Document:

Exhibit 10.1

EXHIBIT 10.1

Execution Copy

 

CSS Industries, Inc.

 

Second Amendment

Dated as of March 25, 2009

to

Note Purchase Agreements

Dated as of December 12, 2002

 

Re: $50,000,000 4.48% Senior Notes due December 13, 2009

 

 

 

 

			
	 	 	 
	CSS Industries, Inc.
	 	Second Amendment

Second Amendment to Note Purchase Agreements

This Second Amendment dated as of March 25, 2009 (the or this “Second Amendment”) to
the Note Purchase Agreements dated as of December 12, 2002 is between CSS Industries,
Inc., a Delaware corporation (the “Company”), and each of the institutions which is a
signatory to this Second Amendment (collectively, the “Noteholders”).

R e c i t a l s:

A. The Company and each of Connecticut General Life Insurance Company, Nationwide Life
Insurance Company, Pacific Life Insurance Company, Nationwide Life Insurance Company of America,
and Nationwide Life and Annuity Insurance Company have heretofore entered into separate and several
Note Purchase Agreements each dated as of December 12, 2002, as amended by the First Amendment to
Note Purchase Agreement Dated as of October 27, 2004 (as amended, the “Note Purchase Agreements”).
The Company has heretofore issued $50,000,000 aggregate principal amount of its 4.48% Senior Notes
due December 13, 2009 (the “Notes”) pursuant to the Note Purchase Agreements. The Notes held by
Connecticut General Life Insurance Company were heretofore transferred to Prudential Retirement
Insurance and Annuity Company.

B. The Company and the Noteholders now desire to amend the Note Purchase Agreements in the
respects, but only in the respects, hereinafter set forth.

C. Capitalized terms used herein shall have the respective meanings ascribed thereto in the
Note Purchase Agreements, as amended by this Second Amendment, unless herein defined or the context
shall otherwise require.

D. All requirements of law have been fully complied with and all other acts and things
necessary to make this Second Amendment a valid, legal and binding instrument according to its
terms for the purposes herein expressed have been done or performed.

Now, Therefore, upon the full and complete satisfaction of the conditions precedent
to the effectiveness of this Second Amendment set forth in Section 4.1 hereof, and in consideration
of good and valuable consideration the receipt and sufficiency of which is hereby acknowledged, the
Company and the Noteholders do hereby agree as follows:

Section 1. Amendments.

Section 1.1. Sections 7.1(a) and (b) of the Note Purchase Agreements shall be and is hereby
amended to read in its entirety as follows:

(a) Quarterly Statements — promptly, and in any event within
forty-five (45) days (or such shorter period as the SEC may require)
after the end of each of the first three quarterly fiscal periods in
each fiscal year of the Company, as at the end of such
quarterly fiscal period setting forth, in each case, in comparative
form the corresponding figures for the corresponding periods of the
previous fiscal year, duplicate copies of

(i) a balance sheet and a statement of income, in each case, on
a consolidated and consolidating basis for the Company and its
Subsidiaries, and

 

 

 

			
	 	 	 
	CSS Industries, Inc.
	 	Second Amendment

(ii) a cash flow statement on a consolidated basis for the
Company and its Subsidiaries,

all in reasonable detail and certified by the chief financial
officer, treasurer or vice president of finance of the Company to
have been prepared in accordance with GAAP (without footnotes) and
as fairly presenting, in all material respects, the financial
position of the companies being reported on and their results of
operations and cash flows, subject to changes resulting from
year-end adjustments; provided, that any election by the Company to
measure an item of Indebtedness in such financial statements using
fair value (as permitted by Statement of Financial Accounting
Standards No. 159 or any similar accounting standard) shall be
disregarded and such determination shall be made as if such election
had not been made;

(b) Annual Statements — promptly, and in any event within
ninety (90) days (or such shorter period as the SEC may require)
after the end of each fiscal year of the Company, as at the end of
such fiscal year, setting forth, in each case, in comparative form
the corresponding figures as at the end of the previous fiscal year,
duplicate copies of

(i) a balance sheet and a statement of income, in each case, on
a consolidated and consolidating basis for the Company and its
Subsidiaries, and,

