Document:

pbsv_ex102.htm

EXHIBIT 10.2

 

 

EMPLOYMENT AGREEMENT AMENDMENT

 

EMPLOYMENT AGREEMENT AMENDMENT (this "Amendment"), effective as of January 1, 2013 (the "Effective Date"), by and among Pharma-Bio Serv, Inc. with its principal office at 6 Road 696, Dorado, Puerto Rico 00646 (the “Company”), Pharma-Bio Serv PR, Inc., a wholly-owned subsidiary of the Company ("Pharma-PR"), and Nélida Plaza (“Executive”) (hereinafter “the Parties”).

 

W I T N E S S E T H:

 

WHEREAS, Pharma-PR and Executive have entered into that certain Employment Agreement, dated December 31, 2009, as such Employment Agreement has been and may be amended, restated or otherwise modified from time to time (the "Employment Agreement").  Capitalized terms used but not defined herein shall have the meaning ascribed to such terms in the Employment Agreement; and

 

WHEREAS, Pharma-PR and the Executive desire to modify the Employment Agreement to add the Company as a party to the Employment Agreement, reflect Executive's new position as Acting President and Chief Executive Officer of the Company, modify the Executive's salary during the time she serves in such positions, and modify the covenant not to solicit or compete.

 

NOW THEREFORE,  for good and valuable consideration, the receipt and adequacy of which is hereby acknowledged, the parties hereto agree as follows:

 

	
1.  

	
Section 1 of the Employment Agreement is amended and restated in its entirety as follows:

1.  Employment and Duties

	
a)  

	
Subject to the terms and conditions hereinafter set forth, the Company hereby employs Executive as President of Puerto Rico Operations and Secretary of the Company, as hereinafter defined, and as Acting President and Chief Executive Officer of the Company, as hereinafter defined.  Executive's service as Acting President and Chief Executive Officer shall be for a period of one year commencing on the Effective Date (the "Initial CEO Term").  Sixty days prior to the end of the Initial CEO Term, the Board of Directors of the Company and the Executive may renew the Initial CEO Term for an additional one year term (the "Additional CEO Term").

	
b)  

	
As President of Puerto Rico Operations and Secretary of the Company, Executive shall have the duties and responsibilities as shall be determined by the Board.  Executive shall report to the Company’s Chief Executive Officer, unless Executive is serving in the position of Chief Executive Officer, then Executive shall report to the Board.  Executive shall also perform such other duties and responsibilities as may be determined by such officer or the Board, as long as such duties and responsibilities are consistent with the Bylaws of the Company and applicable law.

	
c)  

	
As Acting President and Chief Executive Officer of the Company, Executive shall have the duties and responsibilities associated with the president and chief executive officer of a public corporation.  Executive shall report to the Board.  Executive shall also perform such other duties and responsibilities as may be determined by the Board, as long as such duties and responsibilities are consistent with the Bylaws of the Company and applicable law.

	
2.  

	
Executive's salary pursuant to paragraph 3(a) of the Employment Agreement is hereby modified and amended so as to increase Executive's annual salary, during the Initial CEO Term, and the Additional CEO Term, if applicable, to $225,000.  Salary shall be paid in such installments as the Company regularly pays its executive officers, but not less frequently than semi-monthly.  Executive's salary will be revised annually based upon performance evaluations following the Company's performance review process and subject to the financial status of the Company.

	
3.  

	
The introductory language of Section 7(a) of the Employment Agreement is amended and restated in its entirety as follows:

 

	
a)  

	
During the period from the date of this Agreement until one (1) year following the date on which Executive's employment is terminated, Executive will not, directly or indirectly:

 

	
4.  

	
Except as expressly amended by the terms of this Amendment and all prior amendments to the Employment Agreement, the terms of the Employment Agreement shall remain in effect and are unchanged by this Amendment.

 

IN WITNESS WHEREOF, the parties have executed this Amendment in Dorado, Puerto Rico, this 7th  day of January 2013.

