Document:

Exhibit 10.1

 

DFI Holdings, LLC and Subsidiaries

KPS Holdco, LLC and Subsidiaries

3179 Deer Creek Road

Collegeville, PA 19426

 

January 20, 2016

 

American Republic Investment Co.

c/o AMREP Corporation

300 Alexander Park, Suite 204

Princeton, NJ 08540

 

		RE:	Payoff of Promissory Note from DFI Holdings, LLC and KPS Holdco, LLC in favor of American Republic
Investment Co. and Related Transactions

 

Gentlemen/Ladies:

 

Reference is made to the Stock Purchase
Agreement, dated February 9, 2015 (the “Stock Purchase Agreement”), between American Republic Investment Co.
(“Lender”) and DFI Holdings, LLC (“Distribution Buyer”) and KPS Holdco, LLC (“Products
Buyer” and together with Distribution Buyer, collectively, “Buyers”). All capitalized terms used and
defined in this letter agreement shall have the meanings ascribed to them herein. All capitalized terms used but not otherwise
defined in this letter agreement shall have the meanings ascribed to them in the Stock Purchase Agreement.

 

On or prior to December 9, 2015, Distribution
Buyer, Products Buyer, Kable Media Services, Inc., Kable Distribution Services, Inc., Kable News Company, Inc., Kable News International,
Inc., Kable Distribution Services of Canada, Ltd., and Kable Product Services, Inc. (collectively, the “Borrowers”)
had notified Lender that Kable Distribution Services, Inc. (“KDS”) had suspended transaction of its usual business
and anticipated commencing the wind-down of its business. As a result, each Borrower hereby represents, warrants, acknowledges
and agrees that an event of default had occurred under Section 7(b)(iv) of the Buyer Promissory Note and Section 7(b)(iv) of the
Line of Credit Note (collectively, the “Events of Default”). On December 11, 2015, Lender delivered a written
notice of default (the “Default Notice”) to each Borrower that that one or more events of default had occurred
under the Buyer Promissory Note and the Line of Credit Note.

 

Each Borrower hereby represents, warrants,
acknowledges and agrees that:

 

		·	the Events of Default are continuing;

 

		·	the Events of Default are not capable of being cured;

 

		·	all actions or inactions taken by Lender or any of its Affiliates with respect to the Events of
Default were commercially reasonable and within the rights of Lender or its Affiliates provided in the Transaction Agreements and
any other agreement between Lender or any of its Affiliates, on the one hand, and any Borrower or any of their Affiliates, on the
other hand;

 

     

     

    

 

		·	Lender is permitted to charge Borrowers, among other things, an Unused Line Fee (as defined in
the Line of Credit Note) under the Line of Credit Note; and

 

		·	as a result of the Events of Default, Lender has the unilateral right pursuant to the Transaction
Agreements to, among other things:

 

		o	declare all Obligations (as defined in the Security Agreement) immediately due and payable, which
Obligations include all Rent (as defined in the Lease Agreement, dated November 7, 2008 (the “Lease Agreement”),
between El Dorado Utilities, Inc. and Kable Product Services, Inc. (as successor-in-interest to Kable Specialty Packaging Services
LLC)) required to be paid by Kable Product Services, Inc. (“KPS”) through the end of the Lease Term (as defined
in the Lease Agreement);

 

		o	demand that Borrowers immediately pay Lender or its Affiliates (a) interest at the Default Rate
(as defined in the Buyer Promissory Note) under the Buyer Promissory Note, (b) all Rent required to be paid by KPS through the
end of the Lease Term, (c) attorneys’ fees and costs and allocated fees and costs of Lender’s in-house legal counsel
that have been or may hereafter be contracted or incurred with respect to the Events of Default and (d) all expenses, including
reasonable attorneys’ fees, legal expenses and costs, together with interest from the date of such expenditure (at a rate
per annum equal to six percent (6%)), incurred by Lender in enforcing the Obligations and the Security Agreement;

 

		o	seize the full amount owed to Lender under the Buyer Promissory Note (including interest at the
Default Rate and attorneys’ fees and costs and allocated fees and costs of Lender’s in-house legal counsel) from any
source determined by Lender in its sole discretion, including from funds being held by Lender pursuant to the Security Agreement
that were received by Lender from the collection of amounts due to KPS from third parties (such funds, the “KPS Funds”);

 

		o	seize the full amount owed to Lender under the Line of Credit Note (including the Unused Line Fee,
interest at the Default Rate with respect to the Unused Line Fee and attorneys’ fees and costs and allocated fees and costs
of Lender’s in-house legal counsel) from KPS Funds and terminate the Line of Credit Note;

 

		o	seize the full amount of Rent required to be paid by KPS through the end of the Lease Term from
KPS Funds;

 

		o	retain the amount of the Recipient Claim (as defined in the Offset Claim Agreement, dated February
9, 2015 (the “Offset Claim Agreement”), between Palm Coast Data LLC and KDS) as a continuing security interest
to secure the obligations of KDS to Palm Coast Data LLC under the Offset Claim Agreement; and

 

		o	maintain the existence of, and enforce its rights under, any and all of the Transactions Agreements
or any other agreement between Lender or any of its Affiliates, on the one hand, and any Borrower or any of their Affiliates, on
the other hand, including retaining all amounts of cash collected by Lender pursuant to the Security Agreement and related account
control agreements as security for each Borrower’s Obligations.