(ii) a cash flow statement and a retained earnings statement,
in each case, on a consolidated basis for the Company and its
Subsidiaries,

all in reasonable detail, audited and certified without
qualifications or limitations as to scope, except those which are
acceptable to the Required Holders, (as to the consolidated
statements) by independent public accountants of recognized
standing, selected by the Company and satisfactory to the Required
Holders, to have been prepared in accordance with GAAP and shall
state that such financial statements present fairly in all material
respects, the
financial position of the companies being reported upon and their
results of operations and cash flows; provided, that any election by
the Company to measure an item of Indebtedness in such financial
statements using fair value (as permitted by Statement of Financial
Accounting Standards No. 159 or any similar accounting standard)
shall be disregarded and such determination shall be made as if such
election had not been made;

 

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	CSS Industries, Inc.
	 	Second Amendment

Section 1.2. Section 10.3 of the Note Purchase Agreements shall be and is hereby amended to
read in its entirety as follows:

“Section 10.3. Fixed Charge Coverage Ratio. The Company will
not, at any time, permit the Fixed Charge Coverage Ratio to be less
than 1.15 to 1.”

Section 1.3. The definitions of “Consolidated Net Worth”, “Fixed Charge Coverage Ratio” and
“Leverage Ratio” set forth in Schedule B to the Note Purchase Agreements shall be and are hereby
amended in their entirety to read as follows:

“Consolidated Net Worth” means, as of the date of determination, all
items which, in accordance with GAAP, would be included under
shareholders’ equity on a consolidated balance sheet of the Company
and its Subsidiaries, as of the end of the immediately preceding
fiscal quarter of the Company; provided, that for purposes of
Section 10.2, determinations of Consolidated Net Worth shall exclude
all non-cash charges resulting from the application of Financial
Accounting Standard No. 142; provided, further, that for purposes of
determinations of Consolidated Net Worth, any election by the
Company to measure an item of Indebtedness using fair value (as
permitted by Statement of Financial Accounting Standards No. 159 or
any similar accounting standard) shall be disregarded and such
determination shall be made as if such election had not been made.

“Fixed Charge Coverage Ratio” means, at any time, the ratio of (a)
the sum of the Company’s (i) Consolidated EBITDA for the period of
four consecutive fiscal quarters ending on, or most recently ended
prior to, such time, less (ii) Consolidated Capital Expenditures for
such period, plus (iii) Consolidated Rental Payments for such period
to (b) the sum of (i) the current portion of principal on all
long-term Indebtedness of the Company and its Subsidiaries
(excluding the Revolving Credit Loan, the Accounts Receivable
Securitization and any other Qualifying Securitization Transactions)
for such period, plus (ii) Consolidated Interest Expense of the
Company (including interest in respect of

 

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	CSS Industries, Inc.
	 	Second Amendment

the Revolving Credit Loan,
Discount (as defined in the Accounts
 Receivable Securitization Documents) payable in respect of the
Accounts Receivable Securitization and interest in respect of
amounts outstanding under all financing facilities relating to any
other Qualifying Securitization Transactions) for such period, plus
(iii) Consolidated Tax Expense of the Company for such period, plus
(iv) Consolidated Rental Payments for such period; provided, that
for purposes of determinations of the Fixed Charge Coverage Ratio,
any election by the Company to measure an item of Indebtedness using
fair value (as permitted by Statement of Financial Accounting
Standards No. 159 or any similar accounting standard) shall be
disregarded and such determination shall be made as if such election
had not been made.

“Leverage Ratio” means, at any time, the ratio of (a) Consolidated
Funded Debt of the Company as of the end of the immediately
preceding fiscal quarter to (b) Consolidated Capitalization of the
Company as of the end of such immediately preceding fiscal quarter;
provided, that for purposes of determinations of the Leverage Ratio,
any election by the Company to measure an item of Indebtedness using
fair value (as permitted by Statement of Financial Accounting
Standards No. 159 or any similar accounting standard) shall be
disregarded and such determination shall be made as if such election
had not been made.

Section 2. [Reserved].

Section 3. Representations and Warranties of the Company.

