Document:

exv10w2

EXHIBIT 10.2 Securities Purchase Agreement between Fairford Scandinavia and the Company

SECURITIES PURCHASE AGREEMENT

     This Securities Purchase Agreement (this “Agreement”), dated April 14, 2008, is entered by and
between CTI Group (Holdings) Inc., a Delaware corporation (the “Company”), and Fairford Holdings
Scandinavia AB (the “Purchaser”).

     WHEREAS, the Purchaser secured the issuance of a $2.6 million letter of credit (the “Letter of
Credit”) from SEB to National City Bank, a national banking association (“National City Bank”),
with which the Company entered into the Loan Agreement (the “Loan Agreement”), dated as of December
22, 2006, related to the $2.6 million acquisition loan (the “Acquisition Loan”) and $8.0 million
revolving loan extended by the National City Bank to the Company;

     WHEREAS, due to Purchaser’s maintenance of the Letter of Credit for fiscal 2008, the Company
was able to continue to retain the Acquisition Loan at a favorable cash-backed interest rate; and

     WHEREAS, subject to the terms and conditions set forth in this Agreement and pursuant to
Section 4(2) of the Securities Act of 1933, as amended (the “Securities Act”), the Company desires
to issue and sell to the Purchaser, and the Purchaser desires to purchase from the Company,
securities of the Company as more fully described in this Agreement.

     NOW, THEREFORE, intending to be legally bound hereby and in consideration for securing the
issuance of the Letter of Credit, the mutual covenants contained in this Agreement and for other
good and valuable consideration the receipt and sufficiency of which are hereby acknowledged by the
parties hereto, the Company and the Purchaser agree as follows:

ARTICLE I

DEFINITIONS

     1.1 Definitions. In addition to the terms defined elsewhere in this Agreement, the
following terms have the meanings indicated in this Section 1.1:

     “Affiliate” shall mean any Person that, directly or indirectly through one or more
intermediaries, controls or is controlled by or is under common control with a Person, as such term
is used in and construed under Rule 144 under the Securities Act.

     “Closing” shall mean the closing of the purchase and sale of the Securities pursuant
to Section 2.1.

     “Closing Date” shall mean the Trading Day selected by the Company after all of the
conditions precedent to the Purchaser’s and the Company’s respective obligations set forth in
Section 2.3 have been satisfied or waived.

 

 

     “Common Stock” shall mean Class A common stock of the Company, par value $0.01 per
share, and any securities into which such Class A common stock may hereinafter be reclassified
into.

     “including” shall mean including, without limitation.

     “Person” shall mean an individual or corporation, partnership, trust, incorporated or
unincorporated association, joint venture, limited liability company, joint stock company,
government (or an agency or subdivision thereof) or other entity of any kind.

     “Rule 144” shall mean Rule 144 promulgated by the SEC pursuant to the Securities Act,
as such Rule may be amended from time to time, or any similar rule or regulation hereafter adopted
by the SEC having substantially the same effect as such Rule.

     “SEC” shall mean the U.S. Securities and Exchange Commission.

     “Securities” shall mean the Warrant and the Warrant Shares issuable under the
Transaction Documents.

     “Trading Day” shall mean a day during which trading in securities generally occurs on
an exchange or the OTC Bulletin Board on which shares of Common Stock are then listed or quoted, as
applicable.

     “Transaction Documents” shall mean this Agreement, the Warrant and any other documents
or agreements executed in connection with the transactions contemplated hereunder.

     “Warrant” shall mean the Class A Common Stock Purchase Warrant in the form of
Exhibit A attached hereto delivered to the Purchaser at the Closing in accordance with
Section 2.2(a). The Warrant shall represent the right to purchase 620,675 shares of Common Stock at
an exercise price of $0.22 per share, subject to adjustment.

     “Warrant Shares” shall mean the shares of Common Stock issuable upon the exercise of
the Warrant.

ARTICLE II

CLOSING

     2.1 Closing. On the Closing Date, upon the terms and subject to the conditions set
forth herein, the Company agrees to sell, and the Purchaser agrees to purchase the Warrant. The
Company shall deliver to the Purchaser the Warrant and the other items set forth in Section 2.2(a)
at the Closing. Upon satisfaction of the conditions set forth in Section 2.2, the Closing shall
occur at the offices of the Company, or such other location as the parties shall mutually agree.

