AMENDMENT NO. 1 TO CREDIT AGREEMENT
AMENDMENT
NO. 1 TO CREDIT AGREEMENT
This
AMENDMENT NO. 1 (this “Amendment”) to the SECURED LINE OF CREDIT
AGREEMENT dated as of February 1, 2007 (the “Credit Agreement”) by and
between FURSA ALTERNATIVE STRATEGIES, LLC, as the lender (the “Lender”)
and VERSADIAL, INC. (formerly known as XXXXXXXXXXXXX.XXX), as the borrower
(the
“Borrower”) is made and entered into as of this 9th day of July 2007 by
and between the Lender and the Borrower. Capitalized terms used but not defined
in this Amendment have the meanings assigned to them in the Credit Agreement.
RECITALS
WHEREAS,
the Lender and the Borrower entered into the Credit Agreement pursuant to which,
the Lender agrees to extend to the Borrower a revolving line of credit which
in
aggregate will not exceed $3,000,000 (the “Maximum Amount”);
WHEREAS,
upon the request of the Borrower, the Lender agrees to amend the Credit
Agreement to provide for, among other matters, the increase of the Maximum
Amount to $4,000,000: and
WHEREAS,
upon the request of the Borrower, under the terms and conditions of this
Amendment, the Lender waives its right to claim an Event of Default, through
September 30, 2007, of the Borrower’s failure to appoint a chief operating
officer on or prior to April 30, 2007 and to meet cumulative operating profit
requirements as set forth in clauses (ii) and (vi) of Section 16 (a) of the
Credit Agreement (the “Limited Defaults”).
NOW,
THEREFORE, in consideration of the foregoing and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged,
the
Lender and the Borrower agree as follows:
I.
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AMENDMENTS
TO THE CREDIT AGREEMENT
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A. Maximum
Amount. The first paragraph of the recital in the Credit Agreement is deleted
in
its entirety and replaced with the following:
“WHEREAS,
the Borrower has requested a line of credit from the Lender which will be a
revolving line of credit in the amount of $4,000,000 (the “Maximum
Amount”) in accordance with the terms of this Agreement; and”.
B. Fees.
Section 9 of the Credit Agreement is amended herby to add a subsection (c)
that
reads as the following:
“(c)
The
Borrower shall pay to the Lender on the date of the Lender’s execution of an
Amendment No. 1 to this Agreement (the “Amendment No. 1”), as a condition
precedent to the Lender’s obligations thereunder, a non-refundable arrangement
fee equal to $30,000, which arrangement fee shall be deemed earned in full
by
the Lender upon the Lender’s execution of the Amendment No. 1.”
II.
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DELIVERY
OF AN ADDITIONAL NOTE
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The
Borrower agrees to evidence this
Amendment and advances made pursuant to the Credit Agreement, as amended hereby,
by delivering a line of credit grid note dated the date hereof in the form
attached at Exhibit A to this Amendment, which shall replace the line of
credit grid note originally delivered pursuant to the Credit Agreement and
which
original note shall be marked cancelled and returned to the Borrower.
III. |
Waiver
of Default
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The
Lender shall waive its right to
claim an Event of Default of the Limited Defaults of the Borrower; provided,
that, (i) the Borrower shall pay the Lender a waiver fee of $50,000 upon
September 30, 2007 or receipt of funding by the Borrower, whichever is earlier,
and (ii) the Borrower shall have agreed no later than September 30, 2007 to
a
comprehensive financing plan that addresses all funding needs of the Borrower
for at least 18 months following September 30, 2007 (the “Financing
Plan”). The failure of the Borrower to pay the waiver fee when due in
accordance with the preceding sentence shall, without further act, invalidate,
negate and render void the waiver granted in the preceding sentence. If the
Borrower has not appointed a chief operating officer pursuant to clause (ii)
of
Section 16 (a) of the Credit Agreement or have not agreed to the Financing
Plan
on or prior to September 30, 2007, the waiver set forth in this Amendment shall
terminate immediately.
IV. |
GENERAL
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A. All
the references to the Credit Agreement in the Loan Documents, other than those
in Section 9 of the Credit Agreement, shall mean the Credit Agreement as amended
hereby. All the references to the Maximum Amount in the Loan Documents shall
mean the Maximum Amount as amended hereby.
B. All
the representations and warranties under Section 15 of the Credit Agreement
are
valid and effective as of the date hereof.
C. This
Amendment and any waiver contained herein shall be effective only in the
specific instance and for the specific purpose for which given. Except as
effected by this Amendment, the terms and provisions of the Credit Agreement
shall remain unchanged and in full force and effect.
D. This
Amendment may be executed in one or more counterparts and via facsimile, each
of
which shall be deemed to be an original but all of which shall constitute one
and the same original agreement.
