Document:

Exhibit 10.73

Exhibit 10.73

TERM NOTE

March 28, 2011

Date Executed

BORROWER’S NAME AND ADDRESS:

Dover Saddlery, Inc.

a Delaware corporation

DOVER SADDLERY, INC.

a Massachusetts corporation

Smith Brothers, Inc.

a Texas corporation

Dover Saddlery Retail, Inc.

a Massachusetts corporation

Old Dominion Enterprises, Inc.

a Virginia corporation

Dover Saddlery Direct, Inc.

a Massachusetts corporation

All with an address of:

525 Great Road

Littleton, Massachusetts 01460

(collectively the “Borrowers”)

LENDER’S NAME AND ADDRESS

RBS Citizens, National Association

875 Elm Street

Manchester, New Hampshire 03101

			
	Principal Amount:	 	Up to Five Million Five Hundred Thousand Dollars ($5,500,000.00) (“Principal Amount”)

Maturity Date: March 27, 2018 (84 months)

 

 

 

1. PROMISE TO PAY. FOR VALUE RECEIVED, Borrower hereby (and jointly and severally if more
than one Borrower) promises to pay to the order of Lender, or to any holder, at Lender’s address
stated above or at such other place as Lender or any subsequent holder hereof may in writing
designate in lawful currency of the United States of America, the Principal Amount outstanding,
with interest thereon from the date hereof at the Applicable Interest Rate defined below. This
Note is issued pursuant to, and is subject to, the terms and conditions of a Loan and Security
Agreement among Borrower and Lender dated December 11, 2007 (as the same has been, is being and may
hereafter be, amended, renewed, restated and/or replaced from time to time, the “Loan Agreement”),
all of which are incorporated herein by reference as if set forth in full herein.

2. DEFINITIONS. Words and phrases which are capitalized and not defined below or above
shall have the meanings given to them in the Loan Agreement. As used herein, the following terms
shall have the meanings set forth below:

“Account” means account #3310580964 maintained by the Lender in the name of the
Borrower

“Adjusted LIBOR Rate” means, relative to a LIBOR Rate Loan, a rate per annum
determined by dividing (x) the LIBOR Rate for such Interest Period by (y) a percentage equal to one
hundred percent (100%) minus the LIBOR Reserve Percentage.

“Applicable Interest Rate” means (a) the LIBOR Advantage Rate plus the LA Margin; (b)
the Adjusted LIBOR Rate plus the LIBOR Rate Margin or (c) the Prime Rate plus the Prime Rate Margin
in effect at any given time pursuant to the terms hereof on a portion or all of the Principal
Amount outstanding. Notwithstanding, however, the Applicable Interest Rate for Advance 2 will not
be less than 5.40% per annum. Interest shall be calculated for the actual number of days elapsed
on the basis of a 360 day year, including the first date of the advance to, but not including, the
date of repayment.

“Business Day” means:

	 	(a)	 	any day which is neither a Saturday or Sunday nor a legal holiday
on which commercial banks are authorized or required to be closed in Manchester,
New Hampshire;

	 	(b)	 	when such term is used to describe a day on which a borrowing,
payment, prepayment or repayment is to be made in respect of a LIBOR Rate Loan,
any day which is (i) neither a Saturday or Sunday nor a legal holiday on which
commercial banks are authorized or required to be closed in New York City; and
(ii) a London Banking Day; and

	 	(c)	 	when such term is used to describe a day on which an interest rate
determination is to be made in respect of a LIBOR Rate Loan, any day which is a
London Banking Day.

 

 

 

“Funding Date” means the 28th day of March, 2011.

“Hedging Contracts” means, interest rate swap agreements, interest rate cap agreements
and interest rate collar agreements, or any other agreements or arrangements entered into between
the Borrower and the Lender and designed to protect the Borrower against fluctuations in interest
rates or currency exchange rates.

“Hedging Obligations” means, with respect to the Borrower, all liabilities of the
Borrower to the Lender under Hedging Contracts.

“Interest Payment Date” means (a) when pertaining to any LIBOR Rate Loan, the LIBOR
Interest Payment Date, (b) when pertaining to any LIBOR Advantage Loan or Prime Rate Loan, the LA
Interest Payment Date.

“LA Interest Payment Date” means, initially, the 28th day of April, 2011, and
thereafter the day of each succeeding month which numerically corresponds to such date or, if a
month does not contain a day that numerically corresponds to such date, the LA Interest Payment
Date shall be the last day of such month.