     2.2 Deliveries.

 

 

          (a) On the Closing Date, the Company shall deliver or cause to be delivered to the Purchaser
the following:

               (i) this Agreement duly executed by the Company;

               (ii) the Warrant duly executed by the Company and registered in the name of the Purchaser in
the form of Exhibit A attached hereto; and

               (iii) the consent of National City Bank provided pursuant to Section 7.5 of the Loan
Agreement.

          (b) On the Closing Date, the Purchaser shall deliver or cause to be delivered to the Company
this Agreement duly executed by the Purchaser.

     2.3 Closing Conditions.

          (a) The obligations of the Company hereunder in connection with the Closing are subject to the
following conditions being met:

               (i) the accuracy in all material respects when made and on the Closing Date (except for
representations and warranties made as of a specific date, which must be accurate in all material
respects as of such date) of the representations and warranties of the Purchaser contained herein;

               (ii) all obligations, covenants and agreements of the Purchaser required to be performed at or
prior to the Closing Date shall have been performed; and

               (iii) the delivery by the Purchaser of the items set forth in Section 2.2(b) of this
Agreement.

          (b) The obligations of the Purchaser hereunder in connection with the Closing are subject to
the following conditions being met:

               (i) the accuracy in all material respects when made and on the Closing Date (except for
representations and warranties made as of a specific date, which must be accurate in all material
respects as of such date) of the representations and warranties of the Company contained herein;

               (ii) all obligations, covenants and agreements of the Company required to be performed at or
prior to the Closing Date shall have been performed; and

               (iii) the delivery by the Company of the items set forth in Section 2.2(a) of this Agreement.

ARTICLE III

 

 

REPRESENTATIONS AND WARRANTIES

     3.1 Representations and Warranties of the Company. The Company hereby represents and
warrants as of the date hereof to the Purchaser as follows:

          (a) Organization and Authority. The Company is an entity duly incorporated and in good
standing under the laws of the jurisdiction of its incorporation with the requisite power and
authority to enter into, and to consummate the transactions contemplated by, the Transaction
Documents and otherwise to carry out its obligations thereunder.

          (b) Enforcement. The execution, delivery and performance of the Transaction Documents
by the Company and the consummation by it of the transactions contemplated thereby have been duly
authorized by all necessary corporate action on the part of the Company and no further action is
required by the Company in connection therewith. This Agreement constitutes the valid and legally
binding obligation of the Company enforceable against the Company in accordance with its terms.

     3.2 Representations and Warranties of the Purchaser. The Purchaser hereby represents
and warrants as of the date hereof to the Company as follows:

          (a) Organization and Authority. The Purchaser is an entity duly organized, validly
existing and in good standing under the laws of the jurisdiction of its organization with the
requisite power and authority to enter into, and to consummate the transactions contemplated by,
the Transaction Documents and otherwise to carry out its obligations thereunder.

          (b) Enforcement. The execution, delivery and performance of the Transaction Documents
by the Purchaser and the consummation by it of the transactions contemplated thereby have been duly
authorized by all necessary corporate or similar action on the part of the Purchaser and no further
action is required by the Purchaser in connection therewith. This Agreement constitutes the valid
and legally binding obligation of the Purchaser enforceable against the Purchaser in accordance
with its terms.

          (c) Purchaser Representation. The Purchaser understands that the Securities are
“restricted securities” and have not been registered under the Securities Act or any applicable
state securities law and is acquiring the Securities as principal for its own account for
investment and not with a view to, or for sale in connection with, any distribution of such
Securities or any part thereof, has no present intention of distributing any of such Securities and
has no arrangement or understanding with any other persons regarding the distribution of such
Securities (this representation and warranty does not limit the Purchaser’s right to sell the
Securities in compliance with applicable federal and state securities laws). The Purchaser does not
have any agreement or understanding, directly or indirectly, with any Person to distribute any of
the Securities.

          (d) Experience of the Purchaser. The Purchaser, either alone or together with its
representatives, has such knowledge, sophistication and experience in business and financial
matters so as to be capable of evaluating the merits and risks of the prospective investment in the

 

 

Securities, and has so evaluated the merits and risks of such investment. The Purchaser is
able to bear the economic risk of an investment in the Securities, has no need for liquidity with
respect to its investment and is able to afford a complete loss of such investment.

