Document:

Unassociated Document

 

Exhibit 10.1

Execution Version

 

AMENDMENT NO. 5 TO

SECURITIES PURCHASE AND SALE AGREEMENT

 

THIS AMENDMENT NO. 5 TO SECURITIES PURCHASE AND SALE AGREEMENT (this “Amendment”), dated as of March 9, 2011, is made by and among CAPRIUS, INC., a Delaware corporation (“Caprius”), M.C.M. ENVIRONMENTAL TECHNOLOGIES, INC., a Delaware corporation (“M.C.M.”), M.C.M. ENVIRONMENTAL TECHNOLOGIES LTD., an Israeli corporation (“M.C.M. Israel”) (Caprius, M.C.M. and M.C.M. Israel may be individually referred to as a “Borrower” and collectively referred to as the “Borrowers”), and VINTAGE CAPITAL GROUP, LLC, a Delaware limited liability company (together with its successors and assigns, the “Purchaser”).

 

R E C I T A L S

 

WHEREAS, the Borrowers and the Purchaser are parties to that certain Securities Purchase and Sale Agreement, dated as of September 16, 2009, (as amended (including, without limitation, by that certain Amendment No. 1 to Securities Purchase and Sale Agreement, dated as of September 8, 2010 (“Amendment No. 1”), that certain Amendment No. 2 to Securities Purchase and Sale Agreement, dated as of November 4, 2010 (“Amendment No. 2”), that certain Amendment No. 3 to Securities Purchase and Sale Agreement, dated as of November 18, 2010 (“Amendment No. 3”), and that certain Amendment No. 4 to Securities Purchase and Sale Agreement, dated as of December 16, 2010 (“Amendment No. 4”), restated, supplemented or otherwise modified from time to time, the “Purchase Agreement”);

 

WHEREAS, the Borrowers and the Purchaser have agreed to amend the Purchase Agreement as set forth herein; and

 

WHEREAS, capitalized terms not otherwise defined herein shall have the meanings ascribed to such terms in the Purchase Agreement, Amendment No. 1, Amendment No. 2, Amendment No. 3, and Amendment No. 4, as applicable.

 

A G R E E M E N T

 

NOW THEREFORE, in consideration of the foregoing premises and other good and valuable consideration paid by each party to the other, the receipt and sufficiency of which are hereby acknowledged, the parties hereby agree as follows:

 

1.           Amendments to Purchase Agreement.  Effective upon the Amendment No. 5 Effective Date, the Purchase Agreement is hereby amended as follows:

 

(a)           Section 1.1 of the Purchase Agreement is hereby amended by deleting the definition of “Subsequent Term Maximum Availability” in its entirety and replacing it with the following:

 

““Subsequent Term Maximum Availability” shall mean Six Million Seven Hundred Thousand Dollars ($6,700,000) (exclusive of Capitalized Obligations incurred by the Borrowers prior to, on or following the Amendment No. 1 Effective Date).”

 

  

 

  

 

(b)           Section 1.1 of the Purchase Agreement is hereby amended by inserting the following new definitions in their proper alphabetical order:

 

““Amendment No. 5” means that certain Amendment No. 5 to Securities Purchase and Sale Agreement, dated as of March 9, 2011, by and among the Borrowers and the Purchaser.”

 

““Amendment No. 5 Effective Date” has the meaning ascribed thereto in Amendment No. 5.”

 

““Tamuz  Escrow” shall mean that certain escrow account established with Gilat, Bareket Trusts, Ltd. in an amount not to exceed $400,000.”

 

““Tamuz Escrow Advance” shall mean the Advance made by the Purchaser at the request of the Borrowers to fund the Tamuz Escrow.”

