Document:

sttk_ex102.htm

EXHIBIT 10.2

 

AMENDMENT, WAIVER AND EXCHANGE AGREEMENT

 

This Amendment, Waiver and Exchange Agreement (the “Agreement”), dated as of October 31, 2013, is by and between StreamTrack, Inc., a Wyoming corporation with offices located at 347 Chapala Street, Santa Barbara CA 93101 (the “Company”), and the holder identified on the signature page hereto (“Holder”).

 

R E C I T A L S

 

A.           Prior to the date hereof, the Company owes to the Holder certain unpaid compensation in an amount equal to or in excess of $100,000;

 

B.           The Company and the Holder desire to enter into this Agreement, pursuant to which, among other things the Company and the Holder shall exchange (x) the right to receive $100,000 worth of unpaid compensation owed by the Company to the Holder (the “Unpaid Compensation”) for (y) 100,000 shares of the Company’s Series B Preferred Stock (the “Preferred Shares”);

 

C.           Concurrently with the transactions contemplated hereby, Investors (other than the Holder) (the “Other Holders”), which, together with the Holder, will own at least 51% of the aggregate amount of voting shares of the Company, are executing agreements identical to this Agreement (the “Other Agreements”, and together with this Agreement, the “Agreements”).

 

D.           The Unpaid Compensation will be exchanged for the Preferred Shares in an exchange made in reliance upon the exemption from registration provided by Section 3(a)(9) of the Securities Act.

 

A G R E E M E N T

 

1.             Waivers; Exchange. On the Closing Date (as defined below), the Holder shall, and the Company shall, pursuant to Section 3(a)(9) of the Securities Act, exchange (a) the Preferred Shares for the Unpaid Compensation (collectively, the “Exchange”). On or prior to the Closing (as defined below), the following transactions shall occur:

 

1.1   Delivery. On the Closing Date, (a) the Company shall deliver the Preferred Shares to the Holder and (b) the Unpaid Compensation shall no longer be due and owed by the Company to the Holder and such debt shall be extinguished. The Preferred Shares shall be issued in accordance with the instructions set forth on the signature page of the Holder.

 

1.2   Other Documents. The Company and the Holder shall execute and/or deliver such other documents and agreements as are customary and reasonably necessary to effectuate the Amendment and the Exchange.

 

1.3   No Additional Consideration. The parties acknowledge and agree that the Preferred Shares shall be issued to the Holder in exchange for the Unpaid Compensation without the payment of any additional consideration.

 

  

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1.4   Closing. Upon confirmation that the Holder and the Other Holders shall have executed the Agreements and satisfaction of the conditions of this Section 1, the closing of the Exchange (the “Closing”) shall occur on October 31, 2013 or such other date as is mutually acceptable to the Holder and the Company (the “Closing Date”).

 

1.5   Unpaid Compensation Waiver.

 

(a)   Effective as of the Closing, the Holder hereby irrevocably waives any right to the Unpaid Compensation and releases and forever discharges the Company, from any and all manner of actions, suits, debts, sums of money, contracts, agreements, claims and demands at law or in equity, that Lender had, or may have arising from the Unpaid Compensation.

 

2.             REPRESENTATIONS AND WARRANTIES OF THE HOLDER.

 

2.1   The Holder is acquiring the Preferred Shares for Lender’s own account as principal, for investment purposes only, and not with a view to, or for, resale, distribution or fractionalization thereof, in whole or in part, and no other person has a direct or indirect beneficial interest in such Preferred Shares.

 

2.2   The Lender acknowledges its understanding that the issuance of the Preferred Shares is intended to be exempt from registration under the Act by virtue of Section 3(a)(9) of the Securities Act.

 

2.3   The Holder has not transferred or assigned an interest in the Unpaid Compensation to any third party.

 

2.4   The foregoing representations, warranties and agreements shall survive the delivery of the Preferred Shares under this Agreement.

