Document:

exv10w48

 

AMENDMENT 10.48

FOURTH AMENDMENT TO ACCOUNT TRANSFER

AND PURCHASE AGREEMENT

     THIS FOURTH AMENDMENT TO ACCOUNT TRANSFER AND PURCHASE AGREEMENT (this “Amendment”) is
entered into by and between AESP, INC., a Florida corporation (“Seller”), Slav Stein and Roman
Briskin (collectively, the “Guarantors”) and MARQUETTE COMMERCIAL FINANCE, INC., a Minnesota
corporation (“MCF”).

     WHEREAS, Seller and KBK Financial, Inc., a Delaware corporation (“KBK Delaware”) entered into
that certain Account Transfer and Purchase Agreement dated as of September 18, 2003, as amended
from time to time (collectively, the “Purchase Agreement”), such agreement, and all rights and
obligations thereunder, having been assigned by KBK Delaware to KBK Financial, Inc., a Minnesota
corporation (now known as MCF) pursuant to a Bill of Sale dated November 24, 2003; and

     WHEREAS, pursuant to the Purchase Agreement the parties have provided for the terms and
conditions under which MCF may from time to time purchase certain of Seller’s accounts; and

     WHEREAS, the Purchase Agreement and all other documents securing, governing, guaranteeing
and/or pertaining to the Purchase Agreement are hereinafter referred to collectively as the
“Purchase Documents”; and

     WHEREAS, the parties hereto now desire to modify the Purchase Agreement as hereinafter
provided;

     NOW, THEREFORE, in consideration of the mutual covenants, representations, warranties, and
agreements contained herein, and for other valuable consideration, the receipt and legal
sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

ARTICLE I

Definitions

Section 1.01 The terms used in this Amendment to the extent not otherwise defined herein shall
have the same meanings as in the Purchase Agreement.

ARTICLE II

Amendments

Section 2.01 Effective as of the date hereof, the second paragraph of Section 4 to the Purchase
Agreement is replaced in its entirety to read as follows:

     ““Initial Payment” means Eighty percent (80.00%) of the Gross Amount “Gross Amount” of
an account means the gross face amount payable pursuant to the related invoice. “Net
Amount” of an account means the Gross Amount of such account, less all permitted discounts,
deductions and allowances. “Residual Payment” with respect to an account means the
aggregate amount collected with respect to such account, less the sum of (i) the Initial
Payment with respect to such account, (ii) the MCF Discounts (as hereinafter defined), (iii)
any and all attorneys’ fees and other costs of collection.”

Section 2.02 Effective as of the date hereof, the “Fixed Discount” means a discount of one and
three-tenths percent (1.30%) of the Gross Amount of such account.

Section 2.03 Effective as of the date hereof, the Addendum attached to the Purchase Agreement is
hereby replaced in its entirety with the Addendum attached hereto.

ARTICLE III

Representations, Warranties, Ratification and Reaffirmation

Section 3.01 Seller hereby represents and warrants that: (i) the representations and warranties
contained in the Purchase Agreement are true and correct on and as of the date hereof as though
made on and as of the date hereof, and (ii) no event has

 

 

occurred and is continuing that constitutes an Event of Default or would constitute an Event of
Default but for the requirement of notice or lapse of time or both.

Section 3.02 The terms and provisions set forth in this Amendment shall modify and supersede all
inconsistent terms and provisions set forth in the Purchase Agreement, but except as expressly
modified and superseded by this Amendment, the terms and provisions of the Purchase Agreement are
ratified and confirmed and shall continue in full force and effect, Seller hereby agreeing that the
Purchase Agreement and the other Purchase Documents are and shall continue to be outstanding,
validly existing and enforceable in accordance with their respective terms.

