Document:

exv10w1

Exhibit 10.1

AGREEMENT

(South Canyon Landfill, Glenwood Springs, CO)

     This Agreement is made and entered into as of the 10TH day of January, 2011, by and between
SOUTH CANYON WASTE SYSTEMS, LLC, a Colorado limited liability company (“Waste Systems”) and
CONVERTED ORGANICS INC., a Delaware corporation (“Converted Organics”).

     WITNESSETH:

     WHEREAS, Waste Systems has entered into that certain Agreement for Operations Management for
South Canyon Landfill dated as of June 1, 2009 (as amended, the “South Canyon Contract”) with the
Glenwood Springs Landfill Enterprise (“Enterprise”) pursuant to which Waste Systems is to provide
operations management and other services for Enterprise’s South Canyon Landfill (the “Landfill”) as
more fully set forth in the South Canyon Contract;

     WHEREAS, in order to more effectively provide liquid waste management services under the South
Canyon Contract, Waste Systems is installing an approximately 12,000 gpd LM-HTTM Concentrator Model
12K-WB waste water concentrator, an enhanced misting system in connection with pond evaporation, a
wood burner and related equipment (as more fully described on Attachment A hereto, the
“Equipment”) for use at the Landfill; and

     WHEREAS, Waste Systems desires to sell the Equipment to Converted Organics, and Converted
Organics desires to purchase the Equipment from Waste Systems; and

     WHEREAS, during the Term (as defined below) of this Agreement, the parties further desire for
Converted Organics to keep and maintain the Equipment on the Landfill in good working order and
state of repair and to fulfill all liquid waste management services under the South Canyon Contract
in accordance with the terms of such Contract, except to the extent specific obligations and duties
in connection therewith are delegated to Waste Systems under the terms of this Agreement.

     NOW, THEREFORE, in consideration of the foregoing recitals and the mutual covenants and
agreements contained in this Agreement, and for other good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

1. Equipment. Waste Systems shall provide, at its sole cost and expense, all labor and
materials necessary to install, start-up and commission the Equipment in a good and workmanlike
manner, in compliance with all applicable laws and permits, and in a manner that will not cause a
default under the South Canyon Contract. The parties acknowledge and agree that the Enterprise has
received the necessary permits for the operation of the Equipment upon the Landfill (See
Attachment B hereto).

 

 

2. Payment of Purchase Price — Converted Organics to Waste Systems. The purchase price
for the Equipment shall be One Million Six Hundred Thousand Dollars ($1,600,000). Converted
Organics shall pay such amount in three scheduled payments to Waste Systems by cashier’s check,
wire transfer or other immediately available funds as follows:

	 	•	 	Scheduled Payment 1. Six Hundred Thousand Dollars ($600,000) due
January 1, 2011;
	 
	 	•	 	Scheduled Payment 2. Five Hundred Thousand Dollars ($500,000) due April
1, 2011; and
	 
	 	•	 	Scheduled Payment 3. Five Hundred Thousand Dollars ($500,000) due July
1, 2011, or such later date as the final CDPHE Air Permit is issued.

Buyer shall also be responsible for the payment to Waste Systems of all applicable sales, use or
similar tax related to the purchase of the Equipment; such payment shall be made by Converted
Organics as and when required under applicable state and local law.

3. Operation; Payment — Waste Systems to Converted Organics. During the entire Term of
this Agreement, Converted Organics shall (except to the extent that such obligations and duties
have been delegated to Waste Systems under the terms of this Agreement) keep, operate and maintain
the Equipment on the Landfill in good working order and state of repair and shall fulfill all
liquid waste management services under the South Canyon Contract in accordance with the terms of
such Contract. In consideration of Converted Organics’ ownership, maintenance and operation of the
Equipment on the Landfill and fulfillment of all liquid waste management services under the South
Canyon Contract, from and after January 1, 2011 and during the remainder of the Term, Waste Systems
shall pay to Converted Organics 100% of all payments from Enterprise for water waste services under
the South Canyon Contract, subject to and within five (5) days after Waste Systems’ receipt of
same, less the following deductions for the provisions of the following services by Waste Systems
on behalf of Converted Organics:

	 	(a)	 	The sum of $5,616.00 per month to reimburse Waste Systems the cost of labor to
operate the Equipment; provided, however, such sum shall increase by two percent (2%)
on April 1 of each calendar year during the Term;
	 
	 	(b)	 	The sum of $3,333.33 per month for marketing services provided by Waste Systems
to bring water waste into the Landfill (in accordance with the scope of work attached
hereto as Attachment C); provided, however, such sum shall increase by two
percent (2%) on April 1 of each calendar year during the Term;
	 
