Document:

Ex-10.1 Form of Restricted Share Award Agreement

 

EXHIBIT 10.1

HEALTHSPRING, INC.

RESTRICTED SHARE AWARD AGREEMENT

(Officers and Employees)

     THIS RESTRICTED SHARE AWARD AGREEMENT (this “Agreement”) is made and entered into to be
effective as of the ___th day of                     , 2008 (the “Grant Date”), between HealthSpring,
Inc., a Delaware corporation (the “Company”), and                                        , (the “Grantee”). Capitalized
terms not otherwise defined herein shall have the meaning ascribed to such terms in the
HealthSpring, Inc. 2006 Equity Incentive Plan (the “Plan”).

     WHEREAS, the Company has adopted the Plan, which permits the issuance of restricted shares of
the Company’s common stock, par value $0.01 per share (the “Common Stock”); and

     WHEREAS, pursuant to the Plan, the Committee responsible for administering the Plan has
granted an award of restricted shares to the Grantee as provided herein;

     NOW, THEREFORE, in consideration of the mutual covenants hereinafter set forth and for other
good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the
parties hereto, intending to be legally bound hereby, agree as follows:

     1. Grant of Restricted Shares.

          (a) The Company hereby grants to the Grantee an award (the “Award”) of                      shares
of Common Stock of the Company (the “Shares” or the “Restricted Shares”) on the terms and
conditions set forth in this Agreement and as otherwise provided in the Plan.

          (b) The Grantee’s rights with respect to the Award shall remain forfeitable at all times prior
to the dates on which the restrictions shall lapse in accordance with Sections 2 and
3 hereof.

     2. Terms and Rights as a Stockholder.

          (a) Except as provided herein and subject to such other exceptions as may be determined by the
Committee in its discretion, the “Restricted Period” shall expire                                                                                                                                             .

          (b) The Grantee shall have all rights of a stockholder with respect to the Restricted Shares,
including the right to receive dividends and the right to vote such Shares, subject to the
following restrictions:

               (i) the Grantee shall not be entitled to delivery of the stock certificate for any Shares
until the expiration of the Restricted Period as to such Shares;

 

 

               (ii) none of the Restricted Shares may be sold, assigned, transferred, pledged, hypothecated
or otherwise encumbered or disposed of during the Restricted Period as to such Shares; and

               (iii) except as otherwise determined by the Committee at or after the grant of the Award
hereunder, any Restricted Shares as to which the applicable “Restricted Period” has not expired
shall be forfeited, and all rights of the Grantee to such Shares shall terminate, without further
obligation on the part of the Company, unless the Grantee remains in the continuous employment of
the Company, a Subsidiary or Affiliate for the entire Restricted Period.

          (c) Notwithstanding the foregoing, the Restricted Period shall automatically terminate as to
all Restricted Shares awarded hereunder (as to which such Restricted Period has not previously
terminated):

               (i) upon the termination of the Grantee’s employment from the Company, a Subsidiary or
Affiliate that results from the Grantee’s death or Disability (as determined in the sole discretion
of the Committee); or

               (ii) in the event that, within one year following a Change in Control, Grantee’s employment
with the Company (or its successor), a Subsidiary or Affiliate is terminated by (I) Grantee for
Good Reason (as defined below), or (II) the Company for any reason other than for Cause. For
purposes of this Agreement, “Good Reason” means (A) a material reduction in Grantee’s
responsibilities, which is not cured within 20 days after written notice thereof to the Company (or
its successor); (B) any reduction in Grantee’s annual base salary as in effect immediately prior to
a Change in Control; or (C) the relocation by the Company of the office at which the Grantee is to
perform the majority of his or her duties following a Change in Control to a location more than 45
miles from the office at which the Grantee worked immediately prior to the Change in Control.

     Any Shares, any other securities of the Company and any other property (except for cash
dividends) distributed with respect to the Restricted Shares shall be subject to the same
restrictions, terms and conditions as such Restricted Shares.