“LA Interest Period” means, with respect to any LIBOR Advantage Loan, the period
commencing on (and including) the date hereof (the “Start Date”) and ending on (but excluding) the
date which numerically corresponds to such date one month later, and thereafter, each one month
period ending on the day of such month that numerically corresponds to the Start Date. If an LA
Interest Period is to end in a month for which there is no day which numerically corresponds to the
Start Date, the LA Interest Period will end on the last day of such month. Notwithstanding the
date of commencement of any LA Interest Period, interest shall only begin to accrue as of the date
the initial LIBOR Advantage Loan is made under the Loan Agreement.

“LA Margin” means Four and Four-tenths percent (4.4%) per annum.

“LIBOR Advantage Loan” means any loan or advance for which the Applicable Rate is
based upon the LIBOR Advantage Rate (or Prime Rate plus the Prime Rate Margin if the LIBOR
Advantage Rate is unavailable or cannot be determined as described below.)

“LIBOR Advantage Rate” means, relative to any LA Interest Period, the offered rate for
delivery in two London Banking Days of deposits of U.S. Dollars for a term coextensive with the
designated LA Interest Period which the British Bankers’ Association fixes as its LIBOR rate as of
11:00 a.m. London time on the day on which such LA Interest Period commences. If the first day of
any Interest Period is not a day which is both a (i) Business Day, and (ii) a London Banking Day,
the LIBOR Advantage Rate shall be determined by reference to the next preceding day which is both a
Business Day and a London Banking Day. If for any reason the LIBOR Advantage Rate is unavailable
and/or the Lender is unable to determine the LIBOR Advantage
Rate for any LA Interest Period, the Lender may, at its discretion, either: (a) select a
replacement index based on the arithmetic mean of the quotations, if any, of the interbank offered
rate by first class banks in London or New York for deposits with comparable maturities or (b)
accrue interest at a rate per annum equal to the Lender’s Prime Rate plus the Prime Rate Margin as
of the first day of any Interest Period for which the LIBOR Advantage Rate is unavailable or cannot
be determined.

 

 

 

“LIBOR Interest Payment Date” means the last Business Day of each LIBOR Interest
Period or, in the case of Prime Rate Loans, the last Business Day of each month.

“LIBOR Interest Period” means in the case of a LIBOR Rate Loans:

	 	(i)	 	initially, the period beginning on (and including) the Funding Date and ending on (but
excluding) the day which numerically corresponds to such date one month thereafter (or, if
such month has no numerically corresponding day, on the last Business Day of such month);

	 	(ii)	 	thereafter, each period commencing on the last day of the next preceding LIBOR
Interest Period applicable to such LIBOR Rate Loan and ending one month thereafter;

provided, however, that

	 	(a)	 	if the Borrower has or may incur Hedging Obligations with the Bank in
connection with the Loan, the LIBOR Interest Period shall be of the same duration as
the relevant period set under the applicable Hedging Contract;

	 	(b)	 	if such LIBOR Interest Period would otherwise end on a day which is not a
Business Day, such LIBOR Interest Period shall end on the next following Business Day
unless such day falls in the next calendar month, in which case such LIBOR Interest
Period shall end on the first preceding Business Day; and

	 	(c)	 	no LIBOR Interest Period may end later than the termination of this Agreement.

“LIBOR Rate” means, relative to any LIBOR Interest Period for a LIBOR Rate Loan, the
offered rate for deposits of U.S. Dollars in an amount approximately equal to the amount of the
LIBOR Rate Loan for a one month period which the British Bankers’ Association fixes as its LIBOR
rate as of 11:00 a.m. London time on the day which is two London Banking Days prior to the
beginning of such Interest Period. If the Lender cannot determine such offered rate by the British
Bankers’ Association, the Lender may, in its discretion, select a replacement index based on the
arithmetic mean of the quotations, if any, of the interbank offered rate by first class banks in
London or New York for deposits in comparable amounts and maturities.

“LIBOR Rate Loan” means the Loan for the period(s) when the rate of interest
applicable to the Loan is calculated by reference to the Adjusted LIBOR Rate in the manner set
forth herein.

“LIBOR Rate Margin” means four and four tenths percent (4.4%) per annum.

 

 

 

“LIBOR Reserve Percentage” means, relative to any day of any LIBOR Interest Period,
the maximum aggregate (without duplication) of the rates (expressed as a decimal fraction) of
reserve requirements (including all basic, emergency, supplemental, marginal and other reserves and
taking into account any transitional adjustments or other scheduled changes in reserve
requirements) under any regulations of the Board of Governors of the Federal Reserve System (the
“Board”) or other governmental authority having jurisdiction with respect thereto as issued from
time to time and then applicable to assets or liabilities consisting of “Eurocurrency Liabilities”,
as currently defined in Regulation D of the Board, having a term approximately equal or comparable
to such Interest Period.

