Document:

METROPOLITAN BANK HOLDING CORP.

    

    

    AND METROPOLITAN COMMERCIAL BANK

    

    

    CHANGE IN CONTROL AGREEMENT

    

    

    

    

    This change in control agreement (the “Agreement”) is made effective as of the 11th day of August, 2020 (the “Effective Date”), by
      and among Metropolitan Bank Holding Corp., a New York corporation with its principal place of business located at 99 Park Avenue, New York, New York 10016 (the “Company”), its wholly-owned subsidiary, Metropolitan Commercial Bank, a commercial bank with its main office also at 99 Park Avenue New York, New York 10016 (the “Bank”), and Greg Sigrist (the “Officer”).

    WHEREAS, the
      Officer is currently employed as Executive Vice President and Chief Financial Officer of the Company and the Bank;

     WHEREAS,
      the Company and Bank wish to assure itself of the Officer’s continued active participation in the business of the Company and Bank; and

    WHEREAS, in
      order to induce the Officer to remain in the employ of the Bank and in consideration of Officer’s agreeing to remain in the employ of the Bank, the parties desire to specify the severance benefits which shall be due the Officer in the event that his
      employment with the Bank is terminated under specified circumstances in the event of and following a Change in Control (as defined below).

    NOW, THEREFORE,
      in consideration of the contribution of the Officer, and upon the other terms and conditions hereinafter provided, the parties hereto agree as follows:

    
      	
              1.

            	
              TERM OF AGREEMENT

            

    

    The term of this Agreement shall be twelve (12) full calendar months from the Effective Date of this Agreement set
      forth above, and shall include any extension or renewal made pursuant to this Section.  Commencing at the end of each day following the Effective Date, the term of the Agreement shall be extended for one additional day each day so that a constant
      term of twelve (12) months shall remain in effect hereunder.

    
      	
              2.

            	
              DEFINITIONS

            

    

    (a) Change in Control.  For purposes of this Agreement, a
        “Change in Control” shall mean the Company or the Bank sells, by way of a merger, consolidation, asset sale or similar transaction, to any one person, or more than one person acting as a group (as determined under Section 409A of the Internal
        Revenue Code of 1986, as amended (the “Code”)) assets of the Company or the Bank that have a total fair market value equal to more than
        fifty-one percent (51%) of the total gross fair market value of all of the assets of the corporation immediately before such disposition or related dispositions, where “gross fair market value” means  the value of the assets of the corporation, or
        the value of the assets being disposed of, determined without regard to any liabilities associated with such assets).

     

      

    
      
        

    

     (b)   Good Reason.  For purposes of this Agreement, Good Reason shall mean a termination by Officer following a Change in
          Control if, without Officer’s express written consent, any of the following occurs:

    (1) failure to appoint or reappoint Officer to the position and title that the Officer maintained immediately prior to a Change in Control;

    (2) a material change in Officer’s authority, duties or responsibilities to become one of lesser authority, duty or responsibilities then the position
        Officer held immediately prior a Change in Control; or

    (3) a material reduction in Officer’s base salary and benefits.

    provided, however, that prior to any termination of employment for Good Reason, Officer must first provide written notice to the Bank (or its successor)
      within sixty (60) days following the initial existence of the condition, describing the existence of such condition, and the Bank shall thereafter have the right to remedy the condition within thirty (30) days of the date the Bank received the
      written notice from Officer.  If the Bank remedies the condition within such thirty (30) day cure period, then no Good Reason shall be deemed to exist with respect to such condition.  If the Bank does not remedy the condition within such thirty (30)
      day cure period, then Officer may deliver a Notice of Termination for Good Reason at any time within sixty (60) days following the expiration of such cure period.

    

    

    (c) Termination for Cause shall mean termination because of, in the good faith determination of the Board:

    

    

    (1) the conviction of the Officer of a felony or of any lesser criminal
        offense involving moral turpitude;

    

    

    (2) the willful commission by the Officer of a criminal or other act that, in the judgment of the Board or the President and Chief Executive Officer will likely cause substantial
        economic damage to the Company, the Bank or any subsidiary or substantial injury to the business reputation of the Company, the Bank or any subsidiary;

    

    

    (3) the commission by the Officer of an act of fraud in the performance of his duties on behalf of the Company, the Bank or any subsidiary;

    

    

    (4) the continuing willful failure of the Officer to perform his duties to the Company, the Bank or any subsidiary (other than any such failure resulting from the Officer’s
        incapacity due to physical or mental illness) after written notice thereof;

    

    

    (5) a material breach by the Officer of the Bank’s Code of Ethics; or

    

    

    (6) an order of a federal or state regulatory agency or a court of competent jurisdiction requiring the termination of the Officer’s employment with the Bank or the Company.

