Document:

EXHIBIT 10.15

 

EXECUTION COPY

 

FOURTH AMENDMENT

TO FINANCING AGREEMENT

 

FOURTH AMENDMENT, dated as of June 30, 2015 (this "Amendment"), to the Financing Agreement, dated as of December 31, 2012 (as previously amended, the "Financing Agreement"), by and among Christals Acquisition, LLC, a Delaware limited liability company (the "Parent"), Peekay Acquisition, LLC, a Delaware limited liability company ("Peekay Acquisition"), the subsidiaries of Peekay Acquisition listed as Borrowers on the signature pages thereto (together with Peekay Acquisition, each a "Borrower" and collectively, the "Borrowers"), each subsidiary of the Parent listed as a "Guarantor" on the signature pages thereto (together with the Parent and each other Person that executes a joinder agreement and becomes a "Guarantor" hereunder or otherwise guaranties all or any part of the Obligations (as defined therein), each a "Guarantor" and collectively, the "Guarantors"), the lenders from time to time party thereto (each a "Lender" and collectively, the "Lenders"), Cortland Capital Market Services LLC, as collateral agent for the Lenders (in such capacity, together with its successors and permitted assigns, the "Collateral Agent"), and as administrative agent for the Lenders (in such capacity, together with its successors and permitted assigns, the "Administrative Agent"), and CB Agency Services, LLC, as origination agent for the Lenders (in such capacity, together with its successors and permitted assigns, the "Origination Agent"; together with the Collateral Agent and the Administrative Agent, each an "Agent" and collectively, the "Agents").

 

RECITALS. The Borrowers, the Guarantors, the Lenders, the Collateral Agent, the Administrative Agent and the Origination Agent are parties to the Financing Agreement, pursuant to which the Lenders made certain term loans (each a "Loan" and collectively, the "Loans") to the Borrowers. The Loan Parties have requested that the Required Lenders waive any noncompliance with the Leverage Ratio and Minimum Liquidity covenants set forth in Section 7.03 of the Financing Agreement through September 30, 2015.

 

NOW, THEREFORE, in consideration of the premises and other good and valuable consideration, the parties hereto hereby agree as follows:

 

1. Definitions. Any terms used herein that are defined in the Financing Agreement and not otherwise defined herein shall have the meanings assigned to them in the Financing Agreement.

 

2. Amendments.

 

(a) New Definitions. Section 1.01 of the Financing Agreement is hereby amended by adding the following definitions, in appropriate alphabetical order:

 

"'Fourth Amendment' means the Fourth Amendment to Financing Agreement, dated as of June 30, 2015, by and among the Borrowers, the Guarantors, the Lenders and the Agents."

 

"Fourth Amendment Effective Date' means the date on which the Fourth Amendment shall become effective in accordance with its terms."

 

	 
	
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(b) Exit Fee. Section 2.06 of the Financing Agreement is hereby amended by adding a new subsection (f), to read in its entirety as follows:

 

"(f) Exit Fee. The Borrowers agrees to pay to the Administrative Agent an exit fee (the "Exit Fee"), for the account of each Lender that shall have delivered to the Administrative Agent a counterpart of the Fourth Amendment signed on behalf of such Lender (or that shall have provided to the Administrative Agent written evidence satisfactory to the Administrative Agent, which may include a telecopy or electronic transmission of a signed signature page of the Fourth Amendment, that such Lender has signed a counterpart of the Fourth Amendment) prior to 4:00 p.m., New York time, on June 30, 2015 (each such Lender, a "Consenting Lender"), in an amount equal to the sum of 0.25% of the aggregate principal amount of the outstanding Loans of such Consenting Lender, calculated on each of (i) the 15th day of July 2015 and the 15th day of each calendar month thereafter (if any of the Loans and other Obligations remain outstanding on such day), and (ii) the last day of July and the last day of each calendar month thereafter (if any of the Loans and other Obligations remain outstanding on such day). The Exit Fee shall be nonrefundable, shall be deemed fully earned as of the 15th day and last day of each calendar month for the Exit Fee that accrues on such day and until paid shall constitute "Obligations" that are secured by Collateral. The Exit Fee shall be due and payable on the earlier to occur of (A) the Final Maturity Date and (B) the date which all of the other Obligations are repaid or required to be repaid in full in cash. For the purpose of illustration only, if the aggregate principal amount of the outstanding Loans of a Consenting Lender were $10,000,000 and were to remain unchanged and all Obligations were repaid on November 10, 2015, an Exit Fee of $200,000 would be earned and due and payable to such Consenting Lender on November 10, 2015."