          (e) General Solicitation. The Purchaser is not purchasing the Securities as a result
of any advertisement, article, notice or other communication regarding the Securities published in
any newspaper, magazine or similar media or broadcast over television or radio or presented at any
seminar or any other general solicitation or general advertisement.

          (f) Purchaser Investigation. The Purchaser has had the opportunity to request and
receive all information deemed necessary by it to evaluate an investment in the Company. The
Purchaser confirms that the Company has made available to the Purchaser the opportunity to ask
questions of, and receive answers from the Company concerning the terms and conditions of the
Securities and the business of the Company, and to obtain additional information or documents which
the Company possesses or can acquire without unreasonable effort or expense. In formulating the
decision to acquire the Securities, the Purchaser has relied solely upon its own advisors and its
own independent investigation of the Company with respect to this Agreement and the nature and
effect of any investment in the Securities as well as the representations and warranties of the
Company in Section 3.1.

          (g) Certain Fees. No brokerage or finder’s fees or commissions are or will be payable
to any broker, financial advisor or consultant, finder, placement agent, investment banker, bank or
other Person with respect to the transactions contemplated by this Agreement based upon
arrangements made by the Purchaser or any of its Affiliates. The Company shall have no obligation
with respect to any fees or with respect to any claims made by or on behalf of any Person for fees
of a type contemplated in this Section that may be due in connection with the transactions
contemplated by this Agreement based upon arrangements made by the Purchaser or any of its
Affiliates.

          (h) Exercise of the Warrant. As of the date hereof, and on each date on which the
Purchaser exercises the Warrant, the Purchaser’s representations and warranties in subsections
3.2(c) — (g) shall be accurate in all material respects.

     The Company acknowledges and agrees that the Purchaser does not make or has not made any
representations or warranties with respect to the transactions contemplated hereby other than those
specifically set forth in this Section 3.2.

ARTICLE IV

OTHER AGREEMENTS OF THE PARTIES

     4.1 Transfer Restrictions.

          (a) The Securities may only be disposed of in compliance with state and federal securities
laws. In connection with any transfer of the Securities other than pursuant to an effective
registration statement, the Company may require the Purchaser to provide to the

 

 

Company an opinion of counsel selected by the Purchaser and reasonably acceptable to the
Company, the form and substance of which opinion shall be reasonably satisfactory to the Company,
to the effect that such transfer does not require registration of such transferred Securities under
the Securities Act. As a condition of transfer, any such transferee shall agree in writing to be
bound by the terms of this Agreement and shall have the rights and obligations of the Purchaser
under this Agreement, provided that the foregoing shall not apply to a transfer of the Securities
pursuant to an effective registration statement.

          (b) The Purchaser agrees to the imprinting, so long as is required by applicable federal and
state securities laws, of a legend on any of the Securities in the following form:

     With respect to certificates representing Warrant Shares:

THESE SECURITIES HAVE NOT BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION, OR
THE SECURITIES COMMISSION OF ANY STATE, IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION
UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND APPLICABLE STATE
SECURITIES LAWS. IN ADDITION, THESE SECURITIES MAY BE DEEMED CONTROL SECURITIES WITHIN
THE MEANING OF THE SECURITIES ACT. THESE SECURITIES MAY NOT BE OFFERED OR SOLD OR
OTHERWISE TRANSFERRED EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE
SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT
SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH
APPLICABLE STATE SECURITIES LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE
TRANSFEROR TO SUCH EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE
COMPANY.

     With respect to the Warrant:

THE EXERCISE OF THIS WARRANT HAS NOT BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE
COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE. THIS WARRANT MAY ONLY BE EXERCISED
PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED
(THE “SECURITIES ACT”) AND APPLICABLE STATE SECURITIES LAWS. AS A CONDITION PRECEDENT TO
THE EXERCISE OF THIS WARRANT, THE COMPANY MAY REQUIRE SUCH CERTIFICATES AND OPINIONS OF
COUNSEL AS IT DEEMS NECESSARY FROM THE PERSON EXERCISING THIS WARRANT TO ESTABLISH THE
EXISTENCE OF SUCH EXEMPTIONS.

