Document:

exv10w51

 

exhibit 10.51

Patriot Capital Funding, Inc.

274 Riverside Avenue

Westport, CT 06880

May 15, 2007

Dover Saddlery, Inc.

525 Great Road

Littleton, MA 01460

Attn: Stephen L. Day

			
	Re:	 	Waiver and Consent to the Amended and Restated Senior Subordinated Note and Warrant
Purchase Agreement (“Waiver and Consent”)

To Whom It May Concern:

Reference is made to the Amended and Restated Senior Subordinated Note and Warrant Purchase
Agreement, dated as of September 16, 2005 (the “Original Note and Warrant Purchase
Agreement”), among Dover Saddlery, Inc., a Delaware corporation (the “Parent”), Dover
Saddlery, Inc., a Massachusetts corporation and wholly-owned subsidiary of Parent d/b/a “Nashoba
Valley Service Co.” (“Operating Company #1”), Smith Brothers, Inc., a Texas corporation and
wholly-owned subsidiary of Parent (“Operating Company #2”), Dover Saddlery Retail, Inc., a
Massachusetts corporation and wholly-owned subsidiary of Parent (“Operating Company #3”)
and, together with Parent, Operating Company #1, and Operating Company #2, the “Borrower”),
Patriot Capital Funding, LLC I as successor by assignment from Patriot Capital Funding, Inc.
(“Purchaser”) and Patriot Capital Funding, Inc. (“Servicer”), as amended by
Amendment No. 1 dated March 28, 2006, among the Borrower, Purchaser and Servicer (“Amendment
No. 1”), Consent and Amendment No. 2, dated June 29, 2006, among the Borrower, Purchaser and
Servicer (“Amendment No. 2”) and Waiver and Amendment No. 3 dated March 30, 2007, among the
Borrower, Purchaser and Servicer (“Amendment No. 3”) (the Original Note and Warrant
Purchase Agreement, as amended by Amendment No. 1, Amendment No. 2 and Amendment No. 3 may be
referred to herein as the “Note and Warrant Purchase Agreement”).

Capitalized terms used herein and not otherwise defined shall have the meanings ascribed to such
terms in the applicable Note and Warrant Purchase Agreement.

The parties to the Note and Warrant Purchase Agreement desire to permanently waive an Event of
Default thereunder and, pursuant to Sections 9.10(b) and 10.2 of the Note and Warrant Purchase
Agreement, such waiver must be in a written instrument signed by Borrower, Servicer and the
Required Purchasers. Purchaser, as sole holder of the Notes, constitutes the Required Purchasers
for purposes of executing this Waiver and Consent.

Therefore, the parties hereto, intending to be legally bound, hereby agree as follows:

 

 

     1. Waiver of Event of Default. Effective upon satisfaction of all conditions to
effectiveness of this Waiver and Consent set forth in Section 5 below, Servicer and Purchaser each
hereby permanently waive, as of March 31, 2007, the following Events of Default:

          (a) the Event of Default resulting from Borrower’s breach of Section 7.3(a) of the Note and
Warrant Purchase Agreement (Funded Debt Ratio) by failing to maintain a maximum Funded Debt Ratio
for the four consecutive fiscal quarter period ended March 31, 2007 (calculated in the manner set
forth in the Note and Warrant Purchase Agreement) of not more than 4.40:1.00;

          (b) the Event of Default resulting from Borrower’s breach of Section 7.3(b) of the Note and
Warrant Purchase Agreement (Funded Senior Debt Ratio) by failing to maintain a maximum Funded
Senior Debt Ratio for the four consecutive fiscal quarter period ended March 31, 2007 (calculated
in the manner set forth in the Note and Warrant Purchase Agreement) of not more than 3.58:1.00;

          (c) the Event of Default resulting from Borrower’s breach of Section 7.3(c) of the Note and
Warrant Purchase Agreement (Operating Cash Flow to Total Debt Service) by failing to maintain a
minimum ratio of (i) Operating Cash Flow to (ii) Total Debt Service for the four consecutive fiscal
quarter period ended March 31, 2007 (calculated in the manner set forth in the Note and Warrant
Purchase Agreement) of not less than 1.15:1.00; and

          (d) the Event of Default resulting from Borrower’s breach of Section 7.3(d) of the Note and
Warrant Purchase Agreement (Minimum EBITDA Amount) by failing to maintain a minimum EBITDTA for the
four consecutive fiscal quarter period ended March 31, 2007 (calculated in the manner set forth in
the Note and Warrant Purchase Agreement) of not less than $3,150,000.

