Document:

ex101to8k05558_10092009.htm

    Exhibit 10.1

     

    
      AMENDMENT
NO. 1

       

      TO

       

      AMENDED
AND RESTATED LOAN AGREEMENT

       

      THIS
AMENDMENT NO. 1 (this “Amendment”) is entered into as of October 9, 2009, by and
among EMPIRE RESORTS, INC., a New York corporation (“Borrower”), ALPHA
MONTICELLO, INC. (“AMI”), ALPHA CASINO MANAGEMENT INC. (“ACMI”), MOHAWK
MANAGEMENT, LLC (“MML”), MONTICELLO CASINO MANAGEMENT, LLC (“MCML”), MONTICELLO
RACEWAY DEVELOPMENT COMPANY, LLC (“MRDC”), MONTICELLO RACEWAY MANAGEMENT, INC.
(“MRMI”; and together with AMI, ACMI, MML, MCML and MRDC, collectively, the
“Guarantors”), the financial institutions set forth on the signature pages
hereto (each a “Bank” and collectively, the “Banks”) and THE PARK AVENUE BANK as
agent for Banks (in such capacity, “Agent”).

       

      BACKGROUND

       

      Borrower,
Agent and Banks are parties to an Amended and Restated Loan Agreement dated as
of July 27, 2009 (as amended, restated, supplemented or otherwise modified from
time to time, the “Loan Agreement”) pursuant to which Agent and Banks provide
Borrower with certain financial accommodations.

       

      Borrower
has requested that Agent and Banks waive various Events of Default that have
occurred and make certain amendments to the Loan Agreement, and Agent and Banks
are willing to do so on the terms and conditions hereafter set
forth.

       

      NOW,
THEREFORE, in consideration of any loan or advance or grant of credit heretofore
or hereafter made to or for the account of Borrower by Agent and Banks, and for
other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the parties hereto hereby agree as follows:

       

      1.           Definitions.  All
capitalized terms not otherwise defined herein shall have the meanings given to
them in the Loan Agreement.

       

      2.           Amendment to Loan
Agreement.  Subject to satisfaction of the conditions precedent
set forth in Section 4 below, the Loan Agreement is hereby amended as
follows:

       

           
(a)            Section
2.8 is amended in its entirety to provide as follows:

       

      “The
Maturity Date shall be December 31, 2009.”

       

                                   
(b)            Section
3.1 is amended in its entirety to provide as follows:

       

      “The
Borrower agrees to pay interest on the unpaid principal amount of the Loans from
time to time outstanding at a rate per annum equal to the applicable Basic
Interest Rate.”

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

                                   
(c)            Section 6A
is deleted in its entirety.

       

                                   
(d)            Section
7.1 is hereby amended as follows:

       

      (i)          By
adding “and” at the end of clause (n) thereof immediately following
“;”;

       

      (ii)         By
replacing “; and” at the end of clause (o) with “.”;  and

       

      (iii)        By
deleting clause (p) in its entirety.

       

                                   
(e)           Annex I is
amended as follows:

       

      (i)          By
adding the following defined terms in their appropriate alphabetical
order:

       

      (A)           “Amendment No. 1”
shall mean that certain Amendment No. 1 dated as of October 9, 2009 to Amended
and Restated Loan Agreement dated as of July 27, 2009, among Borrower,
Guarantors, Agent and Banks.

       

      (B)           
“Amendment No. 1
Effective Date” shall mean the date when the conditions of effectiveness
set forth in Section 4 of Amendment No. 1 have been met to Agent’s
satisfaction.

       

      (C)           “Basic Interest Rate”
shall mean a rate per annum equal to (a) from the Closing Date until the day
immediately preceding the Amendment No. 1 Effective Date, the greater of (i) the
fluctuating rate of interest announced from time to time in The Wall Street
Journal as the “US prime rate” (or if such rate is no longer published by The
Wall Street Journal, such rate as the Agent shall announce from time to time as
its “prime rate”, which rate is not necessarily the lowest rate that the Agent
charges to its customers) plus 5.50% and (ii) 9.00% and (b) from the Amendment
No. 1 Effective  Date until maturity (whether by acceleration or
otherwise), a rate per annum equal to 8.00%.

       

      (ii)         By
deleting the following defined terms in their entirety therefrom:

       

      (A)
“Extension Period”; and

       

      (B)
“First Extended Maturity Date”.

       

      3.           Waiver.  Subject
to satisfaction of the conditions precedent set forth in Section 4 below, Agent
and Banks hereby waive the Event of Default which has occurred as a result of
Borrower’s failure to pay principal when due on the Short Term Maturity
Date.

