Document:

Exhibit 4.1

AMENDMENT NUMBER 2
 TO THE INTERNATIONAL SMART SOURCING, INC.
 WARRANT AGREEMENT

          This Amendment, effective as of the 4th day of December, 2006 by and among International Smart Sourcing, Inc. formerly known as International Plastic Technologies, Inc. (the “Company”), Network 1 Financial Securities, Inc. (“Network 1 Financial” or “Representative”) and Continental Stock Transfer & Trust Company, as warrant agent (the “Warrant Agent”) (collectively, the “Parties”).

BACKGROUND

          WHEREAS, the Company, Representative, and Warrant Agent entered into a Warrant Agreement dated April 23, 1999, which agreement was subsequently amended (the “Agreement”), in connection with the sale of common stock purchase warrants (the “Warrants”) in the Company’s initial public offering of its common stock in 1999; and

          WHEREAS, each Warrant initially entitled the holder thereof to purchase one share of common stock at a price of $5.00 per Warrant; and 

          WHEREAS, under the terms of the Agreement, in order to adjust for dilution resulting from a private placement of securities, the total exercise price of each Warrant was reduced to $4.85 and the number of shares issuable upon the exercise of the Warrants was adjusted to 1.030928 shares per Warrant; and

          WHEREAS, as a result of a 400% stock dividend declared by the Company on December 10, 2004 to stockholders of record on December 1, 2004, each Warrant entitled the holder thereof to purchase for 5.1546378 shares of common stock at the total exercise price of $4.85 per Warrant (i.e., $0.97 per share of common stock); and

          WHEREAS, during the period commencing November 1, 2006 and terminating on November 30, 2006, the common stock of the Company traded within the range of $0.12-$0.16 per share of common stock, a price range substantially lower than the exercise price of the Warrants presently in effect; and

          WHEREAS, the Company has determined, after a review of recent and current market conditions and other factors, that it is in its best interest to reduce the total exercise price of each Warrant to $1.03092756 (i.e., $0.20 per share of common stock) in order increase the possibility that the Warrants will become more economically feasible to exercise at some future date;

          WHEREAS, the Company previously determined that it was in its best interest to extend the expiration date for its Warrants from April 23, 2005 to April 23, 2007; and

          WHEREAS, the Company has determined that it is in its best interest to further extend the expiration date for its common stock purchase warrants by three years, from August 23, 2007 until April 23, 2010; and

          WHEREAS, the Company desires to amend the Warrant Agreement pursuant to Section 19 thereof and has determined that such amendment will not materially adversely affect the interests of the holders of the Warrants;

          NOW, THEREFORE, the Parties hereto agree as follows:

          1.  Capitalized terms not defined herein shall have the respective meanings ascribed to them in the Agreement except to the extent modified below.

          2.  Section 2(b) of the Warrant Agreement is hereby amended to read in its entirety as follows:

                    (b)  Each Warrant shall entitle the registered holder thereof to purchase 5.1546378 shares of Common Stock at a purchase price of $1.03092756 (as adjusted as hereinafter provided, the “Exercise Price”), at any time during the ten-year period (the “Exercise Period”) commencing on April 23, 2000 (the one year anniversary of the date the Securities and Exchange Commission declared the Company’s registration statement on Form SB-2 (File No. 333-48701) (the “Registration Statement”) therein registering the Warrants and shares of Common Stock, including shares of Common Stock issuable upon the exercise of the Warrants, to be effective (the “Effective Date”)) and expiring 

at 5:00 p.m. New York City time, on April 23, 2010, the eleventh anniversary of the Effective Date (the “Expiration Date”).  The Exercise Price and the number of shares of Common Stock issuable upon exercise of the Warrants are subject to adjustment upon the occurrence of certain events, all as hereinafter provided.  The Warrants shall be executed in compliance with applicable state law on behalf of the Company by the manual or facsimile signature of the present or any future Chairman of the Board or Vice Chairman, Chief Executive Officer, President or Vice President of the Company, and attested to by the manual or facsimile signature of the present or any future Secretary, Treasurer, or Assistant Secretary or Assistant Treasurer of the Company, and shall have imprinted thereon a facsimile of the Company’s seal. 