NEITHER THIS WARRANT NOR THE SECURITIES INTO WHICH THIS WARRANT IS EXERCISABLE HAVE BEEN
REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION, OR THE SECURITIES COMMISSION OF
ANY STATE, IN RELIANCE UPON AN EXEMPTION FROM

 

 

REGISTRATION UNDER THE SECURITIES ACT AND APPLICABLE STATE SECURITIES LAWS. IN ADDITION,
THIS WARRANT AND THE SECURITIES INTO WHICH THIS WARRANT IS EXERCISABLE MAY BE DEEMED
CONTROL SECURITIES WITHIN THE MEANING OF THE SECURITIES ACT. THE WARRANT OR THE
SECURITIES INTO WHICH THIS WARRANT IS EXERCISABLE MAY NOT BE OFFERED OR SOLD OR OTHERWISE
TRANSFERRED EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES
ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE
REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE
SECURITIES LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO SUCH
EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE COMPANY.

THIS WARRANT IS SUBJECT TO OTHER RESTRICTIONS ON TRANSFER AS SET FORTH IN THE SECURITIES
PURCHASE AGREEMENT, DATED April 14, 2008, A COPY OF WHICH IS AVAILABLE FROM THE COMPANY
UPON WRITTEN REQUEST AND WITHOUT CHARGE.

          (c) The Purchaser agrees that the removal of the restrictive legend from certificates
representing Securities as set forth in this Section 4.1 is predicated upon the Company’s reliance
that the Purchaser will sell or otherwise transfer any Securities pursuant to either the
registration requirements of the Securities Act, including any applicable prospectus delivery
requirements, or an exemption therefrom.

ARTICLE V

MISCELLANEOUS

     5.1 Fees and Expenses. Except as expressly set forth in the Transaction Documents to
the contrary, each party shall pay the fees and expenses of its advisers, counsel, accountants and
other experts, if any, and all other expenses incurred by such party incident to the negotiation,
preparation, execution, delivery and performance of this Agreement. The Company shall pay all
transfer agent fees, stamp taxes and other taxes and duties levied in connection with the issuance
of any Securities in the name of the Purchaser.

     5.2 Entire Agreement. The Transaction Documents, together with the exhibits and other
attachments thereto, contain the entire understanding of the parties with respect to the subject
matter hereof and supersede all prior agreements and understandings, oral or written, with respect
to such matters, which the parties acknowledge have been merged into such documents, exhibits and
attachments.

     5.3 Notices. Any and all notices or other communications or deliveries required or
permitted to be provided hereunder shall be in writing and shall be deemed given and effective on
the earliest of (a) the date of transmission, if such notice or communication is delivered via

 

 

facsimile at the facsimile number set forth on the signature page to this Agreement prior to
5:30 p.m. (Eastern Time) on a Trading Day, (b) the next Trading Day after the date of transmission,
if such notice or communication is delivered via facsimile at the facsimile number set forth on the
signature page to this Agreement on a day that is not a Trading Day or later than 5:30 p.m.
(Eastern Time) on any Trading Day, (c) the second Trading Day following the date of mailing, if
sent by U.S. nationally recognized overnight courier service, or (d) upon actual receipt by the
party to whom such notice is required to be given. The address for such notices and communications
shall be as set forth on the signature page to this Agreement.

     5.4 Amendments; Waivers. No provision of this Agreement may be waived or amended
except in a written instrument signed, in the case of an amendment, by the Company and the
Purchaser or, in the case of a waiver, by the party against whom enforcement of any such waiver is
sought. No waiver of any default with respect to any provision, condition or requirement of this
Agreement shall be deemed to be a continuing waiver in the future or a waiver of any subsequent
default or a waiver of any other provision, condition or requirement hereof, nor shall any delay or
omission of either party to exercise any right hereunder in any manner impair the exercise of any
such right.

     5.5 Construction. The headings herein are for convenience only, do not constitute a
part of this Agreement and shall not be deemed to limit or affect any of the provisions hereof. The
language used in this Agreement will be deemed to be the language chosen by the parties to express
their mutual intent, and no rules of strict construction will be applied against any party.

     5.6 Successors and Assigns. This Agreement shall be binding upon and inure to the
benefit of the parties hereto and their successors and permitted assigns. The Company may not
assign this Agreement or any rights or obligations hereunder without the prior written consent of
the Purchaser. The Purchaser may assign any or all of its rights under this Agreement to any Person
to whom the Purchaser assigns or transfers any Securities, provided such transferee agrees in
writing to be bound, with respect to the transferred Securities, by the provisions hereof that
apply to the “Purchaser.”

