Exhibit 10.1.9

 

EIGHTH AMENDMENT TO CREDIT AGREEMENT AND CONSENT

 

THIS EIGHTH AMENDMENT TO CREDIT AGREEMENT AND CONSENT (this “Amendment”),
effective as of December 12, 2014 (the “Effective Date”), is by and among IXIA,
a California corporation (the “Borrower”), the Guarantors party hereto, the
Lenders party hereto and BANK OF AMERICA, N.A., as administrative agent (in such
capacity, the “Administrative Agent”). Capitalized terms used herein and not
otherwise defined herein shall have the meanings ascribed thereto in the Credit
Agreement (as hereinafter defined).

 

W I T N E S S E T H

 

WHEREAS, the Borrower, the Subsidiaries of the Borrower from time to time party
thereto (the “Guarantors”), certain banks and financial institutions from time
to time party thereto (the “Lenders”) and Bank of America, N.A., as
Administrative Agent, Swingline Lender and L/C Issuer, are parties to that
certain Credit Agreement dated as of December 21, 2012 (as amended, modified,
extended, restated, replaced, or supplemented from time to time, the “Credit
Agreement”);

 

WHEREAS, the Borrower has entered into that certain Indenture, dated as of
December 7, 2010, between Borrower and Wells Fargo Bank, National Association,
as trustee, pursuant to which the Borrower has issued certain unsecured 3.00%
Convertible Senior Notes due 2015, which notes are due on December 15, 2015 (the
“Existing Convertible Notes”);

 

WHEREAS, the Loan Parties have requested that the Required Lenders (a) permit
the Company to deliver, pursuant to the provisions of an exchange agreement or
agreements to be entered into between certain holders (or their representatives)
of Existing Convertible Notes (the “Holders”) new unsecured convertible senior
notes of the Borrower (the “New Convertible Notes”) in exchange for Existing
Convertible Notes (the “Exchanged Convertible Notes”) to be issued pursuant to a
new Indenture to be entered into between the Borrower and Wells Fargo Bank,
National Association (or such other financial institution as may be selected the
Borrower), as trustee (the “New Convertible Note Trustee”), which New
Convertible Notes will (i) be in principal amounts that are equal to the
principal amounts of the Exchanged Convertible Notes (ii) have (A) an interest
(i.e., coupon) rate that is higher than the interest rate on the Exchanged
Convertible Notes, (B) a maturity date that is subsequent to the maturity date
of the Exchanged Convertible Notes and (C) such other terms as may be agreed
between the Borrower and the Holders or between the Borrower and the New
Convertible Note Trustee, as applicable (the “Convertible Note Exchange”) and
(b) amend certain provisions of the Credit Agreement; and

 

WHEREAS, the Lenders party hereto, constituting the Required Lenders, are
willing to consent to the Convertible Note Exchange and amend the Credit
Agreement, in each case, in accordance with and subject to the terms and
conditions set forth herein.

 

NOW, THEREFORE, in consideration of the agreements hereinafter set forth, and
for other good and valuable consideration, the receipt and adequacy of which are
hereby acknowledged, the parties hereto agree as follows:

 

 
 

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ARTICLE I
AMENDMENT

 

1.1     Amendments to Section 1.01.

 

(a)     The following definitions appearing in Section 1.01 of the Credit
Agreement are hereby amended and restated in their entirety as follows:

 

“Convertible Notes” means the 3.00% unsecured convertible notes of the Borrower
due December 15, 2015 in an aggregate principal amount of $200,000,000 issued
and sold pursuant to the Convertible Note Documents, as such convertible notes
may be exchanged as contemplated by the Eighth Amendment.

 

“Convertible Note Documents” means the Indenture, dated as of December 7, 2010,
between Borrower and Wells Fargo Bank, National Association, the Convertible
Notes and all other agreements, instruments and other documents pursuant to
which the Convertible Notes have been or will be issued or otherwise setting
forth the terms of the Convertible Notes, as such documents may be amended,
restated, supplemented or replaced as contemplated by the Eighth Amendment.

