FIFTH AMENDMENT AND CONSENT AGREEMENT
EXHIBIT 10.4
This Fifth Amendment and Consent Agreement is made as of the 22nd day of February, 2012 (“Agreement”) among Attitude Drinks Inc., a Delaware corporation (the “Company”), and the signators hereto who are “Subscribers” under certain Subscription Agreements with the Company dated October 23, 2007, January 8, 2008, September 29, 2008, January 27, 2009, March 30, 2009, July 15, 2010, January 21, 2011, March 17, 2011, and July 15, 2011, respectively (collectively “Subscription Agreements” – see Schedule 1).
WHEREAS, the Company is in need of additional funding for its business operations; and
WHEREAS, the Company is contemplating an additional investment of an aggregate of no minimum and up to a maximum of $600,000 Purchase Price (“New Financing”) in secured promissory notes (“Notes”) and common stock purchase warrants (“Warrants”) of the Company; and
NOW THEREFORE, in consideration of the promises and mutual covenants contained herein and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby consent and agree as follows:
1. All capitalized terms herein shall have the meanings ascribed to them in the Transaction Documents (as defined in the Subscription Agreements).
2. The undersigned consent to the Company completing the New Financing and to the amendment of the Security Agreement, and Guaranty to include the New Financing as part of the Obligations and are secured by the Collateral pursuant to the security interest granted pari passu among Subscribers and the investors in the New Financing and in connection therewith authorize the Collateral Agent to make such additional filings at the discretion of the Collateral Agent to memorialize such agreement.
3. Annexed hereto is the proposed Amended Schedule A to the Security Agreement, Guaranty and Collateral Agent Agreement which includes the New Financing.
4. The undersigned Subscribers to the Subscription Agreements waive the rights granted to them pursuant to Section 12(b), Right of First Refusal and the restrictions contained in Sections 9(p) Negative Covenants and 9(q) Seniority of the Subscription Agreements, all of the aforementioned only to the extent such rights relate to the New Financing. Each of the undersigned Subscribers to the Subscription Agreements waives the ratchet/reset benefit that such Subscriber is entitled to as a result of any Subscriber’s conversion of a Note or exercise of a Warrant to the extent such conversion or exercise would result in a conversion price or exercise price less than $0.02, provided however all Subscribers will get the ratchet/reset benefit to the $0.02 floor as a result of any such conversion or exercise. This waiver will not apply to any other issuances by the Company.
5. The undersigned Subscribers waive the Company’s Reservation obligation as described in Section 9(f) of the Subscription Agreements, Section 3.2.1(c)(D)(e) of the Notes to the extent such requirement is in excess of 100% required reservation of shares for conversion of principal and interest of the Notes as set forth on Schedule 5(d) until such time as the Company either increases its authorized shares or effectuates a reverse split of its Common Stock, but in any event no later than June 1, 2012. For purposes of clarification commencing June 2, 2012, the Company is required to have a number of shares of Common Stock equal to 150% of the amount of Common Stock to all Subscribers to be able to convert all of the Notes (including interest that would accrue therein through the Maturity Date (as defined in the Notes) and 100% of the amount of Warrant Shares issuable upon exercise of the Warrants.
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6. All other terms of the Transaction Documents shall remain unamended and in full force and effect.
7. This Agreement constitutes the entire agreement among the parties, and supersedes all prior and contemporaneous agreements and understandings of the parties in connection herewith. No changes, modifications, terminations or waivers of any of the provisions hereof shall be binding unless in writing and signed by all of the parties thereto.
8. Except as expressly modified pursuant to this Agreement, the terms of each Note remains unchanged and in full force and effect.
9. This Agreement may be executed in separate counterparts, each of which when so executed shall be deemed to be an original and all of which taken together shall constitute one and the same agreement. This Agreement may also be executed by either party hereto by facsimile signature, which shall be deemed to be an original signature of such party hereon.
[Signatures to Follow]
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IN WITNESS WHEREOF, the undersigned have executed and delivered this Agreement as of the date first written above.
"COMPANY" "THE COLLATERAL AGENT"
ATTITUDE DRINKS INC. XXXXXXX X. XXXXXXX
a Delaware corporation
By: _____________________________________ _______________________________________
Its: _____________________________________
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_________________________________________
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_______________________________________
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SMIVEL, LLC
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MONARCH CAPITAL FUND LTD.
