Document:

ex-4_11.htm

Bonds.com Group, Inc. 10-K

 

 

Exhibit 4.11

 

NEITHER THESE SECURITIES NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE EXERCISABLE INTO HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 (THE "SECURITIES ACT") OR THE SECURITIES LAWS OF ANY STATE AND MAY NOT BE SOLD OR OTHERWISE DISPOSED OF EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES
ACT AND APPLICABLE STATE SECURITIES LAWS OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS.

	
No. ___
	
___ Shares

 

Additional Purchase Rights Certificate

 

BONDS.COM GROUP, INC.

 

This Additional Purchase Rights Certificate (this "Certificate") certifies that ______________________, or registered assigns, is the registered holder of additional purchase rights (the "Additional
Purchase Rights") to purchase shares of common stock, par value $0.0001 per share ("Common Stock"), of Bonds.com Group, Inc., a Delaware corporation (the "Company").  This Certificate entitles the holder upon exercise to receive from Company during the Applicable Exercise Period (as defined below), up to ___ shares of Common Stock (the "Exercise
Shares") at the initial exercise price (the "Exercise Price") of $0.375 per share payable in lawful money of the United States of America upon surrender of this Certificate and payment of the Exercise Price at the office of Company designated for such purpose, but only subject to the conditions set forth herein and in the Unit Purchase Agreement referred to below.  Notwithstanding the foregoing, the Additional Purchase Rights may
be exercised without the exchange of funds pursuant to the net exercise provisions set forth below.  The Exercise Price and number of Exercise Shares issuable upon exercise of the Additional Purchase Rights represented by this Certificate are subject to adjustment upon the occurrence of certain events set forth in Section 4 below.  Notwithstanding anything herein to the contrary in this Certificate or the Unit Purchase Agreement, the Additional Purchase Rights evidenced by this Certificate
shall not be exercisable unless and until the Charter Amendment (as such term is defined in the letter agreement among the Company and the Fund Holdings, LLC, dated as of December 23, 2009) has become effective under applicable law.

 

 

Section 1.         The Additional Purchase Rights shall become exercisable if and to the extent that the warrants, options or other rights described on Schedule 1 hereto (the “Matching Rights”) are
exercised by the holder of such Matching Rights.  Upon exercise of any Matching Rights, the holder of this Certificate shall be entitled to exercise Additional Purchase Rights for a number of Exercise Shares equal to the product of (i) the number of shares of Common Stock as to which the holder of the Matching Rights exercised its rights, multiplied by (ii) a fraction, the numerator of which is the number of Additional Purchase Rights evidenced by this Certificate and the denominator of which is the
total number of Additional Purchase Rights issued by the Company under the Unit Purchase Agreement (in each case, after giving effect to any adjustments as provided herein) (the “Pro Rata Exercisable Rights”), and such Pro Rata Exercisable Rights shall remain exercisable from the date of the exercise of Matching Rights until 5:00 p.m., New York time, on the
third anniversary thereof (the “Applicable Exercise Period”). For example, if a holder of Matching Rights exercises its rights with respect to 5,000 shares of Common Stock on December 31, 2010 and this Certificate evidenced 50% of all Additional Purchase Rights issued under the Unit Purchase Agreement, the holder of this Certificate would be entitled to exercise Additional Purchase Rights
with respect to 2,500 Exercise Shares any time between December 31, 2010 and December 31, 2013.  Additional Purchase Rights not exercised during the Applicable Exercise Period with respect thereto may not be exercised after the Applicable Exercise Period, and to the extent not exercised by such time, shall become void.

  

1

  

 

Section 2.         The Additional Purchase Rights evidenced by this Certificate are issued pursuant to a Unit Purchase Agreement dated as of August 28, 2009 (the "Unit Purchase Agreement"), duly executed and
delivered by the Company, which Unit Purchase Agreement is hereby incorporated by reference in and made a part of this instrument and is hereby referred to for a description of the rights, limitation of rights, obligations, duties and immunities thereunder of Company and the holder (the word "holder" meaning the registered holder) of the Additional Purchase Rights represented by this Certificate.  A copy of the Unit Purchase Agreement
may be obtained by the holder hereof upon written request to Company.