E. This
Amendment shall be governed by and constructed in accordance with the laws
of
the State of New York.
F. This
Amendment shall become effective immediately upon execution by the Lender and
the Borrower.
G. This
Amendment supersedes anything to the contrary contained in the Loan Documents.
[REMAINDER
OF PAGE INTENTIONALLY LEFT BLANK]
IN
WITNESS WHEREOF,
the parties have caused this Amendment to be duly executed as of the date set
forth in the first paragraph of this Amendment.
LENDER:
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FURSA ALTERNATIVE STRATEGIES, LLC | |
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By: | /s/ Xxxxxxx X. Xxxxxx, III | |
Name: | Xxxxxxx X. Xxxxxx, III | |
Title: | Chief Investment Officer | |
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BORROWER:
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By:
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/s/
Xxxxxxxx Xxxxxxxxx
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Name:
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Xxxxxxxx
Xxxxxxxxx
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Title:
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Chief
Executive Officer
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[SIGNATURE
PAGE TO AMENDMENT NO. 1 TO CREDIT AGREEMENT]
Exhibit
A
LINE
OF CREDIT GRID NOTE
Maximum
Principal Amount: $4,000,000 Date: July __,
2007
FOR
VALUE
RECEIVED, the undersigned, Versadial, Inc. (formerly known as Xxxxxxxxxxxxx.xxx,
Inc.), a Nevada corporation (the “Borrower”), HEREBY PROMISES TO PAY to
the order of Fursa Alternative Strategies, LLC, a Delaware limited liability
company (the “Lender”), at its principal office located at 000 Xxxx
Xxxxxx, 00xx xxxxx, Xxx Xxxx, Xxx Xxxx, 00000, or at such other address as
it
may direct, in lawful money of the United States and in immediately available
funds the aggregate unpaid principal amount of all Advances made to the Borrower
by the Lender, plus interest thereon from the date of each such Advance on
the
unpaid principal amount of such Advance, in like money, at said office, at
a
rate per annum equal to the Interest Rate defined in the Secured Line of Credit
Agreement dated February 1, 2007, as amended on July __, 2007 between the Lender
and the Borrower (in its original form and as it may be hereafter amended or
otherwise modified, the “Agreement”). As provided in the Agreement,
Interest Payments shall be due on the first day of each and every month from
the
date hereof until the Maturity Date, as defined in the Agreement, when the
entire aggregate unpaid principal amount of all Advances, plus unpaid by accrued
interest thereon shall be due and payable. Any amount of principal hereof which
is not paid when due, whether at stated maturity, by acceleration, or otherwise,
shall bear interest from the date when due until said principal amount is paid
in full, at a rate per annum equal at all times to the applicable interest
rate
set for such Advance plus 400 basis points (4%).
The
Borrower hereby authorizes the Lender to endorse on the Schedule annexed to
this
Line of Credit Grid Note (this “Note”) the principal amount of all
Advances made to the Borrower, the interest rate for each such Advance, and
all
payments of principal amounts in respect of such Advance, which endorsements
shall, in the absence of manifest error, be conclusive as to the outstanding
principal amount of all Advance and the interest rates thereon; provided,
however, that the failure to make such notation with respect to
any interest rate of an Advance, or payment shall not limit or otherwise affect
the obligations of the Borrower under the Agreement or this Note.
If
any
payment hereunder or under the Note becomes due and payable on a day other
than
a business day, the maturity thereof shall be extended to the next succeeding
business day; provided, however, that if the date for any payments
of interest is extended as provided hereunder or by operation of law or
otherwise, interest shall continue to accrue and be payable at the then
applicable rate during such extension.
This
Note
is the Note referred to in the Agreement. Terms used herein which are defined
in
the Agreement shall have their defined meanings when used herein. This Note
is
secured by first priority lien and security interest in the Collateral defined
in the Agreement, reference to which is hereby made for a description of the
Collateral provided for under such Agreement and the rights of the Borrower
and
the Lender with respect to such Collateral.
This
Note
shall be governed by the laws of the State of New York, provided that, as to
the
maximum rate of interest which may be charged or collected, if the laws
applicable to the Lender permit it to charge or collect a higher rate than
the
laws of the State of New York, then such law applicable to the Lender shall
apply to the Lender under this Note.
a
Nevada corporation
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Date: | By: | /s/ |
Name:
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Title:
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SCHEDULE TO
LINE OF CREDIT GRID NOTE
Date
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Amount
of
Advance |
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Interest
Rate
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Amount
of Principal
Prepaid
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Unpaid
Principal Balance of Line of Credit Grid Note |
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Name
of Person
Making Notation |
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Initials
of Such
Person |
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