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By: Xxxxxx Xxxxx, Partner
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_________________________________________
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_______________________________________
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ALPHA CAPITAL ANSTALT
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CMS CAPITAL
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_________________________________________
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_______________________________________
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WHALEHAVEN CAPITAL FUND LIMITED
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MOMONA CAPITAL LLC
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_________________________________________
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_______________________________________
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CENTAURIAN FUND
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XXXXX KLISSMAN
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_________________________________________
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_______________________________________
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SCHLOMO & XXXXXX XXXXXXX
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XXXXX X. XXXXXXXXX
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_________________________________________
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_______________________________________
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PSM HOLDINGS
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J. MAYA IRA
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_________________________________________
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_______________________________________
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EMMY XXXXXX XXX
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XXX XXXXXXXXX
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_________________________________________
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_______________________________________
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J & N INVEST LLC
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XXX & XXX XXXX
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_________________________________________
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_______________________________________
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XXXXX X. XXXXXXX
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XXXX XXXXXXX
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_________________________________________
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_______________________________________
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RAMSHEAD HOLDING LTD.
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ESCROW AGENT
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________________________________________
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GRUSHKO & XXXXXXX, P.C.
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3
AMENDED SCHEDULE A TO SECURITY AGREEMENT
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LENDERS AND ADDRESSES
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SMIVEL, LLC
00000 XX 000 Xxxxx
Xxxxx, XX 00000
Attn: Xxxxxx Xxxxx, Partner
Tel: (000) 000-0000
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ALPHA CAPITAL ANSTALT
Xxxxxxxxx 0
0000 Xxxxxxxxxxx
Vaduz, Lichtenstein
Fax: 000-00-00000000
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WHALEHAVEN CAPITAL FUND LIMITED
3rd Fl., 00 Xxx-Xx-Xxxxx Xx.
Xxxxxxxx, Xxxxxxx XX00
Fax: (000) 000-0000
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MONARCH CAPITAL FUND LTD.
Xxxxxxx Xxxxx, 0xx Xxxxx
Xxxxxxxxxx Xxxxx, Xxxx Xxxx
Xxxxxxx, BVI
Fax (000) 000-0000
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CMS CAPITAL
0000 Xxx Xxxx Xxxx. #000
Xxxxxxxx Xxxx, XX 00000
Fax: (000) 000-0000
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MOMONA CAPITAL LLC
000 Xxxxxxx Xxxx Xxxxx, 0xx Xxxxx
Xxx Xxxx, XX 00000
Fax: (000) 000-0000
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CENTAURIAN FUND
000 Xxxxxx Xxxxxx
Xxxxxxx, XX 00000
Fax:
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XXXXX KLISSMAN
0/00 Xxxxxxxxxx Xxxxxx
Xxxxxxxxx, Xxxxxx 00000
Fax:
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XXX XXXXXXXXX
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SCHLOMO & XXXXXX XXXXXXX
Givat Shoshanna 12/3
Tzfut Israel
Fax: 000 0 0000000
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XXXXX X. XXXXXXXXX
c/o NASA Services Limited
0 Xxxxxxxx Xxxx
Xxxxxxx XX00 0XX
Xxxxxx Xxxxxxx
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PSM HOLDINGS
c/o PHD Capital
0 Xxxxxxx Xxxxxx #000
Xxx Xxxx, XX 00000
Xxxxxxx X. Xxxxx
Fax: (000) 000-0000
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J. MAYA IRA
c/o PHD Capital
0 Xxxxxxx Xxxxxx #000
Xxx Xxxx, XX 00000
Xxxxxx Xxxx
Fax: (000) 000-0000
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EMMY XXXXXX XXX
c/o PHD Capital
0 Xxxxxxx Xxxxxx #000
Xxx Xxxx, XX 00000
Xxxx Xxxxxx
Fax: (000) 000-0000
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J & N INVEST LLC
000 Xxxx 0xx Xxxxxx
Xxxxxxxx, XX 00000
Attn: Xxxxxxx Xxxxx
Fax: (000) 000-0000
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XXX & XXX XXXX
0 Xxxxx Xxxx
Xxxxxxxx, XX 00000-0000
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XXXXX X. XXXXXXX
00 Xxxx 00xx Xxxxxx, 0X
Xxx Xxxx, XX 00000
Fax: (000) 000-0000
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XXXX XXXXXXX
000 Xxxxxxxx Xxxx
Xxxxxxxx, XX 00000
Fax: (000) 000-0000
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RAMSHEAD HOLDING LTD.