 

“Maturity Date” means January 31, 2015.

 

(b)     The following definition is hereby added to Section 1.01 of the Credit
Agreement in alphabetical order as follows:

 

“Eighth Amendment” shall mean that certain Eighth Amendment to Credit Agreement
and Consent, dated December 12, 2014.

 

(c)     The definition of “Springing Maturity Date” is hereby deleted from
Section 1.01 of the Credit Agreement.

 

1.2     Amendment to Section 6.17. Section 6.17 of the Credit Agreement is
hereby amended and restated in its entirety to read as follows:

 

6.17     [Reserved].

 

1.3     Amendment to Section 7.06(b). Section 7.06(b) of the Credit Agreement is
hereby amended and restated in its entirety to read as follows:

 

(b)     [reserved];

 

ARTICLE II
CONSENT

 

2.1     Consent to the Convertible Note Exchange. Subject to the terms and
conditions set forth herein and upon the effectiveness of this Amendment, the
Administrative Agent and the Lenders party hereto, constituting the Required
Lenders, hereby consent to the Convertible Note Exchange notwithstanding
anything in Section 7.15 of the Credit Agreement or in any other Loan Document
to the contrary. The consent set forth in this Section 2.1 shall be effective
only to the extent specifically set forth herein and shall not: (a) be construed
as a waiver of any breach, Default or Event of Default nor as a waiver of any
breach, Default or Event of Default of which the Lenders have not been informed
by the Loan Parties, (b) affect the right of the Lenders to demand compliance by
the Loan Parties with all terms and conditions of the Loan Documents, except as
specifically modified or waived by this Amendment, (c) be deemed a waiver of any
action or future action on the part of the Loan Parties requiring the Lenders’
or the Required Lenders’ consent or approval under the Loan Documents, or (d) be
deemed or construed to be a waiver or release of, or a limitation upon, the
Administrative Agent’s or the Lenders’ exercise of any rights or remedies under
the Credit Agreement or any other Loan Document, whether arising as a
consequence of any Default or Event of Default which may now exist or otherwise,
all such rights and remedies are hereby being expressly reserved.

 

 
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ARTICLE III
CONDITIONS TO LENDERS’ OBLIGATIONS

 

3.1     Closing Conditions. This Amendment shall become effective as of the
Effective Date upon satisfaction (or waiver) of the following conditions:

 

(a)     Executed Amendment. The Administrative Agent shall have received a copy
of this Amendment duly executed by each of the Loan Parties, the Lenders
constituting the Required Lenders and the Administrative Agent.

 

(b)     Default. Other than as previously disclosed to and acknowledged by the
Administrative Agent, no Default or Event of Default shall exist.

 

(c)     Fees and Expenses. The Administrative Agent shall have received from the
Borrower such fees and expenses that are payable by Borrower in connection with
the consummation of the transactions contemplated hereby.

 

(d)     Miscellaneous. All other documents and legal matters in connection with
the transactions contemplated by this Amendment shall be reasonably satisfactory
in form and substance to the Administrative Agent and its counsel.

 

ARTICLE IV
MISCELLANEOUS

 

4.1     Amended Terms. On and after the Effective Date, all references to the
Credit Agreement in each of the Loan Documents shall hereafter mean the Credit
Agreement as amended by this Amendment. Except as specifically amended hereby or
otherwise agreed, the Credit Agreement is hereby ratified and confirmed and
shall remain in full force and effect according to its terms.

 

4.2     Representations and Warranties of Loan Parties. Each of the Loan Parties
represents and warrants, as of the Effective Date, as follows:

 

(a)     It has taken all necessary action to authorize the execution, delivery
and performance of this Amendment.

 

(b)     This Amendment has been duly executed and delivered by such Person and
constitutes such Person’s legal, valid and binding obligation, enforceable in
accordance with its terms, except as such enforceability may be subject to
(i) bankruptcy, insolvency, reorganization, fraudulent conveyance or transfer,
moratorium or similar laws affecting creditors’ rights generally and
(ii) general principles of equity (regardless of whether such enforceability is
considered in a proceeding at law or in equity).