Section 3.1. To induce the Noteholders to execute and deliver this Second Amendment (which
representations shall survive the execution and delivery of this Second Amendment), the Company
represents and warrants to the Noteholders that:

(a) this Second Amendment has been duly authorized, executed and delivered by it and
this Second Amendment constitutes the legal, valid and binding obligation, contract and
agreement of the Company enforceable against it in accordance with its terms, except as
enforcement may be limited by bankruptcy, insolvency, reorganization, moratorium or similar
laws or equitable principles relating to or limiting creditors’ rights generally;

(b) the Note Purchase Agreements, as amended by this Second Amendment, constitute the
legal, valid and binding obligations, contracts and agreements of the Company enforceable
against it in accordance with their respective terms, except as enforcement may be limited
by bankruptcy, insolvency, reorganization, moratorium or similar laws or equitable
principles relating to or limiting creditors’ rights generally;

 

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	CSS Industries, Inc.
	 	Second Amendment

(c) the execution, delivery and performance by the Company of this Second Amendment (i)
has been duly authorized by all requisite corporate action and, if required, shareholder
action, (ii) does not require the consent or approval of any governmental or regulatory body
or agency, and (iii) will not (A) violate (1) any provision of law, statute, rule or
regulation or its certificate of incorporation or bylaws, (2) any order of any court or any
rule, regulation or order of any other agency or government binding upon it, or (3) any
provision of any material indenture, agreement or other instrument to which it is a party or
by which its properties or assets are or may be bound, including, without limitation, the
Bank Loan Agreement or (B) result in a breach or constitute (alone or with due notice or
lapse of time or both) a default under any indenture, agreement or other instrument referred
to in clause (iii)(A)(3) of this Section 3.1(c);

(d) as of the date hereof and after giving effect to this Second Amendment, no Default
or Event of Default has occurred which is continuing; and

(e) (i) all the representations and warranties contained in Section 5 of the Note
Purchase Agreements were true and correct on and as of the date of the Closing, (ii) the
representations and warranties contained in Sections 5.1, 5.2, 5.4(a), 5.4(b), 5.4(c), 5.8,
5.11, 5.12, 5.15(b), 5.17 and 5.18 of the Note Purchase Agreements are true and correct in
all material respects with the same force and effect as if made by the Company on and as of
the date hereof, except for changes in the Schedule of Subsidiaries as set forth in Schedule
5.4 to this Agreement, and (iii) since March 31, 2008, there has been no change in the
financial condition, operations, business, properties or prospects of the Company or any
Subsidiary except changes that individually or in the aggregate could not reasonably be
expected to have a Material Adverse Effect.

Section 4. Conditions to Effectiveness of this Second Amendment.

Section 4.1. This Second Amendment shall not become effective until, and shall become
effective when, each and every one of the following conditions shall have been satisfied:

(a) executed counterparts of this Second Amendment, duly executed by the Company and
the holders of at least 51% of the outstanding principal of the Notes, shall have been
delivered to the Noteholders, and the same shall be in full force and effect and shall
constitute the legal, valid and binding obligations of all the parties thereto;

(b) the Noteholders shall have received a copy of the resolutions of the Board of
Directors of the Company authorizing the execution, delivery and performance by the Company
of this Second Amendment, certified by its Secretary or an Assistant Secretary;

(c) the representations and warranties of the Company set forth in Section 3 hereof are
true and correct on and with respect to the date hereof;

 

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	CSS Industries, Inc.
	 	Second Amendment

(d) each holder of the Notes shall have received an amendment fee in an amount equal to
0.25% times the aggregate outstanding principal amount of the Notes held by such holder; and

(e) the Company shall have paid, the reasonable fees and expenses of Chapman and Cutler
LLP, counsel to the Noteholders, in connection with the negotiation, preparation, approval,
execution and delivery of this Second Amendment.

Upon receipt of all of the foregoing, this Second Amendment shall become effective.

Section 5. Miscellaneous.

Section 5.1. This Second Amendment shall be construed in connection with and as part of each
of the Note Purchase Agreements, and except as modified and expressly amended by this Second
Amendment, all terms, conditions and covenants contained in the Note Purchase Agreements and the
Notes are hereby ratified and shall be and remain in full force and effect.

Section 5.2. Any and all notices, requests, certificates and other instruments executed and
delivered after the execution and delivery of this Second Amendment may refer to the Note Purchase
Agreements without making specific reference to this Second Amendment but nevertheless all such
references shall include this Second Amendment unless the context otherwise requires.

Section 5.3. The descriptive headings of the various Sections or parts of this Second
Amendment are for convenience only and shall not affect the meaning or construction of any of the
provisions hereof.

Section 5.4. This Second Amendment shall be governed by and construed in accordance with New
York law.

 

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	CSS Industries, Inc.
	 	Second Amendment

Section 5.5. The execution hereof by you shall constitute a contract between us for the uses
and purposes hereinabove set forth, and this Second Amendment may be executed in any number of
counterparts, each executed counterpart constituting an original, but all together only one
agreement.

	 	 	 	 	 
	 	CSS Industries, Inc.

