EXHIBIT 10.3

EXECUTION VERSION

 

SECOND AMENDMENT TO
FIRST AMENDED AND RESTATED CREDIT AGREEMENT

 

This Second Amendment (this “Amendment”), dated as of December 17, 2007 (the
“Amendment Effective Date”), is by and among MxEnergy Inc., a Delaware
corporation (“MxEnergy”), and MxEnergy Electric Inc., a Delaware corporation
(“MxEnergy Electric”; MxEnergy and MxEnergy Electric each a “Borrower” and
collectively, the “Borrowers”), MxEnergy Holdings Inc. and certain Subsidiaries
thereof (collectively, the “Guarantors”), and the financial institutions and
other Persons whose signature appears below as Lenders.

 

PRELIMINARY STATEMENTS

 

A.            Reference is made to the First Amended and Restated Credit
Agreement dated as of August 1, 2006 (as amended by the First Amendment dated as
of April 6, 2007, the “Credit Agreement”) among the Borrowers, the Guarantors,
the lenders party thereto and the Administrative Agent. Unless otherwise
expressly provided herein, capitalized terms used herein and not otherwise
defined shall have the meanings assigned to such terms in the Credit Agreement.

 

B.            The Borrowers have requested that the Majority Lenders amend the
Credit Agreement as hereinafter provided and that the Lenders consent to a
waiver under the Intercreditor Agreement as hereinafter provided; and

 

C. The Lenders party hereto, constituting the Majority Lenders under the Credit
Agreement, are willing to amend the Credit Agreement on the terms and conditions
set forth herein.

 

NOW THEREFORE, in consideration of the premises and the covenants and agreements
contained herein, the parties hereto agree as follows:

 

AGREEMENT

 

Section 1.                 Amendments to Credit Agreement.

 

(a)           Amendment to Article 5. A new Section 5.16 of the Credit Agreement
is hereby added to Article 5 of the Credit Agreement immediately following
Section 5.15 of the Credit Agreement as follows:

 

Section 5.16 Borrowing Base. Draw down the entire available amount under the
Sowood Documents if at any time the Borrowing Base Availability is less than
$10,000,000,

 

(b)           Amendments to Section 6.06.

 

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(i)           Section 6.06(e) of the Credit Agreement is hereby amended in its
entirety as follows:

 

(e) any Loan Party may defease, redeem, repurchase, retire or acquire
Subordinated Indebtedness or the MxEnergy Holdings Inc. Floating Rate Senior
Notes due 2011 (the “Senior Notes”) (i) with the net cash proceeds from a
substantially concurrent incurrence of Debt permitted by Section 6.02(b) (other
than Debt incurred under the Sowood Documents), (ii) with the net proceeds from
the issuance of Equity Interests, or (iii) in the case of the Senior Notes, for
an amount not to exceed $12,000,000, so long as the purchase price therefor is
equal to 100% or less of their par value and paid with cash on hand of any Loan
Party;

 

(ii)                         Section 6.06(1 of the Credit Agreement is hereby
amended by replacing the amount “$250,000.00” appearing in clause (ii) thereof
with the amount “$500.000.00”.

 

(c) Amendment to Section 6.18. Section 6.18 of the Credit Agreement is hereby
amended in its entirety as follows:

 

Section 6.18             Minimum Consolidated Working Capital. Permit the
Consolidated Working Capital at any time to be less than $138,500,000; provided
that (a) such amount shall be reduced on a dollar for dollar basis by (1) the
purchase price paid for the redemption of the Senior Notes permitted under
Section 6.06(e)(iii) and (ii) any repayment of all or any portion of the
principal outstanding under the Sowood Documents on or after December , 2007,
and (b) such amount shall be increased on a dollar for dollar basis by any
advances made under the Sowood Documents on or after December
                            , 2007.

 

Section 2. Consent to Amendment of the Intercreditor Agreement. The Lenders
hereby consent to, and direct the Administrative Agent to enter into, a consent
and waiver of the applicable terms of the Intercreditor Agreement to permit a
one-time payment of principal of the Sowood Obligations with respect to
revolving loans.

