Document:

kl07066_ex10-2.htm

    
      

    

                                                         
      

     

     

    Exhibit
      10.2

    

    

    CONSENT
      OF LENDER TO SALE OF ASSET

    by
      P&S SPIRIT, LLC

    

    

    WHEREAS,
      P&S Spirit, LLC, a Nevada limited liability company, as lender (“Lender”),
      has entered into two loan agreements with New World Brands, Inc., a Delaware
      corporation, as borrower (“Borrower”), one dated March 29, 2007 (the “Term
      Loan”) and one dated May 31, 2007 (the “Credit Line,” and the Term Loan and
      Credit Line collectively the “Loans,” and the related loan agreements,
      promissory notes and related documentation the “Loan Agreements”).

     

    WHEREAS,
      pursuant to the Loan Agreements Borrower has granted Lender a security interest
      in all Borrower’s shares of IP Gear, Ltd., an Israeli limited liability company
      (“IP Gear”), which is a wholly owned subsidiary of Borrower, and the Loan
      Agreements further provide that a sale of Borrower’s IP Gear shares, absent
      Lender’s consent, would cause a repayment of all currently outstanding principal
      under the Loans.

     

    WHEREAS,
      Borrower desires to sell all of Borrower’s IP Gear shares to TELES AG
      Informationstechnologien, a German company (the proposed sale the “Teles Sale”),
      and desires to consummate the Teles Sale in accordance with the Share Sale
      and
      Purchase Agreement, dated July 26, 2007, in the form provided to Lender, subject
      to the terms and conditions hereof.

     

    WHEREAS,
      Lender believes that the Teles Sale is in the best financial interests of
      Borrower and is most likely to improve Borrower’s financial circumstances and
      credit, and desires to consent to the consummation of the Teles Sale, subject
      to
      the terms and conditions hereof.

     

    NOW
      THEREFORE, Lender and Borrower, each intending to be legally bound hereby and
      each being fully advised as to the terms and conditions of, and facts regarding,
      the Teles Sale, agree as follows:

     

    1.           Subject
      to the terms and conditions hereof (including without limitation the repayment
      requirement provided herein), Lender hereby irrevocably consents to the Teles
      Sale in accordance with the Share Sale and Purchase Agreement, releases and
      terminates Lender’s security interest in the IP Gear shares, and agrees that
      consummation of the Teles Sale shall not be deemed or give rise to an event
      of
      default, penalty, or increase under, or termination of, the Loan Agreements,
      shall not, except as otherwise provided herein, accelerate any amounts owing
      under the Loan Agreements or trigger any prepayment or give rise to any payment
      not otherwise required under the Loan Agreements, and shall not require Borrower
      to provide any additional security, collateral, reserve or payment under the
      Loan Agreements.

     

    2.           Section
      1 notwithstanding, Borrower shall pay to Lender, as a partial repayment of
      principal of the Term Loan, the sum of $500,000.00, payable upon or immediately
      after the closing of the Teles Sale.

     

    3.           In
      the event that Lender, Borrower and Teles are able to reach agreement by which
      the Teles loan agreement described in the Share Sale and Purchase Agreement
      is
      made available to 

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

     

    Borrower
      consistent with the terms and conditions set forth in the Share Sale and
      Purchase Agreement, Borrower shall then borrow, and Lender shall then lend,
      the
      sum of $500,000.00 as an advance pursuant to the Credit Line Agreement, to
      be
      used by Borrower solely to repay then outstanding principal under the Term
      Loan.

     

    4.           The
      parties acknowledge that Lender’s consent hereunder shall not impair or affect
      any unrelated provisions of the Loan Agreements, all of which remain in full
      force and effect.

     

    

    IN
      WITNESS WHEREOF, the undersigned have duly executed this Consent as of July
      26,
      2007.

    

    P&S
      Spirit, LLC

    

    /s/
      Jacob
      Schorr     

    By:
      Jacob Schorr, Member

     

     

     

     

    2c49532_ex10-1.htm -- Converted by SEC Publisher, created by BCL Technologies Inc., for SEC Filing

AGREEMENT OF AMENDMENT 

Dated as of September 29, 2006 

     Reference is made to that certain Revolving Credit and Security Agreement dated as of February 25, 2003 (as from time to time and as hereby amended, the "Credit Agreement") among XL Re Ltd (the
"Borrower"), CAFCO, LLC (formerly Corporate Asset Funding Company, Inc., "CAFCO"), CRC Funding, LLC (formerly Corporate Receivables Corporation, "CRC"), CHARTA, LLC (formerly CHARTA Corporation, "CHARTA"), CIESCO, LLC (formerly CIESCO, L.P.,
"CIESCO"), Citibank, N.A. ("Citibank"), the other banks from time to time parties thereto and Citicorp North America, Inc., as agent (the "Agent"). Capitalized terms used and not defined herein shall have the meanings assigned to such terms in the
Credit Agreement. 

