Document:

Amendment No. 1, dated as of July 8, 2010, to the Credit Agreement

 Exhibit 10.1 

EXECUTION COPY 

AMENDMENT NO. 1 

TO CREDIT AGREEMENT 

AMENDMENT NO. 1, dated as of July 8, 2010 (this “Amendment”) to the Credit Agreement, dated as of September 1,
2009, among Virtus Investment Partners, Inc. (the “Borrower”), the Lenders party thereto, and The Bank of New York Mellon, as Administrative Agent and as Issuing Bank (as the same may be amended, supplemented or otherwise modified
from time to time, the “Credit Agreement”). 
 RECITALS 

I.        Capitalized terms used herein and not herein defined shall have the meanings set forth
in the Credit Agreement. 
 II.       The Borrower desires to amend the Credit Agreement upon
the terms and conditions herein contained, and the Required Lenders and the Administrative Agent have agreed thereto upon the terms and conditions herein contained. 

Accordingly, in consideration of the Recitals and the covenants, conditions and agreements hereinafter set forth, and for other good and
valuable consideration, the receipt and adequacy of which are hereby acknowledged, the parties hereto agree as follows: 

1.         The definition of “Prohibited Convertible Preferred Event” contained in
Section 1.1 of the Credit Agreement is hereby amended by inserting immediately after the date “October 31, 2011,” the words “to the extent there are any Convertible Preferreds outstanding as of such date,”. 

2.         Section 7.8 of the Credit Agreement is hereby amended by (i) deleting the
word “and” at the end of subsection (d) thereof, (ii) deleting the period at the end of subsection (e) thereof and inserting “; and” in its place, and (iii) adding a new subsection thereto as follows:

 (f) on or prior to August 31, 2010, the Borrower may make one or more Restricted Payments to redeem and
retire Convertible Preferreds, provided that (i) the aggregate amount of all such Restricted Payments does not exceed $9,800,000, (ii) the liquidation preference of all such Convertible Preferreds so redeemed and retired shall not
be less than the aggregate sum of all such Restricted Payments, (iii) immediately before and after giving effect to each such Restricted Payment, no Event of Default shall exist or would occur, and (iv) prior to making each such Restricted
Payment, the Borrower shall have delivered to the Administrative Agent and the Lenders a pro forma compliance certificate (as of the immediately preceding month end in respect of which the Borrower shall have delivered the compliance certificate
required by Section 6.1(e)), giving effect to all distributions in cash from VPDI to the Borrower, all such Restricted Payments and certain other transactions, in each case since the month end covered by such compliance certificate, and each
such certificate shall be in form and substance satisfactory to the Administrative Agent. 

 3.         Paragraphs 1 and 2 of this Amendment
shall not be effective unless and until the following conditions precedent shall have been satisfied (the “Amendment Effective Date”): 

(a)         the Administrative Agent (or its counsel) shall have received from
the Borrower and Required Lenders either (i) a counterpart of this Amendment signed on behalf of each such Person, or (ii) written evidence satisfactory to the Administrative Agent (which may include facsimile transmission of a signed
signature page of this Amendment) that each such Person has signed a counterpart of this Amendment, and 
 (b)
        the Borrower shall have paid all fees and expenses of the Administrative Agent in connection with the preparation, negotiation, execution and delivery of this Amendment and the other matters
contemplated hereby, including, without limitation, the reasonable fees and expenses of the Administrative Agent’s counsel. 

4.         The Borrower hereby (i) reaffirms and admits the validity and enforceability of
each Loan Document to which it is a party and its obligations thereunder, and agrees and admits that (a) it has no defense to any such obligation, (b) it shall not exercise any setoff or offset to any such obligation, and (c) to its
knowledge, it does not have any claim against any Credit Party arising out of the transactions contemplated by the Loan Documents, and (ii) represents and warrants that no Default has occurred and is continuing and that all of the
representations and warranties made by it in the Loan Documents are true and correct in all material respects, both immediately before and after giving effect to this Amendment. 

5.         This Amendment may be executed in any number of counterparts, each of which shall be
an original and all of which shall constitute one agreement. It shall not be necessary in making proof of this Amendment to produce or account for more than one counterpart signed by the party to be charged. 

6.         The Credit Agreement and the other Loan Documents shall in all other respects remain
in full force and effect, and no amendment herein in respect of any term or condition of any Loan Document shall be deemed to be an amendment or other modification in respect of any other term or condition of any Loan Document. 

7.         THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE
STATE OF NEW YORK, WITHOUT REGARD TO CONFLICT OF LAWS PRINCIPLES THAT WOULD REQUIRE THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION. 

[Remainder of page intentionally left blank] 
  

 2 

 IN WITNESS WHEREOF, the parties hereto have caused this Amendment No. 1 to be duly
executed and delivered by their proper and duly authorized officers as of the day and year first above written. 
  

			
	VIRTUS INVESTMENT PARTNERS, INC.
		