     3. Termination of Restrictions. Following the termination of the Restricted Period,
all restrictions set forth in this Agreement or in the Plan relating to such portion or all, as
applicable, of the Restricted Shares shall lapse as to such portion or all, as applicable, of the
Restricted Shares, and a stock certificate for the appropriate number of Shares, free of the
restrictions and restrictive stock legend, shall, upon request, be delivered to the Grantee or the
Grantee’s beneficiary or estate, as the case may be, pursuant to the terms of this Agreement.

     4. Delivery of Shares.

          (a) As of the date hereof, certificates representing the Restricted Shares shall be registered
in the name of the Grantee and held by the Company or transferred to a custodian appointed by the
Company for the account of the Grantee subject to the terms and conditions of

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the Plan and shall remain in the custody of the Company or such custodian until their delivery
to the Grantee or Grantee’s beneficiary or estate as set forth in Sections 4(b) and
(c) hereof or their reversion to the Company as set forth in Section 2(b) hereof.

          (b) Certificates representing Restricted Shares in respect of which the Restricted Period has
lapsed pursuant to this Agreement shall be delivered to the Grantee upon request following the date
on which the restrictions on such Restricted Shares lapse.

          (c) Certificates representing Restricted Shares in respect of which the Restricted Period
lapsed upon the Grantee’s death shall be delivered to the executors or administrators of the
Grantee’s estate as soon as practicable following the receipt of proof of the Grantee’s death
satisfactory to the Company.

          (d) Each certificate representing Restricted Shares shall bear a legend in substantially the
following form or substance:

THE SHARES OF STOCK REPRESENTED BY THIS CERTIFICATE MAY NOT BE SOLD, TRANSFERRED,
PLEDGED OR OTHERWISE DISPOSED OF WITHOUT REGISTRATION UNDER THE SECURITES ACT OF
1933 AND UNDER APPLICABLE BLUE SKY LAW OR UNLESS SUCH SALE, TRANSFER, PLEDGE OR
OTHER DISPOSITION IS EXEMPT FROM REGISTRATION THEREUNDER.

THIS CERTIFICATE AND THE SHARES OF STOCK REPRESENTED HEREBY ARE SUBJECT TO THE TERMS
AND CONDITIONS (INCLUDING FORFEITURE AND RESTRICTIONS AGAINST TRANSFER) CONTAINED IN
THE HEALTHSPRING, INC. 2006 EQUITY INCENTIVE PLAN (THE “PLAN”) AND THE RESTRICTED
SHARE AWARD AGREEMENT (THE “AGREEMENT”) BETWEEN THE OWNER OF THE RESTRICTED SHARES
REPRESENTED HEREBY AND HEALTHSPRING, INC. (THE “COMPANY”). THE RELEASE OF SUCH
SHARES FROM SUCH TERMS AND CONDITIONS SHALL BE MADE ONLY IN ACCORDANCE WITH THE
PROVISIONS OF THE PLAN AND THE AGREEMENT AND ALL OTHER APPLICABLE POLICIES AND
PROCEDURES OF THE COMPANY, COPIES OF WHICH ARE ON FILE AT THE COMPANY.

     5. Effect of Lapse of Restrictions. To the extent that the Restricted Period
applicable to any Restricted Shares shall have lapsed, the Grantee may receive, hold, sell or
otherwise dispose of such Shares free and clear of the restrictions imposed under the Plan and this
Agreement upon compliance with applicable legal requirements.

     6. No Right to Continued Employment. This Agreement shall not be construed as giving
Grantee the right to be retained in the employ of the Company or any Subsidiary or Affiliate, and
the Company or any Subsidiary or Affiliate may at any time dismiss Grantee from employment, free
from any liability or any claim under the Plan.

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     7. Adjustments. The Committee shall make equitable and proportionate adjustments in
the terms and conditions of, and the criteria included in, this Award in recognition of unusual or
nonrecurring events (including, without limitation, the events described in Section 4.2 of the
Plan) affecting the Company or the financial statements of the Company or of changes in applicable
laws, regulations, or accounting principals in accordance with the Plan.