          3.  Except as specifically amended above, the terms and conditions of the Agreement are hereby ratified and confirmed and remain in full force and effect.

          4.  This Amendment may be executed in any number of counterparts, each of which shall be an original, but all of which together shall constitute one and the same instrument.

          IN WITNESS WHEREOF, the undersigned have caused this Amendment to be duly executed and delivered on the date first above written.

	
  
 
  	
  
INTERNATIONAL SMART   SOURCING, INC.
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
By:
  	
  
/s/ David   Hale
  
	
   
  	
  
 
  	
  

  
	
  
 
  	
  
Name:
  	
  
David Hale
  
	
  
 
  	
  
Title:
  	
  
President
  
	
  
 
  	
  
 
  
	
  
 
  	
  
 
  
	
  
 
  	
  
CONTINENTAL STOCK   TRANSFER & TRUST COMPANY
  
	
  
 
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  
 
  
	
   
  	
  
By:
  	
  
/s/ William   F. Seegraber
  
	
  
 
  	
  
 
  	
  

  
	
  
 
  	
  
Name:
  	
  
 William F. Seegraber
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
 
  
	
  
 
  	
  
NETWORK 1 FINANCIAL   SECURITIES, INC.
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  
 
  
	
   
  	
  
By:
  	
  
/s/ Damon   Testaverde
  
	
  
 
  	
  
 
  	
  

  
	
  
 
  	
  
Name:
  	
  
Damon   Testaverde
  
	
  
 
  	
  
Title:
  	
  
Senior Vice   PresidentEXHIBIT 10.01

 

FIRST AMENDMENT

TO

3-YEAR REVOLVING CREDIT AGREEMENT

dated as of

November 30, 2006

among

 

VALERO GP HOLDINGS, LLC,

as Borrower,

 

JPMORGAN CHASE BANK, N.A.,

as Administrative Agent,

 

and

The Lenders Party Hereto

 

 

	
 

	
FIRST AMENDMENT TO 3-YEAR REVOLVING CREDIT AGREEMENT

 

THIS FIRST AMENDMENT TO 3-YEAR REVOLVING CREDIT AGREEMENT (this “First Amendment”) dated as of November 30, 2006, is among VALERO GP HOLDINGS, LLC, a Delaware limited liability company (the “Borrower”); JPMORGAN CHASE BANK, N.A., as administrative agent (in such capacity, together with its successors in such capacity, the “Administrative Agent”) for the lenders party to the Credit Agreement referred to below (collectively, the “Lenders”); and the undersigned Lenders.

R E C I T A L S

A.           The Borrower, the Administrative Agent and the Lenders are parties to that certain 3-Year Revolving Credit Agreement dated as of July 19, 2006 (the “Credit Agreement”), pursuant to which the Lenders have made certain extensions of credit available to the Borrower.

B.           The Borrower has requested and the Lenders have agreed to amend certain provisions of the Credit Agreement.

C.           NOW, THEREFORE, in consideration of the premises and the mutual covenants herein contained, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

Section 1.         Defined Terms. Each capitalized term used herein but not otherwise defined herein has the meaning given such term in the Credit Agreement. Unless otherwise indicated, all references to Sections in this First Amendment refer to Sections of the Credit Agreement.

	
 

	
Section 2.

	
Amendments to Credit Agreement.

	
 

	
2.1

	
Amendments to Section 1.01.

(a)          The definition of “Agreement” is hereby amended in its entirety to read as follows:

“Agreement” means this 3-Year Revolving Credit Agreement, as amended by the First Amendment, as the same may be amended, modified, supplemented or restated from time to time in accordance herewith.

(b)          The definition of “Consolidated Debt Coverage Ratio” is hereby amended in its entirety to read as follows:

“Consolidated Debt Coverage Ratio” means, for any day, the ratio of (a) all Indebtedness of the MLP and its subsidiaries (excluding the aggregate Hybrid Equity Credit for all Hybrid Equity Securities), on a consolidated basis, as of the last day of the then most recent Rolling Period over (b) Consolidated EBITDA of the MLP and its subsidiaries for such Rolling Period.

 

(c)          The following definitions are hereby added where alphabetically appropriate to read as follows:

“First Amendment” means the First Amendment to 3-Year Revolving Credit Agreement dated as of November 30, 2006 among the Borrower, the Administrative Agent and the Lenders party thereto.