     5.7 No Third-Party Beneficiaries. This Agreement is intended for the benefit of the
parties hereto and their respective successors and permitted assigns and is not for the benefit of,
nor may any provision hereof be enforced by, any other Person.

     5.8 Governing Law. All questions concerning the construction, validity, enforcement
and interpretation of the Transaction Documents shall be governed by and construed and enforced in
accordance with the internal laws of the State of Delaware, without regard to the principles of
conflicts of law thereof. Each party agrees that all legal proceedings concerning the
interpretations, enforcement and defense of the transactions contemplated by this Agreement and any
other Transaction Documents (whether brought against a party hereto or its respective affiliates,
directors, officers, stockholders, employees or agents) shall be commenced exclusively in the state
and federal courts sitting in the State of Delaware. Each party hereby irrevocably submits to the
exclusive jurisdiction of the state and federal courts sitting in the State of Delaware for the
adjudication of any dispute hereunder or in connection herewith or with any transaction
contemplated hereby or discussed herein (including with respect to the enforcement

 

 

of any of the Transaction Documents), and hereby irrevocably waives, and agrees not to assert
in any suit, action or proceeding, any claim that it is not personally subject to the jurisdiction
of any such court, that such suit, action or proceeding is improper or inconvenient venue for such
proceeding. Each party hereby irrevocably waives personal service of process and consents to
process being served in any such suit, action or proceeding by mailing a copy thereof via
registered or certified mail or overnight delivery (with evidence of delivery) to such party at the
address in effect for notices to it under this Agreement and agrees that such service shall
constitute good and sufficient service of process and notice thereof. Nothing contained herein
shall be deemed to limit in any way any right to serve process in any manner permitted by law. The
parties hereby waive all rights to a trial by jury. If either party shall commence an action or
proceeding to enforce any provisions of the Transaction Documents, then the prevailing party in
such action or proceeding shall be reimbursed by the other party for its attorneys’ fees and other
costs and expenses incurred with the investigation, preparation and prosecution of such action or
proceeding.

     5.9 Survival. The representations and warranties contained herein shall survive the
Closing and the delivery of the Securities, as applicable, for a period of two years.

     5.10 Execution. This Agreement may be executed in two or more counterparts, all of
which when taken together shall be considered one and the same agreement and shall become effective
when counterparts have been signed by each party and delivered to the other party, it being
understood that both parties need not sign the same counterpart. In the event that any signature is
delivered by facsimile transmission, such signature shall create a valid and binding obligation of
the party executing (or on whose behalf such signature is executed) with the same force and effect
as if such facsimile signature page were an original thereof.

     5.11 Severability. If any provision of this Agreement is held to be invalid or
unenforceable in any respect, the validity and enforceability of the remaining terms and provisions
of this Agreement shall not in any way be affected or impaired thereby and the parties will attempt
to agree upon a valid and enforceable provision that is a reasonable substitute therefor, and upon
so agreeing, shall incorporate such substitute provision in this Agreement.

     5.12 Replacement of Securities. If any certificate or instrument evidencing any
Securities is mutilated, lost, stolen or destroyed, the Company shall issue or cause to be issued
in exchange and substitution for and upon cancellation thereof, or in lieu of and substitution
therefor, a new certificate or instrument, but only upon receipt of evidence reasonably
satisfactory to the Company of such mutilation, loss, theft or destruction and customary and
reasonable indemnity, if requested. The applicants for a new certificate or instrument under such
circumstances shall also pay any reasonable third-party costs associated with the issuance of such
replacement Securities.

     5.13 Remedies. In addition to being entitled to exercise all rights provided herein or
granted by law, including recovery of damages, the Purchaser and the Company will be entitled to
specific performance under the Transaction Documents. The parties agree that monetary damages may
not be adequate compensation for any loss incurred by reason of any breach of

 

 

obligations described in the foregoing sentence and hereby agree to waive in any action for
specific performance of any such obligation the defense that a remedy at law would be adequate.

[SIGNATURE PAGE FOLLOWS]

     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed by their
respective authorized signatories as of the date first indicated above.

