Document:

reaffirmationandconfirmation.htm

SECOND REAFFIRMATION AND CONFIRMATION AGREEMENT

(Security Documents)

 

This Second Reaffirmation and Confirmation Agreement is made as of the 30th day of September, 2009 by COLOR EDGE LLC (f/k/a MCEI, LLC), a Delaware limited liability company (“MCEI”), COLOR EDGE VISUAL LLC (f/k/a MCEV, LLC), a Delaware limited liability company
(“MCEV”), and CRUSH CREATIVE LLC (f/k/a MCRU, LLC), a Delaware limited liability company (“MCRU”; each of MCEI, MCEV, and MCRU referred to as a “Borrower” and, collectively, as the “Borrowers”),
MERISEL, INC., a Delaware corporation (“Merisel”), MERISEL AMERICAS, INC., a Delaware corporation (“Merisel Americas”) and certain other affiliates of the Borrowers party hereto (“Subsidiary Guarantors”; each of Merisel, Merisel Americas and the Subsidiary Guarantors, a “Corporate
Guarantor” and, collectively, the “Corporate Guarantors”) in favor of AMALGAMATED BANK, a New York banking corporation, as lender for itself and other lenders party to the Credit Agreement referred to herein from time to time (“Lender”).

 

W I T N E S S E T H :

 

WHEREAS, the Borrowers, the lenders party thereto and the other parties thereto have previously entered into that certain Credit Agreement, dated as of March 1, 2005, as amended by Amendment No. 1 thereto, dated as of August 8, 2005, as further amended by Amendment No. 2 thereto,
dated as of February 27, 2008, and as further amended by Amendment No. 3 thereto, dated as of March 26, 2009 (as amended, supplemented or otherwise modified prior to the date hereof, the “Existing Credit Agreement”);

 

WHEREAS, the undersigned Loan Parties have previously entered into a Security Agreement, dated as of March 1, 2005, as amended as of August 8, 2005 (the “Security Agreement”) in favor of Lender pursuant to
the Existing Credit Agreement, granting a Lien on property of each such Person as collateral security for the payment and performance in full of all the Secured Obligations (as defined in the Security Agreement);

 

WHEREAS, the undersigned Loan Parties have also previously entered into certain other Security Documents (as defined in the Existing Credit Agreement) in favor of Lender to secure the obligations and liabilities of each Loan Party under the Loan Documents (as defined in the Existing
Credit Agreement);

 

WHEREAS, on the date hereof, the Borrowers, the Corporate Guarantors and the Lender are entering that certain Amended and Restated Credit Agreement, dated as of the date hereof (as may be amended, amended and restated, supplemented or modified from time to time, the “Amended
and Restated Credit Agreement”; capitalized terms used herein and not otherwise defined having the meanings assigned in the Amended and Restated Credit Agreement), to amend and restate the Existing Credit Agreement as set forth therein;

 

WHEREAS, as a condition to Lender’s agreement to enter Amended and Restated Credit Agreement, Lender requires each of the undersigned to execute and deliver this Second Reaffirmation and Confirmation Agreement;

 

 

 

 

NOW, THEREFORE, for due and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, it is agreed as follows:

 

1.           Each undersigned Loan Party represents and warrants that the recitals above are true and correct.

 

2.           Each undersigned Loan Party (i) acknowledges receipt of a copy of the Amended and Restated Credit Agreement; (ii) consents to the execution and delivery thereof by the other Loan Parties; (iii) agrees to be bound thereby; and (iv) affirms that nothing contained therein
shall modify in any respect whatsoever its guaranty of the obligations and liabilities of the Loan Parties to the Lender (the “Guarantee”).

 

3.           Each undersigned Loan Party acknowledges and agrees that, on and as of the date hereof, the Schedules to the Security Agreement attached hereto as Exhibit A shall replace in their entirety the Schedules to
the Security Agreement previously delivered.

 

4.           Each undersigned Loan Party hereby remakes the representations and warranties set forth in each Security Document (as defined in the Amended and Restated Credit Agreement) for the benefit of Lender as of the date hereof and confirms that the information in each such Security
Document (as supplemented hereby) remains true and correct as of the date hereof.

 

5.           Each undersigned Loan Party reaffirms the execution and delivery of the Security Agreement and each other Security Document (as defined in the Amended and Restated Credit Agreement), reaffirms the Guarantee and each such Security Document in its entirety, including its
obligations thereunder, and acknowledges and agrees that each of the Guarantee and other such Security Document is and shall continue to remain in full force and effect, and the security interest granted under the Security Agreement continues in effect as security for all obligations and liabilities under the Amended and Restated Credit Agreement, and each other such Security Document continues in effect to secure the obligations and liabilities of each Loan Party under the Loan Documents (as defined in the Amended
and Restated Credit Agreement).

 

Although each of the Loan Parties has been informed of the matters set forth herein and in Amended and Restated Credit Agreement and has acknowledged and agreed to same, such Loan Parties understand that the Lender has no obligation to inform any of the Loan Parties of such matters in the future or to seek any of the Loan Parties’
acknowledgment or agreement to future amendments, restatements, supplements, modifications or waivers, and nothing herein shall create such a duty.