Section 3.03 Guarantors previously executed that certain Limited Guaranty (the “Guaranty
Agreement”) dated September 18, 2003 for the benefit of MCF to unconditionally guarantee the
payment by Seller of certain losses incurred by MCF under the Purchase Agreement, as more fully
described therein. Guarantors, by executing this Amendment, hereby consent to this Amendment and
agree that, notwithstanding the execution of this Amendment, the Guaranty Agreement remains in full
force and effect and the obligations thereunder remain valid and binding against Guarantors.

ARTICLE IV

Miscellaneous

Section 4.01 Each of the Purchase Documents is hereby amended so that any reference in the
Purchase Documents to the Purchase Agreement shall mean a reference to the Purchase Agreement as
amended hereby.

Section 4.02 This Amendment may be executed simultaneously in one or more counterparts, each of
shall be deemed an original, but all of which together shall constitute one and the same
instrument. Delivery of an executed counterpart of this Amendment by telecopy shall be equally as
effective as delivery of a manually executed counterpart of this Amendment. Any party delivering
an executed counterpart of this Amendment by telecopy also shall deliver a manually executed
counterpart of this Amendment but the failure to deliver a manually executed counterpart shall not
affect the validity, enforceability, and binding effect of this Amendment.

Section 4.03 The Agreement and this Amendment have been entered into in Tarrant County, Texas and
shall be performable for all purposes in, Tarrant County, Texas. THE AGREEMENT, AS AMENDED HEREBY,
SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF TEXAS. Courts
within the State of Texas shall have jurisdiction over any and all disputes arising under or
pertaining to the Agreement, as amended hereby, and venue in any such dispute shall be the courts
located in Tarrant County, Texas.

Section 4.04 This Amendment shall not become effective until executed by MCF.

Section 4.05 SELLER AND GUARANTORS EACH HEREBY ACKNOWLEDGES THAT IT HAS NO DEFENSE,
COUNTERCLAIM, OFFSET, CROSS-COMPLAINT, CLAIM OR DEMAND OF ANY KIND OR NATURE WHATSOEVER THAT CAN BE
ASSERTED TO REDUCE OR ELIMINATE ALL OR ANY PART OF ITS LIABILITY TO REPAY THE INDEBTEDNESS AND
OBLIGATIONS NOW OR HEREAFTER OWING BY SELLER AND GUARANORS TO MCF OR TO SEEK AFFIRMATIVE RELIEF OR
DAMAGES OF ANY KIND OR NATURE FROM MCF. SELLER AND GUARANTORS EACH HEREBY VOLUNTARILY AND KNOWINGLY
RELEASES AND FOREVER DISCHARGES MCF, ITS PREDECESSORS, AGENTS, EMPLOYEES, SUCCESSORS AND ASSIGNS,
FROM ALL POSSIBLE CLAIMS, DEMANDS, ACTIONS, CAUSES OF ACTION, DAMAGES, COSTS, EXPENSES, AND
LIABILITIES WHATSOEVER, KNOWN OR UNKNOWN, ANTICIPATED OR UNANTICIPATED, SUSPECTED OR UNSUSPECTED,
FIXED, CONTINGENT, OR CONDITIONAL, AT LAW OR IN EQUITY, ORIGINATING IN WHOLE OR IN PART ON OR
BEFORE THE DATE THIS AMENDMENT IS EXECUTED, WHICH SELLER AND GUARANTORS MAY NOW OR HEREAFTER HAVE
AGAINST MCF, ITS PREDECESSORS, AGENTS, EMPLOYEES, SUCCESSORS AND ASSIGNS, IF ANY, AND IRRESPECTIVE
OF WHETHER ANY SUCH CLAIMS ARISE OUT OF CONTRACT, TORT, VIOLATION OF LAW OR REGULATIONS, OR
OTHERWISE, INCLUDING WITHOUT LIMITATION, ANY SUCH CLAIMS ARISING FROM THE CONTRACTING FOR,
CHARGING, TAKING, RESERVING, COLLECTING OR RECEIVING INTEREST IN EXCESS OF THE HIGHEST LAWFUL RATE
APPLICABLE, THE EXERCISE OF ANY RIGHTS AND REMEDIES UNDER THE PURCHASE AGREEMENT OR OTHER PURCHASE
DOCUMENTS, AND THE NEGOTIATION FOR AND EXECUTION OF THIS AMENDMENT.