	 	(c)	 	A sum equal to all costs (calculated based on the actual cost to Waste Systems
for such costs without any mark-up) of repair and maintenance, laboratory supplies,
third-party laboratory testing, and miscellaneous expenses incurred by Waste Systems in
servicing, operating, maintaining and repairing the Equipment,

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	 	 	 	however not including those costs associated with the initial testing of the
Equipment that is required for the final permit;
	 
	 	(d)	 	The sum of $833.00 per month for use of the existing employee building and the
existing maintenance building on the Landfill;
	 
	 	(e)	 	The cost of all thermal energy required to power the concentrator at the rate
of $2.20 per MMBtu; provided, however, such sum shall increase by two percent (2%) on
April 1 of each calendar year during the Term;
	 
	 	(f)	 	A sum equal to all costs (calculated based on the actual cost to Waste Systems
for such costs without any mark-up) of all utilities used in the operation, maintenance
and repair of the Equipment and operation of the waste water treatment systems at the
Landfill, except any costs covered by applicable warranty(ies); and
	 
	 	(g)	 	Any and all sales, use or similar taxes, if any, payable in connection with the
payments from Waste Systems to Converted Organics under this Section 3.

Waste Systems shall provide Converted Organics with reasonable documentation supporting all
deductions under paragraphs (c), (e) or (f) above from payments otherwise payable to Converted
Organics under the provisions of this Section 3.

Converted Organics shall be entitled to all applicable carbon credits and waste heat credits that
may be generated from the operation of the Equipment.

4. Title. Waste Systems and Converted Organics agree that title to the Equipment will pass
to Converted Organics immediately following full payment by Converted Organics to Waste Systems of
the entire purchase price set forth in Section 2 above, together with any applicable sales, use or
similar tax. If Converted Organics fails to pay the entire purchase price to Waste Systems,
together with any applicable sales, use or similar tax, title to the Equipment shall remain in
Waste Systems, Converted Organics shall forfeit any installments of the purchase price previously
paid by Converted Organics to Waste Systems, and Waste Systems shall have the right to terminate
this Agreement by written notice to Converted Organics. Waste Systems covenants and agrees that
all payments of the purchase price from Converted Organics shall be used to pay down the debt
currently encumbering the Equipment. Converted Organics shall have the right to file in the
appropriate UCC records, and/or record in the appropriate real property records relating to the
Landfill, UCC or other statements evidencing and giving notice of such contract to purchase and,
when the entire purchase price has been paid, ownership in Converted Organics. Waste Systems
agrees to reasonably cooperate with Converted Organics in making any such filings, including the
execution of any appropriate UCC or other statements.

5. Operation by Waste Systems. During the Term of this Agreement, Waste Systems shall
operate the Equipment on the Landfill on behalf of Converted Organics in a manner intended to

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reasonably maximize payments from Enterprise for waste water services under the South Canyon
Contract. Subject to reimbursement for the cost thereof as provided in Section 3 above, Waste
Systems shall use, service and maintain the Equipment in good condition and state of repair, in
accordance with the instructions and recommendations contained in the Operating Manual for the
Equipment and in compliance with all applicable laws and permits. Waste Systems shall at all times
keep the Equipment free from all liens, security interests and other encumbrances created by or
imposed on Waste Systems or its property. Converted Organics and its officers, employees, agents
and guests shall have the right, at any reasonable time during normal working hours and subject to
the prior approval of Waste Systems, to enter upon the Landfill to examine the Equipment.

6. Term and Termination. The term of this Agreement (“Term”) shall begin on the date set
forth in the first paragraph of this Agreement, and shall continue until the expiration or earlier
termination of the South Canyon Contract, as such South Canyon Contract may be renewed pursuant to
one or more of the four (4) 5-year renewal periods thereunder. Upon the expiration or earlier
termination of this Agreement, Converted Organics shall, at its sole cost and expense, promptly
disassemble and remove the Equipment from the Landfill and leave the area upon which the Equipment
was installed in a neat and orderly condition, substantially similar as to that which such area was
in prior to installations of the Equipment.

     Any and all obligations of either party which have accrued prior to the expiration or earlier
termination of this Agreement (including all indemnity obligations), shall survive such expiration
or earlier termination.

7. Risk of Loss; Insurance. Until such time as title to the Equipment is transferred to
Converted Organics, Waste Systems shall maintain with respect to the Equipment “special form”
property/casualty insurance in an amount equal to the full replacement cost of the Equipment
insuring against damage to or destruction of the Equipment from those causes of loss normally
insured by a standard policy of “special form” insurance. During the period that Waste Systems is
required to insure the Equipment, Converted Organics shall have no liability with respect to, and
Waste Systems hereby releases Converted Organics from any liability with respect to, any damage to
or destruction of the Equipment arising from causes of loss insurable by such “special form”
insurance; provided, however, Converted Organics shall be liable to Waste Systems for any and all
damage to or destruction of the Equipment arising from acts or omissions of Converted Organics, its
agents and employees which are not insurable by “special form” insurance. Waste Systems shall
cause its policies of “special form” or other property/casualty insurance with respect to the
Equipment to contain a provision or endorsement waiving the insurer’s rights of subrogation against
Converted Organics and its agents and employees.