 

Section 3.         Subject to the limitation set forth in Section 1, the holder of the Additional Purchase Rights evidenced by this Certificate may exercise some or all of the Additional Purchase Rights evidenced by this Certificate by surrendering this Certificate, with the
form of election to purchase set forth hereon properly completed and executed, together with payment of the Exercise Price in cash at the office of the Company designated for such purpose.  In the alternative, the holder of this Certificate may exercise some or all of the Additional Purchase Rights evidenced by this Certificate, during the Applicable Exercise Period, on a net basis, such that, without the exchange of any funds, such holder receives that number of Exercise Shares otherwise issuable (or
payable) upon exercise of the Additional Purchase Rights represented by this Certificate less that number of Exercise Shares having a Current Market Price (as defined herein) at the time of exercise equal to the aggregate Exercise Price that would otherwise have been paid by such holder of Exercise Shares.  In the event that upon any exercise of the Additional Purchase Rights evidenced hereby the number of Exercise Shares issuable upon such exercise shall be less than the total number of Exercise Shares
evidenced hereby, there shall be issued to the holder hereof or his assignee a new Certificate evidencing the number of Exercise Shares not exercised.

 

Section 4.

 

(a)           Adjustments Generally.

 

The Exercise Price and the number of Exercise Shares issuable upon the exercise of the Additional Purchase Rights evidenced by this Certificate are subject to adjustment from time to time upon the occurrence of the events enumerated in this Section 4; provided, however,
such adjustments shall be made in direct proportion to adjustments, if any, made with respect to the Matching Rights.  For example, if only 50% of the Matching Rights outstanding as of the time such adjustment is made would have their exercise price and number of shares adjusted in the event of a stock dividend, then an equitable
50% adjustment shall be made to the Additional Purchase Rights that remain at such time evidenced hereby.  For purposes of this Section 4, “Shares” means shares of Common Stock now or hereafter authorized of the Company.  To the extent that two or more provisions of this Section 4 provide duplicative adjustments upon the occurrence of any one enumerated event,
the holder shall only be entitled to select one adjustment.

  

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(b)           Adjustment for Change in Capital Stock.

 

	
  
	
If the Company:

 

	
  
	
(1)
	
pays a dividend or makes a distribution on its Shares in additional Shares or other equity interests of the Company;

 

	
  
	
(2)
	
subdivides its outstanding Shares into a greater number of Shares; or

 

	
  
	
(3)
	
combines its outstanding Shares into a smaller number of Shares; then the Exercise Price shall be adjusted in accordance with the formula:

 

E1= E x O

 

A

 

	
  
	
Where:

 

	
  
	
E1
	
=
	
the adjusted Exercise Price.

 

	
  
	
E
	
=
	
the current Exercise Price.

 

	
  
	
O
	
=
	
the number of Shares issued and outstanding prior to such action.

 

	
  
	
A
	
=
	
the number of Shares issued and outstanding immediately after such action.

 

When any adjustment is required to be made in the Exercise Price pursuant to this Section 4(b), the number of shares of Common Stock purchasable upon the exercise of this Certificate shall be changed to the number determined by dividing (i) an amount equal to the number of shares issuable upon the exercise of this
Certificate immediately prior to such adjustment, multiplied by the Exercise Price in effect immediately prior to such adjustment, by (ii) the Exercise Price in effect immediately after such adjustment.

 

In the case of a dividend or distribution, the adjustment shall become effective immediately after the record date for determination of holders of Shares entitled to receive such dividend or distribution, and in the case of a subdivision, combination
or reclassification, the adjustment shall become effective immediately after the effective date of such corporate action.

  

3

  

 

If after an adjustment the holder, upon exercise of the Additional Purchase Rights, may receive Shares of two or more classes of equity interests of the Company, the Company shall determine the allocation of the adjusted Exercise Price between the classes of equity interests.  After such allocation, the exercise
privilege, the number of Shares issuable upon such exercise and the Exercise Price of each class of equity interests shall thereafter be subject to adjustment on terms comparable to those applicable to Shares in this Section 4.

 

Such adjustment shall be made successively whenever any event listed above shall occur.

 

(c)           Adjustments for Issuances Below the Exercise Price.

 

If the Company distributes or grants any rights, options or warrants to any person entitling it at any time after the record date mentioned below to purchase Shares at an Aggregate Price Per Share (as defined below) less than the Exercise Price, upon the exercise of any such rights, options or warrants, the Exercise
Price shall be adjusted to equal the Aggregate Price Per Share with respect to such rights, options or warrants. The adjustment shall be made successively whenever any such rights, options or warrants are issued and exercised.  As used herein, the term “Aggregate Price Per Share” means, with respect to any right, option or warrant, the sum of (i) the exercise price of such right, option or warrant and (ii) the amount of consideration
paid, if any, by the holder to the Company to acquire such right, option or warrant.

