Document:

Unassociated Document

Exhibit 10.2.4

 

FOURTH AMENDMENT TO CREDIT AGREEMENT

 

THIS FOURTH AMENDMENT TO CREDIT AGREEMENT (this "Amendment"), with an effective date as of March 7, 2011, is entered into by and among the Lenders party hereto, WELLS FARGO CAPITAL FINANCE, LLC, formerly known as Wells Fargo Foothill, LLC, a Delaware limited liability company, as the agent for the Lenders (in such capacity, "Agent"), MDC PARTNERS INC., a Canadian corporation ("Parent"), MAXXCOM INC., a Delaware corporation ("Borrower"), and each of the Subsidiaries of
Parent identified on the signature pages hereof (together with Parent and Borrower, the "Loan Parties").

 

WHEREAS, Parent, Borrower, the other Loan Parties, Agent, and Lenders are parties to that certain Credit Agreement dated as of October 23, 2009 (as amended, modified or supplemented from time to time, the "Credit Agreement");

 

WHEREAS, Borrower, Agent and the Lenders have agreed to amend and modify the Credit Agreement as provided herein, in each case subject to the terms and provisions hereof.

 

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

 

1.           Defined Terms.  Unless otherwise defined herein, capitalized terms used herein shall have the meanings ascribed to such terms in the Credit Agreement.

 

2.           Amendments to Credit Agreement.  Subject to the satisfaction of the conditions set forth in Section 4 below and in reliance upon the representations and warranties of the Loan Parties set forth in Section 5 below, the Credit Agreement is amended as follows:

 

(a)          Section 2.1(d) of the Credit Agreement is hereby amended and restated in its entirety as follows:

 

(d)          Notwithstanding anything contained in the Loan Documents to the contrary, in the event the Maximum Revolver Amount has been increased pursuant to Section 2.2, Revolver Usage shall at no time exceed either (a) the maximum amount of Indebtedness permitted to be outstanding under Section 3.8(a)(2) of the Senior Unsecured Trust Indenture (or, after the consummation of any Permitted Senior Unsecured Debt Refinancing, the corresponding section of the Permitted Refinancing Senior Unsecured Trust Indenture) or (b) the maximum amount of Indebtedness permitted to be secured under clauses (10) and (22) of the definition of "Permitted Liens" set forth in the Senior Unsecured Trust Indenture (or,
after the consummation of any Permitted Senior Unsecured Debt Refinancing, the corresponding clauses of the definition of "Permitted Liens" set forth in the Permitted Refinancing Senior Unsecured Trust Indenture), in each case as such provisions of the Senior Unsecured Trust Indenture or the Permitted Refinancing Senior Unsecured Trust Indenture may be amended, modified, waived or supplemented from time to time in accordance with the terms thereof.

 

  

  

  

 

(b)          Clause (c) of Section 3.2 of the Credit Agreement is hereby amended and restated in its entirety as follows:

 

(c)           if any request in a calendar month for such extension of credit would cause Revolver Usage to exceed $75,000,000, Borrower shall have delivered to Agent during such month and prior to such requested extension of credit the Certificate re Consolidated EBITDA and Consolidated Leverage Ratio Calculation for the most recently ended four fiscal quarter period for which financial statements are available to Parent, certifying as to the maximum amount of Revolver Usage that may be outstanding during such month that will not cause the Obligations to breach Sections 3.8 or 3.14 of the Senior Unsecured Trust Indenture (or, after the consummation of any Permitted Senior Unsecured Debt Refinancing, the corresponding sections of the Permitted Refinancing Senior
Unsecured Trust Indenture).

 

(c)           Section 5.11 of the Credit Agreement is hereby amended by deleting each reference to "20 days" contained therein and inserting, in each case, "30 days" in lieu thereof.

 

(d)           Clause (i) of Section 5.17 of the Credit Agreement is hereby amended and restated in its entirety as follows:

 

(i)            In the event at any time after the Closing Date, Schedule 4.28 does not accurately reflect the locations of all tangible assets of the Loan Parties, Borrower shall, within 30 days of the date such schedule becomes inaccurate, deliver an updated Schedule 4.28 to Agent containing such information as is necessary to make such schedule accurate as of the date such schedule is delivered;

 

(e)           Section 6.5 of the Credit Agreement is hereby amended by adding the parenthetical "(or such shorter period as Agent may agree to in its sole discretion)" at the end of such Section.

 

(f)            Clause (a) of Section 6.7 of the Credit Agreement is hereby amended and restated in its entirety as follows:

 

(a)           Except in connection with Earn-outs, Permitted Senior Unsecured Debt Refinancings and Refinancing Indebtedness permitted by Section 6.1,

 

(g)           Section 6.9 of the Credit Agreement is hereby amended and restated in its entirety as follows:

 

  

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6.9.           Restricted Junior Payments.

 