 

3.             REPRESENTATION AND WARRANTIES OF THE COMPANY.

 

3.1   The Company has been duly organized, validly exists and is in good standing under the laws of the State of Wyoming. The Company has full corporate power and authority to enter into this Agreement and this Agreement has been duly and validly authorized, executed and delivered by the Company and is a valid and binding obligation of the Company, enforceable against the Company in accordance with its terms, except as such enforcement may be limited by laws effecting creditors’ rights, generally.

 

3.2   The execution and delivery by the Company of, and the performance by the Company of its obligations under this Agreement in accordance with the terms of this Agreement will not contravene any provision of applicable law or the charter documents of the Company or any agreement or other instrument binding upon the Company, or any judgment, order or decree of any governmental body, agency or court having jurisdiction over the Company, and no consent, approval, authorization or order of, or qualification with, any governmental body or agency is required for the performance by the Company of its obligations under this Agreement in accordance with the terms of this Agreement.

 

  

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3.3   The foregoing representations, warranties and agreements shall survive the delivery of the Preferred Shares under this Agreement.

 

4.             MISCELLANEOUS.

 

4.1   Modification.  Neither this Agreement nor any provisions hereof shall be modified, discharged or terminated except by an instrument in writing signed by the party against whom any waiver, change, discharge or termination is sought.

 

4.2   Notices. Any notice, demand or other communication which any party hereto may be required, or may elect, to give to anyone interested hereunder shall be sufficiently given if (a) deposited, postage prepaid, in a United States mail letter box, registered or certified mail, return receipt requested, ad­dressed to such address as may be given herein, or (b) delivered personally at such address.

 

4.3   Counterparts.  This Agreement may be executed through the use of separate signature pages or in any number of counterparts, and each of such counterparts shall, for all purposes, constitute one agreement binding on all the parties, notwith­standing that all parties are not signatories to the same coun­terpart.

 

4.4   Binding Effect. Except as otherwise provided herein, this Agreement shall be binding upon and inure to the benefit of the parties and their heirs, executors, administrators, successors, legal representatives and assigns. If the undersigned is more than one person, the obligation of the Investor shall be joint and several, and the agreements, representations, warranties and acknowledgments herein contained shall be deemed to be made by and be binding upon each such person and his heirs, executors, administrators and successors.

 

4.5   Entire Agreement; Third Party Beneficiary. This instrument contains the entire agreement of the parties, and there are no representations, covenants or other agreements except as stated or referred to herein.

 

4.6   Applicable Law. This Agreement shall be governed and construed under the laws of the State of New York.

 

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

 

	 	
COMPANY:

	 
	 	 	 
	 	StreamTrack, Inc.	 
	 	 	 	 
	
 

	
By: 

	
/s/ Michael Hill

	 
	 	Name:	Michael Hill	 
	 	Title: 	Chief Executive Officer	 

 

  

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

 

	 	
HOLDER:

	 
	 	 	 
	 	AARON GRAVITZ	 
	 	 	 	 
	
 

	
By: 

	
/s/ Aaron Gravitz

	  
	 	 	 	 
	 	 	
 

	 

 

 

 