     8. Amendment to Award. Subject to the restrictions contained in the Plan, the
Committee may waive any conditions or rights under, amend any terms of, or alter, suspend,
discontinue, cancel or terminate the Award, prospectively or retroactively; provided that any such
waiver, amendment, alteration, suspension, discontinuance, cancellation or termination that would
adversely affect the rights of the Grantee or any holder or beneficiary of the Award shall not to
that extent be effective without the consent of the Grantee, holder or beneficiary affected.

     9. Withholding of Taxes. If the Grantee makes an election under Section 83(b) of the
Code with respect to the Award, the Award made pursuant to this Agreement shall be conditioned upon
the prompt payment to the Company of any applicable withholding obligations or withholding taxes by
the Grantee (“Withholding Taxes”). Failure by the Grantee to pay such Withholding Taxes will
render this Agreement and the Award granted hereunder null and void ab initio and the Restricted
Shares granted hereunder will be immediately cancelled. If the Grantee does not make an election
under Section 83(b) of the Code with respect to the Award, upon the lapse of the Restricted Period
with respect to any portion of Restricted Shares (or property distributed with respect thereto),
the Company shall satisfy the required Withholding Taxes as set forth by Internal Revenue Service
guidelines for the employer’s minimum statutory withholding with respect to Grantee and issue
vested shares to the Grantee without restriction. The Company shall satisfy the required
Withholding Taxes by withholding from the Shares included in the Award that number of whole shares
necessary to satisfy such taxes as of the date the restrictions lapse with respect to such Shares
based on the Fair Market Value of the Shares.

     10. Plan Governs. The Grantee hereby acknowledges receipt of a copy of the Plan and
agrees to be bound by all the terms and provisions thereof. The terms of this Agreement are
governed by the terms of the Plan, and in the case of any inconsistency between the terms of this
Agreement and the terms of the Plan, the terms of the Plan shall govern.

     11. Severability. If any provision of this Agreement is, or becomes, or is deemed to
be invalid, illegal, or unenforceable in any jurisdiction or as to any Person or the Award, or
would disqualify the Plan or Award under any laws deemed applicable by the Committee, such
provision shall be construed or deemed amended to conform to the applicable laws, or if it cannot
be construed or deemed amended without, in the determination of the Committee, materially altering
the intent of the Plan or the Award, such provision shall be stricken as to such jurisdiction,
Person or Award, and the remainder of the Plan and Award shall remain in full force and effect.

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     12. Notices. All notices required to be given under this Grant shall be deemed to be
received if delivered or mailed as provided for herein, to the parties at the following addresses,
or to such other address as either party may provide in writing from time to time.

	 	 	 	 	 
	 

	 	To the Company:
	 	HealthSpring, Inc.
	 

	 	 	 	9009 Carothers Parkway
	 

	 	 	 	Suite 501
	 

	 	 	 	Franklin, Tennessee 37067
	 

	 	 	 	Attn: Corporate Secretary
	 
	 	 	 	 
	 

	 	To the Grantee:
	 	The address then maintained with respect to the Grantee in the
Company’s records.

     13. Governing Law. The validity, construction and effect of this Agreement shall be
determined in accordance with the laws of the State of Delaware without giving effect to conflicts
of laws principles.

     14. Successors in Interest. This Agreement shall inure to the benefit of and be
binding upon any successor to the Company. This Agreement shall inure to the benefit of the
Grantee’s legal representatives. All obligations imposed upon the Grantee and all rights granted
to the Company under this Agreement shall be binding upon the Grantee’s heirs, executors,
administrators and successors.

     15. Resolution of Disputes. Any dispute or disagreement which may arise under, or as
a result of, or in any way related to, the interpretation, construction or application of this
Agreement shall be determined by the Committee. Any determination made hereunder shall be final,
binding and conclusive on the Grantee and the Company for all purposes.

(remainder of page left blank intentionally)

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     IN WITNESS WHEREOF, the parties have caused this Restricted Share Award Agreement to be duly
executed effective as of the day and year first above written.

