Document:

pkay_ex105.htm

EXHIBIT 10.5
 
September 30, 2016
 
Peekay Acquisition, LLC
901 W. Main Street, Suite
A Auburn, WA 98001
Attention: Lisa Berman
 
		Re:
	Waiver and Consent: Key Man Insurance; Term A Agent Fee

 
Ladies and Gentlemen:
 
We refer to the Financing Agreement, dated as of December 31, 2012 (as amended, supplemented or otherwise modified from time to time, the “Financing Agreement”), by and among Christals Acquisition, LLC, a Delaware limited liability company (the “Parent”), Peekay Acquisition, LLC, a Delaware limited liability company (“Peekay Acquisition”), the subsidiaries of Peekay Acquisition identified as Borrowers on the signature pages thereto (together with Peekay Acquisition, each a “Borrower” and, collectively, the “Borrowers”), each subsidiary of Parent identified as a guarantor on the signature pages thereto (together with the Parent and each other person that executes a joinder agreement and becomes a “Guarantor” thereunder or otherwise guaranties all or any part of the Obligations (as defined therein), each a “Guarantor” and, collectively, the “Guarantors”), the lenders from time to time party thereto (such lenders, together with their respective successors and assigns, each a “Lender” and, collectively, the “Lenders”), Cortland Capital Market Services LLC, as collateral agent for the Lenders, and as administrative agent for the Lenders, and CB Agency Services, LLC, as origination agent for the Lenders. Any capitalized term used herein but not defined herein shall have the meaning assigned to it in the Financing Agreement.
 
Subject to the terms and conditions set forth below, the Required Lenders and the Term A Agent, as applicable, are willing to waive compliance by the Loan Parties with the following provisions of the Financing Agreement, in each case for the specific instances and specific purposes set forth herein: (a) Section 7.01(r) of the Financing Agreement, which requires each Loan Party to use its best efforts to maintain with a responsible insurance company “key man” life insurance with respect to Lisa Berman (as successor officer to Barry Soosman) and (b) Section 2.06(c) of the Financing Agreement, which requires the Borrowers to pay to the Term A Agent for its own account, quarterly in arrears on the last day of each calendar quarter and on the date the Obligations are paid in full, an administrative fee in the amount of $15,000 (or a pro rata portion in the case of the final payment of such fee). Accordingly, the undersigned parties hereby agree as follows:
 
1. Pursuant to Section 12.02 of the Financing Agreement, the Required Lenders hereby consent to, and waive any Event of Default that would otherwise arise under Section 9.01(c) of the Financing Agreement by reason of, the failure of the Loan Parties to comply with Section 7.01(r) of the Financing Agreement (the “Key Man Insurance Waiver”) insofar as such non-compliance relates solely to the failure to maintain a “key man” life insurance policy with respect to Lisa Berman. The Key Man Insurance Waiver shall be effective until twenty (20) days after the Consenting Term A Lenders (as such term is defined in the Forbearance and Ninth Amendment Agreement, dated February 22, 2016, as amended from time to time, by and among Peekay Boutiques, Inc., the Borrowers, the Guarantors, the Terms A Lenders party thereto, the Term B Lenders party thereto, and the Agents) deliver notice to the Loan Parties of the termination thereof. During the period in which the Key Man Insurance Waiver is in effect, any non-compliance by the Loan Parties with Section 7.01(r) of the Financing Agreement resulting therefrom shall not be deemed to result in a breach of Section 7.01(i) of the Financing Agreement.
 
	 
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2. Pursuant to Section 12.02 of the Financing Agreement, the Required Lenders and the Term A Agent each hereby consent to, and waive any Event of Default that would otherwise arise under Section 9.01(a) of the Financing Agreement by reason of, the failure of the Loan Parties to pay to the Term A Agent on September 30, 2016 the fee required pursuant to Section 2.06(c) of the Financing Agreement (the “Term A Agent Fee Deferral”); provided that such fee shall become due and payable in cash in its entirety upon the earlier of (a) the date on which all Obligations are or become due and payable and (b) ten (10) Business Days after the Term A Agent delivers notice to the Loan Parties of the termination of the Term A Agent Fee Deferral. For the avoidance of doubt, the Term A Agent Fee Deferral shall not constitute a waiver or deferral of any other fee that is now owing or that may in the future be owing to the Term A Agent.
 
