Document:

ex10_3.htm

    
      

    

    Exhibit
      10.3

    

    AMENDMENT
      AND JOINDER TO CREDIT AGREEMENT

    

    This
      AMENDMENT AND JOINDER TO CREDIT AGREEMENT (“Amendment and
      Joinder Agreement”), dated as of August 31, 2007, is made by and among
SELECT, INC., a Massachusetts corporation, having its chief
      executive office located at 780 Dedham Street, Canton Massachusetts 02021
      (“Select”), and CASTLE PINES CAPITAL LLC, a Delaware
      limited liability company (“CPC”). Capitalized terms not defined herein
      have the meanings given to them in the Credit Agreement (as defined
      herein).

    

    W
      I T N E
      S S E T H :

    

    WHEREAS,
      INX, Inc.(“INX”) is a party to that certain Amended and Restated Credit
      Agreement dated as of April 30, 2007, as amended on August 1, 2007 (the
“Credit Agreement”); and

    

    WHEREAS,
      Select is currently a party to a certain Credit Agreement dated as of May 10,
      2005 with CPC wherein Select granted a security interest in all of its assets
      to
      CPC (the “Existing Select Credit Agreement”); and

    

    WHEREAS,
      Select, as a result of the acquisition of all of it’s capital stock by INX, has
      become a wholly-owned subsidiary of INX; and

    

    WHEREAS,
      Select desires to become a Reseller under the terms of the Credit
      Agreement;

    

    NOW,
      THEREFORE, in consideration of the premises, the parties hereto hereby
      agree as follows:

     

    SECTION
      ONE - Joinder. Select hereby acknowledges that it has received and
      reviewed a copy of the Credit Agreement, and acknowledges and agrees
      to:

     

    
      	
               

            	
              (a)

            	
              join
                the Credit Agreement as a Reseller (with the same effect as if initially
                named therein), as indicated by its signature
                below;

            

    

     

    
      	
               

            	
              (b)

            	
              be
                bound by all covenants, agreements, terms, conditions and acknowledgements
                attributable to a Reseller in the Credit Agreement;
                and

            

    

     

    
      	
               

            	
              (c)

            	
              perform
                all obligations and duties required of it by the Credit Agreement
                as a
                Reseller.

            

    

     

    SECTION
      TWO – Continuation of Security Interest. Furthermore, in
      connection with its joinder to the Credit Agreement, Select hereby acknowledges
      (a) the continuing validity of that certain financing statement filed by CPC
      in
      the office of the Secretary of State of the State of Massachusetts, bearing
      financing statement number 200538855530 in connection with the security interest
      granted to CPC pursuant to the terms of the Existing Select Credit Agreement
      (the “Select Financing Statement”); (b) acknowledges that the perfection
      of the security interest granted to CPC in the Existing Select Credit Agreement
      by the Select Financing Statement is intended to continue uninterrupted once
      Select has joined the Credit Agreement via this Amendment and Joinder Agreement
      and (c) further authorizes CPC to maintain the Select Financing Statement and
      to
      file amendments, modifications and extensions thereto.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    SECTION
      THREE –Amendments.  The following amendments effective as of
      the date hereof, subject to the satisfaction of the conditions set forth in
      Section Three hereof:

     

    A.  Amendment
      to Section 2.  Section 2 of the Credit Agreement is amended by adding
      the following sentence at the end of Section 2(h)(vii):

     

    “Upon
      agreeing to make an Acquisition Loan hereunder, CPC shall send Reseller a TS,
      identifying the terms of each Acquisition Loan.”

     

    B.  Amendment
      to Definitions.  The definition of the term “Reseller” contained in
      Section 25 of the Credit Agreement is hereby amended by deleting it in its
      entirety and adding the following definition to Section 25:

     

    ““Reseller”
      means INX and Select, a Massachusetts corporation and each other subsidiary
      of
      INX that may become party to this Agreement from time to time.”