 

	PHARMA-BIO SERV, INC.	 	 	  EXECUTIVE:	 	 
	 	 	 	 	 	 	 	 
	By:	
 /s/ Pedro Lasanta  

	 	 	By:	
/s/ Nélida Plaza 

	 	 
	 	
Name: Pedro Lasanta

	 	 	 	
Name: Nélida Plaza 

	 	 
	 	
Title: Chief Financial Officer and Vice-President – Finance and Administration

	 	 	 	
Title: Acting President and Chief Executive Officer, President of Puerto Rico Operations and Secretary

 

	PHARMA-BIO SERV PR, INC.	 	 	 	 
	 	 	 	 	 	 
	By:	
/s/ Pedro Lasanta

	 	 	 	 
	 	
Name: Pedro Lasanta

	 	 	
 

	 
	 	
Title: Chief Financial Officer and Vice-President – Finance and Administrationvggl_ex101.htm

EXHIBIT 10.1

 

AMENDED AND RESTATED LINE OF CREDIT GRID PROMISSORY NOTE

 

New York, New York

 

As of January 4, 2013 $20,000,000.00

 

1) FOR VALUE RECEIVED, on the Maturity Date, Viggle Inc., a Delaware corporation (the “Borrower”), at its offices at 902 Broadway, 11th Floor, New York, New York 10010, promises to pay to the order of Sillerman Investment Company LLC (the “Lender”) at its offices, or at such other place as the Lender may designate in writing, the aggregate principal sum of Twenty Million Dollars ($20,000,000) or, if less, the unpaid amount of all draws, plus accrued and unpaid interest due with respect to all outstanding draws, made by the Lender hereunder.

 

2) Maturity Date.  The “Maturity Date” shall be the earlier to occur of (i) June 29, 2013 or (ii) upon the receipt of net proceeds by the Company or any of its wholly-owned subsidiaries from one or more debt or equity offerings by the Company or any of its wholly-owned subsidiaries in an amount equal to at least the amount of principal and accrued and unpaid interest outstanding under this Grid Note.

 

3) Interest.  (a)                      Borrower will pay interest on the unpaid principal amount of all draws from time to time outstanding from the date of each draw until each such draw has been paid in full. Interest shall accrue at the simple interest rate equal to nine percent (9%) per annum, simple, with respect to each draw. Interest shall be computed on the basis of a 365 day year for actual days elapsed, but in no event higher than the maximum rate permitted under applicable law.

 

(b) Borrower will pay interest, calculated at the rate set forth above, upon the Maturity Date or such earlier date upon which any draw is paid. In addition, Borrower will pay a default rate equal to two percent (2%) per annum in excess of the rate set forth herein if an Event of Default has occurred and is continuing. Notwithstanding the foregoing however, in no event shall interest exceed the maximum legal rate permitted by law. All payments, including insufficient payments, shall be credited, regardless of their designation by Borrower, first to outstanding late charges, then to interest and the remainder, if any, to principal.

 

4) Requests for Loans; Disbursement of Proceeds. As of the date hereof, $10,000,000 has been borrowed pursuant to the Original Note (as defined in Section 8), $2,000,000 has been borrowed pursuant to the Amended Note, $500,000 has been borrowed pursuant to the Second Amended Note, and $2,500,000 has been borrowed pursuant to the Third Amended Note, in accordance with the Schedule attached hereto.  Borrower may borrow, and Lender agrees to make draws hereunder in amounts of no less than One Hundred Thousand Dollars ($100,000), upon notice of a proposed borrowing, and the requested amount thereof, to the Lender not later than 12:00 Noon (New York time) five (5) days prior to the date on which the proposed borrowing is requested to be made, subject to the satisfaction of all conditions precedent to such draw, including the delivery to the Lender of a funding memorandum substantially in the form attached hereto as Exhibit A; provided, that the aggregate principal amount of all draws outstanding at any one time shall not exceed $20,000,000.  Lender shall not be obligated to make draws more than once per month. Each notice of borrowing shall be delivered by hand or facsimile transmission. Each such notice shall be irrevocable by and binding on Borrower. Unless otherwise directed in writing by Borrower, the Lender shall promptly disburse the proceeds of such draw made hereunder by crediting the amount thereof as instructed in the applicable Disbursement Request.

