Document:

Unassociated Document

     

    
      FIRST
AMENDMENT TO

       

      $4,000,000
DEBENTURE DATED JUNE 18, 2009

       

      ISSUED
BY

       

      DRINKS
AMERICAS HOLDINGS, INC.

       

      This First Amendment (this “Amendment”) to that
certain Debenture dated June 18, 2009 in the principal amount of $4,000,000 and
issued by Drinks Americas Holdings LTD., a Delaware corporation (the “Borrower”) in favor
of St. George Investments, LLC (the “Lender”), is made and
entered into between Borrower and Lender this 28th day of August,
2009.

       

      WHEREAS, Borrower and Lender entered
into that certain Default Waiver to Debenture Dated June 18, 2009 (the “Default Waiver”) on
July 30, 2009 to remove Borrower’s default under certain provisions of the
Debenture and to modify the agreement among the parties according to the terms
of the Default Waiver; and

       

      WHEREAS, Borrower desires that Lender
prepay a $200,000 portion (the “Prepayment”) of that certain St. George 7 Month
Secured Purchase Note dated June 18, 2009 in the principle amount of $250,000
and issued by Lender in favor of Borrower (the “Purchase Note”);
and

       

      WHEREAS, Borrower certifies that the
representations and warranties in the Debenture and associated final documents
(including, without limitation, that certain Securities Purchase Agreement of
even date therewith) remain true and accurate in all material respects as of the
date hereof, and that other than the events of default described in the Default
Waiver, Borrower has not breached any covenant, promise or obligation in the
Debenture, the Securities Purchase Agreement or associated final documents or
the Default Waiver.

       

      NOW
THEREFORE, the parties agree and the Debenture is hereby amended as
follows:

       

      1.  Definitions and
Recitals.  Capitalized terms used in this Amendment but not
otherwise defined have the respective meanings set forth in the
Debenture.  The recitals set forth above are incorporated in this
Amendment by reference and made contractual in nature.

       

      2.  Prepayment.  Borrower
acknowledges the current outstanding balance of the Purchase Note is hereby
reduced by $200,000 upon receipt by Borrower of the Prepayment.

       

      3.  Debenture
Balance.  The outstanding balance under the Debenture shall be
increased from $3,817,667.14 as of August 26, 2009 to
$4,217,667.14.

       

      4.  Interest
Rate.  Beginning August 26, 2009 and through the Maturity Date
(as defined in the debenture), the Debenture shall carry an interest rate on the
full outstanding balance equal to one percent (1.0%) per month, compounded
daily, which interest shall accrue until satisfied under the terms of the
Transaction Documents (for the avoidance of doubt, the interest rate is in
addition to the original issue discount set forth in the
Debenture).

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      5.  No Additional Default
Interest.  In the event of an occurrence of a Trigger Event
after the date of this Amendment, Lenders rights and remedies in Section 7(i)
(increase of 110% of the Debenture balance) and Section 7(ii) (12% default
interest) shall not apply; provided, however, that all of Lender’s other rights
and remedies shall remain unchanged.

       

      6.  Other Terms
Unchanged.  The Debenture, as amended by this Amendment,
remains and continues in full force and effect, constitutes a legal, valid, and
binding obligation of the Company, and is in all respects agreed to, ratified,
and confirmed. Any reference to the Debenture after the date of this Amendment
is deemed to be a reference to the Debenture as amended by this
Amendment.  If there is a conflict between the terms of this Amendment
and the Debenture, the terms of this Amendment shall control.

       

      7.  Headings.  The
headings contained in this Amendment are for reference purposes only and do not
affect in any way the meaning or interpretation of this Amendment.

       

      8.  Governing
Law.  This Agreement shall be governed and construed under the
laws of the State of Illinois, without regard to conflicts of laws
principles.  The Company hereby consents to the jurisdiction of any
competent court within the State of Illinois and consents to service of process
by any means authorized by Illinois law in any action brought under or arising
out of this Amendment.

       

      9.  Counterparts.  This
Amendment may be executed in any number of counterparts with the same effect as
if all signing parties had signed the same document.  All counterparts
shall be construed together and constitute the same instrument.  The
exchange of copies of this Amendment and of signature pages by facsimile
transmission or other electronic transmission (including email) shall constitute
effective execution and delivery of this Amendment as to the parties and may be
used in lieu of the original Amendment for all purposes.  Signatures
of the parties transmitted by facsimile transmission or other electronic
transmission (including email) shall be deemed to be their original signatures
for all purposes.

