Document:

exv10w4

 

Exhibit 10.4

AMENDMENT 2008-1

TO

EMPLOYMENT AGREEMENT

     THIS AMENDMENT 2008-1 (the “Amendment”), dated as of March 31, 2008, is entered into
between Health Benefits Direct Corporation, a Delaware corporation (the “Company”), and
Charles Eissa (the “Executive”).

RECITALS

     WHEREAS, the Company and the Executive previously entered into an Employment Agreement, dated
November 18, 2005 (the “Employment Agreement”);

     WHEREAS, the Company entered into a Securities Purchase Agreement, dated March 31, 2008, with
certain institutional and individual accredited investors, whereby the Company agreed to complete a
private placement (the “Private Placement”) of an aggregate of up to 7,500,000 shares of
the Company’s common stock and warrants to purchase 7,500,000 shares of the Company’s common stock;

     WHEREAS, in connection with the Private Placement, the Company and the Grantee agreed to amend
the Employment Agreement in certain respects and in consideration thereof, the Company agreed to
grant the Grantee a stock option under the Company’s 2008 Equity Compensation Plan to purchase
shares of common stock of the Company; and

     WHEREAS, pursuant to Section 10(c) of the Employment Agreement, the Company and the Executive
may amend the Employment Agreement pursuant to a written agreement executed by both parties.

     NOW, THEREFORE, the Company and the Executive hereby agree that, effective as of March 31,
2008, the Employment Agreement shall be amended as follows:

     1. The first sentence of Section 3 of the Employment Agreement is hereby amended in its
entirety to read as follows:

“The term of the Executive’s employment hereunder, unless sooner terminated as provided
herein (the “INITIAL TERM”), shall be for a period of one year commencing on March 31,
2008.”

     2. The first sentence of Section 4(a) of the Employment Agreement is hereby amended in its
entirety to read as follows:

“The Corporation shall pay the Executive as compensation for his services hereunder, in
equal semi-monthly or bi-weekly installments during the Term, the sum of $250,000 per annum
(the “BASE SALARY”), less such deductions as shall be required to be withheld by applicable
law and regulations.”

 

 

     3. In all respects not modified by this Amendment, the Employment Agreement is hereby ratified
and confirmed.

     IN WITNESS WHEREOF, the Company and the Executive agree to the terms of the foregoing
Amendment, effective as of the date set forth above

	 	 	 	 	 
	 	 	HEALTH BENEFITS DIRECT CORPORATION
	 

	 	 	 	 
	 

	 	By:	/s/ ALVIN H. CLEMENS 
	 

	 	 	 
	 

	 	Name:   	Alvin H. Clemens
	 

	 	Title:	Chief Executive Officer
	 

	 	 	 	 
	 	 	EXECUTIVE
	 

	 	/s/ CHARLES EISSA
	 	 	 
	 	 	Charles Eissa

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Exhibit 10.4

AMENDMENT No. 5 TO SECURED LOAN AGREEMENT

     AMENDMENT TO SECURED LOAN AGREEMENT (this “Amendment”) dated as of December 21, 2007 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. The parties hereto hereby agree, pursuant to Section
14.04 of the Secured Loan Agreement, to amend the Secured Loan Agreement as follows:

     (a) Subsections (a) and (b) of Section 2.11 shall be struck in their
entirety and replaced with:

(a) [Reserved].

(b) [Reserved].

 

 

          (b)
Subsection (jj) of Section 7.02 shall be struck in its entirety and replaced
with:

          “(jj) As of the last day of each fiscal quarter commencing March 31, 2007, LEAF shall
maintain “Adjusted Partner’s Capital” of no less than 75.00% of “partner’s equity” (as reflected
in its financial statements) as of August 15, 2004 (the last day of its offering period pursuant
to its Prospectus dated August 15, 2002) as reported in its September 2004 financial statements.”

     (c) The definitions of Expected Facility Termination Date, Maximum Facility
Amount and Senior Leverage Ratio in Appendix A shall be struck in their entirety and
replaced with:

     “Expected Facility Termination Date” means January
31, 2011.

     “Maximum Facility Amount” means $110,000,000.

          “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 and intercompany obligations, 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.

     (d) The effective date of this amendment shall be the date hereof.

     SECTION 3. 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

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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), 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 4. 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 5. 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 6. 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 7. 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 8. 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.

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     SECTION 9. 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 and COO 	 
	 
	        LEAF FINANCIAL CORPORATION, as Servicer

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

 
	 
	 	By:  	  /s/ Miles Herman
 	 
	 	 	Name:  	Miles Herman 	 
	 	 	Title:  	President and COO 	 

 

 

	 	 	 	 	 

	 	 	 	 	 
	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 Tallo
 	 
	 	 	Name:  	Matthew Tallo 	 
	 	 	Title:  	Director 	 
	 	 	 
	 	By:  	/s/ Vesselina Koleva
 	 
	 	 	Name:  	Vesselina Koleva   	 
	 	 	Title:  	Director

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