 

5) Payments and Prepayments; Use of Grid. The Lender is hereby authorized by Borrower to enter and record on the schedule attached hereto (i) the loan number, (ii) the date of each draw made under this Grid Note, (iii) the dollar amount of the draw, (iv) the applicable interest rate, (v) interest due on Maturity Date, (vi) each payment and prepayment of any draw thereon, and (vii) date of payment, without any further authorization on the part of Borrower or any endorser or guarantor of this Grid Note; provided, however, that the Lender shall promptly deliver to the Borrower a copy of this Grid Note following the entry of each draw hereunder. The entry of a draw on said schedule shall be prima facie and presumptive evidence of the entered draw and its conditions, absent manifest error. The Lender’s failure to make an entry, however, shall not limit or otherwise affect the obligations of Borrower or any endorser or guarantor of this Grid Note. Borrower may make prepayments in whole or in part hereunder at any time, provided accrued, but unpaid interest is paid through the prepayment date. If any payment of principal or interest becomes due on a day on which the Lender is closed, such payment shall be made not later than the next succeeding Business Day (a “Business Day” shall be considered to be Monday through Friday from 9am to 5pm local time, excluding weekends and public holidays) and such extension shall be included in computing interest in connection with such payment. All payments by Borrower on account of principal, interest or fees hereunder shall be made in lawful money of the United States of America, in immediately available funds.  All net proceeds received by the Company or any of its wholly owned subsidiaries from any debt or equity offering by the Company or any of its wholly-owned subsidiaries shall first be applied toward the payment in full of all outstanding principal and accrued but unpaid interest outstanding under this Grid Note.

 

6) Use of Proceeds. The proceeds of each draw hereunder shall be used for general corporate and working capital purposes of Borrower. Borrower will not, directly or indirectly, use any proceeds of draws hereunder for the purpose of purchasing or carrying any margin stock within the meaning of Regulation X of the Board of Governors of the Federal Reserve System or to extend credit to any person for the purpose of purchasing or carrying any such margin stock, or for any purpose which violates, or is inconsistent with, Regulation X of such Board of Governors.

 

  

1

  

 

7) Event of Default.

 

(a) It is expressly agreed that the whole of the indebtedness evidenced by this Grid Note shall immediately become due and payable, at the option of the Lender, on the happening of any default or event constituting an event of default hereunder (each an “Event of Default”).

 

(b) An Event of Default shall occur on:  (i) the non-payment of any of the amounts due hereunder within five (5) Business Days after the date such payment is due and payable; (ii) dissolution or liquidation, as applicable, of the Borrower; (iii) any petition in bankruptcy being filed by or against the Borrower or any proceedings in bankruptcy, or under any Acts of Congress relating to the relief of debtors, being commenced for the relief or readjustment of any indebtedness of the Borrower either through reorganization, composition, extension or otherwise; provided, however, that Borrower shall have a sixty (60) day grace period to obtain the dismissal or discharge of involuntary proceedings filed against it, it being understood that during such sixty (60) day grace period, the Lender shall not be obligated to make draws hereunder and the Lender may seek adequate protection in any bankruptcy proceeding; (iv) the making by the Borrower of an assignment for the benefit of creditors, calling a meeting of creditors for the purpose of effecting a composition or readjustment of its debts, or filing a petition seeking to take advance of any other law providing for the relief of debtors; (v) any seizure, vesting or intervention by or under authority of a government, by which the management of the Borrower, is displaced or its authority in the conduct of its business is curtailed; (vi) the appointment of any receiver of any material property of the Borrower; (vii) if any warranty, representation, statement, report or certificate made now or hereafter by Borrower to Lender pursuant hereto is untrue or incorrect in any material respect at the time made or delivered; (viii) the Borrower shall contest, dispute or challenge in any manner, whether in a judicial proceeding or otherwise, the validity or enforceability of any material provision set forth herein or any transaction contemplated in this Grid Note; or (ix) if there shall be a material adverse change in the business plan or prospects of Borrower in the reasonable opinion of Lender.

