Exhibit 10.4
AMENDMENT NO. 1 TO NOTE (this "Amendment") dated as of January 7, 2004,
BETWEEN
(1) XXXXXX BROTHERS INC., a New Hampshire corporation (the "Company"); and
(3) CORPORATE MEZZANINE II, L.P., a British Virgin Islands limited partnership
(together with its successors and registered assigns, subject to Section
10.16 of the Purchase Agreement defined below (the "Holder").
WHEREAS, the Company and CMII, inter alia, are parties to a certain Subordinated
Note and Warrant Purchase Agreement dated as of October 22, 2001 as amended by
Amendment No. 1 and Waiver dated as of May 14, 2002 and Amendment No. 2 and
Waiver dated as of August 9, 2002 (the "Original Purchase Agreement") pursuant
to which the Company has issued and sold to CMII a subordinated promissory note
(the "Original Note") in the original principal amount of $5,000,000 with a
final maturity of October 22, 2008;
WHEREAS, pursuant to the amendment to the Original Purchase Agreement by
Amendment No. 3 and Waiver Agreement dated as of the date hereof (as so amended,
the "Purchase Agreement"), the Company has requested and the Holder has agreed
to amend certain provisions of the Original Note subject to the terms and
conditions hereof;
NOW, THEREFORE, for valuable consideration the receipt and sufficiency of which
is hereby acknowledged, and subject to the fulfillment of the conditions set
forth below, the parties hereto agree as follows:
1. Amendments to Original Note
1.1 Section 2(a) of the Original Note is amended by adding at the end of such
section the following:
"Notwithstanding anything contained in the foregoing portions of this
Section 2(a), (i) interest that shall have accrued on the Accreted
Principal Amount and shall be unpaid as of September 30, 2003, shall be
paid by addition of such accrued and unpaid interest to the principal
outstanding under this Note on such date and shall constitute a "PIK
Amount" and shall be included in determining the Accreted Principal Amount
for all purposes and (ii) interest that shall have accrued on the Accreted
Principal Amount and that is due on each Interest Payment Date beginning
on March 31, 2004 and ending on, and including, December 31, 2005 shall be
payable at the rate of 10% per annum, of which 8% per annum shall be paid
in cash on each such date and 2% per annum shall be paid by addition of
such accrued and unpaid interest to the principal outstanding under this
Note on each such date and such 2% per annum amount shall constitute a
"PIK Amount" and shall be included in determining the Accreted Principal
Amount for all purposes. Notwithstanding anything to the contrary
contained in the Original Note, the payment of interest on the Accreted
Principal Amount that would otherwise be due on December 31, 2003 shall be
extended until, and shall be due on, January 7, 2004. Attached hereto as
Exhibit 1 is the anticipated payment schedule for interest on this Note,
beginning with the interest that shall have accrued on the Accreted
Principal Amount and that is due on January 7, 2004, subject to adjustment
in the case of prepayment of principal, late payments of interest and
other events; such Exhibit 1 being for illustrative purposes only."
1.2 Exhibit 1 attached hereto is hereby attached as Exhibit 1 to the Original
Note.
-2-
2. Conditions Precedent
This Amendment shall become effective upon the execution and delivery to CMII of
counterparts hereof by the parties hereto and the fulfillment of the conditions
set forth in Section 5 of Amendment No. 3 and Waiver Agreement dated as of the
date hereof by and among the Company, BrandPartners Group, Inc. and the Holder.
3. Miscellaneous
3.1 Except as amended hereby, the Original Note is ratified and confirmed in
all respects and shall remain in full force and effect in accordance with
its terms.
3.2 This Amendment may be executed by the parties hereto individually or in
combination, in one or more counterparts, each of which shall be an
original and all of which shall constitute one and the same agreement. A
facsimile signature page shall constitute an original for the purposes
hereof.
3.3 THIS AMENDMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH
THE LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO THE PRINCIPLES OF
CONFLICTS OF LAW OF SUCH STATE OTHER THAN SECTION 5-1401 OF THE GENERAL
OBLIGATIONS LAW OF THE STATE OF NEW YORK).
[signature page follows]
-3-
IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly
executed and delivered by as of the day and year first above written.
XXXXXX BROTHERS, INC.
By: /s/ Xxxxx X. Xxxxxx
----------------------------------
Name: Xxxxx X. Xxxxxx
Title: Chief Executive Officer
CORPORATE MEZZANINE II, L.P.