    

    

    
      
        

    

    A determination of whether Officer’s employment shall be terminated for Cause shall be made at a meeting of the Board called and held
      for such purpose, at which the Board makes a finding that in good faith opinion of the Board an event set forth in clauses (1), (2), (3), (4), (5), or (6) above has occurred and specifying the particulars thereof in detail.

    

    

    
      	
              3.

            	
              BENEFITS UPON TERMINATION IN
                  CONNECTION WITH A CHANGE IN CONTROL

            

    

    If Officer’s employment by the Bank, or its successor, is terminated on or after a Change in Control and during the
      term of this Agreement by (1) the Bank, or its successor, for a reason other than Cause, or (2) Officer for Good Reason, then the Bank, or its successor, shall pay the Officer, or in the event of his death (subsequent to a change in control and
      termination of employment), his beneficiary or beneficiaries, or his estate, as applicable, a cash severance amount equal to one times the greater of the Officer’s base salary in effect as of the Date of Termination or the base salary in effect
      immediately prior to the date of a Change in Control, payable by lump sum within ten (10) business days of the Date of Termination.

    In no event shall the aggregate payments to be made or afforded to the Officer under this Agreement (the “Termination Benefits”) constitute an “excess parachute payment” under Section 280G of the Code or any successor thereto, and in order to avoid
      such a result, Termination Benefits will be reduced, if necessary, to an amount (the “Non-Triggering Amount”), the value of which is one dollar ($1.00) less than an amount equal to three (3) times the Officer’s “base amount”, as determined in
      accordance with Section 280G of the Code.  The reduction required among the Termination Benefits provided by this Section 3 shall be applied to the cash severance benefits otherwise payable under this Agreement.

    
      	4.	
              NOTICE OF TERMINATION

            

    

    Any purported termination of Officer’s employment by the Bank or by the Officer shall be communicated by Notice of
      Termination to the other party hereto. For purposes of this Agreement, a “Notice of Termination” shall mean a written notice which shall indicate the date of termination and, in the event of termination by the Officer, the specific termination
      provision in this Agreement relied upon and shall set forth in reasonable detail the facts and circumstances claimed to provide a basis for termination of the Officer’s employment under the provision so indicated.  “Date of Termination” shall mean the date specified in the Notice of Termination (which, in the case of a termination for Cause, shall be immediate).

    
      	
              5.

            	
              SOURCE OF PAYMENTS

            

    

    It is intended by the parties hereto that all payments provided in this Agreement shall be paid in cash or check
      from the general funds of the Bank.  Further, the Company shall guarantee the payment and provision of all amounts and benefits due hereunder to Officer and, if such amounts and benefits due from the Bank are not timely paid or provided by the Bank,
      such amounts and benefits shall be paid or provided by the Company.

    
      
        

    

    
      	
              6.

            	
              ENTIRE AGREEMENT

            

    

    This Agreement contains the entire understanding between the parties hereto and supersedes any prior agreement
      between the Bank and Officer, except that this Agreement shall not affect or operate to reduce any benefit or compensation inuring to Officer of a kind elsewhere provided. No provision of this Agreement shall be interpreted to mean that Officer is
      subject to receiving fewer benefits than those available to Officer without reference to this Agreement.

    
      	
              7.

            	
              NO ATTACHMENT

            

    

    (a) Except as required by law, no right to receive payments under this Agreement shall be subject to anticipation, commutation, alienation, sale, assignment, encumbrance, charge,
        pledge, or hypothecation, or to execution, attachment, levy, or similar process or assignment by operation of law, and any attempt, voluntary or involuntary, to affect any such action shall be null, void, and of no effect.

    (b) This Agreement shall be binding upon, and inure to the benefit of, the Officer, the Bank and the Company and their respective successors and assigns.

    
      	
              8.

            	
              MODIFICATION AND WAIVER

            

    

    (a) This Agreement may not be modified or amended except by an instrument in writing signed by the parties hereto.

    (b) No term or condition of this Agreement shall be deemed to have been waived, nor shall there be any estoppel against the enforcement of any provision of this Agreement, except by
        written instrument of the party charged with such waiver or estoppel. No such written waiver shall be deemed a continuing waiver unless specifically stated therein, and each such waiver shall operate only as to the specific term or condition waived
        and shall not constitute a waiver of such term or condition for the future or as to any act other than that specifically waived.

    
      	
              9.

