Document:

IN THE CIRCUIT COURT OF THE

FIFTEENTH JUDICIAL CIRCUIT IN AND

FOR PALM BEACH COUNTY, FLORIDA

 

CIVIL DIVISION

 

CASE NO. 50 2013CA002288XXXXMB

 

DIVISION: AN

 

	FIFTH THIRD BANK, a national banking
        association,

         

        Plaintiff,

         

        v.

         

        BANYAN RAIL SERVICES, INC., a
        Delaware Corporation, as successor by merger with B.H.I.T., Inc., a Delaware Corporation,

         

        Defendants.

         
	/	 

 

SETTLEMENT STIPULATION

 

Plaintiff, Fifth Third
Bank, a national banking association (“FTB”), and defendant, Banyan Rail Services, Inc., a Delaware Corporation, as
successor by merger with B.H.I.T., Inc., a Delaware Corporation (“Banyan”) (collectively, the “Parties”),
hereby stipulate as follows:

 

1.     On
or before September 26, 2013 (“Payment Deadline”), Banyan shall pay FTB the amount of $200,000 by wire transfer of
immediately available funds, pursuant to the wire instructions contained in Exhibit 1 (“Settlement Funds”).

 

2.     If
Banyan fails to timely pay the Settlement Funds, FTB shall be entitled to the immediate entry of a final judgment against Banyan
in the form attached as Exhibit 2 (“Final Judgment”), which shall include (a) all amounts owed under the loan
documents as set forth in the complaint and affidavit of indebtedness executed by Lucas Barnett and filed in this case, (b) all
of FTB’s attorney’s fees and costs through the date of entry of the Final Judgment less amounts collected by FTB as
a result of its secured claims against The Wood Energy Group, Inc. (“Wood”) in the matter identifiable as In re:
The Wood Energy Group, Inc., United States Bankruptcy Court for the Southern District of Florida, Case No. 13-10688-PGH, and
(c) all note rate interest and default interest owed on the loans at issue through the date of entry of the Final Judgment.

 

    	 

    	 

    

 

3.     If
Banyan fails to timely pay the Settlement Funds and becomes a debtor in any voluntary or involuntary bankruptcy, assignment for
benefit of creditors, or other insolvency proceeding, Banyan agrees and stipulates that FTB shall have an allowed claim against
Banyan in the amount of the Final Judgment, plus attorney’s fees and interest.

 

4.     Notwithstanding
paragraph 6 below, Banyan hereby reaffirms and agrees that all of its claims against Wood are, and shall remain, fully subordinated
to all claims of FTB against Wood and that Banyan shall not be entitled to receive any payment or distribution on any such claims
until FTB’s claims have been paid and satisfied in full, and further that any distributions from Wood which may be allocable
or payable to Banyan shall be paid to FTB until such time. Moreover, if Banyan does receive any distributions or payment on account
of any claim against Wood it shall be paid over and delivered to FTB.

 

5.     In
consideration of the provisions hereof, upon execution of this Agreement, Banyan does hereby agree to unconditionally and irrevocably
waive, remise, acquit, satisfy, release and forever discharge FTB and its respective attorneys, representatives, agents, shareholders,
officers, directors, predecessors, successors, assigns, affiliates, subsidiaries, related entities, and employees (collectively,
the “Released Parties”), of and from any and all claims, demands, dues, sums of money, actions, suits, obligations,
controversies, debts, costs, expenses, accounts, damages, judgments, losses and liabilities, of whatever kind or nature, in law,
equity or otherwise, whether known or unknown, absolute or contingent, liquidated or unliquidated, which Banyan had, may have
had, now have or can, shall or may have against each of the Released Parties, from the beginning of the world until and including
the time and date of this Agreement, including, but not limited to, all claims and damages, directly or indirectly, arising out
of directly or in any way pertaining to (i) the above-captioned lawsuit and the subject matter thereof, and (ii) any other matter
referred to above (collectively, the “Released Claims”); provided, however, that nothing herein shall be deemed to
release any of the Released Parties from any of their respective obligations (or any claims arising by virtue of the Released
Parties breach of any such obligations) under the terms of this Agreement.

