Document:

Exhibit 4.9 - Second Amendment To Loan Agreement

		

			 

		

		
			EXHIBIT 4.9
		

		
			SECOND AMENDMENT
		

		
			TO 
		

		
			LOAN AND SECURITY AGREEMENT
		

		
			 
		

		
			 
		

		
			            THIS SECOND AMENDMENT TO LOAN AND SECURITY AGREEMENT, dated as of March   15, 2013 (this “Second Amendment”), is entered into by and among (i) Calpian, Inc., a Texas corporation (“Borrower”), (ii) Granite Hill Capital Ventures, LLC, a Delaware limited liability company (“Granite Hill”), Sanjay Mehrotra, an individual, The Vayam Revocable Trust, The Swadesh Family Trust, Garg/ Shah GRAT Number 10, Garg/ Shah GRAT Number 9, Gaurav Garg & Komal Shaw Trust dated April 27, 2000 and Gaurav Gauba, an individual (collectively, the “New Lenders”) and each of the other lenders hereafter become a party hereto (collectively, together with Granite Hill and the New Lenders, the “Lenders” and each individually, a “Lender”), and (iii) Granite Hill, as agent for Lenders (Granite Hill, in such capacity, “Agent”), Calpian Residual Partners LP II (“Calpian II”) and Calpian Residual Partners LP IV (“Calpian IV”).
		

		
			 
		

		
			 
		

		
			RECITALS
		

		
			 
		

		
			            WHEREAS, Borrower, Agent and Lenders have entered into that certain Loan and Security Agreement, dated as of November 9, 2012 (as amended pursuant to that certain First Amendment to Loan and Security Agreement, dated as of February 27, 2013, as the same may be further amended, modified, supplemented or restated from time to time, the “Credit Agreement”); 
		

		
			 
		

		
			            WHEREAS, the parties hereto find it necessary and desirable to cause Borrower to issue certain additional Term Notes (as set forth in Section 5(b) below, the “New Term Notes”) in favor of the New Lenders, as Lenders under the Term Loan.
		

		
			 
		

		
			            NOW THEREFORE, in consideration of the foregoing premises and the agreements herein contained, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

		

		
			AGREEMENT
		

		
			 
		

			
			
				 1.
			

			
			
			Definitions.  All capitalized terms used in this Second Amendment and not otherwise defined herein shall have the meanings ascribed to such capitalized terms in the Credit Agreement.

			
			
				 2.
			

			
			
			New Lenders.  For the avoidance of doubt, the New Lenders shall be deemed to be “Lenders” and “Term Loan Lenders” under the Credit Agreement.

			
			
				 3.
			

			
			
			New Term Notes.  For the avoidance of doubt, the New Term Notes issued concurrently herewith and described in Section 5(b) below shall be deemed to be “Notes” and “Term Loan Notes” under the Credit Agreement.

		 

		

			 

		

 

		

			 

		

			
			
				 4.
			

			
			
			Representations and Warranties.  In order to induce Agent and Lenders to enter into this Second Amendment, Borrower hereby represents and warrants to Agent and Lenders as follows:

		
			(a)            After giving effect to this Second Amendment: (i) the representations and warranties contained in the Loan Documents (other than those that expressly speak as of a different date) are true, accurate and complete in all material respects as of the date hereof and (ii) no Default or Event of Default has occurred and is continuing;
		

		
			(b)            Borrower has the corporate power and authority to execute and deliver this Second Amendment and to perform its obligations under the Loan Documents to which it is a party;
		

		
			(c)            The organizational documents of Borrower delivered to Agent and Lenders pursuant to the Credit Agreement are true, accurate and complete and have not been amended, supplemented or restated and continue to be in full force and effect, except as certified to Agent and Lenders at the time of their delivery to Agent and Lenders;
		

		
			(d)            The execution and delivery by Borrower of this Second Amendment and the performance by Borrower of its obligations under the Credit Agreement and each of the other Loan Documents to which Borrower is a party have been duly authorized by all necessary corporate action on the part of Borrower;
		