            	
              POST TERMINATION OBLIGATIONS

            

    

    All payments and benefits to Officer under this Agreement shall be subject to Officer's compliance with this
      Section 9. Officer recognizes and acknowledges that the knowledge of the business activities and plans for business activities of the Bank, the Company and affiliates thereof, as it may exist from time to time, is a valuable, special and unique asset
      of the business of the Bank and the Company.  Officer will not, during or after the term of Officer’s employment, disclose any knowledge of the past, present, planned or considered business activities of the Bank, the Company or affiliates thereof to
      any person, firm, corporation, or other entity for any reason or purpose whatsoever.  Notwithstanding the foregoing, Officer may disclose any knowledge of banking, financial and/or economic principles, concepts or ideas which are not solely and
      exclusively derived from the business plans and activities of the Bank.  Further, Officer may disclose information regarding the business activities of the Bank or the Company to supervisory governmental authorities pursuant to a formal regulatory
      request.  In the event of a breach or threatened breach by Officer of the provisions of this Section, the Bank will be entitled to an injunction restraining Officer from disclosing, in whole or in part, the knowledge of the past, present, planned or
      considered business activities of the Bank or affiliates thereof, or from rendering any services to any person, firm, corporation, other entity to whom such knowledge, in whole or in part, has been disclosed, or is threatened to be disclosed. 
      Nothing herein will be construed as prohibiting the Bank from pursing any other remedies available to the Bank for such breach or threatened breach, including the recovery of damages from Officer.  

    
      
        

    

    
      	
              10.

            	
              REQUIRED PROVISIONS

            

    

    (a) Without limiting the foregoing, all payment to Officer under this Agreement are subject and conditioned upon compliance with Section 18(k) of the
        Federal Deposit Insurance Act, 12 U.S.C. Section 1828(k), and the regulations promulgated thereunder in 12 C.F.R. part 359.

    (b) The Board may terminate Officer’s employment at any time, but any termination by the Board other than Termination for Cause shall not prejudice
        Officer’s right to compensation or other benefits under this Agreement.  Officer shall have no right to receive compensation or other benefits for any period after Termination for Cause.

    (c) This Agreement is intended to comply with the provisions of Section 409A of the Internal Revenue Code of 1986, as amended, and the final regulations
        promulgated thereunder.

    (d) For purposes of this Agreement, any termination of Officer’s employment shall be construed to require a “Separation from Service” in accordance with Code Section 409A and the
        regulations promulgated thereunder, such that the Bank and Officer reasonably anticipate that the level of bona fide services Officer would perform after termination of employment would permanently decrease to a level that is less than 50% of the
        average level of bona fide services performed (whether as an employee or an independent contractor) over the immediately preceding thirty-six (36)-month period.

    

    

    (e) Notwithstanding the foregoing, in the event Officer is a Specified Employee (as defined herein), then, solely, to the extent required to avoid
        penalties under Code Section 409A, Officer’s payments shall be delayed until the first day of the seventh month following Officer’s Separation from Service.  A “Specified Employee” shall be interpreted to comply with Code Section 409A and shall
        mean a key employee within the meaning of Code Section 416(i) (without regard to paragraph 5 thereof)

    
      	
              11.

            	
              SEVERABILITY

            

    

    If, for any reason, any provision of this Agreement, or any part of any provision, is held invalid, such invalidity
      shall not affect any other provision of this Agreement or any part of such provision not held so invalid, and each such other provision and part thereof shall to the full extent consistent with law continue in full force and effect.

    
      	
              12.

            	
              HEADINGS FOR REFERENCE ONLY

            

    

    The headings of sections and paragraphs herein are included solely for convenience of reference and shall not
      control the meaning or interpretation of any of the provisions of this Agreement.

    
      
        

    

    
      	
              13.

            	
              GOVERNING LAW

            

    

    The validity, interpretation, performance, and enforcement of this Agreement shall be governed by the laws of the
      State of New York.

    Any dispute or controversy arising under or in connection with this Agreement shall be settled exclusively by
      binding arbitration, as an alternative to civil litigation and without any trial by jury to resolve such claims, conducted by a single arbitrator, mutually acceptable to the Bank and Officer, sitting in a location selected by the Bank within fifty
      (50) miles from the main office of the Bank, in accordance with the rules of the American Arbitration Association’s National Rules for the Resolution of Employment Disputes then in effect.  Judgment may be entered on the arbitrator’s award in any
      court having jurisdiction.

    
      	
              14.

            	
              PAYMENT OF LEGAL FEES

            

    

    All reasonable legal fees paid or incurred by the Officer pursuant to any dispute or question of interpretation
      relating to this Agreement shall be paid or reimbursed by the Bank if the Officer is successful on the merits pursuant to a legal judgment, arbitration or settlement, provided that such payment shall be made by the Bank not later than two and
      one-half months after the end of the year in which such dispute is resolved in the Officer’s favor.

    
      	
              15.

            	
              SUCCESSOR TO THE BANK AND COMPANY

            

    

    The Bank and the Company shall require any successor or assignee, whether direct or indirect, by purchase, merger,
      consolidation or otherwise, to all or substantially all the business or assets of the Bank and/or the Company, expressly and unconditionally to assume and agree to perform the obligations of the Bank and the Company under this Agreement, in the same
      manner and to the same extent that the Bank and the Company would be required to perform if no such succession or assignment had taken place.

    
      	
              16.

            	
              OBLIGATIONS OF BANK

            

    

    The termination of Officer’s employment, other than following a Change in Control, shall not result in any
      obligation of the Bank or the Company under this Agreement.  This Agreement provides for certain payments and benefits to Officer only in the event that there first occurs a Change in Control.

