Document:

ex_135154.htm

Exhibit 10.1

 

AMENDMENT NO. 1 TO THE JUNIOR SECURED

CONVERTIBLE NOTE PURCHASE AGREEMENT

 

AMENDMENT NO. 1 TO THE JUNIOR SECURED CONVERTIBLE NOTE PURCHASE AGREEMENT, dated as of November 16, 2018 (this “Amendment”), to the Junior Secured Convertible Note Purchase Agreement, dated as of December 27, 2016 (as amended, supplemented or otherwise modified prior to the date hereof, the “NPA”), among DETERMINE, INC., a Delaware corporation (the “Company”), Lloyd I. Miller, III (Deceased), as Lenders’ Agent (“Lenders’ Agent”), MILFAM II L.P. (“Milfam”), and Alimco Financial Corporation (“Alimco”, and together with Milfam, the “Purchasers”).

 

WITNESSETH:

 

WHEREAS, pursuant to the NPA, the Purchasers have purchased, and the Company has issued certain promissory Notes (as defined in the NPA) to the Company;

 

WHEREAS, the Company has requested that the Purchasers purchase additional notes of the Borrower in an amount up to $3,000,000 and that certain other amendments be made to the NPA as set forth in Section 4 of this Amendment (the “Amendments”) (the NPA, after giving effect to the Amendments, the “Amended NPA”);

 

WHEREAS, the Company, Lenders’ Agent and the Purchasers are willing to agree to this Amendment and the Amended NPA on the terms set forth herein.

 

NOW THEREFORE, in consideration of the premises and mutual covenants hereinafter set forth, the parties hereto agree as follows:

 

SECTION 1.     Definitions. Unless otherwise defined herein, terms defined in the NPA and used herein shall have the meanings given to them in the NPA.

 

SECTION 2.     Amendment Effective Date. This Amendment shall become effective as of the date (the “Amendment Effective Date”) on which the following conditions have been satisfied (or waived pursuant to Section 7(e) of the NPA):

 

(a)     Lenders’ Agent shall have received counterparts to this Amendment, duly executed by the Company and the Purchasers;

 

(b)     (i) all of the representations and warranties made by the Company in the NPA shall be true and correct in all material respects on and as of the Amendment Effective Date to the same extent as though made on and as of such date, except to the extent such representations and warranties specifically relate to an earlier date, in which case such representations and warranties shall have been true and correct in all material respects on and as of such earlier date; and (ii) no Event of Default shall have occurred and be continuing at the time of, or after giving effect to, this Amendment on the Amendment Effective Date; and

 

(c)     the Lenders’ Agent shall have received a duly executed officer’s certificate from the Company certifying as to the satisfaction of the matters set forth in condition (b) above.

 

SECTION 3.     Amendment Fees. In consideration of the Amendment, the Company shall pay to the Purchasers, ratably in accordance with their pro rata shares set forth opposite their names on Schedule I of the Amended NPA:

 

 

 

 

(a)     On the date that the Purchasers make the first Advance (as defined in the Amended NPA) (the “First Fee Date”), a fee of $270,000 in the aggregate (“Amendment Fee No. 1”), payable in cash on the “Maturity Date” (as defined in each Additional Note) ratably between the Purchasers in accordance with the outstanding Advances made by them, provided that Amendment Fee No. 1 shall be fully earned and accrue, without interest, on the First Fee Date; and

 

(b)     On the date that the Purchasers make an Advance resulting in the aggregate outstanding principal amount of the Additional Notes exceeding $1,500,000 (the “Second Fee Date”), a fee of $270,000 in the aggregate (“Amendment Fee No. 2”), payable in cash upon the “Maturity Date” (as defined in each Additional Note) ratably between the Purchasers in accordance with the outstanding Advances made by them, provided that Amendment Fee No. 2 shall be fully earned and accrue, without interest, on the Second Fee Date.