“Loan” means all amounts outstanding under this Note.

“London Banking Day” means a day on which dealings in US dollar deposits are
transacted in the London interbank market.

“Note” means this certain promissory note dated as of the 28th day of March, 2011 in
the principal amount of Five Million Five Hundred Thousand Dollars ($5,500,000.00) made payable by
the Borrower to the order, and for the benefit, of the Lender.

“Prime Rate” shall mean a rate per annum equal to the rate of interest announced by
Lender from time to time as its “Prime Rate”. Any change in the Prime Rate shall be effective
immediately from and after such change in the Prime Rate. Interest accruing by reference to the
Prime Rate shall be calculated on the basis of actual days elapsed and a 360-day year. The
Borrower acknowledges that the Lender may make loans to its customers above, at or below the Prime
Rate.

“Prime Rate Loan” means any Loan for the period(s) when the rate of interest
applicable to such Loan is calculated by reference to the Prime Rate.

“Prime Rate Margin” means one and four tenths percent (1.40%) per annum.

“Principal Repayment Amount” means the regularly scheduled reductions in the
outstanding principal of the Loan to be made on each Interest Period Date, as set forth in the
attached Schedule XX entitled “Principal Repayment Schedule”.

3. BORROWING PROCEDURES.

Funding of the Loan. On the Funding Date, subject to the terms and conditions of the
Loan Agreement, the Loan shall be made available to the Borrower no later than 11:00 a.m. New York
time by a deposit to the Account (or as otherwise instructed by the Borrower in writing) in the
full principal amount of the Loan. The Loan shall be made in two (2) advances, one in the amount
of Three Million Nine Hundred Thousand Dollars ($3,900,000.00) (“Advance 1”) and the second in the
amount of One Million Six Hundred Thousand Dollars ($1,600,000.00) (“Advance 2”). Advance 1 shall
initially be classified as a LIBOR Rate Loan. Advance 2 shall initially be characterized as a
LIBOR Advantage Loan.

 

 

 

4. INTEREST AND PRINCIPAL PROVISIONS.

Interest Provisions. Interest on each Advance, when such Advance is classified as a:
(i) LIBOR Advantage Loan, shall accrue during each LA Interest Period at a rate per annum equal to
the sum of the LIBOR Advantage Rate for such LA Interest Period plus the LA Margin and shall be due
and payable on each LA Interest Period on the Maturity Date, (ii) LIBOR Rate Loan, shall accrue
during each LIBOR Interest Period at a rate per annum equal to the sum of the Adjusted LIBOR Rate
for such LIBOR Interest Period plus the LIBOR Rate Margin and shall be due and payable on each
Interest Payment Date and on the Maturity Date, and (iii) Prime Rate Loan, shall accrue at a rate
per annum equal to the sum of the Prime Rate plus the Prime Rate Margin, and shall be due and
payable on each Interest Payment Date and on the Maturity Date.

Principal Provisions. Commencing on the Interest Payment Date that occurs in the
month of April, 2013, and continuing on each Interest Payment Date thereafter, Borrower will make
principal payments for each of Advance 1 and Advance 2 in the amount of the original Advance
divided by eighty four (84) months as shown on Schedule XX. In addition, commencing with the 2013
fiscal year end, within one hundred twenty (120) days after the 2013 fiscal year end, Borrower
shall make a principal payment on Advance 2 equal to (i) the lesser of Five Hundred Thousand
Dollars ($500,000.00) or (ii) fifty percent (50%) of Excess Cash Flow (as defined in the Loan
Agreement). Borrower shall continue to make annual principal reductions on Advance 2 within one
hundred twenty (120) days after its fiscal year end equal to the lesser of Five Hundred Thousand
Dollars ($500,000.00) or fifty percent (50%) of Excess Cash Flow until the sum of all such
principal reduction payments equals One Million Six Hundred Thousand Dollars ($1,600,000.00).
Borrower authorizes Lender to withdraw Interest and Principal Payments from the Account. All
unpaid principal and interest, late fees and other charges on both Advance 1 and Advance 2 will be
due in full on the Maturity Date.