Section 4.6 THE PURCHASE AGREEMENT AND THE OTHER PURCHASE DOCUMENTS, EACH AS AMENDED
HEREBY, REPRESENT THE FINAL AGREEMENT BETWEEN THE PARTIES HERETO WITH RESPECT TO THE TRANSACTIONS
CONTEMPLATED HEREIN AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR
SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE
PARTIES.

 

 

Section 4.07 Seller agrees to pay MCF a fee equal to $5,000 contemporaneously with the
effectiveness of this Amendment in consideration of the financial accommodations provided by MCF to
Seller contained herein.

     EXECUTED as of March 30, 2005.

	 	 	 	 	 
	 	 	SELLER:
	 
	 	 	 	 
	 	 	AESP, INC.
	 
	 	 	 	 
	

	 	By:
	 	/s/ Slav Stein
	

	 	 	 	 
	

	 	Name:
	 	Slav Stein
	

	 	Title:
	 	President and CEO
	 
	 	 	 	 
	 	 	GUARANTORS:
	 
	 	 	 	 
	 	 	/s/ Slav Stein
	 	 	 
	 	 	SLAV STEIN
	 
	 	 	 	 
	 	 	/s/ Roman Briskin
	 	 	 
	 	 	ROMAN BRISKIN
	 
	 	 	 	 
	 	 	MCF:
	 
	 	 	 	 
	 	 	MARQUETTE COMMERCIAL FINANCE, INC.
	 
	 	 	 	 
	

	 	By:
	 	/s/ Melissa K. Vance
	

	 	 	 	 
	

	 	Name:
	 	Melissa K. Vance
	

	 	Title:
	 	Legal Administrator
	

	 	Date:
	 	4-4-05

 

 

ADDENDUM

to Account Transfer and Purchase Agreement between KBK Financial, Inc., now known as Marquette
Commercial Finance, Inc. (“MCF”) and AESP, Inc., a Florida corporation (“Seller”) dated September
18, 2003 (the “Agreement”).

This Addendum modifies and supplements the Agreement as follows:

	1.  	Financial Covenants. Seller agrees to maintain the following financial covenants
while this Agreement remains in effect:

	 	(a)  	Current Ratio. At the end of each of January, 2005 and February, 2005, a
ratio, calculated on a pro forma basis (i.e., add back in purchased accounts and
factored balance), of (i) current assets (excluding prepaid expenses), to (ii) current
liabilities of not less than less than .45 to 1.0. At the end of each of the months of
March through November, 2005, a ratio, calculated on a pro forma basis (i.e., add back
in purchased accounts and factored balance), of (i) current assets (excluding prepaid
expenses), to (ii) current liabilities of not less than less than .55 to 1.0. At the
end of December, 2005, a ratio, calculated on a pro forma basis (i.e., add back in
purchased accounts and factored balance), of (i) current assets (excluding prepaid
expenses), to (ii) current liabilities of not less than less than .60 to 1.0
	 
	 	(b)  	Tangible Net Worth. At the end of each month from January, 2005 through May,
2005, its Tangible Net Worth at not less than ($1,550,000.00). At the end of each
month from June, 2005, through November, 2005, its Tangible Net Worth at not less than
($1,400,000). At the end of December, 2005, its Tangible Net Worth at not less than
($1,300,000).
	 