 

     

     

    

 

In order to resolve the Events of Default
and certain other matters, each Borrower and Lender (collectively, the “Parties”) hereby agree as follows:

 

		1.	Direction of Funds.

 

		(a)	The Parties agree that the payoff amount for the Buyer Promissory Note as of January 20, 2016 (the
“Payoff Date”) is $1,614,544.47 (the “Payoff Amount”), which consists of $1.6 million of
principal and $8,766.67 of interest for December 2015 and $5,777.80 of interest for the period January 1, 2016 to January 20, 2016.

 

		(b)	As of the date of this Agreement and pursuant to, and as permitted by, the Security Agreement,
Lender is holding (i) $1,384,474.09 of funds received by Lender from the collection of amounts due to KDS from third parties (the
“KDS Funds”) and (ii) $1,917,802.20 of KPS Funds, and.

 

		(c)	On the Payoff Date, Lender shall cause to be delivered:

 

		(i)	the Payoff Amount from the KPS Funds to Lender;

 

		(ii)	the $137,830.00 from the KDS Funds to Lender as a continuing security interest to secure the obligations
of KDS to Palm Coast Data LLC under the Offset Claim Agreement;

 

		(iii)	February 2016 rent and estimated property taxes under the Lease Agreement in the amount of $61,135.57
from the KPS Funds to El Dorado Utilities, Inc.;

 

		(iv)	the remaining balance of $242,122.16 from the KPS Funds, plus any additional amount of KPS Funds
deposited prior to the wiring of such funds, to KPS; and

 

		(v)	the remaining balance of $1,246,644.09 from the KDS Funds, plus any additional amount of KDS Funds
deposited prior to the wiring of such funds, to KDS.

 

Amounts to be delivered to
KDS shall be by wire transfer to KDS’s account at PNC Bank, National Association (“PNC”) designated in writing
by KDS to Lender. Amounts to be delivered to KPS shall be by wire transfer to KPS’s account at PNC designated in writing
by KPS to Lender. Each of the transactions contemplated by Sections 1(c)(iv) and 1(c)(v) of this letter agreement shall be subject
(A) to the completion of Sections 1(c)(i), 1(c)(ii) and 1(c)(iii) of this letter agreement and (B) to the other terms and provisions
of this letter agreement.

 

		(d)	Upon completion of the transactions contemplated by Section 1(c) of this letter agreement (the
“Wire Delivery Time”):

 

		(i)	the Buyer Promissory Note shall be deemed paid in full and the original Buyer Promissory Note,
if in Lender’s possession, shall be marked cancelled and returned to Buyers, not later than 10 days after the Payoff Date;

 

     

     

    

 

		(ii)	other than with respect to the Recipient Claim being held by Lender as a continuing security interest
to secure the obligations of KDS to Palm Coast Data LLC under the Offset Claim Agreement, the Security Agreement shall be deemed
terminated;

 

		(iii)	Lender authorizes the filing of UCC-3 Financing Statement Amendments to terminate any UCC Financing
Statements filed by Lender against any Borrower pursuant to the Security Agreement;

 

		(iv)	Lender shall deliver to KDS the letters provided by PNC to terminate (A) the Deposit Account Control
Agreement (Hard Account Agreement), dated as of February 9, 2015, among KDS, PNC and Lender and (B) the Deposit Account Control
Agreement (Springing Agreement), dated as of February 9, 2015, among KDS, PNC and Lender. KDS shall be authorized to deliver such
letters to PNC;

 

		(v)	Lender shall deliver to KPS the letters provided by PNC to terminate (A) the Deposit Account Control
Agreement (Hard Account Agreement), dated as of February 9, 2015, among KPS, PNC and Lender and (B) the Deposit Account Control
Agreement (Springing Agreement), dated as of February 9, 2015, among KPS, PNC and Lender. KPS shall be authorized to deliver such
letters to PNC; and

 

		(vi)	the Events of Default shall be deemed resolved and settled and Buyers shall have no further liabilities
or obligations on account thereof except to the extent provided for in this letter agreement.

  

		2.	Termination of Line of Credit Note. The Parties acknowledge and agree that, as of the Wire
Delivery Time, (a) there are no amounts of principal outstanding under the Line of Credit Note, (b) the Line of Credit Note shall
be deemed terminated and (c) any Unused Line Fee, interest at the Default Rate with respect to the Unused Line Fee and attorneys’
fees and costs and allocated fees and costs of Lender’s in-house legal counsel with respect thereto are waived by Lender.
The original Line of Credit Note, if in Lender’s possession, shall be marked cancelled and returned to Buyers, not later
than 10 days after the Payoff Date.