 	 
	 	By:  	/s/  Clifford E. Pietrafitta
 	 
	 	 	Its: Vice President — Finance 	 

[Noteholder Signature Pages to Follow]

 

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Accepted and Agreed to:

	 	 	 	 	 
	 	Prudential Retirement Insurance

and Annuity Company

 	 
	 	By:  	Prudential Investment Management, Inc.,

 as investment manager
 	 
	 	 	 
	 	By:  	                                                       /s/  Yvonne M. Guajardo
 	 
	 	 	Name:  	Yvonne M. Guajardo 	 
	 	 	Title:  	Vice President 	 

CSS Industries, Inc. — Second Amendment

 

 

 

	 	 	 	 	 
	 	Nationwide Life Insurance Company

Nationwide Life Insurance Company of
America

Nationwide Life and Annuity Insurance
Company

 	 
	 	By:  	/s/  Mary Beth Cadle
 	 
	 	 	Name:  	Mary Beth Cadle 	 
	 	 	Title:  	Authorized Signatory 	 

CSS Industries, Inc. — Second Amendment

 

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	Pacific Life Insurance Company

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 	 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

CSS Industries, Inc. — Second Amendment

 

 

 

Each of the undersigned hereby confirms its continued guaranty of the obligations of the
Company under the Note Purchase Agreements, as amended hereby, pursuant to the terms of its
respective Subsidiary Guaranty Agreement dated as of December 13, 2002, on this 25th day of March,
2009.

	 	 	 	 	 
	 	Paper Magic Group, Inc., 
a Pennsylvania
corporation

 	 
	 	By:  	/s/  Clifford E. Pietrafitta
 	 
	 	 	Name:  	Clifford E. Pietrafitta 	 
	 	 	Title:  	Vice President 	 
	 
	 	Berwick Delaware, Inc.

 	 
	 	By:  	/s/  Clifford E. Pietrafitta
 	 
	 	 	Name:  	Clifford E. Pietrafitta 	 
	 	 	Title:  	President 	 
	 
	 	Berwick Offray LLC

 	 
	 	By:  	/s/  Clifford E. Pietrafitta
 	 
	 	 	Name:  	Clifford E. Pietrafitta 	 
	 	 	Title:  	Vice President 	 
	 
	 	Cleo Inc.

 	 
	 	By:  	/s/  Clifford E. Pietrafitta
 	 
	 	 	Name:  	Clifford E. Pietrafitta 	 
	 	 	Title:  	Vice President 	 

CSS Industries, Inc. — Second Amendment

 

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	Cleo Delaware, Inc.

 	 
	 	By:  	/s/  Clifford E. Pietrafitta
 	 
	 	 	Name:  	Clifford E. Pietrafitta 	 
	 	 	Title:  	President 	 
	 
	 	Philadelphia Industries, Inc.

 	 
	 	By:  	/s/  Clifford E. Pietrafitta
 	 
	 	 	Name:  	Clifford E. Pietrafitta 	 
	 	 	Title:  	President 	 
	 
	 	LLM Holdings, Inc.

 	 
	 	By:  	/s/  Clifford E. Pietrafitta
 	 
	 	 	Name:  	Clifford E. Pietrafitta 	 
	 	 	Title:  	President 	 
	 
	 	The Paper Magic Group, Inc., 
a Delaware
corporation

 	 
	 	By:  	/s/  Clifford E. Pietrafitta
 	 
	 	 	Name:  	Clifford E. Pietrafitta 	 
	 	 	Title:  	President 	 
	 
	 	Don Post Studios, Inc.

 	 
	 	By:  	/s/  Clifford E. Pietrafitta
 	 
	 	 	Name:  	Clifford E. Pietrafitta 	 
	 	 	Title:  	Vice President 	 

 

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	Crystal Creative Products, Inc.

 	 
	 	By:  	/s/  Clifford E. Pietrafitta
 	 
	 	 	Name:  	Clifford E. Pietrafitta 	 
	 	 	Title:  	Vice President 	 
	 
	 	CSS Management LLC

 	 
	 	By:  	/s/  Clifford E. Pietrafitta
 	 
	 	 	Name:  	Clifford E. Pietrafitta 	 
	 	 	Title:  	Vice President 	 
	 
	 	Lion Ribbon Company, Inc.