     From and after the date that title to the Equipment is transferred to Converted Organics,
Converted Organics shall maintain with respect to the Equipment “special form” property/casualty
insurance in an amount equal to the full replacement cost of the Equipment insuring against damage
to or destruction of the Equipment from those causes of loss normally

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insured by a standard policy of “special form” insurance. During the period that Converted
Organics is required to insure the Equipment, Waste Systems shall have no liability with respect
to, and Converted Organics hereby releases Waste Systems from any liability with respect to, any
damage to or destruction of the Equipment arising from causes of loss insurable by such “special
form” insurance; provided, however, Waste Systems shall be liable to Converted Organics for any and
all damage to or destruction of the Equipment arising from the gross negligence or intentionally
destructive acts of Waste Systems, its agents and employees which are not insurable by “special
form” insurance. Converted Organics shall cause its policies of “special form” or other
property/casualty insurance with respect to the Equipment to contain a provision or endorsement
waiving the insurer’s rights of subrogation against Waste Systems and its agents and employees.

     Following the transfer of title to the Equipment from Waste Systems to Converted Organics,
Converted Organics agrees that while the Equipment is present on the Landfill or Converted
Organics’ agents or employees are performing work in connection with the Equipment or otherwise
present on the Landfill, Converted Organics shall maintain in full force and effect a policy(ies)
of commercial general liability insurance, including contractual liability coverage, with a minimum
combined single limit of Three Million Dollars ($3,000,000) with respect to Converted Organics’
activities upon the Landfill (such coverage to be afforded utilizing one or more commercial general
liability and/or umbrella liability policies). Similarly, at all times while this Agreement is in
effect, Waste Systems shall maintain in full force and effect a policy(ies) of commercial general
liability insurance, including contractual liability coverage, with minimum limits as prescribed by
the South Canyon Contract with respect to the Landfill (such coverage to be afforded utilizing one
or more commercial general liability and/or umbrella liability policies). All such policies of
commercial general liability insurance carried by Converted Organics shall name Waste Systems and
the Enterprise/City of Glenwood Springs as additional insureds and shall: (i) be issued by
financially responsible insurance companies having at least an A/VIII rating with Best Insurance
Reports and licensed and authorized to do business in the State of Colorado; (ii) provide that such
policies shall not be subject to cancellation or reduction in coverage except after at least twenty
(20) days (ten (10) days in the event of cancellation due to nonpayment of premium) prior written
notice to Waste Systems and the Enterprise/City of Glenwood Springs; and (iii) shall be primary,
and any insurance carried by Waste Systems or the Enterprise/City of Glenwood Springs shall be
noncontributing.

All insurance required to be carried by Converted Organics and Waste Systems hereunder may be
carried under blanket policies covering the Equipment, Landfill and other locations, provided that
the coverage afforded by reason of the use of such blanket policy(ies) shall not be reduced or
diminished from the requirements for such insurance set forth in this Section 7. The parties shall
each, within five (5) days after request by the other party, provide such party with reasonable
evidence that the policies of insurance required to be maintained under this Section 7 are
currently in place.

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     6. Default. Upon a default or breach of any term or provision of this Agreement by
either party which is not cured within ten (10) days after the defaulting party’s receipt of
written notice of default or breach from the non-defaulting party (or if such default or breach is
of such a nature that it cannot reasonably be cured within such 10-day period, then if the
defaulting party fails to commence to cure such default or breach within such 10-day period or
fails to thereafter cure such default or breach within thirty (30) days after the defaulting
party’s receipt of written notice of default or breach from the non-defaulting party), the
non-defaulting party shall have all rights and remedies provided for in this Agreement and/or at
law or in equity. All such remedies shall be cumulative.

     7. Miscellaneous.

	 	(a)	 	This Agreement, and the respective rights and obligations of the parties
hereunder, shall be construed under and be governed by the laws of the State of
Colorado without regard to principles of conflict of laws. Any action, claim or
proceeding brought by any party hereunder shall be commenced exclusively in any state
or federal court located in Denver or Denver County, Colorado, and the parties hereto
each hereby irrevocably and unconditionally consent to the exclusive jurisdiction and
venue of such courts in any action, claim or proceeding brought under this Agreement.
	 