 

(c)           Section 2.5 of the Purchase Agreement is hereby amended by adding the following Section 2.5.3 at the end thereof:

 

“2.5.3           On or after the Amendment No. 5 Effective Date, the Administrative Borrower may request that the Purchaser fund the Tamuz Escrow Advance under the Note to or on behalf of the Borrowers, which request shall be in the form of a Disbursement Request.  Subject to the last sentence of this Section 2.5.3, the Purchaser shall fund such Tamuz Escrow Advance directly to Gilat, Bareket Trusts, Ltd. not later than three (3) Business Days following receipt thereof; provided, that any Disbursement Request received by the Purchaser after 11:00 a.m. (Los Angeles time) on any Business Day (or received at any time on a day that is not a Business Day) shall be deemed to have been received on the next succeeding Business Day.  The Purchaser shall not be obligated to fund the Tamuz Escrow Advance if an Event of Default has occurred and is continuing unless it elects to do so in its sole and absolute discretion.”

 

(d)           Section 9 of the Purchase Agreement is hereby amended by adding the following Section 9.22 at the end thereof:

 

“9.22           Tamuz Escrow.  The escrow agreement governing the Tamuz Escrow shall be in form and substance satisfactory to the Purchaser in its sole and absolute discretion.  Such escrow agreement shall, among other things, explicitly provide that, in the event that the Tamuz Escrow expires or is otherwise terminated without having been drawn or having only been partially drawn, the escrow agent shall immediately cause all remaining amounts in the Tamuz Escrow to be paid to the Purchaser.”

 

(e)           Section 11.1.3 of the Purchase Agreement is hereby amended and restated in its entirety as follows:

 

“Any draw shall be requested or made on the Tamuz Escrow.”

 

  

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2.           Conditions Precedent to Effectiveness.  This Amendment shall be effective upon the first day that all of the following are satisfied (the “Amendment No. 5 Effective Date”):

 

(a)           The Purchaser’s receipt of a counterpart hereof duly executed by the Borrowers;

 

(b)           The Purchaser’s receipt of the Amendment Fee (as defined below); and

 

(c)           The representations and warranties of the Borrowers contained in this Amendment and the Purchase Agreement shall be true and correct.

 

3.           Covenants, Representations and Warranties of the Borrowers.

 

(a)           The Borrowers covenant and agree that the Borrowers shall, within one (1) Business Day after receipt thereof, pay to the Purchaser all collections, payments and proceeds of the Borrowers’ Accounts and all deposits, pre-payments and cash-on-delivery payments received by the Borrowers on account of any orders for products or sales of Inventory (excluding amounts received by the Borrowers representing shipping costs, taxes and reimbursed out-of-pocket expenses).  In the event that the Borrowers are obligated to return any deposits or pre-payments to a customer for which the Purchaser previously received any payment pursuant to this Section 3(a), upon demand of the Borrowers, the Purchaser shall return to the Borrowers an amount equal to the payment so received.  All such payments (unless returned to the Borrowers in accordance with the preceding sentence) shall be applied to the Tamuz Escrow Advance.  The Borrowers shall, prior to payment to the Purchaser pursuant to this Section 3(a), cause all collections, payments and proceeds subject to this Section 3(a) to be deposited in a bank account set forth on Schedule 3.29 to the Purchase Agreement with respect to which a Borrower has entered into a deposit account control agreement reasonably acceptable to the Purchaser.  For the avoidance of doubt, the payments to be made to the Purchaser under this Section 3(a) shall be senior in right of payment to any other Obligations and such payments shall be made prior to any other payments on account of the Obligations, including, without limitation, payments under Amendment No. 1.

