Exhibit 10.2
First Amendment
to
Securities Purchase Agreement
 
This First Amendment (this “Amendment”) to the Purchase Agreement (as defined
below), is entered into as of August __, 2011, by and among Harbinger Group
Inc., Delaware corporation (the “Company”), Quantum Partners LP (the
“Soros  Purchaser”), DDJ High Yield Fund, an entity organized under the laws of
the Province of Ontario, Canada, General Motors Hourly-Rate Employes Pension
Trust – 7N1H, a trust maintained by General Motors Corporation, a Delaware
corporation, General Motors Salaried Employes Pension Trust – 7N1I, a trust
maintained by General Motors Corporation, Stichting Pensioenfonds Hoogovens, a
Dutch pension plan regulated by the Dutch Central Bank, Caterpillar Inc. Master
Retirement Trust, a trust maintained by Caterpillar, Inc., a Delaware
corporation, J.C. Penney Corporation, Inc. Pension Plan Trust, a trust
maintained by J.C. Penney Corporation, Inc., a Delaware corporation, Stichting
Bewaarder Interpolis Pensioenen Global High Yield Pool, a Dutch tax transparent
pool of assets, Stichting Pensioenfonds voor Fysiotherapeuten, a Dutch pension
plan regulated by the Dutch Central Bank, Houston Municipal Employees Pension
System, a pension plan organized pursuant to Texas government code, UAW Retiree
Medical Benefits Trust, a trust consisting of three separate employees'
beneficiary associations, DDJ Distressed and Special Situations Fund, L.P., a
Delaware limited partnership, Russell Investment Company - Russell Global
Opportunistic Credit Fund, a Massachusetts business trust, DDJ Capital
Management Group Trust - High Yield Investment Fund, a trust maintained by The
Bank of New York Mellon, a New York State chartered bank, as trustee
(collectively, the “DDJ Purchasers”), JHL Capital Group Master Fund L.P. (the
“JHL Purchaser”), Luxor Capital Partners, LP, a Delaware limited partnership,
Luxor Wavefront, LP, a Delaware limited partnership, Luxor Capital Partners
Offshore Fund, LP, aCayman Islands limited partnership, OC 19 Master Fund, L.P.
- LCG, a Cayman Islands limited partnership, and GAM Equity Six Inc., a British
Virgin Islands company (collectively, the “Luxor Purchasers”).  Capitalized
terms used in this Amendment and not otherwise defined herein shall have the
meanings ascribed to them in the Purchase Agreement. 
 
WHEREAS, the parties hereto (other than the Luxor Purchasers) entered into that
certain Securities Purchase Agreement, dated as of August 1, 2011 (the “Purchase
Agreement”); and
 
WHEREAS, in order for the Luxor Purchasers to be joined as Purchasers under the
Purchase Agreement, the parties hereto wish to amend certain provisions of the
Purchase Agreement and agree that all other terms and conditions of the Purchase
Agreement otherwise remain unchanged except as expressly set forth herein.
 
NOW THEREFORE, the Purchase Agreement is amended as follows:
 
1.           The third recital in the Purchase Agreement is hereby amended and
restated in their entirety as follows:
 
WHEREAS, the Company has authorized the issuance and sale of 120,000 shares of
Series A-2 Participating Convertible Preferred Stock, par value $0.01 per share,
of the Company (the “Convertible Preferred Stock”), the rights,
 

 
 
 

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preferences and privileges of which are to be set forth in a Certificate of
Designation, in the form attached hereto as Exhibit A (the “Certificate of
Designation”), which shares of Convertible Preferred Stock shall be convertible
into authorized but unissued shares of Common Stock (as defined below);
 
2.           The following definitions set forth in Section 1 of the Purchase
Agreement are hereby amended and restated in their entirety as follows:
 
“Purchasers” means, collectively, the Soros Purchaser, the DDJ Purchasers, the
JHL Purchaser and the Luxor Purchasers.

3.           Section 1 of the Purchase Agreement is hereby amended to add the
following definition:
 
“Luxor Purchasers” shall mean, collectively, Luxor Capital Partners, LP, a
Delaware limited partnership, Luxor Wavefront, LP, a Delaware limited
partnership, Luxor Capital Partners Offshore Fund, LP, aCayman Islands limited
partnership, OC 19 Master Fund, L.P. - LCG, a Cayman Islands limited
partnership, and GAM Equity Six Inc., a British Virgin Islands company.
 