 

		3.	All American Crafts. Each Borrower hereby represents, warrants, acknowledges and agrees
that KDS’s obligation to pay Palm Coast Data LLC the Recipient Claim is secured by the Security Agreement and is subject
to the Guaranty. Each Borrower, including KDS, agrees that Lender shall, and authorizes Lender to, retain the amount of the Recipient
Claim from the KDS Funds (the “KDS Escrowed Funds”) as a continuing security interest and its and Palm Coast
Data LLC’s sole recourse for the obligations of KDS to Palm Coast Data LLC under the Offset Claim Agreement. The KDS Escrowed
Funds shall be released only in accordance with this Section. Once payment of the Recipient Claim is triggered under Section 2
of the Offset Claim Agreement, Lender shall deliver the KDS Funds being retained by Lender pursuant to Section 1(c)(ii) above to
Palm Coast Data LLC to satisfy the payment of the Recipient Claim and KDS and each other Borrower shall be released from any further
obligation under the Offset Claim Agreement or the Guaranty, as the case may be, with respect to the Recipient Claim. In the event
KDS is directed by an Order (as defined in the Offset Claim Agreement) not to deliver the Recipient Claim to Palm Coast Data LLC,
but instead directs KDS to deliver the Recipient Claim to All American Crafts, Inc. or another third party that is not Palm Coast
Data LLC, then Lender shall promptly release the KDS Escrowed Funds (without interest) to KDS (or as otherwise provided for in
such Order) and shall be deemed to have released its continuing security interest in such funds. Lender shall retain any interest
earned on the KDS Escrowed Funds. In the event neither KDS nor Palm Coast Data LLC has received an Order with respect to the KDS
Escrowed Funds as of the termination of the Bankruptcy Proceeding (as defined in the Offset Claim Agreement), then the KDS Escrowed
Funds shall be released to Palm Coast Data LLC, the Offset Claim Agreement shall be deemed terminated and KDS and each other Borrower
shall be released from any further obligation under the Offset Claim Agreement or the Guaranty, as the case may be, with respect
to the Recipient Claim.

 

     

     

    

 

		4.	Release.

 

		(a)	Effective as of the Wire Delivery Time, each Borrower, for themselves and on behalf of (A) each
Affiliate of any Borrower and (B) each officer, director, stockholder, member, successor or assign of (i) each Borrower or (ii)
an Affiliate of each Borrower (collectively, “Releasors”) hereby irrevocably
and unconditionally releases, waives and forever discharges Lender, its Affiliates and the direct and indirect subsidiaries, Affiliates,
employees, officers, directors, stockholders, members, agents, representatives, successors and assigns of Lender and its Affiliates
(collectively, “Releasees”) of and from Losses (as defined below) which
any Releasor ever had, now has or hereafter can, shall or may have against any Releasee for, upon or by reason of any matter, cause,
conduct, event, occurrence, omission or thing whatsoever, related to, in connection with, with respect to or as a result of (i)
the Events of Default, (ii) the Default Notice, (iii) this letter agreement (except with respect to Releasees’ obligations
under this letter agreement), (iv) the exercise of or failure to exercise any rights or obligations by any Releasee as a lender
under the Buyer Promissory Note, the Line of Credit Note, the Security Agreement, the Guaranty, any deposit account control agreement
or the Lease Agreement, or (v) any actions, inactions, discussions or communications (in any form) of any Releasee with respect
to any of the foregoing (all such Losses being released under this Section 4(a), collectively, “Claims”). “Losses”
means any and all actions, causes of action, suits, losses, liabilities, rights, debts, dues, sums of money, accounts, reckonings,
obligations, costs, expenses, liens, bonds, bills, specialties, covenants, contracts, controversies, agreements, promises, variances,
trespasses, damages, judgments, extents, executions, claims and demands of every kind and nature whatsoever, whether now known
or unknown, foreseen or unforeseen, matured or unmatured, suspected or unsuspected, in law, admiralty or equity.

 

		(b)	Each Borrower, on behalf of itself and each other Releasor, hereby irrevocably agrees to refrain from directly or indirectly
asserting any claim or demand or commencing (or causing to be commenced) any suit, action, or proceeding of any kind, in any court
or before any tribunal, against any Releasee based upon any Claim. It is understood and agreed by each Party that the release in
Section 4(a) is a general release of each Releasee with respect to the Claims, and it is to be construed with respect to the Claims
in the broadest possible manner consistent with applicable Law.

 

     

     

    

 

		(c)	Each Borrower, on behalf of itself and each other Releasor, represents and warrants that Borrowers are the exclusive owner
of the Claims and that, as of the date hereof, no Borrower has assigned, sold, transferred or otherwise conveyed any Claim to any
other person or entity. Each Borrower, on behalf of itself and each other Releasor, represents and warrants that, as of the date
of the date hereof, no Releasor has filed with any court, tribunal or alternative dispute resolution organization any claim, demand,
action, joinder or cause of action against any Releasee. If this warranty and representation should later be found to be untrue,
then, in addition to any other relief or damages to which a Releasee may be entitled, each Borrower shall, at no cost or expense
to any Releasee, immediately file all documents and take all action necessary to have the claim, action or cause of action dismissed
or discontinued with prejudice.

 

		(d)	Each Borrower, on behalf of itself and each other Releasor, understands that it may later discover facts that may be different
than, or in addition to, those that any Releasor now knows or believes to exist regarding the subject matter of the release contained
in Section 4(a), and which, if known at the time of signing this letter agreement, may have materially affected this letter agreement
and such Party’s decision to enter into it and grant the release contained in Section 4(a). Nevertheless, each Borrower,
on behalf of itself and each other Releasor, intends to fully, finally and forever settle and release all Claims that now exist,
may exist or previously existed, to the extent provided for in this Section 4, whether known or unknown, foreseen or unforeseen,
or suspected or unsuspected, and the release given herein is and will remain in effect as a complete release, notwithstanding the
discovery or existence of such additional or different facts. Each Borrower, on behalf of itself and each other Releasor, hereby
waives any right that might arise as a result of such different or additional facts.