00 / 00 Xxxx Xxxx Xxxx
Xxxxxxxxx
Attn: Xxxxxxxx Xxxxxx
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5
Schedule 1 – Outstanding Convertible Notes Payable and Warrants by Note Holder
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ANALYSIS OF CONVERTIBLE NOTE PAYABLE HOLDINGS
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BY SUBSCRIBERS AT 1/18/12
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(b)
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Convertible
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$
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# of Class A
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$
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Notes Payable
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(a)
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Warrants
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Warrant
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Outstanding
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Conversion
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Held by
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Exercise
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Name of Note Holder
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$ Amount
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Price Cap
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Note Holders
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Price
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Alpha Capital Anstaldt
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$ | 2,370,488 | $ | 0.02 | 33,601,528 | $ | 0.02 | |||||||||
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Whalehaven Capital Fund Limited
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$ | 1,093,412 | $ | 0.02 | 58,194,749 | $ | 0.02 | |||||||||
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Monarch Capital Fund Ltd.
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$ | - | $ | 0.02 | 303,003 | $ | 0.02 | |||||||||
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Smivell LLC
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$ | 4,000 | $ | 0.02 | 151,052 | $ | 0.02 | |||||||||
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Momona Capital LLC
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$ | 12,478 | $ | 0.02 | - | $ | - | |||||||||
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CMS Capital
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$ | 18,852 | $ | 0.02 | - | $ | - | |||||||||
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Centaurian Fund
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$ | 171,931 | $ | 0.02 | 511,509 | $ | 0.02 | |||||||||
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Xxxxx Klissman
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$ | 163,000 | $ | 0.02 | 3,333,333 | $ | 0.02 | |||||||||
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PHD Capital
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$ | - | $ | 0.02 | 3,973,510 | $ | 0.02 | |||||||||
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Xxx Xxxxxxxxx
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$ | 26,116 | $ | 0.02 | - | $ | - | |||||||||
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Schlomo & Xxxxxx Rifking
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$ | 317,011 | $ | 0.02 | 16,336,317 | $ | 0.02 | |||||||||
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Xxxxx Xxxxxxxxx
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$ | 39,263 | $ | 0.02 | - | $ | - | |||||||||
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PSM Holdings
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$ | 20,980 | $ | 0.02 | 1,278,772 | $ | 0.02 | |||||||||
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J. Maya IRA
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$ | 40,792 | $ | 0.02 | - | $ | - | |||||||||
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Xxxx Xxxxxx
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$ | 21,266 | $ | 0.02 | - | $ | - | |||||||||
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J&N Invest LLC
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$ | 199,653 | $ | 0.02 | 14,238,411 | $ | 0.02 | |||||||||
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Xxx & Xxx Xxxx
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$ | 50,000 | $ | 0.02 | 1,000,000 | $ | 0.02 | |||||||||
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Xxxxx Xxxxxxx
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$ | 27,725 | $ | 0.02 | 1,986,755 | $ | 0.02 | |||||||||
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Xxxx Xxxxxxx
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$ | 20,206 | $ | 0.02 | 1,655,629 | $ | 0.02 | |||||||||
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Ramshead Holding LTD
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$ | 80,000 | $ | 0.02 | 4,486,755 | $ | 0.02 | |||||||||
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Xxxx Xxxxxxxx
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$ | 230,844 | $ | 0.02 | 22,500,000 | $ | 0.02 | |||||||||
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Total
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$ | 4,908,017 | 163,551,323 | |||||||||||||
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(a) Conversion price is subject to the discount and the number of trading days preceding a conversion date as provided in each convertible note agreement but in no event greater than $.02.
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(b) Once certain Class A Warrants are exercised, 231,818 Class B warrants can then be exercised.
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