	 	 	 	 	 
	 	 	HEALTHSPRING, INC.
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 

	 
	 	 	 	 
	 

	 	GRANTEE:	 	 
	 

	 	 	 	 

6EX-10.1 First Amendment to the Term Loan Agreement

 

Exhibit 10.1

FIRST AMENDMENT

TO

TERM LOAN AGREEMENT

     FIRST
AMENDMENT (this “Amendment”) dated as of
April 29, 2008 (the “First
Amendment Closing Date”) and effective as of January 31, 2008 to the Term Loan Agreement dated
as of December 28, 2007 (the “Term Loan Agreement”), among (a) SALTON, INC., a Delaware
corporation (the “Parent”), and the borrowing subsidiaries of the Parent party thereto
(together with the Parent, the “Borrowers”), and APPLICA ASIA LIMITED, a Hong Kong company
(“Applica Asia”), and APPLICA CANADA CORPORATION, a Nova Scotia company (“Applica
Canada”, together with Applica Asia, the “Guarantors”), (b) the lending institutions
from time to time party thereto (the “Lenders”) and (c) HARBINGER CAPITAL PARTNERS MASTER
FUND I, LTD., as collateral agent and administrative agent for the Lenders (the “Agent”).
Capitalized terms used herein without definition shall have the meanings assigned to such term in
the Term Loan Agreement.

     WHEREAS, the Borrowers, the Lenders and the Agent entered into the Term Loan Agreement
pursuant to which the Lenders made term loans in an aggregate principal amount of $110,000,000
(each, a “Loan” and, together, the “Term Loan”) to the Borrowers;

     WHEREAS, the Lenders have agreed to make additional loans to the Borrowers and the parties
have agreed to modify certain terms and conditions of the Term Loan Agreement as specifically set
forth on this Amendment; and

     NOW, THEREFORE, in consideration of the premises and the mutual covenants hereinafter
contained, and for other good and valuable consideration, the parties hereto agree as follows:

1. Amendment to Defined Terms. The following defined terms set forth in Annex A of the
Term Loan Agreement shall be deleted in their entirety and replaced with the following:

          “Applicable Margin” means, as of January 31, 2008,

               (i) with respect to Base Rate Loans, 7%; and

               (ii) with respect to LIBOR Loans, 8%.

          “Stated Termination Date” means December 27, 2012.

          “Term Loan” has the meaning specified in Section 1.1(b).

 

 

2. New Defined Terms. Annex A of the Term Loan Agreement is hereby amended by adding the
following defined terms in proper alphabetical order:

     “Base Rate Loan Interest Payment Date” as defined in Section 2.1(a).

     “Delayed Draw Term Loan” as defined in Section 1.1(b).

     “First Amendment” means the First Amendment to the Term Loan Agreement,
dated as of April 29, 2008, between the Agent, the Lenders and the Borrowers, which
amended this Agreement.

     “First Amendment Closing Date” as defined in the First Amendment to this
Agreement, dated April 29, 2008.

     “Initial New Term Loan” as defined in Section 1.1(b).

     “Interest Payment Date” means either of (i) a Base Rate Loan Interest
Payment Date, or (ii) a LIBOR Interest Payment Date.

     “Original Term Loan” as defined in Section 1.1(a).

     “Outstanding Principal Amount” means the original principal amount of the
Term Loan increased by any Principal Increase and reduced by any prepayment of
principal of the Term Loan.

     “PIK Option” as defined in Section 2.1(c).

     “Principal Increase” as defined in Section 2.1(b).

3. Amendment to Term Loan. Section 1.1 of the Term Loan Agreement shall be deleted in its
entirety and replaced with the following:

          1.1 Term Loan.

          (a) Original Term Loan. Subject to all of the terms and conditions of this Agreement,
each Lender severally, but not jointly, agrees to make a loan to Borrowers on the Closing Date, in
an amount not to exceed such Lender’s Pro Rata Share of the original principal amount of
$110,000,000 (each, a “Loan” and, together, the “Original Term Loan”).