 

Section 3. Conditions to Effectiveness. This Amendment shall be effective as of
the Amendment Effective Date when the Administrative Agent shall have received
confirmation of each of the following in form and substance satisfactory to the
Administrative Agent:

 

(a) counterparts of this Amendment, duly executed by each Loan Party and the
Majority Lenders; provided that the consent and waiver set forth in Section 2
hereof shall not be effective unless counterparts of this Amendment have been
duly executed by each Loan Party and all of the Lenders;

 

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(b)           a certificate of Secretary or other officer of each Loan Party
certifying the name and title of the officer of such Loan Party that is
authorized to execute this Amendment and that none of the organizational
documents of such Loan Party have been changed since the Closing Date; and

 

(c)           evidence that the Borrowers have paid (i) the Administrative Agent
for the pro rata benefit of each Lender executing this Amendment an amendment
fee equal to 0.04% of the aggregate Revolving Commitments of all such Lenders
executing this Amendment and (ii) all other costs, accrued and unpaid fees and
expenses to the extent due and payable to the Lenders and the Administrative
Agent as of the Amendment Effective Date pursuant to the Credit Agreement and
any fee letter executed by the Borrowers.

 

Section 4. Representations and Warranties. Each Loan Party jointly and severally
hereby represents and warrants that, as of the Amendment Effective Date:

 

(a)                                        all representations and warranties of
such Loan Party contained in the Credit Agreement and any other Loan Document
are true and correct in all material respects with the same effect as if such
representations and warranties had been made on the Amendment Effective Date (it
being understood and agreed that any representation which by its terms is made
as of a specified date shall be required to be true and correct only as of such
specified date); and

 

(b)         no Default has occurred and is continuing.

 

 Section 5. Consent of Guarantors; Confirmation of Guarantees. Each Guarantor
hereby consents to this Amendment and hereby confirms and agrees that
notwithstanding the effectiveness of this Amendment, the Guarantee contained in
Article VIII of the Credit Agreement is, and shall continue to be, in full force
and effect and is hereby ratified and confirmed in all respects.

 

 Section 6. Governing Law. This Amendment shall be governed by, and construed
and enforced in accordance with, the internal laws of the State of New York
without regard to conflict of laws principles.

 

 Section 7. Entire Agreement. This Amendment, the Credit Agreement and the other
Loan Documents constitute the entire agreement and understanding among the
parties and supersede all prior agreements and understandings, whether written
or oral, among the parties hereto concerning the transactions provided herein
and therein.

 

 Section 8. Execution in Counterparts. This Amendment may be executed in any
number of counterparts and by different parties hereto 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. Delivery of an
executed counterpart of a signature page to this Amendment by facsimile shall be
as effective as delivery of a manually executed counterpart of this Amendment.

 

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Section 9. Headings. The headings set forth in this Amendment are and shall be
without substantive meaning or content of any kind whatsoever and are not a part
of the agreement between the parties hereto.

 

Section 10. Severability. In case any provision in or obligation under this
Amendment shall be invalid, illegal or unenforceable in any jurisdiction, the
validity, legality and enforceability of the remaining provisions or
obligations, or of such provision or obligation in any other jurisdiction, shall
not in any way be affected or impaired thereby.

 

[Signature pages follow]

 

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IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly
executed and delivered by their respective duly authorized officers as of the
Amendment Effective Date.

 

 

BORROWERS:

 

 

 

 

 

MXENERGY INC.

 

 

 

/s/ Chaitu Parikh

 

 

Chaitu Parikh

 

Vice President &

 

Chief Financial Officer

 

 

 

MXENERGY ELECTRIC INC

 

 

 

/s/ Chaitu Parikh

 

 

Chaitu Parikh

 

Vice President &

 

Chief Financial Officer

 

 

 

GUARANTORS:

 

 

 

MXENERGY HOLDINGS INC.

 

 

 

/s/ Chaitu Parikh

 

 

Chaitu Parikh

 

Vice President &

 

Chief Financial Officer

 

 

 

 

 

ONLINE CHOICE INC.

 

MXENERGY GAS CAPITAL HOLDINGS

 

  CORP.

 

MXENERGY ELECTRIC CAPITAL HOLDINGS
CORP.

 

MXENERGY GAS CAPITAL CORP. MXENERGY ELECTRIC CAPITAL CORP. OTAL GAS & ELECTRIC
INC.

 

TOTAL GAS & ELECTRICITY (PA) INC. MXENERGY CAPITAL HOLDINGS ORP. MXENERGY
CAPITAL CORP.

 

MXENERGY SERVICES INC.

