Document:

Waiver of Redemption Rights dated August 25, 2005

 Exhibit 10.4 
  

			
	 August 25, 2004
	 	 
		
	 J. Anthony Clarkson
	 	 Dennis N. Cavender

	 Vice President and Market Manager
	 	 Chief Financial Officer

	 Silicon Valley Bank
	 	 Essential Group, Inc.

	 230 West Monroe, Suite 720
	 	 1325 Tri-State Parkway, Suite 300

	 Chicago, IL 60606
	 	 Gurnee, IL 60031

  

	 	RE:	Asset Based Line of Credit between Essential Group, Inc. and Silicon Valley Bank 

  
 Dear Mr. Clarkson: 
  
 We have been advised that Silicon Valley Bank (“SVB”) is providing an asset based line of credit with a maximum credit limit of $6,000,000 (the “Loan
Facility”) to Essential Group, Inc. (the “Company”) pursuant to a Loan and Security Agreement (together with any related documents or any other borrowing facility in place at SVB, the “Loan Documents”). 
  
 In order to induce SVB to provide the Loan Facility to the Company and to enter into the Loan
Documents, each of the undersigned hereby agrees, that during the term of the Loan Facility and at any time any amount is outstanding under the Loan Facility or owed to SVB by the Company under any of the Loan Documents, and for a period of 30 days
thereafter, the undersigned shall not vote any shares of Series A-2, A-3, A-4, A-5 or A-6 Preferred Stock of the Company, beneficially owned or controlled by them, directly or indirectly, now or hereafter (the “Shares”), to require the
Company to redeem any shares of the Company’s preferred stock pursuant to the Company’s Amended and Restated Certificate of Incorporation and the Certificates of Designation, Preferences and Rights of the Company’s preferred stock or
otherwise conduct or cause any action which may result in such redemption. Each of the undersigned further agrees that if it sells, assigns or transfers its Shares, prior thereto it shall legend its Shares with evidence of the restrictions created
by this letter agreement and, as a condition to such sale, assignment or transfer, the undersigned shall require the purchaser, assignee or transferee to unconditionally agree in writing to be bound by the terms hereof. 
  

							
	 Galen Partners III, L.P.
 By: Claudius L.L.C.
	 	 Tullis-Dickerson Capital Focus II, L.P.
 By: Tullis Dickerson Partners II, L.L.C.

				
	 By:
	 	 /S/ Bruce F. Wesson

	 	 By:
	 	 /S/ Joan P. Neuscheler

	 Name:
	 	 Bruce F. Wesson
	 	 Name:
	 	 Joan P. Neuscheler

	 Title:
	 	 Senior Managing Member
	 	 Title:
	 	 Principal

		
	 Galen Partners International III, L.P.
	 	 TD Javelin Capital Fund, L.P.

	 By: Claudius L.L.C.
	 	 By: JVP, L.P.
 By: JVP, Inc.

	 	 	 	 
				
	 By:
	 	 /S/ Bruce F. Wesson

	 	 By:
	 	 /S/ Joan P. Neuscheler

	 Name:
	 	 Bruce F. Wesson
	 	 Name:
	 	 Joan P. Neuscheler

	 Title:
	 	 Senior Managing Member
	 	 Title:
	 	 President

		
	 Galen Employee Fund III, L.P.
 By: Wesson Enterprises, Inc.
	 	 TD Origen Capital Fund, L.P.
 By: TD II Regional Partners, Inc.