 

(c) If the Supplemental Fee Trigger Event (as defined in Annex A hereto) occurs, the Company shall also pay to the Purchasers, ratably in accordance with the outstanding Advances made by them, the Supplemental Amendment Fee (as defined in Annex A hereto). The Supplemental Amendment Fee shall be fully earned, accrue, without interest, and payable immediately following the effectiveness of the deregistration of the Company’s Common Stock under the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder.

 

SECTION 4.     Representations and Warranties. The Company represents and warrants to each of the Purchasers and Lenders’ Agent that as of the Amendment Effective Date this Amendment has been duly authorized, executed and delivered by it and this Amendment and the NPA, as amended hereby, constitutes its valid and binding obligation, enforceable against it in accordance with its terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium or other laws affecting creditors’ rights generally and subject to general principles of equity, regardless of whether considered in a proceeding in equity or at law.

 

SECTION 5.     Amendment to NPA. Effective as of the Amendment Effective Date the NPA is hereby amended to delete the stricken text (indicated textually in the same manner as the following example: stricken text) and to add the double-underlined text (indicated textually in the same manner as the following example: double-underlined text) as set forth in the pages of the Amended NPA attached as Annex I hereto.

 

SECTION 6.     Effect of Amendment; Reaffirmation.

 

6.1.      Except as expressly set forth herein, this Amendment shall not by implication or otherwise limit, impair, constitute a waiver of or otherwise affect the rights and remedies of the Purchasers or Lenders’ Agent under the NPA or any other Loan Document, and shall not alter, modify, amend or in any way affect any of the terms, conditions, obligations, covenants or agreements contained in the NPA or any other provision of the NPA or of any other Loan Document, all of which are ratified and affirmed in all respects and shall continue in full force and effect. The Company reaffirms its Obligations under the Loan Documents to which it is a party and acknowledges and agrees that all of the Liens and security interests created and arising under any Loan Document remain in full force and effect and continue to secure its Obligations, in each case, unimpaired, uninterrupted and undischarged, regardless of the effectiveness of this Amendment. Nothing herein shall be deemed to entitle the Company to a consent to, or a waiver, amendment, modification or other change of, any of the terms, conditions, obligations, covenants or agreements contained in the NPA or any other Loan Document in similar or different circumstances. Nothing in this Amendment shall be deemed to be a novation of any Obligations under the NPA or any other Loan Document.

 

2

 

 

6.2.      On and after the Amendment Effective Date, each reference in the NPA to “this Agreement”, “hereunder”, “hereof”, “herein”, or words of like import, and each reference to the NPA in any other Loan Document shall be deemed a reference to the NPA as amended hereby. This Amendment shall constitute a “Loan Document” for all purposes of the Amended NPA and the other Loan Documents (as defined in the Amended NPA).

 

SECTION 7.     General.

 

7.1.      GOVERNING LAW. THIS AMENDMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES UNDER THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.

 

7.2.      Costs and Expenses. The Company agrees to reimburse the Lenders’ Agent for its reasonable and documented out-of-pocket expenses in connection with this Amendment, including the reasonable fees, charges and disbursements of counsel for the Lenders’ Agent within a reasonable time following the execution hereof.

 

7.3.      Counterparts. This Amendment may be executed by one or more of the parties to this Amendment on any number of separate counterparts, and all of said counterparts taken together shall be deemed to constitute one and the same instrument. Delivery of an executed signature page of this Amendment by email or facsimile transmission shall be effective as delivery of a manually executed counterpart hereof.

 

7.4.      Headings. The headings of this Amendment are used for convenience of reference only, are not part of this Amendment and shall not affect the construction of, or be taken into consideration in interpreting, this Amendment.

 

[remainder of page intentionally left blank]

 

3

 

 

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

 

	
			DETERMINE, INC.