	 	(c)  	Dilution. Seller covenants and agrees that at the end of each fiscal month
during the effectiveness of this Agreement, the Seller’s Dilution shall not exceed six
percent (6%). As used herein, the term “Dilution” means for any period of time
the percentage obtained by dividing (a) the aggregate amount of credit memos, discounts
and other downward adjustments to the original invoiced price of inventory sold or
services rendered by Seller during such period, by (b) gross sales for such period, all
as determined by MCF.

	   	As used herein, the term “Tangible Net Worth” shall mean, as of any date, the amount by
which Seller’s total assets exceeds its total liabilities, plus Subordinated Debt, less any
intangible assets (as defined by generally accepted accounting principles, including,
without limitation, trademarks, patents, copyrights, goodwill, covenants not to compete and
customer lists), less deferred charges. The term “Subordinated Debt” shall mean
indebtedness owing by Seller to a creditor other than MCF which has been subordinated and
subject in right of payment to the prior payment of all indebtedness and obligations now or
hereafter owing by Seller to MCF, such subordination to be evidenced by a written agreement
between Seller and the subordinated creditor which is in form and substance satisfactory to
MCF.

	 	 	 	 	 
	 	 	AESP, Inc.
	 
	 	 	 	 
	

	 	By:
	 	/s/ Slav Stein
	

	 	 	 	 
	

	 	Name:
	 	Slav Stein
	

	 	Title:
	 	President and CEO
	 
	 	 	 	 
	 	 	MARQUETTE COMMERCIAL FINANCE, INC.
	 
	 	 	 	 
	

	 	By:
	 	/s/ Melissa K. Vance
	

	 	 	 	 
	

	 	Name:
	 	Melissa K. Vance
	

	 	Title:
	 	Legal Administratorexv10w49

 

EXHIBIT 10.49

FIRST AMENDMENT TO LOAN AGREEMENT AND NOTE, WAIVER AND CONSENT

     THIS FIRST AMENDMENT TO LOAN AGREEMENT AND NOTE, WAIVER AND CONSENT (this “First Amendment”)
is made and entered into as of April 28, 2005, by and among AESP, INC., a Florida corporation
(“AESP”), SLAV STEIN (“STEIN”), ROMAN BRISKIN (“BRISKIN”) (collectively, the “Borrowers”),
and BENDES INVESTMENT LTD, a Hong Kong Limited (“BENDES”), as Lender (the “Lender”)

WITNESSETH:

     WHEREAS, the Borrowers and Lender are party to that certain Loan Agreement (“Loan Agreement”)
and Secured Promissory Note (“Promissory Note”) dated as of April 16, 2004, the loan amount (as
defined in the Loan Agreement) thereunder being Six Hundred Thirty One Thousand Dollars ($631,000);

     WHEREAS, the Borrowers have requested an extension of the due date for the Loan Agreement and
Promissory Note until October 27, 2005;

     WHEREAS, subject to the terms and conditions of this First Amendment, the Lender is willing
to extend the due date of the Loan Agreement and Promissory Note until October 27, 2005;

     NOW THEREFORE, in consideration of the premises and the mutual covenants contained herein, the
Borrower and Lender agree as follows:

TERMS:

     1. Defined Terms. Capitalized but undefined terms herein shall have the meanings given
to them in the Loan Agreement.

     2. Amendments to Loan Agreement. The Loan Agreement is amended as follows:

          2.1 The tenth Recital is amended and restated as follows:

     “WHEREAS, this Loan Agreement, the Bendes Promissory Note, the Bendes Security Agreement, the
Bendes Guaranty, and the First Amendment, shall collectively be referred to as the “TRANSACTION
DOCUMENTS”;

          2.2 The final sentence of Section 2 of the Loan Agreement is amended and restated as follows:

 

 

          “The entire principal balance of the Bendes loan together with accrued but unpaid interest and
such other amounts payable by AESP to Bendes under the Bendes Promissory Note shall be due and
payable on or before October 27, 2005, and shall otherwise be payable in accordance with the terms
and subject to the conditions set forth in the Bendes Promissory Note”