 

INFOMETER.COM INC

 

 

 

/s/ Chaitu Parikh

 

 

Chaitu Parikh

 

Vice President &

 

Chief Financial Officer

 

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LENDERS

 

 

 

SOCIÉTÉ GÉNÉRALE

 

 

 

/s/ Emmaunel Chesneau

 

 

Emmanuel Chesneau

 

Managing Director

 

 

 

/s/ Barbara Paulsen

 

 

Barbara Paulsen

 

Managing Director

 

 

 

 

 

 

WACHOVIA BANK, N.A.

 

 

 

 

 

 

 

 

/s/ Diane Bredehoft

 

 

Diane Bredehoft

 

 

Vice President

 

 

 

 

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CoBANK, ACB

 

 

 

 

 

 

 

 

/s/ Dale Keyes

 

 

 

Dale Keyes

 

 

Vice President

 

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MORGAN STANLEY

 

 

 

 

 

 

 

 

/s/ Daniel Twenge

 

 

 

Daniel Twenge

 

 

Authorized Signatory

 

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LASALLE BANK NATIONAL

 

 

ASSOCIATION

 

 

 

 

 

/s/ Meghan A. Schultz

 

 

Meghan A. Schultz

 

 

Vice President

 

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ALLIED IRISH BANK p.l.c

 

 

 

 

 

/s/ Vaughan Buck

 

 

 

Vaughan Buck

 

 

Executive Vice President

 

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ALLIED IRISH BANK p.l.c

 

 

 

 

 

/s/ Aidan Lanigan

 

 

 

Aidan Lanigan

 

 

Vice President

 

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RZB FINANCIAL LLC

 

 

 

 

 

/s/ Astrid Wilke

 

 

 

Astrid Wilke

 

 

Vice President

 

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RZB FINANCIAL LLC

 

 

 

 

 

 

 

 

/s/ Pearl Geffers

 

 

 

Pearl Geffers

 

 

First Vice President

 

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Execution Version

 

CONSENT AND WAIVER AGREEMENT

 

This CONSENT AND WAIVER AGREEMENT dated as of November 16, 2007 (this “Consent”)
is executed in connection with the First Amended and Restated Credit Agreement
dated as of August 1, 2006 (as amended to date, the “Credit Agreement”) among
MxEnergy Inc., a Delaware corporation (“MxEnergy”), and MxEnergy Electric Inc.,
a Delaware corporation (“MxEnergy Electric”; MxEnergy and MxEnergy Electric each
a “Borrower” and collectively, the “Borrowers”), MxEnergy Holdings Inc. and
certain Subsidiaries thereof, the lenders party thereto and Societe. Generale,
as the Administrative Agent. Unless otherwise defined in this Consent, each
capitalized term used in this Consent has the meaning given to such term in the
Credit Agreement.

 

WHEREAS, MxEnergy intends to enter into an agreement with PS Energy Group, Inc.
(“PS Energy”) to acquire certain assets of PS Energy for a purchase price in an
aggregate amount of not more than $8,000,000, plus an additional amount to be
paid to PS Energy for working capital, a true and complete final draft of which
has been provided to the Administrative Agent (the “PSEGI Acquisition
Agreement”);

 

WHEREAS, the Borrowers have requested the Administrative Agent and the Lenders
to consent to the entering into of the PSEGI Acquisition Agreement and waive any
breach of Section 6.05(i) of the Credit Agreement that will occur in connection
therewith;

 

THEREFORE, in consideration of the premises and the mutual agreements,
representations and warranties set forth herein, and for other good and valuable
consideration, the parties hereby agree as follows:

 

Section 1.                   Consent and Waiver.

 

(a)           The Majority Lenders hereby consent to the transaction
contemplated by the PSEGI Acquisition Agreement and agree to waive any breach by
the Loan Parties under Section 6.05(i)(iii) of the Credit Agreement with respect
thereto so long as the consideration paid under the PSEGI Acquisition Agreement
(excluding amounts to be paid to PS Energy for working capital) does not exceed
$8,000,000. The Majority Lenders acknowledge that the consideration paid or to
he paid under the PSEGI Acquisition Agreement (including any earn-outs payable
to PS Energy under the PSEGI Acquisition Agreement) shall not count against the
$5,000,000 cap set forth in Section 6.05(i)(iii) of the Credit Agreement with
respect to any applicable consecutive twelve-month period.

 

(b)           The express waiver set forth in this Section I is limited to the
extent described herein and shall not be construed to be a consent or waiver of
any other terms, provisions, covenants, warranties or agreements contained in
the Credit Agreement or any other Loan Document. The Lenders reserve the right
to exercise any rights and remedies available to them in connection with any
other present or future defaults with respect to the Credit Agreement or any
other provision of any Loan Document.