				
	 By:
	 	 /S/ Bruce F. Wesson

	 	 By:
	 	 /S/ Joan P. Neuscheler

	 Name:
	 	 Bruce F. Wesson
	 	 Name:
	 	 Joan P. Neuscheler

	 Title:
	 	 President
	 	 Title:
	 	 PresidentEighth Amendment to Interactive Television System Agreement

 Exhibit 10.1 
  
 THE MARKED PORTIONS OF THIS AMENDMENT HAVE BEEN OMITTED 
 AND FILED SEPARATELY WITH THE COMMISSION PURSUANT TO 
 A REQUEST FOR CONFIDENTIAL
TREATMENT 
  
 August 24, 2004 
  
 VIA ELECTRONIC MAIL/FIRST CLASS MAIL 
  
 Mr. Myles Cyr 
 Carnival Corporation 
 3655 NW 87th Avenue 
 Miami, FL 33178 
  
 Re: Eighth Amendment to Interactive Television System Agreement dated February 20, 2001, by and between Allin Interactive Corporation and
Carnival Cruise Lines (hereinafter “Eighth Amendment”) 
  
 Dear Myles:

  
 This letter is to amend the Interactive Television System Agreement
(“the Agreement”) dated February 20, 2001, by and between Allin Interactive Corporation (“Allin”) and Carnival Cruise Lines (“CCL”). Capitalized terms shall have the meaning as set forth in Section 1 of that Agreement.

  
 Whereas, Schedule 1.9 of the Agreement set forth an Installation Schedule for
the Agreement; and 
  
 Whereas, Schedule 1.11 of the Agreement sets forth Purchase
Prices and Payment Schedules under the Agreement, and 
  
 Whereas, the parties
desire to amend Schedules 1.9 and 1.11; 
  
 Now, therefore, Schedule 1.9 -
Installation Schedule is amended as follows: 
  
 Add the Carnival Liberty. Date
Installed of 07/01/2005 and Date Operational of 08/01/2005. Newbuild. 
  
 Now,
therefore, the Schedule 1.11 of the Agreement is amended as follows: 
  

	 	A.	Add: Carnival Liberty. Class – Conquest. Cabins – 1,487. Price —$[REDACTED – CONFIDENTIAL TREATMENT REQUESTED]. 

  
 The Payment Schedule shall remain in accordance with the terms of Schedule 1.11 of the
Agreement. 
  
 In witness whereof, this Amendment has been duly executed by the
parties hereto as of the date first above written. 
  
 Allin Interactive
Corporation 
  

			
	By:	 	 /s/ Richard W. Talarico

	Its:	 	Chairman & CEO
	
	Carnival Cruise Lines, a division of Carnival Corporation
		
	By:	 	 /s/ Myles Cyr

	Its:	 	VP – CIOFourth Amendment and Waiver to Loan and Security Agreement

 Exhibit 10.11 
  
 [7/11/04] 
  
 FOURTH AMENDMENT AND WAIVER TO LOAN AND SECURITY AGREEMENT 
 BY AND BETWEEN 
 CONGRESS FINANCIAL CORPORATION (FLORIDA) 
 AND 
 DRUGMAX, INC., TOGETHER WITH ITS
SUBSIDIARIES, 
 VALLEY DRUG COMPANY, VALLEY DRUG COMPANY SOUTH, 
 AND DISCOUNT Rx, INC. 
  
 THIS
FOURTH AMENDMENT AND WAIVER TO LOAN AND SECURITY AGREEMENT (this “Amendment”) is entered into effective as of August 5, 2004 (the “Effective Date”), by and among DRUGMAX, INC., a Nevada corporation (“Borrower”),
(together with its subsidiaries, VALLEY DRUG COMPANY, an Ohio corporation, VALLEY DRUG COMPANY SOUTH, a Louisiana corporation, and DISCOUNT Rx, Inc., a Louisiana corporation, also the “Borrower”), and CONGRESS FINANCIAL CORPORATION
(FLORIDA), a Florida corporation (“Lender”). 
  