 

		(e)	For the avoidance of doubt, the term “Claims” shall not include any Releasee’s obligations under the Transaction
Agreements (other than the Buyer Promissory Note, the Line of Credit Note, the Guaranty, the Security Agreement, any deposit account
control agreement and the Lease Agreement) or other agreements between any Borrower and any Releasee entered into in the ordinary
course of business after the date of the Transaction Agreements.

 

		5.	Indemnification. Each Borrower agrees to indemnify and defend each Releasee, and hold each Releasee harmless, from and
in respect of any and all Losses and reasonable expenses (including reasonable fees and expenses of counsel incident to any Loss,
or incurred in investigating or attempting to avoid any Loss or to oppose the imposition thereof, or in enforcing any of the obligations
of any Releasor) that they may incur or suffer arising out of or by reason of or in connection with or due to (a) any breach of
any representation or warranty of any Releasor set forth in this letter agreement, (b) the failure to perform any of the covenants
or agreements of any Releasor set forth in this letter agreement, (c) any acknowledgement or agreement of any Releasor in this
letter agreement, including if any such acknowledgement or agreement is challenged, contradicted, contravened or attempted to be
set aside by any Borrower or any other Person; (d) the exercise of or failure to exercise any rights or obligations by any Releasee
as a lender under the Buyer Promissory Note, the Line of Credit Note, the Guaranty, the Security Agreement, any deposit account
control agreement and the Lease Agreement, (e) third party claims arising out of or by reason of or in connection with or due to
the Events of Default, the Default Notice and/or this letter agreement, or (f) any actions, inactions, discussions or communications
(in any form) of any Releasee with respect to any of the foregoing.

 

     

     

    

 

		6.	Representations and Warranties. Each Borrower hereby represents and warrants that:

 

		(a)	Each Borrower is duly organized, validly existing and in good standing as a corporation under the Laws of the state of its
incorporation;

 

		(b)	Each Borrower has the corporate or limited liability company power and authority and the legal right to execute, deliver and
enter into this letter agreement and perform its obligations and grant the release contained in this letter agreement, and has
taken all necessary corporate or limited liability company action to authorize the execution, delivery and performance of this
letter agreement;

 

		(c)	The individual whose signature is set forth at the end of this letter agreement on behalf of such Borrower is an authorized
signatory of such Borrower;

 

		(d)	This letter agreement has been duly executed and delivered by each Borrower and constitutes legal, valid and binding obligations
of each Borrower enforceable against each Borrower in accordance with its terms;

 

		(e)	The execution, delivery and performance of this letter agreement and the actions contemplated hereunder will not violate any
contractual obligation of any Borrower or any of its Affiliates or any requirement of Law; and

 

		(f)	No consent, approval, authorization of, or registration, declaration or filing with, any Governmental Entity is required on
the part of any Borrower in connection with the execution and delivery of this letter agreement or the performance of or compliance
with the terms, provisions and conditions of this letter agreement.

 

		7.	Prepayment of February Rent; Insurance; Tenant Certification.

 

		(a)	As provided for in Section 1(c)(iii), KPS agrees to prepay the rent due for February 2016 and estimated
property taxes under the Lease Agreement in the amount of $61,135.57 on the Payoff Date, with such amount to be delivered by Lender
from the KPS Funds to El Dorado Utilities, Inc.

 

		(b)	KPS agrees to enter into an Amendment to the Lease Agreement with El Dorado Utilities, Inc. in
the event the proposed purchaser of the leased property agrees to continue KPS’s and El Dorado Utilities, Inc.’s current
practice of KPS reimbursing landlord for the costs of insurance required by the Lease Agreement and KPS paying to landlord the
estimated property taxes on a monthly basis. In the event the proposed purchaser of the leased property does not agree to continue
such current practice, then Lender shall notify KPS in writing as to same, and (i) KPS shall obtain all insurance required by the
Lease within 15 days of the date of such notice and shall provide the landlord under the Lease with evidence of same and (ii) KPS
shall pay property taxes in accordance with the Lease.

 

     

     

    

 

		(c)	In connection with the Lease Agreement, at the written request of Lender or the landlord thereunder,
from time to time, KPS agrees, at KPS’s sole cost and expense, to execute and deliver to Lender or the landlord, as applicable,
a tenant certification in the form attached hereto as Exhibit A and in any other form substantially similar to Exhibit A.

 

		8.	Third Party Releases. In all general releases obtained by KDS from its customers (“Third
Party Releases”), KDS agrees to use commercially reasonable efforts to have such Third Party Releases include language releasing
all claims against KDS’s “affiliates and former affiliates” and that KDS’s “affiliates and former
affiliates” shall be deemed third party beneficiaries of the Third Party Releases. KDS shall provide copies of all executed
Third Party Releases to Lender promptly upon receipt of same.