	 	(b)	 	This Agreement shall be binding upon and shall inure to the benefit of the
successors and assigns of the parties hereto; provided, however, Converted Organics
shall not have the right to assign this Agreement to any other person or entity without
the prior written consent of Waste Systems, which consent shall not be unreasonably
withheld, conditioned or delayed.
	 
	 	(c)	 	This Agreement, including the Attachments hereto, which are incorporated herein
by reference, sets forth the entire agreement and understanding of the parties hereto
with respect to the subject matter of this Agreement and supersedes all prior
agreements, if any, written or oral.
	 
	 	(d)	 	Should this Agreement become the subject of litigation between Waste Systems
and Converted Organics, the prevailing party shall be entitled to recovery of all
actual costs in connection therewith, including but not limited to, attorneys’ fees and
expert witness fees.
	 
	 	(e)	 	This Agreement may be executed in counterparts, including any facsimile copies,
each of which shall be deemed an original and all of which together shall constitute
one and the same instrument.
	 
	 	(f)	 	All notices hereunder shall be valid when given if personally delivered or two
(2) days after deposit in the United States mail, postage prepaid, certified mail,
return

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	 	 	 	receipt requested and addressed as follows or to such new or additional address(es)
as either party may from time to time designate in writing to the other:

	 	 	 

	If to Waste Systems:

	 	South Canyon Waste Systems, LLC
	 

	 	9870 Big Bend Blvd.
	 

	 	P.O. Box 221090
	 

	 	Kirkwood MO 63122
	 

	 	Attention: Manager
	 
	 	 
	If to Converted Organics:

	 	Converted Organics Inc.
	 

	 	137A Lewis Wharf
	 

	 	Boston, MA 02110
	 

	 	ATTN: Edward J. Gildea

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

	 	 	 	 	 	 	 	 	 	 	 

	“Waste Systems”	 	 	 	“Converted Organics”
	 
	 	 	 	 	 	 	 	 	 	 
	SOUTH CANYON WASTE SYSTEMS, LLC	 	CONVERTED ORGANICS INC.
	 
	 	 	 	 	 	 	 	 	 	 
	By:	 	/s/ Larry Giroux	 	By:	 	/s/ Edward J. Gildea
	 

	 	 
	 	 	 	 	 	 	 	 
	 

	 	Print Name:
	 	Larry Giroux
	 	 	 	Print Name:
	 	Edward J. Gildea
	 

	 	 	 	 	 	 	 	 	 	 
	 

	 	Title:
	 	 	 	 	 	Title:
	 	President and CEO
	 

	 	 	 	 	 	 	 	 	 	 

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Attachment A — Equipment

	 	 	 

	LM-HTTM Concentrator Model 12K-WB

	 	SN # 10851-002
	Flex Fuel Wood Burner and Control System
	 	 
	Heavy Duty Vibrating Conveyor

	 	SN # 21167
	Rotophase
	 	 

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Attachment B — Permits

9exv10w3

Exhibit 10.3

AMENDMENT NO. 2

TO

THIRD AMENDED AND RESTATED LIMITED LIABILITY COMPANY AGREEMENT

THIS AMENDMENT NO. 2 (this “Amendment”) to the Third Amended and Restated Limited
Liability Company Agreement of DiscoverReady LLC, dated as of November 2, 2009 (the
“Agreement”), by and among (i) DiscoverReady LLC, a Delaware limited liability company (the
“Company”), (ii) The Dolan Company, a Delaware corporation (formerly Dolan Media Company)
(“Dolan”), (iii) DR Holdco LLC, a Delaware limited liability company (the “Minority
Member”), and (iv) for certain limited purposes set forth therein, the members of the Minority
Member, is made and entered into to be effective for all purposes as of May 11, 2011, among each of
the Company, Dolan and the Minority Member.

RECITAL

The Company, Dolan and the Minority Member now desire to amend the Agreement as set forth
below.

In consideration of the mutual promises, covenants and agreements contained herein, the
sufficiency of which is hereby agreed to and acknowledged, the parties hereto agree to amend the
Agreement as follows:

AGREEMENTS

	1.	 	Amendments.

1.1 Deleted Definitions. The definitions of “Exiting Minority Member “Forced Sale
Purchase Price”, “Mays Employment Term”, “Parkhill Securities”, “Put Closing”, “Put Closing Date”,
“Put Delivery Date”, “Put Equity Value Per Common Unit”, “Put Notice”, “Put Purchase Price”, “Put
Purchase Price Calculation” and “Put Purchase Price Objection Notice” are hereby deleted from
Article I of the Agreement in their entirety.

1.2 New Definitions. The following definitions are hereby added to Article I of the
Agreement in their applicable alphabetical order:

“Appraiser of Original Common Units” is defined in Section 7.7(f).