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    [Signature Page Follows]

    
      
        

    

    IN WITNESS WHEREOF, Metropolitan Commercial Bank, Metropolitan Bank Holding Corp. and the Officer have caused this Agreement to be
      executed as of the Effective Date specified above.

    

    

    
      	
              METROPOLITAN COMMERCIAL BANK

               

               

              
                By: /s/ Mark R. DeFazio 

                  

              

              Name: Mark R. DeFazio

              Title: President and Chief Executive Officer

               

            
	 
	
              METROPOLITAN BANK HOLDING CORP.

               

               

              
                By: /s/ Mark R. DeFazio 

                  

              

              Name: Mark R. DeFazio

              Title: President and Chief Executive Officer

            
	 
	
              OFFICER

               

               /s/ Gregory A. Sigrist 

              

              Gregory A. Sigristssti-ex101_24.htm

Exhibit 10.1

SECOND AMENDMENT TO CREDIT AGREEMENT 

THIS SECOND AMENDMENT TO CREDIT AGREEMENT (the "Amendment"), dated as of August 14, 2020, is made by and between SHOTSPOTTER, INC., a Delaware corporation (the "Borrower") and UMPQUA BANK, an Oregon state-chartered bank (the "Lender").

W I T N E S S E T H:

WHEREAS, the Borrower and the Lender are parties to that certain Credit Agreement dated as of September 27, 2018 (the "Original Credit Agreement"), as amended by that certain First Amendment to Credit Agreement dated as of May 21, 2019 (the Original Loan Agreement, as so amended, the "Credit Agreement"). 

WHEREAS, the Borrower has requested that the Lender make certain modifications to the Credit Agreement as more fully set forth herein, and the Lender is willing to do so upon and subject to the terms and conditions of this Amendment.

NOW, THEREFORE, the parties hereto, in consideration of their mutual covenants and agreements hereinafter set forth and intending to be legally bound hereby, covenant and agree as follows:

1.Recitals.  The Recitals set forth above are true and correct and are incorporated herein.

2.Definitions.  Except as set forth in this Amendment, defined terms used herein shall have the meanings given to them in the Credit Agreement.

3.Amendments to Defined Terms in Section 1.1 [Certain Definitions] of the Credit Agreement.

(a)The definition of "Daily LIBOR Rate" is hereby amended by deleting all references to "zero (0.00)" and replacing them with "one percent (1.00%)".

(b)The definition of "Expiration Date" is hereby amended by deleting the reference to "September 27, 2020" and replacing it with "September 27, 2022."

(c)The definition of "LIBOR Rate" is hereby amended by deleting all references to "zero (0.00)" and replacing them with "one percent (1.00%)".

 

4.Amendment to Remove Annual Loan Fee. Section 2.3 of the Credit Agreement [Loan Fee] is hereby amended by deleting "and on or before each anniversary thereof,". 

5.Amendment to Remove Liquidity Covenants.  

4842-1676-4100

(a)Section 8.2.15 of the Credit Agreement [Minimum Liquidity] is hereby deleted in its entirety and replaced with the following "[Intentionally Omitted]."

(b)Exhibit 8.3.4 to the Credit Agreement is hereby deleted in its entirety and replaced with Exhibit A attached hereto.

6.Amendment to Increase Revolving Credit Commitment.  The references to "$10,000,000" in each of the following are hereby deleted and replaced with "$20,000,000":

(a) The title page of the Credit Agreement;

 

(b)Page 1 of the Credit Agreement; and

 

(c)Schedule 1.1(B) of the Credit Agreement. 

 

7.Amendment to Remove Borrowing Base. 

(a)The definition of Borrowing Base in Section 1.1 [Certain Defined Terms] is hereby deleted in its entirety.

(b)Section 2.1.1 [Revolving Credit Loans] of the Credit Agreement is hereby amended as follows: (i) the references in subsection (i) of the first full sentence to "the lesser of (A)" and "and (B) the Borrowing Base minus outstanding Letter of Credit Obligations" are hereby deleted; and (ii) the references in subsection (ii) of the first full sentence to "the lesser of (A)" and "or (B) the Borrowing Base" are hereby deleted.

(c)Section 2.4 [Termination or Reduction of Revolving Credit Commitments] is hereby amended as follows: (i) the references in the first full sentence to "the lesser of (A)" and "or (B) the Borrowing Base" are hereby deleted; and (ii) the references in the second full sentence to "the lesser of (A)" and "or (B) the Borrowing Base" are hereby deleted.

(d)Section 2.9.1.1 of the Credit Agreement is hereby amended by deleting the references to "the lesser of (A)" and "or (B) the Borrowing Base" in subsection (ii) thereof.

(e)Section 5.4.1 [Borrowing Base Exceeded] of the Credit Agreement is hereby deleted in its entirety and replaced with "[Intentionally Omitted]."

