Sixteenth Amendment, dated March 10, 2009, to Credit Agreement



 EXHIBIT 10.48 
 SIXTEENTH AMENDMENT TO CREDIT AGREEMENT 
 THIS SIXTEENTH AMENDMENT TO CREDIT AGREEMENT
(this “Amendment”), dated as of March 10, 2009, is entered into by and among the lenders identified on the signature pages hereof (such lenders, together with their respective successors and permitted assigns, are referred to
hereinafter each individually as a “Lender” and collectively as the “Lenders”), WELLS FARGO BANK, NATIONAL ASSOCIATION, as the successor to Wells Fargo Foothill, Inc. as administrative agent for the Lenders
designated in the Credit Agreement referred to below (in such capacity, together with its successors and assigns in such capacity, “Agent”), and INFOCUS CORPORATION, an Oregon corporation (“Borrower”).

 RECITALS 
 A. Borrower,
Agent and the Lenders have previously entered into that certain Credit Agreement dated as of October 25, 2004 (as amended, the “Credit Agreement”). Terms used herein without definition shall have the meanings ascribed to them
in the Credit Agreement. 
 B. The Lenders, Agent and Borrower desire to address Borrower’s failure to comply with the requirements of
Section 6.16(a)(i) of the Credit Agreement as of the twelve month period ending December 31, 2008 (the “Breach”). 
 C.
Borrower is entering into this Amendment with the understanding and agreement that, except as specifically provided herein, none of Agent’s or any member of the Lender Group’s rights or remedies set forth in the Credit Agreement or any
other Loan Document is being waived or modified by the terms of this Amendment. 
 AGREEMENT 
 NOW, THEREFORE, in consideration of the foregoing and the mutual covenants herein contained, and for other good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, the parties hereby agree as follows: 
 1. Waiver. Lenders hereby waive the Event of
Default arising from the Breach. This waiver is not intended to be, and shall not be construed as being, a waiver or modification by Lenders of any other Obligation, nor construed as a willingness to grant any subsequent waiver of Borrower’s
obligations to Lenders. In consideration of the foregoing waiver, Borrower hereby releases, acquits and forever discharges Agent and each Lender, its affiliates, participants, officers, employees, agents, successors and assigns, of and from any and
all claims, demands, damages, liabilities, obligations, actions or causes of action in suits or causes of suit and unconditionally waives any defense, either at law or in equity, whether known or unknown, arising out of, connected with or in any way
related to the Obligations, the Loan Documents, the relationship between (i) Agent and Lenders (or any of them) and (ii) Borrower to and including the date of this Amendment. 
 2. Amendments to Credit Agreement. 
 (a) The first sentence of Section 3.3 of the Credit Agreement is hereby amended and restated to read as follows: 
 “This Agreement shall continue in full force and effect for a term ending on August 31, 2010 (the “Maturity Date”).” 
 (b) Section 3.5 of the Credit Agreement is hereby amended and restated to read as follows: 
  

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 “Borrower has the option, at any time upon 90 days prior written notice to Agent, to terminate this
Agreement by paying to Agent, in cash, (1) a fee equal to 0.5% of the Maximum Revolver Amount (the “Early Termination Fee”) and (2) the balance of the Obligations (including (a) either (i) providing cash collateral to
be held by Agent for the benefit of those Lenders with a Revolver Commitment in an amount equal to 105% of the Letter of Credit Usage, or (ii) causing the original Letters of Credit to be returned to the Issuing Lender, and (b) providing
cash collateral (in an amount determined by Agent as sufficient to satisfy the reasonably estimated credit exposure) to be held by Agent for the benefit of the Bank Product Providers with respect to the Bank Product Obligations), in full. If
Borrower has sent a notice of termination pursuant to the provisions of this Section, then the Revolver Commitments shall terminate and Borrower shall be obligated to pay the Early Termination Fee and to repay the balance of the Obligations
(including (a) either (i) providing cash collateral to be held by Agent for the benefit of those Lenders with a Revolver Commitment in an amount equal to 105% of the Letter of Credit Usage, or (ii) causing the original Letters of
Credit to be returned to the Issuing Lender, and (b) providing cash collateral (in an amount determined by Agent as sufficient to satisfy the reasonably estimated credit exposure) to be held by Agent for the benefit of the Bank Product
Providers with respect to the Bank Product Obligations), in full, on the date set forth as the date of termination of this Agreement in such notice.” 
 (c) “Section 6.16(a)(i) of the Credit Agreement is hereby amended and restated to read as follows: 
 “(i) Minimum EBITDA. EBITDA, for each period identified below, of at least the required amount set forth in the following table for such period: 
  

