EXHIBIT 10.48
AMENDMENT TO SECURITY AGREEMENT
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This Amendment (the "Amendment") to Security Agreement is effective as of
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May 11, 2001, by and among XxxxxxXxxxxxx.xxx, a Delaware corporation (the
"Debtor"), and a Majority in Interest of the Secured Parties (as defined in the
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Security Agreement), and amends that certain Security Agreement (the "Security
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Agreement") dated May 10, 2001. Capitalized terms used but not defined herein
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shall have the meanings given such terms in the Security Agreement.
RECITALS
A. The Debtor and the Secured Parties are parties to the Security
Agreement, pursuant to which the Debtor granted to the Secured Parties security
interest in the Collateral (as defined in the Security Agreement).
B. The Debtor and a majority in interest of the Secured Parties may amend
the Security Agreement pursuant to Section 12.
In consideration of the mutual promises contained herein, the parties agree
as follows:
1. Amendment.
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a. Section 6(ii) of the Security Agreement is hereby amended to read in
its entirety as follows (with the amended language highlighted in bold):
"if the outstanding amount of principal under the Notes exceeds
the sum of (i) fifty percent (50%) of the inventory as stated
in the Company's latest monthly inventory and accounts
receivable report, which shall reflect the Company's best
estimate of appropriate net adjustments and write-downs for
impairment (the "Inventory/A/R Report"), as reported to the
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Secured Parties, plus (ii) eighty percent (80%) of the accounts
receivable that are not more than 90 days past due, net of
reserves as stated in the Company's latest Inventory/A/R
Report, as reported to the Secured Parties, and the Company
does not cure such default within ten (10) days thereafter; or"
b. Section 10 of the Security Agreement is hereby amended to read in its
entirety as follows (with the amended language highlighted in bold):
"Power of Attorney. A Majority in Interest of the Secured Parties may at
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any time in writing appoint a representative as the true and lawful attorney-
in-fact for the Secured Parties with full power of substitution to execute on
behalf of the Secured Parties a financing statement covering the Collateral,
and any and all financing statements, continuation statements and amendments
thereto and all releases and
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termination statements relating thereto as may be designated in
writing by a Majority in Interest of the Secured Parties."
2. Counterparts. This Amendment may be executed in two or more
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counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument.
[Signature Page Follows]
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IN WITNESS WHEREOF, the parties hereto have executed this Amendment to
Security Agreement effective as of the date first above written.
DEBTOR: XXXXXXXXXXXXX.XXX
By: /s/ C. Xxxx Xxxxx
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Name: C. Xxxx Xxxxx
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Title: Chief Executive Officer
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SECURED PARTIES
PORRIDGE, LLC
By: /s/ Xxxxxx X. Xxxxxxx
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Name: Xxxxxx X. Xxxxxxx
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Title: Managing Partner
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PAW OFFSHORE FUND, LTD.
By: /s/ Xxxx Xxxxxxxxx
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Name: Xxxx Xxxxxxxxx
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Title: Chief Op. Officer of Inv. Advisor
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PAW PARTNERS , LP.
By: /s/ Xxxx Xxxxxxxxx
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Name: Xxxx Xxxxxxxxx
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Title: Chief Op. Officer of G.P.
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SIGNATURE PAGE TO AMENDMENT TO SECURITY AGREEMENT
HELZEL XXXXXXXX, X.X.
By: /s/ Xxxxxxxx X. Xxxxxx
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Name: Xxxxxxxx X. Xxxxxx
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Title: General Partner
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HORNTHAL LIVING TRUST
By: /s/ Xxxxx Xxxxxxxx
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Name: Xxxxx Xxxxxxxx
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Title: Trustee
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C. XXXX XXXXX
By: /s/ C. Xxxx Xxxxx
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Name: Xxxx X. Xxxxxxxxxxxx
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Title: ____________________________________
BANK ONE TRUST COMPANY, N.A. AS TRUSTEE OF
XXXXXX X. CHEZ XXX
By: /s/ Xxxx X. Xxxxxxxxxxxx
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Name: Xxxx X. Xxxxxxxxxxxx
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Title: Vice President
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SIGNATURE PAGE TO AMENDMENT TO SECURITY AGREEMENT
XXX X. AND XXXXXXXX XXXXXX LIVING TRUST
By: /s/ Xxx X. Xxxxxx
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Name: Xxx X. Helzlel
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Title: Trustee
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XXXXX X. XXXXXXXXX
By: /s/ Xxxxx X. Xxxxxxxxx
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Name: Xxxxx X. Xxxxxxxxx
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Title: ____________________________________
THE XXXXXXX AND XXXX XXXXXXXXX REVOCABLE
TRUST DATED 1/6/00
By: /s/ Xxxxxxx X. Xxxxxxxxx
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Name: Xxxxxxx X. Xxxxxxxxx
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Title: Trustee
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XXXXX XXXX
By: /s/ Xxxxx Xxxx
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Name: Xxxxx Xxxx
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Title: ____________________________________
SIGNATURE PAGE TO AMENDMENT TO SECURITY AGREEMENT
UBS PAINEWEBBER INC., NOT IN ITS CORPORATE
CAPACITY BUT SOLELY AS CUSTODIAN FOR THE
INDIVIDUAL RETIREMENT ACCOUNT OF XXXXXXX
XXXXXXXXX XXXXX XX.
By: /s/ Xxxxxxx Xxxxxxxx
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Name: Xxxxxxx Xxxxxxxx
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Title: President
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THE XXXXX R.E. XXXXXXX SEPARATE PROPERTY
REVOCABLE TRUST, DATED FEBRUARY 16, 2001
By: /s/ Xxxxx R.E. Xxxxxxx
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Name: Xxxxx R.E. Xxxxxxx
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Title: Trustee
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SIGNATURE PAGE TO AMENDMENT TO SECURITY AGREEMENT