          (b) Term Loan. Subject to all of the terms and conditions of this Agreement, each
Lender severally, but not jointly, agrees to (i) make an additional term loan on the First
Amendment Closing Date, in an amount not to exceed such Lender’s Pro Rata Share of the principal
amount of $15, 000, 000 (the “Initial New Term Loan”) to be used for the Borrowers’ general
corporate purposes, and (ii) make one or more term loans to the Borrowers on a delayed draw basis
at any time within twenty-four (24) months after the First Amendment Closing Date, in an aggregate
amount not to exceed such Lender’s Pro Rata Share of $15, 000,000 (the “Delayed Draw Term
Loan” and, together with the Initial New Term Loan and the Original Term
Loan, the “Term Loan”; provided, that any reference to the “Term Loan” in
Sections 1.2(a)

 

 

and 1.3 shall be solely to the Original Term Loan) for the Borrowers’ general corporate purposes.
Each Delayed Draw Term Loan shall be in a minimum amount of $5, 000,000. Amounts paid or prepaid
in respect of the Term Loan may not be reborrowed.

4. Amendment to Procedure for Term Loan. Section 1.2 of the Term Loan Agreement is hereby
amended by adding the following Sections 1.2(e), (f) and (g):

          1.2(e) Procedure for the Initial New Term Loan. The Initial New Term Loan shall be
made upon the Borrower Agent’s Notice of Borrowing delivered to the Agent, which must be received
by the Agent no later than 1:00 p.m. (New York time) on the First Amendment Closing Date,
specifying whether the loan is a Base Rate Loan or a LIBOR Loan, and if the loan is a LIBOR Loan,
the duration of the initial Interest Period for the LIBOR Loan (and if not specified, it shall be
deemed a request for an Interest Period of one month).

          1.2(f) Procedure for the Delayed Draw Term Loan. Each Delayed Draw Term Loan shall be
made upon the Borrower Agent’s Notice of Borrowing delivered to the Agent no later than 11:00a.m.
(New York time) three (3) Business Days prior to the requested funding date, specifying whether the
loan is a Base Rate Loan or a LIBOR Loan, and if the loan is a LIBOR Loan, the duration of the
initial Interest Period for the LIBOR Loan (and if not specified, it shall be deemed a request for
an Interest Period of one month).

          1.2(g) Conditions Precedent to Making of the Initial New Term Loan and the Delayed Draw
Term Loan: The obligation of the Lenders to make the Initial New Term Loan and the Delayed
Draw Term Loan is subject to the following conditions precedent having been satisfied in a manner
satisfactory to the Agent and the Lenders:

          (i) all representations and warranties of the Borrowers contained in this Agreement and the
other Loan Documents being true and correct in all material respects without regard to any
qualification by “materiality”, “Material Adverse Effect” or words of similar import as of the date
of such borrowing; and

          (ii) No Event of Default shall exist or would exist as of the date of such borrowing.

5. Amendment to Making of Term Loan. Section 1.3 of the Term Loan Agreement is hereby
amended by adding the following Section 1.3(a) and 1.3(b):

          1.3(a) Making of Initial New Term Loan. Promptly after receipt of the Notice of
Borrowing on the First Amendment Closing Date, the Agent shall notify the Lenders by telecopy,
telephone or email of the requested Initial New Term Loan. Each Lender shall transfer its Pro Rata
Share of the Initial New Term Loan in immediately available funds, to the account from time to time
designated by Agent, no later than 2:00 p.m. (New York time) on the First Amendment Closing Date.
After the Agent’s receipt of all proceeds from such Initial New Term Loan, the Agent shall make the
proceeds of such Initial New Term Loan available to the Borrowers on the First Amendment Closing
Date by transferring same day funds as directed by the Borrowers.

 

 

          1.3(b) Making of Delayed Draw Term Loan. Promptly after receipt of the Notice of
Borrowing, the Agent shall notify the Lenders by telecopy, telephone or email of the requested
Delayed Draw Term Loan. Each Lender shall transfer its Pro Rata Share of the Delayed Draw Term
Loan in immediately available funds, to the account from time to time designated by Agent on the
requested borrowing date. After the Agent’s receipt of all proceeds from such Delayed Draw Term
Loan, the Agent shall make the proceeds of such Delayed Draw Term Loan available to the Borrowers
no later than 2:00 p.m. (New York time) on the requested borrowing date.