Automatic Rollover of LIBOR Rate Loan. Upon the expiration of a LIBOR Interest
Period, the LIBOR Rate Loan shall automatically be continued as a LIBOR Rate Loan at the then
applicable Adjusted LIBOR Rate and in an amount equal to the principal amount of the expiring LIBOR
Rate Loan less any Principal Repayment Amount made by Borrower; provided,
however, that no portion of the outstanding principal amount of a LIBOR Rate Loan may be
continued as a LIBOR Rate Loan when any Event of Default has occurred and is continuing. If any
Event of Default has occurred and is continuing (if the Lender does not otherwise elect to exercise
any right to accelerate the Loan hereunder), the LIBOR Rate Loan shall automatically be continued
as a Prime Rate Loan on the first day of the next Interest Period.

5. LATE FEES/DEFAULT RATE OF INTEREST. Borrower shall pay to Lender in addition to all
other amounts then due a late charge equal to the greater of Thirty Five Dollars ($35.00) or five
percent (5%) of any payment not received by Lender ten (10) days after such payment is due.
Acceptance by Lender of any late payment charge shall not be deemed a waiver of any Event of
Default or demand previously made by Lender. Furthermore, after any Event of Default under the
Loan Agreement (or any other Loan Document referenced therein) the Applicable Interest Rate payable
hereunder shall be equal to the Applicable Interest Rate payable prior to the Event of Default plus
three percent (3.0%) (“Default Interest Rate”).

 

 

 

6. MISCELLANEOUS LIBOR RATE LOAN TERMS.

Voluntary Prepayment of the Loan. Borrower may prepay any Prime Rate Loan or LIBOR
Advantage Loan in whole or in part on any Interest Payment Date without premium or penalty of any
nature. When classified as a LIBOR Rate Loan, the Loan may be prepaid upon the terms and
conditions set forth herein. The Borrower acknowledges that additional obligations may be
associated with any such prepayment under the terms and conditions of any applicable Hedging
Contracts. The Borrower shall give the Lender, no later than 10:00 a.m., New York City time, at
least four (4) Business Days notice of any proposed prepayment of the LIBOR Rate Loan, specifying
the proposed date of payment and the principal amount to be paid. Each partial prepayment of the
principal amount of the LIBOR Rate Loan shall be in an integral multiple of $100,000.00 and
accompanied by the payment of all charges outstanding on the LIBOR Rate Loan (including the LIBOR
Breakage Fee) and of all accrued interest on the principal repaid to the date of payment. No
partial prepayment of any loan shall relieve Borrower of its succeeding obligations to make monthly
payments of principal and interest on each subsequent Interest Payment Date.

LIBOR Breakage Fee. Upon any prepayment of a LIBOR Rate Loan on any day that is not
the last day of the relevant Interest Period (regardless of the source of such prepayment and
whether voluntary, by acceleration or otherwise), the Borrower shall pay an amount (“LIBOR Breakage
Fee”), as calculated by the Lender, equal to the amount of any losses, expenses and liabilities
(including without limitation any loss of margin and anticipated profits) that Lender may sustain
as a result of such default or payment. The Borrower understands, agrees and acknowledges that:
(i) the Lender does not have any obligation to purchase, sell and/or match funds in connection with
the use of the LIBOR Rate as a basis for calculating the rate of interest on a LIBOR Rate Loan,
(ii) the LIBOR Rate may be used merely as a reference in determining such rate, and (iii) the
Borrower has accepted the LIBOR Rate as a reasonable and fair basis for calculating the LIBOR
Breakage Fee and other funding losses incurred by the Lender. Borrower further agrees to pay the
LIBOR Breakage Fee and other funding losses, if any, whether or not the Lender elects to purchase,
sell and/or match funds.

LIBOR Rate Lending Unlawful. If the Lender shall determine (which determination
shall, upon notice thereof to the Borrower be conclusive and binding on the Borrower) that the
introduction of or any change in or in the interpretation of any law, rule, regulation or
guideline, (whether or not having the force of law) makes it unlawful, or any central bank or other
governmental authority asserts that it is unlawful, for the Lender to make, continue or maintain
the Loan as, or to convert the Loan into, a LIBOR Rate Loan, then any such LIBOR Rate Loans shall,
upon such determination, forthwith be suspended until the Lender shall notify the Borrower that the
circumstances causing such suspension no longer exist, and all LIBOR Rate Loans of such type shall
automatically convert into Prime Rate Loans at the end of the then current Interest Periods with
respect thereto or sooner, if required by such law and assertion.