Make any Restricted Junior Payment; provided, that (a) any Subsidiary of Parent may declare and pay dividends to a Loan Party (other than Parent), (b) any Subsidiary of Parent may pay dividends to Parent (i) in amounts necessary to pay customary expenses of the Parent in the ordinary course of its business as a public holding company (including salaries and related reasonable and customary expenses incurred by employees of the Parent) and (ii) in amounts necessary to pay taxes when due and owing by Parent, (c) any Subsidiary of Parent or the applicable parent company of such Subsidiary may make Restricted Junior Payments to such Subsidiary's shareholders and employees and management personnel of such Subsidiary's shareholders pursuant to the terms
of the shareholder agreements or similar agreements between such Subsidiary or the applicable parent company of such Subsidiary and such shareholders, including without limitation payments in respect of and pursuant to the Put Obligations, (d) Parent and any Subsidiary of Parent may repurchase from its employees Stock of Parent or such Subsidiary up to an aggregate amount, for all such repurchases by Parent and all Subsidiaries of Parent permitted pursuant to this clause (d), not to exceed $4,000,000 in any fiscal year; provided, however, that if the amount of repurchases permitted by this clause (d) to be made in any fiscal year is greater than the amount of the repurchases actually made in such fiscal year (the amount by which such permitted repurchases for such fiscal year exceeds the actual amount of repurchases made for such fiscal year, the "Repurchase Carry-Over Amount"), then the Repurchase Carry-Over Amount may be carried forward to the next succeeding fiscal year (the "Repurchase Succeeding Fiscal Year"); provided further that the Repurchase Carry-Over Amount applicable to a particular Repurchase Succeeding Fiscal Year may not be carried forward to another fiscal year, (e) any Loan Party may make payments in respect of Earn-outs, and (f) so long as (i) no Default or Event of Default exists or would otherwise arise as a result thereof and (ii) Excess Availability, after giving effect thereto, exceeds the Applicable Excess Availability Amount (such conditions, collectively, the "Restricted Junior Payment Basket
Conditions"), Parent and its Subsidiaries may make Restricted Junior Payments in any fiscal year ending on or after December 31, 2011, not otherwise permitted pursuant to clauses (a) through (e) above, up to an amount not to exceed 75% of Excess Cash Flow for the immediately prior fiscal year; provided, however, that, if the amount of Restricted Junior Payments permitted by this clause (f) to be made in any fiscal year ending on or after December 31, 2011 is greater than the amount of the Restricted Junior Payments actually made in such fiscal year (the amount by which such permitted Restricted Junior Payments for such fiscal year exceeds the actual amount of Restricted Junior Payments made for such fiscal year, the "Restricted Junior Payments Carry-Over Amount"), then the Restricted
Junior Payments Carry-Over Amount may be carried forward to the next succeeding fiscal year (the "Restricted Junior Payments Succeeding Fiscal Year"); provided further that the Restricted Junior Payments Carry-Over Amount applicable to a particular Restricted Junior Payments Succeeding Fiscal Year (1) may not be carried forward to another fiscal year and (2) may not in any event be used unless the Restricted Junior Payment Basket Conditions are satisfied.

 

(h)           Subsection (e) of Section 7 of the Credit Agreement is hereby amended and restated in its entirety as follows:

 

(e)           Total Leverage Ratio.  Have a Total Leverage Ratio, measured on a quarter-end basis, of not greater than the applicable ratio set forth in the following table for the applicable date set forth opposite thereto:

 

  

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Applicable Ratio

	 	
Applicable Date

	
3.50:1.0

	 	
For the 12 month period ending

December 31, 2010

	 	 	 
	
4.00:1.0

	 	
For the 12 month period ending

March 31, 2011

	 	 	 
	
3.75:1.0

	 	
For the 12 month period ending

June 30, 2011 and for the 12 month period

ending on the last day of each calendar quarter thereafter

(i)           Subsection (f) of Section 7 of the Credit Agreement is hereby amended and restated in its entirety as follows:

 

(f)           Minimum Accounts.  At all times, the aggregate amount of Loan Parties' Accounts shall be an amount equal to or in excess of 110% of the Maximum Revolver Amount.

 

(j)           The definition of "Acquisition" set forth in Schedule 1.1 of the Credit Agreement is hereby amended and restated in its entirety as follows:

 

"Acquisition" means (a) the purchase or other acquisition by a Person or its Subsidiaries of assets of (or any division or business line of) any other Person, or (b) the purchase or other acquisition (whether by means of merger, amalgamation, consolidation, investment in the form of an initial capital contribution, or otherwise) by a Person or its Subsidiaries of Stock of any other Person.

 

(k)           The definition of "Capital Expenditures Trigger Date" set forth in Schedule 1.1 of the Credit Agreement is hereby amended and restated in its entirety as follows:

 

"Capital Expenditure Trigger Date" means the date set forth in a written notice by Agent to Borrower and identified as the "Capital Expenditure Trigger Date", which date shall be on or after the last day of any consecutive 30 day period during which the daily average Excess Availability is less than the Applicable Excess Availability Amount.

 

(l)           Clause (b) of the definition of "Permitted Acquisition" set forth in Schedule 1.1 of the Credit Agreement is hereby amended and restated in its entirety as follows:

 

(b)           no Indebtedness (other than Indebtedness evidenced by the Agreement and the other Loan Documents) will be incurred, assumed, or would exist with respect to Parent or any Subsidiary of Parent as a result of such Acquisition (other than (i) Earn-outs pursuant to the terms of the definitive documentation for such Acquisition, (ii) Acquired Indebtedness and (iii) unsecured Indebtedness of Parent that is incurred pursuant to clause (g) of the definition of Permitted Indebtedness), and no Liens will be incurred, assumed, or would exist with respect to the assets of Parent or any Subsidiary of Parent as a result of such Acquisition other than Permitted Liens,

 

  

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(m)          Clause (c) of the definition of "Permitted Acquisition" set forth in Schedule 1.1 of the Credit Agreement is hereby amended by deleting the reference to "30 days" contained therein and inserting "20 days" in lieu thereof.

 

(n)           Clause (e) of the definition of "Permitted Acquisition" set forth in Schedule 1.1 of the Credit Agreement is hereby amended and restated in its entirety as follows:

 

(e)           Borrower shall have Availability plus Qualified Cash in an amount equal to or greater than the Applicable Excess Availability Amount immediately after giving effect to the consummation of the proposed Acquisition,

 

(o)           Clause (g) of the definition of "Permitted Acquisition" set forth in Schedule 1.1 of the Credit Agreement is hereby amended by deleting the reference to "30 days" contained therein and inserting "20 days" in lieu thereof.

 

(p)           Clause (v) of the definition of "Permitted Indebtedness" set forth in Schedule 1.1 of the Credit Agreement is hereby amended and restated in its entirety as follows:

 

(v)           (i) additional Indebtedness and (ii) any Refinancing Indebtedness in respect of any Indebtedness specified in subclause (i) above; provided that the aggregate amount of Indebtedness incurred and remaining outstanding pursuant to this clause (v) shall not at any time exceed $10,000,000.