(f)Section 8.3.4.6(ii) [Borrowing Base Certificates] is hereby deleted in its entirety and replaced with "[Intentionally Omitted]."

(g)The reference to "Exhibit 8.3.4.6 – BORROWING BASE CERTIFICATE" is hereby deleted from the List of Schedules and Exhibits, and Exhibit 8.3.4.6 to the Credit Agreement is hereby deleted in its entirety. 

8.Amendment to Address Foreign Subsidiaries.

(a)     Section 8.2.9 is hereby amended by adding "Except with respect to Excluded Subsidiaries," at the beginning of the first sentence.

2

 

 

(c)Schedule 6.1.2 to the Credit Agreement is hereby deleted in its entirety and replaced with Exhibit B attached hereto.     

 

9.Conditions Precedent.  The Borrower and the Lender acknowledge and agree that the waiver and amendments set forth herein shall only be effective upon the occurrence of all the following conditions precedent (which date shall be the “Second Amendment Effective Date”):

(a)Amendment.  The Borrower and the Lender shall have executed and delivered this Amendment.

(b)Amended and Restated Note.  To evidence the increase to the Revolving Credit Commitment set forth above, the Borrower shall have executed and delivered to Lender an Amended and Restated Revolving Credit Note in substantially the same form, mutatis mutandis, as the Note delivered by the Borrower in favor of Lender on the Closing Date.

(c)Miscellaneous.  Such other documents, agreements, instruments, deliverables and items set forth on the closing checklist delivered in connection with this Amendment or as otherwise deemed necessary by the Lender. 

10.Representations, Warranties and Covenants.  The Borrower covenants and agrees with and represents and warrants to the Lender as follows:

(a)the Borrower’s obligations under the Credit Agreement, as modified hereby, are and shall remain secured by the Collateral, pursuant to the terms of the Credit Agreement and the other Loan Documents;

(b)the Borrower possesses all of the powers requisite for it to enter into and carry out the transactions referred to herein and to execute, enter into and perform the terms and conditions of this Amendment, the Credit Agreement and the other Loan Documents and any other documents contemplated herein that are to be performed by the Borrower; any and all actions required or necessary pursuant to the Borrower's organizational documents or otherwise have been taken to authorize the due execution, delivery and performance by the Borrower of the terms and conditions of this Amendment; the officers of the Borrower executing this Amendment are the duly elected, qualified, acting and incumbent officers of the Borrower and hold the titles set forth below their names on the signature lines of this Amendment; and such execution, delivery and performance will not conflict with, constitute a default under or result in a breach of any applicable law or any agreement, instrument, order, writ, judgment, injunction or decree to which the Borrower is a party or by which the Borrower or any of its properties is bound, and that all consents, authorizations and/or approvals required or necessary from any third parties in connection with the entry into, delivery and performance by the Borrower of the terms and conditions of this Amendment, the Credit Agreement, the other Loan Documents and the transactions contemplated hereby have been obtained by the Borrower and are full force and effect;

(c)this Amendment, the Credit Agreement, and the other Loan Documents constitute the valid and legally binding obligations of the Borrower, enforceable against the Borrower in 

3

 

accordance with their respective terms, except as such enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws and by general equitable principles, whether enforcement is sought by proceedings at law or in equity;

(d)all representations and warranties made by the Borrower in the Credit Agreement and the other Loan Documents are true and correct in all material respects (or in the case of any such representation and warranty that is qualified by materiality or reference to Material Adverse Effect, in all respects) as of the date hereof, except to the extent that any such representation and warranty relates to a specific date, in which case such representation and warranty shall be true and correct in all material respects (or in the case of any such representation and warranty that is qualified by materiality or reference to Material Adverse Effect, in all respects) as of such earlier date, with the same force and effect as if all such representations and warranties were fully set forth herein and made as of the date hereof and the Borrower has complied with all covenants and undertakings in the Credit Agreement and the other Loan Documents;

(e)no Event of Default or Default (other than the Existing Event of Default) has occurred and is continuing under the Credit Agreement or the other Loan Documents; there exist no defenses, offsets, counterclaims or other claims with respect to the Borrower's obligations and liabilities under the Credit Agreement or any of the other Loan Documents; and

(f)the Borrower hereby ratifies and confirms in full its duties and obligations under the Credit Agreement and the other Loan Documents applicable to it, each as modified hereby.

11.Incorporation into Credit Agreement and other Loan Documents.  This Amendment shall be incorporated into the Credit Agreement by this reference and each reference to the Credit Agreement that is made in the Credit Agreement or any other document executed or to be executed in connection therewith shall hereafter be construed as a reference to the Credit Agreement as amended hereby.  The term "Loan Documents" as defined in the Credit Agreement shall include this Amendment.