 

 

 

Increased Costs. If, on or after the date hereof, the adoption of any applicable law,
rule or regulation or guideline (whether or not having the force of law), or any change therein, or
any change in the interpretation or administration thereof by any governmental authority, central
bank or comparable agency charged with the interpretation or administration thereof, or
compliance by the Lender with any request or directive (whether or not having the force of law) of
any such authority, central bank or comparable agency:

	 	(a)	 	shall impose, modify or deem applicable any reserve, special
deposit or similar requirement (including, without limitation, any such
requirement imposed by the Board of Governors of the Federal Reserve System of
the United States) against assets of, deposits with or for the account of, or
credit extended by, the Lender or shall impose on the Lender or on the London
interbank market any other condition affecting the LIBOR Rate Loan or its
obligation to make the LIBOR Rate Loan; or

	 	(b)	 	shall impose on Lender any other condition affecting the LIBOR Rate
Loan or its obligation to make the LIBOR Rate Loan,

and the result of any of the foregoing is to increase the cost to the Lender of making or
maintaining the Loan as a LIBOR Rate Loan, or to reduce the amount of any sum received or
receivable by the Lender under this Agreement with respect thereto, by an amount deemed by the
Lender to be material, then, within 15 days after demand by the Lender, the Borrower shall pay to
the Lender such additional amount or amounts as will compensate the Lender for such increased cost
or reduction.

Increased Capital Costs. If any change in, or the introduction, adoption,
effectiveness, interpretation, reinterpretation or phase-in of, any law or regulation, directive,
guideline, decision or request (whether or not having the force of law) of any court, central bank,
regulator or other governmental authority affects or would affect the amount of capital required or
expected to be maintained by the Lender, or person controlling the Lender, and the Lender
determines (in its sole and absolute discretion) that the rate of return on its or such controlling
person’s capital as a consequence of its commitments or the Loan made by the Lender is reduced to a
level below that which the Lender or such controlling person could have achieved but for the
occurrence of any such circumstance, then, in any such case upon notice from time to time by the
Lender to the Borrower, the Borrower shall immediately pay directly to the Lender additional
amounts sufficient to compensate the Lender or such controlling person for such reduction in rate
of return. A statement of the Lender as to any such additional amount or amounts (including
calculations thereof in reasonable detail) shall, in the absence of manifest error, be conclusive
and binding on the Borrower. In determining such amount, the Lender may use any method of
averaging and attribution that it (in its sole and absolute discretion) shall deem applicable.

 

 

 

Taxes. All payments by the Borrower of principal of, and interest on, the LIBOR Rate
Loan and all other amounts payable hereunder shall be made free and clear of and without deduction
for any present or future income, excise, stamp or franchise taxes and other taxes, fees, duties,
withholdings or other charges of any nature whatsoever imposed by any taxing authority, but
excluding franchise taxes and taxes imposed on or measured by the Lender’s net income or receipts
(such non-excluded items being called “Taxes”). In the event that any withholding or deduction
from any payment to be made by the Borrower hereunder is required in respect of any Taxes pursuant
to any applicable law, rule or regulation, then the Borrower will:

	 	(a)	 	pay directly to the relevant authority the full amount required to
be so withheld or deducted;

	 	(b)	 	promptly forward to the Lender an official receipt or other
documentation satisfactory to the Lender evidencing such payment to such
authority; and

	 	(c)	 	pay to the Lender such additional amount or amounts as is necessary
to ensure that the net amount actually received by the Lender will equal the full
amount the Lender would have received had no such withholding or deduction been
required.

Moreover, if any Taxes are directly asserted against the Lender with respect to any payment
received by the Lender hereunder, the Lender may pay such Taxes and the Borrower will promptly pay
such additional amount (including any penalties, interest or expenses) as is necessary in order
that the net amount received by the Lender after the payment of such Taxes (including any Taxes on
such additional amount) shall equal the amount the Lender would have received had not such Taxes
been asserted.

If the Borrower fails to pay any Taxes when due to the appropriate taxing authority or fails to
remit to the Lender the required receipts or other required documentary evidence, the Borrower
shall indemnify the Lender for any incremental Taxes, interest or penalties that may become payable
by the Lender as a result of any such failure

Unavailability Of LIBOR Rate. In the event that Borrower shall have requested a LIBOR
Rate Loan and Lender, in its sole discretion, shall have determined that U.S. dollar deposits in
the relevant amount and for the relevant LIBOR Interest Period are not available to the Lender in
the London interbank market; or by reason of circumstances affecting the Lender in the London
interbank market, adequate and reasonable means do not exist for ascertaining the LIBOR Rate
applicable to the relevant LIBOR Interest Period; or the LIBOR Rate no longer adequately and fairly
reflects the Lender’s cost of funding loans; upon notice from the Lender to the Borrower, the
obligations of the Lender to make or continue any loans as, or to convert any loans into, LIBOR
Rate Loans of such duration shall forthwith be suspended until the Lender shall notify the Borrower
that the circumstances causing such suspension no longer exist.