     

    C.  Amendment
      to Section 2.  Section 2 of the Credit Agreement is amended by adding
      the following new subsection (g) “Reseller Agent at the
      end of the Section:

     

    “(h)
      Reseller Agent.  Select hereby appoints INX as
“Reseller Agent.” Because the operations and business activities of the
      Resellers are integrated and interdependent, at any particular time it is
      impractical to determine which of the Resellers will directly receive the
      proceeds of a Financed Inventory advance or a Revolving Credit
      Loan.  Each of the Resellers hereby directs CPC to disburse the
      proceeds of each Financed Inventory advance or Revolving Credit Loan to or
      at
      the direction of the Reseller Agent, with such directions to be subject to
      approval of CPC in its discretion, and such distribution will, in all
      circumstances, be deemed to be made to each of the Resellers.  From
      time to time, Reseller Agent shall further distribute the proceeds of Revolving
      Credit Loans to a particular Reseller or Resellers, jointly and severally,
      or
      direct the disbursement of the Financed Inventory advance for the account of
      each Reseller, and each Reseller represents and warrants that the subsequent
      receipt and use of such proceeds by any particular Reseller inures to the
      economic benefit directly and indirectly of all other Resellers.  For
      so long as the Line of Credit is in effect, each Reseller hereby covenants
      and
      agrees, and hereby grants to the Reseller Agent an absolute and irrevocable
      power of attorney coupled with interest, and irrevocably designates, appoints,
      authorizes and directs the Reseller Agent to (a) execute and deliver any
      Borrowing Bases, (b) certify the financial statements of Reseller, (c) request
      advances, and execute and deliver written requests for advances, (d) make any
      other deliveries required to be delivered periodically hereunder to CPC, and
      (e)
      otherwise take all other actions otherwise contemplated by this Section, and
      to
      act on behalf of such Reseller for purposes of giving and receiving notices
      and
      certificate ions under this Credit Agreement or any other document related
      to
      this Credit Agreement.  CPC is entitled to rely and act on the
      instructions of the Reseller Agent.”

     

    SECTION
      FOUR – Conditions to Effectiveness.  This Amendment shall
      become effective as of the date first above written provided:

     

    A.  CPC
      has received counterparts of this Amendment executed by both Resellers
      immediately following the acquisition by INX of Select;

     

    B.
      As of
      the date first above written, no event shall have occurred since August 1,
      2007,
      which has a material adverse effect on the business, assets, revenues, financial
      condition or Collateral of INX, the ability of INX to perform its payment
      obligations when due or to perform any other material obligation under the
      Credit Agreement; or any right, remedy or benefit of CPC under the Credit
      Agreement; and

     

    C.  CPC
      has received such other certificates, resolutions, agreements, documents and
      information as requested by CPC and its counsel.

     

    In
      addition, the effectiveness of this Amendment is conditioned upon the continuing
      accuracy of the representations and warranties set forth in Section Four
      hereof.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    SECTION
      FIVE – Representations and Warranties.  In order to induce
      CPC to enter into this Amendment, INX represents and warrants to CPC that (i)
      the Credit Agreement, as amended, does remain the legal, valid, enforceable
      and
      binding obligation of each Reseller, (ii) no Default has occurred and is
      continuing, (iii) all of the representations and warranties in the Credit
      Agreement are true and complete in all material respects on and as of the date
      hereof as if made on the date hereof (or, if any such representation or warranty
      is expressly stated to have been made as of a specific date, as of such specific
      date), and (iv) neither Reseller has any claims, defenses, or offsets against
      CPC.

     

    SECTION
      SIX – Miscellaneous.  INX waives notice of CPC’s acceptance
      of this addendum.  All other terms and provisions of the Credit
      Agreement, to the extent not inconsistent with the foregoing, are ratified
      and
      remain unchanged and in full force and effect.

     

    SECTION
      SEVEN – Execution in Counterparts.  This Amendment may be
      executed in any number of counterparts and by different parties hereto in
      separate counterparts, each of which when so executed shall be deemed to be
      an
      original and all of which taken together shall constitute but one and the same
      agreement.  Delivery of an executed counterpart of a signature page to
      this Amendment by facsimile shall be effective as delivery of a manually
      executed counterpart of this Amendment.

     

    SECTION
      EIGHT – Governing Law.  This Amendment shall be governed by,
      and construed in accordance with, the laws of the State of Colorado (without
      giving effect to any provisions thereof relating to conflicts of
      law).

     

    THIS
      AMENDMENT AND JOINDER AGREEMENT AND THE CREDIT AGREEMENT CONTAIN BINDING
      ARBITRATION, JURY WAIVER AND PUNITIVE DAMAGE WAIVER PROVISIONS.

    

    (Signature
      Page(s) to Follow)

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    IN
      WITNESS WHEREOF, each of the undersigned has caused this Amendment and Joinder
      Agreement to be duly executed and delivered by its proper and duly authorized
      officer as of the date set forth below.

    

    
      	
              Dated:

            	
              August
                31, 2007

            

    

    

    
      	 	
              INX,
                INC.

