Document:

ex10-2.htm

Exhibit 10.2

 

AGREEMENT AND WAIVER OF PURCHASER

 

This Agreement and Waiver (this “Agreement”) is made and entered as of the 21st day of March, 2011, by and among Merisel, Inc., a Delaware corporation (the “Company”) and

Saint’s Capital VI, L.P., a Delaware limited partnership (“Purchaser”).

WHEREAS, the Company and Phoenix Acquisition Company II, L.L.C., a Delaware limited liability company (“Phoenix”), are parties to a certain Redemption Agreement, dated as of January 19, 2011 (the “Redemption Agreement”); and

WHEREAS, in accordance with Sections 5.03 (b) of the Redemption Agreement, Phoenix agreed that if it or any Phoenix Representative, as defined in the Redemption Agreement, enters into an agreement with any third party for the purchase and sale or other transfer of the common stock of the Company owned by Phoenix (the “Common Stock”) or the Series A Preferred Stock of the Company (the “Preferred Stock”) that, as a condition precedent to such transfer, such third party shall enter into a written agreement with the Company pursuant to which such third party shall agree to the terms of Section 5.03(b) of the Redemption Agreement; and

WHEREAS, in accordance with Section 5.03 (c) of the Redemption Agreement, Phoenix agreed that if it or any Phoenix Representative enters into any agreement with any third party for the purchase and sale or other transfer of the Preferred Stock that, as a condition precedent to such transfer, such third party shall enter into an agreement with the Company pursuant to which such third party shall agree to waive any rights pursuant to Section 6(f) of the Certificate of Designation governing the Preferred Stock (the “Certificate of Designation”) with respect to any transfer by Phoenix or any Phoenix Representative of the Common Stock held by Phoenix; and

WHEREAS, Purchaser has entered into a Stock Purchase Agreement with Phoenix dated February 18, 2011 (the “Stock Purchase Agreement”)  for the purchase of all of the Preferred Stock and the Common Stock held by Phoenix and any Phoenix Representative and wishes to agree to the restrictions described in Sections 5.03(b) and 5.03(c) of the Redemption Agreement;

NOW THEREFORE, in consideration of the foregoing and the mutual covenants and agreements herein contained, and intending to be legally bound hereby, the parties hereby agree as follows:

AGREEMENTS

Section 1.   Definitions.  Defined terms used herein and not otherwise defined shall have the meanings set forth in the Redemption Agreement, as amended or in the Certificate of Designation, as applicable.

Section 2.   Agreement as to Tender Offer Price.   Purchaser agrees that for the period beginning from the date hereof and ending on February 4, 2013, neither it nor any Affiliate shall commence any tender offer in respect of any outstanding shares of common stock, par value $.01 per share of the Company for a purchase price of less than $1.25 per share.  Purchaser further agrees that in the event it shall violate this Section 2, its purchase of shares in the non-complying tender offer shall be null and void, and the Company shall have the right to instruct its transfer agent or any similar trust company, bank or financial institution maintaining the records of the Company’s stockholders to not transfer any share of Common Stock purchased subject to such invalid sale or transfer.

 

  

 

  

 

Section 3.   Waiver of Certain Rights under Section 6(f) of the Certificate of Designation.  Purchaser or any Affiliate that holds any Preferred Stock acquired from Phoenix or any Phoenix Representative hereby waives any rights that it or such Affiliate may have pursuant to Section 6(f) of the Certificate of Designation to receive a Change of Control Notice or to compel redemption by the Company of such Preferred Stock upon the occurrence of the Change of Control caused by the sale and transfer by Phoenix or any Phoenix Representative of the Common Stock held by Phoenix to Purchaser pursuant to the Stock Purchase Agreement.

Section 4.   Obligations of the Company.  The Company agrees that upon the consummation by Purchaser and Phoenix of the transactions contemplated by the Stock Purchase Agreement and the execution and delivery of this Agreement the Company shall recognize Purchaser as holder of record of the Common Stock and Preferred Stock described in the Stock Purchase Agreement and shall promptly execute and deliver the form of Assignment and Assumption Agreement attached to the Stock Purchase Agreement.

Section 5.   Separate Purchasers.    This Agreement shall apply only to the Common Stock and/or Preferred Stock acquired by the Purchaser and its Affiliates; to the extent that there are multiple purchasers of Common Stock and/or Preferred Stock held by Phoenix, each such purchaser shall enter into a separate agreement and no individual purchaser shall be liable for the obligations of any other purchaser.