 

8) Amendment and Restatement of June 29, 2012 Note.  This Grid Note amends and restates in its entirety that certain Line of Credit Grid Promissory Note entered into between Borrower and Lender on June 29, 2012 (the “Original Note”), the Amended and Restated Line of Credit Grid Promissory Note entered into between Borrower and Lender on October 25, 2012 (the “Amended Note”), the Amended and Restated Line of Credit Grid Promissory Note entered into between Borrower and Lender on December 3, 2012 (the “Second Amended Note”), and the Amended and Restated Line of Credit Grid Promissory Note entered into between Borrower and Lender on December 12, 2012 (the “Third Amended Note”).

 

9) Governing Law. This Grid Note shall be governed by, and construed in accordance with, the laws of the State of New York, without regard to its rules on conflicts of laws.

 

10) No Waiver. No failure or delay on the part of the Lender in exercising any right, power, or remedy hereunder shall operate as a waiver thereof; nor shall any single or partial exercise of any such right, power, or remedy preclude any other or further exercise thereof or the exercise of any other right, power, or remedy hereunder. The rights and remedies provided herein are cumulative, and are not exclusive of any other rights, powers, privileges, or remedies, now or hereafter existing, at law or in equity or otherwise.

 

11) Costs and Expenses. Borrower shall reimburse the Lender for all costs and expenses incurred by the Lender in connection with the enforcement of this Grid Note or any document, instrument or agreement relating thereto.

 

12) Amendments. No amendment, modification, or waiver of any provision of this Grid Note nor consent to any departure by Borrower therefrom shall be effective unless the same shall be in writing and signed by the Lender and then such waiver or consent shall be effective only in the specific instance and for the specific purpose for which given.

 

13) Successors and Assigns. This Grid Note shall be binding upon Borrower and its heirs, legal representatives, successors and assigns and the terms hereof shall inure to the benefit of the Lender and its successors and assigns, including subsequent holders hereof.

 

14) Severability. The provisions of this Grid Note are severable, and if any provision shall be held invalid or unenforceable in whole or in part in any jurisdiction, then such invalidity or unenforceability shall not in any manner affect such provision in any other jurisdiction or any other provision of this Grid Note in any jurisdiction.

 

15) Entire Agreement. This Grid Note sets forth the entire agreement of Borrower and the Lender with respect to this Grid Note and may be modified only by a written instrument executed by Borrower and the Lender.

 

16) Headings. The headings herein are for convenience only and shall not limit or define the meaning of the provisions of this Grid Note.

 

17) Jurisdiction; Service of Process. Borrower agrees that in any action or proceeding brought on or in connection with this Grid Note (i) any New York State or Federal court sitting in New York County, New York, shall have jurisdiction of any such action or proceeding, (ii) service of any summons and complaint or other process in any such action or proceeding may be made by the Lender upon Borrower by registered or certified mail directed to Borrower at its address referenced above, Borrower hereby waiving personal service thereof, and (iii) within thirty (30) days after such mailing Borrower shall appear or answer to any summons and complaint or other process, and should Borrower fail to appear to answer within said thirty day period, it shall be deemed in default and judgment may be entered by the Lender against Borrower for the amount as demanded in any summons or complaint or other process so served.

 

18) WAIVER OF THE RIGHT TO TRIAL BY JURY. BORROWER AND, BY ITS ACCEPTANCE HEREOF, THE LENDER, HEREBY IRREVOCABLY WAIVE THE RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING, CLAIM, OR COUNTERCLAIM, WHETHER IN CONTRACT OR TORT, AT LAW OR IN EQUITY, IN ANY MANNER CONNECTED WITH THIS GRID NOTE OR ANY TRANSACTIONS HEREUNDER. NO OFFICER OF THE LENDER HAS AUTHORITY TO WAIVE, CONDITION, OR MODIFY THIS PROVISION.