 

If Company issues any Shares for a consideration per Share less than the Exercise Price, the Exercise Price shall be adjusted to equal the consideration per Share paid in such issuance.  The adjustment shall be made successively whenever any such issuance is made, and shall become effective immediately after
such issuance.

 

If the Company issues any securities convertible into or exchangeable for Shares for a consideration per Share initially deliverable upon conversion or exchange of such securities less than the Exercise Price, upon conversion or exchange of any such securities, the Exercise Price shall be adjusted to equal the exercise
price with respect to convertible securities. The adjustment shall be made successively whenever any such conversion or exchange is made.

 

The provisions of this Section 4(c) shall not be applicable if the Company (or its successor corporation) issues Shares or other equity interests pursuant to an Excluded Transaction (as defined in the Unit Purchase Agreement).

 

(d)           Certain Definitions.

 

(1)           Current Market Price.  The Current Market Price per Share on any date is:

  

4

  

 

	
  
	
(i)
	
if the Shares (or successor equity interests) are not registered under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), the Fair Market Value (as defined below) of the Shares; or

 

	
  
	
(ii)
	
if the Shares (or successor equity interests) are registered under the Exchange Act, the average of the Quoted Prices of the Shares (or successor equity interests) for 30 consecutive trading days commencing 45 trading days before the date in question.  The “Quoted Price” of a Share (or successor equity interest) is the last reported
sales price of a Share (or successor equity interest) as reported by Nasdaq National Market, or if the Shares (or successor equity interests) are listed on a national securities exchange, the last reported sales price of a Share (or successor equity interest) on such exchange (which shall be for consolidated trading if applicable to such exchange), or if neither so reported or listed, the last reported bid price of a Share (or successor equity interests).  In the absence of one or more such quotations,
the Current Market Price of the Shares (or successor equity interests) shall be determined as if the Shares (or successor equity interests) was not registered under the Exchange Act.

 

(2)           Fair Market Value.  Fair Market Value means the value obtainable upon a sale in an arm's length transaction to a third party under usual and normal circumstances, with neither
the buyer nor the seller under any compulsion to act, with equity to both, as determined by the Board of Directors of Company (the “Board”) in good faith; provided, however, that the Fair Market Value of the Shares shall be calculated as if 100% of the Company were sold as a going concern and without regard
to any discount for the lack of liquidity or on the basis that the relevant Shares (or successor equity interests) do not constitute a majority or controlling interest in the Company and assuming, if applicable, the exercise or conversion of all in-the-money warrants, convertible securities, options or other rights to subscribe for or purchase any additional Shares or other equity interests of the Company or securities convertible or exchangeable into such Shares or other equity interests; and provided, further,
that if holder shall dispute the Fair Market Value as determined by the Board, the Company shall retain an Independent Expert.  The determination of Fair Market Value by the Independent Expert shall be final, binding and conclusive on Company and holder.  All costs and expenses of the Independent Expert shall be borne by the Company unless the determination of Fair Market Value by the Independent Expert is less than 10% more favorable to holder than the Fair Market Value determined by the
Board, in which event the cost of the Independent Expert shall be shared equally by holder and Company, or less than 5% more favorable to holder than the Fair Market Value determined by the Board, in which event the cost of the Independent Expert shall be borne solely by holder.

 

(3)           Independent Expert.  Independent Expert means an investment banking firm reasonably agreeable to both the Company and the holder who does not (and
whose affiliates do not) have a financial interest in the Company or any of its affiliates.

  

5

  

 

(e)           Reorganizations.

