Document:

Reimbursement Agreement

 Exhibit 10.54 
 December 16, 2010 
 American Assets, Inc. 

11455 El Camino, Suite #200 
 San Diego, CA 92130 
  

	Re:	Fees and Expenses of Proposed Formation Transactions and Public Offering 

 Gentlemen: 
 Reference is made to the proposed underwritten initial public
offering (the “Public Offering”) of the common stock of American Assets Trust, Inc. (the “Company”). It is proposed that the Company operate as a real estate investment trust within the meaning of Section 856
of the Internal Revenue Code of 1986, as amended. 
 In connection with the Public Offering, the current owners of the various
entities and related affiliates (collectively, the “Property Entities”) that own interests in the properties specified on Exhibit A (each a “Property” and collectively the “Properties”) have
(1) entered into contribution agreements pursuant to which they will contribute their interests in the Property Entities to the Company or the Company’s operating partnership subsidiary, American Assets Trust, L.P., (the “Operating
Partnership”), or its subsidiaries, or (2) caused the Property Entities to enter into merger agreements pursuant to which the Property Entities will merge with and into the Company, the Operating Partnership or certain of their
subsidiaries (or, in the case of reverse mergers, certain subsidiaries of the Operating Partnership will merge with and into such Property Entities), in each case substantially concurrently with the completion of the Public Offering, in exchange for
common stock of the Company, units of limited partnership interest in the Operating Partnership or cash (the “Formation Transactions”). 
 In connection with the Formation Transactions, the proposed Public Offering and any other related transactions in connection with the Formation Transactions and the Public Offering (including, without
limitation, due diligence, formation of the Company and the Operating Partnership and other subsidiaries, employment, employee benefits and corporate governance arrangements, the preparation of a registration statement for filing with the U.S.
Securities and Exchange Commission, and loan assumptions and other required third party consents), American Assets, Inc. (directly or through affiliates), has incurred and will incur organizational, legal, accounting and other similar fees and
expenses including, but not limited to, attorneys’ and accountants’ fees and expenses, bankers’ and underwriters’ fees and expenses, appraisal fees and expenses, expert fees and expenses, market study costs, filing fees related
to the Public Offering, consent fees and expenses, fees and expenses related to loan assumptions and other required third party consents and costs and expenses of formation of the Company and the Operating Partnership and their respective
subsidiaries (the “Transaction Costs”) on behalf of both itself and the Property Entities and on behalf of the Company and the Operating Partnership. 
 Upon consummation of the Public Offering, the Company agrees to pay to American Assets, Inc. or its designee, promptly upon request and by wire transfer of immediately available

 
funds, all reasonable, documented Transaction Costs incurred by American Assets, Inc. or any of its affiliates in connection with or related to the Formation Transactions and the proposed Public
Offering and any other related transactions in connection with the Formation Transactions and the Public Offering. 
 For all
purposes hereof, neither American Assets, Inc., the Company, the Operating Partnership nor any Property Entity nor any of their respective affiliates shall be deemed an agent, lawyer, employee, representative, joint venturer or fiduciary of any
other person or any other party, nor shall this letter agreement or any activity or any transaction contemplated hereby, or any commission or omission by any party, be deemed to create any partnership, joint venture, agency or employment between the
parties or among their affiliates. 
 This letter agreement constitutes the entire agreement among the parties with respect to
the subject matter hereof and supersedes conflicting provisions set forth in all other prior agreements, understandings, representations and communications, both written and oral, as the case may be. Any amendment hereto shall be in writing and
signed by all parties hereto. No waiver or modification of any provisions of this letter agreement shall be valid unless in writing and signed by the party against whom enforcement is sought. This letter agreement may be executed in one or more
counterparts, each of which shall be deemed an original, but all of which taken together shall constitute one and the same instrument, and shall be governed by the internal laws of the State of California, without regard to the choice of laws
provisions thereof. 
 [The remainder of this page was intentionally left blank.] 

 If you are in agreement with the terms set forth above, please so indicate by signing below
and returning the executed letter to: 
 American Assets, Inc. 
 11455 El Camino, Suite #200 
 San Diego, CA 92130 

Thank you for your consideration. 
  