12.Severability.  If any one or more of the provisions contained in this Amendment, the Credit Agreement, or the other Loan Documents shall be held invalid, illegal or unenforceable in any respect, the validity, legality or enforceability of the remaining provisions contained in this Amendment, the Credit Agreement or the other Loan Documents shall not in any way be affected or impaired thereby, and this Amendment shall otherwise remain in full force and effect.

13.Successors and Assigns.  This Amendment shall apply to and be binding upon the Borrower in all respects and shall inure to the benefit of the Lender and its successors and assigns, provided that the Borrower may not assign, transfer or delegate its duties and obligations hereunder.  Nothing expressed or referred to in this Amendment is intended or shall be construed to give any person or entity other than the parties hereto a legal or equitable right, remedy or claim under or with respect to this Amendment, the Credit Agreement or any of the other Loan Documents, it being the intention of the parties hereto that this Amendment and all of its provisions and conditions are for the sole and exclusive benefit of the Borrower and the Lender.

4

 

14.Reimbursement of Expenses.  The Borrower unconditionally agrees to pay and reimburse the Lender and save the Lender harmless against liability for the payment of reasonable out-of-pocket costs, expenses and disbursements, including without limitation, fees and expenses of counsel incurred by the Lender in connection with the development, preparation, execution, administration, interpretation or performance of this Amendment and all other documents or instruments to be delivered in connection herewith.

15.Counterparts.  This Amendment may be executed by different parties hereto in any number of separate counterparts, each of which, when so executed and delivered shall be an original and all such counterparts shall together constitute one and the same instrument.

16.Entire Agreement.  This Amendment sets forth the entire agreement and understanding of the parties with respect to the transactions contemplated hereby and supersedes all prior understandings and agreements, whether written or oral, between the parties hereto relating to the subject matter hereof.  No representation, promise, inducement or statement of intention has been made by any party which is not embodied in this Amendment, and no party shall be bound by or liable for any alleged representation, promise, inducement or statement of intention not set forth herein.

17.Headings.  The various headings of this Amendment are inserted for convenience only and shall not affect the meaning or interpretation of this Amendment or any provisions hereof.

18.Construction.  The rules of construction set forth in Section 1.2 [Construction] of the Credit Agreement shall apply to this Amendment.

19.Governing Law.  This Amendment shall be deemed to be a contract under the laws of the State of California and for all purposes shall be governed by and construed and enforced in accordance with the internal laws of the State of California without regard to its conflict of laws principles.

20.WAIVER OF JURY TRIAL.  EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AMENDMENT, THE CREDIT AGREEMENT OR ANY OTHER LOAN DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY).  EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PERSON HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PERSON WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AMENDMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.

21.Judicial Reference.  In any judicial action or cause of action arising from this Amendment or otherwise, including without limitation contract and tort disputes, all decisions of 

5

 

fact and law shall, at the request of either party, be referred to a referee in accordance with Section 638 et seq. of the California Code of Civil Procedure if the action is before a court of any judicial district of the State of California.  The referee shall prepare written findings of fact and conclusions of law, and judgment upon the referee's award shall be entered in court in which such proceeding was commenced.  No provision or exercise of any right under this provision shall limit the right of the undersigned or Lender or other holder of this Amendment to exercise self-help remedies, such as foreclosure against or sale of any real or personal property collateral or security, or to obtain provisional or ancillary remedies from a court of competent jurisdiction before, during or after the pendency of any judicial reference proceeding.  The exercise of a remedy does not waive the right of either party to resort to judicial reference.  The parties further agree that all disputes, claims and controversies between them shall be brought in their individual capacities and not as a plaintiff or class member in any purported class or representative proceeding.

 

 

 

 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

 

[SIGNATURE PAGES TO FOLLOW]

 

 

 

 

 

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[SIGNATURE PAGE TO second AMENDMENT TO CREDIT AGREEMENT]

IN WITNESS WHEREOF, the parties hereto, by their officers thereunto duly authorized, have executed this Amendment as of the day and year first above written.

		
	
 
	
BORROWER:

 

	
 
	
 

SHOTSPOTTER, INC, a Delaware corporation

 

By:______/s/ Alan R. Stewart_______________

Name: Alan R. Stewart

Its: CFO

 

 

 

 

 

 

 

[SIGNATURE PAGE TO SECOND AMENDMENT TO CREDIT AGREEMENT]

 

		
	
 
	
LENDER:

 

	
 
	
UMPQUA BANK, an Oregon state-chartered bank

 

By: /s/ Jason Antrim

Name:Jason Antrim

Title:Managing Director

 

 

 

 

 

 

 

EXHIBIT A

 

FORM OF 
QUARTERLY COMPLIANCE CERTIFICATE

 

This certificate is delivered pursuant to Section 8.3.3 of that certain Credit Agreement dated September 27, 2018, as amended by that certain First Amendment to Credit Agreement dated May 21, 2019, as amended by that certain Second Amendment to Credit Agreement dated _______ ___, 2020 (collectively, and as the same may be further amended, restated or modified from time-to-time, the "Credit Agreement"), by and among ShotSpotter, Inc., a Delaware corporation (the “Borrower”) and Umpqua Bank, an Oregon state-chartered bank (the “Lender”).  Unless otherwise defined herein, terms defined in the Credit Agreement are used herein with the same meanings.