“Appraiser of Undiscounted Common Units” is defined in Section 7.7(g).

“First Undiscounted Put Closing” is defined in Section 7.7(d).

“First Undiscounted Put Closing Date” is defined in Section 7.7(d).

“First Undiscounted Put Delivery Date” is defined in Section 7.7(a).

“First Undiscounted Put Notice” is defined in Section 7.7(a).

“Second Undiscounted Put Closing” is defined in Section 7.7(d).

“Second Undiscounted Put Closing Date” is defined in Section 7.7(d).

 

 

 

“Second Undiscounted Put Delivery Date” is defined in Section 7.7(c).

“Second Undiscounted Put Notice” is defined in Section 7.7(c)

“Original Put Closing” is defined in Section 7.7(e).

“Original Put Equity Value Per Common Unit” means, as of a specified date, an amount equal to
(a) 0.95 multiplied by (b) the Equity Value Per Common Unit.

“Original Put Notice” is defined in Section 7.7(e).

“Original Put Purchase Price” means an amont equal to the product of (i) the Discounted Put
Equity Value Per Common Unit, multiplied by (ii) the number of Common Units represented by the
Discounted Put Securities (determined on a Common Equivalent Basis.)

“Original Put Purchase Price Calculation” is defined in Section 7.7(g).

“Original Put Purchase Price Objection Notice” is defined in Section 7.7(g).

“Original Put Securities” is defined in Section 7.7(e).

“Remaining Undiscounted Common Units” means an amount equal to 92,877 minus the number of
Common Units purchased under the First Undiscounted Put Closing.

“Undiscounted Put Closing” is defined in Section 7.7(d).

“Undiscounted Put Notice” is defined in Section 7.7(c).

“Undiscounted Put Purchase Price” means an amount equal to the product of (i) the Undiscounted
Put Equity Value Per Common Unit, multiplied by (ii) the number of Common Units respresented by the
Undiscounted Put Securities.

“Undiscounted Put Purchase Price Calculation” is defined in Section 7.7(f).

“Undiscounted Put Purchase Price Objection Notice” is defined in Section 7.7(e).

“Undiscounted Put Securities” is defined in Section 7.7(d).

“Undiscounted Put Equity Value Per Common Unit” means, as of a specified date, an amount equal
to (a) 1.0 multiplied by (b) the Equity Value Per Common Unit.

1.3 Amended and Restated Definitions. The following definitions in Article I of the
Agreement are hereby amended, restated and replaced with the following:

“Call Equity Value Per Common Unit” means, as of a specified date, an amount equal to (a) 1.0
multiplied by (b) the Equity Value Per Common Unit.

 

 

 

1.4 Section 7.7. Section 7.7 of the Agreement is hereby deleted in its entirety and
replaced with the following:

7.7 Put Right.

(a) Notwithstanding anything to the contrary in Section 7.5, during the period
commencing on November 2, 2012 and ending on February 2, 2013, the Minority Member will have
the right to require the Company to purchase 46,497 (or such lesser amount as may be agreed
upon by the Minority Member and the Company) of the Common Units held by the Minority Member
for an aggregate purchase price equal to the Undiscounted Put Purchase Price by delivering
written notice of the exercise of such right to the Manager (the “First Undiscounted Put
Notice”). The date on which the Manager receives the First Undiscounted Put Notice
hereinafter is referred to as the “First Undiscounted Put Delivery Date”. The Company and
the Minority Member each acknowledge and agree that, for purposes of calculating the
Undiscounted Put Purchase Price applicable to the First Undiscounted Put Closing (as defined
below), the specified date with respect to the Put Equity Value Per Common Unit shall be the
last day of the calendar month ending immediately prior to the First Put Closing Date (as
defined below).

(b) Notwithstanding anything to the contrary in Section 7.5, during the period
commencing on November 2, 2012 and ending on February 2, 2013, the Minority Member will have
the right to require the Company to purchase 7,446 (or such lesser amount as may be agreed
upon by the Minority Member and the Company) of the Common Units held by the Minority Member
for an aggregate purchase price equal to the Original Put Purchase Price by delivering
written notice of the exercise of such right to the Manager (the “Original Put Notice”).
The date on which the Manager receives the Original Put Notice hereinafter is referred to as
the “Original Put Delivery Date”. The Company and the Minority Member each acknowledge and
agree that, for purposes of calculating the Original Put Purchase Price applicable to the
Original Put Closing (as defined below), the specified date with respect to the Original Put
Equity Value Per Common Unit shall be the last day of the calendar month ending immediately
prior to the Original Put Closing Date (as defined below).