            
	 	
              RESELLER

            

    

     

    
      	 	
              /s/
                James H. Long

            
	 	
              James
                H. Long

            
	 	
              Chairman
                & Chief Executive Officer

            

    

    

    
      	 	
              SELECT,
                INC.

            
	 	
              RESELLER

            

    

     

    
      	 	
              /s/
                Mark Hilz

            
	 	
              Mark
                Hilz

            
	 	
              President

            

    

     

    ACKNOWLEDGED
      AND AGREED TO:

     

    CASTLE
      PINES CAPITAL LLC

     

    
      	
              By:/s/
                John Schmidt

            
	
              Name: John
                Schmidt

            
	
              Title: Managing
                Partnerex10_1.htm

    
      
        

      

    

     

    SEPARATION
      AGREEMENT AND GENERAL RELEASE

    

    This
      Separation Agreement and General
      Release (“Agreement”) by and among DR. QUN YI ZHENG, an individual
      residing  at 6 Foxhill Drive, Wayne, New Jersey 07470 (hereinafter
      referred to as the “Employee”), KENT FINANCIAL SERVICES, INC. and KENT
      INTERNATIONAL HOLDINGS, INC. (formerly known as Cortech, Inc.), their
      affiliates, parent company, predecessors, successors or assigns, and their
      respective officers, including but not limited to Paul O. Koether, directors,
      trustees, representatives, agents and Employees, and any of their subsidiaries,
      and all entities associated or affiliated with Paul Koether, including their
      respective officers, directors, trustees, representatives and Employees
      (hereinafter referred to as the “Company”), and PAUL KOETHER,
      individually.

    

    RECITALS

    

    The
      Employee desires to resign and the Company is prepared to offer severance to
      the
      Employee,

    

    NOW,
      THEREFORE, the parties agree as follows:

    

    1.           As
      of August 31, 2007, the Company agrees to release the Employee from his
      obligations under a certain Employment Agreement dated November 1, 2005,
      attached as Exhibit 1, including but not limited to, the covenant not to compete
      contained in Paragraph 8 of the Employment Agreement.

    

    2.           The
      Employee will continue to have the use of a certain Mercedes Benz automobile,
      leased for him by the Company under Paragraph 3.5 of the Employment Agreement
      including all auto insurance payments, until February 23, 2008.  The
      Employee shall also be permitted to keep his laptop computer and
      printer.

    

    3.           In
      full satisfaction of all other financial obligations or emoluments which may
      be
      or are owed to the Employee under Paragraphs 3, 4, 5 and 6 in the Employment
      Agreement, the Employee agrees to accept the sum of One Hundred Thirty Thousand
      Dollars ($130,000.00), less appropriate state and federal payroll withholdings
      and taxes, in a lump sum, to be paid to the Employee on or before August 31,
      2007.  The Company further agrees to assign to Employee all
      present  contracts with Shering Plough totaling approximately
      $6,000.00.

    

    4.           In
      return for release from Paragraph 8 of the Employment Agreement, retention
      of
      the automobile until February 23, 2008, and the payment recited in Paragraph
      3,
      the Employee agrees that he will resign, effective August 31, 2007, from all
      officer positions and all directorship positions in the Company.

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

    5.           The
      Employee hereby releases, gives up, waive, and forever discharges the Company
      from any and all claims or liabilities of whatever kind or nature, that he
      has
      ever had or which he now has, known or unknown, including, but not limited
      to,
      any claim for attorneys’ fees and any claim which could be asserted now or in
      the future under (a) the common law, including, but not limited to theories
      of
      tort or contract (express or implied), defamation, or violation of public
      policy; (b) any policies, practices, or procedures of the Company; (c) any
      federal, state or local law, statute or regulation expressly including, but
      not
      limited to: Age Discrimination in Employment Act of 1967, as amended, 29 U.S.C.
      §621 et seq., Title VII of the Civil Rights Act of 1964, 42 U.S.C. §2000(e)
etseq., The Employee Retirement Income Security Act of 1974, as
      amended, 29 U.S.C. §1001 etseq., the Americans With Disabilities
      Act, 42 U.S.C. §12101 etseq., the New Jersey Law Against
      Discrimination, N.J.S.A. 10:5-1 etseq., the New Jersey
      Conscientious Employee Protection Act, N.J.S.A. 34:19-1, etseq.,
      the New Jersey Family Leave Act, N.J.S.A. 34:11B-1 etseq., the
      Family and Medical Leave Act, 29 U.S.C. §2601 etseq., the Equal
      Pay Act, 29 U.S.C. §206(d) etseq.; the New Jersey Wage Payment
      Law, N.J.S.A. 34:11-4.1 etseq., and/or the New Jersey Wage and
      Hour Law, N.J.S.A. 34:11-56a etseq.; (d) any contract of
      employment, expressed or implied; (e) any provision of the Constitution of
      the
      United States, the State of New Jersey or any other state; (f) any and all
      claims or actions for attorneys’ fees or costs; and (g) any provision of any
      other law, common or statutory, of the United States, New Jersey, or any other
      state.  This Release does not apply to claims that may arise after the
      date this Release is signed, any claim for vested benefits under a benefit
      plan
      maintained by the Company, or claims that cannot be released as a matter of
      law.  In the event that any state or federal administrative agency
      files or processes a charge or action on my behalf, he hereby waives any and
      all
      rights he may have to recover any monies or any other thing of value from any
      proceeding arising from the charge or action.