			
	 Applicable Amount
	  	 Applicable Period

	 $1,200,000
	  	For the 3 month period
ending December 31, 2004
	 $2,100,000
	  	For the 6 month period
ending March 31, 2005
	 $(29,250,000)
	  	For the 9 month period
ending June 30, 2005
	 $(38,500,000)
	  	For the 12 month period
ending September 30, 2005
	 $(92,500,000)
	  	For the 12 month period
ending December 31, 2005
	 $(80,500,000)
	  	For the 12 month period
ending March 31, 2006
	 $(61,500,000)
	  	For the 12 month period
ending June 30, 2006
	 $(31,000,000)
	  	For the 12 month period
ending September 30, 2006
	 $(5,350,000)
	  	For the 3 month period
ending December 31, 2006

  

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	 Applicable Amount
	  	 Applicable Period

	 $(11,100,000)
	  	For the 3 month period
ending March 31, 2007
	 $(7,400,000)
	  	For the 3 month period
ending June 30, 2007
	 $(5,300,000)
	  	For the 3 month period
ending September 30, 2007
	 $(1,000,000)
	  	For the 3 month period
ending December 31, 2007
	 $(5,000,000)
	  	For the 3 month period
ending March 31, 2008
	 $(6,500,000)
	  	For the 6 month period
ending June 30, 2008
	 $(7,500,000)
	  	For the 9 month period
ending September 30, 2008
	 $(15,000,000)
	  	For the 12 month period
ending December 31, 2008
	 $(10,250,000)
	  	For the 3 month period
ending March 31, 2009
	 $(17,500,000)
	  	For the 6 month period
ending June 30, 2009

 (d) Schedule 1.1 to the Credit Agreement is hereby amended to revise the
definition of “Base Rate Margin” in its entirety to read as follows: 
 “‘Base Rate Margin’ means
4.50 percentage points.” 
 (e) Schedule 5.3 to the Credit Agreement is hereby deleted and replaced with
Schedule 5.3 to this Amendment. 
 3. Accommodation Fee. In consideration of the agreements set forth herein, Borrower agrees to
pay to Agent, for the benefit of the Lenders, a non-refundable fee in the amount of $20,000, fully-earned as of and due and payable in full on the date of this Amendment. 
 4. Effectiveness of this Amendment. Agent must have received the following items, in form and content acceptable to Agent, before this Amendment is effective. 
 (a) Executed Amendment. This Amendment fully executed by all parties hereto in a sufficient number of counterparts for distribution
to all parties. 
 (b) Payment of Accommodation Fee. The accommodation fee provided for in Section 3 above, which
fee may be paid as a charge to Borrower’s Loan Account. 
  

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 (c) Representations and Warranties. The representations and warranties contained
herein shall be true and correct as of the date hereof. 
 5. Representations and Warranties. Borrower represents and warrants as
follows: 
 (a) Authority. Borrower has the requisite corporate power and authority to execute and deliver this
Amendment, and to perform its obligations hereunder and under the Loan Documents (as amended or modified hereby and by any amendments thereto referenced herein) to which it is a party. The execution, delivery and performance by Borrower of this
Amendment have been duly approved by all necessary corporate action and no other corporate proceedings are necessary to consummate such transactions. 
 (b) Enforceability. This Amendment has been duly executed and delivered by Borrower. This Amendment and each Loan Document (as amended or modified hereby) are the legal, valid and binding obligation of
Borrower, enforceable against Borrower in accordance with its terms, and is in full force and effect. 
 (c)
Representations and Warranties. After giving effect to this Amendment, the representations and warranties contained in each Loan Document (other than any such representations or warranties that, by their terms, are specifically made as of a
date other than the date hereof) are correct on and as of the date hereof as though made on and as of the date hereof. 
 (d)
Due Execution. The execution, delivery and performance of this Amendment are within the power of Borrower, have been duly authorized by all necessary corporate action, have received all necessary governmental approval, if any, and do not
contravene any law or any contractual restrictions binding on Borrower. 
 (e) No Default. No event has occurred and is
continuing that constitutes a Default or an Event of Default. 
 6. Choice of Law. The validity of this Amendment, its construction,
interpretation and enforcement, the rights of the parties hereunder, shall be determined under, governed by, and construed in accordance with the internal laws of the State of New York governing contracts only to be performed in that State.