7. EVENT OF DEFAULT. Each of the following events shall constitute an Event of Default
hereunder entitling Lender to declare all principal, interest, late fees and other charges
immediately due in full: any failure by Borrower to make a payment of principal or interest, or
any other sum payable hereunder as and when due not cured in ten (10) days; any act or proceeding
of insolvency or bankruptcy occurs with respect to Borrower or any guarantor, whether voluntary or
involuntary; failure of Borrower to maintain sufficient funds in the Account to pay Interest and
Principal Payments when due hereunder; any Event of Default as defined in the Loan Agreement or any
Loan Document referenced therein; any default under any Hedging Contract not cured in accordance
with the terms thereof; if on the Maturity Date Borrower has not paid its obligations hereunder in
full; or if Borrower or any Guarantor prepays in full and terminates any other loan it has with
Lender.

 

 

 

8. WAIVER OF JURY TRIAL. BORROWER AND LENDER WAIVE TRIAL BY JURY IN RESPECT OF ANY
“DISPUTE” UNDER THIS AGREEMENT. THIS WAIVER IS KNOWINGLY, WILLINGLY AND VOLUNTARILY MADE BY
BORROWER AND LENDER, AND BORROWER AND LENDER HEREBY REPRESENT THAT NO REPRESENTATIONS OF FACT OR
OPINION HAVE BEEN MADE BY ANY PERSON OR ENTITY TO INDUCE THIS WAIVER OF TRIAL BY JURY OR TO IN ANY
WAY MODIFY OR NULLIFY ITS EFFECT. THIS PROVISION IS A MATERIAL INDUCEMENT FOR THE PARTIES ENTERING
INTO THIS AGREEMENT. BORROWER AND LENDER ARE EACH HEREBY AUTHORIZED TO FILE A COPY OF THIS SECTION
IN ANY PROCEEDING AS CONCLUSIVE EVIDENCE OF THIS WAIVER OF JURY TRIAL. BORROWER FURTHER REPRESENTS
AND WARRANTS THAT IT HAS BEEN REPRESENTED IN THE SIGNING OF THIS AGREEMENT AND IN THE MAKING OF
THIS WAIVER BY INDEPENDENT LEGAL COUNSEL, OR HAS HAD THE OPPORTUNITY TO BE REPRESENTED BY INDEPENDENT LEGAL
COUNSEL SELECTED OF ITS OWN FREE WILL, AND THAT IT HAS HAD THE OPPORTUNITY TO DISCUSS THIS WAIVER
WITH COUNSEL.

9. SET OFF. Lender shall have and hereby is granted a lien upon, security interest in and
a right of setoff against all moneys, securities and other property of each of the Borrower now or
hereafter in the possession of or on deposit with Lender or any Affiliate of Lender, whether held
in a general or special account or deposit, or for safekeeping or otherwise; and every such lien,
security interest and right of setoff may be exercised without demand upon or notice to any of the
Borrower. No lien, security interest or right of setoff shall be deemed to have been waived by any
act or conduct on the part of Lender, or by any failure to exercise such right of setoff or to
enforce such lien or security interest, or by any delay in so doing, and every right of setoff and
lien shall continue in full force and effect until such right of setoff or lien specifically is
waived or released in a written instrument executed by Lender.

10. NO USURY. It is expressly stipulated and agreed to be the intent of Borrower and
Lender at all times to comply with applicable state law or applicable United States federal law (to
the extent that it permits Lender to contract for, charge, take, reserve, or receive a greater
amount of interest than under state law) and that this Section shall control every other covenant
and agreement in this Note and the other Loan Documents. If applicable state or federal law should
at any time be judicially interpreted so as to render usurious any amount called for under this
Note or under any of the other Loan Documents, or contracted for, charged, taken, reserved, or
received with respect to the Loan, or if Lender’s exercise of the option to accelerate the Maturity
Date, or if any prepayment by Borrower results in Borrower having paid any interest in excess of
that permitted by applicable law, then it is Lender’s express intent that all excess amounts
theretofore collected by Lender shall be credited on the principal balance of this Note and all
Obligations of Borrower to Lender, and the provisions of this Note and the other Loan Documents
shall immediately be deemed reformed and the amounts thereafter collectible hereunder and
thereunder reduced, without the necessity of the execution of any new documents, so as to comply
with the applicable law, but so as to permit the recovery of the fullest amount otherwise called
for hereunder or thereunder. All sums paid or agreed to be paid to Lender for
the use or forbearance of the Loan shall, to the extent permitted by applicable law, be amortized,
prorated, allocated, and spread throughout the full stated term of the Loan.