3. Except as otherwise expressly provided herein, each Loan Party hereby confirms and agrees that (a) each Loan Document to which it is a party is, and shall continue to be, in full force and effect and is hereby ratified and confirmed in all respects, and (b) this Waiver and Consent shall not operate as a waiver of any right, power or remedy of the Term A Agent or the Lenders under the Financing Agreement or any other Loan Document, nor constitute a waiver of any provision of the Financing Agreement or any other Loan Document.
 
4. This Waiver and Consent (a) shall become effective as of the date set forth above when signed by the Required Lenders and the Term A Agent, (b) shall be effective only in this specific instance and for the specific purposes set forth herein, and (c) does not allow for any other or further departure from the terms and conditions of the Financing Agreement or any other Loan Document, which terms and conditions shall continue in full force and effect.
 
5. This Waiver and Consent (a) shall be governed by, and construed in accordance with, the laws of the State of New York, (b) shall be binding upon the parties hereto and their respective successors and assigns, (c) may be signed in multiple counterparts, including by telecopy or electronic mail, each of which shall be deemed an original and all of which together shall constitute one and the same instrument, and (d) may be amended or otherwise modified only in a writing signed by the Required Lenders and the Term A Agent (except with respect to paragraph 1). If this Waiver and Consent becomes the subject of a dispute, each of the parties hereto hereby waives trial by jury.
 
	 
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If the foregoing accurately reflects your understanding, kindly so indicate this by signing below and returning a copy to the undersigned as soon as possible.
 
		REQUIRED LENDERS:

The K2 Principal Fund L.P.
	
				
		By:	/s/ Shawn Kimel
	
	
	Name:
	Shawn Kimel
	
		Title:	Managing Partner
	

 
[Signature Page to Financing Agreement Waiver - Key Man Insurance and Term A Agent Fee]
 
	 
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If the foregoing accurately reflects your understanding, kindly so indicate this by signing below and returning a copy to the undersigned as soon as possible.
 
		REQUIRED LENDERS:

Alpine Associates, A Limited Partnership
	
				
		By:	/s/ Gary Moorman
	
	
	Name:
	Gary Moorman
	
		Title:	Senior Analyst
	
	
	
	
	

	
	Alpine Heritage, L.P.
	

	
	
	
	

	
	By:	/s/ Gary Moorman
	

	
	Name:
	Gary Moorman
	

	
	Title:
	Senior Analyst
	

	
	
	
	

	
	Alpine Heritage, II L.P.
	

	
	
	
	

	
	By:
	/s/ Gary Moorman
	

	
	Name:
	Gary Moorman
	

	
	Title:
	Senior Analyst
	

	
	
	
	

	
	Alpine Heritage Offshore Fund Ltd.
	

	
	
	
	

	
	By:
	/s/ Gary Moorman
	

	
	Name:
	Gary Moorman
	

	
	Title:
	Senior Analyst
	

 
[Signature Page to Financing Agreement Waiver - Key Man Insurance and Term A Agent Fee]
 
	 
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If the foregoing accurately reflects your understanding, kindly so indicate this by signing below and returning a copy to the undersigned as soon as possible.
 
 
		REQUIRED LENDERS:

TOR CAPITAL LLC
	
				
		By:	/s/ John C Rijo
	
	
	Name:
	John C Rijo
	
		Title:	Manager
	
				
	
	By:
	
	

	
	Name:
	
	

	
	Title:
	
	

 
[Signature Page to Financing Agreement Waiver - Key Man Insurance and Term A Agent Fee]
 
	 
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If the foregoing accurately reflects your understanding, kindly so indicate this by signing below and returning a copy to the undersigned as soon as possible.
 