 7. Counterparts. This Amendment may be executed in any number of counterparts and by different parties and separate counterparts,
each of which when so executed and delivered, shall be deemed an original, and all of which, when taken together, shall constitute one and the same instrument. Delivery of an executed counterpart of a signature page to this Amendment by
telefacsimile or other similar method of electronic transmission shall be effective as delivery of a manually executed counterpart of this Amendment. 
 8. Reference to and Effect on the Loan Documents. 
 (a) Upon and after the
effectiveness of this Amendment, each reference in the Credit Agreement to “this Agreement”, “hereunder”, “hereof” or words of like import referring to the Credit Agreement, and each reference in the other Loan
Documents to “the Credit Agreement”, “thereof” or words of like import referring to the Credit Agreement, shall mean and be a reference to the Credit Agreement as modified and amended hereby. 
 (b) Except as specifically amended above, the Credit Agreement and all other Loan Documents are and shall continue to be in full force and
effect and are hereby in all respects ratified and confirmed and shall constitute the legal, valid, binding and enforceable obligations of Borrower to the Lender Group. 
 (c) The execution, delivery and effectiveness of this Amendment shall not, except as expressly provided herein, operate as a waiver of any
right, power or remedy of the Agent and Lender Group under any of the Loan Documents, nor constitute a waiver of any provision of any of the Loan Documents. 
  

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 (d) To the extent that any terms and conditions in any of the Loan Documents shall
contradict or be in conflict with any terms or conditions of the Credit Agreement, after giving effect to this Amendment, such terms and conditions are hereby deemed modified or amended accordingly to reflect the terms and conditions of the Credit
Agreement as modified or amended hereby. 
 9. Ratification. Borrower hereby restates, ratifies and reaffirms each and every term and
condition set forth in the Credit Agreement, as amended hereby, and the Loan Documents effective as of the date hereof. 
 10.
Estoppel. To induce Agent and Lender Group to enter into this Amendment and to continue to make advances to Borrower under the Credit Agreement, Borrower hereby acknowledges and agrees that, as of the date hereof, there exists no right of
offset, defense, counterclaim or objection in favor of Borrower as against any member of the Lender Group with respect to the Obligations. 
 11. Integration. This Amendment, together with the other Loan Documents, incorporates all negotiations of the parties hereto with respect to the subject matter hereof and is the final expression and agreement of the parties hereto
with respect to the subject matter hereof. 
 12. Severability. In case any provision in this Amendment shall be invalid, illegal or
unenforceable, such provision shall be severable from the remainder of this Amendment and the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby. 
 IN WITNESS WHEREOF, the parties have entered into this Amendment as of the date first above written. 
  

			
	INFOCUS CORPORATION,
	an Oregon corporation
		
	By:	 	/s/ Lisa Prentice
	Name: Lisa Prentice
	Title: Chief Financial Officer
	
	WELLS FARGO BANK, NATIONAL ASSOCIATION, as Agent and a Lender
		
	By:	 	/s/ Norm Chinn
	Name: Norm Chinn
	Title: Vice President


  

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 SCHEDULE 5.3 
 Provide Agent (and if so requested by Agent, with copies for each Lender) with each of the financial statements, reports, or other items set forth set forth below at the following times in form satisfactory to Agent:

  

			
	as soon as available, but in any event within 30 days after the end of each month during each of Borrower’s fiscal years	  	 (a) an unaudited consolidated balance sheet, income statement, and statement of cash flow covering Borrower’s and its Subsidiaries’
operations during such period,
  
 (b) a Compliance Certificate, and
  
 (c) a company prepared consolidated and consolidating balance sheet, income statement, and statement
of cash flow covering South Mountain Technologies, Ltd., a limited liability company organized under the laws of the Cayman Islands, and its Subsidiaries.

		
	as soon as available, but in any event within 45 days after the end of each fiscal quarter during each of Borrower’s fiscal years	  	 (d) an unaudited consolidated and consolidating balance sheet, income statement, and statement of cash flow covering Borrower’s and its
Subsidiaries’ operations during such period, and
  
 (e) a Compliance Certificate.


		
	as soon as available, but in any event within 90 days after the end of each of Borrower’s fiscal years	  	 (f) consolidated and consolidating financial statements of Borrower and its Subsidiaries for each such fiscal year, audited by independent certified
public accountants reasonably acceptable to Agent and certified, without any qualifications (including any (A) “going concern” or like qualification or exception, (B) qualification or exception as to the scope of such audit, or (C)
qualification which relates to the treatment or classification of any item and which, as a condition to the removal of such qualification, would require an adjustment to such item, the effect of which would be to cause any noncompliance with the
provisions of Section 6.16), by such accountants to have been prepared in accordance with GAAP (such audited financial statements to include a balance sheet, income statement, and statement of cash flow and, if prepared, such accountants’
letter to management),
  
 (g) consolidated and consolidating financial statements of
South Mountain Technologies, Ltd., a limited liability company organized under the laws of the Cayman Islands, and its Subsidiaries (if any), for each of its fiscal years beginning with its fiscal year ending 2005, audited by independent certified
public accountants reasonably acceptable to Agent and certified, without any qualifications (including any qualification or exception as to the scope of such audit), by such accountants to have been prepared in accordance with GAAP (such audited
financial statements to include a balance sheet, income statement, and statement of cash flow and, if prepared, such accountants’ letter to management), and
  
 (h) a Compliance Certificate.

		
	as soon as available, but in any event (a) by May 31, 2009 for Borrower’s fiscal year 2009 and (b) within 15 days prior to the start of each of Borrower’s other fiscal
years,	  	(i) copies of Borrower’s Projections, in form and substance (including as to scope and underlying assumptions) satisfactory to Agent, in its Permitted Discretion, for the forthcoming 2
years, year by year, and for the forthcoming fiscal year, on a quarterly basis, certified by the chief financial officer of Borrower as being such officer’s good faith estimate of the financial performance of Borrower during the period covered
thereby.

  

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	as soon as available, but in any event within 30 days after the end of each fiscal quarter,	  	(j) copies of the projections for South Mountain Technologies, Ltd., a limited liability company organized under the laws of the Cayman Islands, and its Subsidiaries in form and substance
(including as to scope and underlying assumptions) satisfactory to Agent, in its Permitted Discretion, for the forthcoming four quarters, on a quarterly basis.
		
	if and when filed by Borrower,	  	 (k) Form 10-Q quarterly reports, Form 10-K annual reports, and Form 8-K current reports,
  
 (l) any other filings made by Borrower with the SEC, and
  
 (m) any other information that is provided by Borrower to its shareholders
generally.

		
	promptly, but in any event within 5 days after any officer of Borrower has knowledge of any event or condition that constitutes a Default or an Event of Default,	  	(n) notice of such event or condition and a statement of the curative action that Borrower proposes to take with respect thereto.
		
	promptly after the commencement thereof, but in any event within 5 days after the service of process with respect thereto on Borrower or any of its Subsidiaries,	  	(o) notice of all actions, suits, or proceedings brought by or against Borrower or any of its Subsidiaries before any Governmental Authority which reasonably could be expected to result in a
Material Adverse Change.
		
	upon the request of Agent,	  	(p) any other information reasonably requested relating to the financial condition of Borrower or its Subsidiaries.

  

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