such that he/she/it is capable of evaluating the merits and risks of the investment in the Units. The Subscriber can bear the economic risk of this investment, and, if the Subscriber is not an individual, was not organized for the purpose of acquiring the Units.

 

The Subscriber has had full opportunity to review the Corporation's filings with the SEC pursuant to the Securities Act and the Exchange Act, including the Corporation's Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K and additional information regarding the business and financial condition of the Corporation. The Subscriber believes he/she/it has received all the information he/she/it considers necessary or appropriate for deciding whether to purchase the Units. The Subscriber further represents that he/she/it has had an opportunity to ask questions and receive answers from the Corporation regarding the terms and conditions of the Offering and the business, properties, prospects and financial condition of the Corporation. The Subscriber has had full opportunity to discuss this information with the Subscriber's legal and financial advisers prior to execution of this Agreement.

 

The Subscriber acknowledges that the offering of the Units by the Corporation has not been reviewed by the SEC and that the Units are being issued by the Corporation pursuant to an exemption from registration under the Securities Act.

 

The Subscriber understands that the Units he/she/it is purchasing are characterized as “restricted securities” under the Securities Act inasmuch as they are being acquired from the Corporation in a transaction not involving a public offering and that under such laws and applicable regulations such securities may be resold without registration under the Securities Act only in certain limited circumstances. In this connection, the Subscriber represents that he/she/it is familiar with Rule 144 under the Securities Act, as presently in effect, and understands the resale limitations imposed thereby and by the Securities Act.

 

The Units will be acquired by the Subscriber for investment for the Subscriber's own account, not as a nominee or agent, and not with a view to the resale or distribution of any part thereof, and that the Subscriber has no present intention of selling, granting any participation in, or otherwise distributing the same. The Subscriber does not have any contract, undertaking, agreement or arrangement with any person to sell, transfer or grant participations to such person or to any third person, with respect to any of the Units.

 

An investment in the Corporation is highly speculative and only Subscribers who can afford the loss of their entire investment should consider investing in the Corporation and the Units. The Subscriber is financially able to bear the economic risks of an investment in the Corporation.

 

The Subscriber recognizes that the purchase of the Units involves a high degree of risk in that the Corporation is in the early stages of development of its business and may require substantial funds in addition to the proceeds of this private placement.

 

  

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The Subscriber is not aware of any advertisement of the Units.

 

This Agreement has been duly authorized, validly executed and delivered by the Subscriber.

 

The Subscriber has satisfied himself/herself/itself as to the full observance of the laws of his/her/its jurisdiction in connection with any invitation to subscribe for the Units or any use of this Agreement, including: (a) the legal requirements within his/her/its jurisdiction for the purchase of the Units; (b) any foreign exchange restrictions applicable to such purchase; (c) any governmental or other consents that may need to be obtained; (d) the income tax and other tax consequences, if any, that may be relevant to an Investment in the Units; and (e) any restrictions on transfer applicable to any disposition of the Units imposed by the jurisdiction in which the Subscriber is resident.

 

The Subscriber is purchasing the Units as principal for his/her/its own account and not for the benefit of any other person.

 

5. MISCELLANEOUS

 

Any notice or other communication given hereunder shall be deemed sufficient if in writing and sent by registered or certified mail, return receipt requested, addressed to the Corporation, at its corporate office at 999 18th Street Suite 3000 Denver, Colorado 80202, Attention: Felipe Pimienta - President, and to the Subscriber at his/her/its address indicated on the last page of this Agreement. Notices shall be deemed to have been given on the date of mailing, except notices of change of address, which shall be deemed to have been given when received.

 

The parties agree to execute and deliver all such further documents, agreements and instruments and take such other and further action as may be necessary or appropriate to carry out the purposes and intent of this Agreement.