		
			(e)            The execution and delivery by Borrower of this Second Amendment and the performance by Borrower of its obligations under the Loan Documents do not and will not contravene (i) any law or regulation binding on or affecting Borrower, (ii) the articles of incorporation or bylaws of Borrower, (iii) any order, judgment or decree of any court or other governmental or public body or authority, or subdivision thereof, binding on Borrower or (iv) any contractual restriction binding on or affecting Borrower;
		

		
			(f)            The execution and delivery by Borrower of this Second Amendment and the performance by Borrower of its obligations under each Loan Document to which it is a party do not require any order, consent, approval, license, authorization or validation of, or filing, recording or registration with, or exemption by any governmental or public body or authority, or subdivision thereof, binding on Borrower, except as already has been obtained or made; and
		

		
			(g)            This Second Amendment has been duly executed and delivered by Borrower and is the binding obligation of Borrower, enforceable against it in accordance with its terms, except as such enforceability may be limited by bankruptcy, insolvency, reorganization, liquidation, moratorium or other similar laws of general application and equitable principles relating to or affecting creditors’ rights.
		

		 

		

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				 5.
			

			
			
			Conditions Precedent.  The legal effectiveness of this Second Amendment is subject to the full satisfaction, in Agent and Lenders’ sole discretion, of the following conditions precedent:

		
			(a)            Borrower shall have duly executed this Second Amendment and delivered the same to Agent; and 
		

		
			(b)            Borrower shall have duly executed:
		

		
			(i) that certain Term Note, dated of even date herewith, made by Borrower in favor of Sanjay Mehrotra, an individual, in the original principal amount of $500,000;
		

		
			(ii) that certain Term Note, dated of even date herewith, made by Borrower in favor of The Vayam Revocable Trust, in the original principal amount of $3,500,000;
		

		
			(iii) that certain Term Note, dated of even date herewith, made by Borrower in favor of The Swadesh Family Trust, in the original principal amount of $2,500,000;
		

		
			(iv) that certain Term Note, dated of even date herewith, made by Borrower in favor of Garg/ Shaw GRAT Number 10, in the original principal amount of $500,000;
		

		
			(v) that certain Term Note, dated of even date herewith, made by Borrower in favor of Garg/ Shaw GRAT Number 9, in the original principal amount of $00,000;
		

		
			(vi) that certain Term Note, dated of even date herewith, made by Borrower in favor of Gaurav Garg & Komal Shaw Trust dated April 27, 2000, in the original principal amount of $1,000,000; and
		

		
			(vii) that certain Term Note, dated of even date herewith, made by Borrower in favor of Gaurav Gauba, an individual, in the original principal amount of $1,000,000. 
		

		
			(c)            Borrower shall have paid any and all fees that are due to Agent and/or Granite Hill, including, but not limited to (i) the estimated reasonable fees and expenses of Agent’s legal counsel in connection with preparation, negotiation and execution of this Second Amendment and (ii) all other fees and costs that are due to Agent and/or Granite Hill as contemplated by this Second Amendment.
		

			
			
				 6.
			

			
			
			Severability.  Any provision of this Second Amendment that is held by a court of competent jurisdiction to be invalid or unenforceable shall not impair or invalidate the remainder of this Second Amendment and the effect thereof shall be confined to the provisions so held to be invalid or unenforceable.

		 

		

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				 7.
			

			
			
			Successors and Assigns.  This Second Amendment is binding upon and shall inure to the benefit of Borrower, Agent, Lenders and their respective successors and permitted assigns, except as limited by applicable law and/or by the terms of the Credit Agreement.

			
			
				 8.
			