			
	 
	 
	
			By:

				
			/s/ John Nolan

			
	 	Name:   John Nolan
	 	Title:     CFO

 

 

MILFAM II L.P., a Delaware limited partnership

 

By: MILFAM LLC

Its: General Partner

 

 

By:      /s/ Neil S. Subin                                

Name: Neil S. Subin

Title: Manager

 

 

 

ALIMCO FINANCIAL CORPORATION

 

 

By:      /s/ Alan B. Howe                                

Name: Alan B. Howe

Title: CEO

 

 

LENDERS’ AGENT

 

Lloyd I. Miller, III (Deceased)

 

 

By:     /s/ Neil S. Subin                                  

Name: Neil S. Subin

Title: Executor of the Estate of Lloyd I. Miller, III

 

[Signature Page to Amendment]

 

 

ANNEX A

 

“Supplemental Fee Trigger Event” shall mean the occurrence of a Change of Control (as defined in each Additional Note) pursuant to which all of the issued and outstanding shares of the Company’s common stock are purchased at a price per share in excess of $0.55 (such price, the “Sale Price”).

 

“Supplemental Amendment Fee” shall mean an additional fee in the amount equal to (i) One Million (1,000,000) multiplied by (ii) the difference between (x) the Sale Price and (y) $0.55.AGREEMENT
setting forth the terms and conditions upon which TIBER CREEK CORPORATION (“Tiber Creek”) is engaged by GLOBAL DIVERSIFIED
HOLDINGS, INC., together with any successors (collectively “Global Holdings”) to effect transactions (“the Transactions”)
intended to combine Global Holdings with a United States reporting company (“the Reporting Company”) and for related
matters.

 

1.
Services Provided.

 

Following
its engagement, Tiber Creek and its affiliates will:

 

1.
Discuss with Global Holdings the structure of the Transactions and actions to be taken by Global Holdings in preparation for the
completion of the Transactions;

 

2.
Transfer control of the Reporting Company to Global Holdings;

 

3.
Prepare the agreement for the acquisition of Global Holdings by the Reporting Company by merger, stock-for-stock exchange or stock-for-asset
exchange as directed by Global Holdings (“Business Combination Agreement”);

 

4.
Combine Global Holdings with the Reporting Company (“the Business Combination”)

 

5.
If requested, prepare an offering memorandum for a private placement of securities under Regulation D of the General Rules and
Regulations of the Securities and Exchange Commission;

 

6.
Prepare and file with the Securities and Exchange Commission Forms 8-K describing the change in control of the Reporting Company
and the Business Combination, as each occurs;

 

7.
Following the Business Combination, prepare and file with the Securities and Exchange Commission an appropriate form of registration
statement under the Securities Act of 1933 (“Registration Statement”) and all required amendments registering such
securities of the Reporting Company as Global Holdings shall designate;

 

8.
Recommend a market maker to file a Form 15c-211 for the quotation or listing of Global Holdings’s securities for public
trading on stock exchanges for which its securities are then eligible;

 

9.
Assist in establishing and maintaining relationships with market makers and broker-dealers.

 

10.
Take other actions it considers appropriate to completion of the Transactions as contemplated by this agreement.

 

2.
Business Combination.

 

1.
Tiber Creek will provide, at its expense, the Reporting Company, which will have audited financial statements showing no material
assets or liabilities, which will have registered its common stock under §12(g) of the Securities Exchange Act of 1934 (“the
1934 Act”), and which will be current in its reporting requirements under §13 of the 1934 Act.

 

    	 	 	 

    	Agreement with Tiber Creek Corporation
	Page Number 2

    

 

2.
The Reporting Company will have authorized capital of 100,000,000 shares of common stock, $.0001 par value per share, and 20,000,000
shares of preferred stock, $.0001 par value per share, of which 20,000,000 common shares have been issued. There will be no preferred
shares issued or outstanding and there are no outstanding warrants options or other rights that if exercised could results in
the issuance of additional shares of either common or preferred stock.