 W
I T N E S S E T H: 
  
 WHEREAS, Borrower and Lender heretofore entered into the Loan and Security Agreement, dated effective April 15, 2003, as amended by Amendment No. 1 to Loan and Security Agreement, dated as of August 19, 2003,
Amendment No. 2 to Loan and Security Agreement, dated as of March 31, 2004 and Amendment No. 3 to Loan and Security Agreement, dated as of June 30, 2004 (as the same now exists and may hereafter be further amended, modified, supplemented, extended,
renewed, restated or replaced, the “Loan Agreement”) pursuant to which Lender agreed to make loans and provide other financial accommodations to Borrower; and 
  
 WHEREAS, Borrower has requested certain amendments to the Loan Agreement, including with respect to the EBITDA and Tangible
Net Worth covenants, and a waiver of certain defaults in respect of such covenants, and Lender is willing to agree to such amendments and waivers, subject to the terms and conditions set forth herein. 
  
 NOW, THEREFORE, for and in consideration of the above premises, the mutual
covenants and agreements contained herein and other good and valuable consideration, the receipt whereof is hereby acknowledged, Borrower and Lender agree as follows: 
  
 1. Definitions. All capitalized terms contained herein shall have the meanings assigned to them in the Loan Agreement
unless the context herein otherwise dictates or unless different meanings are specifically assigned to such terms herein. 
  

 2. Amendments. The Loan Agreement is hereby amended as follows: 
  
 (a) Section 7.1. 
  
 (i) Section 7.1(a)(i) of the Loan Agreement is hereby
deleted in its entirety and the following substituted therefor: 
  
 “On a regular basis, as requested by Lender (A) a schedule of sales made, credits issued and cash received; (B) evidence of the delivery of products to customers of Borrower in connection with sales made and invoiced by Borrower for
amounts in excess of $25,000; and (C) a report of Eligible Inventory accompanied by such additional documentation with respect thereto as Lender may request.” 
  
 (b) Section 9.18. Section 9.18 of the Loan Agreement is hereby amended by deleting the last Test
Period and EBITDA amount set forth in the chart at the end thereof and substituting the following therefor: 
  

			
	 Test Period

	  	 EBITDA

	“April 1, 2005 through and including March 31, 2006 and each rolling 12-month period tested quarterly thereafter	  	2,000,000”

  
 (c)
Section 9.22. Section 9.22 of the Loan Agreement is hereby amended by deleting subsection (f) in its entirety and substituting the following therefor: 
  

“(f) all out of pocket expenses and costs heretofore and from time to time hereafter incurred by Lender during the course of periodic field
examinations of the Collateral and Borrower’s operations, plus a per diem charge at the then standard rate of Lender per person per day for Lender’s examiners in the field and office (which rate is currently $750);” 
  
 (d) Section 9.23. Section 9.23 of the Loan Agreement
is hereby deleted in its entirety and the following substituted therefor: 
  
 “9.23 “Minimum Excess Availability. Borrower shall maintain at all times Excess Availability in the amount of not less than $1,000,000. 
  

 2 

 3. Waiver of Events of Default. 
  
 (a) Subject to the satisfaction of each of the conditions precedent set forth in Section 7 hereof, Lender
hereby waives the following Events of Default (collectively, the “Existing Defaults”): 
  
 (i) any Event of Default under Section 10.1(a)(ii) of the Loan Agreement arising as a result of the failure of Borrower to comply with the
terms of Section 9.17 of the Loan Agreement as of June 30, 2004; and 
  
 (ii) any Event of Default under Section 10.1(a)(ii) of the Loan Agreement arising as a result of the failure of Borrower to comply with the terms of Section 9.18 of the Loan Agreement with respect to the three-month
period ended June 30, 2004. 
  
 (b) Lender has
not waived, is not by this Amendment waiving, and has no intention of waiving any Event of Default which may have occurred on or prior to the date hereof, whether or not continuing on the date hereof, or which may occur after the date hereof
(whether the same or similar to the Events of Default referred to in Section 3(a) above or otherwise), other than the Existing Defaults (subject to the terms and conditions set forth in Section 3(a) above). The foregoing waiver shall not be
construed as a bar to or a waiver of any other or further Event of Default on any future occasion, whether similar in kind or otherwise and shall not constitute a waiver, express or implied, of any of the rights and remedies of Lender arising under
the terms of the Loan Agreement or any other Financing Agreements on any future occasion or otherwise. 
  