			
	Very truly yours,
	
	American Assets, Inc.
		
	By:	 	/s/ Ernest Rady
		 	Ernest Rady, President

 Acknowledged and Agreed By: 

 

					
		 	AMERICAN ASSETS TRUST, INC.,
		 	a Maryland corporation
			
		 	By:	 	/s/ John W. Chamberlain
		 	Name:	 	John W. Chamberlain
		 	Title:	 	President
		
		 	AMERICAN ASSETS TRUST, L.P.,
		 	a Maryland limited partnership
		
	By:	 	AMERICAN ASSETS TRUST, INC.,
		 	a Maryland corporation
		
	Its:	 	General Partner
			
		 	By:	 	/s/ John W. Chamberlain
		 	Name:	 	John W. Chamberlain
		 	Title:	 	President

 Exhibit A 
 CARMEL COUNTRY PLAZA 
 CARMEL MOUNTAIN PLAZA 

SOUTH BAY MARKET PLACE 
 RANCHO CARMEL
PLAZA 
 LOMAS SANTA FE PLAZA 

SOLANA BEACH TOWNE CENTRE 
 DEL MONTE
CENTER 
 THE SHOPS AT KALAKAUA 
 WAIKELE CENTER 
 ALAMO QUARRY 

TORREY RESERVE CAMPUS 
 SOLANA BEACH
CORPORATE CENTER 
 VALENCIA CORPORATE CENTRE 
 160 KING STREET 
 THE LANDMARK AT ONE MARKET 

WAIKIKI BEACH WALK 
 LOMA PALISADES

 IMPERIAL BEACH GARDENS 

MARINER’S POINT 
 SANTA FE PARK RV
RESORTUnassociated Document

Exhibit  10.9.2.1

Execution Version

 

 

AMENDMENT NO. 1 TO

 

SENIOR SECURED PROMISSORY NOTE

 

THIS AMENDMENT NO. 1 TO SENIOR SECURED PROMISSORY NOTE (this “Amendment”), dated as of December 16, 2010, is made by and among CAPRIUS, INC., a Delaware corporation (“Caprius”), M.C.M. ENVIRONMENTAL TECHNOLOGIES, INC., a Delaware corporation (“M.C.M.”), M.C.M. ENVIRONMENTAL TECHNOLOGIES LTD., an Israeli corporation (“M.C.M. Israel”) (Caprius, M.C.M. and M.C.M. Israel may be individually referred to as a “Borrower” and collectively referred to as the “Borrowers”), and VINTAGE CAPITAL GROUP, LLC, a Delaware limited liability company (together with its successors and assigns, the “Purchaser”).

 

R E C I T A L S

 

WHEREAS, the Borrowers and the Purchaser are parties to that certain Securities Purchase and Sale Agreement, dated as of September 16, 2009, (as amended (including, without limitation, by that certain Amendment No. 1 to Securities Purchase and Sale Agreement, dated as of September 8, 2010, that certain Amendment No. 2 to Securities Purchase and Sale Agreement, dated as of November 4, 2010, and that certain Amendment No. 3 to Securities Purchase and Sale Agreement, dated as of November 18, 2010), restated, supplemented or otherwise modified from time to time, the “Purchase Agreement”);

 

WHEREAS, pursuant to and in accordance with the Purchase Agreement, the Borrowers issued that certain Senior Secured Promissory Note, dated as of September 16, 2009, in favor of the Purchaser (as amended, restated, supplemented or otherwise modified from time to time, the “Note”);

 

WHEREAS, the Borrowers and the Purchaser have agreed to amend the Note as set forth herein; and

 

WHEREAS, capitalized terms not otherwise defined herein shall have the meanings ascribed to such terms in the Note.