			
			
			Effect of this Second Amendment.  Except as expressly provided for in this Second Amendment, this Second Amendment shall not, in any way or manner, rescind, supplement or modify any existing term or provision of the Credit Agreement or any other Loan Document or waive or diminish any right or remedy of Agent or Lenders under the Credit Agreement, or any other Loan Document, at law in or equity.  All of the amendments set forth in this Second Amendment shall be effective as of the date hereof.

			
			
				 9.
			

			
			
			Further Assurances.  Borrower agrees that it shall do and perform such acts and execute and deliver such additional documents and instruments as may be necessary to effectuate the purposes of this Second Amendment, including, without limitation, documents and instruments relating to the perfection and continuation of the security interest of Lenders granted under the Credit Agreement.

			
			
				 10.
			

			
			
			Headings.  The headings in this Second Amendment are for purposes of reference only and shall not otherwise affect the meaning or interpretation of any provision hereof.

			
			
				 11.
			

			
			
			Governing Law.  THIS SECOND AMENDMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF CALIFORNIA, WITHOUT REGARD TO THE PRINCIPLES OF CONFLICT OF LAWS.

			
			
				 12.
			

			
			
			Integration.  Together with the Loan Documents, the Credit Agreement, as modified by this Second Amendment, constitute the entire agreement among the parties hereto and supersedes all prior and contemporaneous agreements, oral or written, among the parties concerning the subject matter hereof.  No term of this Second Amendment shall be amended, supplemented, modified or waived except by a writing signed by the parties hereto. 

			
			
				 13.
			

			
			
			Construction.  Each party to this Second Amendment has reviewed and participated in the formulation of the components of this Second Amendment.  Accordingly, this Second Amendment shall be construed simply according to its fair meaning and not strictly for or against any party. 

			
			
				 14.
			

			
			
			Attorneys’ Fees.  Borrower agrees to pay to Granite Hill, in addition to any other amounts otherwise due and owing to Agent and Lenders, all reasonable attorneys’ fees, costs and expenses incurred in connection with the preparation of this Second Amendment and the resolution of the matters discussed herein.  The parties hereto further agree that, in the event that any action or proceeding shall be commenced to enforce this Second Amendment or any right arising in connection 
		

		 

		

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		with this Second Amendment, the prevailing party in any such action or proceeding shall be entitled to recover from the other party the full amount of the reasonable attorneys’ fees, costs and expenses incurred by such prevailing party in connection with such action or proceeding.

			
			
				 15.
			

			
			
			Counterparts.  This Second Amendment may be executed in one or more counterparts, each of which shall be deemed an original, but all of which, taken together, shall constitute one and the same agreement.

		

		

		 

		

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

		
			 
		

		
			Borrower:
		

		
			 
		

		
			CALPIAN, INC., a Texas corporation

By: /s/ Harold H Montgomery
Name:  Harold H. Montgomery
Title:  Chief Executive Officer
		

		
			 
		

		
			Calpian II:
		

		
			 
		

		
			CALPIAN RESIDUAL PARTNERS LP II
		

		
			 
		

		
			By:/s/ Harold H Montgomery
Name:  Harold H. Montgomery
Title:  Chief Executive Officer
		

		
			 
		

		
			Calpian IV:
		

		
			 
		

		
			CALPIAN RESIDUAL PARTNERS LP IV
		

		
			 
		

		
			By: /s/ Harold H Montgomery
Name:  Harold H. Montgomery
Title:  Chief Executive Officer
		

		
			 
		

		
			Agent and Lender:
		

		
			 
		

		
			GRANITE HILL CAPITAL VENTURES, LLC,
		

		
			a Delaware limited liability company
		

		
			 
		

		
			By:_________________________
Name:
Title:
		

		
			 
		

		
			Lenders:

		

		
			_____________________________
Sanjay Mehrotra
		

		
			 
		

		
			The Vayam Revocable Trust
		

		
			 
		

		
			By:__________________________
		

		
			Name: Sanjay Subhedar
Title:  Trustee
		

		

		

		 

		

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			The Swadesh Family Trust
		

		
			 
		