This Second Reaffirmation and Confirmation Agreement shall be governed by and construed in accordance with the laws of the State of New York, without reference to principles of conflicts of law.

*           *           *           *           *

 

  

  

  

IN WITNESS WHEREOF, each of the undersigned has executed this Second Reaffirmation and Confirmation Agreement as of the date first above written.

 

MERISEL, INC.

MERISEL AMERICAS, INC.

By:      /s/ Victor L. Cisario                                                                         

Name: Victor L. Cisario

Title:   Chief Financial Officer

COLOR EDGE LLC

COLOR EDGE VISUAL LLC

COMP 24 LLC

CRUSH CREATIVE LLC

DENNIS CURTIN STUDIOS, LLC

MADP, LLC

FUEL DIGITAL, LLC

By: Merisel Americas, Inc., as sole Member of each of the above-named entities

By:      /s/ Victor L. Cisario                                                                                                                      

Name: Victor L. Cisario

Title:   Chief Financial Officer

ADVERTISING PROPS, INC.

By: MADP, LLC, as Sole Shareholder

By:      /s/ Victor L. Cisario                                                                                                                                

Name:  Victor L. Cisario

Title:    Chief Financial Officer

  

  

  

Acknowledged and agreed:

AMALGAMATED BANK, as Lender

By:       /s/ George Jarvis

Name:  George Jarvis

Title:    Executive Vice Presidentex101to8k05558_09302009.htm

Exhibit 10.1

 

FIRST AMENDMENT AND CLARIFICATION

TO

THE INVESTMENT AGREEMENT

This FIRST AMENDMENT AND CLARIFICATION to the INVESTMENT AGREEMENT (this “Amendment”) is entered into as of September 30, 2009, between Empire Resorts, Inc., a Delaware corporation (the “Company”), and
Kien Huat Realty III Limited, an Isle of Man corporation (the “Investor”).

 

WHEREAS, the parties entered into an Investment Agreement dated as of August 19, 2009 (the “Investment Agreement”);

 

WHEREAS, pursuant to Section 4.5 of the Investment Agreement, the Investor was granted certain matching rights with respect to options and warrants existing at the time of the Initial Closing and certain options and warrants issued by the Company before (and, in limited circumstances, after) the Closing;

 

WHEREAS, the parties acknowledge that the matching rights provided in Section 4.5 were intended to cover options and warrants that may be or may have been exercised between the Initial Closing and the Closing and that the language of the Investment Agreement may be read to suggest that is not the case; and

 

WHEREAS, the parties desire to amend the Investment Agreement to clarify the provisions of the Investment Agreement accordingly in accordance with the terms of this Amendment.

 

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged by the parties, the parties agree as follows:

 

1.           Except as otherwise specifically defined in this Amendment, capitalized terms used in this Amendment without definition shall have the meanings ascribed thereto in the Investment Agreement.

 

2.           The penultimate sentence of Section 4.5 of the Investment Agreement is deleted and replaced by the following:

 

“If at any time after the Initial Closing Date or Closing Date, as applicable, any of the options or warrants listed on the Option Schedule or Closing Date Option Schedule (or so deemed included), respectively, are exercised, the Company shall deliver to the Investor a written notice (each, an “Option
Exercise Notice”) of such exercise no more than five (5) business days after such exercise (and, if practicable, prior to the date of the consummation of such exercise), which Option Exercise Notice shall include information about the date of the exercise, the exercise price, the number of options or warrants exercised and the name of the option or warrant holder exercising such option or warrant, provided, that in the case of options
or warrants exercised following the Initial Closing Date but prior to the Closing Date, notice need not be given prior to the Closing Date and, in lieu thereof, the reconciled Closing Date Option Schedule shall serve as the Option Exercise Notice with respect to options or warrants exercised following the Initial Closing Date but prior to the Closing Date and shall include the information specified above.”

 

 

 

 

 

3.           Except as specifically stated above, the Investment Agreement is hereby ratified and confirmed and remains in full force and effect and is not modified or amended hereby and no rights or remedies thereunder are waived except as expressly provided herein.  To the
extent that the Investment Agreement or any of the documents and agreements attached as exhibits to the Investment Agreement, referred to therein or contemplated thereby refer to the Investment Agreement, such reference shall mean the Investment Agreement as amended hereby.  All references to “the date hereof” in the Investment Agreement shall continue to refer to the date of the Investment Agreement before any amendment, consent or waiver.

 

[The Next Page is the Signature Page]

 

 

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IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed by their respective officers thereunto duly authorized as of the date set forth in the initial caption of this Amendment.

 

	  	
EMPIRE RESORTS, INC.

	  	  
	  	  
	  	
By:
	

/s/ Joseph Bernstein

	  	  	
Name:
	
Joseph Bernstein

	  	  	
Title:
	
Chief Executive Officer

	  	
KIEN HUAT REALTY III LIMITED

	  	  
	  	  
	  	
By:
	

/s/ Gerard Lim

	  	  	
Name:
	
Gerard Lim

	  	  	
Title:
	
Authorized Signatory

 

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