Section 6.  Notices. All notices, requests, claims, demands and other communications hereunder shall be in writing and shall be given or made (and shall be deemed to have been duly given or made upon receipt) by delivery in person, by an internationally recognized overnight courier service, by facsimile or registered or certified mail (postage prepaid, return receipt requested) to the respective parties hereto at the following addresses (or at such other address for a party as shall be specified in a notice given in accordance with this Section 6):

 

	 (a)	 	if to Purchaser:	 
	 	 	 	 
	 	 	Name:   	Saints Capital VI, L.P.
	 	 	Address:    	
475 Sansome Street, Suite 1850

San Francisco, CA 94111

	 	 	Telephone No; 	415.773.2080
	 	 	Facsimile No: 	415.835.5970
	 	 	Attention:  	Ken Sawyer
	 	 	 	 

 

  

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with a copy to (which copy shall not constitute notice):

 

	 	 	Name:   	Venture Tech Law
	 	 	Address:    	
154 Ricardo Ave.    

Piedmont CA 94611

	 	 	Email:	jason@venturetechlaw.com
	 	 	Attention:        	Jason Altieri
	 	 	 	 
	 (b)	 	
 if to the Company

	 

 

	 	 	Merisel, Inc.	 
	 	 	127 West 30th Street	 
	 	 	5th Floor	 
	 	 	New York, NY 10001	 
	 	 	Attention:  Donald R. Uzzi and Victor L. Cisario	 
	 	 	E-mail: donald.uzzi@merisel.com and victor.cisario@merisel.com	 
	 	 	 	 
	 	 	with a copy (which copy shall not constitute notice):	 
	 	 	 	 
	 	 	Rosner & Napierala LLP	 
	 	 	26 Broadway-22nd Floor	 
	 	 	New York, NY 10004-1808	 
	 	 	Facsimile No: (212) 785-5203	 
	 	 	Email: nnapierala@rmnllp.com	 
	 	 	Attention: Natalie A. Napierala, Esq.	 

 

Section 7.   Specific Performance.  The parties hereto agree that irreparable damage would occur in the event that the provisions contained in this Agreement were not performed in accordance with their specific terms or were otherwise breached.  It is accordingly agreed that the parties shall be entitled to seek an injunction or injunctions, without the posting of any bond, to prevent breaches of this Agreement and to enforce specifically the terms and provisions hereof, this being in addition to any other remedy to which they are entitled at law or in equity.

 

Section 8.      Counterparts.   This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.

Section 9.     Titles.   The titles of the Sections of this Agreement are used for convenience only and are not to be considered in construing or interpreting this Agreement.

Section 10.   Governing Law.   This Agreement shall be governed by and construed in accordance with the laws of the State of New York, without regard to any applicable conflicts of law.

 

  

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 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first above written.

	 	 Company:	 	 
	 	 	 	 
	 	 MERISEL, INC.	 	 

 

	 	 	 	 
	 	By:  	/s/ Donald R. Uzzi      	 
	 	 	Name:  Donald R. Uzzi	 
	 	 	
Title:   Chairman of the Board, Chief Executive

Officer and President

	 
	 	 	 	 
	 	 	 	 

	 	Purchaser:	 	 
	 	 	 	 
	 	Saints Capital VI, L.P.	 

	 	
By Saints Capital VI, LLC, its general partner

	 	 

 

	 	By:  	/s/ Ken Sawyer   	 
	 	 	Name:  Ken Sawyer	 
	 	 	Title:   Managing Member	 
	 	 	 

4ex10-3.htm

Exhibit 10.3

 

AMENDMENT NO. 2 TO REVOLVING CREDIT

 AND SECURITY AGREEMENT

 

This Amendment No. 2 to Revolving Credit and Security Agreement (this “Amendment”) is entered into as of March 21, 2011 by and among Merisel, Inc., a Delaware corporation (the “Company”), Merisel Americas, Inc., a Delaware corporation, Color Edge LLC, a Delaware limited liability company, Color Edge Visual LLC, a Delaware limited liability company, Comp 24 LLC, a Delaware limited liability company, Crush Creative LLC, a Delaware limited liability company, Dennis Curtin Studios, LLC, a Delaware limited liability company, MADP, LLC, a Delaware limited liability company, Advertising Props, Inc., a Georgia corporation, and Fuel Digital, LLC, a Delaware limited liability company (each a “Borrower”, and collectively “Borrowers”), PNC Bank, National Association (“PNC”), as a Lender and as agent for the Lenders (PNC, in such capacity, the “Agent”), and the other lenders from time to time party thereto (collectively, the “Lenders”).  All terms used herein and not otherwise defined shall have the meanings ascribed to them in the Credit Agreement (as hereinafter defined).