 

3.
Following the change in control of the Reporting Company there will be issued the amount of common stock and other securities
of the Reporting Company as shall be designated by Global Holdings. The officers and directors selected by Global Holdings will
become the officers and directors of the Reporting Company. The name of the Reporting Company following the change in control
will be chosen by Global Holdings.

 

4.
The existing shareholders of the Reporting Company will retain 500,000 common shares of the Reporting Company (“the Shareholder
Shares”). The remaining outstanding common shares will be returned to the Reporting Company. The Shareholder Shares shall
be included in the Registration Statement.

 

5.
The Reporting Company will not at any time take or allow any action (whether by reverse stock split or otherwise) which would
have the effect of reducing the absolute number of the Shareholder Shares.

 

6.
Nothing in this agreement shall prevent the Reporting Company from diluting the stock ownership of the existing shareholders by
issuing additional common stock to other persons at any time.

 

3.
Payments.

 

3.1.
In full satisfaction for the services of Tiber Creek and its affiliates in regard to the Transactions described in section 1 of
this agreement, Client, at its election, will pay to Tiber Creek the amount of $80,000 on execution of this agreement or $100,000
if paid by installments as provided herein.

 

3.2.
If paid by installments, Client shall pay $40,000 to Tiber Creek upon the execution of this agreement and $15,000 each thirty
days thereafter until paid in full. All payments will be deemed earned when paid or due to Tiber Creek and are non-refundable
except for cause.

 

4.
Expenses.

 

1.
Tiber Creek will bear its expenses incurred in regard to the Transactions, including, without limitation, travel, telephone, duplication
costs, and postage.

 

2.
Global Holdings will pay its own and third-party expenses (other than those of Tiber Creek) including, without limitation, Federal,
state and stock exchange filing fees, underwriting and market making costs, corporate financial relations, accounting fees, duplicating
costs and other expenses of the Reporting Company. Tiber Creek will not incur any expenses on behalf of the Reporting Company
unless permitted to do so in writing.

 

    	 	2	 

    	Agreement with Tiber Creek Corporation
	Page Number 3

    

 

5.
Affiliates.

 

1.
In order to better carry out the Transactions, Tiber Creek may assign the performance of all or parts of this agreement to one
or more of its affiliates or other persons, and pay such affiliates or other persons from the amounts received by Tiber Creek
under this agreement. An assignment will not relieve Tiber Creek of any of its obligations under this agreement.

 

2.
Certain of the Transactions will be handled by legal counsel retained by Tiber Creek. Tiber Creek will pay all fees and costs
of such legal counsel. This agreement does not create any attorney-Global Holdings relationship with Global Holdings or the Reporting
Company.

 

6.
Understandings of Global Holdings as a Reporting Company.

 

1.
Global Holdings agrees that it will timely take all steps necessary to complete the Transactions to include, without limitation,
causing audited financial statements to be prepared in proper form for Global Holdings; obtaining consents of the Board of Directors
and the shareholders of Global Holdings, as required; causing all necessary documents to be properly and timely prepared, executed,
approved or ratified, and filed, as appropriate; making timely and fully all required payments related to the registration and
listing of the Reporting Company’s securities for public trading, including filing fees; and timely taking all other actions
reasonably required of it to complete the Transactions.

 

2.
In the event that at any time prior to their completion Global Holdings determines not to continue with the Transactions Tiber
Creek hereby grants to Global Holdings the right to buyout the interest of Tiber Creek in this agreement on the terms contained
herein, in which case Tiber Creek agrees not to seek specific enforcement of this agreement. In the event that Global Holdings
elects not to continue with the Transactions (or if Global Holdings does not timely take all such steps and do all such things
as may be reasonably required of it to complete the Transactions) Tiber Creek will be entitled to (i) retain the securities in
Global Holdings acquired or to be acquired by Tiber Creek under this agreement as though the Business Combination had occurred
and (ii) receive in full all payments to be due to it or its affiliates through and upon completion of the Transactions as though
those events had occurred. Upon payment of the buyout fee provided for herein, all obligations of the parties under this agreement
will cease except for obligations which expressly or by their nature survive termination.