 

(b)           Each Borrower makes the following representations and warranties to the Purchaser, each and all of which shall survive the execution and delivery of this Amendment:

 

(i)           This Amendment has been executed and delivered by duly authorized representatives of each Borrower, and the Purchase Agreement, as modified and amended by this Amendment, constitutes a legal, valid and binding obligation of such Borrower, and is enforceable against such Borrower in accordance with its terms, except as enforcement may be limited by equitable principles or by bankruptcy, insolvency, reorganization, moratorium or similar laws relating to or limiting creditors’ rights generally;

 

(ii)           After giving effect to this Amendment, no Default or Event of Default has occurred or is continuing other than the Specified Events of Default; and

 

  

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(iii)           After giving effect to this Amendment, all of the representations and warranties of the Borrowers contained in the Purchase Agreement continue to be true and correct in all material respects (except that such materiality qualifier shall not be applicable to any representations or warranties that already are qualified or modified as to “materiality” or “Material Adverse Effect” or “Material Adverse Change” in the text thereof, which representations and warranties shall be true and correct in all respects subject to such qualification) on and as of the date hereof as though made on and as of such date, except to the extent that any such representation or warranty expressly relates solely to an earlier date (in which case such representation or warranty shall be true and correct in all material respects (except that such materiality qualifier shall not be applicable to any representations or warranties that already are qualified or modified as to “materiality” or “Material Adverse Effect” or “Material Adverse Change” in the text thereof, which representations and warranties shall be true and correct in all respects subject to such qualification) on and as of such earlier date.

 

4.           No Waivers.  The execution, delivery and effectiveness of this Amendment shall not operate as a waiver of the Specified Events of Default or any other Default or Event of Default or any right, power or remedy of the Purchaser under the Purchase Agreement or any of the other Investment Documents, nor constitute a waiver of any provision of the Purchase Agreement or any of the other Investment Documents, whether arising as a result of the Specified Events of Default or any other Default or Event of Default or otherwise.  This Amendment shall not constitute a modification of the Purchase Agreement or a course of dealing between the Borrowers, on the one hand, and the Purchaser, on the other hand, at variance with the Purchase Agreement such as to require further notice by the Purchaser to the Borrowers to require strict compliance with the terms of the Purchase Agreement and the other Investment Documents in the future, except as expressly set forth herein. Each Borrower acknowledges and expressly agrees that the Purchaser reserves the right to, and does in fact, require strict compliance with all terms and provisions of the Purchase Agreement and the other Investment Documents and reserves and preserves its rights, remedies and powers with respect to the Specified Events of Default and any other Default or Event of Default which may now exist or hereafter arise under the Investment Documents.  No Borrower has knowledge of any challenge to the Purchaser’s rights arising under the Investment Documents or the effectiveness of the Investment Documents.

 

5.           Effect on Investment Documents.

 

(a)           The Purchase Agreement, as amended hereby, and each of the other Investment Documents shall be and remain in full force and effect in accordance with their respective terms and hereby are ratified and confirmed in all respects.

 

(b)           Upon and after the effectiveness of this Amendment, each reference in the Purchase Agreement to “this Agreement,” “hereunder,” “herein,” “hereof” or words of like import referring to the Purchase Agreement, and each reference in the other Investment Documents to “the Purchase Agreement,” “thereunder,” “therein,” “thereof” or words of like import referring to the Purchase Agreement, shall mean and be a reference to the Purchase Agreement as modified and amended hereby.

 

(c)           To the extent that any terms and conditions in any of the Investment Documents shall contradict or be in conflict with any terms or conditions of the Purchase Agreement, after giving effect to this Amendment, such terms and conditions are hereby deemed modified or amended accordingly to reflect the terms and conditions of the Purchase Agreement as modified or amended hereby.

 

  

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(d)           This Amendment is an Investment Document.

 

6.           Amendment Fee.  On the Amendment No. 5 Effective Date, the Purchaser shall be deemed to have earned, and the Borrowers hereby jointly and severally agree to pay the Purchaser, an amendment fee (the “Amendment Fee”) of Ten Thousand Dollars ($10,000).  Such fee is nonrefundable and is fully earned and payable upon the effectiveness of this Amendment and the Borrowers acknowledge and agree that they shall be deemed to have requested an Advance on the Amendment No. 5 Effective Date in an amount equal to the Amendment Fee.