Dated: April 14, 2008

	 	 	 	 	 	 	 	 	 
	CTI GROUP (HOLDINGS) INC.	 	 	 	Address for Notice:
	 
	 	 	 	 	 	 	 	 
	By:	 	/s/ John Birbeck	 	 	 	333 North Alabama Street, Suite 240
	 	 	 	 	 	 	 
	 

	 	Name:
	 	John Birbeck
	 	 	 	Indianapolis, Indiana 46204
	 

	 	Title:
	 	CEO
	 	 	 	Fax No.: 317-262-4513
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	With a copy to (which shall not constitute notice):
	 

	 	 	 	 	 	 	 	Blank Rome LLP
	 

	 	 	 	 	 	 	 	One Logan Square
	 

	 	 	 	 	 	 	 	Philadelphia, PA 19103
	 

	 	 	 	 	 	 	 	Attn: Alan H. Lieblich, Esq.
	 
	 	 	 	 	 	 	 	 
	FAIRFORD HOLDINGS LIMITED	 	 	 	Address for Notice:
	 
	 	 	 	 	 	 	 	 
	By:	 	/s/ Bengt Dahl	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	Name:
	 	Bengt Dahl
	 	 	 	Box 40, 831 21 Östersund, Sweden
	 

	 	Title:
	 	Director
	 	 	 	Fax No.: 46 63 13 38 25

NOTICE OF EXERCISE FORM

 

 

     TO: CTI GROUP (HOLDINGS) INC.

     (1) The
undersigned hereby elects to exercise this Warrant with respect to _________ Warrant
Shares of the Company pursuant to the terms of the enclosed Warrant and tenders herewith payment of
the Exercise Price in full, together with all applicable transfer taxes, if any.

     (2) Payment shall take the form of (check applicable box):

	 	 	 
	o	 	Cash Exercise in lawful money of the United States pursuant to Section 2(c)(i)
of the Warrant; or
	 
	o	 	Cashless Exercise — the cancellation of such number of Warrant Shares as is
necessary, in accordance with the formula set forth in Section 2(c)(ii), to exercise
this Warrant with respect to the maximum number of Warrant Shares purchasable
pursuant to the Cashless Exercise procedure set forth in Section 2(c)(ii). [Note:
Use of the Cashless Exercise method will result in the issuance of a number of
Warrant Shares that is less than the number of Warrant Shares indicated in paragraph
(1) above)

     (3) Please issue a certificate or certificates representing said Warrant Shares in the name of
the undersigned or in such other name as is specified below:

 

     Note: If issued in the name of a Person other than the Holder, additional documentation may be
required by the Company as specified in the Warrant to assure compliance with federal and state
securities laws.

     Warrant Shares shall be delivered to the following:

 

 

 

     (4) The undersigned has not previously sold, transferred or assigned this Warrant.

	 	 	 	 	 	 	 
	Name of Holder
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

Signature of Authorized Signatory

	 	 
	 	 

Signature of Holder
	 	 
	 
	 	 	 	 	 	 
	 

Name of Authorized Signatory:

	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 
	 

Title of Authorized Signatory:

	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 
	Date:  

	 	 	 	 	 	 

 

 

ASSIGNMENT FORM

(To assign the Warrant, execute

this form and supply required information.

Do not use this form to exercise the Warrant.)

     FOR
VALUE RECEIVED, the foregoing Warrant and all rights evidenced
thereby are hereby assigned
to 

whose address is

.
 

Dated:                     

	 	 	 
	 

	 	Holder’s
	 

	 	Signature:  

Holder’s Address:

 

 

     NOTE: The signature to this Assignment Form must correspond with the name as it appears on the
face of the Warrant, without alteration or enlargement or any change whatsoever, and must be
guaranteed by a bank or trust company. Officers of corporations and those acting in a fiduciary or
other representative capacity should file proper evidence of authority to assign the foregoing
Warrant. Additional documentation may be required by the Company as specified in the Warrant to
assure compliance with federal and state securities laws.exv10w1

Exhibit 10.1

AMENDMENT No. 7 TO SECURED LOAN AGREEMENT

     AMENDMENT TO SECURED LOAN AGREEMENT (this “Amendment”) dated as of June 1, 2008 among WESTLB
AG, NEW YORK BRANCH (the “Lender”), U.S. BANK NATIONAL ASSOCIATION, a national banking
association (the “Collateral Agent” and “Securities Intermediary”), LEASE EQUITY
APPRECIATION FUND I, L.P., a Delaware limited partnership (“LEAF” or the “Seller”),
LEAF FINANCIAL CORPORATION, a Delaware corporation (the “Servicer”), LEAF FUNDING INC., a
Delaware corporation (the “Originator”) and LEAF FUND I, LLC, a Delaware limited liability
company (the “Borrower”).