		REQUIRED LENDERS:

ADK SOHO FUND LP
	
				
		By:	/s/ Nathaniel Klipper
	
	
	Name:
	Nathaniel Klipper
	
		Title:	Managing Partner
	

 
[Signature Page to Financing Agreement Waiver - Key Man Insurance and Term A Agent Fee]
 
	 
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If the foregoing accurately reflects your understanding, kindly so indicate this by signing below and returning a copy to the undersigned as soon as possible.
 
		REQUIRED LENDERS:

HARVEST CAPITAL CREDIT CORPORATION
	
				
		By:	/s/ Ryan Magee
	
	
	Name:
	Ryan Magee
	
		Title:	Managing Director
	

 
[Signature Page to Financing Agreement Waiver - Key Man Insurance and Term A Agent Fee]
 
	 
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		TERM A AGENT:

The K2 Principal Fund L.P.
	
				
		By:	/s/ Shawn Kimel
	
	
	Name:
	Shawn Kimel
	
		Title:	Managing Partner
	

 
[Signature Page to Financing Agreement Waiver - Key Man Insurance and Term A Agent Fee]
 
	 
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Acknowledged and agreed to:
 
PEEKAY ACQUISITION, LLC
 
	By:	/s/	
	Name:
		
	Title:
		

 
[Signature Page to Financing Agreement Waiver - Key Man Insurance and Term A Agent Fee]
 
 
	9xcom-ex101_8.htm

Exhibit 10.1

 

Limited Waiver and 

Eighth Amendment to 

Loan Agreement

 

		
	
Borrowers:
	
Xtera Communications, Inc.

	
 
	
Azea Networks, Inc

	
 
	
Neovus, Inc.

	
 
	
Xtera Asia Holdings, LLC

 

Date:September 30, 2016

This Eighth Amendment to Loan Agreement (this “Amendment”) is entered into between Pacific Western Bank (“Lender”) and, jointly and severally, the borrowers named above (collectively referred to herein as “Borrower”).

The parties hereto agree to amend the Loan and Security Agreement between Borrower and Lender (as successor in interest by merger to Square 1 Bank), dated January 16, 2015 (as amended, restated, supplemented, or otherwise modified from time to time, the “Loan Agreement”), and Lender agrees to waive certain Events of Default thereunder, as follows, effective as of the date hereof, unless otherwise indicated below, subject to the terms and conditions set forth below.  Capitalized terms used but not defined in this Amendment shall have the meanings set forth in the Loan Agreement.

1.Limited Waiver.  Borrower acknowledges and agrees that it failed to comply with the Minimum Liquidity Covenant set forth in Section 5 of the Schedule as of September 20, 2016 (the “Specified Default”), and that the Specified Default constitutes an Event of Default. 

Lender hereby waives the Specified Default.  Such waiver does not constitute any of the following: (i) a waiver of Borrower’s obligation to meet the covenant referenced above at any other date; (ii) a waiver of any other term or provision of any of the Loan Documents; or (iii) an agreement to waive in the future the covenant referenced above, or any other term or provision of any of the Loan Documents. 

2.Extension of Maturity Date.  Section 4 of the Schedule, which currently reads as follows:

“4.  MATURITY DATE

	
 
	
(Section 6.1)
	
October 1, 2016.”
	
 

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   Pacific Western BankLimited Waiver and Eighth Amendment to Loan Agreement

 

is hereby amended in its entirety to read:

 

“4.  MATURITY DATE

	
 
	
(Section 6.1)
	
November 1, 2016.”
	
 

 

3.New Lender Indebtedness Constitutes Permitted Indebtedness.  In Section 8 of the Loan Agreement, that portion of the definition of “Permitted Indebtedness” which currently reads:

“(xi)Indebtedness arising on or after September 1, 2016, to a group of Persons (the ‘New Lenders’) in an aggregate principal amount not to exceed $1,500,000 (the ‘New Lender Indebtedness’), provided that prior to Borrower incurring any New Lender Indebtedness, Lender and the New Lenders shall have entered into a Subordination Agreement, acknowledged and agreed to by Borrower, containing terms and conditions acceptable to Lender; and