		
			By:__________________________
Name:  Swadesh Singh
		

		
			Title:    Trustee
		

		
			 
		

		
			Garg/Shah GRAT Number 10
		

		
			 
		

		
			By:__________________________
Name:  Gaurav Garg
		

		
			Title:            Trustee
		

		
			 
		

		
			Garg/Shah GRAT Number 9
		

		
			 
		

		
			By:__________________________
Name:  Gaurav Garg
		

		
			Title:            Trustee
		

		
			 
		

		
			Gaurav Garg & Komal Shah Trust dated April 27, 2000
		

		
			 
		

		
			By:__________________________
Name:  Gaurav Garg
		

		
			Title:            Trustee
		

		
			 
		

		
			Gaurav Garg & Komal Shah Trust dated April 27, 2000
		

		
			 
		

		
			By:__________________________
Name:  Gaurav Garg
		

		
			Title:            Trustee
		

		
			 
		

		
			__________________________
Gaurav Gauba
		

		
			 
		

		
			 
		

		
			307108279.4 
		

		 

		

			7ex10-1.htm

Exhibit 10.1

 

 Investment agreement in

Mei County Kiwi Comprehensive Deep Processing Zone

 

Party A: Managing Committee of Mei County National Kiwi Fruit Wholesale Trading Center (Party A has been authorized by the People’s Government of Mei County to be in charge of the construction and administration of the Mei County National Kiwi Fruit Wholesale Trading Center)   (hereinafter referred to as “Party A”)

 

Party B: SkyPeople Juice Group Company Limited (hereinafter referred to as “Party B”)

 

To respond to the call of the nation and accelerate the development of the local economy of Mei County, through multiple discussions and field studies, and based on the principles of equal consultation and mutual benefit, this agreement has been reached by both parties, with regard to the Mei County Kiwi Fruit Comprehensive Deep Processing Zone project, which shall be observed by both parties.

 

I.      Name of the Project

 

Kiwi Fruit Comprehensive Deep Processing Zone (the specific name shall be subject to approval by the local authority of the National Development and Reform Commission).

 

II.     Project Construction

 

Party B shall be responsible for investment and construction of the project. The planned amount of investment is RMB 445.6 million (approximately US$ 71.9 million), including two different functioning zones located in total planned area of 286 mu (approximately 47 acre) in size, among which:

 

	
1)  

	
Kiwi Fruit comprehensive deep processing zone: planned amount of investment of RMB 294.3 million (approximately US$ 47.5 million) with planned area of 150 mu (approximately 24.7 acre), including establishment of:

 

	
a)  

	
concentrated kiwi fruit puree production line(s)

 

 

	
b)  

	
kiwi fruit juice beverages production line(s)

 

	
c)  

	
specialty fruits & vegetables quick-frozen production line(s)

 

	
d)  

	
kiwi fruit pectin production line(s) and kiwi fruit seeds oil extraction line(s), and

 

	
e)  

	
supporting facilities, such as food safety inspection center;

 

	
2)  

	
Kiwi fruit and fruit-related materials trading zone: planned amount of investment of RMB 151.3 million (approximately US$ 24.4 million) with planned area of 136 mu (approximately 22.4 acre), including the construction of:

 

	
a)  

	
a trading mall with trading venue in the front and storage in the rear;

 

	
b)  

	
fruit trading shelter; and

 

	
c)  

	
fruit-related materials trading shelter, etc.

 

  

  

  

 

III.      Project Site Selection

 

After the field studies and site selection by Party A and Party B, both parties agree that the project shall be built on a parcel of land of approximately 286 mu in size located at Yangjia Village, Changxing Town of Mei County . (.The specific location of the Project Land shall be subject to the description set forth in the site selection approval issued by Mei County Land Bureau and the actual size of the Project Land shall be subject to the red line map issued by the Land Bureau in Mei County).