(c) Notwithstanding anything to the contrary in Section 7.5, during the period
commencing on November 2, 2013 and ending on February 2, 2014, the Minority Member will have
the right to require the Company to purchase all of the Remaining Undiscounted Common Units
(or such lesser amount as may be agreed upon by the Minority Member and the Company) held
by the Minority Member for an aggregate purchase price equal to the Undiscounted Put
Purchase Price by delivering written notice of the exercise of such right to the Manager
(the “Second Undiscounted Put Notice,” and together with the First Undiscounted Put Notice,
each an “Undiscounted Put Notice”). The date on which the Manager receives the Second
Undiscounted Put Notice hereinafter is referred to as the “Second Undiscounted Put Delivery
Date”. The Company and the Minority Member each acknowledge and agree that, for purposes of
calculating the Undiscounted Put Purchase Price applicable to the Second Undiscounted Put
Closing (as defined below), the specified date with respect to the Undiscounted Put Equity
Value Per Common Unit shall be the last day of the calendar month ending immediately prior
to the Second Undiscounted Put Closing Date (as defined below).

 

 

 

(d) The Company shall be obligated to purchase all of the Minority Member’s Common
Units to be purchased pursuant to Section 7.7(a) or Section 7.7(c) hereof
(in either such case, the “Undiscounted Put Securities”), at a closing (such closing with
respect to the First Undiscounted Put Notice, the “First Undiscounted Put Closing,” and such
closing with respect to the Second Undiscounted Put Notice, the “Second Undiscounted Put
Closing,” and
together with the First Undiscounted Put Closing, each an “Undiscounted Put Closing”) on
such date as mutually agreed to by the Manager and the Minority Member, which date shall not
be prior to the later of (i) with respect to the First Undiscounted Put Closing, (1) sixty
(60) days after the First Undiscounted Put Delivery Date or (2) ten (10) days after the
final determination of the Undiscounted Put Purchase Price applicable to the First
Undiscounted Put Closing pursuant to Section 7.7(d) (such date of closing, the
“First Undiscounted Put Closing Date”), or (ii) with respect to the Second Undiscounted Put
Closing, (1) sixty (60) days after the Second Undiscounted Put Delivery Date or (2) ten (10)
days after the final determination of the Undiscounted Put Purchase Price applicable to the
Second Undiscounted Put Closing pursuant to Section 7.7(d) (such date of closing,
the “Second Undiscounted Put Closing Date”). At the applicable Undiscounted Put Closing, (i)
the Minority Member shall (A) endorse and deliver to the Manager any certificates (but only
if certificates representing Common Units have been issued) representing the Undiscounted
Put Securities held by the Minority Member to be purchased by the Company at such
Undiscounted Put Closing, (B) execute and deliver any other instruments requested by the
Manager to evidence the purchase of the Undiscounted Put Securities by the Company at such
Undiscounted Put Closing, and (C) execute and deliver to the Manager a Transfer Agreement,
and (ii) (A) the Company shall pay to the Minority Member all or such portion of the
applicable Undiscounted Put Purchase Price by wire transfer of immediately available funds
that the Company is permitted to pay at such time pursuant to the terms and conditions of
the Senior Credit Agreement and (B) to the extent that any portion of such Undiscounted Put
Purchase Price is not paid in cash at such Undiscounted Put Closing, then the Company shall
issue and deliver to the Minority Member a Put Note in an aggregate principal amount equal
to the unpaid portion of the Undiscounted Put Purchase Price to be paid at such Put Closing.

(e) The Company shall be obligated to purchase all of the Minority Member’s Common
Units to be purchased pursuant to Section 7.7(b) hereof (in either such case, the
“Original Put Securities”), at a closing (the “Original Put Closing,”) on such date as
mutually agreed to by the Manager and the Minority Member, which date shall not be prior to
the later of (1) sixty (60) days after the Original Put Delivery Date or (2) ten (10) days
after the final determination of the Original Put Purchase Price applicable to the Original
Put Closing pursuant to Section 7.7(g) (such date of closing, the “Original Put
Closing Date”.) At the Original Put Closing, (i) the Minority Member shall (A) endorse and
deliver to the Manager any certificates (but only if certificates representing Common Units
have been issued) representing the Put Securities held by the Minority Member to be
purchased by the Company at such Original Put Closing, (B) execute and deliver any other
instruments requested by the Manager to evidence the purchase of the Original Put Securities
by the Company at such Original Put Closing, and (C) execute and deliver to the Manager a
Transfer Agreement, and (ii) (A) the Company shall pay to the Minority Member all or such
portion of the applicable Original Put Purchase Price by wire transfer of immediately
available funds that the Company is permitted to pay at such time pursuant to the terms and
conditions of the Senior Credit Agreement and (B) to the extent that any portion of such
Undiscounted Put Purchase Price is not paid in cash at such Original Put Closing, then the
Company shall issue and deliver to the Minority Member a Put Note in an aggregate principal
amount equal to the unpaid portion of the Original Put Purchase Price to be paid at such Put
Closing.