     The parties to the Credit Agreement hereby agree that, effective as of the date hereof, Section 1.01 of the Credit Agreement is hereby amended by adding the following definition in proper alphabetical
order therein: 

 ""Capital
      Lease Obligations" of any Person means the
      obligations of such Person to pay rent or other amounts under any lease
      of (or other arrangement conveying the right to use) real or personal property,
      or a combination thereof, which obligations are required to be classified
      and accounted for as capital leases on a balance sheet of such Person under
      GAAP, and the amount of such obligations shall be the capitalized amount
      thereof determined in accordance with GAAP." 

     The parties to the Credit Agreement hereby agree that, effective as of the date hereof, Section 1.01 of the Credit Agreement is hereby amended by adding the following definition in proper alphabetical
order therein: 

 ""Consolidated
      Net Worth" means, at any time, the consolidated
      stockholders' equity of the Borrower and its Subsidiaries; provided,
      that the calculation of such consolidated stockholders' equity shall exclude
      (a) the effect thereon of any adjustments required under Statement of Accounting
      Standards No. 115 ("Accounting for Certain Investments in Debt and Equity
      Securities") and (b) any Exempt Indebtedness (and the assets relating thereto)
      in the event such Exempt Indebtedness is consolidated on the consolidated
      balance sheet of the Borrower and its consolidated Subsidiaries in accordance
      with GAAP." 

     The parties to the Credit Agreement hereby agree that, effective as of the date hereof, Section 1.01 of the Credit Agreement is hereby amended by replacing the definition of "Debt" set forth therein
in its entirety with the following: 

 ""Debt" means,
    for any Person, without duplication: (i) all indebtedness or liability for
    or on account of money borrowed by, 

 or for or on account of deposits
    with or advances to (but not including accrued pension costs, deferred income
    taxes or accounts payable of) such Person; (ii) all obligations (including
    contingent liabilities) of such Person evidenced by bonds, debentures, notes,
    banker’s acceptances or similar instruments; (iii) all indebtedness
    or liability for or on account of property or services purchased or acquired
    by such Person; (iv) any amount secured by a Lien on property owned by such
    Person (whether or not assumed) and Capital Lease Obligations of such Person
    (without regard to any limitation of the rights and remedies of the holder
    of such Lien or the lessor under such capital lease to repossession or sale
    of such property); (v) the maximum available amount of all standby letters
    of credit issued for the account of such Person and, without duplication,
    all drafts drawn thereunder (to the extent unreimbursed); and (vi) all Guarantees
    of such Person; provided that the following shall be excluded from Debt of
    the Borrower and any of its Subsidiaries for purposes of this Agreement:
    (a) all payment liabilities of any such Person under insurance and reinsurance
    policies from time to time issued by such Person, including guarantees of
    any such payment liabilities; (b) all other liabilities (or guarantees thereof)
    arising in the ordinary course of any such Person’s business as an insurance
    or reinsurance company (including GICs and Stable Value Instruments and any
    Specified Transaction Agreement relating thereto), or as a corporate member
    of The Council of Lloyd’s, or as a provider of financial or investment
    services or contracts (including GICs and Stable Value Instruments and any
    Specified Transaction Agreement relating thereto); and (c) any Exempt Indebtedness." 

     The parties to the Credit Agreement hereby agree that, effective as of the date hereof, Section 1.01 of the Credit Agreement is hereby amended by adding the following definition in proper alphabetical
order therein: 

 ""Exempt
      Indebtedness" means any Debt of any Person
      (other than the Borrower or any of its Affiliates) that is consolidated
      on the balance sheet of the Borrower and its consolidated Subsidiaries
      in accordance with GAAP (whether or not required to be so consolidated); provided that
      (a) at the time of incurrence of such Debt by such Person, the cash flows
      from the assets of such Person shall reasonably be expected by such Person
      to liquidate such Debt and all other liabilities (contingent or otherwise)
      of such Person and (b) no portion of such Debt of such Person shall be
      Guaranteed (other than guarantees of the type referred to in clause (i)
      and (ii) of the definition of Debt) by, or shall be secured by a Lien on
      any assets owned by the Borrower or any of its Subsidiaries and neither
      such Person nor any of the holders of such Debt shall have any direct or
      indirect recourse to the Borrower or any of its Subsidiaries (other than
      in respect of liabilities and guarantees of the type referred to in clause
      (i) or (ii) of the definition of Debt)." 