       

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

       

      4.           Conditions of
Effectiveness.  This Amendment shall become effective upon
satisfaction of the following conditions precedent:  Agent shall have
received (i) four (4) copies of this Amendment executed by Borrower and Banks
and consented and agreed to by Guarantors, (ii) payment of one million dollars
($1,000,000) from Borrower in immediately available funds to be applied to the
outstanding principal amount of the Loans, (iii) an opinion from Borrower’s
counsel stating that the Borrower and Guarantors have authority to enter into
and execute this Amendment, (iv) payment of all fees and expenses incurred by
Agent in connection with this Amendment from Borrower not to exceed ten thousand
dollars ($10,000) and (v) such other certificates, instruments, documents,
agreements and opinions of counsel as may be required by Agent or its counsel,
each of which shall be in form and substance satisfactory to Agent and its
counsel.

       

      5.           Representations and
Warranties.  Borrower hereby represents and warrants as
follows:

       

                                   
(a)           This
Amendment and the Loan Agreement, as amended hereby, constitute legal, valid and
binding obligations of Borrower and are enforceable against Borrower in
accordance with their respective terms.

       

                                   
(b)           Upon the
effectiveness of this Amendment, Borrower hereby reaffirms all covenants,
representations and warranties made in the Loan Agreement to the extent the same
are not amended hereby and agrees that all such covenants, representations and
warranties shall be deemed to have been remade as of the effective date of this
Amendment (except with respect to the representations and warranties made in
Section 10.5(a), which have
changed only with respect to the number of issued and outstanding shares of the
Borrower’s common stock set forth on Schedule 10.5(a) to the Loan Agreement as a
result of the exercise of options and the issuance of shares of common stock to
Kien Huat Realty III Limited).

       

                                   
(c)           No Event of
Default or Default has occurred and is continuing or would exist after giving
effect to this Amendment.

       

                                   
(d)           Borrower
has no defense, counterclaim or offset with respect to the Loan
Agreement.

       

      6.           Effect on the Loan
Agreement.

       

                                   
(a)           Upon the
effectiveness of Section 2 hereof,
each reference in the Loan Agreement to “this Agreement,” “hereunder,” “hereof,”
“herein” or words of like import shall mean and be a reference to the Loan
Agreement as amended hereby.

       

                                   
(b)           Except as
specifically amended herein, the Loan Agreement, and all other documents,
instruments and agreements executed and/or delivered in connection therewith,
shall remain in full force and effect, and are hereby ratified and
confirmed.

       

                                   
(c)           The
execution, delivery and effectiveness of this Amendment shall not, except as
expressly provided in Section 3, operate as a waiver of any right, power or
remedy of Agent or Banks, nor constitute a waiver of any provision of the Loan
Agreement, or any other documents, instruments or agreements executed and/or
delivered under or in connection therewith.

       

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

       

      7.           Governing
Law.  This Amendment shall be binding upon and inure to the
benefit of the parties hereto and their respective successors and assigns and
shall be governed by and construed in accordance with the laws of the State of
New York.

       

      8.           Headings.  Section
headings in this Amendment are included herein for convenience of reference only
and shall not constitute a part of this Amendment for any other
purpose.

       

      9.           Counterparts;
Facsimile.  This Amendment may be executed by the parties
hereto in one or more counterparts, each of which shall be deemed an original
and all of which when taken together shall constitute one and the same
agreement.  Any signature delivered by a party by facsimile
transmission shall be deemed to be an original signature hereto.

       

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

       

      IN
WITNESS WHEREOF, this Amendment has been duly executed as of the day and year
first written above.

       

      
        	
                EMPIRE
      RESORTS, INC.

              
	 
      	 
      
	 
      	 
      
	
                By:

              	
                
                  /s/
      Joseph Bernstein

                

              
	
                Name:

              	
                Joseph
      Bernstein

              
	
                Title:

              	
                Chief
      Executive Officer

              
	 
      	 
      
	 
      	 
      
	
                THE
      PARK AVENUE BANK, as Agent and Bank

              
	 
      	 
      
	 
      	 
      
	
                By:

              	
                
                  /s/
      Donald G. Glascoff, Jr.

                

              
	
                Name:

              	
                Donald
      G. Glascoff, Jr.

              
	
                Title:

              	
                Chairman

              

      

      

      

      
        	
                CONSENTED
      AND AGREED TO:

              
	 
      	 
      
	 
      	 
      
	
                ALPHA
      MONTICELLO, INC.