W I T N E S S E T H:

     WHEREAS, the parties hereto are parties to the Secured Loan Agreement, dated as of December
31, 2004 (as modified, amended or supplemented from time to time, the “Secured Loan
Agreement”);

     WHEREAS, pursuant to Section 14.04 of the Secured Loan Agreement, the parties hereto wish to
amend the Secured Loan Agreement and hereby agree that the Secured Loan Agreement is hereby
amended; and

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

     SECTION 1. Definitions. 

     (a) Whenever used in this Amendment, capitalized terms used and not otherwise defined
herein shall have the meanings set forth in Appendix A to the Secured Loan Agreement.

     (b) Any term that relates to a document or a statute, rule, or regulation includes any
amendments, modifications, supplements, or any other changes that may have occurred since
the document, statute, rule, or regulation came into being, including changes that occur
after the date of this Amendment.

     SECTION 2. Amendments.

     (a) The definition of Senior Leverage Ratio in Appendix A shall be struck in its
entirety and replaced with:

          “Senior Leverage Ratio” means, with respect to LEAF, the result obtained by
dividing LEAF’s Combined Recourse Debt by LEAF’s Adjusted Partner’s Capital. For such
determination, “Combined Recourse Debt” means all of LEAF’s debts and liabilities, but
excluding third party accounts payable, accrued expenses, non-recourse debt, SFAS 133/138
adjustments (if any), and intercompany obligations less applicable

 

 

cash then on the deposit in the “Lockbox Account”, and “Adjusted Partner’s Capital”
means partner’s capital (in accordance with GAAP with no adjustment for other comprehensive
income accounted for pursuant to SFAS 133/138) plus “Due to General Partner” plus
subordinated debt, if any. For such determination (including Section 7.02(jj)), “Due to
General Partner” means amounts, as set forth in the financial statements of LEAF, that are
due to LEAF Financial Corporation and its affiliates, as general partner of LEAF, for
management fees and expenses due for servicing the Securitized Portfolio in addition to
amounts LEAF Financial Corporation has paid for property taxes due on the Securitized
Portfolio that have been billed to Customers.

     (b) The definition of Facility Termination Event shall be amended in that clause (x)
of such definition shall be struck in its entirety and replaced with:

          (x) LEAF shall have failed to maintain a Senior Leverage Ratio no greater
than 8.0:1.0,

     SECTION 3. Effective Date. The effective date of this Amendment shall be the date
hereof.

     SECTION 4. Representations and Warranties.

     Borrower, LEAF and Servicer each hereby severally certifies as to itself that its respective
representations and warranties set forth in Article VI of the Secured Loan Agreement (and any other
representations and warranties made by Borrower, LEAF or Servicer in the Secured Loan Agreement)
are true and correct on the date hereof with the same force and effect as if made on the date
hereof, except to the extent such representations and warranties speak specifically to an earlier
date in which case they shall have been true and correct on such date. In addition, Borrower, LEAF
and Servicer each severally represents and warrants (which representations and warranties shall
survive the execution and delivery hereof) that (a) no unwaived Facility Termination Event or Event
of Default (nor any event that but for notice or lapse of time or both would constitute an unwaived
Facility Termination Event or Event of Default) shall have occurred and be continuing as of the
date hereof nor shall any unwaived Facility Termination Event or Event of Default (nor any event
that but for notice or lapse of time or both would constitute an unwaived Facility Termination
Event or Event of Default) occur due to this Amendment becoming effective, (b) Borrower, LEAF and
Servicer each has the power and authority to execute and deliver this Amendment and has taken or
caused to be taken all necessary actions to authorize the execution and delivery of this Amendment,
(c) no consent of any other person (including, without limitation, members or creditors of
Borrower, LEAF or Servicer), and no action of, or filing with any governmental or public body or
authority is required to authorize, or is otherwise required in connection with the execution and
performance of this Amendment, other than such that have been obtained, (d) the Secured Loan
Agreement, as amended by this Amendment, constitutes the legal, valid and binding obligation of
Servicer, LEAF and the Borrower, enforceable against them in accordance with its terms except as
the enforceability thereof may be limited by bankruptcy, insolvency, moratorium, reorganization and
other similar laws of general application affecting creditors’ rights generally and by general
principles of equity (whether such enforceability is considered in a proceeding in equity or law),

2

 

and (e) the execution, delivery and performance of this Amendment will not violate any
provision of any existing law or regulation or any order or decree of any court, regulatory body or
administrative agency or the certificate of formation or the limited liability company agreement of
Servicer, LEAF or Borrower or any material indenture, agreement, mortgage, deed of trust or other
instrument to which Servicer, LEAF or the Borrower is a party or by which it is bound.