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     The parties to the Credit Agreement hereby agree that, effective as of the date hereof, Section 1.01 of the Credit Agreement is hereby amended by adding the following definition in proper alphabetical
order therein: 

 ""Specified
      Transaction Agreement" means any agreement,
      contract or documentation with respect to the following types of transactions:
      rate swap transaction, swap option, basis swap, asset swap, forward rate
      transaction, commodity swap, commodity option, equity or equity index swap,
      equity or equity index option, bond option, interest rate option, foreign
      exchange transaction, cap transaction, floor transaction, collar transaction,
      current swap transaction, cross-currency rate swap transaction, currency
      option, credit protection transaction, credit swap, credit default swap,
      credit default option, total return swap, credit spread transaction, repurchase
      transaction, reverse repurchase transaction, buy/sell-back transaction,
      securities lending or borrowing transaction, weather index transaction
      or forward purchase or sale of a security, commodity or other financial
      instrument or interest, and transactions on any commodity futures or other
      exchanges, markets and their associated clearing houses (including any
      option with respect to any of these transactions)." 

     The parties to the Credit Agreement hereby agree that, effective as of the date hereof, Section 5.02(c) of the Credit Agreement is hereby amended by adding the following language at the end thereof:

 ", or (v) Dispositions from
    the Borrower to its Affiliates; provided,
    that no such Disposition may cause the aggregate of all such Dispositions
    to Affiliates in the calendar year in which such Disposition was made to
    exceed an amount equal to twenty-five percent (25%) of the Borrower's Consolidated
    Net Worth as of the date of such Disposition, or as reported in the Borrower's
    most recently issued audited or certified financial statements, whichever
    is lower." 

     The Borrower represents and warrants to the Agent, Citibank, CAFCO, CRC, CHARTA and CIESCO that immediately after giving effect to this Agreement of Amendment, (i) the representations and warranties
of the Borrower set forth in the Credit Agreement are true and correct in all material respects, and (ii) no Default or Event of Default shall be continuing. 

     This Agreement of Amendment may be executed in any number of counterparts, each of which when so executed shall be deemed to be an original and all of which when taken together shall constitute one
and the same agreement. 

     THIS AGREEMENT OF AMENDMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK. 

     All references in any Program Document to the Credit Agreement on and after the date hereof shall be deemed to refer to the Credit Agreement, as amended hereby, and the parties 

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hereto agree that on and after the date hereof, the Credit Agreement, as amended hereby, is in full force and effect. 

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     IN WITNESS WHEREOF, the parties hereto have caused this agreement to be executed and delivered by their duly authorized officers as of the date first above written. 

	
CITICORP NORTH AMERICA, INC., 
  	 
  	
CITIBANK, N.A., 
  
	
as Agent 
  	 
  	
as Secondary Lender 
  
	 

  
	 

  
	
By: /s/ Arthur Bovino___ 
  	 
  	
By: /s/ Arthur Bovino___ 
  
	
       Name: Arthur Bovino 
  	 
  	
       Name: Arthur Bovino 
  
	
       Title: Vice-President 
  	 
  	
       Title: Vice-President 
  
	 

  
	 

  
	
CAFCO, LLC, as Lender 
  	 
  	
CRC FUNDING, LLC, as Lender 
  
	 

  
	
By: Citicorp North America, Inc., as 
  	 
  	
By: Citicorp North America, Inc., as 
  
	
                    Attorney-in-Fact 
  	 
  	
                    Attorney-in-Fact 
  
	 

  
	 

  
	
By: /s/ Arthur Bovino__ 
  	 
  	
By: /s/ Arthur Bovino__ 
  
	
       Name: Arthur Bovino 
  	 
  	
       Name: Arthur Bovino 
  
	
       Title: Vice-President 
  	 
  	
       Title: Vice-President 
  
	 

  
	 

  
	
CHARTA, LLC, as Lender 
  	 
  	
CIESCO, LLC, as Lender 
  
	 

  
	
By: Citicorp North America, Inc., as 
  	 
  	
By: Citicorp North America, Inc., as 
  
	
                    Attorney-in-Fact 
  	 
  	
                    Attorney-in-Fact 
  
	 

  
	 

  
	
By: /s/ Arthur Bovino__ 
  	 
  	
By: /s/ Arthur Bovino__ 
  
	
        Name: Arthur Bovino 
  	 
  	
       Name: Arthur Bovino 
  
	
        Title: Vice-President 
  	 
  	
        Title: Vice-President 
  
	 

  
	 

  
	 

  
	
XL RE LTD, 
  	 
  	 

  
	
as Borrower 
  	 
  	 

  
	 

  
	 

  
	 

  
	
By: /s/ Derrick A Irby__ 
  	 
  	 

  
	
        Name: Derrick A Irby 
  	 
  	 

  
	
        Title: SVP and Chief Financial
 Officer 
  	 
  	 

  

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