“Hybrid Equity Credit” means, on any date, with respect to any Hybrid Equity Securities, the aggregate principal amount of such Hybrid Equity Securities that is treated as equity by S&P and Moody’s based on the classifications for such Hybrid Equity Securities issued by S&P and Moody’s; provided that if the classifications for such Hybrid Equity Securities issued by S&P and Moody’s are different, then the higher classification (i.e., the classification that provides for the most equity) will apply to determine the amount of “Hybrid Equity Credit” for such Hybrid Equity Securities. 

“Hybrid Equity Securities” means, on any date (the “determination date”), any securities issued by the MLP or any of its subsidiaries or a financing vehicle of the MLP or any of its subsidiaries, other than common stock, that meet the following criteria: (a) (i) the Borrower demonstrates that such securities are classified, at the time they are issued, as possessing a minimum of “intermediate equity content” by S&P and “Basket C equity credit” by Moody’s (or the equivalent classifications then in effect by such agencies) and (ii) on such determination date such securities are classified as possessing a minimum of “intermediate equity content” by S&P or “Basket C equity credit” by Moody’s (or the equivalent
classifications then in effect by such agencies) and (b) such securities require no repayments or prepayments and no mandatory redemptions or repurchases, in each case, prior to at least 91 days after the later of the termination of the Commitments and the repayment in full of the obligations of the Borrower hereunder. As used in this definition, “mandatory redemption” shall not include conversion of a security into common stock.

“Material Project EBITDA Adjustments” means, with respect to each Material Project, (a) for any Rolling Period ending on or prior to the last day of the fiscal quarter during which the Material Project is completed, a percentage (based on the then-current completion percentage of the Material Project) of an amount determined by the Borrower as the projected Consolidated EBITDA attributable to such Material Project and designated in a certificate of a Responsible Officer of the Borrower as described in the next sentence of this definition (such amount to be determined by the Borrower in good faith and in a commercially reasonable manner based on contracts relating to such Material Project, the creditworthiness of the other parties to such contracts and projected revenues from such contracts, capital costs and expenses,
scheduled completion, and other similar factors deemed appropriate by the Borrower) shall be added to actual Consolidated EBITDA for the MLP and its subsidiaries for the fiscal quarter in which construction of such Material Project commences and for each 

 

 

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fiscal quarter thereafter until completion of the Material Project (net of any actual Consolidated EBITDA attributable to such Material Project following its completion), provided that if construction of the Material Project is not completed by the scheduled completion date, then the foregoing amount shall be reduced by the following percentage amounts depending on the period of delay for completion (based on the period of actual delay or then-estimated delay, whichever is longer): (i) longer than 90 days, but not more than 180 days, 25%, (ii) longer than 180 days but not more than 270 days, 50%, and (iii) longer than 270 days, 100%; and (b) for each Rolling Period ending on the last day of the first, second and third fiscal quarters, respectively, immediately following the fiscal quarter during which the Material Project is completed, an amount equal to
the projected Consolidated EBITDA attributable to the Material Project for the period from but excluding the end of such Rolling Period through and including the last day of the fourth fiscal quarter following the fiscal quarter during which the Material Project is completed shall be added to Consolidated EBITDA for such Rolling Period (net of any actual Consolidated EBITDA attributable to the Material Project for the period from and including the date of completion through and including the last day of the fiscal quarter during which the Material Project is completed). Notwithstanding the foregoing, (i) no such additions shall be allowed with respect to any Material Project unless not later than 45 days prior to commencement of construction thereof, the Borrower shall have delivered to the Administrative Agent and the Lenders a certificate of a Responsible Officer of the Borrower certifying as to the amount determined by the Borrower as the projected Consolidated EBITDA attributable to such Material
Project, together with a reasonably detailed explanation of the basis therefor and such other information and documentation as the Administrative Agent or any Lender may reasonably request, such certificate, explanation and other information and documentation delivered by the Borrower shall be deemed in form and substance satisfactory to the Administrative Agent and the Required Lenders unless the Administrative Agent or the Required Lenders object thereto within 10 Business Days after receipt thereof, and (ii) the aggregate amount of all Material Project EBITDA Adjustments during any period shall be limited to 20% of the total actual Consolidated EBITDA of the MLP and its subsidiaries for such period (which total actual Consolidated EBITDA shall be determined without including any Material Project EBITDA Adjustments or any adjustments in respect of any acquisitions or dispositions as provided in the definition of Consolidated EBITDA).