 

7.           Fees, Costs and Expenses.  The Borrowers jointly and severally agree to pay on demand all fees, costs and expenses in connection with the preparation, execution, delivery, administration, modification and amendment of this Amendment and the other instruments and documents to be delivered hereunder, including, without limitation, the reasonable fees, costs and expenses of counsel for the Purchaser with respect thereto and with respect to advising the Purchaser as to its rights and responsibilities hereunder and thereunder.  The Borrowers acknowledge and agree that they shall be deemed to have requested an Advance on the Amendment No. 5 Effective Date in an amount equal to all such fees, costs and expenses for which the Purchaser has received an invoice on or before such date.

 

8.           Counterparts.  This Amendment may be executed in any number of separate counterparts and by the different parties hereto on separate counterparts, each of which shall be deemed an original and all of which, taken together, shall be deemed to constitute one and the same instrument. In proving this Amendment in any judicial proceedings, it shall not be necessary to produce or account for more than one such counterpart signed by the party against whom such enforcement is sought. Any signatures delivered by a party by facsimile transmission or electronic mail shall be deemed an original signature hereto.

 

9.           GOVERNING LAW.  EXCEPT AS OTHERWISE EXPRESSLY PROVIDED IN THIS AMENDMENT, IN ALL RESPECTS, INCLUDING ALL MATTERS OF CONSTRUCTION, VALIDITY AND PERFORMANCE, THIS AMENDMENT AND THE OBLIGATIONS SHALL BE GOVERNED BY, AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF NEW YORK APPLICABLE TO CONTRACTS MADE AND PERFORMED IN THAT STATE AND ANY APPLICABLE LAWS OF THE UNITED STATES OF AMERICA.

 

[The remainder of the page is intentionally blank.]

 

  

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

 

 

	 	
BORROWERS:

 

CAPRIUS, INC.

	 
	 	 	 	 
	 	
By: 

	/s/ Dwight Morgan  	 
	 	 	
Name: 

	
Dwight Morgan 

	 
	 	 	
Title:

	

Chief Executive Officer

	 
	 	 	 	 
	 	 	 
	 	
M.C.M. ENVIRONMENTAL TECHNOLOGIES, INC.

	 
	 	 	 	 
	 	
By: 

	/s/ Dwight Morgan  	 
	 	 	

Name:

	
Dwight Morgan 

	 
	 	 	Title: 	
Chief Executive Officer

	 
	 	 	 	 
	 	 	 
	 	
M.C.M. ENVIRONMENTAL TECHNOLOGIES LTD.

	 
	 	 	 	 
	
 

	
By: 

	/s/ Dwight Morgan  	 
	 	 	

Name:

	
Dwight Morgan  

	 
	 	 	
Title:   

	

Director

	 

 

[SIGNATURE PAGE TO AMENDMENT NO. 5 TO

SECURITIES PURCHASE AND SALE AGREEMENT]

 

  

  

  

 

	 	
PURCHASER:

  

VINTAGE CAPITAL GROUP, LLC

	 
	 	 	 	 
	 	
By: 

	/s/ Fred C. Sands	 
	 	 	

Name: 

	
Fred C. Sands

	 
	 	 	
Title:

	

Chairman

	 

 

 

[SIGNATURE PAGE TO AMENDMENT NO. 5 TO

SECURITIES PURCHASE AND SALE AGREEMENT]China Forestry Industry Group, Inc.: Exhibit 10.27 - Filed by newsfilecorp.com

Exhibit 10.27

Joint Management Contract on Rapid-Growth 
Eucalyptus
Forest Base 

Party A: Ding Hong Village, Shaping Town, Zhenfeng County,
Guizhou Province 
Party B: Qianxinan Aosen Forestry Company, Limited 

With a view to accelerating artificial commodity forest base
development, adjusting the rural industrial structure, fostering rural economic
growth areas, increasing farmers’ incomes, realizing the rational utilization of
barren mountains and moorlands, improving social, economic and ecological
benefits and getting the masses rich, Party A and Party B, in accordance with
the “Land Contracting Law of the People’s Republic of China” and relevant laws
and regulations as well as the provisions of relevant state policies, Party B
acquires the forest contracting right. The two parties, under the principle of
impartiality, fairness and unconstraint and through consultation on equal
footing, have entered into and concluded the present Contract. 

One. Site of the Joint Venture and Four Boundaries 

Party A will contract the land within the scope of the village
and its groups to Party B for development and use. The name of the forest (small
name) is Ding Hong Village, it is located at Ding Hong Village, Shaping Town and
has a total area of 7395mu (seven thousand three hundred and ninety five mu),
the four boundaries are: Eastern Border _________, Southern Border _________,
Western Border_______________, Northern Border ______________. The ownership is
clear. The detail of the four boundaries can be referred to the attached
drawing. 

Two. Joint Venture Term 

The joint venture term is 30 years (commencing from
__________and ending _________). When the joint venture term expires, the
Contract will be terminated. If Party B wants to renew the joint venture after
the expiration, the Contract shall remain effective after the same conditions
(if the central government adjusts the terms of rural land contracting, the two
parties shall settle through consultation). 

Three. Purpose of Contracted Forest 

The contracted forest must be used for forest production.
Without prior written approval, the forest shall not be used for non-forest
construction or shall not be idle or barren. 

Four. Rights and Obligation of the Two Parties 

(1) Rights and Obligations of Party A 

1. Responsible for supplying the land. If the adjacent lands
exceed 200mu, the boundaries shall be clear and free of any dispute; 

2. Warrant the land ownership is clear, responsible for
coordinating the land dispute; 

3. Actively participate in the base management, take effective
countermeasures for theft, stealing, fire, trampling by horse and cattle and
artificial damage; 

4. During the joint venture period, Party A has the succeeding
right and supervision right; 

5. Party A shall not assign the land to other persons, shall
maintain the land contracting and operation rights of Party B, shall not change
the land contracting and operation rights or cancel the Contract illegally. 

6. Respect the independence of production and operation rights
of Party B, not interfere in the normal production and operation activities
carried out by Party B legally. 

7. Confirm that the forest has no forest dispute in property
rights, it is not used as the mortgage for debts, will be responsible for
dealing with forest property rights dispute after the Contract is signed. 

(2) Rights and Obligations of Party B 

1. The right to use the contracted forest, operation rights,
benefits rights, the right to organize production and operation independently
and dispose of the forest and wood products; 

2. If the certificate of contracted forest right is obtained by
legitimate registration, the forest rights can be assigned, leased, be used as
shares and mortgages, or circulated by other means. 

3. The right to enjoy the state’s preferential policies for
forest development and receive supporting funds. If the forest is requisitioned
and occupied during the contracting period, Party B has the right to receive the
corresponding forest and wood compensation and proportional forest land
compensation. 

4. Responsible for cultivating and planting nursery stock,
providing fertilizer, pesticide, management and capital investment. 

5. Responsible for technical directions and sales of the base;

6. Party B enjoys the property rights of the woods and
independent operation rights during the contract period; 

Five. Special Provisions 

1. If Party A has the property rights certificate of the forest
contracted by Party B, Party A and Party B shall, within _____days from the date
when the Contract is signed, change the registration at the original certificate
issuer by presenting forest property right certificate and Contract. 

2. If Party A does not have the property rights certificate of
the forest contracted by Party B, Party A and Party B shall, within ______days
from the date when the Contract is signed, apply to the appropriate certificate
issuer by presenting the proper documents and materials. 

3. If the forest contracted by Party B is requisitioned and
occupied by law during the contract period, the compensation to the forest shall
be shared at the ratio of ________. 

4. The forest land contracted by Party B, or the cutover land
after cutting the wood legally shall be reforested within two years. In case of
failure to reforest as required, Party A has the right to take back the forest
contracted by Party B. In case of failure to reforest as required, Party A has
the right to take back the forest contracted by Party B. 