5Exhibit for Amendment No. 4 to Loan Agreement

 
AMENDMENT NO. 4
TO
LOAN AGREEMENT
THIS AMENDMENT NO. 4 TO LOAN AGREEMENT (this “Amendment”) is entered into as of October 25, 2013, by and among SQUARETWO FINANCIAL CORPORATION, a Delaware corporation (in its individual capacity, “US Borrower”), and as borrowing agent (in such capacity, “Borrowing Agent”), PREFERRED CREDIT RESOURCES LIMITED, an Ontario corporation (“Canadian Borrower”) (US Borrower and Canadian Borrower are sometimes collectively referred to herein as “Borrowers” and individually as a “Borrower”), the other persons designated as “Loan Parties”, certain of the Lenders party to the Loan Agreement (as defined below), and ALLY COMMERCIAL FINANCE LLC (formerly known as GMAC Commercial Finance LLC), a Delaware limited liability company (in its individual capacity, “Ally”), as administrative and collateral agent (in such capacity, “Agent”) and as funding and disbursement agent with respect to the Canadian Revolving Loans (in such capacity, “Canadian Agent”).
BACKGROUND
WHEREAS, Borrowers, Agent, Canadian Agent, and Lenders are parties to a Loan Agreement dated as of April 7, 2010 (as amended, restated, supplemented or otherwise modified from time to time, the “Loan Agreement”) pursuant to which Agent and Lenders provide Borrowers with certain financial accommodations;
WHEREAS, Borrowing Agent has requested that Agent, Canadian Agent, and Requisite Lenders make certain amendments to the Loan Agreement, and Agent, Canadian Agent, and the Requisite Lenders party hereto are willing to amend the Loan Agreement 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 Borrowers by Agent, Canadian Agent,  and Lenders, 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 3 below, the Loan Agreement is hereby amended as follows:
(a)Section 1.1 of the Loan Agreement is hereby amended by adding the following definition in its appropriate alphabetical order:
“Fourth Amendment Effective Date” means October 25, 2013, which was the effective date of Amendment No. 4 to Loan Agreement, dated as of  October 25, 2013 by and among the Loan Parties, Agent, Canadian Agent, and certain of the Lenders party thereto. 
(b)Section 2.16(A) of the Loan Agreement is hereby amended by deleting the dollar amount “$65,000,000” appearing therein and inserting the dollar amount “$115,000,000” in lieu thereof. For the avoidance of doubt, the parties hereto agree and confirm that $65,000,000 of such 

$115,000,000 has already been utilized as a US Borrower Revolver Increase under such Section 2.16(A), and that as of the Fourth Amendment Effective Date, the maximum aggregate amount of US Borrower Revolver Increase shall be $50,000,000.
(c)Section 2.16(B) of the Loan Agreement is hereby amended by:
(i)deleting the reference to “and” at the end of clause (5);
(ii)deleting the period at the end of clause (6) and by substituting, in lieu thereof, “; and”; and
(iii)inserting the following new clause (7) immediately following clause (6):
“(7)    a calculation certified by Borrowing Agent as being a true and correct valuation of the then applicable Maximum Senior Amount (as defined in the Intercreditor Agreement), which shall confirm, in form and substance reasonably satisfactory to Agent, that the Maximum Senior Amount exceeds $265,000,000.”
3.Conditions of Effectiveness.  This Amendment shall become effective on the date that Agent shall have received eight (8) copies of this Amendment executed by Borrowing Agent, Agent and the Requisite Lenders, and consented and agreed to by Borrowers and Guarantors.
4.Representations and Warranties.  Each Loan Party hereby represents and warrants as follows:
(a)This Amendment and the Loan Agreement, as amended hereby, constitute legal, valid and binding obligations of each Loan Party and are enforceable against each Loan Party in accordance with their respective terms.
(b)Upon the effectiveness of this Amendment, each Loan Party hereby reaffirms all covenants, representations and warranties made in the Loan Agreement to the extent the same are not amended hereby and agree that all such covenants, representations and warranties shall be deemed to have been remade as of the effective date of this Amendment.
(c)No Event of Default or Default has occurred and is continuing or would exist after giving effect to this Amendment.
(d)No Loan Party has any defense, counterclaim or offset with respect to the Loan Agreement.
5.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 operate as a waiver of any right, power or remedy of Agent or Lenders, 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.
6.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.
7.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.
8.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.
[Remainder of page intentionally left blank; signature pages to follow]

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

SQUARETWO FINANCIAL CORPORATION, as Borrowing Agent

	
		
	By:
	/s/ Paul A. Larkins

	Name:
	Paul A. Larkins

	Title:
	President and CEO

Agent:

ALLY COMMERCIAL FINANCE LLC (formerly known as GMAC Commercial Finance LLC), as Agent and Canadian Agent

	
		
	By:
	/s/ Thomas Maiale

	Name:
	Thomas Maiale

	Title:
	Senior Director

Lenders: 

ALLY COMMERCIAL FINANCE LLC (formerly known as GMAC Commercial Finance LLC), as a Lender 

	
		
	By:
	/s/ Thomas Maiale

	Name:
	Thomas Maiale

	Title:
	Senior Director

 BANK OF AMERICA, N.A., as a Lender

	
		
	By:
	/s/ Laura Warner

	Name:
	Laura Warner

	Title:
	Director

ING CAPITAL LLC, as a Lender

	
		
	By:
	/s/ John Lanier

	Name:
	John Lanier

	Title:
	Director

U.S. BANK NATIONAL ASSOCIATION, as a Lender

	
		
	By:
	/s/ Chris Gibson

	Name:
	Chris Gibson

	Title:
	Vice President

FIFTH THIRD BANK, as a Lender

	
		
	By:
	/s/ Gregory J Vollmer

	Name:
	Gregory J Vollmer

	Title:
	Vice President

SIEMENS FINANCIAL SERVICES, INC., as a Lender

	
		
	By:
	/s/ Maria Levy

	Name:
	Maria Levy

	Title:
	Vice President

	
		
	By:
	/s/ Michael Zion

	Name:
	Michael Zion

	Title:
	Vice President

FIRSTMERIT BANK, as a Lender

	
		
	By:
	/s/ Laura C Redinger

	Name:
	Laura C Redinger

	Title:
	Vice President

Acknowledged, agreed and consented to by:

SQUARETWO FINANCIAL CORPORATION, 
as US Borrower and as a US Guarantor

	
		
	By:
	/s/ Paul A. Larkins

	Name:
	Paul A. Larkins

	Title:
	President and CEO

CACH, LLC
CACH OF NJ, LLC
COLLECT AMERICA OF CANADA LLC
CACV OF COLORADO, LLC
CACV OF NEW JERSEY, LLC
HEALTHCARE FUNDING SOLUTIONS, LLC
ORSA, LLC
CANDEO, LLC
AUTUS, LLC, each as a US Guarantor

	
		
	By:
	/s/ Paul A. Larkins

	Name:
	Paul A. Larkins

	Title:
	Manager

REFINANCE AMERICA, LTD., as a US Guarantor

	
		
	By:
	/s/ Thomas Good

	Name:
	Thomas Good

	Title:
	Secretary

METROPOLITAN LEGAL ADMINISTRATION SERVICES INC., 
as a Canadian Guarantor

	
		
	By:
	/s/ Christopher Walker

	Name:
	Christopher Walker

	Title:
	President

PREFERRED CREDIT RESOURCES LIMITED, 
as Canadian Borrower and as a Canadian Guarantor

	
		
	By:
	/s/ Christopher Walker

	Name:
	Christopher Walker

	Title:
	President

CA HOLDING, INC., as a US Guarantor

	
		
	By:
	/s/ Paul A. Larkins

	Name:
	Paul A. Larkins

	Title:
	President and CEO

CCL FINANCIAL INC., as a Canadian Guarantor

	
		
	By:
	/s/ Christopher Walker

	Name:
	Christopher Walker

	Title:
	President

SQUARE TWO FINANCIAL CANADA CORPORATION, 
as a Canadian Guarantor

	
		
	By:
	/s/ Christopher Walker

	Name:
	Christopher Walker

	Title:
	President

SQUARETWO FINANCIAL COMMERCIAL FUNDING 
CORPORATION, as a US Guarantor

	
		
	By:
	/s/ Paul A. Larkins

	Name:
	Paul A. Larkins

	Title:
	President and CEO

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