              
	 
      	 
      
	 
      	 
      
	
                By:

              	
                
                  /s/
      Joseph Bernstein

                

              
	
                Name:

              	
                Joseph
      Bernstein

              
	
                Title:

              	
                President

              
	 
      	 
      
	 
      	 
      
	
                ALPHA
      CASINO MANAGEMENT INC.

              
	 
      	 
      
	 
      	 
      
	
                By:

              	
                
                  /s/
      Joseph Bernstein

                

              
	
                Name:

              	
                Joseph
      Bernstein

              
	
                Title:

              	
                President

              
	 
      	 
      
	 
      	 
      
	
                MOHAWK
      MANAGEMENT, LLC

              
	 
      	 
      
	 
      	 
      
	
                By:

              	
                
                  /s/
      Joseph Bernstein

                

              
	
                Name:

              	
                Joseph
      Bernstein

              
	
                Title:

              	
                Authorized
      Signatory

              

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      
        	
                MONTICELLO
      CASINO MANAGEMENT, LLC

              
	 
      	 
      
	 
      	 
      
	
                By:

              	
                
                  /s/
      Joseph Bernstein

                

              
	
                Name:

              	
                Joseph
      Bernstein

              
	
                Title:

              	
                Authorized
      Signatory

              
	 
      	 
      
	 
      	 
      
	
                MONTICELLO
      RACEWAY DEVELOPMENT

              
	
                COMPANY,
      LLC

              
	 
      	 
      
	 
      	 
      
	
                By:

              	
                
                  /s/
      Joseph Bernstein

                

              
	
                Name:

              	
                Joseph
      Bernstein

              
	
                Title:

              	
                Authorized
      Signatory

              
	 
      	 
      
	 
      	 
      
	
                MONTICELLO
      RACEWAY MANAGEMENT, INC.

              
	 
      	 
      
	 
      	 
      
	
                By:

              	
                
                  /s/
      Clifford Ehrlich

                

              
	
                Name:

              	
                Clifford
      Ehrlich

              
	
                Title:

              	
                President
      and General Managerexv4w12

Exhibit 4.12

VOID AFTER 5 P.M. EASTERN STANDARD TIME ON DECEMBER 31, 2014

CLASS H WARRANTS TO PURCHASE COMMON STOCK

			
	 	 	 
	WH - ___
	 	                     Warrants

CONVERTED ORGANICS INC.

CUSIP                     

THIS CERTIFIES THAT                                                                                                                                             
or its registered assigns, is the registered holder of the number of Class H Warrants
(“Warrants”) set forth above. Each Warrant entitles the holder thereof to purchase from Converted
Organics Inc., a corporation incorporated under the laws of the State of Delaware (the “Company”),
subject to the terms and conditions set forth hereinafter and in the Warrant Agreement, hereinafter
more fully described (the “Warrant Agreement”), at any time
on or after                     , 200___ [60
DAYS FROM THE DATE OF ISSUANCE] and before the close of business on October ___, 2014 (“Expiration
Date”), one fully paid and non-assessable share of Common Stock of the Company (“Common Stock”)
upon presentation and surrender of this Warrant Certificate, with the instructions for the
registration and delivery of Common Stock filled in, at the stock transfer office in Canton,
Massachusetts, of Computershare Trust Company, Inc., Warrant Agent of the Company (“Warrant
Agent”), or of its successor warrant agent or, if there be no successor warrant agent, at the
corporate offices of the Company, and upon payment of the Exercise Price (as defined in the Warrant
Agreement) and any applicable taxes paid either in cash, or by certified or official bank check,
payable in lawful money of the United States of America to the order of the Company. Each Warrant
initially entitles the holder to purchase one share of Common Stock for $                    . The number and
kind of securities or other property for which the Warrants are exercisable are subject to
adjustment in certain events, such as mergers, splits, stock dividends and the like, to prevent
dilution. All Warrants not theretofore exercised will expire on the Expiration Date.

This Warrant Certificate is subject to all of the terms, provisions and conditions of the
Warrant Agreement, dated as of October ___, 2009, between the Company and the Warrant Agent, to
all of which terms, provisions and conditions the
registered holder of this Warrant Certificate consents by acceptance hereof. The Warrant
Agreement is incorporated herein by reference and made a part hereof and reference is made to the
Warrant Agreement for a full description of the rights, limitations of rights, obligations, duties
and immunities of the Warrant Agent, the Company and the holders of the Warrant Certificates.
Copies of the Warrant Agreement are available for inspection at the stock transfer office of the
Warrant Agent or may be obtained upon written request addressed to the Company at Converted
Organics Inc., 7A Commercial Wharf West, Boston, Massachusetts 02110, Attention: Corporate
Secretary.