 	 
	 	By:  	/s/  Clifford E. Pietrafitta
 	 
	 	 	Name:  	Clifford E. Pietrafitta 	 
	 	 	Title:  	Vice President 	 
	 
	 	C.R. Gibson, LLC

 	 
	 	By:  	/s/  Clifford E. Pietrafitta
 	 
	 	 	Name:  	Clifford E. Pietrafitta 	 
	 	 	Title:  	Vice PresidentExhibit 10.2.1

EXHIBIT
10.2.1

CERTIFICATION REGARDING DIRECTORS’ RESOLUTIONS

Dated:
as of March 30, 2009

The undersigned, Salvatore M. Quadrino, the Chief Financial Officer and Chief Executive
Officer of HELIOS & MATHESON NORTH AMERICA INC., formerly known as The A Consulting Team, Inc.,
a New York corporation with its principal executive office and principal place of business at
200 Park Avenue South, Suite 901, New York, New York 10003, does hereby certify to Keltic
Financial Partners, LP, on and as of the date first above written that the following is a true
and correct copy of resolutions duly adopted in writing on March 30, 2009, at a duly called
meeting of the directors of HELIOS & MATHESON NORTH AMERICA INC., formerly known as The A
Consulting Team, Inc., and that the same are in full force and effect:

WHEREAS, the Board of Directors (the “Board”) of HELIOS &
MATHESON NORTH AMERICA INC., formerly known as The A Consulting
Team, Inc. (“Helios & Matheson”) has determined, in its best
judgment, that it is in the best interests of Helios & Matheson that
Helios & Matheson enter into that certain “Amendment No. 1 to Loan
Documents” which amends that certain Restated and Amended Loan and
Security Agreement (the “Loan Agreement”) dated as of June 27, 2007,
by and between Helios & Matheson and Keltic Financial Partners, LP
(“Keltic”), whereby Keltic is extending to Helios & Matheson a
revolving credit facility in the aggregate principal amount of
$1,000,000;

NOW THEREFORE BE IT

RESOLVED, that the aforesaid “Amendment No. 1 to Loan Documents”
which amends the aforesaid Restated and Amended Loan and Security
Agreement, together with such other documents and agreements, are
hereby approved and adopted, and each of the officers of Helios &
Matheson is authorized on behalf of Helios & Matheson to execute
and deliver the aforesaid “Amendment No. 1 to Loan Documents”
substantially in the form approved, with such changes as the
officer executing the same may approve, such approval to be
conclusively evidenced by the execution and delivery thereof.

RESOLVED, that each officer of Helios & Matheson is authorized on
behalf of Helios & Matheson from time to time to execute and
deliver such certificates, notes, security agreements, instruments,
financing statements, and other documents contemplated by, or
related to, the Restated and Amended Loan
and Security Agreement, as amended, and do and perform such acts
and things as any of them, in his discretion, may deem necessary or
advisable in connection with the Restated and Amended Loan and
Security Agreement, as amended, or any related instrument, or in
connection with the exercise of the rights or the performance of
the obligations of Helios & Matheson thereunder.

 

 

 

GENERAL AUTHORIZATIONS

RESOLVED, that each officer of Helios & Matheson be, and each of
them hereby is, authorized and empowered to do and perform all
such further acts and things, and execute and deliver, all such
agreements, certificates, consents, instruments and documents and
to prepare or cause to be prepared, execute and file or cause to
be filed with any federal, state or other regulatory agencies any
reports, filings, applications or other documents, and to seek all
governmental or regulatory consents or approvals, required with
respect to the foregoing resolutions, and to do or cause to be
done all such further acts and things as may be necessary or
advisable under or in connection with the foregoing resolutions,
and the execution by an officer of Helios & Matheson of any of the
foregoing or the doing of any such act or thing shall be
conclusive evidence of a determination in that respect and
approval thereof; and it is further

CONFIRMED that Salvatore M. Quadrino is the Chief Financial
Officer and Chief Executive Officer of Helios & Matheson and an
authorized officer of Helios & Matheson for purposes of these
Resolutions.

RESOLVED, that all actions heretofore taken by any officer or
director of Helios & Matheson necessary or advisable under or in
connection with any of the foregoing resolutions are hereby
approved, ratified and confirmed in all respects as fully as if
such actions had been presented to this Board for its approval
prior to such actions being taken.