 

3. Waiver and Consent.

 

(a) Pursuant to the request of the Loan Parties and in accordance with Section 12.02 of the Financing Agreement, but subject to the satisfaction of the conditions set forth in Section 6 hereof, the Required Lenders hereby consent to, and waive any Event of Default that would otherwise arise under Section 9.01(c)(i) of the Financing Agreement as a result of:

 

(i) subject to Section 3(b) below, any noncompliance with Section 7.03(a) arising from the failure of the Parent and its Subsidiaries to have a Leverage Ratio for each period of four fiscal quarters ending on June 30, 2015 and September 30, 2015 of not more than the applicable ratio specified in Section 7.03(a); and

 

	 
	
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(ii) subject to Section 3(b) below, any noncompliance with Section 7.03(b) arising from the failure of the Parent and its Subsidiaries to have Liquidity of at least $1,500,000 at any time from June 30, 2015 through September 30, 2015.

 

(b) Notwithstanding the consents and waivers set forth in Section 3(a) above, if any of the Obligations remain outstanding as of November 15, 2015, then the Loan Parties must satisfy (i) the Leverage Ratio of the Parent and its Subsidiaries for the period of four fiscal quarters ending September 30, 2015 as set forth in Section 7.03(a) of the Financing Agreement and (ii) the Liquidity test at the end of the fiscal quarter ending September 30, 2015 as set forth in Section 7.03(b) of the Financing Agreement.

 

(c) The waivers and consents in this Section 3 shall be effective only in the specific instances and for the specific purposes set forth herein and do not allow for any other or further departure from the terms and conditions of the Financing Agreement or any other Loan Document, which terms and conditions shall remain in full force and effect.

 

4. Suspension of Cash Payment of Permitted Management Fees. The Loan Parties agree not to pay any Permitted Management Fees until the earlier to occur of (i) the date that the financial covenants set forth in Section 7.03 of the Financing Agreement have been satisfied for the period ending September 30, 2015 or as at September 30, 2015, or at any time thereafter, and (ii) the repayment of all Obligations and the termination of the Commitments, provided that such Permitted Management Fees shall continue to accrue.

 

5. Representations and Warranties. Each Loan Party hereby represents and warrants to the Agents and the Lenders as follows as of the date hereof:

 

(a) Representations and Warranties; No Event of Default. The representations and warranties herein, in Article VI of the Financing Agreement and in each other Loan Document, certificate or other writing delivered to any Agent or any Lender pursuant to this Amendment, the Financing Agreement or any other Loan Document on or prior to the Fourth Amendment Effective Date are true and correct in all material respects (or, as to any such representation or warranty that is qualified by materiality, "Material Adverse Effect" or a similar materiality qualifier, in all respects) with the same effect as though such representations and warranties had been made on such date, (it being understood and agreed that any representation or warranty that by its terms is made as of a specified date shall be required to be true and correct in all material respects (or, as to any such representation or warranty that is qualified by materiality, "Material Adverse Effect" or a similar materiality qualifier, in all respects) only as of such specified date), and no Default or Event of Default has occurred and is continuing as of the Fourth Amendment Effective Date or would result from this Amendment becoming effective in accordance with its terms.

 

(b) Enforceability of Loan Documents. This Amendment and the Financing Agreement, as amended by this Amendment, when delivered hereunder, will be a legal, valid and binding obligation of such Person, enforceable against such Person in accordance with its terms, except as enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting creditors' rights generally.