(xii) extensions, refinancings, modifications, amendments and restatements of any items of Permitted Indebtedness in clauses (ii) through (x) above, provided that the principal amount thereof is not increased and the terms thereof are not modified to impose more burdensome terms upon Borrower, and provided, in the case of Subordinated Debt, that it continues to be Subordinated Debt.”

is hereby amended to read:

“(xi)Indebtedness arising during the month of September 2016, to a group of Persons (the ‘New Lenders’) in an aggregate principal amount equal to $1,200,000 (the ‘September 2016 New Lender Indebtedness’), in connection with which Lender and the September 2016 New Lenders have entered into a Subordination Agreement, acknowledged and agreed to by Borrower (the ‘New Lender Subordination Agreement’); 

(xii)  Indebtedness arising on or after October 1, 2016, to the New Lenders (the ‘October 2016 New Lender Indebtedness’), in an aggregate principal amount not to exceed $500,000 (the ‘October 2016 New Lender Indebtedness Limit’), provided, however, that: (A) prior to Borrower incurring any October 2016 New Lender Indebtedness, Lender and the New Lenders shall have entered into an Amendment to the New Lender Subordination Agreement, acknowledged and agreed to by Borrower, containing terms and conditions acceptable to Lender (the ‘NLSA Amendment’); (B) in the event that, prior to the New Lenders loaning Borrower $200,000 of the October 2016 New Lender Indebtedness Borrower receives proceeds of the Account owed to Borrower by the Defense Information Systems Agency and Padtec S/A (the ‘Designated Accounts’), in the sum of $271,833, then (i) the October 2016 New Lender Indebtedness Limit shall be and become $200,000, and (ii) Borrower shall be entitled to retain such proceeds received; and (C) in the event that, subsequent to the New Lenders loaning Borrower $200,000 of the October 2016 New Lender Indebtedness Borrower receives proceeds of the Designated Accounts, then (i) the October 2016 New Lender Indebtedness Limit shall be and become the amount of the October 2016 New Lender Indebtedness which is outstanding at the time of such receipt, and (ii) Borrower shall be entitled to retain the difference of (x) $500,000, less (y) the 

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   Pacific Western BankLimited Waiver and Eighth Amendment to Loan Agreement

 

amount of the October 2016 New Lender Indebtedness which is outstanding at the time of such receipt; and

(xiii) extensions, refinancings, modifications, amendments and restatements of any items of Permitted Indebtedness in clauses (ii) through (x) above, provided that the principal amount thereof is not increased and the terms thereof are not modified to impose more burdensome terms upon Borrower, and provided, in the case of Subordinated Debt, that it continues to be Subordinated Debt.”

4.Fee.  [Intentionally omitted.]   

5.Representations True.  Borrower represents and warrants to Lender that all representations and warranties set forth in the Loan Agreement, as amended hereby, are true and correct as if made on the date hereof.  

6.No Waiver.  Nothing herein constitutes a waiver of any default or Event of Default under the Loan Agreement or any other Loan Documents, whether or not known to Lender, except as set forth in Section 1.

7.General Release.  In consideration for Lender entering into this Amendment, Borrower hereby irrevocably releases and forever discharges Lender, and its successors, assigns, agents, shareholders, directors, officers, employees, agents, attorneys, parent corporations, subsidiary corporations, affiliated corporations, affiliates, participants, and each of them, from any and all claims, debts, liabilities, demands, obligations, costs, expenses, actions and causes of action, of every nature and description, known and unknown, which Borrower now has or at any time may hold, by reason of any matter, cause or thing occurred, done, omitted or suffered to be done prior to the date of this Amendment (collectively, the “Released Claims”). Borrower hereby irrevocably waives the benefits of any and all statutes and rules of law to the extent the same provide in substance that a general release does not extend to claims which the creditor does not know or suspect to exist in its favor at the time of executing the release.  Borrower represents and warrants that it has not assigned to any other Person any Released Claim, and agrees to indemnify Lender against any and all actions, demands, obligations, causes of action, decrees, awards, claims, liabilities, losses and costs, including but not limited to reasonable attorneys' fees of counsel of Lender’s choice and costs, which Lender may sustain or incur as a result of a breach or purported breach of the foregoing representation and warranty. 

8.General Provisions.  Borrower hereby ratifies and confirms the continuing validity, enforceability and effectiveness of the Loan Agreement and all other Loan Documents. This Amendment, the Loan Agreement, any prior written amendments to the Loan Agreement signed by Lender and Borrower, and all other written documents and agreements between Lender and Borrower, set forth in full all of the representations and agreements of the parties with respect to the subject matter hereof and supersede all prior discussions, representations, agreements and understandings between the parties with respect to the subject hereof.  Except as herein expressly amended, all of the terms and provisions of the Loan Agreement, and all other documents and agreements between Lender and Borrower shall continue in full force and effect and the same are hereby ratified and confirmed.  Without limiting the generality of the foregoing, the provisions of all subsections of Section 9 of the Loan Agreement (titled “General Provisions”), including 

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   Pacific Western BankLimited Waiver and Eighth Amendment to Loan Agreement

 

without limitation all provisions relating to governing law, venue, jurisdiction, dispute resolution, and the waiver of the right to a jury trial, shall apply equally to this Amendment, and the same are incorporated herein by this reference. 

[Signatures on Following Page]

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   Pacific Western BankLimited Waiver and Eighth Amendment to Loan Agreement

 

		
		
	
Borrower:

Xtera Communications, Inc. 

By: /s/ Joseph R. Chinnici

Title: Chief Financial Officer 

 
	
Borrower:

Azea Networks, Inc. 

By: /s/ Joseph R. Chinnici

Title: Chief Financial Officer 

 

	
Borrower:

Neovus, Inc. 

By: /s/ Joseph R. Chinnici

Title: Chief Financial Officer 

 
	
Borrower:

Xtera Asia Holdings, LLC 

By: /s/ Joseph R. Chinnici

Title: Chief Financial Officer 

 

	
Lender:

Pacific Western Bank

By: /s/ Victor DeMarco

Title: SVP

 
	
 

 

[Signature Page – Limited Waiver and Eighth Amendment to Loan Agreement]

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   Pacific Western BankLimited Waiver and Eighth Amendment to Loan Agreement

 

CONSENT

 

The undersigned expressly acknowledges and agrees that: (i) the undersigned’s consent to the foregoing Eighth Amendment to Loan Agreement (the “Eighth Amendment”) is not required, but the undersigned nevertheless does hereby consent to the Eighth Amendment and the NLSA Amendment; (ii) all Indebtedness due and owing from Borrower to the undersigned is subordinated to the October 2016 New Lender Indebtedness upon the same terms and conditions set forth in the Amendment and the New Lender Subordination Agreement, as amended by the NLSA Amendment, with respect to the respective priorities of the Obligations and the October 2016 New Lender Indebtedness; (iii) the subordination by Lender of the Obligations to the October 2016 New Lender Indebtedness as set forth in the Amendment and the New Lender Subordination Agreement, as amended by the NLSA Amendment, does not in any way limit or decrease any recovery by Lender of the Obligations; i.e., the Obligations shall not be reduced by reason of any payments on account of the October 2016 New Lender Indebtedness permitted under the New Lender Subordination Agreement, as amended by the NLSA Amendment.  Capitalized terms used but not defined in this Consent shall have the meanings given to them in the Loan Agreement, as defined in the Amendment.  Nothing herein shall in any way limit any of the terms or provisions of any subordination agreement or other instrument, agreement or document executed by the undersigned in favor of Lender, including without limitation that certain Subordination Agreement dated January 16, 2015, entered into by the undersigned and Square 1 Bank (as predecessor-in-interest by merger to Lender), all of which are hereby ratified and reaffirmed.

HORIZON TECHNOLOGY FINANCE CORPORATION

 

 

	
 
	
 
	
 
	
 

	
 
	
 
	
By:
	
/s/ Robert D. Pomeroy, Jr.

	
 
	
 
	
 
	
Robert D. Pomeroy, Jr.

	
 
	
 
	
 
	
Chief Executive Officer

 

 

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