The undersigned officer, ______________________, the ___________ [President/Chief Executive Officer/Chief Financial Officer/Corporate Controller/Treasurer] of the Borrower, in such capacity does hereby certify on behalf of the Borrower as of the quarter/year ended _________________, 20___ (the "Report Date"), as follows:1

A.Maximum Consolidated Modified Leverage Ratio (Section 8.2.14).  As of the Report Date, the Consolidated Modified Leverage Ratio of the Loan Parties is ___________________, which ratio is not greater than 3.50 to 1.00.  A detailed calculation of the Consolidated Modified Leverage Ratio in a form approved by the Lender is attached hereto as Schedule I.  

B.  [Intentionally Omitted].

C.Minimum Interest Coverage Ratio (Section 8.2.16).  As of the Report Date, the Consolidated Interest Coverage Ratio of the Loan Parties is ___________________, which ratio is not less than 2.00 to 1.00.  A detailed calculation of the Consolidated Interest Charge Ratio in a form approved by the Lender is attached hereto as Schedule III.

D.Minimum Profitability (Section 8.2.17).  So long as Section 8.2.17 remains in full force and effect pursuant to the terms thereof, as of the Report Date, the net profit after taxes of the Loan Parties is _____________ for the trailing four consecutive quarterly period, which amount shall be at least $1.00 (commencing with the fiscal quarter ended December 31, 2019).    As of the Report Date, if applicable, the quarterly net loss after taxes is $______, which amount shall not exceed $500,000.  A detailed calculation of the Minimum Profitability covenant in a form approved by the Lender is attached hereto as Schedule IV.

E.Representations, Warranties and Covenants.  As of the date hereof: (i) all of the representations and warranties of the Loan Parties contained in Section 6 of the Credit Agreement and in the other Loan Documents are true and correct in all material respects, 

	
	 

	
1 
	
 See Credit Agreement for full provisions relating to all financial covenants.

 

 

except for representations and warranties made as of a specified date (which were true and correct in all material respects, except as otherwise qualified, as of such date).

F.Event of Default.  No Event of Default exists as of the date hereof.

 

 

[SIGNATURE PAGE FOLLOWS]

 

 

 

signature page – form of QUARTERLY COMPLIANCE CERTIFICATE

 

IN WITNESS WHEREOF, the undersigned has executed this Certificate this __ day of ____________________, 202_.

 

	
	
BORROWER:

	
SHOTSPOTTER, INC., a Delaware corporation

By:   ____________________________________
Name:  __________________________________
Title:  ___________________________________

 

 

 

 

 

 

EXHIBIT 8.3.3

FORM OF QUARTERLY COMPLIANCE CERTIFICATE – SCHEDULES i - iV

SCHEDULE I – Section 8.2.14 (Maximum Consolidated Modified Leverage Ratio)

				
	
A.
	
CONSOLIDATED FUNDED INDEBTEDNESS

	
 
	
1.
	
Outstanding principal amount of all obligations, whether current or long-term, for borrowed money (including Obligations hereunder excluding those described in clauses (ii), (iii) and (iv) of the definition of “Obligations” hereunder) and all obligations evidenced by bonds, debentures, notes, loan agreements or other similar instruments.
	
$________

	
 
	
2.
	
All purchase money Indebtedness.
	
$________

	
 
	
3.
	
The maximum amount available to be drawn under issued and outstanding letters of credit (including standby and commercial), bankers’ acceptances, bank guaranties, surety bonds and similar instruments.
	
$________

	
 
	
4.
	
All obligations in respect of the deferred purchase price of property or services (other than trade accounts payable in the ordinary course of business).
	
$________

	
 
	
5.
	
All Attributable Indebtedness.
	
$________

	
 
	
6.
	
All obligations to purchase, redeem, retire, defease or otherwise make any payment prior to the Expiration Date in respect of any Equity Interests or any warrant, right or option to acquire such Equity Interest, valued, in the case of a redeemable preferred interest, at the greater of its voluntary or involuntary liquidation preference plus accrued and unpaid dividends.
	
$________

	
 
	
7.
	
Without duplication, all Guarantees with respect to outstanding Indebtedness of the types specified in clauses (1) through (6) above of Persons other than the Borrower or any Subsidiary.
	
$________

	
 
	
8.
	
All Indebtedness of the types referred to in clauses (1) through (7) above of any partnership or joint venture (other than a joint venture that is itself a corporation or limited liability company) in which the Borrower or a Subsidiary is a general partner or joint venturer, unless such Indebtedness is expressly made non-recourse to the Borrower or such Subsidiary.
	