 

 

 

11. GENERAL PROVISIONS. Time is of the essence with respect to Borrower’s obligations
under this Note. This Note shall have the effect of an instrument under seal. Borrower agrees to
pay to Lender on demand all costs and expenses incurred by Lender in seeking to collect this Note
or to enforce any of Lender’s rights and remedies under this Note, including court costs and
reasonable attorneys’ fees and expenses, whether or not suit is filed hereon, or whether in
connection with bankruptcy, insolvency or appeal. If more than one person or entity executes this
Note as Borrower, all of said parties shall be jointly and severally liable for payment of the
indebtedness evidenced hereby and any reference to “Borrower” shall include all of them. No right
or power of Lender hereunder shall be deemed to have been waived by any act or conduct or failure
or delay to act on the part of the Lender or any of its agents, employees or representatives; and
the terms and provisions hereof may not be waived, altered, modified, or amended except in writing
duly signed by a duly authorized officer of the Lender. In the event that Lender shall waive in
writing any provision or requirement hereunder, such waiver shall be effective only for the
specific purposes, circumstances and duration stated in said waiver. Lender may, without notice,
assign this Note in whole or in part and each reference herein to Lender shall be deemed to include
its successors and assigns. The provisions of this Note are binding upon each of the Borrower and
the heirs, distributees, executors, administrators, legal representatives, personal
representatives, successors and assigns thereof and shall inure to the benefit of the Lender and
each of its successors and assigns. If the Borrower is an individual, the Borrower is executing
this Note in such capacity and as trustee of any revocable trust which may exist at the time hereof
or be created hereafter. Borrower hereby severally (a) waive demand for performance, notice of non
performance, presentment for payment, dishonor, notice of dishonor, protest, notice of protest,
notice of intent to accelerate, notice of acceleration and all other notices (except any demand or
notices which are specifically required by this Note or any other Loan Document); (b) agree to any
substitution, subordination, exchange or release of any security for this Note or of any party
primarily or secondarily liable hereon; (c) agree that Lender shall not be required first to
institute suit or exhaust its remedies hereon against any other Borrower, or others liable or to
become liable hereon, or to perfect or enforce its rights against them or any security herefor; (d)
consent to any extensions or postponements and to any partial payments, before or after maturity,
and to any other indulgences with respect hereto, without notice thereof to any of them; (e)
consent to any renewals, compromises, extensions, accelerations, restatements, consolidations,
modifications, replacements, substitutions, refinancings or other changes to the time for payment
or performance or other terms of the indebtedness evidenced by this Note; (f) submit (and waive all
rights to object) to non-exclusive personal jurisdiction of any state or federal court sitting in
the State of New Hampshire for the enforcement of any and all obligations under this Note and the
other Loan Documents; (g) waive the benefit of all homestead and similar exemptions as to this
Note; (h) agree that their liability under this Note shall not be discharged by any determination
that any title, security interest or lien taken by Lender to secure this Note is invalid or
unperfected; (i) hereby subordinate to the Loan and the Loan Documents any and all rights against
any other Borrower and any security for the payment of this Note, whether by subrogation, agreement
or otherwise, until this Note is paid in full; (j) waive any rights of subrogation, reimbursement,
indemnification and contribution (including any right

 

 

 

under the U.S. Bankruptcy Code); (k) waive any benefit of any right to participate in any security now or
hereafter held by Lender; and (l) waive any defense arising out of the negligent disposition of any
collateral or release of any other party liable hereon. A determination that any provision of this
Note is unenforceable or invalid shall not affect the enforceability or validity of any other
provision and the determination that the application of any provision of this Note to any person or
circumstance is illegal or unenforceable shall not affect the enforceability or validity of such
provision as it may apply to other persons or circumstances. Captions and headings in this Note
are for convenience only and shall be disregarded in construing it. This Note and its validity,
enforcement and interpretation shall be governed by the laws of the state in which payment of this
Note is to be made (without regard to any principles of conflicts of laws) and applicable United
States federal law. Any notice, request, or demand to or upon Borrower or Lender shall be deemed
to have been properly given or made when delivered in accordance with the terms of the Loan
Agreement regarding notices.

[PAGE ENDS HERE, SIGNATURE PAGE FOLLOWS]

 

 

 

IN WITNESS WHEREOF, Borrower has caused this Note to be duly executed as of the date first
above written.