 

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Section 2. Representations and Warranties. Each Loan Party jointly and severally
represents and warrants to the Lenders that (a) no Default or Event of Default
has occurred and is continuing (except to the extent waived hereby), and
(b) each of the representations and warranties of such Loan Party in the Credit
Agreement and the other Loan Documents are true and correct on the date hereof
in all material respects (except to the extent stated as of a prior date only).

 

Section 3. Effectiveness. This Consent shall become effective when the
Administrative Agent shall have received duly executed counterpart signature
pages to this Consent from the Loan Parties and the Majority Lenders.

 

Section 4. Choice of Law. This Consent shall be governed by and construed and
enforced in accordance with the laws of the State of New York, without reference
to the principles thereof regarding conflicts of laws.

 

Section S. Counterparts. This Consent may be signed in any number of
counterparts, each of which when so executed shall be deemed to be an original
and all of which when taken together shall constitute one and the same
agreement. Transmission by facsimile of an executed counterpart of this Consent
shall be deemed to constitute due and sufficient delivery of such counterpart.

 

[REMAINDER OF PAGE INTENTIONALLY BLANK]

 

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IN WITNESS WHEREOF, the parties hereto have caused this Consent to be duly
executed by their duly authorized officers as of the first day and year written
above.

 

 

BORROWERS:

 

 

 

MXENERGY INC.

 

 

 

/s/ Chaitu Parikh

 

 

Chaitu Parikh

 

Vice President &

 

Chief Financial Officer

 

 

 

MXENERGY ELECTRIC INC

 

 

 

/s/ Chaitu Parikh

 

 

Chaitu Parikh

 

Vice President &

 

Chief Financial Officer

 

 

 

GUARANTORS:

 

 

 

MXENERGY HOLDINGS INC.

 

 

 

/s/ Chaitu Parikh

 

 

Chaitu Parikh

 

Vice President &

 

Chief Financial Officer

 

 

 

 

 

ONLINE CHOICE INC.

 

MXENERGY GAS CAPITAL HOLDINGS

 

  CORP.

 

MXENERGY ELECTRIC CAPITAL HOLDINGS
CORP.

 

MXENERGY GAS CAPITAL CORP.

 

MXENERGY ELECTRIC CAPITAL CORP.

 

TOTAL GAS & ELECTRIC INC.

 

TOTAL GAS & ELECTRICITY (PA) INC.

 

MXENERGY CAPITAL HOLDINGS CORP.

 

MXENERGY CAPITAL CORP.

 

MXENERGY SERVICES INC.

 

INFOMETER.COM INC

 

 

 

/s/ Chaitu Parikh

 

 

Chaitu Parikh

 

Vice President &

 

Chief Financial Officer

 

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LENDERS

 

 

 

SOCIÉTÉ GÉNÉRALE

 

 

 

/s/ Emmaunel Chesneau

 

 

Emmanuel Chesneau

 

Managing Director

 

 

 

/s/ Barbara Paulsen

 

 

Barbara Paulsen

 

Managing Director

 

 

 

 

 

 

 

WACHOVIA BANK, N.A.

 

 

 

 

 

 

 

 

/s/ Diane Bredehoft

 

 

 

Diane Bredehoft

 

 

Vice President

 

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CoBANK, ACB

 

 

/s/ Dale Keyes

 

 

 

Dale Keyes

 

 

Vice President

 

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MORGAN STANLEY

 

 

 

 

 

 

 

 

/s/ Dan Gioia

 

 

 

Daniel Gioia

 

 

Authorized Signatory

 

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LASALLE BANK NATIONAL
ASSOCIATION

 

 

 

 

 

 

 

 

/s/ David C. Bond

 

 

 

David C. Bond

 

 

Senior Vice President

 

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ALLIED IRISH BANK p.l.c

 

 

 

 

 

/s/ Robert F. Moyle

 

 

 

Robert F. Moyle

 

 

Senior Vice President

 

 

 

 

 

 

 

 

/s/ Aidan Lanigan

 

 

 

Aidan Lanigan

 

 

Vice President

 

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RZB FINANCIAL LLC

 

 

 

 

 

/s/ Astrid Wilke

 

 

 

Astrid Wilke

 

 

Vice President

 

 

 

 

 

 

 

 

/s/ Pearl Geffers

 

 

 

Pearl Geffers

 

 

First Vice President

 

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