4.          New subsection (e) is hereby added to Section 12.3 of the Purchase
Agreement as follows:
 
(e)           if to the Luxor Purchasers, to:
 
Luxor Capital Group, LP
1114 Avenue of the Americas, 29th Floor
New York, NY 10036
Attn: Operations Group
Fax: (212) 763-8001

 
5.           Annex A of the Purchase Agreement is hereby amended and restated in
its entirety as set forth on Exhibit A hereto.
 
6.           Each of the Luxor Purchasers agrees that upon execution of this
Amendment, such Luxor Purchaser shall become a party to the Purchase Agreement
and shall be fully bound by, and subject to, all of the repsresentations,
warranties, covenants, terms and conditions of the Purchase Agreement as though
an original party thereto and shall be deemed a Purchaser for all purposes
thereof and entitled to all the rights incidental thereto.
 
7.           Except as expressly amended herein, all provisions of the Purchase
Agreement shall remain in full force and effect.
 

 
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8.           This Amendment shall be governed by and construed in accordance
with the laws of the State of New York, regardless of the laws that might
otherwise govern under applicable principles of conflicts of law thereof.
 
9.           This Amendment may be signed in any number of counterparts each of
which shall be an original and all of which shall together constitute one and
the same agreement. Any counterpart or other signature hereupon delivered by
facsimile shall be deemed for all purposes as constituting good and valid
execution and delivery of this Amendment by such party.
 
[Signature Pages Follow]

 
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IN WITNESS WHEREOF, the parties hereto have executed this Amendment as of the
day and year first above written.
 
 

 
COMPANY:
          HARBINGER GROUP INC.          
 
By:
        Name:       Title:          

 
 
 
[Signature Page to First Amendment to the Purchase Agreement]

 
 
 
 

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QUANTUM PARTNERS LP
         
 
By:
        Name:       Title:          

 
 
 
[Signature Page to First Amendment to the Purchase Agreement]
 

 
 

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JHL CAPITAL GROUP MASTER FUND L.P.
         
 
By:
        Name:       Title:          

 
 
 
[Signature Page to First Amendment to the Purchase Agreement]

 
 

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  Caterpillar Inc. Master Retirement Trust     By: DDJ Capital Management, LLC,
on behalf of Caterpillar Inc. Master Retirement Trust, in its capacity as
investment manager          
 
By:
        Name:       Title:          

 

 
DDJ Capital Management Group Trust – High Yield Investment Fund
    By: DDJ Capital Management, LLC, in its capacity as Investment Manager      
   
 
By:
        Name: David J. Breazzano       Title:   President          

 

 
DDJ High Yield Fund
    By: DDJ Capital Management, LLC, its attorney-in-fact          
 
By:
        Name:       Title:          

 
[Signature Page to First Amendment to the Purchase Agreement]

 
 

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  General Motors Hourly-Rate Employes Pension Trust – 7N1H     By: State Street
Bank and Trust Company, solely in its capacity as Trustee for General Motors
Hourly-Rate Employes Pension Trust (Account 7N1H), and not in its individual
capacity, as directed by DDJ Capital Management, LLC, as Investment Manager    
     
 
By:
        Name:       Title:          

 

 
General Motors Salaried Employes Pension Trust – 7N1I
    By: State Street Bank and Trust Company, solely in its capacity as Trustee
for General Motors Salaried Employes Pension Trust (Account 7N1I), and not in
its individual capacity, as directed by DDJ Capital Management, LLC, as
Investment Manager          
 
By:
        Name:       Title:          

 

 
Houston Municipal Employees Pension System
    By: DDJ Capital Management, LLC, in its capacity as Manager          
 
By:
        Name:       Title:          

 
[Signature Page to First Amendment to the Purchase Agreement]

 
 

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  J.C. Penney Corporation, Inc. Pension Plan Trust     By: DDJ Capital
Management, LLC, on behalf of J.C. Penney Corporation, Inc. Pension Plan Trust,
in its capacity as investment manager          
 
By:
        Name:       Title:          

 

