LAURUS MASTER FUND, LTD. c/o M&C Corporate Services Limited P.O. Box 309 GT Ugland House South Church Street George Town Grand Cayman, Cayman Islands May 4, 2007
Exhibit 10.11
LAURUS MASTER FUND, LTD.
c/o M&C Corporate Services Limited
X.X. Xxx 000 XX
Xxxxxx House
South Church Street
Xxxxxx Town
Grand Cayman, Cayman Islands
May 4, 2007
XxxxXxx.xxx Inc.
0 Xxxxxxxxx Xxxx, Xxxxxxxx 000
Xxxxxxx, XX 00000
Attn: Xxxxxxx Xxxxxx
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Re: Restricted Account: Account Number 000-000-0000, |
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Account Name: Laurus Master Fund - TUYU, maintained at North Fork Bank (the “Restricted Account”). |
Reference is made to (i) that certain Amended and Restated Securities Purchase Agreement, dated as of March 4, 2007 (as amended, modified, restated or supplemented from time to time, the “Purchase Agreement”), by and between XxxxXxx.xxx Inc., a Delaware corporation (the “Company”), and Laurus Master Fund, Ltd. (the “Purchaser”); (ii) that certain Restricted Account Agreement, dated as of May 4, 2007 (as amended, modified, restated or supplemented from time to time, the “Restricted Account Agreement”), by and among the Company, Laurus and North Fork Bank (the “Bank”). Capitalized terms used but not defined herein shall have the meanings ascribed them in the Purchase Agreement or the Restricted Account Agreement, as applicable.
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I. |
Funding Amount. |
Pursuant to Section 3.2 of the Purchase Agreement, the Company is required to place $12,914,256.61 (the “Funding Amount”) in the Restricted Account and, subject to the provisions of this letter, the Purchase Agreement and any Related Agreement, maintain such amount in the Restricted Account until such time as the Company and its Subsidiaries shall have satisfied all of the Funding Amount Conditions (as defined herein) and to assign the Restricted Account for the benefit of the Purchaser as security for the performance of the Company’s obligations to the Purchaser.
The Purchaser and the Company desire to clarify certain aspects regarding the use of the Funding Amount contained in the Restricted Account, and for good consideration, the receipt and sufficiency of which is here acknowledged, the Company and the Purchaser agree that, upon the satisfaction of the Funding Amount Conditions, the Purchaser shall direct the Bank, pursuant to a Release Notice (as defined in the Restricted Account Agreement), to wire the Funding Amount to such bank account as the Company may direct the Purchaser in writing. The Purchaser shall not be under any obligation to release any amount pursuant to this paragraph and the release of such
amounts shall be in the Purchaser’s sole and absolute discretion. Releases in accordance with the cash requirements of the Company, as outlined in the Budget attached hereto as Exhibit A (the “Budget”), shall not deviate from the amounts detailed in the Budget by greater than 10% of such amount.
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II. |
General. |
In the event of any Event of Default under the Purchase Agreement or under any of the Related Agreements the Funding Amount and the Interest Amount shall revert to the Purchaser, and the Purchaser reserves all rights and remedies contained in the Purchase Agreement and the Related Agreements.
This letter may not be amended or waived except by an instrument in writing signed by the Company and the Purchaser. This letter may be executed in any number of counterparts of the entire document or of the signature pages hereto, each of which shall be an original and all of which, when taken together, shall constitute one agreement. Delivery of an executed signature page of this letter by facsimile transmission shall be effective as delivery of a manually executed counterpart hereof or thereof, as the case may be. This letter shall be governed by, and construed in accordance with, the laws of the State of New York. This letter sets forth the entire agreement between the parties hereto as to the matters set forth herein and supersede all prior communications, written or oral, with respect to the matters herein.
If the foregoing meets with your approval please signify your acceptance of the terms hereof by signing below.
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Signed, |
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Laurus Master Fund, Ltd. |
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By: |
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Name: |
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Title: |
Agreed and Accepted this 4th day of May 2007.
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XxxxXxx.xxx Inc. |
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By: |
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Name: |
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Title: |
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Schedule A
Budget