5. In the course of construction, job opportunities shall be
principally provided to the joint venture households, the labor force needed
shall be recruited from the joint venture household first, provided that the
construction shall be safe. In the event of any (injury, disabled and death,
etc) accident, the joint venture household shall bear the liability for the
accident, and Party B bears no liability for that. 

Six. Distribution Method 

The two parties adopt the following ______means for
distribution: 

1. Standing timber quantity sharing approach: 20% of standing
timber shall be shared by Party A, the 80% of it shall be shared by Party B,
namely the 2:8 sharing; 

2. Economic Benefits Distribution Method: Party A shares 20%
and Party B shares 80% of the economic benefits net of the costs of cutting and
transport, sale, taxes and fees, namely the 2:8 sharing; 

Seven. Liabilities for Breaching 

1. Party A and Party B shall, after the Contract takes effect,
fulfill their respective obligations under the Contract in the principle of good
faith. If either party breaches the Contract, the party shall pay the penalty to
the observant party, the amount of such penalty is RMB ____________. In case of
any loss of the opposite party resulting from such breaching, the breaching
party shall bear the liability for compensation, the amount of compensation is
____% of the loss. 

2. When force majeure or other natural disaster prevents the
performance of the Contract or prevents a part of the Contract from being
performed, it shall not be deemed as breaching, the liabilities of either party
can be exempted or alleviated by law. 

Eight. Miscellaneous Provisions 

1. Any dispute arising from the conclusion, execution,
performance, change and termination of the Contract shall be settled by Party A
and Party B through consultation. In case no settlement can be reached through
consultation, the dispute shall be referred to the villagers committee and
government of the local town for mediation. In case no mediation is succesful,
either party may indict to the people’s court of justice with jurisdiction. 

2. The matters not provided for in the Contract shall be
addressed in the supplementary agreement negotiated and signed by the two
parties, the supplementary agreement signed by law bears the same legal force as
the Contract does. 

3. The Contract is prepared in quadruplicate, one for Party A,
Party B, forest authority and notary public respectively. The Contract takes
effect after it is executed by the parties hereto. 

	Party A (Signature and Seal): 	Party B (Signature and Seal): 
	Ding Hong Villagers Committee, Shaping Town, Zhenfeng
      County 	Qianxinan Aosen Forestry Company, Limited

		
	Legal Representative: Yang Zhengbing 	Legal Representative: 
	
     
    
	
     
    

	Date: 	Date: October, 2008 

Attachments: 

1. List of Joint Venture Households 

2. Power of Attorney of Joint Venture Households

 3. Four Boundaries 

We, the whole joint venture households, hereby entrust the
village cadre ______, mass representative________, on behalf of Party A, go to
Notary Public of __________County along with Party B _______for notarizing Joint
Venture Contract on Rapid-Growth Eucalyptus Forest Base. 

Signatures of Joint Venture Households (Seal): 

	Name 	Seal 	Name 	Seal 	Name 	Seal 
	
    	 	
    	 	
    	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 

   This is to certify that the above signatures and information
are true. 

Ding Hong Villagers Committee,
Shaping Town, 
Zhenfeng County (Seal) 
Date: 

Four Boundaries of Joint Venture Forest of Qianxinan Aosen Forestry Company, Limited and Ding Hong Village (1) 

The drawing is made on the site surveying according to the given scale.             The scale: 1:10000 

Four Boundaries of Joint Venture Forest of Qianxinan Aosen Forestry Company, Limited and Ding Hong Village (2) 

The drawing is made on the site surveying according to the given scale.              The scale: 1:10000  

Four Boundaries of Joint Venture Forest of Qianxinan Aosen Forestry Company, Limited and Ding Hong Village (3)  

The drawing is made on the site surveying according to the given scale.               The scale: 1:10000 

Four Boundaries of Joint Venture Forest of Qianxinan Aosen Forestry Company, Limited and Ding Hong Village (4) 

The drawing is made on the site surveying according to the given scale.                The scale: 1:10000

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