       

      

       

      [Remainder
of page intentionally left blank.]

       

       

      
        
           

        

        
          2

          
            

          

        

        
           

        

      

       

      IN
WITNESS WHEREOF, the undersigned have executed and delivered this First
Amendment to the Debenture made by Drinks Americas Holdings, Ltd. effective as
of the day first set forth above.

       

      

       

      
        
          	 
      	
                  DRINKS
      AMERICAS HOLDINGS, LTD.

                
	 
      	 
      
	 
      	 
      
	 
      	
                  By:  ________________________________

                
	 
      	
                  Its:  ________________________________

                
	 
      	 
      
	 
      	 
      
	 
      	 
      
	 
      	 
      
	
                  ACKNOWLEDGED
      AND AGREED:

                	 
      
	 
      	 
      
	
                  ST.
      GEORGE INVESTMENTS, LLC

                	 
      
	 
      	 
      
	
                  By:  _____________________________

                	 
      
	
                  Its:  _____________________________

                	 
      

        

      

       

       

      
        
           

        

        
          3Unassociated Document

     

    
      FIRST
AMENDMENT AND JOINDER TO

       

      PLEDGE
AGREEMENT

       

      This First Amendment and Joinder (this
“Amendment”) to
that certain Pledge Agreement dated June 18, 2009 entered into by and among St.
George Investments, LLC, an Illinois limited liability company (the “Investor”), Drinks
Americas Holdings LTD., a Delaware corporation (the “Company”), J. Patrick
Kenny, an individual and affiliate of the Company, and certain other affiliate
signatories (the “Affiliates”), and Fredrick Schulman, an individual and
affiliate of the Company (the “Additional Pledgor”),
is made and entered into by and among the parties this 28th day of August,
2009.

       

      WHEREAS, the Additional
Pledgor is an affiliate of the Company and would personally benefit from a
prepayment by the Investor (the “Prepayment”) of a portion of that certain St.
George 7 Month Secured Purchase Note dated June 18, 2009 (the “Purchase Note”);
and

       

      WHEREAS, in consideration of
such benefit to the Additional Pledgor, and in order to induce the Investor to
make the Prepayment, the Additional Pledgor desires to become a party to the
Pledge Agreement and pledge, according to the terms hereof and of the Pledge
Agreement, one million two hundred sixty three thousand two hundred thirty five
(1,263,235) shares (the “Additional Collateral
Shares”) of the Common Stock of the Company; and

       

      WHEREAS, the Affiliates
likewise desire and believe it is in their best interests that the Investor to
make the Prepayment and that the Additional Pledgor pledge the
shares.

       

      NOW THEREFORE, in
consideration of the Prepayment, and other good and valuable consideration, the
receipt and sufficiency of which is hereby acknowledged, the Additional Pledgor
hereby agrees as follows:

       

      Definitions and
Recitals.  Capitalized terms used in this Amendment but not
otherwise defined have the respective meanings set forth in the Pledge
Agreement.  The recitals set forth above are incorporated in this
Amendment by reference and made contractual in nature.

       

      Joinder.  The
Additional Pledgor hereby joins in and agrees to be bound by each and all of the
provisions of the Pledge Agreement as an “Affiliate” thereunder.  The
Additional Pledgor further agrees to execute and deliver all other documents and
instruments and take all other actions required under or pursuant to the Pledge
Agreement or as may be reasonably required by the Company or the Investor in
connection herewith.

      

      Delivery of Collateral
Shares.  The Additional Pledgor shall, contemporaneous with the
delivery of this Amendment, deliver the Additional Collateral Shares in
accordance with the terms of the Section 1 of the Pledge Agreement and agrees to
fulfill in a timely manner all other covenants, promises and obligations of the
Affiliates in the Pledge Agreement.

      

      Stock
Power.  The Additional Pledgor shall complete, sign (with a
signature guaranty) and, contemporaneous with the delivery of this Amendment,
deliver the Stock Power attached hereto as Exhibit A (or a stock power of
equivalent, binding effect) to the Investor.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      

      Representations and
Warranties.  The Additional Pledgor hereby represents and
warrants that each representation and warranty contained in the Pledge Agreement
is true and correct with respect to the Additional Pledgor as of the date
hereof, as if such representations and warranties were set forth at length
herein.

