exv10w26









Exhibit 10.26




FIRST AMENDMENT TO REVOLVING CREDIT

AND SECURITY AGREEMENT





     This First Amendment to Revolving Credit and Security Agreement (the “Amendment”) is
made this 22nd day of January, 2010 by and among RAND WORLDWIDE U.S. HOLDINGS,
INC., a corporation organized under the laws of the State of Delaware (“Rand Worldwide U.S.”), RAND
IMAGINIT TECHNOLOGIES, INC., a corporation organized under the laws of the State of Delaware (“Rand
Imaginit”), RAND TECHNOLOGIES OF MICHIGAN, INC., a corporation organized under the laws of the
State of Michigan (“Rand Michigan”) (Rand Worldwide U.S., Rand Imaginit and Rand Michigan, each a
“US Borrower” and collectively the “US Borrowers”) and RAND A TECHNOLOGY CORPORATION, a corporation
organized under the laws of the Province of Ontario (“Foreign Borrower”) (US Borrowers and Foreign
Borrower, each a “Borrower” and collectively the “Borrowers”) (each a “Borrower”, and collectively
“Borrowers”), the financial institutions which are now or which hereafter become a party hereto
(collectively, the “Lenders” and each individually a “Lender”) and PNC BANK, NATIONAL ASSOCIATION
(“PNC”), as agent for Lenders (PNC, in such capacity, the “Agent”).



BACKGROUND




     A. On August 14, 2009, Borrowers, Lenders and Agent entered into that certain Revolving
Credit and Security Agreement (as same has been or may be amended, modified, renewed, extended,
replaced or substituted from time to time, the “Loan Agreement”) to reflect certain financing
arrangements between the parties thereto. The Loan Agreement and all other documents executed in
connection therewith to the date hereof are collectively referred to as the “Existing Financing
Agreements.” All capitalized terms not otherwise defined herein shall have the meaning ascribed
thereto in the Loan Agreement.



     B. Borrowers have requested that Agent and Lenders modify the definition of “Letter of
Credit Sublimit” contained in the Loan Agreement, and Agent and Lenders are willing to do so on the
terms and conditions hereafter set forth.



     NOW THEREFORE, with the foregoing background hereinafter deemed incorporated by reference
herein and made part hereof, the parties hereto, intending to be legally bound, promise and agree
as follows:



     1. Amendments to Loan Agreement.



          (a) On the Effective Date, the following definition contained in Section 1.2 of the Loan
Agreement is hereby amended and restated in its entirety as follows:




     “Letter of Credit Sublimit” shall mean $500,000.



     2. Representations and Warranties of Borrowers. Each Borrower hereby:



          (a) reaffirms all representations and warranties made to Agent and Lenders under the Loan
Agreement and all of the other Existing Financing Agreements and confirms that



 









 




all are true and correct in all material respects as of the date hereof (except to the extent
any such representations and warranties specifically relate to a specific date, in which case such
representations and warranties were true and correct in all material respects on and as of such
other specific date);




          (b) reaffirms all of the covenants contained in the Loan Agreement (as amended hereby),
covenants to abide thereby until all Advances, Obligations and other liabilities of Borrowers to
Agent and Lenders under the Loan Agreement of whatever nature and whenever incurred, are satisfied
and/or released by Agent and Lenders;



          (c) represents and warrants that no Default or Event of Default has occurred and is
continuing under any of the Existing Financing Agreements;



          (d) represents and warrants that it has the authority and legal right to execute, deliver
and carry out the terms of this Amendment, that such actions were duly authorized by all necessary
limited liability company or corporate action, as applicable, and that the officers executing this
Amendment on its behalf were similarly authorized and empowered, and that this Amendment does not
contravene any provisions of its certificate of incorporation or formation, operating agreement,
bylaws, or other formation documents, as applicable, or of any contract or agreement to which it
is a party or by which any of its properties are bound; and



          (e) represents and warrants that this Amendment and all assignments, instruments,
documents, and agreements executed and delivered in connection herewith, are valid, binding and
enforceable in accordance with their respective terms, except as such enforceability may be limited
by any applicable bankruptcy, insolvency, moratorium or similar laws affecting creditors’ rights
generally.



     3. Conditions Precedent/Effectiveness Conditions. This Amendment shall be
effective upon the date of satisfaction of the following conditions precedent (“Effective Date”)
(all documents to be in form and substance reasonably satisfactory to Agent and Agent’s counsel):



          (a) Agent shall have received this Amendment fully executed by the Borrowers; and



          (b) Agent shall have received such other agreements, documents or information as
requested by Agent in its reasonable discretion.