 

	 
	
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6. Conditions to Effectiveness. This Amendment shall become effective only upon the satisfaction, in a manner reasonably satisfactory to the Agents, of the following conditions precedent (the date on which all such conditions shall have been satisfied is hereinafter referred to as the "Fourth Amendment Effective Date"):

 

(a) Representations and Warranties. The representations and warranties contained in this Amendment, in Article VI of the Financing Agreement and in each other Loan Document, certificate or other document delivered to any Agent or any Lender pursuant to this Amendment, the Financing Agreement or any Loan Document on or prior to the Fourth Amendment Effective Date are true and correct in all material respects (or, as to any such representation or warranty that is qualified by materiality, "Material Adverse Effect" or a similar materiality qualifier, in all respects) with the same effect as though such representations and warranties had been made on such date, (it being understood and agreed that any representation or warranty that by its terms is made as of a specified date shall be required to be true and correct in all material respects (or, as to any such representation or warranty that is qualified by materiality, "Material Adverse Effect" or a similar materiality qualifier, in all respects) only as of such specified date).

 

(b) No Default; Event of Default. No Default or Event of Default shall have occurred and be continuing on the Fourth Amendment Effective Date or result from this Amendment becoming effective in accordance with its terms.

 

(c) Delivery of Documents. The Collateral Agent shall have received on or before the Fourth Amendment Effective Date the following, each in form and substance reasonably satisfactory to the Agents and, unless indicated otherwise, dated the Fourth Amendment Effective Date:

 

(i) this Amendment, duly executed by the Loan Parties and the Required Lenders; and

 

(ii) such other agreements, instruments, approvals and other documents as any Agent may reasonably request.

 

7. Continued Effectiveness of the Financing Agreement and Other Loan Documents. Each Loan Party hereby (i) acknowledges and consents to this Amendment, (ii) confirms and agrees that the Financing Agreement and each other Loan Document to which it is a party is, and shall continue to be, in full force and effect and is hereby ratified and confirmed in all respects except that on and after the Fourth Amendment Effective Date all references in any such Loan Document to "the Financing Agreement", the "Agreement", "thereto", "thereof", "thereunder" or words of like import referring to the Financing Agreement shall mean the Financing Agreement as amended by this Amendment, and (iii) confirms and agrees that to the extent that any such Loan Document purports to assign or pledge to the Collateral Agent for the benefit of the Agents and the Lenders, or to grant to the Collateral Agent for the benefit of the Agents and the Lenders a security interest in or Lien on, any Collateral as security for the Obligations of the Loan Parties from time to time existing in respect of the Financing Agreement (as amended hereby) and the other Loan Documents, such pledge, assignment and/or grant of the security interest or Lien is hereby ratified and confirmed in all respects. This Agreement does not and shall not affect any of the obligations of the Loan Parties, other than as expressly provided herein, including, without limitation, the Loan Parties' obligations to repay the Loans in accordance with the terms of Financing Agreement, or the obligations of the Loan Parties under any Loan Document to which they are a party, all of which obligations shall remain in full force and effect. Except as expressly provided herein, the execution, delivery and effectiveness of this Amendment shall not operate as a waiver of any right, power or remedy of the Agents or any Lender under the Financing Agreement or any other Loan Document, nor constitute a waiver of any provision of the Financing Agreement or any other Loan Document.

 

	 
	
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8. Release. In consideration of the agreements contained in this Amendment and other good and valuable consideration, each Loan Party (for itself and its Subsidiaries and the successors, assigns, heirs and representatives of each of the foregoing) (collectively, the "Releasors") does hereby fully, finally, unconditionally and irrevocably release and forever discharge each Agent, each Lender and each of their respective Affiliates, officers, directors, employees, attorneys, consultants and agents (collectively, the "Released Parties") from any and all debts, claims, obligations, damages, costs, attorneys' fees, suits, demands, liabilities, actions, proceedings and causes of action, in each case, whether known or unknown, contingent or fixed, direct or indirect, and of whatever nature or description, and whether in law or in equity, under contract, tort, statute or otherwise, which any Releasor has heretofore had or now or hereafter can, shall or may have against any Released Party by reason of any act, omission or thing whatsoever done or omitted to be done on or prior to the Fourth Amendment Effective Date directly arising out of, connected with or related to this Amendment, the Financing Agreement or any other Loan Document, or any act, event or transaction related or attendant thereto, or the agreements of any Agent or any Lender contained therein, or the possession, use, operation or control of any of the assets of any Loan Party, or the making of any Loans or other advances, or the management of such Loans or advances or the Collateral.