 
Russell Investment Company - Russell Global Opportunistic Credit Fund
    By: DDJ Capital Management, LLC, in its capacity as Money Manager          
 
By:
        Name:       Title:          

 

 
Stichting Bewaarder Interpolis Pensioenen Global High Yield Pool
    By: Syntrus Achmea Asset Management, as asset manager     By: DDJ Capital
Management, LLC, as subadviser          
 
By:
        Name:       Title:          

 
 

  Stichting Pensioenfonds Hoogovens     By: DDJ Capital Management, LLC, on
behalf of Stichting Pensioenfonds Hoogovens, in its capacity as Manager        
 
 
By:
        Name:       Title:          

 
 
[Signature Page to First Amendment to the Purchase Agreement]

 
 

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  Stichting Pensioenfonds voor Fysiotherapeuten     By: DDJ Capital Management,
LLC, in its capacity as investment manager          
 
By:
        Name:       Title:          

 

 
UAW Retiree Medical Benefits Trust
    By: State Street Bank and Trust company, solely in its capacity as Trustee
for UAW Retiree Medical Benefits Trust, as directed by DDJ Capital Management,
LLC, and not in its individual capacity          
 
By:
        Name:       Title:          

 

 
DDJ Distressed and Special Situations Fund, L.P.
    By: DDJ/GP Distressed and Special Situations, LLC, its General Partner    
By: DDJ Capital Management, LLC, Manager          
 
By:
        Name:       Title:          

 
[Signature Page to First Amendment to the Purchase Agreement]

 
 

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LUXOR CAPITAL PARTNERS, LP
         
 
By:
        Name:       Title:          

 

 
LUXOR CAPITAL PARTNERS OFFSHORE MASTER FUND, LP
         
 
By:
        Name:       Title:          

 

 
LUXOR WAVEFRONT, LP
         
 
By:
        Name:       Title:          

 

 
GAM EQUITY SIX INC.
         
 
By:
        Name:       Title:          

 

 
OC 19 MASTER FUND, L.P. – LCG
         
 
By:
        Name:       Title:          

 
[Signature Page to First Amendment to the Purchase Agreement]

 

 
 

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Exhibit A
 
Annex A
 
Shares and Purchasers
 

Purchaser
 
Shares
   
Share Purchase Price
                   
Luxor Capital Partners, LP
    14,384     $14,384,000.00                    
Luxor Capital Partners
Offshore Master Fund, LP
    22,263     $22,263,000.00                    
Luxor Wavefront, LP
    5,159     $5,159,000.00                    
OC 19 Master Fund, LP
    1,603     $1,603,000.00                    
GAM Equity Six, Inc.
    1,591     $1,591,000.00                    
Quantum Partners LP
    25,000     $25,000,000.00                    
DDJ High Yield Fund
    250     $250,000.00                    
General Motors Hourly-
Rate Employes Pension
Trust – 7N1H
    3,750     $3,750,000.00                    
General Motors Salaried
Employes Pension Trust –
7N1I
    2,000     $2,000,000.00                    
Stichting Pensioenfonds
Hoogovens
    1,250     $1,250,000.00                    
Caterpillar Inc. Master
Retirement Trust
    2,500     $2,500,000.00  

 
 

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Purchaser
 
Shares
   
Share Purchase Price
                   

J.C. Penney Corporation, Inc.
Pension Plan Trust
    3,000     $3,000,000.00                    
Stichting Bewaarder
Interpolis Pensioenen Global
High Yield Pool
    3,250     $3,250,000.00                    
Stichting Pensioenfonds voor
Fysiotherapeuten
    1,000     $1,000,000.00                    
Houston Municipal
Employees Pension System
    1,000     $1,000,000.00                    
UAW Retiree Medical
Benefits Trust
    3,750     $3,750,000.00                    
DDJ Distressed and Special
Situations Fund, L.P.
    1,000     $1,000,000.00                    
Russell Investment
Company - Russell Global
Opportunistic Credit Fund
    2,000     $2,000,000.00                    
DDJ Capital Management
Group Trust - High Yield
Investment Fund
    250     $250,000.00                    
JHL Capital Group Master
Fund L.P.
    25,000     $25,000,000.00                  
TOTAL:
    120,000     $120,000,000.00  

 
 
 

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