 

		9.	Default. Notwithstanding anything to the contrary under this letter agreement, upon any
default or other failure to perform by any Releasor under this letter agreement, following written notice thereof and a failure
to cure same within ten (10) days:

 

		(a)	all Obligations (as defined in the Security Agreement) shall be immediately due and payable; and

 

		(b)	Borrowers shall pay Lender an amount equal to (i) interest at the Default Rate (as defined in the
Buyer Promissory Note) on the amount of principal and unpaid interest (in each case, immediately prior to the Wire Delivery Time)
under the Buyer Promissory Note from the date of the first occurrence of any Event of Default through the date of this letter agreement,
together with additional interest from the date of this letter agreement through the date of payment by Borrowers of such amount
(at a rate per annum equal to ten percent (10%)), plus (ii) if El Dorado Utilities, Inc. is the landlord under the Lease, all Rent
required to be paid by KPS through the end of the Lease Term, together with additional interest from the date of default through
the date of payment by Borrowers of such amount (at a rate per annum equal to ten percent (10%)), plus (iii) the Unused Line Fee
and interest at the Default Rate with respect to the Unused Line Fee from the date of the first occurrence of any Event of Default
through the date of this letter agreement, together with additional interest from the date of this letter agreement through the
date of payment by Borrowers of such amount (at a rate per annum equal to ten percent (10%)), plus (iv) all expenses, including
attorneys’ fees and costs and allocated fees and costs of in-house legal counsel of Lender or any of its Affiliates that
have been or may hereafter be contracted or incurred, together with interest from the date of such expenditure or allocation through
the date of payment by Borrowers of such amount (at a rate per annum equal to ten percent (10%)), incurred by Lender or any of
its Affiliates in negotiating, documenting, enforcing or collecting amounts due under this letter agreement, the Obligations or
any Transaction Agreement. The amounts to be paid pursuant to this Section 9(b) shall be calculated as if the Buyer Promissory
Note and the Line of Credit Note had not been paid in full or terminated, as applicable, pursuant to this letter agreement.

 

     

     

    

 

		10.	This letter agreement shall not be construed as establishing a course of conduct on the part of
Lender or any of its Affiliates upon which any Borrower or any of its Affiliates may rely at any time in the future. Nothing contained
herein will be deemed to create any requirement for notice by Lender, except such notices, if any, as may be expressly required
by the terms of the Transaction Agreements. Each Borrower, on behalf of itself and each other Releasor, agrees that, without the
prior written consent of Lender or except as provided for in Section 1(c)(ii) hereof, no funds of KDS shall be used, directly or
indirectly, by any Releasor to pay any amounts or other obligations due from any Releasor or any of its Affiliates to Lender or
any of its Affiliates.

 

		11.	Miscellaneous.

 

		(a)	Further Assurances. At the written request of a Party to this letter agreement at any time
and from time to time, a Party shall, on the reasonable request and at the sole cost and expense of the requesting Party, duly
execute and deliver, or cause to be duly executed and delivered, such further agreements, documents and instruments, and do or
cause to be done such further acts as may be necessary or proper, to effectuate the provisions or purposes of this letter agreement.

 

		(b)	Waiver. Any failure of any Borrower to comply with any of its obligations or agreements
herein contained may be waived only in writing by Lender. Any failure of Lender to comply with any of its obligations or agreements
herein contained may be waived only in writing by any Borrower. No waiver granted hereunder shall be deemed a waiver of any subsequent
breach or default of the same or similar nature. No failure or delay by any Party in exercising any right or privilege hereunder
shall operate as a waiver thereof, nor shall any single or partial exercise thereof preclude any other or further exercise thereof
or the exercise of any other right, power or privilege.

 

		(c)	Notices. All notices, requests, consents, claims, demands, waivers and other communications
hereunder shall be in writing and shall be deemed to have been given: (a) when delivered by hand (with written confirmation of
receipt); (b) when received by the addressee if sent by a nationally recognized overnight courier (receipt requested); (c) on the
date sent by facsimile (with confirmation of transmission) if sent during normal business hours of the recipient, and on the next
Business Day if sent after normal business hours of the recipient; or (d) on the third day after the date mailed, by certified
or registered mail, return receipt requested, postage prepaid. Such communications must be sent to the respective Parties at the
addresses set forth below (or to such other address that may be designated by a party from time to time in accordance with this
Section):

 

	Borrowers: 	
        c/o DFI Holdings, LLC

        3179 Deer Creek Road, Collegeville, PA 19426

        Attention: Michael P. Duloc

        Fax: 815-734-5233

         

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

        Fox Rothschild LLP

        2700 Kelly Road, Suite 300

        Warrington, PA 18976

        Attention: Jeffrey H. Nicholas

        Fax: 215-345-7507

         

	Lender: 	
        c/o AMREP Corporation

        300 Alexander Park, Suite 204

        Princeton, New Jersey 08540

        Attention: General Counsel

        Fax: 609-716-8255

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

        Duane Morris LLP

        222 Delaware Avenue, Suite 1600

        Wilmington, DE 19801

        Attention: Christopher Winter

        Fax: 302-397-2455

         

 

     

     

    

		(d)	Governing Law; Consent to Jurisdiction and Waiver of Jury Trial. This letter agreement shall
be governed by and construed in accordance with the internal substantive Laws of the State of New York, without giving effect to
any choice of Law or conflict of Laws rules or provisions (whether of the State of New York or any other jurisdiction) that would
cause the application of the Laws of any jurisdiction other than the State of New York. Each Party irrevocably submits to the exclusive
jurisdiction of the federal courts of the Southern District of New York or the courts of the State of New York located in the City
of New York for the purposes of any suit, action or other proceeding arising out of this letter agreement or any transaction contemplated
hereby. Each Party further agrees that service of any process, summons, notice or document by U.S. registered mail to such Party’s
respective address set forth in the “Notices” section hereof shall be effective service of process for any action,
suit or proceeding with respect to any matters to which it has submitted to jurisdiction in this Section. Each Party irrevocably
and unconditionally waives any objection to the laying of venue of any action, suit or proceeding arising out of this letter agreement
or the transactions contemplated hereby in federal courts of the Southern District of New York or the courts of the State of New
York located in the City of New York, and hereby further irrevocably and unconditionally waives and agrees not to plead or claim
in any such court that any such action, suit or proceeding brought in any such court has been brought in an inconvenient forum.
EACH PARTY HEREBY IRREVOCABLY WAIVES ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM (WHETHER BASED ON CONTRACT,
TORT OR OTHERWISE) ARISING OUT OF OR RELATING TO THIS LETTER AGREEMENT OR THE ACTIONS OF SUCH PARTY IN THE NEGOTIATION, ADMINISTRATION,
PERFORMANCE AND ENFORCEMENT HEREOF.