 

WHEREAS, the Borrowers, Agent and Lenders entered into that certain Revolving Credit and Security Agreement, dated as of August 13, 2010, as amended by the Consent, Waiver and Amendment No. 1 to Revolving Credit and Security Agreement, dated as of February 3, 2011 (as the same may be from time to time further amended, extended, restated, supplemented or otherwise modified, the “Credit Agreement”);

 

WHEREAS, Phoenix Acquisition Company II, L.L.C. (“Stonington”) and Saints Capital VI, LP (“Purchaser”) have entered into a stock purchase agreement, dated as of February 18, 2011 (the “Purchase Agreement”), pursuant to which Stonington will sell all of its Equity Interests in the Company to Purchaser (the “Sale”), which, if effected absent this Amendment, would constitute a Change of Control under the Credit Agreement;

 

WHEREAS, Borrower has requested that the Lenders and the Agent enter into this Amendment in order to amend the definition of Change of Control to permit the Sale with causing an Event of Default under the Credit Agreement;

 

NOW THEREFORE, in consideration of the foregoing and for other consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto, intending to be legally bound, hereby agree as follows:

 

I.     AMENDMENTS

 

A.   The definition of “Change of Control” in Section 1.2 of the Credit Agreement is hereby amended and restated in its entirety as follows:

 

“Change of Control” shall mean the occurrence of any event (whether in one or more transactions) which results in a (a) transfer of control of any Borrower to a Person other than Saints Capital VI, LP, (b) any merger or consolidation of or with any Borrower (other than as permitted under this Agreement) or sale of all or substantially all of the property or assets of any Borrower, (c) Merisel Parent failing to have direct or indirect legal and beneficial title to all the Capital Stock of any Borrower, or (d) a majority of the Board of Directors of Merisel Parent or of any direct or indirect holding company thereof consisting of Persons who are not Continuing Directors of Merisel Parent.  For purposes of this definition, “control of Borrower” shall mean the power, direct or indirect (x) to vote 35% or more of the Equity Interests having ordinary voting power for the election of directors (or the individuals performing similar functions) of any Borrower or (y) to direct or cause the direction of the management and policies of any Borrower by contract or otherwise.

 

  

 

 

 

B.    The definition of “Continuing Director” in Section 1.2 of the Credit Agreement is hereby amended and restated in its entirety as follows:

 

      “Continuing Director” of any Person shall mean, as of the date of determination, any Person who (i) was a member of the Board of Directors of such Person on March 22, 2011, (ii) was nominated for election or elected to the Board of Directors of such Person with the affirmative vote of a majority of the Continuing Directors of such Person who were members of such Board of Directors at the time of such nomination or election, or (iii) was nominated for election or elected to the Board of Directors of such Person with the affirmative vote of Saints Capital VI, LP on or prior to June 22, 2011.

 

C.    The definition of “Stonington Group” in Section 1.2 of the Credit Agreement is hereby deleted in its entirety.

 

    II.            CONDITIONS PRECEDENT

 

The effectiveness of this Amendment is subject to the satisfaction of each of the following conditions:

 

A.   The Borrower shall have delivered to the Agent a fully executed copy of this Amendment.

 

B.    Agent shall have received evidence that the Sale has been consummated pursuant to the terms of the Purchase Agreement on the date hereof.

 

C.    The representations and warranties in Section III hereof shall be true and correct as of the date hereof and after giving effect to each of the transactions contemplated hereby.

 

III.   REPRESENTATIONS AND WARRANTIES

 

Borrowers hereby represent and warrant to the Lenders and Agent as follows:

 

A.   The execution, delivery and performance by each such Person of this Amendment and the transactions contemplated hereby (a) are within such Person’s corporate or limited liability company power; (b) have been duly authorized by all corporate or limited liability company or other necessary action; (c) are not in contravention of any provision of such Person’s certificate of incorporation or formation, operating agreement, bylaws or other documents of organization; (d) do not violate any law or regulation, or any order or decree of any Governmental Body; (e) do not conflict with or result in the breach or termination of, constitute a default under or accelerate any performance required by, any indenture, mortgage, deed of trust, lease, agreement or other instrument to which such Person is a party or by which such Person or any of such Person’s property is bound; (f) do not result in the creation or imposition of any Lien upon any of its property (other than Liens in favor of Agent); and (g) do not require the consent or approval of any Governmental Body or any other person.

 

  

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B.   This Amendment has been duly executed and delivered by each signatory hereto (other than the Agent and the Lenders) and constitutes the legal, valid and binding obligation of such Person, enforceable against such Person in accordance with its respective terms except as the enforceability hereof may be limited by bankruptcy, insolvency, reorganization, moratorium and other laws affecting creditors’ rights and remedies in general.

 

C.    Each representation and warranty of Borrowers contained in the Credit Agreement and the Other Documents is true and correct on the date hereof in all material respects and will be true and correct in all material respects as if made immediately after giving effect to this Amendment (except to the extent such representation or warranty relates to an earlier date, in which case such representation and warranty is true and correct in all material respects on and as of such earlier date).

 

D.   Immediately prior to and after giving effect to the transactions contemplated by this Amendment, no Default or Event of Default has occurred and is continuing under the Credit Agreement or any of the Other Documents.