    

    6.           The
      Company hereby releases, gives up, waives and forever discharges the Employee
      from any and all claims or liabilities of whatever kind or nature that the
      Company has ever had or which it now has, known or unknown, including but not
      limited to, any claim for attorneys’ fees and any claim which could be asserted
      now or in the future.

    

    7.           The
      Employee agrees not to make any defamatory, disparaging, critical or negative
      statements concerning the Company or any of its respective predecessors,
      successors and assigns, as well as its past or present officers, directors,
      agents, representatives or employees, as well as their successors and assigns,
      heirs, executors, and personal or legal representatives, including Paul
      Koether.

    

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    8.           The
      Company agrees not to make any defamatory, disparaging, critical or negative
      statements concerning the Employee.

    

    9.           The
      Company and the Employee are bound by this Agreement.  Anyone who
      succeeds to his rights and responsibilities, such as his heirs or the executor
      of his estate, is also bound.

    

    10.         This
      Agreement contains the sole and the entire agreement between the Employee and
      the Company, and completely and fully supersedes and replaces any and all prior
      contracts, agreements, discussions, representations, negotiations,
      understandings and any other communications between the parties relating to
      the
      subject matter hereof.  He represents and acknowledges, in signing
      this Agreement that he has not relied upon any representation or statement
      not
      set forth in this Agreement made by the Company or its representatives with
      regard to the subject matter of this Agreement.  No other promises or
      agreements will be binding unless in writing, signed by the parties hereto,
      and
      expressly stated to represent an amendment to this Agreement.

    

    11.         BY
      SIGNING THIS AGREEMENT, THE EMPLOYEE STATES
      THAT:  He has the right to consult with
      an attorney of his choice at his expense prior to signing it.  He
      acknowledges that he has carefully read this Agreement, fully understand it
      and
      is signing it voluntarily.  He understands and knows that he is giving
      up important rights, and that he is giving up any such rights or claims in
      exchange for payments to which he is not already entitled.  By signing
      below, he also acknowledges that he was given up to twenty-one (21) days from
      the date he received this Agreement to make up his mind about signing
      it.  If he signs it sooner, it is because he has decided that he
      did not need the additional time.  He understands that he has seven
      (7) days after signing this Agreement and Release to revoke his acceptance
      of
      it.  If he does not advise Paul O. Koether, Kent Financial Services,
      Inc. and Kent International Holdings, Inc., 211 Pennbrook Road, P.O. Box 97,
      Far
      Hills, New Jersey 07931 in writing, within such seven (7) day period of his
      intent to revoke this Agreement, this Agreement will become effective and
      enforceable upon the expiration of the seven (7) days.  Accordingly,
      this Agreement and Release will not become effective or enforceable until the
      seven-day revocation period has expired.

    

    

    
      	   
              	 	    
              
	
              Signature
                of Witness

            	
              Date

            	 	
              Dr.
                Qun Yi Zheng

            	
              Date

            
	 	 	 	 	 	 	 
	 	 	 	 	
              KENT
                FINANCIAL SERVICES, INC. 

            	 
	 	 	 	 	
              and 

            	 
	 	 	 	 	
              KENT
                INTERNATIONAL 

            	 
	 	 	 	 	
              HOLDINGS,
                INC. 

            	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	
              Date:

            	  
              	 	 	
              By:

            	  
              	 
	 	 	 	 	 	
              Paul
                O. Koether

            	 
	 	 	 	 	 	
              Chairman
                of the Board

            	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	
              Date:

            	  
              	 	 	  
	 	 	 	 	
              Paul
                O. Koether, Individually 

            	 

    

     

     

    3

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