6. Amendments to Interest. Section 2.1 of the Term Loan Agreement shall be deleted in its
entirety and replaced with the following:

          2.1 Interest.

          (a) Interest Rates. The Term Loan shall bear interest on the unpaid principal amount
thereof (including, to the extent permitted by law, on interest thereon not paid when due) from the
date made until paid in full in cash at a rate determined by reference to the Base Rate or the
LIBOR Rate plus the Applicable Margin, but not to exceed the Maximum Rate. Any of the Loans may be
converted into, or continued as LIBOR Loans, subject to and in the manner provided in Section
2.2. If at any time Loans are outstanding with respect to which the Borrowers have not
delivered to the Agent a notice specifying the basis for determining the interest rate applicable
thereto, those Loans shall bear interest at a rate determined by reference to the Base Rate until
notice to the contrary has been given to the Agent in accordance with this Agreement and such
notice has become effective. Except as otherwise provided herein, the outstanding Obligations
shall bear interest as follows:

          (i) For all Base Rate Loans, at a fluctuating per annum rate equal
to the Base Rate plus the Applicable Margin; and

          (ii) For all LIBOR Loans, at a per annum rate equal to the LIBOR
Rate plus the Applicable Margin.

          Each change in the Base Rate shall be reflected in the interest rate applicable to Base Rate
Loans as of the effective date of such change. All interest charges shall be computed on the basis
of a year of 360 days and actual days elapsed (which results in more interest being paid than if
computed on the basis of a 365-day year). The Borrowers shall pay to the Agent, for the ratable
benefit of Lenders, interest accrued on all Base Rate Loans in arrears on the first day of each
month hereafter and on the Termination Date (each, “Base Rate Loan Interest Payment Date”).
The Borrowers shall pay to the Agent, for the ratable benefit of Lenders, interest on all LIBOR
Loans in arrears on each LIBOR Interest Payment Date. For the purposes of the Interest Act
(Canada), (i) whenever any interest or fee under this Agreement or any other Loan Document is
calculated using a rate based on a year of 360 days, the rate determined pursuant to each
calculation, when expressed as an annual rate, is equivalent to (x) the applicable rate, (y)
multiplied by the actual number of days in the calendar year in which the period for which such
interest is payable (or compounded) ends, and (z) divided by 360, (ii) the principle of deemed
reinvestment of interest does not apply to any interest calculation under this Agreement or any
other Loan Document, and (iii) the rates of interest stipulated in this Agreement or any

 

 

other Loan Document are intended to be nominal rates and not effective rates or yields.

          (b) Interest Payment. On each Interest Payment Date occurring after January 31, 2008
and through March 31, 2009, the Borrowers shall pay the interest due on such Interest Payment Date
by automatically having the Outstanding Principal Amount increase on such Interest Payment Date by
an amount equal to the interest due for such Interest Payment Date (each such increase, a
“Principal Increase”).

          (c) PIK Option. On each Interest Payment Date occurring after March 31, 2009, the
Borrowers shall pay the total amount of interest due on such Interest Payment Date in cash,
provided, that the Borrowers shall have the option (the “PIK Option”) to pay the
interest due on and with respect to such Interest Payment Date by automatically having the Outstanding Principal Amount
increase on such Interest Payment Date by an amount equal to the interest due for such Interest
Payment Date. In the event Borrowers so elect to exercise the
PIK Option, Borrowers shall provide written notice to the Agent at least three (3) Business Day
prior to the relevant Interest Payment Date of (i) their election to exercise the PIK Option and
(ii) the aggregate Outstanding Principal Amount after giving effect to the Principal Increase. In
the event an Interest Payment Date falls on the same date as the Stated Termination Date, the
entire amount of interest due on such date shall be paid in cash.

          (c) Default Rate. If an Event of Default occurs and is continuing and the Agent or
the Required Lenders in their discretion so elect, then, while any such Event of Default is
continuing, all of the Obligations shall bear interest at the Default Rate applicable thereto.

