EXHIBIT 10.4

 

THIRD AMENDMENT TO
FIRST AMENDED AND RESTATED CREDIT AGREEMENT

 

This Third Amendment (this “Amendment”), dated as of May 12, 2008 but effective
as of March 1, 2008 (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 and the Second Amendment dated as of December 17, 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

 

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 Section 6.06(e). Section 6.06(e) of the Credit Agreement
is hereby amended by deleting the value “$12,000,000” contained in clause
(iii) thereof, and replacing the same with the value “$12,006,000”.

 

(b)      Amendment to Section 6.20. Section 6.20 of the Credit Agreement is
hereby amended in its entirety to read as follows:

 

Permit, as of last day of any month occurring during any period set forth below,
the ratio of Consolidated EBITDA for the twelve months then ending to
Consolidated Interest Expense for such period set forth below to be less than
the ratio set forth below opposite such period:

 

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Period

 

Interest Coverage Ratio

 

 

 

 

 

From March 1, 2008 through August 31, 2008

 

1.40 to 1.00

 

 

 

 

 

From September  1, 2008 through the Maturity Date

 

1.60 to 1.00

 

 

(c) Amendment to Section 6.21. Section 6.21 of the Credit Agreement is hereby
amended in its entirety to read as follows:

 

Permit the Leverage Ratio at any time during the relevant period set forth below
to be greater than the ratio set forth below opposite such period:

 

 

 

Maximum

 

Relevant Period

 

Leverage Ratio

 

 

 

 

 

From March 1, 2008 through June 30, 2008

 

5.00 to 1.00

 

 

 

 

 

From July 1, 2008 through August 31, 2008

 

4.75 to 1.00

 

 

 

 

 

From September 1, 2008 to September 30, 2008

 

4.50 to 1.00

 

 

 

 

 

From October 1, 2008 through the Maturity Date

 

4.00 to 1.00

 

 

Section 2.       Amendment to Exhibit C. Exhibit C to the Credit Agreement is
hereby amended as attached hereto as Annex I.

 

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;

 

(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

 

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(c)      evidence that the Borrowers have paid (i) the Administrative Agent for
the pro rata benefit of each Lender that has executed this Amendment on or
before May 12, 2008 an amendment fee equal to 0.125% of the aggregate Revolving
Commitments of such Lenders 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 date hereof pursuant to the Credit Agreement.

 

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.

 

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

 

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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.

 

 

 

 

By:

/s/ Chaitu Parikh

 

 

Chaitu Parikh

 

 

Vice President and CFO

 

 

 

 

MXENERGY ELECTRIC INC.

 

 

 

 

By:

/s/ Chaitu Parikh

 

 

Chaitu Parikh

 

 

Vice President and CFO

 

 

 

 

GUARANTORS:

 

 

 

 

MXENERGY HOLDINGS INC.

 

 

 

 

By:

/s/ Chaitu Parikh

 

 

Chaitu Parikh

 

 

Vice President and CFO

 

 

 

 

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.

 

 

 

 

By:

/s/ Chaitu Parikh

 

 

Chaitu Parikh

 

 

Vice President and CFO

 

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LENDERS:

 

 

 

 

SOCIÉTÉ GÉNÉRALE

 

 

 

 

By:

/s/Barbara Paulsen

 

Name:

Barbara Paulsen

 

Title:

Managing Director

 

 

 

 

By:

/s/Chung-Taek On

 

Name:

Chung-Taek On

 

Title:

Vice President

 

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WACHOVIA BANK, N.A.

 

 

 

 

By:

/s/Roger Grossman

 

Name:

Roger Grossman

 

Title:

Vice President

 

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CoBANK, ACB

 

 

 

 

By:

/s/ Dale Keyes

 

Name:

Dale Keyes

 

Title:

Vice President

 

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MORGAN STANLEY BANK

 

 

 

 

By:

/s/ Daniel Twenge

 

Name:

Daniel Twenge

 

Title:

Authorized Signatory

 

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LASALLE BANK NATIONAL ASSOCIATION

 

 

 

 

By:

/s/Scott Moreen

 

Name:

Scott Moreen

 

Title:

Executive Vice President

 

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ALLIED IRISH BANKS p.l.c.

 

 

 

 

By:

/s/Vaughn Buck

 

Name:

Vaughn Buck

 

Title:

Director

 

 

 

 

By:

/s/Aidan Lanigan

 

Name:

Aidan Lanigan

 

Title:

Vice President

 

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RZB FINANCIAL LLC

 

 

 

 

By:

/s/ Hermine Kirolos

 

Name:

Hermine Kirolos

 

Title:

Group Vice President

 

 

 

 

By:

/s/ Yang Weng

 

Name:

Yang Weng

 

Title:

Vice President

 

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