      

      Other Terms
Unchanged.  The Pledge Agreement, as amended by this Amendment,
remains and continues in full force and effect, constitutes a legal, valid, and
binding obligation of the Company, and is in all respects agreed to, ratified,
and confirmed. Any reference to the Pledge Agreement after the date of this
Amendment is deemed to be a reference to the Pledge Agreement as amended by this
Amendment.  If there is a conflict between the terms of this Amendment
and the Pledge Agreement, the terms of this Amendment shall
control.

      

      Headings.  The
headings contained in this Amendment are for reference purposes only and do not
affect in any way the meaning or interpretation of this Amendment.

      

      Governing
Law.  This Agreement shall be governed and construed under the
laws of the State of Illinois, without regard to conflicts of laws
principles.  The Company hereby consents to the jurisdiction of any
competent court within the State of Illinois and consents to service of process
by any means authorized by Illinois law in any action brought under or arising
out of this Amendment.

      

      Counterparts.  This
Amendment may be executed in any number of counterparts with the same effect as
if all signing parties had signed the same document.  All counterparts
shall be construed together and constitute the same instrument.  The
exchange of copies of this Amendment and of signature pages by facsimile
transmission or other electronic transmission (including email) shall constitute
effective execution and delivery of this Amendment as to the parties and may be
used in lieu of the original Amendment for all purposes.  Signatures
of the parties transmitted by facsimile transmission or other electronic
transmission (including email) shall be deemed to be their original signatures
for all purposes.

      

       

      [Remainder
of page intentionally left blank.]

       

       

      
        
           

        

        
          2

          
            

          

        

        
           

        

      

       

      IN WITNESS WHEREOF, the
Additional Pledgor has caused this Addendum to be executed and delivered to each
of the Company, the Affiliates and the Investor as of the date first written
above.

      

       

      
        
          	 
      	
                  DRINKS
      AMERICAS HOLDINGS, LTD.

                
	 
      	 
      
	 
      	 
      
	 
      	
                  By:  ________________________________

                
	 
      	
                  Its:  ________________________________

                
	 
      	 
      
	 
      	 
      
	 
      	 
      
	 
      	
                  INVESTOR:

                
	 
      	 
      
	 
      	
                  ST.
      GEORGE INVESTMENTS, LLC

                
	 
      	 
      
	 
      	 
      
	 
      	
                  By:  _______________________________

                
	 
      	
                  Its:  _______________________________

                
	 
      	 
      
	 
      	 
      
	 
      	 
      
	 
      	
                  THE
      NEW PLEDGOR:

                
	 
      	 
      
	 
      	
                  By:  _______________________________

                
	 
      	
                          
      Fredrick Schulman

                
	 
      	 
      
	 
      	 
      
	 
      	 
      
	 
      	
                  THE
      AFFILIATES:

                
	 
      	 
      
	 
      	
                  By:  _______________________________

                
	 
      	 
      
	 
      	
                  By:  _______________________________

                
	 
      	 
      
	 
      	
                  By:  _______________________________

                
	 
      	 
      
	 
      	
                  By:  _______________________________

                
	 
      	 
      
	 
      	
                  By:  _______________________________

                
	 
      	 
      
	 
      	
                  By:  _______________________________

                
	 
      	 
      

        

      

       

      
        
           

        

        
          3

          
            

          

        

        
           

        

      

       

      EXHIBIT
A

       

      STOCK
POWER

       

      For Value Received, Fredrick
Schulman does hereby transfer unto St. George Investments, LLC one million two
hundred sixty three thousand two hundred thirty five (1,263,235) shares of the
common stock, of Drinks Americas Holdings, Ltd., a Delaware corporation,
standing in the name on the books of the corporation and represented by
Certificate No. [     ] and does hereby irrevocably
constitute and appoint St. George Investments, LLC its attorney-in-fact to
transfer the said stock on the said books of the corporation with full power of
substitution in the premises.

       

      
        
          	
                  Dated:  _____

                	 
      
	 
      	
                  _____________________________

                
	 
      	
                  Fredrick
      Schulman, an individual

                

        

      

       

       

      
        
           

        

        
          4

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