	By:	 	/s/ Michael A. Angerthal
	Name:	 	Michael A. Angerthal
	Title:	 	 Executive Vice President

& Chief Financial Officer

	
	THE BANK OF NEW YORK MELLON, individually, as Issuing Bank and as Administrative Agent
		
	By:	 	/s/ Richard G. Shaw
	Name:	 	Richard G. Shaw
	Title:	 	Vice President
	
	PNC BANK, NATIONAL ASSOCIATION
		
	By:	 	/s/ Cara Gentile
	Name:	 	Cara Gentile
	Title:	 	Vice President

  

 3f8k071210ex10i_celsius.htm

Exhibit 10.1

 

FORM OF

PROMISSORY NOTE

Borrower: Celsius Holdings, Inc., a Nevada corporation, authorized to do business in Florida as Celsius Products Holdings, Inc.

Borrower Address: 140 NE 4th Avenue, Suite C, Delray Beach, Florida 33483

Closing Date: July 12, 2010

Maturity Date: July 12, 2012

Principal Amount: $3,000,000

 

 FOR VALUE RECEIVED, CELSIUS HOLDINGS, INC., a Nevada corporation, authorized to do business in Florida as CELSIUS PRODUCTS HOLDINGS, INC. (hereinafter the “Borrower”), promises to pay to the order of CD FINANCIAL, LLC, a Florida limited liability company, its successors or assigns (hereinafter the “Lender”) at  3299 N. W. 2nd Avenue, Boca Raton, FL 33431 or such other place as Lender may from time to time designate in writing, the principal sum of THREE MILLION AND NO/100THS DOLLARS ($3,000,000.00) plus interest on the unpaid principal balance the fixed rate equal to five percent (5%) per annum (the “Note Rate”).

 

Interest shall be calculated on the principal balance, which from time to time is outstanding,  on the basis of a three hundred sixty (360) day year, based on the actual number of days elapsed in each month.  The rate of interest from time to time applicable to the unpaid balance of the principal shall be calculated on a monthly basis, and payments shall be made as follows:

Commencing on September 30, 2010 and continuing on each December 31, March 31, June 30 and September 30 thereafter, Borrower shall make quarterly payments of interest only at the Note Rate.  On July 12, 2012 (the “Maturity Date”), all outstanding and unpaid principal, all accrued and unpaid interest thereon and other charges or fees which are then due and owing from Borrower to Lender shall be immediately due and payable.

Subject to the terms and conditions herein, this Note is a non-revolving line of credit and provided there is no Event of Default (hereinafter defined) then existing under this Note, Lender shall advance funds to Borrower upon seven (7) days written request from Borrower with each advance being in a minimum principal amount of FIVE HUNDRED THOUSAND AND NO/100 DOLLARS ($500,000.00).  In no event shall the cumulative amount of advances under this Note disbursed from time to time be greater than the face amount of this Note.

 

Prior to the occurrence of an event of default (“Event of Default”), all payments made hereunder shall be applied first to interest due and payable hereunder, then to principal, then to all amounts due hereunder other than interest and principal as more particularly described herein or in the loan documents executed and delivered in connection with this Note (“Loan Documents”).  If an Event of Default has occurred and is continuing, all payments made hereunder may be applied to the sums due hereunder in a manner and order according to the sole discretion of Lender.

 

If any payment required to be paid pursuant to this Note is not paid in full within five (5) days after its scheduled due date, Lender may assess a late charge in the amount of five percent (5%) of the unpaid amount of the payment, or the maximum permitted by applicable law, whichever is less.

 

Failure to make any payment when due shall cause the entire remaining unpaid balance of principal and interest to be declared immediately due and payable at the option of the Lender without notice or demand.  Additional events of default hereunder and the rights and remedies of Lender upon the occurrence of such events of default are set forth herein, in the Loan and Security Agreement (“Loan Agreement”) and related Loan Documents of even date herewith executed and delivered by the Borrower in connection with this Note.

The Borrower and any endorser or guarantor of this Note each hereby waives, to the fullest extent permitted by law, presentment for payment, demand, protest, notice of non-payment or dishonor, notices of protest and all other demands and notices in connection with the delivery, performance and enforcement of this Note and waive all defenses that may be based on suretyship or impairment of collateral. This Note shall bear interest at the rate of the maximum permitted by applicable law (the "Default Rate"), after the Maturity Date hereof or following an Event of Default hereunder until paid in full.  If for any reason the Borrower is required to pay, or has paid, interest at a rate in excess of the maximum rate permitted by applicable law, then the interest rate shall be deemed to be reduced, automatically and immediately, to such maximum rate permitted, and interest payable hereunder shall be computed and paid at the maximum rate and the portion of all prior payments of interest in excess of the principal sum shall be applied as partial prepayments, notwithstanding any provision hereof prohibiting partial prepayments.