	 	 	 	 	 	 	 
	 	 	BORROWERS:	 	 
	 
	 	 	 	 	 	 
	 	 	DOVER SADDLERY, INC.	 	 
	 	 	(a Delaware Corporation)	 	 
	 
	 	 	 	 	 	 
	/s/ John M. Sullivan

	 	By:
	 	/s/ Stephen L. Day	 	 
	 

Witness

	 	 	 	 

Name: Stephen L. Day
	 	 
	 

	 	 	 	Title: President	 	 
	 
	 	 	 	 	 	 
	 	 	DOVER SADDLERY, INC.	 	 
	 	 	(a Massachusetts Corporation)	 	 
	 
	 	 	 	 	 	 
	/s/ John M. Sullivan
 

Witness

	 	By:
	 	/s/ Stephen L. Day
 

Name: Stephen L. Day
	 	 
	 

	 	 	 	Title: Chairman of the Board	 	 
	 
	 	 	 	 	 	 
	 	 	SMITH BROTHERS, INC.	 	 
	 
	 	 	 	 	 	 
	/s/ John M. Sullivan
 

Witness

	 	By:
	 	/s/ Stephen L. Day
 

Name: Stephen L. Day
	 	 
	 

	 	 	 	Title: Chairman of the Board	 	 
	 
	 	 	 	 	 	 
	 	 	DOVER SADDLERY RETAIL, INC.	 	 
	 
	 	 	 	 	 	 
	/s/ John M. Sullivan
 

Witness

	 	By:
	 	/s/ Stephen L. Day
 

Name: Stephen L. Day
	 	 
	 

	 	 	 	Title: Chairman of the Board	 	 

 

 

 

	 	 	 	 	 	 	 
	 	 	OLD DOMINION ENTERPRISES, INC.	 	 
	 
	 	 	 	 	 	 
	/s/ John M. Sullivan
 

Witness

	 	By:
	 	/s/ Stephen L. Day
 

Name: Stephen L. Day
	 	 
	 

	 	 	 	Title: Chairman of the Board	 	 
	 
	 	 	 	 	 	 
	 	 	DOVER SADDLERY DIRECT, INC.	 	 
	 
	 	 	 	 	 	 
	/s/ John M. Sullivan
 

Witness

	 	By:
	 	/s/ Stephen L. Day
 

Name: Stephen L. Day
	 	 
	 

	 	 	 	Title: Chairman of the Board	 	 

 

 

 

SCHEDULE XX

Monthly Principal Payment Amount for Advance #1 (Commencing April ___, 2013):

Forty Six Thousand Four Hundred Twenty Eight Dollars and 57/100 ($46,428.57)

Monthly Principal Payment Amount for Advance #2 (Commencing April __, 2013):

Nineteen Thousand Forty Seven Dollars and 62/100 ($19,047.62)exv10w5wa

Exhibit 10.5(a)

June 1, 2010

AAA Capital Management Inc.

1300 Post Oak Blvd. #350

Houston, Texas 77056

Attention: Mr. Anthony Annunziato

     Re: Management Agreement Renewal

Dear Mr. Annunziato:

We are writing with respect to your management agreement concerning the commodity pools to which
reference is made below (the “Management Agreement”). We are extending the term of the Management
Agreement through June 30, 2011 and all other provisions of the Management Agreement will remain
unchanged.

	 	•	 	AAA Capital Energy Fund L.P.
	 
	 	•	 	AAA Capital Energy Fund L.P. II
	 
	 	•	 	AAA Master Fund LLC
	 
	 	•	 	Orion Futures Fund L.P.
	 
	 	•	 	Institutional Futures Portfolio L.P
	 
	 	•	 	Legion Strategies LLC
	 
	 	•	 	Energy Advisors Portfolio L.P.
	 
	 	•	 	Global Futures Fund LTD
	 
	 	•	 	Orion Futures Fund (Cayman) LTD.

Please acknowledge receipt of this modification by signing one copy of this letter and returning it
to the attention of Ms. Jennifer Magro at the address above or fax to 212-793-1986. If you have any
questions I can be reached at 212-559-5046.

Very truly yours,

CERES MANAGED FUTURES LLC

	 	 	 	 	 
	By:  	                     /s/ Jennifer Magro
 	 
	 	Jennifer Magro 	 
	 	Chief Financial Officer & Director 	 

	 	 	 	 	 
	AAA CAPITAL MANAGEMENT INC.

 	 
	By:  	/s/ Anthony Annunziato
 	 
	 	Print Name: Anthony Annunziato	 
	 
	JM/sr

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