     SECTION 5. Ratification. Upon execution of this Amendment, the Secured Loan Agreement
shall be amended in accordance herewith, and the respective rights, limitations, obligations,
duties, liabilities and immunities of the parties shall hereafter be determined, exercised and
enforced subject in all respects to such amendments, and the terms of this Amendment shall be a
part of the Secured Loan Agreement for any and all purposes. Except as modified and expressly
amended by this Amendment, the Amendment is in all respects ratified and confirmed, and all the
terms, provisions and conditions thereof shall be and remain in full force and effect.

     SECTION 6. GOVERNING LAW. THIS AGREEMENT SHALL, IN ACCORDANCE WITH SECTION 5-1401 OF
THE GENERAL OBLIGATIONS LAW OF THE STATE OF NEW YORK, BE GOVERNED BY THE INTERNAL LAWS OF THE STATE
OF NEW YORK, WITHOUT REGARD TO ANY CONFLICTS OF LAW PRINCIPLES THEREOF.

     SECTION 7. Counterparts. For the purpose of facilitating the execution of this
Amendment and for other purposes, this Amendment may be executed simultaneously in any number of
counterparts, each of which shall be deemed to be an original and together shall constitute and be
one and the same instrument.

     SECTION 8. Severability of Provisions. If any one or more of the provisions or terms
of this Amendment shall be for any reason whatsoever held invalid, then such provisions or terms
shall be deemed severable from the remaining provisions or terms of this Amendment and shall in no
way affect the validity or enforceability of the other provisions or terms of this Amendment.

     SECTION 9. Amendment. This Amendment may be amended or modified from time to time by
the parties hereto, but only by an instrument in writing signed by each of the parties hereto.

     SECTION 10. Headings. The Section headings are not part of this Amendment and shall
not be used in its interpretation.

[REMAINDER OF PAGE IS INTENTIONALLY LEFT BLANK]

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     IN WITNESS WHEREOF, the parties hereto have executed this Amendment as of the day and year
first above written.

	 	 	 	 	 
	 	LEAF FUND I, LLC,

     as Borrower

 	 
	 	By:  	s/ Miles Herman
 	 
	 	 	Name:  	Miles Herman 	 
	 	 	Title:  	Vice President 	 
	 
	 	LEASE EQUITY APPRECIATION FUND
I,
L.P., as Seller
 	 
	 	By:  	LEAF FINANCIAL CORPORATION,
as General Partner
 	 
	 	 	 
	 	By:  	                                                  /s/ Miles Herman
 	 
	 	 	Name:  	Miles Herman 	 
	 	 	Title:  	President, COO 	 
	 
	 	LEAF FINANCIAL CORPORATION, as
Servicer

 	 
	 	By:  	/s/ Miles Herman
 	 
	 	 	Name:  	Miles Herman 	 
	 	 	Title:  	President, COO 	 
	 
	 	LEAF FUNDING INC., as Originator

 	 
	 	By:  	: /s/ Miles Herman
 	 
	 	 	Name:  	Miles Herman 	 
	 	 	Title:  	Senior Vice President 	 

1

 

	 	 	 	 	 
	 	U.S. BANK NATIONAL ASSOCIATION, as

Collateral Agent and Securities Intermediary

 	 
	 	By:  	/s/ Diane L. Reynolds
 	 
	 	 	Name:  	Diane L. Reynolds 	 
	 	 	Title:  	Vice President 	 
	 
	 	WESTLB AG, NEW YORK BRANCH, as Lender

 	 
	 	By:  	/s/ Matthew F. Tallo
 	 
	 	 	Name:  	Matthew F. Tallo 	 
	 	 	Title:  	Executive Director 	 
	 
	 	 	 
	 	By:  	                                               /s/ Vesselina Koleva
 	 
	 	 	Name:  	Vesselina Koleva 	 
	 	 	Title:  	Director

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