 4. Testing of Financial Covenants. Lender agrees that it shall not test the compliance of Borrower with (a) the covenant set forth in Section 9.17
of the Loan Agreement with respect to Tangible Net Worth for the period from July 1, 2004 through and including September 29, 2004 and (b) the covenant set forth in Section 9.18 of the Loan Agreement with respect to EBITDA for the one-month period
ended July 31, 2004 and the two-month period ending August 31, 2004; provided, that, the negotiations with Familymeds, Inc. (“Familymeds”) with respect to the proposed merger of Borrower with Familymeds continue in accordance
with Agreement and Plan of Merger with Familymeds Group, Inc., dated March 19, 2004, between Familymeds and Borrower. 
  
 5. Amendment Fee. In consideration of the amendments set forth herein, Borrower agrees to pay to Lender or Lender may, at its option, charge any
account of Borrower maintained by Lender, a fee the amount of $50,000 (the “Amendment Fee”), which shall be fully earned as of the date hereof and shall constitute part of the Obligations, it being understood and agreed that Borrower shall
pay or Agent shall charge the loan account of Borrower $35,000 of such Amendment Fee as of the date hereof and Borrower shall pay or Agent shall charge the loan account of Borrower $15,000 of such Amendment Fee on September 30, 2004, it being
further understood and agreed that, if the transactions contemplated by the Proposal Letter, dated April 5, 2004, between DrugMax, Inc. and Lender (the “Proposal Letter”), shall have been consummated on or before October 1, 2004, $15,000
of such Amendment Fee shall be credited to a reduction in the amount of the amendment fee referred to in Section 5(a) of the Proposal Letter. 
  
 6. Representations, Warranties and Covenants. In addition to the continuing representations, warranties and covenants heretofore or hereafter made
by Borrower to Lender 

  

 3 

 
pursuant to the other Financing Agreements, Borrower hereby represents, warrants and covenants with and to Lender as follows (which representations,
warranties and covenants are continuing and shall survive the execution and delivery hereof and shall be incorporated into and made a part of the Financing Agreements): 
  
 (a) Borrower shall regularly advise Lender of the status and progress of its negotiations with Familymeds
with respect to the proposed merger of Familymeds and Borrower. 
  
 (b) Borrower hereby acknowledges and agrees that promptly following the execution and delivery hereof, but no later than August 14, 2004, it shall retain at its cost and expense, a consultant specified or approved by
Lender, to: (i) evaluate and review the business, financial and collateral reporting of Borrower, (ii) assist in the preparation of a thirteen (13) week rolling cash flow plan to be submitted to Lender by Borrower weekly, (iii) assess the interim
plans of Borrower pending its proposed merger with Familymeds and assess the viability of turnaround plans, cash flow projections and operating performance improvement plans in the event such merger is not consummated, pursuant to a retainer letter
or agreement in form and substance satisfactory to Lender and which shall authorize, among other things, the delivery and disclosure by Consultant to Lender of all reports and related information prepared or evaluated by Consultant in connection
with such engagement. Borrower acknowledges and agrees that such Consultant will begin work no later than August 16, 2004. 
  
 (c) The failure of Borrower to comply with the covenants, conditions and agreements contained herein or in any other agreement, document
or instrument at any time executed and/or delivered by Borrower with, to or in favor of Lender shall constitute an Event of Default under the Financing Agreements. 
  
 (d) This Amendment has been duly executed and delivered by Borrower and is in full force and effect as of
the date hereof, and the agreements and obligations of Borrower contained herein constitute legal, valid and binding obligations of Borrower enforceable against Borrower in accordance with their respective terms. 
  
 (e) Other than the Existing Defaults, as of the date hereof,
no other Default or Event of Default has occurred or is continuing (after giving effect to the amendments and waivers set forth in this Amendment). 
  