 

IV. Project Submission and Approval

 

	
1)  

	
Party A shall be responsible for handling application of approval on Project environment impact assessment of Kiwi Comprehensive Deep Processing Zone on behalf of Party B.  Party A shall complete the approval documents of environment impact assessment from provincial and state environmental protection department (shall be subject to the limits of legal authorities) and Party A shall deliver the approval documents to the Party B within 60 days after this agreement has been entered into, then Party B shall commence construction of the project.

 

	
2)  

	
Party A agrees to Party B’s establishment of a number of separate companies for administrative and operational purposes of the project based on nature and characteristics of the project. Party A shall designate relevant functioning departments of its own to facilitate Party B in registering companies, establishing project and applying approvals of fire, safety, etc. Companies established by Party B for the purpose of this project shall enjoy the same preferential policies of this agreement.

 

	
3)  

	
Party A shall provide a list of documents and materials required for application of relevant approvals to Party B; and Party B shall provide such documents to Party A. Party A shall designate specific staff to facilitate Party B’s approvals listed above.

 

V.   Project Land and Related Issues

 

	
1)  

	
Land Grant Fee, the total amount of consideration for transferring the land use right of the Project Land to Party B shall be RMB 0.3 million per mu, including all fees that are payable to all state and local government departments. Party A guarantees to deliver the Project Land, free from any issues to Party B at the price of RMB 0.3 million per mu, and also facilitate Party B applying for certificate of land use right of the project land for Party B. The nature and term of the land use right of the Project Land shall be subject to the corresponding laws, rules and regulations.

 

	
2)  

	
Within 30 days after this agreement has been entered into, Party B shall prepay 50% of Land Grant Fee based on the land measurement area provided by Party A, which shall be paid into the designated account after Party A issued the payment notice to Party B.  The remaining balance of the Land Grant Fee shall be paid after Party A issued the second payment notice to Party B within 30 days following the date of land delivery and then Party B shall pay remaining balance of Land Grant Fee calculated on the actual land delivered to Party B.

 

	
3)  

	
Party A guarantees to finish the house demolition work on the Project Land and deliver the Project Land to Party B within 20 days after this agreement has been entered into. Party A guarantees that the land to be delivered to Party B shall be free of any liabilities or any pending disputes. Party A shall be responsible for demolition, arrangement and compensation work on the Project Land and bear all relative costs. Party B shall bear no liability or responsibility for such work and costs.

 

  

  

  

 

	
  

	
4.1  Party A shall be responsible for the financing and construction of the basic infrastructure surrounding the Project Land, such as the main water supply, main water drainage, main power supply, main roads, natural gas provision and communications network. The infrastructure of the ancillary facilities constructed by Party A shall satisfy the requirements of Party B to ensure Party B’s normal construction and production with respect to the project.

 

4.2  Party A agrees to dig a well on the Project Land for water to be used for living and construction purposes. Party A shall instruct relevant department in charge of water resources management for application of relevant approvals and provide hydrologic data.

 

4.3  Party A agrees to establish sewage treatment plants on the project land to recycle sewage. No fees shall be payable by Party B for discharge of sewage after treatment into main water drainage.

 

4.4  Party A shall be responsible for providing electricity supply to the Project Land meeting electricity demand of construction and operation demand.  Party A shall be responsible for providing double circuit power supply that is greater than 3000KAV.

 

4.5   Party A shall guarantee the supply of natural gas to the Project Land to meet natural gas demand of the construction and living.

 

4.6   Party A shall be responsible for roads outside of the Project Land to meet Party B’s construction and production demand.

 

VI. Project construction and related issues

 

	
  

	
1.  Party A shall deal with the application of approval on Project environment impact assessment of Kiwi Comprehensive Deep Processing Zone within 60 days after entering into this agreement. Party B shall commence construction of the project within 30 days after Party A delivered all the land.

 

	
  

	
2.  During the project construction, P arty A shall actively cooperate with Party B on construction work, assist Party B to coordinate and solve the project construction difficulties and interference.