7. Amendment to Taxes. Section 4.1(a) of the Term Loan Agreement is hereby amended by
adding the following subsection 4.1(a)(v):

          4.1(a)(v) Any tax gross-up payments for withholding taxes under this Section 4.1 are
not applicable (i) with respect to the Base Rate Loans, any interest payments on the Term Loan
resulting from an interest rate in excess of the Base Rate plus 5.5%; and (ii) with respect to
LIBOR Loans, any interest payments on the Term Loan resulting from an interest rate in an excess of
the LIBOR Rate plus 6.5%.

8. Representations and Warranties. The Borrowers hereby represent and warrant to the Agent
and each Lender that, after giving effect to this Amendment, the representations and warranties set
forth in Article 6 of the Term Loan Agreement (General Warranties and Representations) are true and
correct in all material respects as of the date hereof (with the same effect as if made on and as
of the date hereof) except to the extent such representations and warranties relate to an earlier
date.

9. Conditions. This Amendment shall become effective when all of the following conditions
shall have been satisfied:

          (a) the Borrowers and the Agent shall have received this Amendment executed and delivered by
the Agent, the Borrowers and the Lenders,

          (b) the Agent and the Lenders shall have obtained all necessary consents as

 

 

required by the terms of that certain Intercreditor Agreement dated December 28, 2007, among Bank
of America, N.A., the Agent and the other financial institutions parties to the Intercreditor
Agreement, and

          (c) the Agent shall have received such other documents, instruments and certificates as it
shall reasonably require.

10. Term Loan Agreement. Except as specifically amended hereby, the Term Loan Agreement
shall continue in full force and effect in accordance with the provisions thereof as in existence
on the date hereof. This Amendment shall be a Loan Document for all purposes. After the date
hereof, any reference to the Term Loan Agreement in any Loan Document shall mean the Term Loan
Agreement as modified hereby.

11. GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN
ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK WITHOUT GIVING EFFECT TO THE CHOICE OF LAW
PROVISION THEREOF (OTHER THAN SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATIONS LAW).

[REMAINDER OF PAGE LEFT INTENTIONALLY BLANK; SIGNATURE PAGES ON FOLLOWING PAGE]

 

 

     IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed and
delivered by their proper and duly authorized representatives as of the day and year first above
written.

	 	 	 	 	 
	 	BORROWERS

SALTON, INC., a Delaware corporation

 	 
	 	By:  	/s/ Terry Polistina
 	 
	 	 	Name:  	Terry Polistina 	 
	 	 	Title:  	President and Chief Executive Officer 	 
	 
	 	APPLICA CONSUMER PRODUCTS, INC., a 
Florida corporation

 	 
	 	By:  	/s/ Lisa R. Carstarphen
 	 
	 	 	Name:  	Lisa R. Carstarphen 	 
	 	 	Title:  	Corporate Secretary 	 
	 
	 	APN HOLDING COMPANY, INC., a Delaware corporation

 	 
	 	By:  	/s/ Lisa R. Carstarphen
 	 
	 	 	Name:  	Lisa R. Carstarphen 	 
	 	 	Title:  	Corporate Secretary 	 
	 
	 	APPLICA AMERICAS, INC., a Delaware corporation

 	 
	 	By:  	/s/ Lisa R. Carstarphen
 	 
	 	 	Name:  	Lisa R. Carstarphen 	 
	 	 	Title:  	Corporate Secretary 	 
	 
	 	HP DELAWARE, INC., a Delaware corporation

 	 
	 	By:  	/s/ Lisa R. Carstarphen
 	 
	 	 	Name:  	Lisa R. Carstarphen 	 
	 	 	Title:  	Corporate Secretary 	 

 

 