 

 
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(c)     No consent, approval, authorization or order of, or filing, registration
or qualification with, any court or governmental authority or third party is
required in connection with the execution, delivery or performance by such
Person of this Amendment.

 

(d)     The representations and warranties set forth in Article V of the Credit
Agreement shall (i) with respect to representations and warranties that contain
a materiality qualification, be true and correct (subject to the materiality
qualifications set forth therein) and (ii) with respect to representations and
warranties that do not contain a materiality qualification, be true and correct
in all material respects, and except that for purposes of this Section 4.2(d),
the representations and warranties contained in Sections 5.05(a) and (b) of the
Credit Agreement shall be deemed to refer to the most recent statements
furnished pursuant to Sections 6.01(a) and (b) of the Credit Agreement,
respectively.

 

(e)     After giving effect to this Amendment, no event has occurred and is
continuing which constitutes a Default or an Event of Default, in either case,
of which the Lenders have not been informed.

 

(f)     The Collateral Documents continue to create a valid security interest
in, and Lien upon, the Collateral, in favor of the Administrative Agent, for the
benefit of the Lenders, which security interests and Liens are perfected in
accordance with the terms of the Collateral Documents and prior to all Liens
other than Permitted Liens.

 

(g)     The Loans and other amounts payable by Borrower pursuant to the Credit
Agreement are not reduced or modified by this Amendment and are not subject to
any offsets, defenses or counterclaims.

 

4.3     Reaffirmation of Obligations. Each Loan Party hereby ratifies each Loan
Document to which it is a party and acknowledges and reaffirms (a) that it is
bound by all terms of each Loan Document applicable to it and (b) that it is
responsible for the observance and full performance of its respective
Obligations.

 

4.4     Loan Document. This Amendment shall constitute a Loan Document under the
terms of the Credit Agreement.

 

4.5     Expenses. The Borrower agrees to pay all reasonable costs and expenses
of the Administrative Agent in connection with the preparation, execution and
delivery of this Amendment, including without limitation the reasonable fees and
expenses of the Administrative Agent’s legal counsel.

 

4.6     Further Assurances. The Loan Parties agree to promptly take such action,
upon the request of the Administrative Agent, as is necessary to carry out the
intent of this Amendment.

 

 
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4.7     Entirety. This Amendment and the other Loan Documents embody the entire
agreement among the parties hereto and supersede all prior agreements and
understandings, oral or written, if any, relating to the subject matter hereof.

 

4.8     Counterparts; Telecopy. This Amendment may be executed in any number of
counterparts, each of which when so executed and delivered shall be an original,
but all of which shall constitute one and the same instrument. Delivery of an
executed counterpart of a signature page of this Amendment or any other document
required to be delivered hereunder, by fax transmission or e-mail transmission
(e.g. “pdf” or “tif”) shall be effective as delivery of a manually executed
counterpart of this Agreement. Without limiting the foregoing, upon the request
of any party, such fax transmission or e-mail transmission shall be promptly
followed by such manually executed counterpart.

 

4.9     No Actions, Claims, Etc. As of the date hereof, each of the Loan Parties
hereby acknowledges and confirms that it has no knowledge of any actions, causes
of action, claims, demands, damages and liabilities of whatever kind or nature,
in law or in equity, against the Administrative Agent, the Lenders, or the
Administrative Agent’s or the Lenders’ respective officers, employees,
representatives, agents, counsel or directors arising from any action by such
Persons, or failure of such Persons to act under the Credit Agreement on or
prior to the date hereof.

 

4.10     GOVERNING LAW. THIS AMENDMENT SHALL BE GOVERNED BY, AND SHALL BE
CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE LAWS OF THE STATE OF CALIFORNIA.

 

4.11     Successors and Assigns. This Amendment shall be binding upon and inure
to the benefit of the parties hereto and their respective successors and
assigns.

 

4.12     Consent to Jurisdiction; Service of Process; Waiver of Jury Trial. The
jurisdiction, service of process and waiver of jury trial provisions set forth
in Sections 11.14 and 11.15 of the Credit Agreement are hereby incorporated by
reference, mutatis mutandis.

