Note 12 – Subsequent Events:
From the April 1, 2016 through May, 2016, The Company issued 694,103,672 of the Company’s
common stock for the conversion of convertible notes of the Company.
The Company previously entered into a Credit Agreement (the “Credit Agreement”) with TCA
Global Credit master Funds, LP, a Cayman Islands limited partnership (“TCA Global”), dated
December 10, 2014. The Credit Agreement covered the Company as well as its subsidiaries,
Patten Energy Enterprises, Inc., Atlantic-Pacific, LLP and A.P. Lubes, Inc. as joint and several
guarantors. Mr. Remo was obligated to perform specific corporate actions under a Validity
Certificate, executed as CEO/President of the Company
The amounts borrowed pursuant to the Credit Agreement are evidenced by a Revolving Note (the
“Revolving Note”) and the repayment of the Revolving Note is secured by a first position
security interest in substantially all of the Company’s assets in favor of TCA, as evidenced by a
Security Agreement by and between the Company and TCA (the “Company Security
Agreement”) and a first position security interest in substantially all of the Subsidiaries’ assets in
favor of TCA, as evidenced by a Security Agreement by and among the Subsidiaries and TCA
(the “Subsidiaries Security Agreement” and, together with the Company Security Agreement, the
“Security Agreements”). The Revolving Note is in the original principal amount of $800,000, is
due and payable, along with interest thereon, on June 10, 2015, and bears interest at the rate of
11% per annum, increasing to 18% upon the occurrence of an event of default, in addition to a
monthly collections fee payable to TCA under the Credit Agreement. The loan is currently in
default.
The Company has defaulted on the Credit Agreement. It has negotiated forbearance Agreements
with TCS Global. However, TCA Global has obtained a final Order of Default and Default Final
Judgment against the Company, its subsidiaries and Mr. Remo. Pursuant to said Order of Default
and Default Final Judgment, TCA is entitled to the total amount of $1,036,752.33, together with
$28,844.58, of pre-judgment interest.