 

This Agreement will be governed by and construed in accordance with the laws of the State of Nevada applicable to contracts made and to be performed therein. The parties hereby submit to personal jurisdiction in the Courts of the State of Nevada for the enforcement of this Agreement and waive any and all rights under the laws of any state to object to jurisdiction within the State of Nevada for the purposes of litigation to enforce this Agreement.

 

The Subscriber agrees that the representations, warranties and covenants of the Subscriber herein will be true and correct both as of the execution of this Agreement and as of the date of this Agreement will survive the completion of the issuance of the Units. The representations, warranties and covenants of the Subscriber herein are made with the intent that they be relied upon by the Corporation in determining the eligibility of a purchaser of Units and the Subscriber agrees to indemnify the Corporation and its respective trustees, affiliates, shareholders, directors, officers, partners, employees, advisors and agents against all losses, claims, costs, expenses and damages or liabilities which any of them may suffer or incur which are caused or arise from a breach thereof. The Subscriber undertakes to immediately notify the Corporation at 999 18th Street Suite 3000 Denver, Colorado 80202 of any change in any statement or other information relating to the Subscriber set forth herein.

 

Time shall be of the essence hereof.

 

This Agreement represents the entire agreement of the parties hereto relating to the subject matter hereof and there are no representations, covenants or other agreements relating to the subject matter hereof except as stated or referred to herein.

 

  

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The terms and provisions of this Agreement shall be binding upon and inure to the benefit of the Subscriber and the Corporation and their respective heirs, executors, administrators, successors and assigns; provided that, except for the assignment by a Subscriber who is acting as nominee or agent to the beneficial owner and as otherwise herein provided, this Agreement shall not be assignable by any party without prior written consent of the other parties.

 

The Subscriber, on his/her/its own behalf and, if applicable, on behalf of others for whom he/she/it is contracting hereunder, agrees that this Subscription is made for valuable consideration and may not be withdrawn, cancelled, terminated or revoked by the Subscriber, on his/her/its own behalf and, if applicable, on behalf of others for whom he/she/it is contracting hereunder.

 

Neither this Agreement nor any provision hereof shall be modified, changed, discharged or terminated except by an instrument in writing signed by the party against whom any waiver, change, discharge or termination is sought.

 

The invalidity, illegality or unenforceability of any provision of this Agreement shall not affect the validity, legality or enforceability of any other provision hereof.

 

The headings used in this Agreement have been inserted for convenience of reference only and shall not affect the meaning or interpretation of this Agreement or any provision hereof.

 

The covenants, representations and warranties contained herein shall survive the closing of the transactions contemplated hereby.

 

This Agreement may be executed in one or more counterparts, all of which will be considered one and the same agreement and will become effective when one or more counterparts have been signed by each party and delivered to the other party, it being understood that all parties need not sign the same counterpart.

 

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7

  

 

IN WITNESS WHEREOF, this Agreement is executed as of the day and year first written above.

 

	NUMBER OF UNITS SUBSCRIBED FOR: 

CORPORATE SUBSCRIBER:

	263,158	 
	 	 	 
	
Signature of Authorized Signatory: 

	 	 
	 	 	 
	Name of Subscriber: 	
Pacific Oil & Gas Investments Ltd.

	 
	 	 	 
	Name and Title of Authorized Signatory:	 	 
	 	 	 
	Address of Subscriber:	
Level 3

267 St. Georges Terrace

Perth, WA 6000

Australia

	 
	 	 	 
	Telephone Number of Subscriber: 	+61 (0) 8 9261 7781	 
	 	 	 
	ACCEPTED BY:	 	 
	GREAT AMERICAN ENERGY CORP	 	 
	a Nevada corporation	 	 
	 	 	 
	Signature of Authorized Signatory: 	 	 
	 	 	 
	Name of Authorized Signatory: 	
FELIPE PIMIENTA

	 
	 	 	 
	Position of Authorized Signatory: 	CEO 	 
	 	 	 
	Date of Acceptance:	March 19, 2013 	 

 

 

8

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