 7. Effect of this Amendment. Except as modified pursuant hereto, no other changes, modifications or waivers to or under the Loan Agreement or the
other Financing Agreements are intended or implied and in all other respects the Financing Agreements are hereby specifically ratified and confirmed by the parties hereto as of the effective date hereof. This Amendment represents the entire
agreement and understanding concerning the subject matter hereof between the parties hereto, and supersedes all other prior agreements, understandings, negotiations and discussions, representations, warranties, commitments, proposals, offers and
contracts concerning the subject matter hereof, whether oral or written. To the extent of any conflict between the terms of this Amendment and the other Financing Agreements, the terms of this Amendment shall control. The Loan Agreement and this
Amendment shall be read and construed as one agreement. 
  

 4 

 8. Conditions to Effectiveness of this Amendment. The effectiveness of this Amendment shall be
subject to the satisfaction of the following conditions: 
  
 (a) Lender shall have received, in form and substance satisfactory to Lender, an original of this Amendment, duly authorized, executed and delivered by Borrower; 
  
 (b) Lender shall have received the amendment fee referred to
in Section 3 hereof; 
  
 (c) Lender shall have
received any and all such further instruments and documents as Lender may require to obtain the full benefits of this Amendment and to protect, preserve and maintain Lender’s rights in the Collateral; and 
  
 (d) Other than the Existing Defaults, no other Default or
Event of Default has occurred or is continuing (after giving effect to the amendments and waivers set forth in this Amendment). 
  
 9. Governing Law. The rights and obligations hereunder of each of the parties hereto shall be governed by and interpreted and determined in
accordance with the laws of the State of Florida without regard to principals of conflicts of laws, but excluding any rule of law that would cause the application of the law of any jurisdiction other that the laws of the State of Florida.

  
 10. Binding Effect. This Amendment shall be binding
upon and inure to the benefit of each of the parties hereto and their respective successors and assigns. 
  
 11. Counterparts. This Amendment may be executed in any number of counterparts, but all of such counterparts shall together constitute but one and
the same agreement. In making proof of this Amendment, it shall not be necessary to produce or account for more than one counterpart thereof signed by each of the parties hereto. This Amendment may be executed and delivered by telecopier with the
same force and effect as if it were a manually executed and delivered counterpart. 
  
 12. Further Assurances. The parties hereto shall execute and deliver such additional documents and take such additional action as may be necessary or reasonably desirable to effectuate the provisions and
purposes of this Amendment. 
  
 [REMAINDER OF THIS PAGE
INTENTIONALLY LEFT BLANK] 
  

 5 

 IN WITNESS WHEREOF, Lender and Borrower have caused these presents to be duly executed as of the day and
year first written above. 
  

			
	BORROWER
	
	 DRUGMAX, INC.

		
	 By:
	 	 /s/ Ronald J Patrick

	 Name:
	 	 Ronald J Patrick

	 Title:
	 	 CFO

	
	 VALLEY DRUG COMPANY

		
	 By:
	 	 /s/ Ronald J Patrick

	 Name:
	 	 Ronald J Patrick

	 Title:
	 	 CFO

	
	 VALLEY DRUG COMPANY SOUTH

		
	 By:
	 	 /s/ Ronald J Patrick

	 Name:
	 	 Ronald J Patrick

	 Title:
	 	 CFO

	
	 DISCOUNT Rx, INC.

		
	 By:
	 	 /s/ Ronald J Patrick

	 Name:
	 	 Ronald J Patrick

	 Title:
	 	 CFO

	
	LENDER
	
	 CONGRESS FINANCIAL CORPORATION
 (FLORIDA)

		
	 By:
	 	 /s/ Pat Cloninger

	 Name:
	 	 Pat Cloninger

	 Title:
	 	 Vice President

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00074-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00074-of-00352.parquet"}], [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00074-of-00352.parquet"}]]