 

IV.      MISCELLANEOUS

 

A.   Borrowers acknowledge and confirm to Agent and the Lenders that the Credit Agreement and each Other Document to which it is a party shall remain in full force and effect and shall continue to evidence, secure or otherwise guarantee and support the obligations owing by the Borrowers to the Agent and Lenders pursuant thereto, and, after giving effect to this Amendment, Borrowers hereby ratify and affirm each of the foregoing documents to which it is a party.

 

B.    Borrowers acknowledge and reaffirm to the Agent and the Lenders that (i) the Liens granted to the Agent for the benefit of the Lenders under the Credit Agreement and the Other Documents remain in full force and effect and shall continue to secure the obligations of the Borrowers arising under the Credit Agreement and the Other Documents, and (ii) the validity, perfection or priority of the Liens will not be impaired by the execution and delivery of this Amendment.

 

C.    Borrowers acknowledge and agree that no Lender shall waive or shall be deemed to have waived any of its rights or remedies under the Credit Agreement or any of the Other Documents which documents shall remain in full force and effect in accordance with their terms.

 

D.    Borrowers shall be responsible for the prompt payment of and, upon demand, shall promptly reimburse Agent for, all of the Lenders’ and Agent’s out-of-pocket costs and expenses related to the preparation, negotiation, execution and enforcement of this Amendment (including, without limitation, the reasonable fees and disbursements of legal counsel to Agent).

 

  

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E.   This Amendment may be executed in any number of counterparts, including by telecopy, and by the various parties hereto on separate counterparts, each of which when so executed and delivered shall be an original, but all of which shall together constitute one and the same instrument.

 

F.   THIS AMENDMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE CONSTRUED IN ACCORDANCE WITH AND BE GOVERNED BY THE INTERNAL LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO ITS CONFLICTS OF LAWS PRINCIPLES AND SHALL BE BINDING UPON AND INURE TO THE BENEFIT OF THE SUCCESSORS AND ASSIGNS OF THE PARTIES HERETO.

 

IN WITNESS WHEREOF, each of the parties hereto, by their officers duly authorized, has executed this Amendment as of the date first above written.

        

	 	BORROWERS:
	 	 
	  	
MERISEL, INC.

	  	  
	  	  
	  	
By: /s/ Donald R. Uzzi

	  	
Name: Donald R. Uzzi

	  	
Title:   Chief Executive Officer and President

	  	  
	  	  
	  	
MERISEL AMERICAS, INC.

	  	  
	  	  
	  	
By: /s/ Donald R. Uzzi

	  	
Name: Donald R. Uzzi

	  	
Title:   Chief Executive Officer and President

	  	  
	  	  
	  	
COLOR EDGE LLC

	  	  
	  	  
	  	
By: /s/ Donald R. Uzzi

	  	
Name: Donald R. Uzzi

	  	
Title:   Manager

	  	  
	 	 
	  	
COLOR EDGE VISUAL LLC

	  	  
	  	  
	  	
By:  /s/ Donald R. Uzzi

	  	
Name:  Donald R. Uzzi

	  	
Title:    Manager

 

  

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COMP 24 LLC

	  	  
	  	  
	  	
By: /s/ Donald R. Uzzi

	  	
Name: Donald R. Uzzi

	  	
Title:   Manager

	  	  
	 	 
	  	
CRUSH CREATIVE LLC

	  	  
	  	  
	  	
By: /s/ Donald R. Uzzi

	  	
Name: Donald R. Uzzi

	  	
Title:   Manager

	  	  
	 	 
	  	
DENNIS CURTIN STUDIOS, LLC

	  	  
	  	  
	  	
By: /s/ Donald R. Uzzi

	  	
Name: Donald R. Uzzi

	  	
Title:   Manager

	  	  
	 	 
	  	
MADP, LLC

	  	  
	  	  
	  	
By: /s/ Donald R. Uzzi

	  	
Name: Donald R. Uzzi

	  	
Title:   Manager

	  	  
	 	 
	  	
ADVERTISING PROPS, INC.

	  	  
	  	  
	  	
By: /s/ Donald R. Uzzi

	  	
Name: Donald R. Uzzi

	  	
Title:   Chief Executive Officer and President

	  	  
	 	 
	  	
FUEL DIGITAL, LLC

	  	  
	  	  
	  	
By: /s/ Donald R. Uzzi

	  	
Name: Donald R. Uzzi

	  	
Title:   Manager

	  	  

 

  

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	 	AGENT AND LENDER:
	  	  
	  	
PNC BANK, NATIONAL ASSOCIATION,

	  	
as Lender and as Agent

	  	  
	  	  
	  	
By: /s/ Gordon Wilkins

	  	
Name: Gordon Wilkins

	  	
Title: Vice President

	  	  

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