	 	 	 	 	 
	 	HPG LLC, a Delaware limited liability company

 	 
	 	By:  	/s/ Lisa R. Carstarphen
 	 
	 	 	Name:  	Lisa R. Carstarphen 	 
	 	 	Title:  	Corporate Secretary 	 
	 
	 	APPLICA MEXICO HOLDINGS, INC., a Delaware corporation

 	 
	 	By:  	/s/ Lisa R. Carstarphen
 	 
	 	 	Name:  	Lisa R. Carstarphen 	 
	 	 	Title:  	Corporate Secretary 	 
	 
	 	SONEX INTERNATIONAL CORPORATION, a Delaware corporation

 	 
	 	By:  	/s/ Lisa R. Carstarphen
 	 
	 	 	Name:  	Lisa R. Carstarphen 	 
	 	 	Title:  	Corporate Secretary 	 
	 
	 	HOME CREATIONS DIRECT LTD., a Delaware corporation

 	 
	 	By:  	/s/ Lisa R. Carstarphen
 	 
	 	 	Name:  	Lisa R. Carstarphen 	 
	 	 	Title:  	Corporate Secretary 	 
	 
	 	SALTON HOLDINGS INC., a Delaware corporation

 	 
	 	By:  	/s/ Lisa R. Carstarphen
 	 
	 	 	Name:  	Lisa R. Carstarphen 	 
	 	 	Title:  	Corporate Secretary 	 
	 
	 	ICEBOX LLC, an Illinois limited liability company

 	 
	 	By:  	/s/ Lisa R. Carstarphen
 	 
	 	 	Name:  	Lisa R. Carstarphen 	 
	 	 	Title:  	Corporate Secretary 	 

2

 

	 	 	 	 	 
	 	TOASTMASTER INC., a Missouri corporation

 	 
	 	By:  	/s/ Lisa R. Carstarphen
 	 
	 	 	Name:  	Lisa R. Carstarphen 	 
	 	 	Title:  	Corporate Secretary 	 
	 
	 	FAMILY PRODUCTS INC., a Delaware corporation

 	 
	 	By:  	/s/ Lisa R. Carstarphen
 	 
	 	 	Name:  	Lisa R. Carstarphen 	 
	 	 	Title:  	Corporate Secretary 	 
	 
	 	ONE:ONE COFFEE LLC, a Delaware limited liability company

 	 
	 	By:  	/s/ Lisa R. Carstarphen
 	 
	 	 	Name:  	Lisa R. Carstarphen 	 
	 	 	Title:  	Corporate Secretary 	 
	 
	 	SALTON TOASTMASTER LOGISTICS LLC,
 a Delaware limited liability company

 	 
	 	By:  	/s/ Lisa R. Carstarphen
 	 
	 	 	Name:  	Lisa R. Carstarphen 	 
	 	 	Title:  	Corporate Secretary 	 

3

 

	 	 	 	 	 
	 	GUARANTORS

APPLICA CANADA CORPORATION, a Nova Scotia company

 	 
	 	By:  	/s/ Lisa R. Carstarphen
 	 
	 	 	Name:  	Lisa R. Carstarphen 	 
	 	 	Title:  	Corporate Secretary 	 
	 
	 	APPLICA ASIA LIMITED, a Hong Kong company

 	 
	 	By:  	/s/ Lisa R. Carstarphen
 	 
	 	 	Name:  	Lisa R. Carstarphen 	 
	 	 	Title:  	Director 	 

4

 

	 	 	 	 	 
	 	AGENT

HARBINGER CAPITAL PARTNERS MASTER FUND I, LTD.

as Administrative Agent and Collateral Agent

 	 
	 	By:  	/s/
Philip Falcone 	 
	 	 	Name:  	Philip Falcone 	 
	 	 	Title:  	Senior
Managing Director 	 

5

 

	 	 	 	 	 
	 	LENDERS

HARBINGER CAPITAL PARTNERS MASTER FUND I, LTD.

 	 
	 	By:  	/s/
Philip Falcone 	 
	 	 	Name:  	Philip Falcone 	 
	 	 	Title:  	Senior
Managing Director 	 
	 
	 	HARBINGER CAPITAL PARTNERS SPECIAL SITUATIONS FUND, L.P.

 	 
	 	By:  	/s/
Philip Falcone 	 
	 	 	Name:  	Philip Falcone 	 
	 	 	Title:  	Senior
Managing Director 	 
	 

6

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00141-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00141-of-00352.parquet"}]]