 

[SIGNATURES ON THE FOLLOWING PAGES]

 

 
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IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly
executed on the date first above written.

 

BORROWER:  

IXIA,

 

 

a California corporation

 

 

 

 

 

 

 

 

 

  By:      /s/ Ronald W. Buckly     Name: Ronald W. Buckly  

 

Title:

Senior Vice President, Corporate Affairs

     and General Counsel

 

                          

GUARANTORS:               

 

  CATAPULT COMMUNICATIONS CORPORATION           By:

   /s/ Ronald W. Buckly

   

Name:

Title:

 Ronald W. Buckly
 Vice President, Legal             VERIWAVE, INC.             By:

   /s/ Ronald W. Buckly

   

Name:

Title:

 Ronald W. Buckly
 Vice President, Legal             ANUE SYSTEMS, INC.             By:

   /s/ Ronald W. Buckly

   

Name:

Title:

 Ronald W. Buckly
 Senior Vice President, Legal             BREAKINGPOINT SYSTEMS, INC.          
  By:

   /s/ Ronald W. Buckly

   

Name:

Title:

 Ronald W. Buckly
 Senior Vice President, Legal             NET OPTICS, INC.             By:

   /s/ Ronald W. Buckly

   

Name:

Title:

 Ronald W. Buckly
 Vice President and Secretary  

 

 

[Signature Page to Eighth Amendment to Credit Agreement and Consent]

 

 

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NET OPTICS IL, LLC

By:          /s/ Ronald W. Buckly        
Name: Ronald W. Buckly
Title:   Secretary

 

 

[Signature Page to Eighth Amendment to Credit Agreement and Consent]

 

 

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ADMINISTRATIVE AGENT:

BANK OF AMERICA, N.A.,
in its capacity as Administrative Agent

     

By:     /s/ Mollie S. Canup                    

Name: Mollie S. Canup

Title:   Vice President 

 

 

[Signature Page to Eighth Amendment to Credit Agreement and Consent]

 

 

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LENDERS:

BANK OF AMERICA, N.A.,
in its capacity as Lender

     

By:     /s/ Robert L. Wallace, Jr.                    

Name:  Robert L. Wallace, Jr.                        

Title:     SVP                                                      

 

 

[Signature Page to Eighth Amendment to Credit Agreement and Consent]

 

 

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U.S. BANK NATIONAL ASSOCIATION,
as a Lender

 

 

By:     /s/ Christopher D. Zumberge               

Name:   Christopher D. Zumberge                  

Title:     Senior Vice President                         

 

 

[Signature Page to Eighth Amendment to Credit Agreement and Consent]

 

 

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SILICON VALLEY BANK,
as a Lender

 

 

By:     /s/ Raj Morey                         

Name:  Raj Morey                            

Title:    Vice President                      

 

 

[Signature Page to Eighth Amendment to Credit Agreement and Consent]

 

 

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HSBC BANK USA, NATIONAL ASSOCIATION,

as a Lender

 

 

By:                                                                                       

Name: ____________________________________

Title: _____________________________________

 

 

[Signature Page to Eighth Amendment to Credit Agreement and Consent]

 

 

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BARCLAYS BANK PLC,
as a Lender

 

 

By:     /s/ Christine Aharonian                 

Name:   Christine Aharonian                    

Title:     Vice President                               

 

 

[Signature Page to Eighth Amendment to Credit Agreement and Consent]

 

 

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STIFEL BANK AND TRUST,
as a Lender

 

 

By:     /s/ Benjamin L. Dodd                    

Name:   Benjamin L. Dodd                       

Title:     Senior Vice President                 

 

 

[Signature Page to Eighth Amendment to Credit Agreement and Consent]

 

 

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DEUTSCHE BANK TRUST COMPANY AMERICAS,
as a Lender

 

 

By:                                                                                        

Name: ___________________________________

Title: ____________________________________

 

 

[Signature Page to Eighth Amendment to Credit Agreement and Consent]