     3. Amendment to Promissory Note. The Promissory Note is amended as follows:

          3.1 The first sentence of Section 2 of the Promissory Note is amended and restated as follows:

          “The full principal amount of this Note shall be due and payable on October 27, 2005, but if
the date that such payment is due is not on a business day, then payment shall be due on the next
following business day”

     4. Reaffirmation. Each of the Borrowers hereby reaffirms all covenants,
representations, and warranties made by it, and all Obligations owed by it, pursuant to the Loan
Agreement and Promissory Note (to the extent the same are not amended herein) to which it is a
party and agree that all such covenants, representations and warranties shall be deemed to have
been remade as of the date this First Amendment becomes effective (unless a representation and
warranty is stated to be given on and as of a specific date, in which case such representation and
warranty shall be true, correct, and complete as of such date, except to the extent, if any,
amended hereby).

     5. Limited Waiver and Consent. The Lender hereby waives its rights with respect to
(and solely with respect to) the Event of Default under the Security Agreement arising by reason of
the Borrowers having granted a second priority security interest in its goods and inventory to Chao
Jui Hsia pursuant to that certain Promissory Note dated November 22, 2004 (the “Chao Note”). The
Lender also consents to the Chao Note.

     6. Reference to and Effect on the Loan Agreement and Promissory Note. Except as
specifically amended or agreed to herein, the Loan Agreement, Promissory Note, the Bendes Security
Agreement, the Bendes Guaranty and any other agreement or document executed in connection with the
Transaction Documents shall remain in full force and effect and are hereby ratified and confirmed.

     7. Execution in Counterparts. This First Amendment may be executed in any number of
counterparts and by different parties hereto in separate counterparts, each of which when so
executed and delivered shall be deemed to be an original and all of which taken together shall
constitute one and the same document. Delivery of an executed counterpart of the First Amendment by
facsimile shall have the same effect as delivery of a manually executed counterpart of this First
Amendment.

     8. Governing Law. This First Amendment shall be governed by and construed in
accordance with the laws of the State of Florida.

 

 

     9. Headings. Section headings in this First Amendment are included herein for the
convenience of reference only and shall not constitute a part of this First Amendment for any other
purpose.

     10. Release of Claims. To induce Bendes to enter into this agreement, and for other
good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the
Borrowers hereby release, discharge, and acquit forever Bendes and its officers, trustees, agents,
employees, and counsel (in each case, past, present, or future) from any and all liabilities,
claims, defenses, demands, actions, causes of action, judgments, deficiencies, interest, liens,
cost, or expenses (including court costs, penalties, attorneys’ fees and disbursements and amounts
paid in settlement) of any kind and character whatsoever, including claims for usury, breach of
contract, breach of commitment, negligent misrepresentation or failure to act in good faith, in
each case whether now known or unknown, suspected or unsuspected, asserted or unasserted or primary
or contingent, and whether arising out of written documents, underwritten undertakings, course of
conduct, tort, violations of laws or regulations or otherwise, with respect to the Loan Agreement
and the other Transaction Documents and the transactions arising or contemplated hereunder,
existing as of or arising on or prior to the Effective Date.

[Remainder of Page Intentionally Left Blank]

 

 

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

	 	 	 
	

	 	AESP, INC., as Borrower
	 
	

	 	By /s/ Roman Briskin
	

	 	 
	 
	 	 
	

	 	SLAV STEIN, as Borrower
	 
	 	 
	

	 	By: /s/ Slav Stein
	

	 	 
	

	 	Slav Stein
	 
	 	 
	

	 	ROMAN BRISKIN, as Borrower
	 
	 	 
	

	 	By: /s/ Roman Briskin
	

	 	 
	

	 	Roman Briskin
	 
	 	 
	

	 	BENDES INVESTMENT LTD, as Lender
	 
	 	 
	

	 	By: /s/ Dr. Matthias W. Rickenbach

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