 

If any capital reorganization or reclassification of the capital stock of Company, any consolidation or merger of the Company with another entity, or the sale, lease or exchange of all or substantially all of the Company’s assets to another entity shall be effected in such a way that holders of shares of Common
Stock of the Company shall be entitled to receive stock, securities or assets with respect to or in exchange for such shares, then, as a condition precedent to such reorganization, reclassification, consolidation, merger, sale, lease or exchange, lawful and adequate provisions shall be made whereby the holder shall thereafter have the right to purchase and receive upon the basis and the terms and conditions specified in this Certificate and in lieu of the shares of Common Stock immediately theretofore purchasable
and receivable upon the exercise of the rights represented hereby, such shares of stock, securities or assets as may be issued or payable in such reorganization, reclassification, consolidation, merger, sale, lease or exchange with respect to or in exchange for the number of shares of Common Stock purchasable and receivable upon the exercise of the rights represented hereby had such rights been exercised immediately prior thereto, and in any such case appropriate provision shall be made with respect to the rights
and interests of holder to the end that the provisions hereof shall thereafter be applicable, as nearly as may be possible, in relation to any shares of stock, securities or assets thereafter deliverable upon the exercise hereof.  The Company will not effect any such reorganization, recapitalization, consolidation, merger, sale, lease or exchange, unless prior to the consummation thereof the successor entity (if other than Company) resulting from such consolidation or merger or the entity purchasing
or leasing such assets or acquiring such surviving or resulting entity shall assume by written instrument, executed and mailed or delivered to holder at the last address thereof appearing on the books of the Company, the obligation to deliver to such holder such shares of stock, securities or assets as, in accordance with the foregoing provisions, such holder may be entitled to purchase.

 

(f)           Notice by the Company.

 

When any adjustment is required to be made in the number of shares of Common Stock purchasable hereunder or the Exercise Price, the Company shall promptly mail to holder a certificate setting forth (i) a brief statement of the facts requiring such adjustment, (ii) the Exercise Price after such adjustment and (iii) the
kind and amount of stock or other securities or property into which this Certificate shall be exercisable after such adjustment.

 

Section 5.         Upon receipt by the Company of evidence reasonably satisfactory to it and (a) in case of loss, theft or destruction, if requested by the Company, upon receipt of  indemnity or security reasonably satisfactory to it, or (b) in the case of mutilation,
upon surrender and cancellation of this Certificate, the Company will make and deliver a new certificate identical in tenor and date in lieu of this Certificate.

 

Section 6.         The Certificate, when surrendered at the office of Company by the registered holder thereof in person or by legal representative or attorney duly authorized in writing, may be exchanged,
in the manner and subject to the limitations provided in the Unit Purchase Agreement, but without payment of any service charge, for another Certificate or Certificates of like tenor evidencing in the aggregate a like number of Exercise Shares.

  

6

  

 

Section 7.         This Certificate, and any Additional Purchase Rights evidenced hereby, may be assigned or transferred as provided herein and in accordance with and subject to the provisions of (i) applicable state securities laws, and (ii) the Securities Act and
the rules and regulations promulgated thereunder.  Upon any transfer or assignment of this Certificate, or any Additional Purchase Rights evidenced hereby, the holder shall provide written notice of the transfer or assignment to the Company, which shall include a representation from the holder that (A) the transferee is a person to whom this Certificate may be legally transferred without registration under the Securities Act, and (B) such transfer will not violate any applicable law or governmental
rule or regulation, including, without limitation, any applicable federal or state securities law.  Any assignment or transfer shall be made by surrender of this Certificate to the Company at its principal office with the Assignment Form annexed hereto duly executed and funds sufficient to pay any transfer tax, if any.  In such event, the Company shall, without charge, execute and deliver a new certificate in the name of the assignee named in such instrument of assignment in the amount so
assigned and this Certificate shall be promptly canceled; provided, however, that in the event that holder hereof shall assign or transfer less than the full amount of the Additional Purchase Rights evidenced by this Certificate, a new certificate evidencing the remaining portion of the Additional Purchase Rights evidenced by this Certificate not so assigned or transferred shall be issued in the name
of holder.

 

Section 8.         Until exercised, neither the Additional Purchase Rights, the Unit Purchase Agreement, nor this Certificate entitles any holder hereof to any rights of a stockholder of Company.

  

7

  

 

IN WITNESS WHEREOF, the Company has caused this Certificate to be signed by a duly authorized officer.

 

Dated as of ____________________

 

	  	  	
BONDS.COM GROUP, INC.