2.2          Amendments to Section 2.02(c). Section 2.02(c) is hereby amended by changing the references to “$1,000,000” therein to “$500,000”.

Section 3.          Conditions Precedent. This First Amendment shall not become effective until the date on which each of the following conditions is satisfied (or waived in accordance with Section 10.02 of the Credit Agreement) (the “Effective Date”):

 

 

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3.1          The Administrative Agent and the Lenders shall have received all fees and other amounts due and payable, if any, in connection with this First Amendment on or prior to the Effective Date.

3.2          The Administrative Agent shall have received from the Required Lenders and the Borrower, counterparts (in such number as may be requested by the Administrative Agent) of this First Amendment signed on behalf of such Persons.

3.3          The Administrative Agent shall have received such other documents as the Administrative Agent or special counsel to the Administrative Agent may reasonably request.

3.4          No Default shall have occurred and be continuing, after giving effect to the terms of this First Amendment.

	
 

	
Section 4.

	
Miscellaneous.

4.1          Confirmation. The provisions of the Credit Agreement, as amended by this First Amendment, shall remain in full force and effect following the effectiveness of this First Amendment.

4.2          Ratification and Affirmation; Representations and Warranties. The Borrower hereby (a) acknowledges the terms of this First Amendment; (b) ratifies and affirms its obligations under, and acknowledges, renews and extends its continued liability under, each Loan Document to which it is a party and agrees that each Loan Document to which it is a party remains in full force and effect, except as expressly amended hereby, notwithstanding the amendments contained herein and (c) represents and warrants to the Lenders that as of the date hereof, after giving effect to the terms of this First Amendment: (i) all of the representations and warranties contained in each Loan Document to which it is a party are true and correct, unless such representations and warranties are stated to
relate to a specific earlier date, in which case, such representations and warranties shall continue to be true and correct as of such earlier date and (ii) no Default has occurred and is continuing. 

4.3          Loan Document. This First Amendment is a “Loan Document” as defined and described in the Credit Agreement and all of the terms and provisions of the Credit Agreement relating to Loan Documents shall apply hereto.

4.4          Counterparts. This First Amendment may be executed by one or more of the parties hereto in any number of separate counterparts, and all of such counterparts taken together shall be deemed to constitute one and the same instrument. Delivery of this First Amendment by facsimile transmission shall be effective as delivery of a manually executed counterpart hereof.

4.5          NO ORAL AGREEMENT. THIS FIRST AMENDMENT, THE CREDIT AGREEMENT AND THE OTHER LOAN DOCUMENTS EXECUTED IN CONNECTION HEREWITH AND THEREWITH REPRESENT THE FINAL AGREEMENT AMONG THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR UNWRITTEN ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO ORAL AGREEMENTS BETWEEN THE PARTIES.

 

 

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4.6          GOVERNING LAW. THIS FIRST AMENDMENT (INCLUDING, BUT NOT LIMITED TO, THE VALIDITY AND ENFORCEABILITY HEREOF) SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

 

	
 

	
[SIGNATURES BEGIN NEXT PAGE]

 

 

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IN WITNESS WHEREOF, the parties hereto have caused this First Amendment to be duly executed as of the date first written above.

 

	

 

	

VALERO GP HOLDINGS, LLC

 

 

	
 

	
By

	
/s/ Steven A. Blank

Steven A. Blank

	

 

	

Senior Vice President, Chief Financial Officer

	

 

	

and Treasurer

 

 

S-1

 

JPMORGAN CHASE BANK, N.A., individually and as Administrative Agent

 

	
 

	
By 

	
/s/ Robert W. Traband

Name: Robert W. Traband

Title: Vice President

 

S-2

 

	

 

	
 

	

                                      SUNTRUST BANK, individually and as Syndication Agent

 

	
 

	
By /s/ David Edge

Name: David Edge

Title: Managing Director

 

 

 

S-3

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