IN WITNESS WHEREOF, I have hereunto set my hand on and as of the date first above written

	 	 	 	 	 
	 	By:  	                                          /s/ Salvatore M. Quadrino
 	 
	 	 	Salvatore M. Quadrino 	 
	 	 	Chief Financial Officer and
Chief Executive Officer 	 

 

2

 

CERTIFICATION REGARDING

STOCKHOLDER’S AND DIRECTORS’ RESOLUTIONS

Dated:
as of March 30, 2009

The undersigned, Salvatore M. Quadrino, the Secretary and Treasurer of INTERNATIONAL OBJECT
TECHNOLOGY, INC., a corporation organized and existing under the laws of the State of New
Jersey, does hereby certify to Keltic Financial Partners, LP, on and as of the date first above
written that the following is a true and correct copy of resolutions duly adopted in writing on
March 30, 2009, at a duly called meeting of the sole stockholder and the directors of
INTERNATIONAL OBJECT TECHNOLOGY, INC., and that the same are in full force and effect:

WHEREAS, the stockholders and Board of Directors of INTERNATIONAL
OBJECT TECHNOLOGY, INC. (“IOT”)
have determined, in their best judgment, that it is in the best
interests of IOT that IOT enter into that certain Consent (the
“Consent”) dated as of March 30, 2009, which Consent reaffirms that
certain Guaranty of Payment and Performance (the “Guaranty”) dated
as of June 27, 2007, given by IOT to induce Keltic Financial
Partners, LP (“Keltic”) to extend to HELIOS & MATHESON NORTH
AMERICA INC., formerly known as The A Consulting Team, Inc., a New
York corporation with its principal executive office and principal
place of business at 200 Park Avenue South, Suite 901, New York,
New York 10003, a revolving credit facility in the aggregate
principal amount of $1,000,000, and by which IOT agrees to
unconditionally guaranty to Keltic punctual payment and performance
of the obligations under such credit facility;

NOW THEREFORE BE IT

RESOLVED, that the Consent, together with such other documents and
agreements, are hereby approved and adopted, and each of the
officers of IOT is authorized on behalf of IOT to execute and
deliver the Consent substantially in the form approved, with such
changes as the officer executing the same may approve, such
approval to be conclusively evidenced by the execution and delivery
thereof.

 

 

 

RESOLVED,
that each officer of IOT is authorized on behalf of
IOT from time to time to execute and deliver such certificates,
notes, security agreements, instruments, financing statements,
and other documents contemplated by, or related to, the Consent
and the Guaranty and do and perform such acts and things as any
of them, in his discretion, may deem necessary or advisable in
connection with the Consent and the Guaranty or any related
instrument, or in connection with the exercise of the rights or
the performance of the obligations of IOT thereunder.

CONFIRMED
that Salvatore M. Quadrino is the Secretary and
Treasurer of IOT and an authorized officer of IOT for purposes
of these Resolutions.

GENERAL AUTHORIZATIONS

RESOLVED, that each officer of IOT be, and each of them hereby
is, authorized and empowered to do and perform all such further
acts and things, and execute and deliver, all such agreements,
certificates, consents, instruments and documents and to prepare
or cause to be prepared, execute and file or cause to be filed
with any federal, state or other regulatory agencies any reports,
filings, applications or other documents, and to seek all
governmental or regulatory consents or approvals, required with
respect to the foregoing resolutions, and to do or cause to be
done all such further acts and things as may be necessary or
advisable under or in connection with the foregoing resolutions,
and the execution by an officer of IOT of any of the foregoing or
the doing of any such act or thing shall be conclusive evidence
of a determination in that respect and approval thereof; and it
is further

RESOLVED, that all actions heretofore taken by any officer or
director of IOT necessary or advisable under or in connection
with any of the foregoing resolutions are hereby approved,
ratified and confirmed in all respects as fully as if such
actions had been presented to this Board for its approval prior
to such actions being taken.

IN WITNESS WHEREOF, I have hereunto set my hand on and as of the date first above
written.

	 	 	 	 	 
	 	By:  	                                                /s/  Salvatore M. Quadrino
 	 
	 	 	Salvatore M. Quadrino 	 
	 	 	Secretary and Treasurer 	 

 

2

 

AMENDMENT NO. 1 TO LOAN DOCUMENTS

This Amendment No. 1 (the “Amendment”) dated as of March 30, 2009, is between

KELTIC FINANCIAL PARTNERS, LP, a
Delaware limited partnership, with a place of
business at 580 White Plains Road, Suite 610,
Tarrytown, New York 10591 (“Lender”),

and

HELIOS & MATHESON NORTH AMERICA INC., formerly
known as The A Consulting Team, Inc., a New York
corporation with its principal executive office and
principal place of business at 200 Park Avenue
South, Suite 901, New York, New York 10003
(hereinafter called “Borrower”).

RECITALS

A. Borrower has executed or has caused to be executed various documents
concerning credit extended by the Lender, including, without limitation, the
following
documents (the “Loan Documents”):

	 	1.	 	that certain Restated and Amended Loan and Security
Agreement dated June 27, 2007, between Lender and Borrower (the “Loan
Agreement”) relating to that certain $1,000,000 revolving loan (the
“Revolving Loan”) extended by Lender to Borrower;

	 	2.	 	Borrower’s certain Revolving Note evidencing the Revolving
Loan and made payable to the order of Lender and dated as of June 27, 2007,
in the original principal amount of $1,000,000.00 (the “Note”);

	 	4.	 	that certain instrument of guaranty entitled “Guaranty of
Payment and Performance” (the “Guaranty”) given INTERNATIONAL OBJECT
TECHNOLOGY, INC. (the “Corporate Guarantor”), and executed on September
27, 2007, but effective as of June 27, 2007;

	 	5.	 	the various Loan Documents referenced and described in the
Loan Agreement.

B. Lender and Borrower desire to amend the Loan Documents.

 

 

 

AGREEMENT

1.
Definitions. Capitalized terms used but not defined in this
Amendment shall have
the meaning given to them in the Loan Documents.

2. Amendments to Loan Agreement. The Loan Agreement is hereby amended as
follows:

2.1 Paragraph 1.57 entitled “Termination Date” is hereby deleted in its
entirety and the following is substituted in its place and stead (it being intended to reflect
the
extension of the “Termination Date” to December 31, 2009):

1.57
“Termination Date” shall mean the
earlier of December 31, 2009 or the date on which
Lender terminates this Agreement pursuant to
Section 18.1 hereof or Borrower terminates this
Agreement pursuant to Section 18.2.

2.2 Paragraph 8 1 entitled “Borrowing Base Certificate” is hereby deleted in
its entirety and the following is substituted in its place and stead (it being intended to
reflect a
requirement that Borrower must submit a Borrowing Base Certificate monthly unless Borrower
initiates borrowing under the Loan Agreement (which to date it has not), in which case
Borrower
must submit a Borrowing Base Certificate twice-monthly as well as
contemporaneously with
each request for an Advance):

8
1. Borrowing Base Certificate. A satisfactorily
completed and executed Borrowing Base Certificate
monthly (within 2 days after the end of each
month), provided, however, that if Borrower
initiates borrowing under the Loan Agreement,
Borrower must submit a satisfactorily completed
and executed Borrowing Base Certificate
twice-monthly, the first as at the 15th
day of each month (to be submitted within 2 days
after such date) and the second as at the end of
each month (within 2 days after the end of each
such month), as well as contemporaneously with
each request for an Advance.

3. Amendments to Note. Notwithstanding any other maturity date set forth in the
Note, the “Maturity Date” of the Note shall be December 31, 2009, unless the amounts due under
the Note are sooner paid or accelerated, all as provided in the Loan Agreement, the Note and
the other Loan Documents.

 

2

 

4. Representations
and Warranties. When Borrower signs this Amendment, Borrower
represents and warrants to Lender that: (a) there is no event which is, or with notice or
lapse of time or both would be, a default under the Loan Documents except those events, if
any, that have been disclosed in writing to Lender or waived in writing by Lender, (b) the
representations and warranties in the Loan Documents are true as of the date of this Amendment as
if made on the date of this Amendment, (c) this Amendment does not conflict with any law,
agreement, or obligation by which Borrower is bound, and (d) this Amendment is within Borrower’s
powers, has been duly authorized, and does not conflict with any of Borrower’s organizational
papers.

5. Conditions. This Amendment will be effective when Lender receives the
following items:

	 	5.1	 	Borrower’s execution of this Amendment.

	 
	 	5.2	 	Execution by the Corporate Guarantor of its consent attached
to this Amendment.

	 
	 	5.3	 	Payment by Borrower of a $5,000 extension fee to Lender.

	 
	 	5.4	 	Payment by Borrower of all costs, expenses and attorneys’ fees
(estimated to be $1,650) incurred by Lender in connection with this Amendment,
all of which may be paid by charge against the Revolving Loan.

6. Effect of Amendment. Except as provided in this Amendment, all of the
terms and conditions of the Loan Documents shall remain in full force and effect.