 

	
  

	
3.  Party B shall be responsible for project construction, Party A shall permit Party B to independently engage the construction team, purchase materials of the project construction and other matters related to this project.

 

VII.  Application for Land Use Right Certificate and Related Building Ownership Certificate for the Project

 

	
1)  

	
Party A shall be responsible for completing the application of and delivering of land use right certificate of the Project Land to Party B of project land within 6 months after Party B has commenced construction of the project.

 

	
2)  

	
The real estate management department of Party A shall issue Building Ownership Certificates with respect to the buildings constructed by Party B for the Project within 30 days upon submission of the relevant materials by Party B.

 

	
3)  

	
Party B shall enjoy the most preferential policies for fees payable upon application of Building Ownership Certificate.

 

  

  

  

 

VIII. Labor Employment for the Project

 

 

Party A shall permit Party B to independently recruit employees; provided any recruitment shall be in compliance with the labor laws and regulations of the People’s Republic of China. As compared with candidates with similar qualifications, residents whose land is acquired for the Project shall be given preference.

 

VIIII. Projects Preferential Policies

 

	
1)  

	
The Project shall qualify for preferential policies of Mei County, Baoji and Shaanxi for the purposes of attracting investment.

 

	
2)  

	
During the construction process of the Project and after it has commenced production, Party A shall support to apply for all financial support to Party B from state and local government.

 

	
3)  

	
Party A shall organize a special working group made up of relevant officials to coordinate and assist on the project.

 

	
4)  

	
During the construction process of the project and after it has commenced production, Party A shall support the local financial institutions in their providing commercial loans to Party B.

 

	
5)  

	
If new states policies are promulgated that are relevant to the Project, such new policies shall govern.

 

X.   Related-issues after the completion of the project

 

The ownership interests of all the buildings and the facilities related to this project belong to Party B. Party B shall pay taxes to Party A according to corresponding laws, rules and regulations of the state and local government. When the state or the local government issued preferential tax policies, Party A shall promptly notify and actively support Party B to enjoy preferential tax policies.

 

XI.  Liabilities for breaching the contract

 

	
  

	
1.  If Party A fails to deliver the land at the appointed time, for each day of delay Party A shall pay Party B 1‰ of the total land grant fee as a liquidated damages fee. If Party A fails to deliver the land more than 3 months of the appointed time, Party B has right to terminate this agreement. Then Party A shall refund the land grant fee paid by Party B and pay the interest according to the bank’s loan interest to Party B, within 7 days when received the termination notice from Party B.

 

	
  

	
2.  If Party A fails to finish environment impact assessment for Party B and such failure extends more than 3 months, Party B shall have the right to terminate this agreement. Party A shall pay to Party B the losses incurred according to this agreement.

 

	
  

	
3.  If any party breaches this agreement (except the above two items under article XI) and caused losses to the other party, the breaching party shall compensate the other party for such losses.

 

XII.  Project Dispute Settlement

 

	
  

	
1.  Where any dispute arising during the performance of the agreement, both parties shall solve through friendly negotiation.

 

	
  

	
2.  In case dispute can not to be solved through negotiation, such dispute shall be submitted to the competent arbitration committee.

  

  

  

 

XIII.  Miscellaneous

 

	
  

	
1.  In term of the issues unmentioned in the agreement, the two parties could stipulate by signing a supplementary agreement which has equal legal effectiveness with the agreement.

 

2.  The agreement is in 4 copies. Each Party holds two copies which have equal legal effectiveness. 

 

3.  The agreement comes into effect when the legal representatives of both parties affixed their signatures and seals on it.

     

      

 

Party A: Managing Committee of Mei County National Kiwi Fruit Wholesale Trading Center

 

Legal Representative: /s/ Dongke Liu

 

Party B: SkyPeople Juice Group Company Limited

 

Legal Representative: /s/ Hongke Xue

 

Date: April 3, 2013

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