 

7.
Performance of Services by Others.

 

From
time to time, the achievement of certain results desired by the Reporting Company, including the promotion of interest in its
public securities, may be enhanced by the services of other parties. These parties may include consultants, advertising agencies,
financial analysts and similar persons who may, directly or indirectly, assist in creating interest in the Reporting Company’s
securities. All compensation, costs and expenses of such parties, if engaged by the Reporting Company, will be borne by it.

 

    	 	3	 

    	Agreement with Tiber Creek Corporation
	Page Number 4

    

 

8.
Actions and Understandings following the Business Combination.

 

1.
Global Holdings understands the obligations and responsibilities that will arise in regard to its becoming a reporting company
and the trading of its securities in the public market. Global Holdings understands that in order to achieve the greatest market
interest in its securities it, its officers and its directors, all or some, will be required to continuously interact with the
financial community. This interaction will include, without limitation, timely filing of reports under the Securities Exchange
Act of 1934, including audited financial statements; annual reports to shareholders and shareholder meetings; issuing periodic
press releases; and meetings and discussions with existing and prospective brokers, market makers, investment bankers and institutions.

 

2.
Global Holdings understands that the completion of the Transactions will not, in itself, result in capital investment in the Reporting
Company. The public status of the Reporting Company and its introduction to market makers and others in the financial community
may result in investment interest. However, investment interest will depend upon the success of the Reporting Company, market
conditions and other factors over which neither Tiber Creek nor its affiliates have any control.

 

3.
Global Holdings understands that the ultimate judgement of the financial community of the investment merits of the Reporting Company
will depend upon the Reporting Company’s ability to successfully carry out its business plans and operations, to operate
at a profit and similar business considerations. Global Holdings represents in good faith that it currently has no reason to believe
that it will not be able to complete the Transactions and to achieve its business objectives.

 

4.
Global Holdings understands that the first trading in the Reporting Company’s securities may be limited, and that to increase
the amount, depth and market price of its securities will require both time and effort by the Reporting Company to develop relations
with market makers and to create strong and stable trading of the Reporting Company’s securities.

 

9.
Compliance with Securities Law.

 

Under
the securities laws:

 

1.
Global Holdings and its affiliates will need to furnish all information and documents concerning it and its affiliates required
for the preparation and filing of the Registration Statement by the Reporting Company which information must be complete and accurate
and not contain any material misstatement or omit any material information.

 

2.
The Reporting Company must at all times observe and comply with Federal and state securities laws, rules and regulations incident
to the issuance and trading of its securities and must take all steps reasonably required within its control to prohibit any persons,
whether or not affiliated with the Reporting Company, from engaging in any transactions in contravention of such laws, rules and
regulations.

 

    	 	4	 

    	Agreement with Tiber Creek Corporation
	Page Number 5

    

 

3.
Global Holdings and its affiliates must not at any time knowingly engage in any activity which would constitute a prohibited market
manipulation of the securities of the Reporting Company and will need to take all steps reasonably required within its control
to prohibit any officer, director, other affiliate, agent or employee from engaging in such conduct.

 

4.
The Reporting Company should not issue any securities to any person for the promotion or maintenance of a trading market in the
Reporting Company’s securities without first receiving an opinion of qualified counsel that such issuance will be in accord
with securities laws, rules and regulations and should not, directly or indirectly, receive from such persons any capital by loan,
investment or otherwise resulting from the sale or pledge of such securities.

 

10.
Notices.

 

Any
notices required or permitted under this agreement shall be deemed to have been given when delivered in writing by hand, certified
mail (return receipt requested) or commercial courier, such as FedEx, to the following addresses or to such other addresses as
may have been given to each party in the manner provided for in this paragraph.

 

In
the case of Global Holdings to

 

Global
Diversified Holdings, Inc.