 

 

The Company shall not be required upon the exercise of the Warrants evidenced by this Warrant
Certificate to issue fractions of Warrants, Common Stock or other securities, but shall round such
fraction as provided in the Warrant Agreement. In certain cases, the sale of securities by the
Company upon exercise of Warrants would violate the securities laws of the United States, certain
states thereof or other jurisdictions. The Company will use commercially reasonable efforts to
cause a registration statement to continue to be effective during the term of the Warrants with
respect to such sales under the Securities Act of 1933, and to take such action under the laws of
various states as may be required to cause the sale of securities upon exercise to be lawful.
However, the Company will not be required to honor the exercise of Warrants if, in the opinion of
the Board of Directors, upon advice of counsel, the sale of securities upon such exercise would be
unlawful. This Warrant Certificate, with or without other Certificates, upon surrender to the
Warrant Agent, any successor warrant agent or, in the absence of any successor warrant agent, at
the corporate offices of the Company, may be exchanged for another Warrant Certificate or
Certificates evidencing in the aggregate the same number of Warrants as the Warrant Certificate or
Certificates so surrendered. If the Warrants evidenced by this Warrant Certificate shall be
exercised in part, the holder hereof shall be entitled to receive upon surrender hereof another
Warrant Certificate or Certificates evidencing the number of Warrants not so exercised. No holder
of this Warrant Certificate, as such, shall be entitled to vote, receive dividends or be deemed the
holder of Common Stock or any other securities of the Company which may at any time be issuable on
the exercise hereof for any purpose whatever, nor shall anything contained in the Warrant Agreement
or herein be construed to confer upon the holder of this Warrant Certificate, as such, any of the
rights of a stockholder of the Company or any right to vote for the election of directors or upon
any matter submitted to stockholders at any meeting thereof or give or withhold consent to any
corporate action (whether upon any matter submitted to stockholders at any meeting thereof, or give
or withhold consent to any merger, recapitalization, issuance of stock, reclassification of stock,
change of par value or change of stock to no par value, consolidation, conveyance or otherwise) or
to receive notice of meetings or other actions affecting stockholders (except as provided in the
Warrant Agreement) or to receive dividends or subscription rights or otherwise until the Warrants
evidenced by this Warrant Certificate shall have been exercised and the Common Stock purchasable
upon the exercise thereof shall have become deliverable as provided in the Warrant Agreement.

If this Warrant Certificate shall be surrendered for exercise within any period during which
the transfer books for the Company’s Common Stock or other class of stock purchasable upon the
exercise of the Warrants evidenced by this Warrant Certificate are closed for any purpose, the
Company shall not be required to make delivery of certificates for shares purchasable upon such
transfer until the date of the reopening of said transfer books.

Every holder of this Warrant Certificate by accepting the same consents and agrees with the
Company, the Warrant Agent, and with every other holder of a Warrant Certificate that:

          (a) this Warrant Certificate is transferable on the registry books of the Warrant Agent only
upon the terms and conditions set forth in the Warrant Agreement, and

          (b) the Company and the Warrant Agent may deem and treat the person in whose name this Warrant
Certificate is registered as the absolute owner hereof (notwithstanding any notation

2

 

of ownership
or other writing thereon made by anyone other than the Company or the Warrant Agent) for all
purposes whatsoever and neither the Company nor the Warrant Agent shall be affected by any notice
to the contrary. The Company shall not be required to issue or deliver any certificate for shares
of Common Stock or other securities upon the exercise of Warrants evidenced by this Warrant
Certificate until any tax which may be payable in respect thereof by the holder of this Warrant
Certificate pursuant to the Warrant Agreement shall have been paid, such tax being payable by the
holder of this Warrant Certificate at the time of surrender.

This Warrant Certificate shall not be valid or obligatory for any purpose until it shall have
been countersigned by the Warrant Agent.

(Remainder of page intentionally left blank; signature page follows)

3

 

          WITNESS the facsimile signatures of the proper officers of the Company and
its corporate seal.

Dated:                     

	 	 	 	 	 	 	 
	 	 	CONVERTED ORGANICS INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Title:
	 	President and Chief Executive Officer	 	 
	 
	 	 	 	 	 	 
	 

	 	Attest:	 	 	 	 
	 

	 	 	 	 

Secretary
	 	 

Countersigned:

	 	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

Authorized Officer
	 	 

4

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