 

9. Miscellaneous.

 

(a) This Amendment may be executed in any number of counterparts and by different parties hereto in separate counterparts, each of which shall be deemed to be an original but all of which taken together shall constitute one and the same agreement. Delivery of an executed counterpart of this Amendment by facsimile or electronic mail shall be equally effective as delivery of an original executed counterpart of this Amendment.

 

(b) Section and paragraph headings herein are included for convenience of reference only and shall not constitute a part of this Amendment for any other purpose.

 

(c) The Borrowers will pay on demand all reasonable fees, costs and expenses of the Agents in connection with the preparation, execution and delivery of this Amendment.

 

(d) This Amendment shall be governed by, and construed in accordance with, the laws of the State of New York.

 

	 
	
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(e) Each Loan Party hereby acknowledges and agrees that this Amendment constitutes a "Loan Document" under the Financing Agreement. Accordingly, it shall be an Event of Default under the Financing Agreement if (i) any representation or warranty made by a Loan Party under or in connection with this Amendment shall have been untrue, false or misleading in any material respect when made, or (ii) after giving effect to any applicable grace periods set forth in the Loan Documents, any Loan Party shall fail to perform or observe any term, covenant or agreement contained in this Amendment.

 

(f) Any provision of this Amendment that is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining portions hereof or affecting the validity or enforceability of such provision in any other jurisdiction.

 

[Remainder of page intentionally left blank.]

 

	 
	
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IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed and delivered as of the date set forth on the first page hereof.

 

 

	 	BORROWERS:	 
	 	   	 	 
		
PEEKAY ACQUISITION, LLC

PEEKAY SPA, LLC

PEEKAY, INC.

CONREV, INC.

ZJ GIFTS I-1, L.L.C.

ZJ GIFTS M-1, L.L.C.

ZJ GIFTS M-2, L.L.C.

ZJ GIFTS M-3, L.L.C.

	
		  		
		By:	/s/ Ellery Roberts	 
	 	Name:	Ellery Roberts	 
	 	Title:	President and Treasurer	 

 

Fourth Amendment

 

	 
	
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	 	GUARANTORS:	 
	 	   	 	 
	 	
CHRISTALS ACQUISITION, LLC

ZJ GIFTS F-2, L.L.C.

ZJ GIFTS F-3, L.L.C.

ZJ GIFTS F-4, L.L.C.

ZJ GIFTS F-5, L.L.C.

ZJ GIFTS F-6, L.L.C.

CONDOM REVOLUTION, INC.

CHARTER SMITH SANHUEZA RETAIL, INC.

	 
	 	  	 	 
		By:	/s/ Ellery W. Roberts	 
	 	Name:	Ellery Roberts	 
	 	Title:	President and Treasurer	 

 

Fourth Amendment

 

	 
	
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	 	COLLATERAL AGENT AND ADMINISTRATIVE AGENT:	 
	 	  	 	 
	 	CORTLAND CAPITAL MARKET SERVICES LLC	 
	 	   	 	 
		By:	/s/ Emily Ergang Pappas 	 
	 	Name:	Emily Ergang Pappas	 
	 	Title:	Associate Counsel	 

 

Fourth Amendment

 

	 
	
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	 	ORIGINATION AGENT:	 
	 	   	 	 
	 	CB AGENCY SERVICES, LLC	 
	 	   	 	 
		By:	/s/ David Aho	 
	 	Name:	David Aho	 
	 	Title:	Partner	 

 

Fourth Amendment

 

	 
	
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	 	LENDERS:	 
	 	  	 	 
	 	
CB CA SPV, LLC

	 
	 	  	 	 
		By:	/s/ David Aho	 
	 	Name:	David Aho 	 
	 	Title:	Partnet	 

 