 

	  	  	  
	  	  	  
	  	  	
By: John J. Barry IV, President

	  	  	  
	  	  	  
	  	  	  
	  	  	
By: Christopher Loughlin, Secretary

 

  

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FORM OF ASSIGNMENT

 

(To be signed only upon assignment of any Additional Purchase Rights evidenced by this Certificate)

 

FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto:

 

__________________________________

__________________________________

__________________________________

 

(Name and address of assignee must be printed or typewritten)

 

___________ shares of Bonds.com Group, Inc. common stock purchasable under the Additional Purchase Rights evidenced by the within Certificate, hereby irrevocably constituting and appointing ______________________ Attorney to transfer said Additional Purchase Rights on the books of the Company, with full power of substitution
in the premises.

 

Dated: ___________

 

____________________________

(Signature of Registered Owner)

 

  

  

  

 

FORM OF ELECTION TO PURCHASE

 

(To be executed upon exercise of the Additional Purchase Rights)

 

The undersigned hereby irrevocably elects to exercise the right, represented by this Certificate, to receive _______________ shares of Common Stock and herewith tenders payment for such shares to the order of Bonds.com Group, Inc. in the amount of $_______________ in accordance with the terms hereof unless the holder
is exercising the Additional Purchase Rights pursuant to the net exercise provisions set forth in this Certificate.  The undersigned requests that a certificate for such shares be registered in the name of ________________, whose address is _______________ and that such shares be delivered to ________________, whose address is _______________.  If said number of shares is less than all of the shares of Common Stock purchasable hereunder, the undersigned requests that a new Certificate representing
the remaining balance of such shares be registered in the name of ________________, whose address is _____________, and that such Certificate be delivered to _______________, whose address is _______________.

 

Signature:_____________________________

 

Date:_____________

 

  

  

  

 

MATCHING RIGHTSex-10_14.htm

Bonds.com Group, Inc. 10-K

 

 

Exhibit 10.14

 

AMENDMENT NO.1, WAIVER AND CONSENT TO COMMERCIAL TERM LOAN AGREEMENT

This AMENDMENT NO. 1, WAIVER AND CONSENT TO COMMERCIAL TERM LOAN AGREEMENT (this “Amendment”
or this “Agreement”), dated as of December 31, 2009, is entered into by and among Bonds.com Group, Inc., a Delaware corporation (the “Borrower”), Bonds.com Holdings, Inc., a Delaware corporation (“Guarantor”),
Siesta Capital, LLC (the “Pledgor”), and MBRO Capital, LLC, a Connecticut limited liability company (the “Lender”).

Background

Borrower and Lender are parties to a Commercial Term Loan Agreement, dated March 31, 2009 (the “Loan Agreement”).  Borrower and Lender wish to amend and provide for certain waivers and consents pursuant to the Loan Agreement in the manner
set forth below.  Pursuant to Section 9.06 of the Loan Agreement, the Loan Agreement may only be amended or waived by a written instrument signed by the parties thereto.  Accordingly, Borrower and Lender are entering into, executing and delivering this Amendment in order to amend and provide for certain waivers and consents pursuant to the Loan Agreement in the manner set forth below.

Agreement

In consideration of the foregoing premises and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereby agree as follows:

Section 1.                      Definitions.  Capitalized terms used
herein and not defined shall have the meanings given to them in the Loan Agreement.

Section 2.                      Amendment to Section 6.03(h).  Section
6.03(h) of the Loan Agreement is hereby amended by deleting such section and replacing it in its entirety with the following:

“(h)           Redemption.  Issue, sell, redeem or repurchase any stock or membership interest, as the case may be, prior to full repayment of the debt owed to the Lender without the
prior written consent of the Lender; provided, however, that no such consent shall be required for issuances of any stock pursuant to (i) equity incentive arrangements with employees, officers, directors or consultants of the Borrower approved by the Borrower’s Board of Directors, (ii) convertible, exercisable or exchangeable securities outstanding as of the date of this Agreement, or (iii) issuances for cash consideration the proceeds of which are used to repay the Debt evidenced by the Loan Documents.”

Section 3.                      Effectiveness of Amendment of Section 6.03(h).  For
all purposes of the parties respective rights, benefits, limitations, covenants and obligations under the Loan Agreement, the amendment to Section 6.03(h) of the Loan Agreement set fort in Section 2 of this Amendment shall be deemed made, and shall be effective retroactively to, March 31, 2009.

  

1

  

Section 4.                      Waivers and Consents.