 

		(e)	Counterparts. This letter 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. Execution and delivery
of this letter agreement by delivery of a facsimile or electronically recorded copy in .pdf file format bearing a copy of the signature
of a Party shall constitute a valid and binding execution and delivery of this letter agreement by such Party. Such copies shall
constitute enforceable original documents.

 

		(f)	Headings. The section headings contained in this
letter agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this letter
agreement.

 

		(g)	Entire Agreement. This letter agreement embodies the entire agreement and understanding
of the Parties hereto in respect of the subject matter herein. This letter agreement supersedes all prior agreements and understandings
between the Parties with respect to the subject matter thereof.

 

     

     

    

 

		(h)	Amendment. Any provision of this letter agreement may be amended if, and only if, such amendment
is in writing and is signed by each Party to this letter agreement.

 

		(i)	Binding Effect; Benefits. This letter agreement shall inure to the benefit of and be binding
upon the Parties hereto and their respective successors and permitted assigns; nothing in this letter agreement, express or implied,
is intended to confer on any Person, other than the Parties and their respective successors and permitted assigns, the Releasors
and the Releasees, any rights, remedies, obligations or liabilities under or by reason of this letter agreement. The Parties hereby
designate all Releasees as third-party beneficiaries of Sections 4 and 5 of this letter agreement and each Releasee shall have
the right to enforce Sections 4 and 5 of this letter agreement. Notwithstanding anything to the contrary herein, the purchaser
of the property that is the subject of the Lease Agreement shall not be deemed an intended third-party beneficiary of this letter
agreement.

 

		(j)	Joint Drafting. The Parties have participated jointly in the negotiation and drafting of
this letter agreement. In the event an ambiguity or question of intent or interpretation arises, this letter agreement shall be
construed as if drafted jointly by the Parties and no presumption or burden of proof shall arise favoring or disfavoring any Party
by virtue of the authorship of any of the provisions of this letter agreement.

 

		(k)	Severability. Whenever possible, each provision of this letter agreement shall be interpreted
in such manner as to be effective and valid under applicable Law. If any provision of this letter agreement is held to be prohibited
by or invalid under applicable Law, such provision shall be ineffective only to the extent of such prohibition or invalidity, without
invalidating the remainder of such provision or the remaining provisions of this letter agreement. Upon such determination that
any term or other provision is invalid, illegal or incapable of being enforced, the Parties hereto shall negotiate in good faith
to modify this letter agreement so as to effect the original intent of the Parties as closely as possible to the fullest extent
permitted by applicable Law in an acceptable manner to the end that the transactions contemplated hereby are fulfilled to the extent
possible.

 

		(l)	Interpretation. When a reference is made in this letter agreement to a Section or Exhibit,
such reference will be to a Section of, or an Exhibit to, this letter agreement unless otherwise indicated. Whenever the words
“include,” “includes” or “including” are used in this letter agreement, they will be deemed
to be followed by the words “without limitation.” The words “hereof,” “herein” and “hereunder”
and words of similar import when used in this letter agreement will refer to this letter agreement as a whole and not to any particular
provision of this letter agreement. Unless the context expressly provides otherwise, any approval, determination, election or authorization
required to be obtained from a Party shall be at such Party’s sole discretion. The word “or” is not exclusive.
All terms defined in this letter agreement will have such defined meanings when used in any certificate or other document made
or delivered pursuant hereto unless otherwise defined therein. The definitions contained in this letter agreement are applicable
to the singular as well as the plural forms of such terms and to the masculine as well as to the feminine and neuter genders of
such term. Unless otherwise indicated, any agreement, instrument or statute defined or referred to herein, or in any agreement
or instrument that is referred to herein, means such agreement, instrument or statute as from time to time amended, modified or
supplemented, including (in the case of agreements or instruments) by waiver or consent and (in the case of statutes) by succession
of comparable successor statutes and references to all attachments thereto and instruments incorporated therein. References to
a Person are also to its permitted successors and assigns.

 

     

     

    

 

		(m)	Assignability. This letter agreement shall not be assignable by any Party hereto without
the prior written consent of the other Party.

 

		(n)	Specific Performance. Each Party agrees that irreparable damage would occur in the event
that any of the provisions of this letter agreement were not performed by them in accordance with the terms hereof and that each
Party shall be entitled to specific performance of the terms hereof (without the need to post bond or any other security), in addition
to any other remedy at law or equity.

 

		(o)	Expenses. Notwithstanding the foregoing, in the event that any Party institutes any legal
suit, action or proceeding against any other Party arising out of or relating to this letter agreement, the prevailing Party in
the suit, action or proceeding shall be entitled to receive in addition to all other damages to which it may be entitled, the costs
incurred by such Party in conducting the suit, action or proceeding, including reasonable attorneys’ fees and expenses and
court costs.