 

A G R E E M E N T

 

NOW THEREFORE, in consideration of the foregoing premises and other good and valuable consideration paid by each party to the other, the receipt and sufficiency of which are hereby acknowledged, the parties hereby agree as follows:

 

1.           Amendment to Note.  Effective upon the Amendment No. 1 Effective Date, Section 2 of the Note is hereby amended and restated in its entirety as follows:

 

 “2.           Payment of Principal; Maturity Date.  The Borrowers agree jointly and severally to pay in full (a) the entire outstanding principal balance of this Note and the PIK Notes, (b) all accrued and unpaid interest on this Note and the PIK Notes, and (c) all other unpaid amounts owing under this Note and the PIK Notes, on the earlier of (i) February 1, 2011 and (ii) the termination of that certain Agreement and Plan of Merger, dated as of November 10, 2010, by and among the Purchaser, Capac Co. and Caprius (such earlier date, the “Maturity Date”).  This Note may not be prepaid except as provided in Section 3.”

 

  

  

  

 

2.           Amendment Fee.  On the Amendment No. 1 Effective Date (as defined below), the Purchaser shall be deemed to have earned, and the Borrowers hereby jointly and severally agree to pay the Purchaser, an amendment fee (the “Amendment Fee”) of Ten Thousand Dollars ($10,000).  Such fee is nonrefundable and is fully earned and payable upon the effectiveness of this Amendment and the Borrowers acknowledge and agree that they shall be deemed to have requested an Advance on the Amendment No. 1 Effective Date in an amount equal to the Amendment Fee.

 

3.           Conditions Precedent to Effectiveness.  This Amendment shall be effective upon the first day that all of the following are satisfied (the “Amendment No. 1 Effective Date”):

 

(a)           The Purchaser’s receipt of a counterpart hereof duly executed by the Borrowers;

 

(b)           The Purchaser’s receipt of the Amendment Fee; and

 

(c)           The representations and warranties of the Borrowers contained in this Amendment and the Purchase Agreement shall be true and correct.

 

4.           Representations and Warranties of the Borrowers.  Each Borrower makes the following representations and warranties to the Purchaser, each and all of which shall survive the execution and delivery of this Amendment:

 

(a)           This Amendment has been executed and delivered by duly authorized representatives of each Borrower, and the Note, as modified and amended by this Amendment, constitutes a legal, valid and binding obligation of such Borrower, and is enforceable against such Borrower in accordance with its terms, except as enforcement may be limited by equitable principles or by bankruptcy, insolvency, reorganization, moratorium or similar laws relating to or limiting creditors’ rights generally; and

 

(b)           After giving effect to this Amendment, all of the representations and warranties of the Borrowers contained in the Purchase Agreement continue to be true and correct in all material respects (except that such materiality qualifier shall not be applicable to any representations or warranties that already are qualified or modified as to “materiality” or “Material Adverse Effect” or “Material Adverse Change” in the text thereof, which representations and warranties shall be true and correct in all respects subject to such qualification) on and as of the date hereof as though made on and as of such date, except to the extent that any such representation or warranty expressly relates solely to an earlier date (in which case such representation or warranty shall be true and correct in all material respects (except that such materiality qualifier shall not be applicable to any representations or warranties that already are qualified or modified as to “materiality” or “Material Adverse Effect” or “Material Adverse Change” in the text thereof, which representations and warranties shall be true and correct in all respects subject to such qualification) on and as of such earlier date.

 

  

  

  

 

5.           No Waivers.  The execution, delivery and effectiveness of this Amendment shall not operate as a waiver of any right, power or remedy of the Purchaser under the Purchase Agreement, the Note or any of the other Investment Documents, nor constitute a waiver of any provision of the Purchase Agreement, the Note or any of the other Investment Documents.  This Amendment shall not constitute a modification of the Purchase Agreement or the Note or a course of dealing between the Borrowers, on the one hand, and the Purchaser, on the other hand, at variance with the Purchase Agreement, the Note and the other Investment Documents such as to require notice by the Purchaser to the Borrowers to require strict compliance with the terms of the Purchase Agreement, the Note and the other Investment Documents in the future, except as expressly set forth herein. Each Borrower acknowledges and expressly agrees that the Purchaser reserves the right to, and does in fact, require strict compliance with all terms and provisions of the Purchase Agreement, the Note and the other Investment Documents and reserves and preserves its rights, remedies and powers with respect thereto.  No Borrower has knowledge of any challenge to the Purchaser’s rights arising under the Investment Documents or the effectiveness of the Investment Documents.