     The waiver set forth herein relates solely to the specific instances described in this Section
1 and no other waiver is granted or intended.

     2. Waiver Fee; Expenses. In consideration of the execution and delivery of this
Waiver and Consent by Servicer and Purchaser, and the accommodations contained herein, Borrower
shall pay to Servicer on the date hereof a fully earned and non-refundable fee in the amount of
Seventeen Thousand Dollars ($17,000) (the “Waiver Fee”). Borrower shall also pay all
reasonable expenses incurred by Servicer in the drafting, review, negotiation and closing of the
documents and transactions contemplated hereby, including the reasonable fees and disbursements of
Servicer’s special counsel.

     3. Reaffirmation. Except as specifically amended hereby, the Note and Warrant
Purchase Agreement shall remain unmodified and in full force and effect and are hereby reaffirmed.
In addition, except as specifically provided in Section 1 above, this Waiver and Consent shall not
be deemed a waiver of any term or condition of the Note and Warrant Purchase Agreement or any other
Transaction Document, and shall not be deemed to prejudice any right or rights which
any party may now have or may have in the future under or in connection with the Note and

-2-

 

Warrant Purchase Agreement or any other Transaction Document, as the same may be amended from time
to time.

     4. Representations. To induce Servicer and Purchaser to enter into this Waiver and
Consent, Borrower represents and warrants to each that:

          (a) all of its representations and warranties in the applicable Transaction Documents are: (i)
true and correct as of the date of this Waiver and Consent, (ii) ratified and confirmed without
condition as if made anew, and (iii) incorporated into this Waiver and Consent by reference;

          (b) no Event of Default or event that, with the passage of time or the giving of notice or
both, would constitute an Event of Default, exists under any Transaction Document that will not be
cured by the execution and effectiveness of this Waiver and Consent;

          (c) no consent, approval, order or authorization of, or registration or filing with, any third
party is required in connection with the execution, delivery and carrying out of this Waiver and
Consent or, if required, has been obtained; and

          (d) this Waiver and Consent has been duly authorized, executed and delivered so that it
constitutes the legal, valid and binding obligation of the Borrower, enforceable in accordance with
its terms.

The Borrower confirms that the obligations arising under the applicable Transaction Documents
remain outstanding without defense, set off, counterclaim, discount or charge of any kind as of the
date of this Waiver and Consent.

The Borrower further confirms that any collateral for the obligations arising under the Transaction
Documents, including liens, security interests, mortgages, and pledges granted by the Borrower or
third parties (if applicable), shall continue unimpaired and in full force and effect, and shall
cover and secure all of the Borrower’s existing and future obligations to Servicer and Purchaser,
as modified by this Waiver and Consent.

     5. Preconditions.
This Waiver and Consent is subject to Servicer having received the
following, all in form, scope and content acceptable to Servicer in its sole discretion:

          (a) this Waiver and Consent, duly executed by the parties hereto;

          (b) the consent of Old Dominion Enterprises, Inc., as guarantor of the obligations arising
under the Transaction Documents, in the form attached hereto as Attachment I;

          (c) the $17,000.00 Waiver Fee;

          (d) payment of Servicer’s fees and expenses, including legal fees; and

          (e) a waiver and amendment of the Senior Credit Agreement duly executed by the Senior Lender.