     4. Further Assurances. Each Borrower hereby agrees to take all such actions and
to execute and/or deliver to Agent and Lenders all such documents, assignments, financing
statements and other documents, as Agent and Lenders may reasonably require from time to time, to
effectuate and implement the purposes of this Amendment.



     5. Payment of Expenses. Borrowers shall pay or reimburse Agent and Lenders for
its reasonable attorneys’ fees and expenses in connection with the preparation, negotiation and
execution of this Amendment and the documents provided for herein or related hereto.



 









 





     6. Reaffirmation of Loan Agreement. Except as modified by the terms hereof,
all of the terms and conditions of the Loan Agreement, as amended, and all other of the Existing
Financing Agreements are hereby reaffirmed and shall continue in full force and effect as therein
written.



     7. Confirmation of Indebtedness. Borrowers confirm and acknowledge that as of
the close of business on January 14, 2010, US Borrowers were indebted to Agent and Lenders for the
Advances under the Loan Agreement without any deduction, defense, setoff, claim or counterclaim, of
any nature, in the aggregate principal amount of ($2,883,300.00), due on account of Revolving
Advances and ($20,000) on account of undrawn Letters of Credit, Foreign Borrower was indebted to
Agent and Lenders for the Advances under the Loan Agreement without any deduction, defense, setoff,
claim or counterclaim, of any nature, in the aggregate principal amount of ($0.00), plus in
each case all fees, costs and expenses incurred to date in connection with the Loan Agreement and
the Other Documents.



     8. Acknowledgment of Guarantors. By execution of this Amendment, each
Guarantor hereby covenants and agrees that its Limited Guaranty and Suretyship Agreement or
Guaranty and Suretyship Agreement, as applicable, dated August 14, 2009 shall remain in full force
and effect and shall continue to cover the Guaranteed Obligations (as defined in their respective
Limited Guaranty and Suretyship Agreements).



     9. Acknowledgment of Subordinated Creditors. By execution of this Amendment,
Subordinated Agent, on behalf of subordinated lenders, hereby covenants and agrees that the
Intercreditor Agreement dated August 14, 2009 shall remain in full force and effect.



     10. Miscellaneous.



          (a) Third Party Rights. No rights are intended to be created hereunder for the
benefit of any third party donee, creditor, or incidental beneficiary.



          (b) Headings. The headings of any paragraph of this Amendment are for
convenience only and shall not be used to interpret any provision hereof.



          (c) Modifications. No modification hereof or any agreement referred to herein
shall be binding or enforceable unless in writing and signed on behalf of the party against whom
enforcement is sought.



          (d) Governing Law. The terms and conditions of this Amendment shall be governed
by the laws of the State of Illinois.



          (e) Counterparts. This Amendment may be executed in any number of and by
different parties hereto on separate counterparts, all of which, when so executed, shall be deemed
an original, but all such counterparts shall constitute one and the same agreement. Any signature
delivered by a party by facsimile or pdf transmission shall be deemed to be an original signature
hereto.



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     IN WITNESS WHEREOF, the parties have caused this Amendment to be executed and delivered by
their duly authorized officers as of the date first above written.



	 	 	 	 	 
	 	BORROWERS:



RAND WORLDWIDE U.S. HOLDINGS, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 



	 	 	 	 	 
	 	RAND A TECHNOLOGY CORPORATION

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 



	 	 	 	 	 
	 	RAND TECHNOLOGIES OF MICHIGAN, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 



	 	 	 	 	 
	 	RAND IMAGINIT TECHNOLOGIES, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	PNC BANK, NATIONAL ASSOCIATION,

as Lender and as Agent

 	 
	 	By:  	 	 
	 	 	John M. Cunningham, Vice President 	 



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GUARANTORS:




	 	 	 	 	 
	 	AMPERSAND 2001 COMPANION FUND LIMITED PARTNERSHIP



By: AMP-01 Management Company Limited Liability

       Company, its General Partner

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	Principal Managing Member 	 
	 
	 	AMPERSAND 2001 LIMITED PARTNERSHIP





By: AMP-01 Management Company Limited Liability

       Company, its General Partner

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	Principal Managing Member 	 
	 
	 	AMPERSAND 2006 LIMITED PARTNERSHIP





By: AMP-06 Management Company Limited Partnership,

       its General Partner



By: AMP-06 MC LLC, its General Partner

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	Principal Managing Member 	 
	 
	 	RAND WORLDWIDE, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	Marc Dulude, President 	 



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	 	SUBORDINATED CREDITOR:





AMPERSAND 2006 LIMITED PARTNERSHIP, as agent for
subordinated lenders





By: AMP-06 Management Company Limited Partnership,

       its General Partner

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title: