Document:

exv10w1

Exhibit 10.1

Lighting Science Group Corporation

Second Amendment To

 Bank of Montreal Loan Authorization Agreement and Demand Note

Dated August 24, 2009

Bank of Montreal

Chicago, Illinois

Ladies and Gentlemen:

     Reference is hereby made to (i) that certain Bank of Montreal Loan Authorization Agreement
dated as of July 25, 2008 (the Bank of Montreal Loan Authorization Agreement, as amended and as the
same may be amended from time to time, being referred to herein as the “Loan Agreement”), between
Lighting Science Group Corporation, a Delaware corporation (the “Borrower”) and Bank of Montreal
(the “Bank”) and (ii) that certain Demand Note dated as of July 25, 2008 (the Demand Note, as
amended and as the same may be amended from time to time, being referred to herein as the “Note”)
made by the Borrower payable to the order of the Bank. All capitalized terms used herein without
definition shall have the same meanings herein as such terms have in the Loan Agreement.

     The Borrower has requested that the Bank amend the “Maturity Date” section of the Loan
Agreement and make certain other amendments to the Loan Agreement and the Note, and the Bank is
willing to do so under the terms and conditions set forth in this agreement (herein, the
“Amendment”).

Section 1. Amendments.

     Subject to the satisfaction of all conditions precedent set forth in Section 2 below, the Loan
Agreement and the Note shall be and hereby are amended as follows:

     1.1. The date “August 24, 2009” appearing in the “Maturity Date” section of the Loan Agreement
shall be deleted and replaced with the date “August 24, 2010”.

     1.2. The date “August 24, 2009” appearing in Section 5 of the Loan Agreement shall be deleted
and replaced with the date “August 24, 2010”.

     1.3. The date “August 24, 2009” appearing in the first sentence of the Note shall be deleted
and replaced with the date “August 24, 2010”.

Section 2. Conditions Precedent.

     2.1. The Borrower and the Bank shall have executed and delivered this Amendment.

     2.2. The Borrower and the Bank shall have executed the Second Allonge to Demand Note dated as
of even date herewith.

 

 

     2.3. The Bank shall have received copies (executed or certified, as may be appropriate) of all
legal documents or proceedings taken in connection with the execution and delivery of this
Amendment to the extent the Bank or its counsel may reasonably request.

     2.4. Legal matters incident to the execution and delivery of this Amendment shall be
satisfactory to the Bank and its counsel.

     2.5. Pegasus Partners IV, L.P. shall have executed and delivered to the Bank its
acknowledgement and consent to this Amendment.

Section 3. Representations.

     In order to induce the Bank to execute and deliver this Amendment, the Borrower hereby
represents to the Bank that as of the date hereof the representations and warranties set forth in
the Loan Agreement are and shall be and remain true and correct and the Borrower is in compliance
with the terms and conditions of the Loan Agreement.

Section 4. Miscellaneous.

     4.1. Except as specifically amended herein, the Loan Agreement and the Note shall each
continue in full force and effect in accordance with its original terms. Reference to this
specific Amendment need not be made in the Loan Agreement, the Note, or any other instrument or
document executed in connection therewith, or in any certificate, letter or communication issued or
made pursuant to or with respect to the Loan Agreement, any reference in any of such items to the
Loan Agreement or the Note being sufficient to refer to the Loan Agreement or the Note, as
applicable, as amended hereby.

     4.2. This Amendment may be executed in any number of counterparts, and by the different
parties on different counterpart signature pages, all of which taken together shall constitute one
and the same agreement. Any of the parties hereto may execute this Amendment by signing any such
counterpart and each of such counterparts shall for all purposes be deemed to be an original. This
Amendment shall be governed by the internal laws of the State of New York.

[Signature Page to Follow]

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     This Second Amendment to Bank of Montreal Loan Authorization Agreement and Demand Note is
entered into as of the date first written above.

	 	 	 	 	 
	 	Lighting Science Group Corporation

 	 
	 	By:  	/s/ Kathryn L. Reynolds
 	 
	 	 	Printed Name: Kathryn L. Reynolds  	 
	 	 	Its: Chief Financial Officer 	 
	 

Accepted and agreed to.

	 	 	 	 	 
	 	Bank of Montreal

 	 
	 	By:  	/s/ Brett M. Sanchez
 	 
	 	 	Printed Name: Brett M. Sanchez 	 
	 	 	Its:                   Vice President 	 
	 

 

Guarantor’s Acknowledgement and Consent

Dated August 24, 2009

     The undersigned, Pegasus Partners IV, L.P., heretofore executed and delivered to the Bank a
Guaranty dated July 25, 2008 (as amended, the “Guaranty”). The undersigned hereby consents to the
Second Amendment to Bank of Montreal Loan Authorization Agreement and Demand Note set forth above
and confirms that the Guaranty and all of the undersigned’s obligations thereunder remain in full
force and effect. The undersigned further agrees that the consent of the undersigned to any
further amendments to the Loan Agreement shall not be required as a result of this consent having
been obtained, except to the extent, if any, required by the Guaranty.

	 	 	 	 	 
	 	Pegasus Partners IV, L.P.

 	 
	 	By:  	 Pegasus Investors IV, L.P.
 	 
	 	 	Its:  General Partner 	 
	 	 	 
	 	By:  	                                                  Pegasus Investors IV GP, L.L.C.
 	 
	 	 	Its: General Partner 	 
	 	 	 
	 	By:  	                                                   /s/ Steven Wacaster
 	 
	 	 	Printed Name:  	Steven Wacaster 	 
	 	 	Its:  	Vice Presidentexv10w2

Exhibit 10.2

Second Allonge to Demand Note

     This Second Allonge to Demand Note is attached to and made a part of that certain Demand Note
(“Note") executed by Lighting Science Group Corporation (the “Borrower"), dated July 25, 2008,
payable to the order of Bank of Montreal (the “Bank”), in the original principal amount of Twenty
Million and No/100 Dollars ($20,000,000.00).

     For good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto agree as follows:

     1. The Note is hereby amended as follows:

The date “August 24, 2009” appearing in the first paragraph of the
Note shall be deleted and replaced with the date
“August 24, 2010”.

     2. This Allonge to Demand Note amends the Note as specifically provided herein. All other
provisions of the Note shall not be modified hereby except as expressly set forth herein.

     3. The Borrower hereby directs the Bank to affix this Allonge to Demand Note whereupon the
Note and this Allonge to Demand Note will become and constitute a single instrument.

     4. References in the Note to the Bank of Montreal Loan Authorization Agreement dated as of
July 25, 2008 between the Borrower and the Bank (the “Loan Agreement") shall be deemed to refer to
the Loan Agreement, as amended and as the same may be amended from time to time.

[Signature Page to Follow]

 

 

Dated: As of August 24, 2009

	 	 	 	 	 
	 	Lighting Science Group Corporation

 	 
	 	By:  	/s/
Kathryn L. Reynolds
 	 
	 	 	Name:  	Kathryn L. Reynolds 	 
	 	 	Its: Chief Financial Officer 	 
	 

Accepted and Agreed:

	 	 	 	 	 
	 	Bank of Montreal

 	 
	 	By:  	/s/
Brett M. Sanchez
 	 
	 	 	Name:  	Brett M. Sanchez 	 
	 	 	Its: Vice Presidentexv10w3

Exhibit 10.3

EXECUTION VERSION

GUARANTY EXTENSION AGREEMENT

     This Guaranty Extension Agreement (this “Agreement”) is made and entered into as of the 24th
day of August, 2009 by and between Lighting Science Group Corporation, a Delaware corporation (the
"Borrower”), and Pegasus Partners IV, L.P., a Delaware limited partnership (the “Guarantor”).

     WHEREAS, the Borrower and Bank of Montreal (the “Bank”) have entered into that certain Bank of
Montreal Loan Authorization Agreement dated as of July 25, 2008, as amended by that certain First
Amendment to Bank of Montreal Loan Authorization Agreement dated as of July 24, 2009 (the Bank of
Montreal Loan Authorization Agreement, as so amended, the “Loan Agreement”), whereby the Bank has
agreed to provide up to $20,000,000 of loans and other financial accommodations (the “Loans”) to
the Borrower through August 24, 2009.

     WHEREAS, the Guarantor has guaranteed the Loans pursuant to that certain Guaranty dated as of
July 25, 2008 (as amended and as the same may be amended from time to time, the “Guaranty”).

     WHEREAS, the Borrower desires to extend the maturity date of the Loans to August 24, 2010 (the
"Maturity Date”) by entering into the Second Amendment to Bank of Montreal Loan Authorization
Agreement (the “Loan Extension”) dated as of August 24, 2009 (the “Extension Date”), and has
requested that the Guarantor execute an Acknowledgement and Consent (the “Guarantor Consent”)
consenting to the Loan Extension and confirming that the Guaranty remains in full force and effect
through the Maturity Date.

     NOW THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged by each of the parties hereto, the parties hereto, intending to be legally
bound, hereby agree as follows:

     Section 1. Consent and Guaranty Extension. The Guarantor hereby agrees to execute the
Guarantor Consent and guarantee the Loans through, but not after, the Maturity Date.

     Section 2. Fee. In order to induce the Guarantor to enter into the Guarantor Consent,
except as otherwise provided in Section 2(d), the Borrower agrees to pay the Guarantor a
fee (the “Fee”), such Fee to be calculated and paid in accordance with this Section 2.

          (a) The Fee shall be paid by the Borrower upon the earliest to occur of (i) the
Maturity Date, (ii) the date of termination of the Loan Agreement or the Guaranty and (iii)
a Change of Control (defined below) (the “Fee Payment Date”).

          (b) Maturity Date or Early Termination. If the Fee Payment Date is the
Maturity Date or date of termination of the Loan Agreement or the Guaranty, the Fee payable
pursuant to this Agreement shall be an amount equal to the product obtained by multiplying
(i) the Average Daily Loan Balance (as defined herein), by (ii) the product of (A) fifteen
percent (15%) multiplied by (B) the Usage Percentage (as defined herein) (such Fee being the
“Average Daily Balance Fee”).

 

 

          (c) Change of Control. If the Fee Payment Date is the date of a Change of
Control, the Fee payable pursuant to this Agreement shall be equal to the greater of (i) the
Average Daily Balance Fee and (ii) an amount equal to the product obtained by multiplying
(A) 1.0% of the total transaction consideration (including, without limitation,
consideration in the form of the assumption or discharge of indebtedness) received by the
Borrower upon the Change of Control, by (B) the Usage Percentage.

          (d) Termination Within 60 Days. Notwithstanding the foregoing, if the Guaranty
is terminated on or before the 60th day after the Extension Date, no Fee is due pursuant to
this Agreement.

          (e) Additional Definitions. For purposes of this Agreement the following terms
will have the indicated meanings:

     (i) “Average Daily Loan Balance” shall be an amount equal to the
average unpaid principal balance under the Note (as defined in the Loan
Agreement and determined in accordance with the Bank’s record keeping
obligations pursuant to the Loan Agreement), from the Extension Date to the
Fee Payment Date, calculated as of the Fee Payment Date.

     (ii) “Usage Percentage” shall mean the quotient obtained by dividing
the number of days in the Measurement Period by 365.

     (iii) “Measurement Period” shall be the period beginning on the
Extension Date and ending on the applicable Fee Payment Date.

     (iv) “Change of Control” shall mean the occurrence of any of the
following:

     (A) the sale, conveyance or disposition of all or substantially
all of the assets of the Borrower (other than pursuant to a joint
venture arrangement or other transaction in which the Borrower,
directly or indirectly, receives at least fifty percent (50%) of the
voting equity in another entity or a general partnership);

     (B) the effectuation of a transaction or series of related
transactions in which more than fifty percent (50%) of the voting
power of the Borrower is disposed of (other than (i) as a direct
result of normal, uncoordinated trading activities in the common
stock of the Borrower generally or (ii) solely as a result of the
disposition by a stockholder of the Borrower to an Affiliate of such
stockholder);

     (C) the consolidation, merger or other business combination of
the Borrower with or into any other entity, immediately following
which the prior stockholders of the

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Borrower fail to own, directly or
indirectly, at least fifty percent (50%) of the voting equity of the
surviving entity;

     (D) a transaction or series of transactions in which any person
or “group” (as such term is used in Sections 13(d) and 14(d) of the
Securities Exchange Act of 1934) acquires more than fifty percent
(50%) of the voting equity of the Borrower (other than the
acquisition by a person or “group” that is an Affiliate of or
Affiliated with a person or “group” that immediately prior to such
acquisition, beneficially owned fifty percent (50%) or more of the
voting equity of the Borrower);

     (E) the replacement of a majority of the board of directors of
the Borrower with individuals who were not nominated or elected by at
least a majority of the directors at the time of such replacement; or

     (F) a transaction or series of transactions that constitutes or
results in a “going private transaction” (as defined in Section 13(e)
of the Securities Exchange Act of 1934 and the regulations of the
Securities and Exchange Commission issued thereunder).

     (v) “Affiliate” of, or a person “Affiliated” with, a specified person,
is a person that directly, or indirectly through one or more intermediaries,
controls, or is controlled by, or is under common control with, the person
specified.

     Section 3. Reimbursement Obligation. The Borrower agrees to reimburse the Guarantor
for all payments made by Guarantor on the Guarantied Obligations (as defined in the Guaranty),
pursuant to the terms of the Guaranty (collectively, the “Reimbursement Payments”). Each
Reimbursement Payment shall be payable within two (2) business days after the Guarantor notifies
the Borrower in writing of a payment by the Guarantor on a Guarantied Obligation and the amount of
such payment.

     Section 4. Overdue Amounts. If a Fee or Reimbursement Payment is not paid when due,
it shall bear interest at the lesser of (a) a per annum rate of interest equal to the prime rate
announced by The Wall Street Journal plus two percent (2%) and (b) the maximum rate allowed by law.

     Section 5. Termination of Guaranty. Upon the payment of the Fee, if the Guaranty has
not already been terminated, the parties shall promptly terminate the Guaranty in accordance with
the terms thereof.

     Section 6. CHOICE OF LAW. THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED AND
INTERPRETED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

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     Section 7. Miscellaneous.

          (a) This Agreement may be executed in multiple counterparts, each of which shall be
deemed to be an original and all of which taken together shall be deemed to be one and the
same Agreement. Delivery of this Agreement may be effected by facsimile transmission or
electronic mail in portable document format.

          (b) Whenever possible, each provision of this Agreement shall be interpreted in such
manner as to be effective and valid under applicable law, but if any provision of this
Agreement shall 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
Agreement.

          (c) No party to this Agreement may assign this Agreement or any or all of its rights or
obligations hereunder without first obtaining the written consent of all other parties
hereto.

          (d) This Agreement cannot be modified or amended except by a written agreement executed
by all parties hereto.

[Signatures Page to Follow]

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     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed and
delivered by their proper and duly authorized officers as of the date first written above.

	 	 	 	 	 
	 	BORROWER:

LIGHTING SCIENCE GROUP CORPORATION

 	 
	 	By:  	/s/ Kathryn L. Reynolds
 	 
	 	 	Name:  	Kathryn L. Reynolds 	 
	 	 	Title:  	Chief Financial Officer 	 
	 
	 	GUARANTOR:

PEGASUS PARTNERS IV, L.P.

By: Pegasus Investors IV, L.P., its general partner

By: Pegasus Investors IV GP, L.L.C., its general partner

 	 
	 	By:  	/s/ Steven Wacaster
 	 
	 	 	Name:  	Steven Wacaster 	 
	 	 	Title:  	Vice President 	 
	 

[Signature page to Guaranty Extension Agreement]

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