 

		(p)	Disclosure. Each Borrower consents to Lender or its Affiliates publicly disclosing this
letter agreement, including by filing such documents with the Securities and Exchange Commission or the New York Stock Exchange.

 

		(q)	Independent Counsel. Each Party certifies that it has read the terms of this letter agreement,
that it understands the terms of this letter agreement, and that it is entering into this letter agreement of its own volition.
Each Party warrants and represents that it has (a) been represented by an attorney of its choice in connection with the transactions
contemplated by this letter agreement and received independent legal advice from such attorney regarding its decision with respect
to the advisability of making and entering into this letter agreement, or (b) had sufficient time, opportunity and means to engage
an attorney of its choice in order to be represented by such attorney in connection with the transactions contemplated by this
letter agreement and to receive independent legal advice from such attorney regarding its decision with respect to the advisability
of making and entering into this letter agreement, and has made a knowing and voluntary decision not to do so.

  

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

 

     

     

    

  

Please indicate your consent and agreement
to the foregoing by signing a copy of this letter agreement in the space provided below and returning an executed copy to us.

 

	
        DFI HOLDINGS, LLC

         

         

        By: /s/ Michael P. Duloc

        Name: Michael P. Duloc

        Title: Manager
	
        KPS HOLDCO, LLC

         

         

        By: /s/ Michael P. Duloc

        Name: Michael P. Duloc

        Title: Manager

	
        KABLE MEDIA SERVICES, INC.

         

         

        By: /s/ Michael P. Duloc

        Name: Michael P. Duloc

        Title: CEO
	
        KABLE NEWS INTERNATIONAL, INC.

         

         

        By: /s/ Michael P. Duloc

        Name: Michael P. Duloc

        Title: CEO

	
        KABLE DISTRIBUTION SERVICES, INC.

         

         

        By: /s/ Michael P. Duloc

        Name: Michael P. Duloc

        Title: CEO
	
        KABLE DISTRIBUTION SERVICES OF CANADA,
        LTD.

         

         

        By: /s/ Michael P. Duloc

        Name: Michael P. Duloc

        Title: CEO

	
        KABLE NEWS COMPANY, INC.

         

         

        By: /s/ Michael P. Duloc

        Name: Michael P. Duloc

        Title: CEO
	
        KABLE PRODUCT SERVICES, INC.

         

         

        By: /s/ Michael P. Duloc

        Name: Michael P. Duloc

        Title: CEO

 

	
        Agreed to and accepted by:

         

        American
        republic investment co.

         

         

        By: /s/ Christopher V. Vitale

        Name: Christopher V. Vitale

        Title: President and CEOExhibit 10.2

 

SECOND AMENDMENT TO SETTLEMENT AGREEMENT

 

THIS SECOND AMENDMENT TO SETTLEMENT AGREEMENT
(“Second Amendment”), dated as of February 2, 2016 (the “Second Amendment Effective Date”),
is entered into between the Pension Benefit Guaranty Corporation (“PBGC”) and AMREP Corporation (“AMREP”
and collectively with PBGC, the “Parties”) and further amends the Settlement Agreement entered into and effective
on August 30, 2013 by the Parties (“Settlement Agreement”).

 

WITNESSETH

 

WHEREAS, PBGC is a wholly-owned United States
government corporation and agency of the United States that administers the pension plan insurance program established under Title
IV of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), 29 U.S.C. § 1301 et
seq.; and

 

WHEREAS, AMREP is an Oklahoma corporation
and the sponsor of the Retirement Plan for Employees of AMREP
Corporation (“Pension Plan”); and

 

WHEREAS, in April 2010, AMREP ceased operations
at its facility in Louisville, Colorado (“First Cessation of Operations”). In January 2011, AMREP ceased operations
at its facility in Mount Morris, Illinois (“Second Cessation of Operations” and collectively with the First
Cessation of Operations, the “Cessations of Operations”). As a result of the Cessations of Operations, certain
employees who were participants in the Plan were separated from employment; and

 

WHEREAS, PBGC asserted that the Cessations
of Operations were events described in section 4062(e) of ERISA, and that AMREP and the other members of its controlled group,
within the meaning of section 4001(a)(14) of ERISA were therefore subject to the provisions of section 4063 of ERISA and liable
thereunder to PBGC with respect to the Pension Plan (“Liability”); and

 

WHEREAS, the Parties entered into that certain
Tolling and Forbearance Agreement with respect to the Cessations of Operations on August 13, 2012, and the Parties addressed the
Liability by executing the Settlement Agreement, a copy of which is attached hereto as Exhibit 1; and

 

WHEREAS, in the Settlement Agreement, AMREP
agreed, among other things, to secure all unpaid Liability by executing first lien mortgages (“Original PBGC Mortgages”)
in favor of PBGC on certain real properties (“Original Mortgaged Properties”); and

 

WHEREAS, on April 24, 2015, AMREP entered
into an agreement (the “Sale Agreement”) to sell the surface of one of the Original Mortgaged Properties located
in Brighton, Colorado (such surface of the property being sold (which does not include any mineral (e.g., oil and gas) rights),
“Brighton Property”) to Meritage Homes of Colorado, Inc. (“Buyer”) in four sale transactions
(collectively, the “Sale”); and

 

     

     

    

 