(a)           The Lender hereby irrevocably waives any breach and any Event of Default under Sections 6.03(h), (j) and (k) of the Loan Agreement relating to, arising out of or resulting from, and consents to, the transactions contemplated, consummated and to be consummated
by the Borrower pursuant to the Unit Purchase Agreement, dated as of August 28, 2009, by and among the Borrower and Fund Holdings, LLC (as the same may be amended from time to time), including, without limitation, the issuance and sale of Units (as defined therein) and any resulting material change in the Borrower’s ownership.

(b)           The Lender hereby consents pursuant to Sections 6.03(h) and (k) of the Loan Agreement to the transactions contemplated by the Unit Purchase Agreement proposed to be entered into among the Borrower and Laidlaw Venture Partners III, LLC in the form attached
hereto as Exhibit A.

(c)           The Lender hereby consents pursuant to Sections 6.03(h) and (k) of the Loan Agreement to the transactions contemplated by the Unit Purchase Agreement proposed to be entered into among the Borrower and UBS Americas Inc. in the form attached hereto as Exhibit
B.

(d)           The Lender hereby consents, pursuant to Sections 6.03(h) and (k) of the Loan Agreement to the Borrower effecting any and all redemptions of the Series A Preferred Stock (as defined below) in accordance with the Borrower’s Certificate of Designation
(as defined below) or the Stockholders’ Agreement (as defined below).  For purposes of this Amendment and the Loan Agreement, “Series A Preferred Stock” means the Company’s Series A Participating Preferred Stock, par value $0.001 per share, to be created by the Borrower by the filing of the Certificate of Designation; “Certificate of Designation”
means the Certificate of Designation of the Series A Participating Preferred Stock, in the form of Exhibit C hereto or in such other form that is not materially less favorable to the Lender than those set forth on Exhibit C, to be filed by the Borrower with the Secretary of State of the State of Delaware; and “Stockholders’
Agreement” means that certain Stockholders’ Agreement to be entered into by the Company and the stockholders named therein, in the form of Exhibit D hereto or in such other form that is not materially less favorable to the Lender than those set forth on Exhibit D.

(e)           The Lender hereby consents pursuant to Sections 6.03(h) and (k) of the Loan Agreement to the Borrowers issuance (a) of warrants to purchase 20,000,000 shares of common stock with the following exercise prices: (i) 5,000,000 for an exercise price of $0.50,
(ii) 10,000,000 for an exercise price of $1.00, and (iii) 5,000,000 for $1.50, and (b) the issuance of the shares of common stock underlying such warrants in accordance with the terms thereof, to InterDealer Information Technologies, LLC, InterDealer Securities, LLC and InterDealer IP Holding LLC, licensors of intellectual property to the company.

Section 5.                      Issuance of Warrant.  Within five (5)
business days of the date hereof, the Company shall issue to the Lender a warrant to purchase 500,000 shares of the Company’s Common Stock in the same form as the existing Warrant (the “Additional Warrant”); provided that the
expiration date of the Additional Warrant shall be the date five years from the date of its issuance.  For avoidance of doubt, the exercise price of the Additional Warrant shall be $0.375 per share of Common Stock and, upon the occurrence of an Event of Default and subject to the rights of the Company set forth in Section 8.03 of the Loan Agreement, such exercise price shall automatically adjust to $0.0001 per share of Common Stock.

  

2

  

Section 6.                      Effect of Modification and Amendment of Loan Agreement.  The
Loan Agreement shall be deemed to be modified and amended in accordance with the provisions of this Amendment and the respective rights, duties and obligations of the parties under the Loan Agreement shall remain to be determined, exercised and enforced under the Loan Agreement subject in all respects to such modifications and amendments in writing, and all the terms and conditions of this Amendment shall be part of the terms and conditions of the Loan Agreement for any and all purposes. All the other terms of
the Loan Agreement shall continue in full force and effect subject to the amendments set forth herein.  In the event of inconsistency between the terms of this Amendment and the terms of the Loan Agreement, the terms of this Amendment shall govern.

Section 7.                      Representations, Warranties and Covenants.  All
of the representations, warranties and covenants contained in the Loan Documents are true and correct on and as of the date hereof, are incorporated herein by this reference, and are remade.  Without limiting the generality of the foregoing, Borrower, Guarantor and Pledgor (collectively, the “Obligors”), jointly and severally represent, warrant and covenant that:

(a)           No Default.  Subject to the waivers, amendments and consents set forth above, the Borrower is not in default under the Loan Documents and Guarantor and Pledgor (collectively, the
“Guarantors”) are not in default of the Guaranty Agreements (as defined in the Loan Documents).