$________

	
 
	
9.
	
Consolidated Funded Indebtedness equals sum of A1 through A8.
	
$________

 

 

				
	
B.
	
CONSOLIDATED EBITDA

	
 
	
1.
	
Consolidated Net Income for the most recently completed 12 trailing months.
	
$________

	
 
	
2.
	
Consolidated Interest Charges for such period.
	
$________

	
 
	
3.
	
Provision for federal, state, local and foreign income taxes payable for such period.
	
$________

	
 
	
4.
	
Depreciation and amortization expenses for such period.
	
$________

	
 
	
5.
	
Non-cash stock compensation expense.
	
$________

	
 
	
6.
	
Non-recurring assets impairment expense in an amount not to exceed $250,000.
	
$________

	
 
	
7.
	
Non-recurring loss on debt extinguishment.
	
$________

	
 
	
8.
	
Non-cash warrant revaluation.
	
$________

	
 
	
9.
	
Fees, costs and expenses payable in connection with any financing activities.
	
$________

	
 
	
10.
	
Fees, costs and expenses relating to any Permitted Acquisition.
	
$________

	
 
	
11.
	
Other non-cash charges and losses (excluding any such non-cash charges or losses to the extent (A) there were cash charges with respect to such charges and losses in past accounting periods or (B) there is a reasonable expectation that there will be cash charges with respect to such charges and losses in future accounting periods less (c) without duplication and to the extent reflected as a gain or otherwise included in the calculation of consolidated net income for such period (i) non-cash gains (excluding any such non-cash gains to the extent (A) there were cash gains with respect to such gains in past accounting periods or (B) there is a reasonable expectation that there will be cash gains with respect to such gains in future accounting periods).
	
$________

	
 
	
12.
	
Consolidated EBITDA equals sum of B1 through B11.2
	
$________

	
C.
	
Section 8.2.1.4 - Maximum Consolidated Modified Leverage Ratio

	
 
	
1.
	
Consolidated Funded Indebtedness (from Item A9 above).
	
$________

	
 
	
2.
	
Any unsecured convertible notes permitted under Section 8.2.1 as of such date.
	
$________

	
 
	
3.
	
Remainder of C1 minus C2.
	
$________

	
 
	
4.
	
Consolidated EBITDA (from Item B12 above).
	
$________

	
 
	
5.
	
Ratio of (8) to (9).
	
___ to 1.00

	
	 

	
2 
	
 See Credit Agreement for historical Consolidated EBITDA amounts to be included for certain computation periods.

 

 

				
	
 
	
6.
	
Maximum Permitted.
	
3.50 to 1.00

 

SCHEDULE II – [Intentionally Omitted]

 

SCHEDULE III – Section 8.2.16 (Minimum Interest Coverage Ratio)

				
	
A.
	
CONSOLIDATED INTEREST CHARGES

	
 
	
1.
	
All interest, premium payments, debt discount, fees, charges and related expenses in connection with borrowed money and Attributable Indebtedness (including capitalized interest) or in connection with the deferred purchase price of assets, in each case to the extent treated as interest in accordance with GAAP.
	
$________

	
 
	
2.
	
All interest paid or payable with respect to discontinued operations.
	
$________

	
 
	
3.
	
The portion of rent expense under Capitalized Leases that is treated as interest in accordance with GAAP, in each case, of or by the Borrower and its Subsidiaries on a consolidated basis for the most recently completed fiscal quarter or fiscal year, as the case may be.
	
$________

	
 
	
4.
	
Consolidated Interest Charges equals sum of A1 through A3.
	
 

	
B.
	
Section 8.2.16 – Minimum Interest Coverage Ratio

	
 
	
1.
	
Consolidated EBITDA (from Item IB12 above).
	
$________

	
 
	
2.
	
Consolidated Interest Charges (from item A4 above).
	
$________

	
 
	
3.
	
Ratio of (1) to (2).
	
____ to 1.00

	
 
	
4.
	
Minimum Allowed.
	
2.00 to 1.00

 

 

 

SCHEDULE IV – Section 8.2.17 (Minimum Profitability) 3

			
	
 

.
	
Net profit after taxes for such trailing four consecutive quarter period commencing with fiscal quarter ended December 31, 2019.                                     
	
$____________

	
 
	
Minimum required
	
$1.00

	
 
	
Commencing with the fiscal quarter ended December 31, 2018, no single quarterly net loss after taxes may exceed $500,000
	
 

	
 
	
If applicable quarterly net loss after taxes
	
$_____________

 

 

 

 

 

 

	
	 

	
3 
	
 This covenant shall no longer be in force or effect after Borrower issues convertible indebtedness permitted under the Credit Agreement in an amount equal to at least $50,000,000 in the aggregate commencing the fiscal quarter of such issuance

 

 

EXHIBIT B

 

SUBSIDIARIES

 

None

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