-3-

 

     6. Waiver, Release and Indemnity. To induce Servicer and Purchaser to enter into this
Waiver and Consent, the Borrower waives and releases and forever discharges Servicer, Purchaser and
their respective officers, directors, attorneys, agents and employees from any liability, damage,
claim, loss or expense of any kind that it may now have against Servicer, Purchaser or any of them
arising out of or relating to the obligations arising under the applicable Transaction Documents.
The Borrower further agrees to indemnify and hold Servicer, Purchaser and their respective
officers, directors, attorneys, agents and employees harmless from any loss, damage, judgment,
liability or expense (including attorneys’ fees) suffered by or rendered against Servicer,
Purchaser or any of them on account of any claims arising out of or relating to the obligations
arising under the applicable Transaction Documents; provided, however, that the foregoing waiver,
release and indemnity agreement shall not apply to any claims, damages, losses, liabilities,
judgments and expenses solely attributable to the gross negligence or willful misconduct of
Servicer, Purchaser or their respective officers, directors, attorneys, agents and employees. The
Borrower further states that it has carefully read the foregoing waiver, release and indemnity,
knows and understands the contents thereof and grants the same as its own free act and deed.

     7. Miscellaneous. This Waiver and Consent shall be governed by and construed in
accordance with the laws of the State of New York, without giving effect to principles of conflicts
of law. This Waiver and Consent may be executed in two or more counterparts, each of which shall
be deemed an original, but all of which together shall constitute one and the same instrument.
Delivery of an executed signature page to this Waiver and Consent by facsimile transmission shall
be as effective as delivery of a manually signed counterpart hereof or thereof. Borrower ratifies
and confirms the indemnification, confession of judgment and waiver of jury trial provisions
contained in the Note and Warrant Purchase Agreement.

[Signature page follows]

-4-

 

	 	 	 	 	 
	 	Very truly yours, 

SERVICER

PATRIOT CAPITAL FUNDING, INC.

 	 
	 	By:  	/s/ Clifford Wells
 	 
	 	 	Name:  	Clifford Wells 	 
	 	 	Title:  	Chief Investment Officer 	 
	 

	 	 	 	 	 
	 	 	 
	 	By:  	                                                  /s/ Matthew Colucci
 	 
	 	 	Name:  	Matthew Colucci 	 
	 	 	Title:  	Managing Director 	 
	 

 

 

	 	 	 	 	 	 	 
	ACKNOWLEDGED and AGREED

this 15th day of May, 2007	 	 	 	 
	 
	 	 	 	 	 	 
	PURCHASER	 	PARENT:
	 
	 	 	 	 	 	 
	PATRIOT CAPITAL FUNDING, LLC I	 	DOVER SADDLERY, INC.
	 
	 	 	 	 	 	 
	By:

	 	/s/ Clifford Wells
	 	By:
	 	/s/ Stephen L. Day
	 

	 	 
	 	 	 	 
	 

	 	Name: Clifford Wells
	 	 	 	Stephen L. Day
	 

	 	Title: Chief Investment Officer
	 	 	 	President
	 
	 	 	 	 	 	 
	By:

	 	/s/ Matthew Colucci	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name: Matthew Colucci	 	 	 	 
	 

	 	Title: Managing Director	 	 	 	 
	 
	 	 	 	 	 	 
	OPERATING COMPANY #1:	 	OPERATING COMPANY #2:
	 
	 	 	 	 	 	 
	DOVER SADDLERY, INC. d/b/a Nashoba

Valley Service Co.	 	SMITH BROTHERS, INC.
	 
	 	 	 	 	 	 
	By:

	 	/s/ Stephen L. Day
	 	By:
	 	/s/ Stephen L. Day
	 

	 	 
	 	 	 	 
	 

	 	Stephen L. Day
	 	 	 	Stephen L. Day
	 

	 	Director
	 	 	 	Director
	 
	 	 	 	 	 	 
	OPERATING COMPANY #3:	 	 	 	 
	 
	 	 	 	 	 	 
	DOVER SADDLERY RETAIL, INC.	 	 	 	 
	 