4042
Austin Boulevard

Suite
B

Island
Park, New York 11558

 

In
the case of Tiber Creek to

 

Tiber
Creek Corporation

9454
Wilshire Boulevard

Suite
612

Beverly
Hills, California 90212

 

11.
Disputes.

 

1.
Any disputes between the parties arising from this agreement, whether directly or indirectly, and based upon any cause or causes
of action, shall be decided by the American Arbitration Association within Los Angeles County, California or such other place
where Tiber Creek may then have its headquarters provided only that such place shall be within the United States. The parties
shall make claims only for the recovery or payment of compensation paid or due under this agreement and neither shall make any
claims for consequential or punitive damages, lost profits, damage to reputation or similar claims. Each party shall pay its own
costs of arbitration, including its attorneys’ fees. Any award or decision by the American Arbitration Association shall
be final, binding and non-appealable. The provisions of this paragraph shall survive the termination of this agreement for any
reason.

 

2.
This section shall apply to claims against any officer, director, agent or affiliate of either party provided only that such person
shall consent to the terms of arbitration contained herein.

 

    	 	5	 

    	Agreement with Tiber Creek Corporation
	Page Number 6

    

 

3.
If either party files any claim arising from this agreement in any forum except arbitration such action shall be dismissed with
prejudice upon application from the other party, which shall be entitled to recover its attorneys’ fees and costs in such
proceeding.

 

12.
Confidentiality.

 

As
a result of entering into this agreement the parties might have access to information which the parties regard as confidential
and proprietary. The parties agree that neither will, except as reasonably required pursuant to this agreement, use itself, or
divulge, furnish, or make accessible to any person any confidential knowledge, knowhow, techniques, or information with respect
to the other party unless agreed to in writing by that party.

 

13.
Termination.

 

1.
Tiber Creek may terminate this agreement at its election, without further obligation or liability, at any time (i) that Tiber
Creek has a reasonable basis to believe that any aspect of the Transactions would constitute a fraud or deception on the market
or (ii) that Global Holdings fails to meet its obligations under this agreement in a manner which would constitute a material
breach.

 

2.
Global Holdings may terminate this agreement at its election, without further obligation or liability, at any time that Tiber
Creek fails to meet its obligations under this agreement in a manner which would constitute a material breach.

 

3.
In the case of any claim of a material breach the party claimed against shall have 5 business days following notice of a claim
to begin to cure such breach unless such breach, by its nature, cannot be cured.

 

14.
Miscellaneous.

 

1.
Covenant of Further Assurances. The parties agree to take any further actions and
to execute any further documents which may from time to time be necessary or appropriate to carry out the purposes of this agreement.

 

2.
Scope of Agreement. This agreement constitutes the entire understanding of the parties.
No undertakings, warranties or representations have been made other than as contained herein, and no party shall assert otherwise.
This agreement may not be changed or amended orally.

 

3.
Currency. All references to currency in this agreement are to United States Dollars.

 

4.
Review of Agreement. Each party acknowledges that it has had time to review this
agreement and, as desired, consult with counsel. In the interpretation of this agreement, no adverse presumption shall be made
against any party on the basis that it has prepared, or participated in the preparation of, this agreement.

 

    	 	6	 

    	Agreement with Tiber Creek Corporation
	Page Number 7

    

 

5.
Ratification by the Reporting Company. The parties will cause the Reporting Company
to ratify and accept this agreement so that it constitutes a binding obligation between the Reporting Company and Tiber Creek
according to its terms.

 

15.
Effective Date.

 

The
effective date of this agreement is March 22, 2018.

 

IN
WITNESS WHEREOF, the parties have approved and executed this agreement.

 

	TIBER
    CREEK CORPORATION	 
	 	 
		 
	President	 
	 	 
	GLOBAL
    DIVERSIFIED HOLDINGS, INC.	 
	 	 
	 	 
	Authorized
    Signatory	 

 

    	 	7

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