  

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6.     Except
as otherwise provided in Paragraph 4 above, in consideration of the provisions hereof, upon FTB’s receipt and clearance
of the Settlement Funds, FTB does hereby agree to unconditionally and irrevocably waive, remise, acquit, satisfy, release and
forever discharge Banyan and its respective attorneys, representatives, agents, shareholders, officers, directors, predecessors,
successors, assigns, affiliates, subsidiaries, related entities, and employees, other than Wood (collectively, the “Banyan
Released Parties”), of and from any and all claims, demands, dues, sums of money, actions, suits, obligations, controversies,
debts, costs, expenses, accounts, damages, judgments, losses and liabilities, of whatever kind or nature, in law, equity or otherwise,
whether known or unknown, absolute or contingent, liquidated or unliquidated, which FTB had, may have had, now have or can, shall
or may have against each of the Banyan Released Parties, for, upon or by reason of any of the matters which arise out of, directly
or indirectly, or are in any way connected with, the claims or disputes in the above-captioned lawsuit, from the beginning of
the world until and including the time and date hereof (collectively, the “Released Claims”); provided, however, that
nothing herein shall be deemed to release any of the Banyan Released Parties from any of its respective obligations (or any claims
arising by virtue of the Banyan Released Parties’ breach of any such obligations) under the terms of this Agreement. This
release shall not include nor pertain to the subordination provision contained in the guaranty executed by Banyan described in
the Complaint filed by FTB in the above-captioned lawsuit.

 

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7.     Banyan,
its representatives, attorneys, agents, shareholders, directors, officers, agents, employees, successors, assigns, affiliates,
subsidiaries, related entities and any third party providing all or part of the Settlement Funds under this stipulation (collectively,
the “Banyan Parties”), shall fully cooperate with FTB and its representatives, attorneys, agents, employees, directors,
officers, subsidiaries, affiliates, successors and assigns (collectively, the “Fifth Third Parties”), to confirm that
the Banyan Parties are not or shall not be: (i) a person with whom the Fifth Third Parties is restricted from doing business with
under any Anti-Terrorism Law (as hereinafter defined) or Anti-Money Laundering statutes, (ii) engaged in any business involved
in making or receiving any contribution of funds, goods or services to or for the benefit of such a person or in any transaction
that evades or avoids, or has the purpose of evading or avoiding, the prohibitions set forth in any Anti-Terrorism Law or any
Anti-Money Laundering statutes, or (iii) otherwise in violation of any Anti-Terrorism Law or Anti-Money Laundering Statutes. For
the purposes of this Agreement, “Anti-Terrorism Law” shall mean any laws relating to terrorism or money laundering,
including Executive Order No. 13224, effective September 24, 2001, the Uniting and Strengthening America by Providing Appropriate
Tools Required to Intercept and Obstruct Terrorism Act of 2001, Public Law 107-56, the laws comprising or implementing the Bank
Secrecy Act, the Foreign Corrupt Practices Act, as jointly enforced by the United States Justice Department and the Securities
and Exchange Commission, and the laws administered by the United States Treasury Department's Office of Foreign Assets Control
(as any of the foregoing orders or laws may from time to time be amended, renewed, extended or replaced).

 

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8.     The
Parties agree to the entry of an order approving this Settlement Stipulation in the form attached as Exhibit 3.

 

[Signatures
on next page.]

 

    	5

    	 

    

 

 

	/s/
    Charles I. Cohen	 	/s/
    Alan M. Grunspan
	Charles I. Cohen, Esq.	 	Alan M. Grunspan
	Florida Bar No. 451150	 	Florida Bar No. 451150
	Furr & Cohen, P.A.	 	Michael E. Strauch
	Counsel for Defendant	 	Florida Bar No. 13988
	One Boca Place	 	Carlton Fields, P.A.
	2255 Glades Road, Suite 337W	 	Counsel for Plaintiff
	Telephone:(561) 395-0500	 	100 S.E. Second Street, Suite 4200
	Facsimile:(561) 338-7532	 	Miami, Florida  33131-2114
	Email: ccohen@furrcohen.com	 	Telephone: (305) 530-0050
	 	 	Facsimile:  (305) 530-0055
	 	 	Email: agrunspan@carltonfields.com
	 	 	            mstrauch@carltonfields.com
	 	 	 
	 	 	 
	BANYAN RAIL SERVICES, INC. a Delaware Corporation, as successor
by merger with B.H.I.T., Inc., a Delaware Corporation

	 	FIFTH THIRD BANK, a national banking association

 

  

 

	By:	/s/ Gary O. Marino	 	By:	/s/ Michael B. Barkey
	As:	CEO	 	As:	Vice President
	Date:	June 27, 2013	 	Date:	June 26, 2013

 

 

 

    	6FIRST AMENDMENT TO

FOURTH AMENDED AND RESTATED CREDIT FACILITY
AGREEMENT

 

THIS FIRST
AMENDMENT TO FOURTH AMENDED AND RESTATED CREDIT FACILITY AGREEMENT (this “Amendment”) is made
as of the 15 day of May, 2013, by and between IEC ELECTRONICS CORP., a corporation formed under the laws of the State of
Delaware (“Borrower”) and MANUFACTURERS AND TRADERS TRUST COMPANY
(“Lender”).

 

WITNESSETH:

 

WHEREAS, the
parties hereto are parties to a Fourth Amended and Restated Credit Facility Agreement dated as of January 18, 2013 (as amended,
the “Credit Agreement”);

 

WHEREAS, Section
12.1, Section 12.2 and Section 12.3 of the Credit Agreement require that the Borrower maintain certain financial covenants unless
the Lender otherwise consents in writing; and

 

WHEREAS, Borrower
has requested and the Lender has agreed to (i) waive Events of Default arising from non-compliance with the aforementioned covenants
for the Fiscal Quarter ending March 29, 2013 and (ii) modify the covenants in Section 12.1 and Section 12.3 for future Fiscal Quarters,
all on the terms and conditions herein set forth.

 

NOW, THEREFORE,
for due consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

 

1.          DEFINITIONS.
All capitalized terms used herein and not defined shall have the meaning given such terms in the Credit Agreement.

 

2.          AMENDMENTS.
Effective as of the date of this Amendment:

 

(a)         Section
12.1 of the Credit Agreement is hereby amended and restated in its entirety to read as follows:

 

“12.1    Debt
to EBITDARS. Maintain at all times a Debt to EBITDARS Ratio, on a consolidated basis, no greater than the following ratios
for the following periods, reported at the end of each Fiscal Quarter:

 

6/28/2013 through and
including 12/27/2013    < 3.25 to 1.00

 

12/28/2013 through and
including 3/28/2014     < 3.00 to 1.00

 

329/2014 and thereafter    <
2.75 to 1.00”

  

    	 

    	 

    

  

(b)          Section
12.3 of the Credit Agreement is hereby amended and restated in its entirety to read as follows:

 

“12.3     Fixed
Charge Coverage Ratio. Commencing with the three month period ending June 28, 2013, maintain at all times a Fixed Charge Coverage
Ratio, on a consolidated basis, no less than the following ratios for the following periods, reported at the end of each Fiscal
Quarter:

 

	6/28/2013	> 0.95 to 1.00
	 	 
	9/30/2013	> 1.00 to 1.00
	 	 
	12/27/2013	> 1.15 to 1.00
	 	 
	3/28/2014 and thereafter	> 1.25 to 1.00”

  

3.          WAIVER.
Lender hereby waives any Event of Default arising under Section 14.1(b) of the Credit Agreement as a result of Borrower’s
non-compliance with Section 12.1, Section 12.2 and Section 12.3 of the Credit Agreement for the Fiscal Quarter ending March 29,
2013. Borrower acknowledges and agrees that the foregoing waiver shall not constitute a waiver of any Event of Default arising
under (i) any other covenant in the Credit Agreement for any period not specified herein or (ii) any financial covenant in the
Credit Agreement for any other period.

 

4.          Representations
and Warranties. Borrower hereby makes the following representations and warranties to the Lender as of the date hereof,
each of which shall survive the effectiveness of this Amendment and continue in effect as of the date hereof so long as any Obligations
remain unpaid:

 

4.1           Authorization.
Borrower has full power and authority to borrow under the Credit Agreement, as amended by this Amendment, and to execute, deliver
and perform this Amendment and any documents delivered in connection with it and all other related documents and transactions,
all of which have been duly authorized by all proper and necessary corporate action. The execution and delivery of this Amendment
by Borrower will not violate the provisions of, or cause a default under, Borrower’s Organizational Documents, any law or
any agreement to which Borrower is a party or by which it or its assets are bound.

 

4.2           Binding
Effect. This Amendment has been duly executed and delivered by Borrower, and the Credit Agreement, as amended by this Amendment,
is the legal, valid and binding obligation of Borrower enforceable against Borrower in accordance with its terms, except to the
extent that enforcement of any such obligations of the Borrower may be limited by bankruptcy, insolvency, reorganization or similar
laws of general application affecting the rights and remedies of creditors generally.

 

4.3           Consents;
Governmental Approvals. No consent, approval or authorization of, or registration, declaration or filing with, any Governmental
Authority or any other Person is required in connection with the valid execution, delivery or performance of this Amendment or
any other document executed and delivered by Borrower herewith or in connection with any other transactions contemplated hereby.

 

    	- 2 -

    	 

    

  

4.4           Representations
and Warranties. The representations and warranties contained in the Credit Agreement, as amended by this Amendment, are
true on and as of the date hereof with the same force and effect as if made on and as of the date hereof except for those
representations that by their terms are made as of a specific date.

 

4.5           No
Events of Default. No Event of Default and no event which, with notice and/or the passage of time, would constitute an Event
of Default has occurred or is continuing, except as waived by the this Amendment.

 

4.6           No
Material Misstatements. Neither this Amendment nor any document delivered to Lender by Borrower or any Credit Party to induce
Lender to enter into this Amendment contains any untrue statement of a material fact or omits to state a material fact necessary
to make the statements herein or therein not misleading in light of the circumstances in which they were made.

 

5.          CONDITIONS
OF AMENDMENT. The Lender shall have no obligation to execute or deliver this Amendment until each of the following conditions
shall have been satisfied:

 

5.1           Authorization.
Borrower shall have taken all appropriate corporate action to authorize, and its directors, if and as required by Borrower’s
Organizational Documents, shall have adopted resolutions authorizing the execution, delivery and performance of this Amendment
and the taking of all other action contemplated by this Amendment, and Lender shall have been furnished with copies of all such
corporate action, certified by an authorized officer of Borrower as being true and correct and in full force and effect without
amendment on the date hereof, and such other corporate documents as Lender may request.

 

5.2           Consents.
Borrower shall have delivered to Lender any and all consents, if any, necessary to permit the transactions contemplated by this
Amendment.

 

5.3           Fees.
Borrower shall have paid all reasonable fees and disbursements of Lender’s counsel and all recording fees, search fees, charges
and taxes in connection with this Amendment and all transactions contemplated hereby or made other arrangements with respect to
such payment as are satisfactory to Lender.

 

5.4           Deliveries.
Borrower shall have delivered to Lender, this Amendment and such additional documents, consents, authorizations, insurance certificates,
governmental consents and other instruments and agreements as Lender or its counsel may reasonably require and all documents, instruments
and other legal matters in connection with the Loan Documents shall be reasonably satisfactory to Lender and its counsel.

 

5.6           Representations
and Warranties. The representations and warranties set forth in this Amendment and in the Loan Documents shall be true, correct
and complete on the date hereof, except for those representations that by their terms are made as of a specific date.

 

5.7           No
Event of Default. No Event of Default or Default shall have occurred and be continuing on the date hereof, except as
waived by this Amendment.

 

    	- 3 -

    	 

    

  

5.8           No
Material Misstatements. Neither this Amendment nor any document delivered to Lender by or on behalf of Borrower to induce Lender
to enter into this Amendment contains any untrue statement of a material fact or omits to state a material fact necessary to make
the statements herein or therein not misleading in light of the circumstances in which they were made.

 

6.          MISCELLANEOUS.

 

6.1           Reaffirmation
of Security Documents. Borrower hereby (a) acknowledges and reaffirms the execution and delivery of the Security Documents,
(b) acknowledges, reaffirms and agrees that the security interests granted under the Security Documents continue in full force
and effect as security for all indebtedness, obligations and liabilities under the Loan Documents, as may be amended from time
to time, and (c) remakes the representations and warranties set forth in the Security Documents as of the date hereof.

 

6.2           Entire
Agreement; Binding Effect. The Credit Agreement, as amended by this Amendment, represents the entire understanding and agreement
between the parties hereto with respect to the subject matter hereof. This Amendment supersedes all prior negotiations and any
course of dealing between the parties with respect to the subject matter hereof. This Amendment shall be binding upon Borrower
and its successors and assigns, and shall inure to the benefit of, and be enforceable by the Lender and its respective successors
and assigns. The Credit Agreement, as amended hereby, is in full force and effect and, as so amended, is hereby ratified and reaffirmed
in its entirety.

 

6.3           Severability.
If any provision of this Amendment shall be determined by a court to be invalid, such provision shall be deemed modified to conform
to the minimum requirements of applicable law.

 

6.4           Headings.
The section headings inserted in this Amendment are provided for convenience of reference only and shall not be used in the construction
or interpretation of this Amendment.

 

6.5           Counterparts.
This Amendment may be executed by the parties hereto in separate counterparts (including those delivered by facsimile or other
electronic means), each of which, when so executed and delivered, shall be an original, but all such counterparts shall together
constitute one and the same instrument.

  

[signature page follows]

 

    	- 4 -

    	 

    

 

[First Amendment to Amended
and Restated Credit Facility Agreement]

 

IN WITNESS WHEREOF, the parties hereto have
caused this Amendment to be signed by their duly authorized officers as of the day and year first above written.

 

	MANUFACTURERS AND TRADERS TRUST COMPANY,
	 	 
	By:	/s/ J. Theodore Smith
	 	Name: J. Theodore Smith
	 	Title:   Vice President
	 	 
	IEC ELECTRONICS CORP.
	 	 
	By:	/s/ W. Barry Gilbert
	 	Name: W. Barry Gilbert
	 	Title:   Chairman and Chief Executive Officer

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