Fourth Amendment

 

	 
	
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	 	LENDERS:	 
	 	   	 	 
	 	
ADK Soho Fund LP

	 
	 	   	 	 
		By:	/s/ Nathaniel Klipper	 
	 	Name:	Nathaniel Klipper 	 
	 	Title:	Managing Partner 	 

 

Fourth Amendment

 

	 
	
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	 	LENDERS:	 
	 	   	 	 
	 	
CHATHAM CAPITAL MANAGEMENT IV, LLC, as agent, for each of Chatham Investment Fund QP IV, LLC and Chatham Investment Fund IV, LLC

	 
	 	   	 	 
		By:	/s/ Scott Kray	 
	 	Name:	Scott Kray 	 
	 	Title:	Managing Director	 

 

Fourth Amendment

 

	 
	
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	 	LENDERS:	 
	 	  	 	 
	 	
Alpine Associates, A Limited Partnership

	 
	 	  	 	 
		By:	/s/ Gary Moorman	 
	 	Name:	Gary Moorman	 
	 	Title:	Senior Analyst	 

 

Fourth Amendment

 

	 
	
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	 	LENDERS:	 
	 	   	 	 
	 	
Alpine Heritage, L.P.

	 
	 	   	 	 
		By:	/s/ Gary Moorman	 
	 	Name:	Gary Moorman 	 
	 	Title:	Senior Analyst	 

 

Fourth Amendment

 

	 
	
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	 	LENDERS:	 
	 	   	 	 
	 	
Alpine Heritage II, L.P.

	 
	 	   	 	 
		By:	/s/ Gary Moorman	 
	 	Name:	Gary Moorman 	 
	 	Title:	Senior Analyst	 

 

Fourth Amendment

 

	 
	
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	 	LENDERS:	 
	 	   	 	 
	 	
Alpine Heritage Offshore Fund, Ltd.

	 
	 	    	 	 
		By:	 /s/ Gary Moorman	 
	 	Name:	Gary Moorman 	 
	 	Title:	Senior Analyst	 

 

Fourth Amendment

 

	 
	
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	 	LENDERS:	 
	 	   	 	 
	 	
The K2 Principal Fund L.P.

	 
	 	   	 	 
		By:	/s/ Shawn Kimel	 
	 	Name:	Shawn Kimel 	 
	 	Title:	Managing Partner	 

 

Fourth Amendment

 

	 
	
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	 	LENDERS:	 
	 	   	 	 
	 	
TWIN HAVEN SPECIAL OPPORTUNITIES FUND IV, L.P.

	 
		
       

	
		
By: Twin Haven Capital Partners, LLC as Investment Manager

	
	 	    	 	 
		By:	/s/ Michael Vinci	 
	 	Name:	Michael Vinci 	 
	 	Title:	COO/CFO	 

 

Fourth Amendment

 

	 
	
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	 	LENDERS:	 
	 	    	 	 
	 	
TOR CAPITAL LLC

	 
		
    

	
		
By: Calangia LLC, Its Manager

	
	 	   	 	 
		By:	/s/ John C Rijo	 
	 	Name:	John C Rijo 	 
	 	Title:	Manager	 

 

Fourth Amendment

 

  

20OPTION
CANCELATION AND RELEASE

 

This
option cancelation and release (the “Agreement”), dated as of July 2, 2015 (the “Effective Date”),
is entered by Bitcoin Shop, Inc., a Nevada corporation (the “Company”), and Charles W. Allen (the “Executive”
and collectively with Company, the “Parties”).

 

WHEREAS,
on November 7, 2014, the Company and Executive entered into a nonqualified stock option agreement (the “Option Agreement”)
whereby the Executive was given the opportunity to purchase up to an aggregate of 9,500,000 shares of the Company’s common
stock, par value $0.001, (the “Common Shares”) at a per share price of $0.10 purchase if certain performance
metrics are achieved as set forth in the Option Agreement, (the “Share Award”); and

 

WHEREAS,
subject to the terms and conditions set forth in this Agreement, the Company and the Executive agree that the Executive shall
return the Share Award to the Company for cancellation in full.