 

(q)           Clause (q) of the definition of "Permitted Investments" set forth in Schedule 1.1 of the Credit Agreement is hereby amended and restated in its entirety as follows:

 

(q)           Investments in Pegasus Partners III, L.P. and its Affiliates after the Closing Date in an aggregate amount not exceeding $350,000 and any investments in Pegasus Partners III, L.P. existing on the Closing Date,

 

(r)            Clause (s) of the definition of "Permitted Investments" set forth in Schedule 1.1 of the Credit Agreement is hereby amended by deleting the reference to "$5,000,000" contained therein and inserting "$10,000,000" in lieu thereof.

 

(s)           The definition of "Senior Unsecured Debt" set forth in Schedule 1.1 of the Credit Agreement is hereby amended and restated in its entirety as follows:

 

"Senior Unsecured Debt" means the Indebtedness in an aggregate principal amount not to exceed $225,000,000 (provided that, the principal amount of such Indebtedness may be increased so long as (i) after giving effect to such increase the aggregate principal amount of such Indebtedness outstanding does not exceed $425,000,000 at any time and (ii) TTM EBITDA for the most recently ended fiscal month for which Agent has received a monthly report pursuant to Schedule 5.1  prior to such increase is equal to or greater than $75,000,000) owing by Parent to the "Holders" (as defined in the Senior Unsecured Trust Indenture or, after the consummation of any Permitted Senior Unsecured Debt Refinancing, the Permitted Refinancing Senior
Unsecured Trust Indenture) pursuant to the Senior Unsecured Debt Documents.

 

  

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(t)           The definition of "Senior Unsecured Debt Documents" set forth in Schedule 1.1 of the Credit Agreement is hereby amended and restated in its entirety as follows:

 

"Senior Unsecured Debt Documents" means, collectively, (a) the Senior Unsecured Trust Indenture, the "Notes" (as defined in the Senior Unsecured Trust Indenture) and the "Registration Rights Agreement" (as defined in the Senior Unsecured Trust Indenture), (b) after the consummation of any Permitted Senior Unsecured Debt Refinancing, the Permitted Refinancing Senior Unsecured Trust Indenture, the "Notes" (as defined in the Permitted Refinancing Senior Unsecured Trust Indenture) and the "Registration Rights Agreement" (as defined in the Permitted Refinancing Senior Unsecured Trust Indenture), and (c) all other agreements, instruments and documents evidencing the Senior Unsecured Debt, as the same may be amended, modified or supplemented
from time to time in accordance with the terms thereof.

 

(u)           Schedule 1.1 of the Credit Agreement is hereby amended by adding the following new definitions in their appropriate alphabetical order:

 

"Applicable Excess Availability Amount" means $25,000,000; provided, that, if the Maximum Revolver Amount has been increased to an amount in excess of $125,000,000 in accordance with Section 2.2 of the Agreement, Applicable Excess Availability Amount means, as of any date of determination, an amount equal to $25,000,000 plus 20% of the difference between (i) the Maximum Revolver Amount as of such date (after giving effect to all such increases) and (ii) $125,000,000; provided further that,
notwithstanding the foregoing, at all times during the period commencing on the Fourth Amendment Effective Date and ending on the date 45 days after the Fourth Amendment Effective Date, Applicable Excess Availability Amount means $15,000,000.

 

"Fourth Amendment Effective Date" means March 7, 2011."

 

"Permitted Refinancing Senior Unsecured Trust Indenture" means any indenture, in form and substance reasonably satisfactory to Agent, which replaces the Senior Unsecured Trust Indenture (or any Permitted Refinancing Senior Unsecured Trust Indenture) and pursuant to which the Senior Unsecured Debt under the Senior Unsecured Trust Indenture (or any Permitted Refinancing Senior Unsecured Trust Indenture) is refinanced or replaced; provided, that no such indenture shall (a) increase the maximum principal amount of the Senior Unsecured Debt; provided that, the maximum principal amount of the Senior Unsecured Debt may be
increased so long as (x) after giving effect to such increase the aggregate principal amount of the Senior Unsecured Debt outstanding does not exceed $425,000,000 at any time and (y) TTM EBITDA for the most recently ended fiscal month for which Agent has received a monthly report pursuant to Schedule 5.1  prior to such increase is equal to or greater than $75,000,000, (b) increase the rate of interest on any of the Senior Unsecured Debt, (c) change the dates upon which payments of principal or interest on the Senior Unsecured Debt are due, (d) change or add any event of default or any covenant with respect to the Senior Unsecured Debt, (e) change any redemption or prepayment provisions of the Senior Unsecured Debt, (f) alter the subordination provisions with respect to the Senior Unsecured Debt, including, without limitation, subordinating the Senior Unsecured Debt to any other indebtedness, (g) take any liens or security interests in
any assets of any Loan Party, or (h) change or amend any other term of the Senior Unsecured Debt Documents if such change or amendment would result in an Event of Default, increase the obligations of any Loan Party or confer additional material rights on any holder of the Senior Unsecured Debt in a manner adverse to any Loan Party, Agent or any Lenders.

 

  

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"Permitted Senior Unsecured Debt Refinancing" means any refinancing or replacement of the Senior Unsecured Debt under the Senior Unsecured Trust Indenture (or any Permitted Refinancing Senior Unsecured Trust Indenture); provided that (a) the financing documentation entered into by Parent and the "Note Guarantors" party thereto in connection with such Permitted Senior Unsecured Debt Refinancing constitutes a Permitted Refinancing Senior Unsecured Trust Indenture and (b) Agent shall have received not less than 30 days prior written notice of such Permitted Senior Unsecured Debt Refinancing.

 

(v)         Exhibit C-2 of the Credit Agreement is hereby replaced with Exhibit C-2 attached hereto.

 

(w)         Schedule C-1 of the Credit Agreement is hereby replaced with Schedule C-1 attached hereto.

 

3.           Ratification; Other Acknowledgments.  This Amendment, subject to satisfaction of the conditions provided below, shall constitute an amendment to the Credit Agreement and all of the Loan Documents as appropriate to express the agreements contained herein.  Without limiting the foregoing, the parties hereto acknowledge and agree that, on November 22, 2010, a Revolver Increase in the amount of $25,000,000 was made in accordance with Section 2.2 of the Credit Agreement.  In all other respects, the Credit Agreement and the Loan Documents shall remain unchanged and in full force and effect in accordance with their original terms.

 

4.           Conditions to Effectiveness.  This Amendment shall become effective as of the date hereof and upon the satisfaction of the following conditions precedent:

 

(a)         Agent shall have received a fully executed copy of this Amendment;

 

(b)         Agent shall have received the Fourth Amendment Fee referred to below; and

 

(c)         No Default or Event of Default shall have occurred and be continuing on the date hereof or as of the date of the effectiveness of this Amendment.

 

  

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5.           Representations and Warranties.  In order to induce Agent and Lenders to enter into this Amendment, each Loan Party hereby represents and warrants to Agent and Lenders, after giving effect to this Amendment:

 

(a)         All representations and warranties contained in the Credit Agreement and the other Loan Documents are true and correct on and as of the date of this Amendment, in each case as if then made, other than representations and warranties that expressly relate solely to an earlier date (in which case such representations and warranties were true and correct on and as of such earlier date);

 

(b)         No Default or Event of Default has occurred and is continuing; and

 

(c)         the execution, delivery and performance of this Amendment has been duly authorized by all requisite corporate action on the part of such Loan Party.

 

6.           Fourth Amendment Fee.  Borrower shall pay to Agent, for the ratable benefit of the Lenders based on their respective Pro Rata Shares, a fee equal to $125,000 (the "Fourth Amendment Fee") which shall be fully earned and due and payable on the date hereof.

 

7.           Miscellaneous.

 

(a)         Expenses.  Borrower agrees to pay on demand all costs and expenses of Agent (including the reasonable fees and expenses of outside counsel for Agent) in connection with the preparation, negotiation, execution, delivery and administration of this Amendment and all other instruments or documents provided for herein or delivered or to be delivered hereunder or in connection herewith.  All obligations provided herein shall survive any termination of this Amendment and the Credit Agreement as amended hereby.

 

(b)         Governing Law.  This Amendment shall be a contract made under and governed by the internal laws of the State of New York.

 

(c)         Counterparts.  This Amendment may be executed in any number of counterparts, and by the parties hereto on the same or separate counterparts, and each such counterpart, when executed and delivered, shall be deemed to be an original, but all such counterparts shall together constitute but one and the same Amendment.

 

  

-8-

  

8.           Release.

 

(a)         In consideration of the agreements of Agent and Lenders contained herein and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, each Loan Party, on behalf of itself and its successors, assigns, and other legal representatives, hereby absolutely, unconditionally and irrevocably releases, remises and forever discharges Agent and Lenders, and their successors and assigns, and their present and former shareholders, affiliates, subsidiaries, divisions, predecessors, directors, officers, attorneys, employees, agents and other representatives (Agent, each Lender and all such other Persons being hereinafter referred to collectively as the "Releasees
 " and individually as a "Releasee"), of and from all demands, actions, causes of action, suits, covenants, contracts, controversies, agreements, promises, sums of money, accounts, bills, reckonings, damages and any and all other claims, counterclaims, defenses, rights of set-off, demands and liabilities whatsoever (individually, a "Claim" and collectively, "Claims") of every name and nature, known or unknown, suspected or unsuspected, both at law and in equity, which such Loan Party or any of its respective successors, assigns, or other legal representatives may now or hereafter own, hold, have or claim to have against the Releasees or any of them for, upon, or by reason of any circumstance, action, cause or thing whatsoever which arises at any time on or prior to the day and date of this
Amendment, including, without limitation, for or on account of, or in relation to, or in any way in connection with any of the Credit Agreement, or any of the other Loan Documents or transactions thereunder or related thereto.

 

(b)         Each Loan Party understands, acknowledges and agrees that the release set forth above may be pleaded as a full and complete defense and may be used as a basis for an injunction against any action, suit or other proceeding which may be instituted, prosecuted or attempted in breach of the provisions of such release.

 

(c)         Each Loan Party agrees that no fact, event, circumstance, evidence or transaction which could now be asserted or which may hereafter be discovered shall affect in any manner the final, absolute and unconditional nature of the release set forth above.

 

[Signature Page Follows]

 

  

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

 

	
MDC PARTNERS INC., a federal company

	
organized under the laws of Canada

	  	  
	
By:

	
/s/ Mitchell Gendel

	
Name:

	
Mitchell Gendel

	
Title:

	
Authorized Signatory

	  	  
	
By:

	
/s/ Michael Sabatino

	
Name:

	
Michael Sabatino

	
Title:

	
Authorized Signatory

	  	  
	
MAXXCOM INC.,

	
a Delaware corporation

	  	  
	
By:

	
/s/ Mitchell Gendel

	
Name:

	
Mitchell Gendel

	
Title:

	
Authorized Signatory

	 	 
	
By:

	
/s/ Michael Sabatino

	
Name:

	
Michael Sabatino

	
Title:

	
Authorized Signatory

Signature Pages to Fourth Amendment to Credit Agreement

  

  

  

 

	
72ANDSUNNY PARTNERS, LLC,

	
a Delaware limited liability company

	  
	
ACCENT MARKETING SERVICES, L.L.C.,

	
a Delaware limited liability company

	  
	
ADRENALINA LLC,

	
a Delaware limited liability company

	  
	
ALLISON & PARTNERS LLC,

	
a Delaware limited liability company

	  
	
ATTENTION PARTNERS LLC,

	
a Delaware limited liability company

	  
	
ANOMALY PARTNERS LLC,

	
a Delaware limited liability company

	  
	
BRUCE MAU DESIGN (USA) LLC,

	
a Delaware limited liability company

	  
	
COLLE & MCVOY LLC,

	
a Delaware limited liability company

	  
	
COLLE & MCVOY, INC.,

	
a Minnesota corporation

	  
	
COMMUNIFX PARTNERS LLC,

	
a Delaware limited liability company

	  
	
COMPANY C COMMUNICATIONS, INC.,

	
a Delaware corporation

	  
	
COMPANY C COMMUNICATIONS LLC,

	
a Delaware limited liability company

	  
	
CRISPIN PORTER & BOGUSKY LLC,

	
a Delaware limited liability company

	  
	
DOTGLU LLC,

	
a Delaware limited liability company

Signature Pages to Fourth Amendment to Credit Agreement

  

  

  

 

	
EXPECTING PRODUCTIONS, LLC,

	
a California limited liability company

	
By: Hudson and Sunset Media, LLC, its sole member

	  
	
GUARDIANT WARRANTY, LLC,

	
a Delaware limited liability company

	  
	
HELLO ACQUISITION INC.,

	
a Delaware corporation

	  
	
HELLO DESIGN, LLC,

	
a California limited liability company

	  
	
HL GROUP PARTNERS LLC,

	
a Delaware limited liability company

	  
	
HUDSON AND SUNSET MEDIA, LLC (formerly 

	known as Shout Media LLC),
	
a California limited liability company

	  
	
HW ACQUISITION LLC,

	
a Delaware limited liability company

	  
	
INTEGRATED MEDIA SOLUTIONS PARTNERS 

LLC, a Delaware limited liability company

	 
	
KBP HOLDINGS LLC,

	
a Delaware limited liability company

	  
	
KBS+P ATLANTA LLC (formerly known as

	
FLETCHER MARTIN LLC),

	
a Delaware limited liability company

	  
	
KIRSHENBAUM BOND SENECAL & PARTNERS

	
LLC (formerly known as Kirshenbaum Bond & Partners 

	
LLC), a Delaware limited liability company

	  
	
KIRSHENBAUM BOND & PARTNERS WEST LLC, a 

Delaware limited liability company

	  
	
KWITTKEN PR LLC,

	
a Delaware limited liability company

	  
	
MARGEOTES FERTITTA POWELL LLC,

	
a Delaware limited liability company

Signature Pages to Fourth Amendment to Credit Agreement

  

  

  

 

	
MAXXCOM (USA) FINANCE COMPANY,

	
a Delaware corporation

	  
	
MAXXCOM (USA) HOLDINGS INC.,

	
a Delaware corporation

	  
	
MDC ACQUISITION INC.,

	
a Delaware Corporation

	  
	
MDC CORPORATE (US) INC.,

	
a Delaware corporation

	  
	
MDC INNOVATION PARTNERS LLC

	
(d/b/a Spies & Assassins),

	
a Delaware limited liability company

	  
	
MDC TRAVEL, INC.,

	
a Delaware corporation

	  
	
MDC/CPB HOLDINGS INC.

	
(formerly known as CPB Acquisition Inc.),

	
a Delaware corporation

	  
	
MDC/KBP ACQUISITION INC.,

	
a Delaware corporation

	  
	
MF+P ACQUISITION CO.,

	
a Delaware corporation

	  
	
MONO ADVERTISING, LLC,

	
a Delaware limited liability company

	  
	
NEW TEAM LLC,

	
a Delaware limited liability company

	  
	
NORTHSTAR RESEARCH GP LLC,

	
a Delaware limited liability company

	  
	
NORTHSTAR RESEARCH HOLDINGS USA LP,

	
a Delaware limited partnership

	  
	
NORTHSTAR RESEARCH PARTNERS (USA) LLC, a

	
Delaware limited liability company

	  
	
OUTERACTIVE, LLC,

	
a Delaware limited liability company

Signature Pages to Fourth Amendment to Credit Agreement

  

  

  

 

	
PULSE MARKETING, LLC,

	
a Delaware limited liability company

	  
	
REDSCOUT LLC,

	
a Delaware limited liability company

	  
	
RELEVENT PARTNERS LLC,

	
a Delaware limited liability company

	  
	
SKINNY NYC LLC,

	
a Delaware limited liability company

	  
	
SLOANE & COMPANY LLC,

	
a Delaware limited liability company

	  
	
SOURCE MARKETING LLC,

	
a New York limited liability company

	  
	
TARGETCOM LLC,

	
a Delaware limited liability company

	  
	
TC ACQUISITION INC.,

	
a Delaware corporation

	  
	
THE ARSENAL LLC

	
(formerly known as Team Holdings LLC),

	
a Delaware limited liability company

	  
	
TRACK 21 LLC,

	
a Delaware limited liability company

	  
	
TRAFFIC GENERATORS, LLC,

	
a Georgia limited liability company

	  
	
VARICK MEDIA MANAGEMENT LLC,

	
a Delaware limited liability company

	  
	
VITROROBERTSON LLC,

	
a Delaware limited liability company

	  
	
YAMAMOTO MOSS MACKENZIE, INC.,

	
a Delaware corporation

	  
	
ZG ACQUISITION INC.,

	
a Delaware corporation

Signature Pages to Fourth Amendment to Credit Agreement

  

  

  

 

	
ZIG (USA) LLC,

	
a Delaware limited liability company

	  
	
ZYMAN GROUP, LLC,

	
a Delaware limited liability company

	  
	
By:

	
/s/ Mitchell Gendel

	
Name:

	
Mitchell Gendel

	
Title:

	
Authorized Signatory

	  	  
	
By:

	
/s/ Michael Sabatino

	
Name:

	
Michael Sabatino

	
Title:

	
Authorized Signatory

 

Signature Pages to Fourth Amendment to Credit Agreement

  

  

  

 

	
ASHTON POTTER CANADA INC.,

	
an Ontario corporation

	  
	
HENDERSON BAS, an Ontario general partnership,

	
by the members of its management committee

	  
	
COMPUTER COMPOSITION OF CANADA INC.,

	
an Ontario corporation

	  
	
BRUCE MAU DESIGN INC.,

	
an Ontario corporation

	  
	
BRUCE MAU HOLDINGS LTD.,

	
an Ontario corporation

	  
	
KBS+P CANADA INC. (formerly known as Allard

	
Johnson Communications Inc.),

	
an Ontario corporation

	  
	
TREE CITY INC.,

	
an Ontario corporation

	  
	
VERITAS COMMUNICATIONS INC.,

	
an Ontario corporation

	  
	
656712 ONTARIO LIMITED,

	
an Ontario corporation

	  
	
NORTHSTAR RESEARCH HOLDINGS CANADA

	
INC., an Ontario corporation

	  
	
NORTHSTAR RESEARCH PARTNERS INC.,

	
an Ontario corporation

	  
	
X CONNECTIONS INC., an Ontario corporation

	  
	
STUDIO PICA INC., a federal company organized

	
under the laws of Canada

	  
	
CRISPIN PORTER + BOGUSKY CANADA INC.

	
(formerly known as Zig Inc.), an Ontario corporation

	  
	
6 DEGREES INTEGRATED COMMUNICATIONS

	
INC. (formerly known as Accumark Communications

	
Inc.), an Ontario corporation

Signature Pages to Fourth Amendment to Credit Agreement

  

  

  

 

	
MAXXCOM (NOVA SCOTIA) CORP.,

	
a Nova Scotia corporation

	  
	
BRYAN MILLS IRADESSO CORP.,

	
an Ontario corporation

	  
	
KENNA COMMUNICATIONS LP,

	
an Ontario limited partnership

	
By: Kenna Communications GP Inc.

	
Its general partner

	  
	
CAPITAL C PARTNERS LP,

	
an Ontario limited partnership

	
By: Capital C Partners GP Inc.

	
Its general partner

	  
	
KENNA COMMUNICATIONS GP INC.,

	
an Ontario corporation

	  
	
CAPITAL C PARTNERS GP INC.,

	
an Ontario corporation

	  	  
	
By:

	
/s/ Mitchell Gendel

	
Name:

	
Mitchell Gendel

	
Title:

	
Authorized Signatory

	  	  
	
By:

	
/s/ Michael Sabatino

	
Name:

	
Michael Sabatino

	
Title:

	
Authorized Signatory

 

Signature Pages to Fourth Amendment to Credit Agreement

  

  

  

 

	
CRISPIN PORTER & BOGUSKY EUROPE AB

	  	  
	
By:

	
/s/ Mitchell Gendel

	
Name:

	
Mitchell Gendel

	
Title:

	
Authorized Signatory

	  	  
	
By:

	
/s/ Michael Sabatino

	
Name:

	
Michael Sabatino

	
Title:

	
Authorized Signatory

 

Signature Pages to Fourth Amendment to Credit Agreement

  

  

  

 

	
WELLS FARGO CAPITAL FINANCE, LLC, formerly known as Wells Fargo Foothill, LLC, as Agent and as a Lender

	  	  
	
By: 

	 /s/ Paul G. Chao 
	
Name:

	  Paul G. Chao
	
Title:

	  Senior Vice President

	
JPMORGAN CHASE BANK, N.A., as a Lender

	  	  
	
By: 

	  /s/ Michelle Cipriani
	
Name:

	  Michelle Cipriani
	
Title:

	  Vice President

	
BANK OF MONTREAL, as a Lender

	  	  
	
By: 

	  /s/ Naghmeh Hashemifard
	
Name:

	  Naghmeh Hashemifard
	
Title:

	  Director

Signature Pages to Fourth Amendment to Credit Agreement

  

  

  

Schedule C-1

 

Commitments

 

	
Lender

	 	
Revolver

Commitment

	 	 	
Total Commitment

	 
	
Wells Fargo Capital Finance, LLC, formerly known as Wells Fargo Foothill, LLC

	 	$	65,000,000	 	 	$	65,000,000	 
	
JPMorgan Chase Bank, N.A.

	 	$	25,000,000	 	 	$	25,000,000	 
	
Bank of Montreal

	 	$	10,000,000	 	 	$	10,000,000	 
	  	 	 	 	 	 	 	 	 
	
All Lenders

	 	$	100,000,000	 	 	$	100,000,000Exhibit 10.12.9

 

FORM OF RESTRICTED STOCK GRANT AGREEMENT (2011)

THIS AGREEMENT, made as of March 7, 2011 (the “Grant Date”), between MDC Partners Inc., a Canadian corporation (the “Corporation”), and _______________ (the “Grantee”).

WHEREAS, the Corporation has adopted the 2005 Stock Incentive Plan (the “Plan”) for the purpose of providing employees and consultants of the Corporation and eligible non-employee directors of the Corporation’s Board of Directors a proprietary interest in pursuing the long-term growth, profitability and financial success of the Corporation (except as otherwise expressly set forth herein, capitalized terms used in this Agreement shall have the definitions set forth in the Plan).

WHEREAS, the Human Resources & Compensation Committee (the “Committee”) of the Board of Directors has determined that it is in the best interests of the Corporation to make the award set forth herein, which award will vest on the third anniversary of the date hereof, subject to accelerated vesting upon achievement by the Corporation of specified financial growth targets during the calendar years 2011 – 2012.

WHEREAS, pursuant to the Plan, the Committee has determined to grant an Other Stock-Based Award to the Grantee in the form of shares of Class A subordinate voting shares, subject to the terms, conditions and limitations provided herein, including achievement of financial performance targets, and in the Plan (the “Restricted Stock”);

NOW, THEREFORE, the parties hereto agree as follows:

1.     Grant of Restricted Stock.

1.1        The Corporation hereby grants to the Grantee, on the terms and conditions set forth in this Agreement, the number of shares of Restricted Stock set forth under the Grantee's name on the signature page hereto (the “2011 Restricted Stock Award”).

1.2        The Grantee's rights with respect to all the shares of Restricted Stock underlying the 2011 Restricted Stock Award shall not vest and will remain forfeitable at all times prior to the Vesting Date (as defined below).  At any time, reference to the 2011 Restricted Stock Award shall be deemed to be a reference to the Restricted Shares granted under Section 1.1 that have neither vested nor been forfeited pursuant to the terms of this Agreement.

1.3        This Agreement shall be construed in accordance with, and subject to, the terms of the Plan (the provisions of which are incorporated herein by reference).

2.     Rights of Grantee.

Except as otherwise provided in this Agreement, the Grantee shall be entitled, at all times on and after the Grant Date, to exercise all rights of a shareholder with respect to the 2011 Restricted Stock Award, including the right to vote the shares of Restricted Stock.  Prior to the Vesting Date, the Grantee shall not be entitled to transfer, sell, pledge, hypothecate or assign any portion of the 2011 Restricted Stock Award (collectively, the “Transfer Restrictions”).

 

  

  

  

 

3.           Vesting; Lapse of Restrictions.

3.1        The Transfer Restrictions with respect to all the shares of Restricted Stock granted under this Agreement shall lapse on the third (3rd) anniversary of the Grant Date (the “Vesting Date”), provided the Grantee continues to be serving as an employee of the Corporation until such Vesting Date; provided, further, that the Transfer Restrictions with respect to all the shares of Restricted Stock shall lapse, if sooner, on the date of any one of the following “Permitted Acceleration Events”:  (i) the occurrence of a Change in Control (as defined in the Plan); (ii) the Grantee’s employment is terminated by the Corporation (other than for “cause”), or by the employee for “good reason” (as each such term may be defined in the Grantee’s underlying employment agreement); (iii) the Grantee’s death or disability; or (iv) achievement by the Corporation of the financial performance measure(s) set forth in Section 3.3 herein.   In no event shall the Grantee be vested or otherwise entitled to more than one hundred percent (100%) of the shares of Restricted Stock granted pursuant to section 1.1 above.

3.2    Notwithstanding anything in this Agreement to the contrary, upon the resignation or termination of Grantee as an executive of the Corporation for cause (other than due to a Permitted Acceleration Event), all shares of Restricted Stock in respect of which the Transfer Restrictions have not previously lapsed in accordance with Section 3.1 hereof shall be forfeited and automatically transferred to and reacquired by the Corporation at no cost to the Corporation, and neither the Grantee nor any heirs, executors, administrators or successors of such Grantee shall thereafter have any right or interest in such shares of Restricted Stock.

3.3     For purposes of the foregoing, the following terms shall have the following meanings:

(a)         “2011-2012 Performance Measures” means the achievement by the Corporation of EBITDA in the following amounts during the specified Performance Period (as defined in the Plan):

 

(i)           2011 Target.  In the event that the Corporation achieves EBITDA for the twelve-months ended December 31, 2011, in an amount equal to not less than the product of 2010 EBITDA (as defined below) multiplied by 1.05 (the “2011 Target”), then 50% of the 2011 Restricted Stock Award will vest on March 15, 2012.

(ii)          2011/2012 Cumulative Target.    In the event that the Corporation achieves EBITDA for the two (2) years ended December 31, 2012, in an amount equal to not less than the sum of (i) the 2011 Target, plus (ii) the product of the 2011 Target multiplied by 1.10 (such sum, the “2011/2012 Cumulative Target”), then 100% of the 2011 Restricted Stock Award will vest on March 15, 2013 (but only to the extent not previously vested).  The 2011/2012 Cumulative Target represents annual growth of 10% in EBITDA in 2011 and 2012, as compared to the 2011 Target.

(iii)         2011 Restricted Stock Award Limit.  In no event shall the Grantee be vested or otherwise entitled to more than one hundred percent (100%) of the shares of Restricted Stock granted as part of the 2011 Restricted Stock Award pursuant to section 1.1 above.

 

  

2

  

 

(b)           “Cause” means the Grantee’s termination by reason of (i) his/her continued or willful failure substantially to perform his/her duties for the Corporation, (ii) his/her willful and serious misconduct in connection with the performance of his/her duties for the Corporation, (iii) the Grantee’s conviction of, or entering a plea of guilty or nolo contendere to, a crime that constitutes a felony or a crime involving moral turpitude, (iv) his/her fraudulent or dishonest conduct or (v) his/her material breach of any of his/her obligations or covenants under any written policies of the Corporation or any written agreement between such Grantee and the Corporation.

(c)           “Change in Control” shall have the meaning set forth in Section 2(b) of the Plan, provided that the reference to “twenty-five percent (25%) or more of the combined voting power of MDC's then outstanding voting securities” in Section 2(b)(i) of the Plan shall, for purposes of this 2011 Restricted Stock Award, be amended to read “fifty percent (50%) or more of the combined voting power of MDC's then outstanding voting securities”; and, provided further, that the reference in Section 2(b)(iii)(A)(III)(3) to “twenty five percent (25%) or more of the combined voting power of the Surviving Corporation’s voting securities outstanding immediately following such transaction” shall, for purposes of this 2011 Restricted Stock Award, be amended to read “fifty percent (50%) or more of the combined voting power of the Surviving Corporation’s voting securities outstanding immediately following such transaction”.

(d)           “Disability” shall mean a mental or physical condition of the Grantee rendering him unable to perform his/her duties for the Corporation for a period of six (6) consecutive months or for 180 days within any consecutive 365-day period and which is reasonably expected to continue indefinitely; provided that if, as of the date of determination, the Grantee is a party to an effective employment agreement with a different definition of “Disability” or any derivation of such term, the definition of “Disability” (or its derivation) contained in such employment agreement shall be substituted for the definition set forth above for all purposes hereunder.

(e)           “EBITDA” shall mean the Corporation’s share of consolidated earnings before interest, taxes, depreciation and amortization, plus any non-cash charges for stock-based compensation which were deducted in the calculation of EBITDA.

(f)           “2010 EBITDA” shall mean the Corporation’s EBITDA for the year ended December 31, 2010, as determined by the Compensation Committee following completion of Corporation’s audited financial statements for the year ended December 31, 2010.

4.    Escrow and Delivery of Shares.

4.1        Certificates (or an electronic "book entry" on the books of the Corporation's stock transfer agent) representing the shares of Restricted Stock shall be issued and held by the Corporation (or its stock transfer agent) in escrow (together with any stock transfer powers which the Corporation may request of Grantee) and shall remain in the custody of the Corporation (or its stock transfer agent) until (i) their delivery to the Grantee as set forth in Section 4.2 hereof, or (ii) their forfeiture and transfer to the Corporation as set forth in Section 3.2 hereof. The appointment of an independent escrow agent shall not be required.

 

  

3

  

 

4.2           (a)           Certificates (or an electronic "book entry") representing those shares of Restricted Stock in respect of which the Transfer Restrictions have lapsed pursuant to Section 3.1 hereof shall be delivered to the Grantee as soon as practicable following the Vesting Date.

(b)           The Grantee, or the executors or administrators of the Grantee's estate, as the case may be, may receive, hold, sell or otherwise dispose of those shares of Restricted Stock delivered to him or her pursuant to this Section 4.2 free and clear of the Transfer Restrictions, but subject to compliance with all federal and state securities laws.

4.3           (a)           Each stock certificate issued pursuant to Section 4.1 shall bear a legend in substantially the following form:

THIS CERTIFICATE AND THE SHARES OF STOCK REPRESENTED HEREBY ARE SUBJECT TO THE TERMS AND CONDITIONS APPLICABLE TO RESTRICTED STOCK CONTAINED IN THE 2005 STOCK INCENTIVE PLAN (THE "PLAN") AND A RESTRICTED STOCK AGREEMENT (THE "AGREEMENT") BETWEEN THE CORPORATION AND THE REGISTERED OWNER OF THE SHARES REPRESENTED HEREBY. RELEASE FROM SUCH TERMS AND CONDITIONS SHALL BE MADE ONLY IN ACCORDANCE WITH THE PROVISIONS OF THE PLAN(S) AND THE AGREEMENT, COPIES OF WHICH ARE ON FILE IN THE OFFICE OF THE SECRETARY OF THE CORPORATION.

(b)           As soon as practicable following a Vesting Date, the Corporation shall issue a new certificate (or electronic "book entry") for shares of the Restricted Stock which have become non-forfeitable in relation to such Vesting Date, which new certificate (or electronic "book entry") shall not bear the legend set forth in paragraph (a) of this Section 4.3 and shall be delivered in accordance with Section 4.2 hereof.

5.     Dividends.  All dividends declared and paid by the Corporation on shares underlying the 2011 Restricted Stock Award shall be deferred until the lapsing of the Transfer Restrictions pursuant to Section 3.1 and shall be distributed only to the extent the underlying shares of Restricted Stock vest and are distributed in accordance with Section 3.  The deferred dividends shall be held by the Corporation for the account of the Grantee until the Vesting Date, at which time the dividends, with no interest thereon, shall be paid to the Grantee or her/his estate, as the case may be.  Upon the forfeiture of the shares of Restricted Stock pursuant to Section 3, any deferred dividends shall also be forfeited to the Corporation.

6.     No Right to Continued Retention.  Nothing in this Agreement or the Plan shall be interpreted or construed to confer upon the Grantee any right with respect to continuance as an employee, nor shall this Agreement or the Plan interfere in any way with the right of the Corporation to terminate the Grantee's service as an employee at any time.

7.     Adjustments Upon Change in Capitalization.  If, by operation of Section 10 of the Plan, the Grantee shall be entitled to new, additional or different shares of stock or securities of the Corporation or any successor corporation or entity or other property, such new, additional or different shares or other property shall thereupon be subject to all of the conditions and restrictions which were applicable to the shares of Restricted Stock immediately prior to the event and/or transaction that gave rise to the operation of Section 10 of the Plan.

 

  

4

  

 

8.     Modification of Agreement; Adjustment of Performance Measures by the Committee.  Except as set forth in the Plan and herein, this Agreement may be modified, amended, suspended or terminated, and any terms or conditions may be waived, but only by a written instrument executed by the parties hereto.   Notwithstanding the foregoing, the Committee shall adjust the 2011-2012 Performance Measures in the event that the Corporation acquires or disposes any material assets or business.

9.     Severability.  Should any provision of this Agreement be held by a court of competent jurisdiction to be unenforceable or invalid for any reason, the remaining provisions of this Agreement shall not be affected by such holding and shall continue in full force and effect in accordance with their terms.

10.   Governing Law.  The validity, interpretation, construction and performance of this Agreement shall be governed by the laws of the State of New York without regard to its conflict of laws principle, except to the extent that the application of New York law would result in a violation of the Canadian Business Corporation Act.

*                           *                         *

  

5

  

 

11.    Successors in Interest.  This Agreement shall inure to the benefit of and be binding upon any successor to the Corporation.  This Agreement shall inure to the benefit of the Grantee's heirs, executors, administrators and successors.  All obligations imposed upon the Grantee and all rights granted to the Corporation under this Agreement shall be binding upon the Grantee's heirs, executors, administrators and successors.

MDC PARTNERS INC.

	
By:

	  	  

Name:   Michael Sabatino

Title:     Chief Accounting Officer

MDC PARTNERS INC.

	
By:

	  	  

Name:  Mitchell Gendel

Title:    General Counsel

GRANTEE:

	
By:

	  	  

Name:

Number of Shares of Restricted

Stock Hereby Granted:

  

6

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