	 	 	 	 	 	 
	By:

	 	/s/ Stephen L. Day	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Stephen L. Day	 	 	 	 
	 

	 	Director	 	 	 	 

 

 

ATTACHMENT I

TO WAIVER AND CONSENT

CONSENT OF GUARANTOR

     The undersigned guarantor (the “Guarantor”) consents to the provisions of the
foregoing Waiver and Consent to the Amended and Restated Senior Subordinated Note and
Warrant Purchase Agreement (“Waiver and Consent”) and all prior amendments and
confirms and agrees that:

     (a) the Guarantor’s obligations under its Subsidiary Guaranty dated as of June 29, 2006 (the
“Guaranty”), relating to the Guaranteed Obligations defined therein, shall be unimpaired by
Waiver and Consent;

     (b) the Guarantor has no defenses, set offs, counterclaims, discounts or charges of any kind
against Servicer, Purchaser or their respective officers, directors, employees, agents or attorneys
with respect to its Guaranty; and

     (c) all of the terms, conditions and covenants in its Guaranty remain unaltered and in full
force and effect and are hereby ratified and confirmed and apply to the Obligations, as modified by
Waiver and Consent.

     The Guarantor certifies that all representations and warranties made in its Guaranty are true
and correct. Further, Guarantor hereby confirms that any collateral for the Obligations, including
liens, security interests, mortgages, and pledges granted by the Guarantor or third parties (if
applicable), shall continue unimpaired and in full force and effect, and shall cover and secure all
of the Guarantor’s existing and future Obligations to Servicer and Purchaser, as modified by Waiver
and Consent and subject to the Subordination Agreement. The Guarantor ratifies and confirms the
indemnification, confession of judgment and waiver of jury trial provisions contained in its
Guaranty.

     WITNESS the due execution of this Consent as a document under seal as of the date of Waiver
and Consent, intending to be legally bound hereby.

	 	 	 	 	 
	 	OLD DOMINION ENTERPRISES, INC.

 	 
	 	By:  	/s/ Stephen L. Day
 	 
	 	 	Name:  	Stephen L. Day 	 
	 	 	Title:  	Director<PAGE>

   Confidential Materials omitted and filed separately with the Securities and
                Exchange Commission. Asterisks denote omissions.

                                                                    Exhibit 10.1

                      FIRST AMENDMENT TO LICENSE AGREEMENT
                                 BY AND BETWEEN

                           BOSTON LIFE SCIENCES, INC.

                                       AND

                            BIOAXONE THERAPEUTIC INC.

This first Amendment to the License Agreement (the "License") between Boston
Life Sciences, Inc. ("BLSI") and BioAxone Therapeutic, Inc. ("BA") dated as of
December 28, 2006 is made effective as of March 23, 2007.

For good and valuable consideration BLSI and BA hereby agree that the Licensed
Patent Rights described in Section 1.34 of the License and the therein
referenced Exhibit B is amended to include the following addition to Table 1 of
said Exhibit B:

<TABLE>
<CAPTION>
Country   Application Number   Filing Date   Patent Number   Status   Title
-------   ------------------   -----------   -------------   ------   -----
<S>       <C>                  <C>           <C>             <C>      <C>
[**]      [**]                 [**]          [**]            [**]     [**]
</TABLE>

The parties further agree that said Table 1 of said Exhibit B is updated as
follows for purposes of clarification:

<TABLE>
<CAPTION>
Country   Application Number   Filing Date   Patent Number   Status   Title
-------   ------------------   -----------   -------------   ------   -----
<S>       <C>                  <C>           <C>             <C>      <C>
[**]      [**]                 [**]          [**]            [**]     [**]
REPLACE ABOVE WITH:
[**]      [**]                 [**]          [**]            [**]     [**]
</TABLE>

IN WITNESS WHEREOF, the parties have executed this First Amendment as of the
date first set forth above.

BOSTON LIFE SCIENCES, INC.

By /s/ Kenneth L. Rice
   ----------------------------------
Title EVP & CFO

BIOAXONE THERAPEUTIC INC.

By /s/ Frank Bobe
   ----------------------------------
Title President & CEO

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