 

6.           Effect on Investment Documents.

 

(a)           The Note, as amended hereby, the Purchase Agreement, and each of the other Investment Documents shall be and remain in full force and effect in accordance with their respective terms and hereby are ratified and confirmed in all respects.

 

(b)           Upon and after the effectiveness of this Amendment, each reference in the Note to “this Note,” “hereunder,” “herein,” “hereof” or words of like import referring to the Note, and each reference in the other Investment Documents to “the Note,” “thereunder,” “therein,” “thereof” or words of like import referring to the Note, shall mean and be a reference to the Note as modified and amended hereby.

 

(c)           To the extent that any terms and conditions in any of the Investment Documents shall contradict or be in conflict with any terms or conditions of the Note, after giving effect to this Amendment, such terms and conditions are hereby deemed modified or amended accordingly to reflect the terms and conditions of the Note as modified or amended hereby.

 

(d)           This Amendment is an Investment Document.

 

7.           Fees, Costs and Expenses.  The Borrowers jointly and severally agree to pay on demand all fees, costs and expenses in connection with the preparation, execution, delivery, administration, modification and amendment of this Amendment and the other instruments and documents to be delivered hereunder, including, without limitation, the reasonable fees, costs and expenses of counsel for the Purchaser with respect thereto and with respect to advising the Purchaser as to its rights and responsibilities hereunder and thereunder.  The Borrowers acknowledge and agree that they shall be deemed to have requested an Advance (as defined in the Purchase Agreement) on the Amendment No. 1 Effective Date in an amount equal to all such fees, costs and expenses for which the Purchaser has received an invoice on or before such date.

 

  

  

  

 

8.           Amendment.  No amendment of any provision of this Amendment or the Note shall be effective unless the same shall be in writing and signed by each of the Borrowers and the Purchaser.

 

9.           GOVERNING LAW.  EXCEPT AS OTHERWISE EXPRESSLY PROVIDED IN THIS AMENDMENT, IN ALL RESPECTS, INCLUDING ALL MATTERS OF CONSTRUCTION, VALIDITY AND PERFORMANCE, THIS AMENDMENT AND THE OBLIGATIONS SHALL BE GOVERNED BY, AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF NEW YORK APPLICABLE TO CONTRACTS MADE AND PERFORMED IN THAT STATE AND ANY APPLICABLE LAWS OF THE UNITED STATES OF AMERICA.

 

[The remainder of the page is intentionally blank.]

 

  

  

  

 

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

 

 

	 	

BORROWERS:

	 
	 	 	 
	 	

CAPRIUS, INC.

	 
	 	 	 	 
	 	 	 	 
	 	
By: 

	/s/Dwight Morgan	 
	 	 	Name: 	Dwight Morgan	 
	 	 	Title: 	Chief Executive Officer	 

 

	 	

M.C.M. ENVIRONMENTAL TECHNOLOGIES, INC.

	 
	 	 	 	 
	 	 	 	 
	 	
By: 

	/s/Dwight Morgan	 
	 	 	Name: 	Dwight Morgan	 
	 	 	Title: 	Chief Executive Officer	 

 

	 	

M.C.M. ENVIRONMENTAL TECHNOLOGIES LTD.

	 
	 	 	 	 
	 	 	 	 
	 	
By: 

	/s/Dwight Morgan	 
	 	 	Name: 	Dwight Morgan	 
	 	 	Title: 	Director	 

 

[SIGNATURE PAGE TO AMENDMENT NO. 1 TO

SENIOR SECURED PROMISSORY NOTE]

 

  

  

  

 

	 	

PURCHASER:

	 
	 	 	 
	 	

VINTAGE CAPITAL GROUP, LLC

	 
	 	 	 	 
	 	 	 	 
	 	
By: 

	/s/Fred C. Sands	 
	 	 	Name: 	Fred C. Sands	 
	 	 	Title: 	Chairman	 

 

 

[SIGNATURE PAGE TO AMENDMENT NO. 1 TO

SENIOR SECURED PROMISSORY NOTE]

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