 

Signatures on following page

 

  

2

  

	 	

Viggle Inc.

	 
	 	 	 	 
	
 

	
By: 

	/s/ Mitchell J. Nelson	 
	 	 	Name: Mitchell J. Nelson	 
	 	 	Title: Executive Vice President 	 
	 	 	 	 

 

  

3

  

 

SCHEDULE TO LINE OF CREDIT GRID PROMISSORY NOTE

 

Borrower:  Viggle Inc.

 

 

Date of Original Note:  June 29, 2012

 

Date of Amended Note:  October 25, 2012

 

Date of Second Amended Note:  December 3, 2012

 

Date of Third Amended Note:  December 12, 2012

 

	
Loan 

Number

	 	
Date 

of draw

	 	
Commitment 

Amount

	 	
draw

	 	
Maturity 

Date

	 	
Interest

Rate

	 	
Interest Due upon

Maturity Date

	 	
Amount 

Paid

	 	
Date 

Payment

	  	 	
6/29/12

	 	  	 	
$2,500,000

	 	  	 	  	 	  	 	  	 	  
	  	 	
8/10/12

	 	  	 	
$3,500,000

	 	  	 	  	 	  	 	  	 	  
	  	 	
9/7/12

	 	  	 	
$3,000,000

	 	  	 	  	 	  	 	  	 	  
	  	 	
10/4/12

	 	  	 	
$1,000,000

	 	  	 	  	 	  	 	  	 	  
	  	 	
10/30/12

	 	  	 	
$2,000,000

	 	  	 	  	 	  	 	  	 	  
	  	 	
12/3/12

	 	  	 	
$500,000

	 	  	 	  	 	  	 	  	 	  
	  	 	
12/12/12

	 	  	 	
$2,500,000

	 	  	 	  	 	  	 	  	 	  
	  	 	
1/4/13

	 	  	 	
$1,000,000

	 	  	 	  	 	  	 	  	 	  
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  

 

  

4

  

 

EXHIBIT A

FUNDING MEMORANDUM

_________ __, 2012

Sillerman Investment Company LLC

____________________

____________________

Dear ____________________:

We hereby request that you make available in our account No. _____________ the amount of $______________, and which shall constitute a draw under the Line of Credit Grid Note made by Viggle Inc. (“Borrower”) to the order of Sillerman Investment Company LLC  (the “Lender”) dated as of June 29, 2012 (as amended from time to time, the “Grid Note”).

 

Under the Grid Note, the Lender is authorized to enter and record on the schedule attached thereto (i) the loan number, (ii) the date of each draw, (iii) the Commitment Amount, (iv) the dollar amount of the draw, (v) the Maturity Date of the draw, (vi) the interest rate, (vii) interest due on Maturity Date, (viii) each payment of any draw and (ix) date of payment, without any further authorization on the part of Borrower.

 

Borrower represents, warrants and certifies to Lender as follows:

 

(b) there does not exist any known deficiency in any of the documents identified in this Funding Memorandum, and Borrower agrees that any deficiencies subsequently discovered will be promptly reported to the Lender;

 

(c) both before and after funding the draw requested hereunder Borrower is not in default, no Event of Default exists, and no Event of Default shall result from the making of the draw requested hereunder;

 

(d) all of the representations and warranties of Borrower contained herein shall be true and correct in all material respects to the same extent as though made on and as of any making of the draw requested hereunder; and

 

(e) after giving effect to the amount of the requested draw, the aggregate amount of outstanding draws under the Facility shall not exceed $12,500,000.

 

 

	 	Very truly yours,	 
	 	 	 	 
	 	Viggle Inc.	 
	 	 	 	 
	
 

	By:  	 	 
	 	Name:	 	 
	 	Title:	 	 
	 	 	 	 

 

 

5

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