(b)           Authority.  (1)  The Borrower has full corporate power and authority to enter into and perform the obligations under this Agreement, to execute and deliver and perform
this Agreement and all other documents in connection herewith and to incur the obligations provided for herein and therein, all of which have been duly authorized by all necessary and proper corporate action.  No other consent or approval or the taking of any other action in respect of shareholders or any public authority is required as a condition to the validity or enforceability of this Agreement or the documents contemplated hereby.  The execution and delivery of this Agreement is for
a valid purpose.

(2)           The Guarantors have full power and authority to enter in to and perform the obligations under this Agreement, to execute and deliver this Agreement and all other documents in connection herewith and to incur the obligations provided for herein and therein.  The
execution and delivery of this Agreement is for a valid purpose.

(c)           Binding Agreement.  This Agreement constitutes the valid and legally binding obligation of the Obligors enforceable against each in accordance with its terms.

  

3

  

Section 8.                      Default.  The occurrence of any default
under any of the Loan Documents or the non-compliance with any of the terms, or misrepresentation or inaccuracy of any of the acknowledgments or representations hereof shall constitute a default under this Agreement.

Section 9.                      Remedies.  Upon the occurrence of any
default, the Lender shall have in any jurisdiction where enforcement hereof is sought, in addition to all other rights and remedies which the Lender may have under law and equity, all of the rights and remedies set forth in the Loan Documents.

Section 10.                    Cumulative Remedies.  The enumeration of the Lender's
rights and remedies set forth in this Agreement is not intended to be exhaustive and the exercise by the Lender of any right or remedy shall not preclude the exercise of any other rights or remedies, all of which shall be cumulative and shall be in addition to any other right or remedy given hereunder or under any other agreement between the parties or which may now or hereafter exist in law or at equity or by suit or otherwise. No delay or failure to take action on the part of the Lender in exercising any right,
power or privilege shall operate as a waiver thereof, nor shall any single or partial exercise of any such right, power or privilege  preclude other or further exercise thereof or the exercise of any other right, power or privilege or shall be construed to be a waiver of any default.  No course of dealing between any of the Obligors and the Lender or their employees shall be effective to change, modify or discharge any provision of this Agreement or to constitute a waiver of any default.

Section 11.                    Guaranty Agreements.  (a)  The Guarantors
acknowledge that each is unconditionally liable and legally and validly indebted to the Lender in accordance with the terms of the Guaranty Agreements of each of the Guarantors.

(b)           The Guarantors each affirm that the Guaranty Agreements of each of the Guarantors is in full force and effect and includes, without limitation, the indebtedness, liabilities and obligations arising under or in any way connected with this Agreement and
the Loan Documents whether now existing or hereafter arising including, without limitation, principal, interest, costs and expenses of collection, and attorneys' fees, their paralegal fees and related disbursements.

Section 12.                    Expenses.  The Obligors agree that each is jointly
and severally responsible for the payment of all costs and expenses incurred by the Lender, in the preparation of, or in any way associated with this Agreemen, including without limitation, attorneys' fees, their paralegal fees and related disbursements.

Section 13.                    Miscellaneous

(a)           Amendments and Waivers. This Agreement and any term, covenant or condition hereof may not be changed, waived, discharged, modified or terminated except by a writing executed by the parties
hereto or thereto.  The failure on the part of the Lender to exercise, or the Lender's delay in exercising, any right, remedy or power hereunder or the other Loan Documents shall not preclude any other or future exercise thereof, or the exercise of any other right, remedy or power.

(b)           Notices.  All notices, requests, consents, demands and other communications hereunder shall be in writing and shall be mailed by registered or certified first class mail or delivered
by an overnight courier to the respective parties to this Agreement as follows:

 

  

4

  

	
If to the Borrower:
	
Bonds.com Group, Inc.

1515 South Federal Highway

Suite 12

Boca Raton, Florida 33432

Attention:  Chief Executive Officer

	  	  
	
With a copy to:
	
Hill Ward Henderson

101 E. Kennedy Boulvard, Suite 3700

Tampa, Florida 33601

Attention: Mark A. Danzi

	  	  
	
If to the Lender:
	
MBRO Capital, LLC

991 Ponus Ridge

New Canaan, Connecticut  06840

Attention:  William P. Mahoney

	  	  
	
With a copy to:
	
Diserio Martin O'Connor & Castiglioni LLP

One Atlantic Street

Stamford, Connecticut  06901

Attention:  Kevin T. Katske, Esq.