 

  

1

  

 

In the event Lender shall employ counsel to collect this obligation or administer, protect or foreclose the security given in connection herewith, the Borrower agrees to pay reasonable attorney's fees for services of such counsel whether or not suit is brought plus costs, including all court costs, incurred in connection herewith through appellate proceedings.

Borrower may prepay this Note in whole or in part at any time during the term of this Note.

This Note is secured by the following security documents of even date herewith which shall be incorporated by reference herein:

	
(i)  

	
Loan  and Security Agreement between Borrower and Lender;

	
(ii)  

	
UCC-1 Financing Statements delivered by Borrower, as debtor, to Lender, as secured party to be filed in the Public Records of Palm Beach County, Florida, with the Florida Secured Transactions Registry, and with the State of Nevada; and

any and all other related Loan Documents thereto from Borrower and Guarantor.

 

If suit is instituted to enforce the terms of this Note, the Courts of the State of Florida and the Federal Courts located in the State of Florida shall have non-exclusive personal jurisdiction over the Borrower, and the venue of the suit, at the option of Lender, may be laid in Palm Beach County, Florida. The Borrower agrees not to claim that Florida is an inconvenient place for trial.

 

This Note shall be construed and enforced in accordance with the substantive laws of the State of Florida. All capitalized terms used in this Note not defined herein are as defined in the Loan Documents.

The Borrower hereby agrees and consents that, in addition to any methods of service of process provided for under applicable law, all service of process in any such suit, action or proceeding in any state or federal court sitting in the State of Florida may be made by certified or registered mail, return receipt requested, directed to the Borrower at the following address: 140 N.E. 4th Avenue, Suite C, Delray Beach, Florida 33483.

 

THE BORROWER HEREBY EXPRESSLY AND IRREVOCAVBLY WAIVES  ANY CLAIM OR DEFENSE IN ANY SUCH ACTION OR PROCEEDING BASED ON ANY ALLEGED LACK OF PERSONAL JURISDICTION, IMPROPER VENUE, FORUM NON CONVENIENS OR ANY SIMILAR BASIS.  THE BORROWER SHALL NOT BE ENTITLED IN ANY SUCH ACTION OR PROCEEDING TO ASSERT ANY DEFENSE GIVEN OR ALLOWED UNDER THE LAWS OF ANY STATE OTHER THAN  THE LAWS OF THE STATE OF FLORIDA UNLESS SUCH DEFENSE IS ALSO GIVEN OR ALLOWED BY THE LAWS OF THE STATE OF FLORIDA.  NOTHING IN THIS NOTE SHALL AFFECT OR IMPAIR IN ANY MANNER OR TO THE EXTENT THE RIGHT OF LENDER TO COMMENCE LEGAL PROCEEDINGS OR OTHERWISE PROCEED AGAINST BORROWER IN ANY JURISDICTION OR TO SERVE PROCESS IN ANY MATTER PERMITTED BY LAW.

 

If this Note is mutilated, lost, stolen or destroyed, then upon surrender thereof (if mutilated) or receipt of evidence and indemnity (if lost, stolen or destroyed) the Borrower shall execute and deliver a new note of like tenor, which shall show all payments which have been made on account of the principal hereof.

 

BORROWER AND LENDER HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVE ANY AND ALL RIGHT THEY MAY HAVE TO A TRIAL BY JURY IN RESPECT TO ANY LITIGATION (INCLUDING BUT NOT LIMITED TO) ANY CLAIMS, CROSS-CLAIMS OR THIRD PARTY CLAIMS ARISING OUT OF, UNDER OR IN CONNECTION WITH  THIS  NOTE OR  THE TRANSACTION CONTEMPLATED HEREIN.  BORROWER ALSO HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVES, TO THE EXTENT PERMITTED BY LAW, ANY RIGHT IT MAY HAVE TO ANY SPECIAL INCIDENTIAL OR CONSEQUENTIAL DAMAGES.  BORROWER ACKNOWLEDGES THAT THE LENDER HAS BEEN INDUCED TO ENTER INTO THIS NOTE, BY, INTER ALIA, THE PROVISIONS OF THIS PARAGRAPH.

[balance of this page left intentionally blank]

  

2

  

 

BORROWER:

CELSIUS, INC., a Nevada corporation, authorized to do business in the State of

Florida as CELSIUS PRODUCTS, INC.

By: _____________________________

Name: ___________________________

As its: ________________________

                     (Corporate Seal)

Address:  140 N.E. 4th Avenue, Suite C

     Delray Beach, Florida 33483

STATE OF ____________      )

                                              ss:

COUNTY OF                               )

The foregoing instrument was acknowledged before me this July ___ 2010, by _______________________ as _______ President of CELSIUS, INC., a Nevada corporation, authorized to do business in Florida as CELSIUS PRODUCTS, INC. He is personally known to me or has produced a ___________ driver’s license as identification.

_________________________________

Notary Public, State of _______

My Commission Expires:         {Seal}

3

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