By: /s/ Hamad Xxxxxxxxx Xxxxxxx
----------------------------------
Name: Hamad Xxxxxxxxx Xxxxxxx
Title: Director
Consented pursuant to Section 10.4(b) of the Purchase Agreement:
BRANDPARTNERS GROUP, INC.
By: /s/ Xxxxx X. Xxxxxx
----------------------------------
Name: Xxxxx X. Xxxxxx
Title: Chief Executive Officer
AMENDMENT NO. 1 TO XXXXXX NOTE
EXHIBIT 1
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Interest & Debt Schedule
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Updated December 1, 2003
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Beginning 10/22/2001
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Payable 10/22/2008
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Amount 5,000,000
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Current Pay 12.0%
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PIK Interest 4.0%
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Calc. Actual/360
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Beginning Ending
Date Principal Interest PIK Principal Days
Beginning Ending Balance Current Pay Interest Balance In Period
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10/22/01 12/31/01 5,000,000.00 118,333.33 39,444.44 5,039,444.44 71.00
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12/31/01 03/31/02 5,039,444.44 151,183.33 50,394.44 5,089,838.89 90.00
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03/31/02 06/30/02 5,089,838.89 154,391.78 51,463.93 5,141,302.82 91.00
------------------------------------------------------------------------------------------------------------------------
06/30/02 09/30/02 5,141,302.82 157,666.62 52,555.54 5,193,858.36 92.00
------------------------------------------------------------------------------------------------------------------------
09/30/02 12/31/02 5,193,858.36 159,278.32 53,092.77 5,246,951.13 92.00
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12/31/02 03/31/03 5,246,951.13 157,408.53 52,469.51 5,299,420.64 90.00
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03/31/03 06/30/03 5,299,420.64 160,749.09 53,583.03 5,353,003.67 91.00
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06/30/03 09/30/03 5,353,003.67 0.00 218,878.37 5,571,882.04 92.00
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09/30/03 12/31/03 5,571,882.04 170,871.05 56,957.02 5,628,839.06 92.00
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12/31/03 03/31/04 5,628,839.06 113,827.63 28,456.91 5,657,295.97 91.00
------------------------------------------------------------------------------------------------------------------------
03/31/04 06/30/04 5,657,295.97 114,403.10 28,600.77 5,685,896.74 91.00
------------------------------------------------------------------------------------------------------------------------
06/30/04 09/30/04 5,685,896.74 116,245.00 29,061.25 5,714,957.99 92.00
------------------------------------------------------------------------------------------------------------------------
09/30/04 12/31/04 5,714,957.99 116,839.14 29,209.79 5,744,167.78 92.00
------------------------------------------------------------------------------------------------------------------------
12/31/04 03/31/05 5,744,167.78 114,883.36 28,720.84 5,772,888.62 90.00
------------------------------------------------------------------------------------------------------------------------
03/31/05 06/30/05 5,772,888.62 116,740.64 29,185.16 5,802,073.78 91.00
------------------------------------------------------------------------------------------------------------------------
06/30/05 09/30/05 5,802,073.78 118,620.17 29,655.04 5,831,728.82 92.00
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09/30/05 01/02/06 5,831,728.82 121,818.34 30,454.58 5,862,183.40 94.00
------------------------------------------------------------------------------------------------------------------------
01/02/06 03/31/06 5,862,183.40 171,957.38 57,319.13 5,919,502.53 88.00
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03/31/06 06/30/06 5,919,502.53 179,558.24 59,852.75 5,979,355.28 91.00
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06/30/06 10/02/06 5,979,355.28 187,353.13 62,451.04 6,041,806.32 94.00
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10/02/06 01/02/07 6,041,806.32 185,282.06 61,760.69 6,103,567.01 92.00
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01/02/07 04/02/07 6,103,567.01 183,107.01 61,035.67 6,164,602.68 90.00
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04/02/07 07/02/07 6,164,602.68 186,992.95 62,330.98 6,226,933.66 91.00
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07/02/07 10/01/07 6,226,933.66 188,883.65 62,961.22 6,289,894.88 91.00
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10/01/07 12/31/07 6,289,894.88 190,793.48 63,597.83 6,353,492.71 91.00
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12/31/07 03/31/08 6,353,492.71 192,722.61 64,240.87 6,417,733.58 91.00
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03/31/08 06/30/08 6,417,733.58 194,671.25 64,890.42 6,482,623.99 91.00
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06/30/08 09/30/08 6,482,623.99 198,800.47 66,266.82 6,548,890.82 92.00
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09/30/08 10/22/08 6,548,890.82 48,025.20 16,008.40 6,564,899.22 22.00
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