 

NOW,
THEREFORE, in consideration of the mutual conditions and covenants contained in this Agreement, and for other good and valuable
consideration, the sufficiency and receipt of which is hereby acknowledged, it is hereby stipulated, consented to, and agreed
by and between the Parties as follows:

 

1.Cancellation
of Options. On the Effective Date, the Executive shall forfeit the Share Award and such Share Award shall be deemed cancelled
and of no further force or effect.

 

2.Limited
Release. The Executive hereby releases and discharges Company and its heirs, executors, administrators, parent company, holding
company, subsidiaries, successors, assigns, predecessors, past and present, officers, directors, principals, control persons,
past and present employees and registered representatives, insurers, representatives, and attorneys (the “Releasees”),
from and against any and all actions, causes of action, suits, debts, dues, sums of money, accounts, reckonings, bonds, bills,
specialties, covenants, contracts, controversies, agreements, promises, variances, trespasses, damages, judgments, extents, executions,
claims, and demands whatsoever, in law, admiralty or equity, against Releasees, that the Executive, on its own behalf and on behalf
of its heirs, executors, administrators, successors and assigns ever had, now have or hereafter can, shall or may, have for, upon,
or by reason of the Share Award, and any and all matters related thereto, whether or not known or unknown. The Release provided
in this Paragraph 2 shall be effective on the Effective Date.

 

    	 

    	 

    

 

3.No
assignment. The Executive represents and warrants that no other person or entity has any interest in the matters released
herein, and that he has not assigned or transferred, or purported to assign or transfer, to any person or entity all or any portion
of the matters released herein.

 

4.Fees
and Expenses. Each party shall be responsible for his or its own attorneys’ fees and costs.

 

5.Reliance.
The Parties acknowledge and represent that: (a) they have read the Agreement; (b) they clearly understand the Agreement and each
of its terms; (c) they fully and unconditionally consent to the terms of this Agreement; (d) they have had the benefit and advice
of counsel of their own selection; (e) they have executed this Agreement, freely, with knowledge, and without influence or duress;
(f) they have not relied upon any other representations, either written or oral, express or implied, made to them by any person;
and (g) the consideration received by them has been actual and adequate.

 

6.Entire
Agreement. This Agreement contains the entire agreement and understanding concerning the subject matter hereof between the
parties and supersedes and replaces all prior negotiations, proposed agreement and agreements, written or oral. Each of the parties
hereto acknowledges that none of the parties hereto, agents or counsel of any party, has made any promise, representation or warranty
whatsoever, express or implied, not contained herein concerning the subject hereto, to induce it to execute this Agreement and
acknowledges and warrants that it is not executing this Agreement in reliance on any promise, representation or warranty not contained
herein.

 

7.Amendments.
This Agreement may not be modified or amended in any manner except by an instrument in writing specifically stating that it is
a supplement, modification or amendment to the Agreement and signed by each of the Parties hereto against whom such modification
or amendment shall be claimed to be effective.

 

8.Enforceability.
Should any provision of this Agreement be declared or be determined by any court or tribunal to be illegal or invalid, the validity
of the remaining parts, terms or provisions shall not be affected thereby and said illegal or invalid part, term or provision
shall be severed and deemed not to be part of this Agreement.

 

9.Governing
Law. This Agreement shall be governed, interpreted, and construed in accordance with the laws of the State of New York.

 

10.Counterparts.
This Agreement may be executed in facsimile counterparts, each of which, when all parties have executed at least one such counterpart,
shall be deemed an original, with the same force and effect as if all signatures were appended to one instrument, but all of which
together shall constitute one and the same Agreement.

 

[REMAINDER
OF PAGE INTENTIONALLY LEFT BLANK]

 

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IN
WITNESS WHEREOF, the parties have duly executed this Agreement as of the date first indicated above.

 

	BITCOIN SHOP, INC. 	 	CHARLES W. ALLEN 
	 	 	 	 
	By:		 	 
	Name:	Michal Handerhan	 	 
	Title:	Chief Operating
    Officer	 	 

 

    	- 3 -

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