 

 

 

(f) Appraisal of the Undiscounted Common Units. Within ten (10) days after
either the First Undiscounted Put Notice or the Second Undiscounted Put Notice shall have
been received by the Manager, the Manager shall deliver to the Minority Member its good
faith determination of the Undiscounted Put Purchase Price applicable to such Undiscounted
Put Closing (each an “Undiscounted Put Purchase Price Calculation”). The Minority Member
shall have ten (10) days from the date of receipt of such Undiscounted Put Purchase Price
Calculation to deliver to the Manager a notice of objection (each an “Undiscounted Put
Purchase Price Objection Notice”) with respect to the applicable Undiscounted Put Purchase
Price Calculation. If no Undiscounted Put Purchase Price Objection Notice is delivered by
the Minority Member to the Manager before the expiration of such ten (10) day period, then
the Undiscounted Put Purchase Price Calculation shall be final and binding on the Minority
Member for the applicable Undiscounted Put Closing. If an Undiscounted Put Purchase Price
Objection Notice is delivered in accordance with this Section 7.7(f), the Manager
and the Minority Member shall consult with each other with respect to the objection set
forth therein. If the Manager and the Minority Member are unable to reach agreement within
ten (10) days after such an Undiscounted Put Purchase Price Objection Notice has been
given, then the Manager shall, within fifteen (15) days thereafter, select in good faith an
independent investment bank or independent appraiser (such Person, the “Appraiser of the
Undiscounted Common Units”) to make an independent determination of the applicable
Undiscounted Put Purchase Price. The Appraiser of the Undiscounted Common Units shall
determine the applicable Undiscounted Put Purchase Price within thirty (30) days of
selection. The determination of the applicable Undiscounted Put Purchase Price by the
Appraiser of the Undiscounted Common Units shall be final and binding on the Company and the
Minority Member for purposes of the applicable Undiscounted Put Closing. The Company, on
the one hand, and the Minority Member, on the other hand, shall share equally the costs of
engagement of an Appraiser of the Undiscounted Common Units for any determination of the
Undiscounted Put Purchase Price.

(g) Appraisal of Original Common Units. Within ten (10) days after Original
Put Notice shall have been received by the Manager, the Manager shall deliver to the
Minority Member its good faith determination of the Original Put Purchase Price (the
“Original Put Purchase Price Calculation”). The Minority Member shall have ten (10) days
from the date of receipt of such Original Put Purchase Price Calculation to deliver to the
Manager a notice of objection (the “Original Put Purchase Price Objection Notice”.) If no
Original Put Purchase Price Objection Notice is delivered by the Minority Member to the
Manager before the expiration of such ten (10) day period, then the Original Put Purchase
Price Calculation shall be final and binding on the Minority Member for the Original Put
Closing. If a Original Put Purchase Price Objection Notice is delivered in accordance with
this Section 7.7(g), the Manager and the Minority Member shall consult with each
other with respect to the objection set forth therein. If the Manager and the Minority
Member are unable to reach agreement within ten (10) days after such a Original Put Purchase
Price Objection Notice has been given, then the Manager shall, within fifteen (15) days
thereafter, select in good faith an independent investment bank or independent appraiser
(such Person, the “Appraiser of Original Common Units”) to make an independent determination
of the applicable Original Put Purchase Price. The Appraiser of Original Common Units shall
determine the applicable Original Put Purchase Price within thirty (30) days of selection.
The determination of the applicable Original Put Purchase Price by the Appraiser of Original
Common Units shall be final and binding on the Company and the Minority Member for purposes
of the applicable Original Put Closing. The Company, on the one hand, and the Minority
Member, on the other hand, shall share equally the costs of engagement of an Appraiser of
Original Common Units for any determination of the Original Put Purchase Price.

(h) In addition to the rights set forth above, in the event that a Guarantor (as
defined in the Membership Interests Purchase Agreement) ceases to be an employee of the
Company on account of (i) the Company terminating such Guarantor’s employment with the
Company without Cause (as such term is defined in such Guarantor’s Employment Agreement) or
(ii) such Guarantor terminating his employment with the Company for Good Reason (as such
term is defined in such Guarantor’s Employment Agreement), then the Minority Member shall
have the right to require the Company to purchase the Proportionate Amount as such term
applies to such Guarantor (or such lesser amount as may be agreed to by such Guarantor, the
Manager and the Minority Member) of the Minority Member’s Common Units for an aggregate
purchase price equal to the Put Purchase Price pursuant to the procedures set forth in this
Section 7.7.