7. Counterparts. This Amendment may be executed in counterparts, each of which
when so executed shall be deemed an original, but all such counterparts together shall
constitute
but one and the same instrument.

8. FINAL AGREEMENT. BY SIGNING THIS DOCUMENT EACH PARTY
REPRESENTS AND AGREES THAT: (A) THIS DOCUMENT REPRESENTS THE
FINAL AGREEMENT BETWEEN PARTIES WITH RESPECT TO THE SUBJECT
MATTER HEREOF, (B) THIS DOCUMENT SUPERSEDES ANY COMMITMENT
LETTER, TERM SHEET OR OTHER WRITTEN OUTLINE OF TERMS AND
CONDITIONS RELATING TO THE SUBJECT MATTER HEREOF, UNLESS SUCH
COMMITMENT LETTER, TERM SHEET OR OTHER WRITTEN OUTLINE OF
TERMS AND CONDITIONS EXPRESSLY PROVIDES TO THE CONTRARY, (C)
THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES,
AND (D) THIS DOCUMENT MAY NOT BE CONTRADICTED BY EVIDENCE OF ANY
PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OR
UNDERSTANDINGS OF THE PARTIES.

 

3

 

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

	 	 	 	 	 	 	 
	 	 	KELTIC FINANCIAL PARTNERS, LP
	 
	 	 	 	 	 	 
	 	 	By:	 	KELTIC FINANCIAL SERVICES LLC,

its general partner
	 
	 	 	 	 	 	 
	 

	 	 	 	By:
	 	/s/ Olen Szczupak
	 

	 	 	 	 	 	 
	 

	 	 	 	 	 	Olen Szczupak, Executive Vice President
	 
	 	 	 	 	 	 
	 	 	HELIOS & MATHESON NORTH AMERICA INC.

formerly known as The A Consulting Team, Inc.)
	 
	 	 	 	 	 	 
	 	 	By:	 	/s/ Salvatore M. Quadrino
	 	 	 	 	 
	 	 	 	 	Salvatore M. Quadrino

Chief Financial Officer and Chief Executive Officer  

CONSENT OF THE CORPORATE GUARANTOR

The
undersigned INTERNATIONAL OBJECT TECHNOLOGY, INC., a New Jersey corporation with its
principal executive office and principal place of business at 77 Brant Road, Clark, New Jersey
07066 (i.e., the Corporate Guarantor named above): (i) consents to the above Amendment; (ii) agrees
and warrants that none of the provisions of this Consent or the foregoing Amendment in any way
impairs or lessens its liability on that certain instrument of guaranty entitled “Guaranty of
Payment and Performance” (the “Guaranty”) given by it to KELTIC FINANCIAL PARTNERS, LP (“Lender”)
on September 27, 2007, but effective as of June 27, 2007 and (iii) warrants and covenants to Lender
that all representations and warranties previously made by it to Lender are true, complete, and
accurate as of the date of this Amendment; and (iv) confirms to Lender all security interests and
liens heretofore granted by it to Lender.

IN WITNESS WHEREOF, the Corporate Guarantor has executed this Consent as of the date stated
at the beginning of the foregoing Amendment to which this Consent is
a part.

	 	 	 	 	 
	 	INTERNATIONAL OBJECT TECHNOLOGY, INC.

 
	 	By:  	/s/ Salvatore M. Quadrino
 	 
	 	 	Salvatore M. Quadrino 	 
	 	 	Secretary and Treasurer 	 

 

4

 

	 	 	 	 	 	 	 
	STATE OF NEW  JERSEY

	 	 	)	 	 	 
	 

	 	 	)	 	 	ss.:
	COUNTY OF UNION

	 	 	)	 	 	 

On
March 31st, 2009, before me, the undersigned, a notary public in and for said
state, personally appeared Salvatore M. Quadrino, personally known to me or proved to me on the
basis of satisfactory evidence to be the individual whose name is subscribed to the within
instrument and he acknowledged to me that he executed the same in his capacity as Chief Financial
Officer and Chief Executive Officer of HELIOS & MATHESON
NORTH AMERICA INC.,  formerly known as
The A Consulting Team, Inc., and also as Secretary and Treasurer of INTERNATIONAL OBJECT
TECHNOLOGY, INC., and that by his signature on the instrument, he executed the instrument in the
aforesaid capacity.

	 	 	 	 	 
	 

	 	 
	 	/s/ Jean Lovastik
	 

	 	 	 	 
	 

	 	(SEAL)	 	 

 

5

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