(c)           Section Headings, Severability, Entire Agreement.  Section and subsection headings have been inserted herein for convenience of the Lender only and shall not be construed as part
of this Agreement.  Every provision of this Agreement is intended to be severable; if any term or provision of this Agreement, or any other document delivered in connection herewith shall be invalid, illegal or unenforceable for any reason whatsoever, the validity, legality and enforceability of the remaining provisions hereof or thereof shall not in any way be affected or impaired thereby.  All Exhibits and Schedules to this Agreement shall be deemed to be part of this Agreement.  This
Agreement and the Exhibits and Schedules attached hereto and thereto embody the entire agreement and understanding between the Borrower and the Obligors and supersede all prior agreements and understandings relating to the subject matter hereof unless otherwise specifically reaffirmed or restated herein.

(d)           Counterparts.  This Agreement may be executed in any number of counterparts and by facsimile, each of which, when so executed and delivered shall be an original, and it shall not
be necessary when making proof of this Agreement to produce or account for more than one counterpart.

(e)           Governing Law; Consent to Jurisdiction.  This Agreement and all rights and obligations of the parties hereunder shall be construed and interpreted in accordance with the laws of
the State of Connecticut (excluding the laws applicable to conflicts or choice of law).  THE OBLIGORS AGREE THAT ANY SUCH SUIT FOR THE ENFORCEMENT OF THIS AGREEMENT OR ANY OF THE LOAN DOCUMENTS MAY BE BROUGHT IN THE COURTS OF CONNECTICUT OR ANY FEDERAL COURT SITTING THEREIN AND CONSENTS TO THE NONEXCLUSIVE JURISDICTION OF SUCH COURT AND SERVICE OF PROCESS IN ANY SUCH SUIT BEING MADE UPON THE MAKER BY MAIL AT THE ADDRESS
SET FORTH IN THIS NOTE. THE OBLIGORS HEREBY WAIVE ANY OBJECTION THAT IT MAY NOW OR HEREAFTER HAVE TO THE VENUE OF ANY SUCH SUIT OR ANY SUCH COURT OR THAT SUCH SUIT IS BROUGHT IN AN INCONVENIENT FORUM.

(f)           Further Assurances.   At the request of the Lender, the Obligors agree that at their expense, they shall promptly execute and deliver all further instruments and documents,
and take all further action, that may be reasonably necessary or desirable, or that the Lender may request, to enable the Lender to exercise and enforce its rights and remedies hereunder.

(Signature Pages Follow)

  

5

  

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

 

	  	  	
BORROWER:

	  	  	  
	  	  	
BONDS.COM GROUP, INC.

	  	  	  
	  	  	
By:
	/s/ John J. Barry IV
	  	  	
Name:
	John J. Barry IV
	  	  	
Title:
	Chief Executive Officer

	  	  	
GUARANTOR:

	  	  	  
	  	  	
BONDS.COM HOLDINGS, INC.

	  	  	  
	  	  	
By:
	/s/ John J. Barry IV
	  	  	
Name:
	John J. Barry IV
	  	  	
Title:
	Authorized Person

	  	  	
PLEDGOR:

	  	  	  
	  	  	
SIESTA CAPITAL, LLC

	  	  	  
	  	  	
By:
	/s/ John J. Barry IV
	  	  	
Name:
	John J. Barry IV
	  	  	
Title:
	Authorized Person

	  	  	
LENDER:

	  	  	  
	  	  	
MBRO CAPITAL, LLC

	  	  	  
	  	  	
By:
	/s/ James F. Mahoney
	  	  	
Name:
	James F. Mahoney
	  	  	
Title:
	Director

 

[SIGNATURE PAGE TO AMENDMENT NO.1, WAIVER AND CONSENT TO COMMERCIAL LOAN AGREEMENT]

 

  

  

  

 

Exhibit A

Unit Purchase Agreement with Laidlaw Venture Partners III, LLC

(see attached pages)

  

  

  

Exhibit B

Unit Purchase Agreement with UBS Americas Inc.

(see attached pages)

  

  

  

Exhibit C

Form Certificate of Designations of Series A Participating Preferred Stock

(see attached pages)

  

  

  

Exhibit D

Form of Stockholders Agreement

(see attached pages)

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