WHEREAS, on July 15, 2015, the Parties entered
into that certain First Amendment to the Settlement Agreement (“First Amendment”), a copy of which is attached
hereto as Exhibit 2. Under the First Amendment, PBGC accepted a mortgage on property located at 11 Commerce Boulevard in
Palm Coast, Florida (the “Palm Coast Property”) in exchange for the release of the Original PBGC Mortgage encumbering
the Brighton Property in advance of the closing dates outlined in the Sale Agreement. In further consideration thereof, AMREP agreed
to continue to make any payments to the Pension Plan in accordance with Section 2.5 of the Settlement Agreement relating
to the sale of the Brighton Property; and

 

WHEREAS, in October 2015, AMREP sought PBGC’s
consent to the transfer of ownership of the Palm Coast Property from Palm Coast Data, LLC f/k/a PCD Acquisition LLC (“PCD”)
to Commerce Blvd Holdings, LLC (“NewCo”), a newly formed Florida LLC that is a wholly owned subsidiary of AMREP,
for corporate governance purposes. AMREP further sought PBGC’s consent to the transfer of ownership of properties owned by
PCD located at10 Commerce Boulevard and 13 Commerce Boulevard (collectively, “Other PCD Properties”), which
are subject to Original PBGC Mortgages, to NewCo for similar reasons; and

 

NOW, THEREFORE, for good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, AMREP and PBGC hereby agree as follows:

 

		1.	The Settlement Agreement and First Amendment are fully incorporated by reference herein and shall,
as amended hereby, continue in full force and effect. For the avoidance of doubt, nothing in this Second Amendment releases AMREP
of any obligations or duties under the Settlement Agreement or First Amendment. Initially capitalized terms used but not otherwise
defined in this Second Amendment have the meanings given to them in the Settlement Agreement.

 

		2.	PBGC consents to the transfer of the Palm Coast Property and Other PCD Properties from PCD to NewCo,
provided that AMREP abides by all terms and conditions set forth herein.

 

		3.	AMREP shall, at its sole expense,
                                         provide to PBGC (i) an acceptable recordable discharge and release of the Replacement
                                         Palm Coast Mortgage on the Palm Coast Property (“Palm Coast Release”);
                                         and (ii) acceptable recordable discharge and releases of the Original PBGC Mortgages
                                         on the Other PCD Properties (“Other PCD Releases”, collectively with
                                         the Palm Coast Release, the “Releases”). PBGC will promptly execute
                                         and return the Releases to AMREP via email to Christopher Vitale at CVitale@amrepcorp.com.
                                         AMREP shall bear all responsibility for filing the Releases at its sole expense. AMREP
                                         further agrees to provide PBGC with a copy of the file-stamped, recorded Releases via
                                         email to Courtney Morgan at morgan.courtney@pbgc.gov.

 

     

     

    

 

		4.	The form of Replacement PBGC Mortgages
                                         on the Palm Coast Property and the Other PCD Properties are attached hereto as Exhibit
                                         3 (collectively, the “NewCo Replacement Mortgages”). AMREP shall,
                                         at its sole expense, file and record the NewCo Replacement Mortgages. AMREP shall promptly
                                         provide PBGC with copies of the file-stamped, recorded NewCo Replacement Mortgages via
                                         email to Courtney Morgan at morgan.courtney@pbgc.gov.

 

		5.	AMREP represents and covenants to PBGC that the NewCo Replacement Mortgages will be filed with
the requisite recording authorities concurrently with the filing of the Releases and any documents effectuating the transfer of
ownership of the Palm Coast Property and Other PCD Properties from PCD to NewCo. AMREP’s failure to properly file the Releases
and the NewCo Replacement Mortgages on the same business day shall constitute an Event of Default under Section 6.1 of the
Settlement Agreement. Upon an Event of Default, PBGC may immediately take any and all actions prescribed by the Settlement Agreement,
in its sole discretion.

 

		6.	In accordance with Section 2.4 of the Settlement Agreement, the NewCo Replacement Mortgages
shall constitute first lien mortgages on the Palm Coast Property and the Other PCD Properties, respectively. Failure to provide
first lien priority status to any of the NewCo Replacement Mortgages, under any circumstances, constitutes an Event of Default
under Section 6.1 of the Settlement Agreement. Upon an Event of Default, PBGC may immediately take any and all actions prescribed
by the Settlement Agreement, in its sole discretion.

 

		7.	For the avoidance of doubt, nothing in this Second Amendment shall affect the duties and obligations
of AMREP under Paragraph 8 of the First Amendment with respect to the Brighton Property.

 

		8.	All Original PBGC Mortgages and Replacement PBGC Mortgages, including the NewCo Replacement Mortgages
(once filed and recorded), shall continue to be governed by the terms of the Settlement Agreement, as amended hereby.

 

IN WITNESS WHEREOF,
the Parties have executed this Second Amendment, effective as of the Second Amendment Effective Date.

 

Accepted and Agreed:

 

	AMREP CORPORATION	 	Pension Benefit Guaranty	 
	 	 	 	Corporation	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	By:	/s/ Christopher V. Vitale	 	By:	/s/ Robert D. Bacon	 
	 	 	 	 	 	 
	Name:  	Christopher V. Vitale	 	Name:  	Robert D. Bacon	 
	 	 	 	 	 	 
	Title:	Executive Vice President	 	Title:	Deputy Director, CFRD

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00255-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00255-of-00352.parquet"}]]