 

 

 

1.5 Section 7.8(a). The first sentence of Section 7.8(a) of the Agreement is hereby
deleted in its entirety and replaced with the following:

Notwithstanding anything to the contrary in Section 7.5, at any time during the
period commencing on November 2, 2013, and ending on February 2, 2014, Dolan will have the
continuing right to purchase all or any portion of the Minority Member’s Common Units (any
such Member, a “Selling Minority Member”) for an aggregate purchase price equal to the Call
Purchase Price by delivering written notice of the exercise of such right to such Selling
Minority Member (the “Call Notice”).

1.5 Exhibit A. Exhibit A attached to the Agreement is hereby amended and replaced in
its entirety with Exhibit A attached to this Amendment.

2. Reference to and Effect on the Agreement.

2.1 Each reference in the Agreement to “this Agreement”, “hereunder”, “hereof”, “herein”, or
words of like import shall mean and be a reference to the Agreement as amended hereby.

2.2 Except as specifically amended above, the Agreement shall remain in full force and effect
and is hereby ratified and confirmed.

3. Miscellaneous.

3.1 This Amendment may be executed in separate counterparts, each of which when so executed
and delivered shall be deemed to be an original and all of which taken together shall constitute
one and the same instrument. This Amendment will become effective after (i) a counterpart to this
Amendment has been executed and delivered by the Company, Dolan and the Minority Member, (ii) a
counterpart to the Transfer Agreement, dated as of the date of this Amendment, by and between the
Minority Member and Dolan has been executed and delivered by each of DR Holdco and Dolan, (iii) a
counterpart to the First Amendment to Employment Agreement, dated as of the date of this Amendment,
by and between the Company and Steven R. Harber (“Harber”), has been executed and delivered
by the Company and Harber, and (iv) a counterpart to the First Amendment to Employment Agreement,
dated as of the date of this Amendment, by and between the Company and James K. Wagner
(“Wagner”), has been executed and delivered by the Company and Wagner. This Amendment, and
any amendments hereto, to the extent signed and delivered by means of a facsimile machine or other
electronic transmission (including transmission in portable document format by electronic mail),
shall be treated in all manners and respects and for all purposes as an original agreement and
shall be considered to have the same binding legal effect as if it were the original signed version
thereof delivered in person.

3.2 Section headings in this Amendment are included herein for convenience of reference only
and shall not constitute a part of this Amendment for any other purpose.

3.3 The language used in this Amendment will be deemed to be the language chosen by the
parties to express their mutual intent, and no rules of strict construction will be applied against
any party.

 

 

 

3.4 If and to the extent there are any inconsistencies between the Agreement and this
Amendment, the terms of this Amendment shall control.

3.5 This Amendment shall be governed by and construed in accordance with the laws of the State
of Delaware without regard to its conflict of laws doctrines.

IN WITNESS WHEREOF, the parties hereto have executed this Amendment No. 2 as of the date first
written above.

	 	 	 	 	 
	 	COMPANY:

DISCOVERREADY LLC

 	 
	 	By:  	/s/ Scott J. Pollei
 	 
	 	 	Name:  	Scott J. Pollei 	 
	 	 	Title:  	Vice President 	 
	 	

MEMBERS:

THE DOLAN COMPANY

 	 
	 	By:  	/s/ Scott J. Pollei
 	 
	 	 	Name:  	Scott J. Pollei 	 
	 	 	Title:  	Executive Vice President 	 
	 	

DR HOLDCO LLC

 	 
	 	By:  	/s/ James K. Wagner, Jr.
 	 
	 	 	Name:  	James K. Wagner, Jr. 	 
	 	 	Title:  	CEO and Manager 	 

 

 

 

	 	 	 	 	 

EXHIBIT A

List of Members, Capital Contributions,

Common Units and Participating Percentages

	 	 	 	 	 	 	 	 	 
	Name, Address, Phone	 	 	 	 	 	 
	and Fax of Member	 	Common Units	 	 	Participating Percentage	 
	 
	 	 	 	 	 	 	 	 
	The Dolan Company

222 South Ninth Street, Suite 2300

Minneapolis, Minnesota 55402

Attention: James P. Dolan

Phone: (612) 317-9425

Fax:     (612) 317-9434

	 	 	899,556	 	 	 	90	%
	 
	 	 	 	 	 	 	 	 
	DR Holdco, LLC

55 Broadway, 6th Floor

New York, New York 10006

Attention: James K. Wagner

         
       Steven R. Harber

Phone: (212) 699-3965

Fax:     (212) 699-3970

	 	 	100,444	 	 	 	10	%
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	TOTAL

	 	 	1,000,000	 	 	 	100.0	%

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